Document:

exv10w28

 

Exhibit 10.28

HDNET LLC

320 South Walton

Dallas, Texas 75226

February 27, 2008

DiscLive, Inc.

320 South Walton

Dallas, Texas 75226

Attention: Darin Divinia

	 	 	Re: Amending the Sublease, dated as of February 21, 2007, by and between HDNet LLC
(“Sublandlord”) and DiscLive, Inc. (“Subtenant”), covering that certain real property
located at 3030 Taylor Street, Dallas, Texas (the “Property”), (the “Sublease”)

Dear Darin:

This letter is to confirm in writing the agreement between HDNet LLC, as Sublandlord, and DiscLive,
Inc., as Subtenant, amending and revising the above-referenced Sublease. In that regard, the
parties agree that effective as of February 28, 2008, the Sublease is revised as follows:

The expiration of the term of the Sublease, as indicated in Paragraph 2 of the Sublease, is hereby
extended to the earlier of December 31, 2009 or the prior termination of the Prime Lease (as
defined in the Sublease).

Except as otherwise revised by this letter agreement, the terms of the Sublease shall continue in
full force and effect.

If the foregoing accurately reflects our agreed amendment to the Sublease, please evidence your
acceptance of such amendment by signing this letter in the place indicated below and returning it
to the undersigned.

Sincerely,

/s/ Mark Cuban

Mark Cuban

President

Accepted and agreed effective as of the

28th day of February, 2008:

DiscLive, Inc.,

a Delaware corporation

	 	 	 	 	 
	By:

	 	/s/ Darin Divinia
 

Darin Divinia,
	 	 
	 

	 	Presidentexv10w55

 

Exhibit 10.55

SHARE PURCHASE AGREEMENT

November 18, 2007

By and between

- Applied Materials, Inc., a Delaware corporation (the “Purchaser”), with its registered
office at 3050 Bowers Avenue, Santa Clara, CA 95054, here represented by its Senior Vice President
duly authorized by its board of directors

-on one side-

and

the following parties (the “Selling Shareholders”):

- Mr. Gisulfo Baccini, an Italian citizen born in Breda Di Piave (Treviso), Italy, on 1 October
1942, resident in 31030 Carbonera (Treviso), Italy, Via Duca D’Aosta 1; and

- Finanziaria Baccini S.r.l., an Italian company, with its registered office at 31100 Treviso,
Sottoportico Buranelli 27, enrolled with the Register of Companies of Treviso at no. 00398350264,
share capital €100.000,00 fully paid-in, here represented by the legal representative, Mr. Gisulfo
Baccini;

-on the other side-

(The Purchaser and the Selling Shareholders are referred to collectively as the “Parties”
and each of them as a “Party.”)

Certain capitalized terms used in this Agreement are defined in Exhibit A.

WHEREAS

	 	(a)	 	The Selling Shareholders own 600,000 ordinary shares in the share capital of
Baccini S.p.A., an Italian company, with its registered office at 31048 San Biagio di
Callalta (Treviso), Via Postumia Ovest 244, tax code and number of registration with
the Register of Companies of Treviso at no. 00766780266 (the “Company”), having
each a par value of €1 (the “Shares”), fully paid in and subscribed, each in
the respective amount set forth opposite each Selling Shareholder’s name on
Schedule 2.2, which Shares collectively constitute 100% (one hundred per cent)
of the share capital of the Company;
	 
	 	(b)	 	The Purchaser has been granted access to a number of documents related to the
Company and its business; and
	 
	 	(c)	 	The Selling Shareholders wish to sell the Shares to the Purchaser (or to a
direct or indirect subsidiary of the Purchaser as its nominee pursuant to Article 1401
of the Italian Civil Code) on the terms set forth in this Share Purchase Agreement
(this “Agreement”).

 

 

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

	1.	 	Recitals, Exhibits and Schedules

	 	1.1	 	All the above recitals and all the attachments hereto constitute an integral
and substantial part of this Agreement.
	 
	 	1.2	 	The Exhibits to this Agreement are the following:

	 	 	 	 	 
	Exhibit A

	 	—
	 	Certain Definitions
	 
	 	 	 	 
	Exhibit B

	 	—
	 	Non-Competition, Non-Solicitation and Confidentiality Agreements
	 
	 	 	 	 
	Exhibit C

	 	—
	 	Lease-Back Agreement
	 
	 	 	 	 
	Exhibit D

	 	—
	 	Escrow Agreement
	 
	 	 	 	 
	Exhibit E

	 	—
	 	Employment Agreement Term Sheets
	 
	 	 	 	 
	Exhibit F

	 	—
	 	Preliminary Sale and Purchase Agreement

	 	1.3	 	The Schedules to this Agreement are the following:

	 	 	 	 	 
	Schedule 2.2

	 	—
	 	Schedule of Selling Shareholders
	 
	 	 	 	 
	Schedule 2.4(b)(iv )

	 	—
	 	Persons to Execute Non-Competition,
Non-Solicitation and Confidentiality
Agreements
	 
	 	 	 	 
	the Disclosure Schedule

	 	 	 	the Disclosure Schedule
	 
	 	 	 	 
	Schedule 3.9(d)

	 	—
	 	Acquired Patents
	 
	 	 	 	 
	Schedule 7.9

	 	—
	 	Persons to Remain Employed
	 
	 	 	 	 
	Schedule 12.7(c)

	 	—
	 	Dispute Resolution Procedures

	2.	 	Object of this Agreement; Closing

	 	2.1	 	Sale and Purchase of Shares. At the Closing (as defined in Section 2.3), the
Selling Shareholders shall sell, assign, transfer and deliver the Shares to the
Purchaser (or to a direct or indirect subsidiary of the Purchaser as its nominee
pursuant to Article 1401 of the Italian Civil Code), free and clear of any Encumbrance,
and the Purchaser (or such subsidiary as nominee) shall purchase the Shares from the
Selling Shareholders (such sale and purchase of the Shares, the “Share
Purchase”), on the terms and subject to the conditions set forth in this Agreement.
	 
	 	2.2	 	Purchase Price. The aggregate purchase price payable by the Purchaser (or by a
direct or indirect subsidiary of the Purchaser as its nominee pursuant to Article 1401
of the Italian Civil Code) for the Shares (the “Purchase Price”) shall be
€200.400.000,00. The Purchase Price shall be paid as follows:

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	 	(a)	 	At the Closing, the Purchaser shall cause to be paid to each
Selling Shareholder its pro rata percentage, as set forth opposite such Selling
Shareholder’s name on Schedule 2.2, of the amount by which: (i)
€168.400.000,00; exceeds (ii) the Acquired Company Transaction Expenses
(including those Acquired Company Transaction Expenses reflected in the
acknowledgments contemplated by clause “(A)” of Section 2.4(b)(ix)), all in
accordance with the payment instructions set forth opposite such Selling
Shareholder’s name on Schedule 2.2.
	 
	 	(b)	 	€5.000.000,00 of the Purchase Price shall be paid to the
Selling Shareholders (allocated based on such Selling Shareholder’s pro rata
percentage as set forth opposite such Selling Shareholder’s name on
Schedule 2.2), by wire transfer of immediately available funds in
accordance with the payment instructions set forth opposite such Selling
Shareholder’s name on Schedule 2.2, on the first anniversary of the
Closing Date if (and only if) all of the key employees identified on
Schedule 7.9 remain employed by the Company or one of its subsidiaries
on such anniversary (it being understood that if one or more of such persons
shall die (or as a consequence of illness or accident become physically unable
to perform the activity contemplated by the relevant Employment Agreement) or
is terminated by the Acquired Companies without “right cause” or “justified
reason” (giusta causa or giustificato motivo) prior to the first anniversary of
the Closing Date, such person shall be excluded from the requirement contained
in the preceding portion of this sentence); provided, however, if, prior to the
first anniversary of the Closing Date, either: (i) the employment of all of the
key employees identified on Schedule 7.9 has been terminated by the
Acquired Companies without “right cause” or “justified reason” (giusta causa or
giustificato motivo); or (ii) all of such key employees shall die (or as a
consequence of illness or accident become physically unable to perform the
activity contemplated by the relevant Employment Agreement), then the payment
contemplated by this Section 2.2(b) shall be made promptly after such
termination, death or supervened inability as described above (for the
avoidance of doubt, and without prejudice to the foregoing, it is understood
that no Selling Shareholder shall be entitled to the amount described in this
Section 2.2(b), or to any portion thereof, if the employment of any of the key
employees identified on Schedule 7.9 is terminated with “right cause”
or “justified reason” (giusta causa or giustificato motivo) or if any such key
employee voluntarily resigns from her or his employment (for a reason other
than supervened inability as described above), in each case before the first
anniversary of the Closing Date).
	 
	 	(c)	 	€5.000.000,00 of the Purchase Price shall be paid to the
Selling Shareholders (allocated based on such Selling Shareholder’s pro rata
percentage as set forth opposite such Selling Shareholder’s name on
Schedule 2.2), by wire transfer of immediately available funds in
accordance with the payment instructions set forth opposite such Selling
Shareholder’s name on Schedule 2.2, on the second anniversary of the
Closing Date if (and only if) all of the key employees identified on
Schedule 7.9 remain employed by the Company or one of its subsidiaries
on such anniversary (it being understood that if one or more of such persons
shall die (or as a consequence of illness or accident become physically unable
to perform the activity contemplated by the relevant Employment Agreement) or
is terminated by the Acquired Companies without “right cause” or “justified
reason” (giusta causa or giustificato motivo) prior to the second anniversary
of the Closing Date, such person shall be excluded from the requirement
contained in the preceding portion of this sentence); provided,

3

 

	 	 	 	however, if, prior to the second anniversary of the Closing Date, either: (i)
the employment of all of the key employees identified on Schedule 7.9
has been terminated by the Acquired Companies without “right cause” or
“justified reason” (giusta causa or giustificato motivo); or (ii) all of such
key employees shall die (or as a consequence of illness or accident become
physically unable to perform the activity contemplated by the relevant
Employment Agreement), then the payment contemplated by this Section 2.2(c)
shall be made promptly after such termination, death or supervened inability
as described above (for the avoidance of doubt, and without prejudice to the
foregoing, it is understood that no Selling Shareholder shall be entitled to
the amount described in this Section 2.2(c), or to any portion thereof, if
the employment of any of the key employees identified on Schedule 7.9
is terminated with “right cause” or “justified reason” (giusta causa or
giustificato motivo) or if any such key employee voluntarily resigns from her
or his employment (for a reason other than supervened inability as described
above), in each case before the second anniversary of the Closing Date).
	 
	 	(d)	 	If the Selling Shareholders receive any amount pursuant to
Section 2.2(b) or 2.2(c), the Purchaser shall also cause to be paid to the
Selling Shareholders interest on such amount at the Specified Rate (as defined
below) from the Closing Date until the day immediately preceding the date of
payment, subject to any tax withholding obligations that the Selling
Shareholders and the Purchaser determine are required by any applicable Legal
Requirement. The “Specified Rate” shall mean: (1) the average Euro
LIBOR three month rate for the period from the Closing Date though the day
immediately preceding the date of payment, with such average rate being
determined from the applicable Bloomberg page (or its successor) on the day
immediately preceding the date of payment, plus (2) 100 basis points.
	 
	 	(e)	 	€22.000.000,00 of the Purchase Price (the “Escrow
Amount”) shall be paid at the Closing to an escrow account designated by
the Escrow Agent. The Escrow Amount shall be maintained in an escrow account
for the purposes of satisfying claims brought pursuant to Section 10 for the
period of time and in accordance with the terms set forth in this Agreement and
the Escrow Agreement (the “Escrow Account”). When (and if) all or any
portion of the Escrow Amount is released from escrow to the Selling
Shareholders pursuant to the terms of this Agreement and the Escrow Agreement,
each Selling Shareholder shall be entitled to receive such Selling
Shareholder’s pro rata percentage of such released amount as set forth opposite
such Selling Shareholder’s name on Schedule 2.2, to be paid in
accordance with the payment instructions set forth opposite such Selling
Shareholder’s name on Schedule 2.2.

	 	2.3	 	Closing. The closing of the Share Purchase (the “Closing”) shall take
place at the offices of Lovells Studio Legale in Milan, Italy at 10:00 a.m. (local
time) on a date to be designated by the Purchaser and communicated to the Selling
Shareholders with five days prior notice (or such shorter prior notice as the Selling
Shareholders may agree), which shall be no later than the fifth business day after the
satisfaction or waiver of the last to be satisfied or waived of the conditions set
forth in Sections 7 and 8 (other than those conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or waiver of such conditions)
or at such other time and date as the Purchaser and the Selling Shareholders may
jointly designate. The date on which the Closing actually takes place is referred to
in this Agreement as the “Closing Date.”

4

 

	 	2.4	 	Closing Actions and Deliveries by the Selling Shareholders. In addition to any
other action to be taken and to any other instrument to be executed and/or delivered at
the Closing pursuant to this Agreement, at the Closing, the Selling Shareholders shall:

	 	(a)	 	hold a valid totalitarian shareholders meeting of each of the
Acquired Companies at which the following are unanimously approved: (i) new
bylaws in the form indicated by the Purchaser; (ii) the election of a new board
of directors, as indicated by the Purchaser; and (iii) the appointment of new
board of statutory auditors, as indicated by the Purchaser; and

	 	(b)	 	cause to be delivered to the Purchaser the following agreements
and documents, each of which shall be in full force and effect:

	 	(i)	 	the certificates representing the Shares, duly
endorsed and notarized as required by Italian law in order to transfer
to the Purchaser (or to a direct or indirect subsidiary of the Purchaser
as its nominee pursuant to Article 1401 of the Italian Civil Code) valid
and marketable title to such Shares and to properly register the
Purchaser (or a direct or indirect subsidiary of the Purchaser as its
nominee pursuant to Article 1401 of the Italian Civil Code) in the
shareholders’ ledger of the Company;

	 	(ii)	 	the “fissato bollato” executed by the Selling
Shareholders;

	 	(iii)	 	the Escrow Agreement, duly executed by the
Selling Shareholders;

	 	(iv)	 	Non-Competition, Non-Solicitation and
Confidentiality Agreements, substantially in the form of Exhibit
B (the “Non-Competition, Non-Solicitation and Confidentiality
Agreements”), duly executed by the Persons identified on
Schedule 2.4(b)(iv);

	 	(v)	 	a certificate, duly executed by each Selling
Shareholder, pursuant to which such Selling Shareholder certifies and
represents to the Purchaser that the conditions set forth in Sections
7.1, 7.2, 7.4, 7.5, 7.6 and 7.9 have been duly satisfied (the
“Closing Certificate”);

	 	(vi)	 	a certificate, duly executed by each Selling
Shareholder (the “Acquisition Consideration Certificate”),
pursuant to which such Selling Shareholder certifies and represents to
the Purchaser as to the following information: (A) the aggregate amount
of Acquired Company Transaction Expenses paid prior to (or payable
after) the Closing; (B) the consideration that each Selling Shareholder
is entitled to receive pursuant to Section 2.2(a); and (C) the cash
amount to be contributed to the Escrow Account with respect to such
Selling Shareholder pursuant to Section 2.2(e);

	 	(vii)	 	documentation, reasonably satisfactory to the
Purchaser, in support of the calculation of the amounts set forth in the
Acquisition Consideration Certificates;

	 	(viii)	 	written resignations of all directors and members of the Board of
Auditors of the Acquired Companies, effective as at the Closing;

	 	(ix)	 	written acknowledgments pursuant to which the
Acquired Companies’ outside legal counsel and any financial advisor,
accountant or other

5

 

	 	 	 	Person who performed services for or on behalf of the Acquired
Companies, or who is otherwise entitled to any compensation from the
Acquired Companies, in connection with the Transactional Agreements,
any of the Contemplated Transactions or otherwise, acknowledges: (A)
the total amount of fees, costs and expenses of any nature that have
been paid (or that will become payable) to such Person by any of the
Acquired Companies in connection with the Transactional Agreements,
any of the Contemplated Transactions and otherwise; and (B) that,
except for the amount, if any, identified in such acknowledgment as
that which is “to become payable,” it has been paid in full and is
not (and will not be) owed any other amount by any of the Acquired
Companies with respect to the Transactional Agreements, any of the
Contemplated Transactions and otherwise;
	 
	 	(x)	 	a lease agreement (the “Lease-Back
Agreement”) substantially in the form of Exhibit C, duly
executed by the Company and Finanziaria Baccini S.r.l.;
	 
	 	(xi)	 	the Real Property Transfer Agreement (as defined
below), duly executed by the Company and the other parties thereto; and
	 
	 	(xii)	 	the Employment Agreements (the “Employment
Agreements”) to be mutually agreed to by the Company and each of the
employees identified in Schedule 7.9 based on the term sheet
attached as Exhibit E, duly executed by each such Person.

	 	2.5	 	Closing Actions and Deliveries by the Purchaser. In addition to any other
action to be taken and to any other instrument to be executed and/or delivered at the
Closing pursuant to this Agreement, at the Closing, the Purchaser shall:

	 	(a)	 	deliver to the Selling Shareholders the following agreements
and documents, each of which shall be in full force and effect:

	 	(i)	 	the Escrow Agreement, duly executed by the
Purchaser;

	 	(ii)	 	a certificate, duly executed by the Purchaser,
pursuant to which the Purchaser certifies and represents to the Selling
Shareholders that the conditions set forth in Sections 8.1 and 8.2 have
been satisfied;

	 	(iii)	 	the “fissato bollato”, duly executed by the
Purchaser, in respect of the purchase and sale of the Shares; and

	 	(iv)	 	the Employment Agreements to be mutually agreed
to by the Company and each of the employees identified in Schedule
7.9 based on the term sheet attached as Exhibit E, duly
executed by the Company; and

	 	(b)	 	cause to be paid: (i) to the appropriate tax authority the
stamp duty relating to the transfer of the Shares at Closing (including
“fissato bollato”), provided that the endorsement of the Shares is performed
before a financial intermediary (it being understood that in no event shall the
Purchaser be responsible for stamp duty of more than 0.05% of the consideration
with respect to such Shares) and (ii) the fees and costs due to the Notary
Public for all the activities to be performed at Closing.

6

 

	3.	 	Representations and Warranties of the Selling Shareholders

The Selling Shareholders represent and warrant to and for the benefit of the Indemnitees that,
except as set forth in the applicable part of the disclosure schedule prepared in accordance with
Section 12.15 and delivered to the Purchaser on the date of this Agreement (the “Disclosure
Schedule”):

	 	3.1	 	Due Organization; Subsidiary; Etc.

	 	(a)	 	Each of the Acquired Companies has been duly organized, and is
validly existing and in good standing (to the extent that the laws of the
jurisdiction of its formation recognize the concept of good standing), under
the laws of the jurisdiction of its formation. Each of the Acquired Companies
has full power and authority: (i) to conduct its business in the manner in
which its business is currently being conducted; (ii) to own and use its assets
in the manner in which its assets are currently owned and used; and (iii) to
perform its obligations under all Contracts to which it is a party or by which
it is bound.

	 	(b)	 	Each of the Acquired Companies is qualified, licensed or
admitted to do business, and is in good standing (to the extent that the
applicable jurisdiction recognizes the concept of good standing), under the
laws of the jurisdiction in which it is incorporated and in all other
jurisdictions where the property owned, leased or operated by it or the nature
of its business requires such qualification, license or admission.

	 	(c)	 	Part 3.1(c) of the Disclosure Schedule accurately sets forth:
(i) the names of the members of the board of directors (or similar body) and
statutory auditors of each of the Acquired Companies; and (ii) the names and
titles of the officers of each of the Acquired Companies. No Acquired Company
has established any committees of the board of directors (or similar body) of
such Acquired Company.

	 	(d)	 	Except for the equity interests identified in Part 3.1(d) of
the Disclosure Schedule (and except for securities held for cash management and
similar short-term investment purposes), none of the Acquired Companies has
ever owned, beneficially or otherwise, any shares or other securities of, or
any direct or indirect equity interest in, any Entity. None of the Acquired
Companies has agreed or is obligated to make any future investment in or
capital contribution to any Entity. None of the Acquired Companies has
guaranteed or is responsible or liable for any obligation of any Entity.

	 	3.2	 	Charter Documents; Records. The Company has delivered to the Purchaser (and/or
granted the Purchaser access in the Company’s online or physical data room) accurate
and complete copies of: (a) the articles of associations, bylaws and memorandum of
association or equivalent governing documents, including all amendments thereto, of
each of the Acquired Companies (the “Charter Documents”); and (b) the minutes
and other records of the meetings and other proceedings (including any actions taken by
written consent or otherwise without a meeting) of the shareholders (or members) and
the board of directors (or other similar body) of each of the Acquired Companies. The
books of account, stock records, minute books and other records of each of the Acquired
Companies are accurate, up-to-date and complete in all material respects.

7

 

	 	3.3	 	Capitalization.

	 	(a)	 	The authorized share capital of the Company consists of 600,000
ordinary shares each with a par value of €1, of which 600,000 ordinary shares
have been issued and are outstanding as at the date of this Agreement. Except
as set forth in Part 3.3(a) of the Disclosure Schedule, the Company has not
declared or paid any dividends on any shares of the Company’s share capital
since April 1999 and until the date of this Agreement. All of the Shares have
been duly authorized and validly issued, and are fully paid and nonassessable,
and none of the Shares is subject to any repurchase option, forfeiture
provision or restriction on transfer.

	 	(b)	 	The Selling Shareholders together own, of record and
beneficially, 100% of the share capital of the Company. There is no and as at
the Closing will be no: (i) outstanding subscription, option, call, convertible
note, warrant or right (whether or not currently exercisable) to acquire any
share capital of the Company or other securities of the Company; (ii)
outstanding security, instrument or obligation that is or may become
convertible into or exchangeable for any shares of the Company’s share capital
(or cash based on the value of such shares, including pursuant to any share
appreciation rights) or other securities of the Company; (iii) Contract under
which the Company is or may become obligated to sell or otherwise issue any
shares of the Company’s share capital or any other securities; or (iv)
condition or circumstance that may give rise to or provide a basis for the
assertion of a claim by any Person to the effect that such Person is entitled
to acquire or receive any shares of the Company’s share capital or other
securities of the Company.

	 	(c)	 	All of the Shares have been issued and granted in compliance
with: (i) all applicable Legal Requirements; and (ii) all requirements set
forth in all applicable Contracts. None of the Shares were issued in violation
of any preemptive rights or other rights to subscribe for or purchase
securities of the Company.

	 	(d)	 	Except as set forth in Part 3.3(d) of the Disclosure Schedule,
as at the date of this Agreement, all of the issued and outstanding shares of
capital stock of the Subsidiary are owned, of record and beneficially, by the
Company free and clear of any Encumbrance, and as at the Closing, all of the
issued and outstanding shares of capital stock of the Subsidiary will be owned,
of record and beneficially, by the Company free and clear of any Encumbrance.
The outstanding shares of the Subsidiary have been duly authorized and validly
issued and are fully paid and nonassessable, have been issued in compliance
with all applicable securities laws and other applicable Legal Requirements and
were not issued in violation of or subject to any preemptive rights or other
rights to subscribe for or purchase securities of the Subsidiary. There are no
options, warrants or other rights outstanding to subscribe for or purchase any shares or other securities of the Subsidiary and the Subsidiary is not subject
to any Contract or order, writ, injunction, judgment or decree under which the
Subsidiary is or may become obligated to sell or otherwise issue any shares or
other securities. There are no preemptive rights applicable to any shares of
the Subsidiary.

	 	3.4	 	Financial Statements and Related Information.

	 	(a)	 	The Company has delivered to the Purchaser the following
financial statements (collectively, the “Acquired Company Financial
Statements”): (i) the unaudited

8

 

	 	 	 	balance sheet (in Italian, stato patrimoniale) of the Company and the
Subsidiary as at December 31, 2005, and the related unaudited statement of
income (in Italian, conto profitti e perdite) of the Company and the
Subsidiary for the year ended December 31, 2005, in each case and the notes
thereto (in Italian, nota integrativa); (ii) the unaudited balance sheet of
the Company and the Subsidiary as at December 31, 2006, and the related
unaudited statement of income of the Company and the Subsidiary for the year
ended December 31, 2006, in each case and the notes thereto; and (iii) the
audited balance sheet of the Company as at June 30, 2007 (the “Most
Recent Balance Sheet”) and the related audited statement of income of the
Company for the six-month period ended June 30, 2007, in each case and the
notes thereto.
	 
	 	(b)	 	The Acquired Company Financial Statements present fairly the
financial position of the Acquired Companies as at the respective dates thereof
and the results of operations of the Acquired Companies for the periods covered
thereby.
	 
	 	(c)	 	The books, records and accounts of the Acquired Companies
accurately and fairly reflect, in reasonable detail, the transactions in and
dispositions of the assets of the Acquired Companies.
	 
	 	(d)	 	Part 3.4(d) of the Disclosure Schedule provides an accurate and
complete breakdown of all amounts (including loans, advances or other
indebtedness) owed to any of the Acquired Companies by a director, officer (in
Italian, dirigente), employee (whether regular or temporary, direct hire or
leased), consultant or shareholder of any of the Acquired Companies as at the
date of this Agreement (the “Related Party Receivables”). All Related
Party Receivables (including those receivables reflected on the Most Recent
Balance Sheet that have not yet been collected and those receivables that have
arisen since June 30, 2007 and have not yet been collected): (i) represent
valid obligations arising from bona fide transactions entered into in the
ordinary course of business; and (ii) are current and will be collected in full
when due, without any counterclaim or set off.
	 
	 	(e)	 	Part 3.4(e) of the Disclosure Schedule provides the following
information with respect to each account maintained by or for the benefit of
any of the Acquired Companies at any bank or other financial institution: (i)
the name of the bank or other financial institution at which such account is
maintained; (ii) the account number; (iii) the type of account; and (iv) the
names of all Persons who are authorized to sign checks or other documents with
respect to such account.
	 
	 	(f)	 	As at the date of this Agreement, there are Acquired Company
Contracts with customers of the Acquired Companies that, if performed in
accordance with their terms, would result in revenue in excess of
€212.739.516,18 from the sale of products of the Acquired Companies to be
shipped on or after the date hereof (it being understood that the
representation in this sentence is not, and shall not be construed as, a
guarantee that such Acquired Company Contracts will, in fact, result in such
revenue). Each Acquired Company Contract contemplated by the first sentence of
this Section 3.4(f) (including the customer’s name, the amount of potential
revenue thereunder, the cancellation rights of such customer and the penalties,
if any, for late delivery) is identified in Part 3.4(f)(i) of the Disclosure
Schedule. Except as set forth in Part 3.4(f)(ii) of the Disclosure Schedule,
none of the Selling Shareholders and none of the Acquired Companies has
received any notice or other communication (in writing or otherwise) indicating
that any

9

 

	 		 	customer of any of the Acquired Companies or any other Person who is a party
to any of the Acquired Company Contracts referred to in the first sentence of
this Section 3.4(f) (such customers and other Persons being referred to as
the “Specified Customers”) intends to cancel, delay or otherwise
modify any orders from any of the Acquired Companies under any Acquired
Company Contracts or reduce the amount of business expected to be completed
under any Acquired Company Contract (it being understood that: (i) it shall
not be a breach of the representation contained in this sentence if, after
the date of this Agreement, the Selling Shareholders or the Acquired
Companies receive notices or other communications (in writing or otherwise)
indicating that Specified Customers intend to cancel orders from the Acquired
Companies under any such Acquired Company Contract as long as: (A) no Selling
Shareholder and no Acquired Company had Knowledge of an intended cancellation
prior to the date of this Agreement that was not disclosed in Part 3.4(f) of
the Disclosure Schedule; and (B) such notices or other communications of
cancellation are for orders under Acquired Company Contracts totaling no more
than €10.636.975,81 in the aggregate; and (ii) it shall be a breach of the
representation contained in this sentence to the extent that the Selling
Shareholders or the Acquired Companies receive notices or other
communications (in writing or otherwise) indicating that Specified Customers
intend to cancel orders from the Acquired Companies under Acquired Company
Contracts if such notices or other communications of cancellation are for
orders exceeding €10.636.975,81 in the aggregate, with the Selling
Shareholders being liable for Damages relating to such excess, subject to the
limitations set forth in Section 10.3). To the Knowledge of the Selling
Shareholders, except as set forth in Part 3.4(f)(iii) of the Disclosure
Schedule, the Acquired Companies do not currently expect to be late in
delivering any Acquired Company Offering contemplated by the Acquired Company
Contracts referred to in the first sentence of this Section 3.4(f) (it being
understood that with respect to any expected late deliveries disclosed in
Part 3.4(f)(iii) of the Disclosure Schedule, the Selling Shareholders shall
include disclosure of the contract delivery date and the approximate date on
which the product is currently expected to be delivered).

	 	3.5	 	Absence of Undisclosed Liabilities.

	 	(a)	 	None of the Acquired Companies has any accrued, contingent or
other Liabilities of any nature, either matured or unmatured (whether or not
required to be reflected in financial statements in accordance with Italian
GAAP, and whether due or to become due), except for: (i) Liabilities identified
as such in the “liabilities” column of the Most Recent Balance Sheet and in the
“liabilities” column of the balance sheet of the Subsidiary as at December 31,
2006; (ii) accounts payable or accrued salaries, retributions, severance
indemnities (so called “TFR”) and social contribution that have been incurred
by the Company since June 30, 2007 and by the Subsidiary since December 31,
2006, in each case in the ordinary course of business and consistent with
applicable Legal Requirements and with the Acquired Companies’ past practices;
(iii) Liabilities under any written Acquired Company Contracts entered into in
the ordinary course of business consistent with the Acquired Companies’ past
practices (taking into account the recent increase in the business of the
Acquired Companies) to the extent that such Liabilities are expressly set forth
in and identifiable by reference to the text of such Acquired Company
Contracts; (iv) Liabilities under any oral Acquired Company Contracts that are
entered into in the ordinary course of

10

 

	 	 	 	business consistent with the Acquired Companies’ past practices (taking into
account the recent increase in the business of the Acquired Companies); and
(v) the Liabilities identified in Part 3.5(a) of the Disclosure Schedule.
	 
	 	(b)	 	Except as set forth in Part 3.5(b) of the Disclosure Schedule,
none of the Acquired Companies is a party to or is involved in any Off-Balance
Sheet Arrangements. None of the Acquired Companies has any outstanding
guaranty with regard to any debt or other obligation of any other Person.

	 	3.6	 	Absence of Changes. Except as set forth in Part 3.6 of the Disclosure
Schedule, since June 30, 2007 with regard to the Company and since December 31, 2006
with regard to the Subsidiary:

	 	(a)	 	except as set forth in Part 3.10(a)(xv) of the Disclosure
Schedule, each of the Acquired Companies has conducted its business in the
ordinary course;

	 	(b)	 	there has not been any Material Adverse Effect, and no event
has occurred and no circumstances exist, that, in combination with any other
events or circumstances, will (or would reasonably be expected to) have a
Material Adverse Effect;

	 	(c)	 	there has not been any material loss, damage or destruction to,
or any material interruption in the use of, any of the Acquired Companies’
material assets (whether or not covered by insurance);

	 	(d)	 	except as set forth in Part 3.3(a) of the Disclosure Schedule,
none of the Acquired Companies has declared, accrued, set aside or paid any
dividend or made any other distribution in respect of any shares of their
respective capital stock or other securities, and none of the Acquired
Companies has repurchased, redeemed or otherwise reacquired any of their
respective shares of capital stock or other securities;

	 	(e)	 	none of the Acquired Companies has made any capital expenditure
(in Italian, acquisto di beni strumentali) which, when added to all other
capital expenditures made on behalf of such respective Acquired Company,
exceeds €250.000,00;

	 	(f)	 	none of the Acquired Companies has amended or prematurely
terminated, or waived any material right or remedy under, any Contract that is
or would constitute a Material Contract (as defined in Section 3.10(a));

	 	(g)	 	none of the Acquired Companies has: (i) acquired, leased or
licensed any right or other asset from any other Person: (ii) sold or otherwise
disposed of, or leased or licensed, any right or other asset to any other
Person; or (iii) waived or relinquished any right, except for immaterial rights
or other immaterial assets acquired, leased, licensed or disposed of in the
ordinary course of business and consistent with past practices of the Acquired
Companies;

	 	(h)	 	none of the Acquired Companies has written off as
uncollectible, or established any extraordinary reserve with respect to, any
account receivable or other indebtedness in excess of €50.000,00 with respect
to a single matter, or in excess of €150.000,00 in the aggregate;

	 	(i)	 	none of the Acquired Companies has made any pledge of any of
its assets or otherwise permitted any of its assets to become subject to any
Encumbrance

11

 

	 	 	 	(other than nonexclusive licenses granted pursuant to the Contracts listed in
Part 3.6(i) of the Disclosure Schedule), except for pledges of immaterial
assets made in the ordinary course of business and consistent with such
Acquired Company’s past practices;
	 
	 	(j)	 	none of the Acquired Companies has: (i) lent money to any
Person (other than pursuant to routine and reasonable travel advances made to
current employees of the Acquired Companies in the ordinary course of
business); or (ii) incurred or guaranteed any indebtedness for borrowed money;

	 	(k)	 	none of the Acquired Companies has: (i) established, adopted or
amended any Plan (as defined in Section 3.14(b)); (ii) made any bonus,
profit-sharing or similar payment to, or increased the amount of wages, salary,
commissions, fringe benefits or other compensation (including equity-based
compensation, whether payable in cash or otherwise) or remuneration payable to,
any of its directors, officers, employees (whether regular or temporary, direct
hire or leased), contractors or consultants; or (iii) other than with respect
to non-officer employees and in the ordinary course of business and consistent
with past practices, hired any new employee;

	 	(l)	 	none of the Acquired Companies has changed any of its methods
of accounting or accounting practices in any respect;

	 	(m)	 	none of the Acquired Companies has made any Tax election;

	 	(n)	 	none of the Acquired Companies has commenced or settled any
Legal Proceeding; and

	 	(o)	 	none of the Acquired Companies has agreed or legally committed
to take any of the actions referred to in clauses “(d)” through “(n)” above.

	 	3.7	 	Title to Assets.

	 	(a)	 	Each of the Acquired Companies owns, and has good and valid
title to, all assets purported to be owned by it, including all Currently Owned
Real Property. All of such assets are owned by the Acquired Companies free and
clear of any liens or other Encumbrances, except for: (A) any lien for current
Taxes not yet due and payable; and (B) minor liens that have arisen in the
ordinary course of business and that do not (in any case or in the aggregate)
materially detract from the value of the assets subject thereto or materially
impair the operations of any of the Acquired Companies (reference is made to
the easements (in Italian, servitù) indicated in Part 3.7(a) of the Disclosure
Schedule).

	 	(b)	 	Part 3.7(b) of the Disclosure Schedule identifies all assets
that are material to the business of any of the Acquired Companies and that are
being leased to any of the Acquired Companies. The Disclosure Schedule
identifies all the assets that are material to any of the Acquired Companies
and are not owned by, or leased to, an Acquired Company. No Selling
Shareholder, and if a Selling Shareholder is an Entity, no Person who holds a
direct or indirect interest in such Selling Shareholder, owns or has possession
of any right to any asset that was used, is being used or is useful in
connection with the business or the operations of any of the Acquired
Companies.

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	 	3.8	 	Equipment; Real Property.

	 	(a)	 	Part 3.8(a) of the Disclosure Schedule provides a list as at
the date of this Agreement of all material items of equipment, fixtures and
other tangible assets owned by or leased to any of the Acquired Companies, and
states thereon whether such item is owned or leased. The assets identified in
Part 3.8(a) of the Disclosure Schedule are reasonably adequate for the uses to
which they are being put, are in good condition and repair (ordinary wear and
tear excepted) and are adequate for the conduct of each of the Acquired
Companies’ respective businesses in the manner in which such businesses are
currently being conducted.

	 	(b)	 	Prior to the Closing, the Company will enter into a preliminary
sale and purchase agreement in the form attached hereto as Exhibit F
and a final sale and purchase agreement in accordance therewith (collectively,
the “Real Property Transfer Agreement”) pursuant to which all of the
Company’s interests in the real property listed in Part 3.8(b) of the
Disclosure Schedule (the “Transferred Real Property”) will be validly
transferred to the parties identified in Part 3.8(b) of the Disclosure Schedule
as at the Closing (the “Real Property Transfer”).

	 	(c)	 	Part 3.8(c) of the Disclosure Schedule lists all real property
and all interests in any real property (other than the leasehold interests
identified in Part 3.8(d) of the Disclosure Schedule) owned as at the date of
this Agreement by any Acquired Company. (All real property identified or
required to be identified in Part 3.8(c) of the Disclosure Schedule as owned as
at the date of this Agreement (including the Transferred Real Property),
including all buildings, structures, fixtures and other improvements thereon,
are referred to as the “Currently Owned Real Property.”)

	 	(d)	 	Part 3.8(d) of the Disclosure Schedule lists all Contracts
pursuant to which any of the Acquired Companies leases or otherwise occupies or
uses any real property. (All real property identified or required to be
identified in Part 3.8(d) of the Disclosure Schedule, including all buildings,
structures, fixtures and other improvements thereon, are referred to as the
“Leased Real Property.”)

	 	(e)	 	Except as set forth in Part 3.8(e) of the Disclosure Schedule,
the use and operation of the Leased Real Property and Currently Owned Real
Property by the Acquired Companies, as well as the use and operation of real
property, including all buildings, structures, fixtures and other improvements
thereon, which has been owned by the Acquired Companies in the past and is no
longer owned (the “Previously Owned Real Property”), is (and, since
January 1, 2003, has been) authorized by, and is (and, since January 1, 2003,
has been) in full compliance with, all applicable zoning, land use, building,
fire, health, labor, safety and environmental laws and other Legal
Requirements. There is no Legal Proceeding pending, or to the Knowledge of the
Selling Shareholders threatened, that challenges or adversely affects, or would
challenge or adversely affect, the continuation of the present use or operation
of any Leased Real Property or the Currently Owned Real Property. To the
Knowledge of the Selling Shareholders, there is no existing plan or study by
any Governmental Body or by any other Person that challenges or otherwise
adversely affects the continuation of the present use or operation of any
Leased Real Property or the Currently Owned Real Property. There are no
subleases, licenses, occupancy agreements or other contractual obligations that
grant the right of use or occupancy of any of the

13

 

	 	 	 	Leased Real Property or the Currently Owned Real Property to any Person other
than the Acquired Companies, and there is no Person in possession of any of
the Leased Real Property or the Currently Owned Real Property other than the
Acquired Companies.
	 
	 	(f)	 	Except as set forth in Part 3.8(f) of the Disclosure Schedule,
each of the Currently Owned Real Property and the Leased Real Property were
built in compliance with: (i) the applicable administrative and town planning
laws and regulations; (ii) the applicable town planning and construction rules;
(iii) the building authorizations issued by the municipality in which it is
located; and (iv) all other applicable Legal Requirements; and no changes to it
or to its intended use have ever been made without the prior authorization of
the competent authority, pursuant to the applicable Legal Requirements, as well
as the applicable town planning and construction rules. The Currently Owned
Real Property and Leased Real Property have obtained the fitness for use
certificate (“certificato di agibilità”) and, after the issuance/obtainment of
the same, no changes have been made which would have required the issuance of a
new fitness for use certificate.

	 	(g)	 	No specific plan (such as, but not limited to, lot plans or
“piani di lottizzazione”) which may have an impact on the Currently Owned Real
Property is currently in the course of being approved by any competent public
authority.

	 	(h)	 	In relation to the Currently Owned Real Property, all the
urbanization burdens due to the municipality in which it is located by virtue
of: (i) any specific plan (such as, but not limited to, lot plans); (ii) any
unilateral deed (“atti unilaterali d’obbligo”); or (iii) any building
authorization, have been duly fulfilled. Moreover, all the Taxes on the
Currently Owned Real Property and the Previously Owned Real Property have been
duly fulfilled, except from Taxes not yet payable.

	 	3.9	 	Intellectual Property.

	 	(a)	 	Part 3.9(a) of the Disclosure Schedule accurately identifies:

	 	(i)	 	in Part 3.9(a)(i) of the Disclosure Schedule: (A)
each item of Registered IP in which any of the Acquired Companies has or
purports to have an ownership interest of any nature (whether
exclusively, jointly with another Person or otherwise); (B) the
jurisdiction in which such item of Registered IP has been registered or
filed and the applicable registration or serial number; and (C) any
other Person that has an ownership interest in such item of Registered
IP and the nature of such ownership interest;

	 	(ii)	 	in Part 3.9(a)(ii) of the Disclosure Schedule:
(A) all Intellectual Property Rights or Intellectual Property licensed
to any of the Acquired Companies (other than any generally available
third-party commercial software); and (B) the corresponding Contract or
Contracts pursuant to which such Intellectual Property Rights or
Intellectual Property is licensed to any such Acquired Company;

	 	(iii)	 	in Part 3.9(a)(iii) of the Disclosure Schedule,
each Contract pursuant to which any Person has been granted any license
under, or otherwise has

14

 

	 	 	 	received or acquired any right (whether or not currently exercisable)
or interest in, any Acquired Company IP; and
	 
	 	(iv)	 	in Part 3.9(a)(iv) of the Disclosure Schedule,
all royalties, sales commissions or similar payments that any of the
Acquired Companies is, will be or could be required to pay upon the use
of any Acquired Company IP and the Contract pursuant to which such
royalties, sales commissions or similar payments are to (or could) be
paid.

	 	(b)	 	The Acquired Companies exclusively own all right, title and
interest to and in the Acquired Company IP (other than Intellectual Property
Rights or Intellectual Property exclusively licensed to any of the Acquired
Companies, as identified in Part 3.9(a)(ii) of the Disclosure Schedule) free
and clear of any Encumbrances (other than nonexclusive licenses granted
pursuant to the Contracts listed in Part 3.9(a)(ii) of the Disclosure
Schedule). Without limiting the generality of the foregoing:

	 	(i)	 	except as set forth in Part 3.9(b)(i) of the
Disclosure Schedule, all Acquired Company Offerings were developed
solely by employees of the Acquired Companies and are owned exclusively
by the Acquired Companies;
	 
	 	(ii)	 	except as set forth in Part 3.9(b)(ii) of the
Disclosure Schedule, no funding, facilities or personnel of any
Governmental Body or public or private college, university or other
educational institution were used to develop or create, in whole or in
part, any Acquired Company IP;
	 
	 	(iii)	 	the Acquired Companies have taken all reasonable
steps to maintain the confidentiality of and otherwise protect and
enforce its rights in all proprietary information held by the Acquired
Companies, or purported to be held by the Acquired Companies, as a trade
secret;
	 
	 	(iv)	 	none of the Acquired Companies is or has ever
been a member or promoter of, or a contributor to, any industry
standards body or similar organization that could require or obligate
such Acquired Company to grant or offer to any other Person any license
or right to any Acquired Company IP; and
	 
	 	(v)	 	except for the licenses and rights granted in
Contracts identified or referred to in Part 3.9(a)(ii) and 3.9(a)(iii)
of the Disclosure Schedule, none of the Acquired Companies is bound by,
and no Acquired Company IP is subject to, any Contract containing any
covenant or other provision that in any way limits or restricts the
ability of any of the Acquired Companies to exploit, assert, or enforce
any Acquired Company IP anywhere in the world.

	 	(c)	 	Except as set forth in Part 3.9(c) of the Disclosure Schedule,
all Acquired Company IP is valid, subsisting and enforceable. Without limiting
the generality of the foregoing:

15

 

	 	(i)	 	none of the Acquired Companies nor any of the
Selling Shareholders has engaged in any fraud or inequitable conduct,
patent misuse or copyright misuse;
	 
	 	(ii)	 	no trademark (whether registered or unregistered)
or trade name owned, used or applied for by any of the Acquired
Companies conflicts or interferes with any trademark (whether registered
or unregistered) or trade name owned, used or applied for by any other
Person;
	 
	 	(iii)	 	each item of Acquired Company IP that is
Registered IP is and at all times has been in compliance with all Legal
Requirements, and all filings, payments and other actions required to be
made or taken to maintain such item of Acquired Company IP in full force
and effect have been made by the applicable deadline; and
	 
	 	(iv)	 	no interference, opposition, reissue,
reexamination or other Legal Proceeding of any nature is or has been
pending or, to the Knowledge of the Selling Shareholders, threatened, in
which the scope, validity or enforceability of any Acquired Company IP
is being, has been or could reasonably be expected to be contested or
challenged.

	 	(d)	 	Except for those license rights expressly granted to the
Company pursuant to: (i) that certain Grant of License on Industrial Property
Rights dated Dec. 13, 2005 by and between Mr. Gisulfo Baccini and the Company;
and (ii) that certain terminated Patent License Agreement, dated Jul. 12, 1999
by and between Mr. Gisulfo Baccini and the Company, no rights or licenses under
the Acquired Patents or other Assigned IP Rights (or covenants not to assert or
enforce the Acquired Patents or other Assigned IP Rights) have ever been
granted to, or made for the benefit of, any Person.

	 	(e)	 	Except as set forth in Part 3.9(e) of the Disclosure Schedule,
to the Knowledge of the Selling Shareholders, no Person has infringed,
misappropriated, or otherwise violated, and no Person is currently infringing,
misappropriating or otherwise violating, any Acquired Company IP. No letter or
other written or electronic communication or correspondence has been sent or
otherwise delivered by or to any of the Acquired Companies or any
Representative of any of the Acquired Companies regarding any actual, alleged
or suspected infringement or misappropriation of any Acquired Company IP.

	 	(f)	 	Except as set forth in Part 3.9(f) of the Disclosure Schedule,
none of the Acquired Companies has ever infringed (directly, contributorily, by
inducement or otherwise), misappropriated or otherwise violated any
Intellectual Property Right of any other Person. Without limiting the
generality of the foregoing:

	 	(i)	 	no Acquired Company Offering and no Acquired
Company IP has ever infringed, misappropriated or otherwise violated any
Intellectual Property Right of any other Person;

	 	(ii)	 	no infringement, misappropriation or similar
claim or Legal Proceeding is pending or, to the Knowledge of the Selling
Shareholders, has been threatened against any of the Acquired Companies
or against any other Person who may be entitled to be indemnified,
defended, held harmless

16

 

	 		 	or reimbursed by any of the Acquired Companies with respect to such
claim or Legal Proceeding; and
	 
	 	(iii)	 	none of the Acquired Companies has received any
notice or other communication (in writing or otherwise) relating to any
actual, alleged or suspected infringement, misappropriation or violation
of any Intellectual Property Right of another Person.

	 	(g)	 	The representations and warranties contained in the IP Transfer
Agreement (as defined below) are accurate.

	 	3.10	 	Contracts.

	 	(a)	 	Part 3.10(a) of the Disclosure Schedule accurately identifies:

	 	(i)	 	each Acquired Company Contract relating to the
employment of, or the performance of services by any director, officer,
employee (whether regular or temporary, direct hire or leased),
contractor or consultant; any Acquired Company Contract pursuant to
which any of the Acquired Companies is or may become obligated to make
any severance, termination or similar payment to any current or former
director, officer, employee (whether regular or temporary, direct hire
or leased), contractor or consultant; and any Acquired Company Contract
pursuant to which any of the Acquired Companies is or may become
obligated to make any bonus or similar payment (other than payment in
respect of salary) to any current or former director, officer, employee
(whether regular or temporary, direct hire or leased), contractor or
consultant;
	 
	 	(ii)	 	each Acquired Company Contract which provides for
indemnification of any officer, director or employee;
	 
	 	(iii)	 	each Acquired Company Contract relating to the
merger, consolidation, reorganization or any similar transaction with
respect to any of the Acquired Companies;
	 
	 	(iv)	 	each Acquired Company Contract relating to the
acquisition, transfer, development or sharing of any Intellectual
Property or Intellectual Property Right (including any joint development
agreement, technical collaboration agreement or similar agreement
entered into by any of the Acquired Companies with any customer or other
Person);
	 
	 	(v)	 	each Acquired Company Contract relating to the
acquisition, sale, spin-off or outsourcing of the Subsidiary or any
business unit or operation of any of the Acquired Companies;
	 
	 	(vi)	 	each Acquired Company Contract creating or
relating to any partnership or joint venture or any sharing of revenues,
profits, losses, costs or liabilities;
	 
	 	(vii)	 	each Acquired Company Contract imposing any
restriction on the right or ability of any of the Acquired Companies:
(A) to compete with any other Person; (B) to acquire any product or
other asset or any services from any other Person, to sell any product
or other asset to or perform any services

17

 

	 	 	 	for any other Person, or to transact business or deal in any other
manner with any other Person; or (C) to develop or distribute any
technology;
	 
	 	(viii)	 	each Acquired Company Contract creating or involving any agency
relationship, distribution arrangement or other reseller relationship
(including any Contract in which another Person is appointed or
authorized to act or serve as a sales representative for any of the
Acquired Companies);
	 
	 	(ix)	 	each Acquired Company Contract involving any
loan, guaranty, pledge, performance or completion bond or indemnity or
surety arrangement;
	 
	 	(x)	 	each Acquired Company Contract with a sole source
supplier or pursuant to which: (A) any Person provides to any of the
Acquired Companies equipment, materials or services that are necessary
or important for the sale, performance, manufacturing, or support of any
Acquired Company Offering; or (B) any Acquired Company is obligated to
purchase all, or any specific portion or percentage of, its requirements
for, or any minimum amount of, any product, good or service;
	 
	 	(xi)	 	each Acquired Company Contract with any Related
Party;
	 
	 	(xii)	 	each Acquired Company Contract to which any
Governmental Body is a party or under which any Governmental Body has
any rights or obligations;
	 
	 	(xiii)	 	any other Acquired Company Contract that contemplates or involves the
payment or delivery after the date of this Agreement of cash or other
consideration: (A) by any Acquired Company in an amount or having a
value in excess of €100.000,00 in the aggregate; and (B) to any Acquired
Company in an amount or having a value in excess of €1.000.000,00 in the
aggregate;
	 
	 	(xiv)	 	each Acquired Company Contract relating to
Leased Real Property or the Currently Owned Real Property; and
	 
	 	(xv)	 	any other Acquired Company Contract that was
entered into outside the ordinary course of business or was inconsistent
with the past practices of any of the Acquired Companies.

(Contracts in the respective categories described in clauses “(i)” through
“(xv)” above, all Contracts identified, or required to be identified, in Part
3.10(a) of the Disclosure Schedule and all Acquired Company Contracts
referred to in Section 3.4(f) are referred to in this Agreement as
“Material Contracts.”)

Without limiting the foregoing, except as set forth in Part 3.10(a) of the
Disclosure Schedule: (a) no Related Party has, and no Related Party has at
any time had, any direct or indirect interest in any material asset used in
or otherwise relating to the business of any of the Acquired Companies; (b)
no Related Party is indebted to any of the Acquired Companies; and (c) since
January 1, 2005, no Related Party has entered into, or has had any direct or
indirect financial interest in, any transaction or business dealing involving
any of the Acquired Companies.

18

 

	 	(b)	 	The Company has delivered to the Purchaser (and/or granted the
Purchaser access in the Company’s online or physical data room) accurate and
complete copies of all written Material Contracts identified in Part 3.10(a) of
the Disclosure Schedule, including all amendments thereto. Part 3.10(a) of the
Disclosure Schedule provides an accurate and complete description of the
material terms of each Material Contract that is not in written form. Each
Contract identified in Part 3.10(a) of the Disclosure Schedule is valid and in
full force and effect, and, to the Knowledge of the Selling Shareholders, is
enforceable by the respective Acquired Company in accordance with its terms,
subject to: (i) laws of general application relating to bankruptcy, insolvency
and the relief of debtors; and (ii) rules of law governing specific
performance, injunctive relief and other equitable remedies (it being
understood that: (A) it shall not be a breach of the representation contained
in this sentence if, after the date of this Agreement, the Selling Shareholders
or the Acquired Companies receive notices or other communications (in writing
or otherwise) indicating that Specified Customers intend to cancel orders from
the Acquired Companies under any such Acquired Company Contract as long as: (1)
no Selling Shareholder and no Acquired Company had Knowledge of an intended
cancellation prior to the date of this Agreement that was not disclosed in Part
3.4(f) of the Disclosure Schedule; and (2) such notices or other communications
of cancellation are for orders under Acquired Company Contracts totaling no
more than €10.636.975,81 in the aggregate; and (B) it shall be a breach of the
representation contained in this sentence to the extent that the Selling
Shareholders or the Acquired Companies receive notices or other communications
(in writing or otherwise) indicating that Specified Customers intend to cancel
orders from the Acquired Companies under Acquired Company Contracts if such
notices or other communications of cancellation are for orders exceeding
€10.636.975,81 in the aggregate, with the Selling Shareholders being liable for
Damages relating to such excess, subject to the limitations set forth in
Section 10.3).

	 	(c)	 	Except as set forth in Part 3.10(c) of the Disclosure Schedule:
(i) none of the Acquired Companies has violated or breached, or committed any
default under, any Acquired Company Contract, which remains uncured, and, to
the Knowledge of the Selling Shareholders, no other Person has violated or
breached, or committed any default under, any Acquired Company Contract which
remains uncured; (ii) to the Knowledge of the Selling Shareholders, no event
has occurred, and no circumstance or condition exists, that (with or without
notice or lapse of time) will, or could reasonably be expected to: (A) result
in a violation or breach of any of the provisions of any Material Contract; (B)
give any Person the right to declare a default or exercise any remedy under any
Material Contract; (C) give any Person the right to accelerate the maturity or
performance of any Material Contract; or (D) give any Person the right to
cancel, terminate or modify any Material Contract; (iii) none of the Acquired
Companies has received any notice or other communication regarding any actual
or possible violation or breach of, or default under, any Acquired Company
Contract; and (iv) none of the Acquired Companies has waived any of its
respective material rights under any Material Contract (it being understood
that: (A) it shall not be a breach of the representation contained in this
sentence if, after the date of this Agreement, the Selling Shareholders or the
Acquired Companies receive notices or other communications (in writing or
otherwise) indicating that Specified Customers intend to cancel orders from the
Acquired Companies under any such Acquired Company Contract as long as: (1) no
Selling Shareholder and no Acquired

19

 

	 	 	 	Company had Knowledge of an intended cancellation prior to the date of this
Agreement that was not disclosed in Part 3.4(f) of the Disclosure Schedule;
and (2) such notices or other communications of cancellation are for orders
under Acquired Company Contracts totaling no more than €10.636.975,81 in the
aggregate; and (B) it shall be a breach of the representation contained in
this sentence to the extent that the Selling Shareholders or the Acquired
Companies receive notices or other communications (in writing or otherwise)
indicating that Specified Customers intend to cancel orders from the Acquired
Companies under Acquired Company Contracts if such notices or other
communications of cancellation are for orders exceeding €10.636.975,81 in the
aggregate, with the Selling Shareholders being liable for Damages relating to
such excess, subject to the limitations set forth in Section 10.3).
	 
	 	(d)	 	Except as set forth in Part 3.10(d) of the Disclosure Schedule,
no Person has a contractual right pursuant to the terms of any Acquired Company
Contract to renegotiate any amount paid or payable to the respective Acquired
Company under any Material Contract or any other material term or provision of
any Material Contract.

	 	3.11	 	Compliance with Legal Requirements; Industry Standards. Except as set forth in
Part 3.11 of the Disclosure Schedule, each of the Acquired Companies is, and since
January 1, 2003 each of the Acquired Companies has been, in compliance in all material
respects with each Legal Requirement that is applicable to it or to the conduct of its
business or the ownership of its assets. No event has occurred, and no condition or
circumstance exists, that will (with or without notice or lapse of time) constitute or
result in a violation in any material respect by the any of the Acquired Companies of,
or a failure on the part of any of the Acquired Companies to comply in any material
respect with, any Legal Requirement. None of the Acquired Companies has received any
notice or other communication from any Government Body regarding any actual or possible
violation of, or failure to comply with, any Legal Requirement. Without limiting the
generality of the foregoing, each of the products of the Acquired Companies: (i)
complies (and since January 1, 2003 has complied) in all material respects with all
applicable laws relating to product safety and other applicable Legal Requirements; and
(ii) has been certified by all appropriate Governmental Bodies if so required by any
Legal Requirement.
	 
	 	3.12	 	Governmental Authorizations.

	 	(a)	 	Part 3.12(a) of the Disclosure Schedule identifies each
Governmental Authorization (including those granted under applicable
Environmental Laws) held by the Acquired Companies. The Company has delivered
to the Purchaser (and/or granted the Purchaser access in the Company’s online
or physical data room) accurate and complete copies of all Governmental
Authorizations identified in Part 3.12(a) of the Disclosure Schedule. The
Governmental Authorizations identified in Part 3.12(a) of the Disclosure
Schedule are valid and in full force and effect, and collectively constitute
all Governmental Authorizations necessary to enable the respective Acquired
Company to conduct its business in the manner in which its business is
currently being conducted. Each of the Acquired Companies is, and since
January 1, 2003 has been, in compliance in all material respects with the terms
and requirements of the respective Governmental Authorizations identified in
Part 3.12(a) of the Disclosure Schedule. No Acquired Company has received any
notice or other communication from any Governmental Body regarding: (i) any
actual or

20

 

	 	 	 	possible violation of or failure to comply with any term or requirement of
any Governmental Authorization; or (ii) any actual or possible revocation,
withdrawal, suspension, cancellation, termination or modification of any
Governmental Authorization.
	 
	 	(b)	 	Except as set forth in Part 3.12(b) of the Disclosure Schedule,
none of the Acquired Companies possesses (or since January 1, 2003 has
possessed) or has any rights or interests with respect to (or since January 1,
2003 has had any rights or interests with respect to) any grants, incentives or
subsidies from any Governmental Body.

	 	3.13	 	Tax Matters.

	 	(a)	 	Except as set forth in Part 3.13(a) of the Disclosure Schedule,
all Tax Returns required to be filed by or on behalf of the Acquired Companies
with any Governmental Body with respect to any taxable period ending on or
before the Closing Date (the “Acquired Company Returns”): (i) have been
or will be filed on or before the applicable due date (including any extensions
of such due date); and (ii) have been, or will be when filed, accurately and
completely prepared in compliance with all applicable Legal Requirements. All
Taxes that are due and payable on or before the Closing Date have been or will
be timely paid on or before the Closing Date, including advance payments, and
any Taxes accrued but not paid are accurately reflected in the books and
records of the Company. The Company has delivered (and/or granted the
Purchaser access in the Company’s online or physical data room) to the
Purchaser accurate and complete copies of all Acquired Company Returns filed by
or on behalf of the Acquired Companies. All Taxes required to be withheld by
the Acquired Companies have been properly and timely withheld and remitted.

	 	(b)	 	Except as set forth in Part 3.13(b) of the Disclosure Schedule,
no Acquired Company Return relating to Taxes has ever been examined or audited
by any Governmental Body, with the exception of those whereof a copy of the tax
inspectors’ report has been duly delivered to the Purchaser (and/or granted the
Purchaser access in the Company’s online or physical data room) (including PVCs
not yet resulting in a Notice of Assessment). No extension of the ordinary
limitation period for any of the Acquired Company Returns is applicable, and
all the Acquired Companies correctly applied for the last tax amnesty and paid
the related Liabilities.

	 	(c)	 	There are no unsatisfied liabilities for Taxes (including
liabilities for interest, additions to tax and penalties thereon and related
expenses) with respect to any notice of deficiency or similar document received
by any of the Acquired Companies with respect to any Tax (other than
liabilities for Taxes asserted under any such notice of deficiency or similar
document which are being contested in good faith by the respective Acquired
Companies and with respect to which adequate reserves for payment have been
established). There are no liens for Taxes upon any of the assets of each of
the Acquired Companies except liens for current Taxes not yet due and payable.

	 	(d)	 	There are no Tax exemptions, Tax holidays or other Tax
reduction agreements or arrangements applicable to any of the Acquired
Companies. Each of the Acquired Companies is in compliance with all terms and
conditions of any Tax

21

 

	 	 	 	exemptions, Tax holiday or other Tax reduction agreement or order, writ,
injunction, judgment or decree of a territorial or foreign Governmental Body,
and the consummation of the Share Purchase or any other transaction
contemplated by this Agreement will not have any adverse effect on the
continued validity and effectiveness of any such Tax exemptions, Tax holiday
or other Tax reduction agreement or order, writ, injunction, judgment or
decree.
	 
	 	(e)	 	Except as set forth in Part 3.13(e) of the Disclosure Schedule,
none of the Acquired Companies is, or has been, a party to or bound by any tax
consolidation or indemnity agreement, tax-sharing agreement, tax allocation
agreement or similar Contract, or subject to any secondary Tax liability.
	 
	 	(f)	 	The Acquired Companies have established all transfer prices in
compliance with all applicable Legal Requirements.

	 	3.14	 	Employee and Labor Matters; Benefit Plans.

	 	(a)	 	Part 3.14(a) of the Disclosure Schedule contains a list of all
current Acquired Company Employees who are directors or are listed in the
Acquired Companies’ payroll as at the date of this Agreement, and correctly
reflects: (i) their dates of employment; (ii) their positions; (iii) their
salaries; (iv) any other compensation payable to them (including housing
allowances, compensation payable pursuant to bonus, deferred compensation or
commission arrangements or other compensation); and (v) any promises made to
them with respect to changes or additions to their compensation or benefits.
Except as set forth in Part 3.14(a) of the Disclosure Schedule, except for
collective bargaining agreements and similar arrangements applicable to the
Acquired Companies under applicable Italian Legal Requirements, none of the
Acquired Companies is, and none of the Acquired Companies has been, bound by or
a party to, or has a duty to bargain for, any collective bargaining agreement
or other Contract with a labor organization representing any Acquired Company
Employees and, except as set forth in Part 3.14(a) of the Disclosure Schedule,
the Acquired Company Employees are not registered with any labor organization.
Since December 31, 2004, none of the Acquired Companies has had any strike,
slowdown, work stoppage, lockout, job action or threat thereof, or question
concerning representation, by or with respect to any of the Acquired Company
Employees. Except as set forth in Part 3.14(a) of the Disclosure Schedule,
there is no current Acquired Company Employee who is not fully available to
perform work because of disability or other leave.

	 	(b)	 	Part 3.14(b) of the Disclosure Schedule identifies each
employment, salary, bonus, consulting, compensation, deferred compensation,
incentive compensation, stock purchase, equity, severance pay, termination pay,
hospitalization, medical, insurance, supplemental unemployment benefits,
profit-sharing, pension, retirement, welfare, fringe benefit or other employee
benefits plan, program or agreement, whether written or unwritten and whether
funded or unfunded (individually referred to as a “Plan” and
collectively referred to as the “Plans”) which is or has been
sponsored, maintained, contributed to or required to be contributed to by any
of the Acquired Companies or with respect to which any of the Acquired
Companies may have any Liability.

22

 

	 	(c)	 	With respect to each Plan, the Company has delivered to the
Purchaser (and/or granted the Purchaser access in the Company’s online or
physical data room): (i) an accurate and complete copy of such Plan (including
all amendments thereto); (ii) accurate and complete copies of all Contracts
relating to such Plan, including service provider agreements, insurance
contracts, minimum premium contracts, stop-loss agreements, investment
management agreements, subscription and participation agreements and
recordkeeping agreements; and (iii) all correspondence to or from any
Governmental Body relating to any Plan, other than routine correspondence that
will not result in Liability to any Acquired Company.

	 	(d)	 	Each of the Plans has been operated and administered in all
material respects in accordance with applicable Legal Requirements.

	 	(e)	 	Except as provided by applicable law and the National
Collective Bargaining Agreements, neither the execution, delivery or
performance of this Agreement, nor the consummation of the Share Purchase or
any other transaction contemplated by this Agreement, will or may (either alone
or upon the occurrence of any additional or subsequent events) result in any
payment (whether of severance pay or otherwise and whether or not under any
Plan), acceleration, forgiveness of indebtedness, vesting, distribution,
increase in benefits or obligation to fund benefits.

	 	(f)	 	As of the date of this Agreement: (i) each of the Acquired
Companies has good labor relations; and (ii) except as set forth in Part
3.14(f) of the Disclosure Schedule, none of the Selling Shareholders has any
Knowledge of any facts indicating that: (A) the consummation of any of the
Contemplated Transactions will have a material adverse effect on the labor
relations of any of the Acquired Companies; or (B) any of the officers,
employees (whether regular or temporary, direct hire or leased), contractors or
consultants of any of the Acquired Companies intends to terminate his or her
employment or services with the Acquired Companies.

	 	3.15	 	Environmental Matters.

	 	(a)	 	Except as set forth in Part 3.15 of the Disclosure Schedule,
the Leased Real Property, Previously Owned Real Property and Currently Owned
Real Property and each other parcel of property that is (or that has been)
owned by, leased to, occupied by, controlled by or used by any of the Acquired
Companies, including any related plants and installations and all surface
water, groundwater, soil and air associated with or adjacent to such property:
(a) comply with all Environmental Laws and have all necessary Governmental
Authorizations required to carry of the business of the Acquired Companies as
it is being and has been conducted; (b) is free of any Materials of
Environmental Concern; and (c) is free of any environmental contamination or
environmental damage of any nature. Except as set forth in Part 3.15(a) of the
Disclosure Schedule, none of the Leased Real Property, Previously Owned Real
Property or Currently Owned Real Property contains or contained: (i) any
underground storage tanks, asbestos, equipment using PCBs or underground
injection wells; (ii) any asbestos or equipment using PCBs; or (iii) any septic
tanks in which process wastewater or any Materials of Environmental Concern
have been Released. Except as set forth in Part 3.15(a) of the Disclosure
Schedule, no Acquired Company has ever Released any

23

 

	 	 	 	Materials of Environmental Concern except in compliance with all applicable
Environmental Laws.
	 
	 	(b)	 	Except as set forth in Part 3.15(b) of the Disclosure Schedule,
none of the Acquired Companies, nor, to the Knowledge of the Selling
Shareholders, any current or prior owner of any property used, leased or
controlled by any of the Acquired Companies, has received any notice or other
communication (in writing or otherwise) from any Person, whether from a
Governmental Body, citizens group, employee or otherwise, that alleges that
such Acquired Company is not in compliance with any Environmental Law, and, to
the Knowledge of the Selling Shareholders, there are no circumstances that may
prevent or interfere with such Acquired Company’s compliance with any
Environmental Law in the future.

	 	3.16	 	Insurance.

	 	(a)	 	Part 3.16(a) of the Disclosure Schedule provides a list of the
insurance policies maintained by, at the expense of or for the benefit of each
of the Acquired Companies as at the date of this Agreement (including the name
of the policy, the term, the premium and a brief description of the type of
insurance) and any claims pending thereunder as at the date of this Agreement.
The Company has delivered to the Purchaser (and/or granted the Purchaser access
in the Company’s online or physical data room) accurate and complete copies of
the insurance policies identified on Part 3.16(a) of the Disclosure Schedule.
Each of the insurance policies identified in Part 3.16(a) of the Disclosure
Schedule is in full force and effect.

	 	(b)	 	Since December 31, 2006, none of the Acquired Companies has
received any notice or other communication regarding any actual or possible:
(i) cancellation or invalidation of any insurance policy; (ii) refusal of any
coverage or rejection of any claim under any insurance policy; or (iii)
material adjustment in the amount of the premiums payable with respect to any
insurance policy.

	 	3.17	 	Legal Proceedings; Orders.

	 	(a)	 	Except as set forth in Part 3.17(a) of the Disclosure Schedule,
there is no pending Legal Proceeding and, to the Knowledge of the Selling
Shareholders, no Person has threatened to commence any Legal Proceeding: (i)
that involves any of the Acquired Companies or any of the assets owned or used
by any of the Acquired Companies or any Person whose liability any of the
Acquired Companies has or may have retained or assumed, either contractually or
by operation of law; (ii) that involves any of the Leased Real Property or the
Currently Owned Real Property; (iii) that challenges, or that may have the
effect of preventing, delaying, making illegal or otherwise interfering with,
the Share Purchase or any of the other Contemplated Transactions; or (iv) that
relates to the ownership of any capital stock of any of the Acquired Companies,
or any option or other right to the capital stock of any of the Acquired
Companies, or right to receive consideration as a result of the Share Purchase
or any of the other Contemplated Transactions. To the Knowledge of the Selling
Shareholders, no event has occurred, and no claim, dispute or other condition
or circumstance exists, that will or could reasonably be expected to, give rise
to or serve as a basis for the commencement of any such Legal Proceeding.

24

 

	 	(b)	 	Since January 1, 2003, no Legal Proceeding has been commenced
by, and no Legal Proceeding has been pending against, any of the Acquired
Companies.

	 	(c)	 	There is no order, writ, injunction, judgment or decree to
which any of the Acquired Companies, or any of the assets owned or used by each
of the Acquired Companies, is subject. To the Knowledge of the Selling
Shareholders, no director, officer, or other employee of any of the Acquired
Companies is subject to any order, writ, injunction, judgment or decree that
prohibits such officer or other employee from engaging in or continuing any
conduct, activity or practice relating to the respective Acquired Company’s
business.

	 	3.18	 	Authority; Binding Nature of Agreement; Inapplicability of Anti-takeover
Statutes.

	 	(a)	 	Each of the Selling Shareholders has the absolute and
unrestricted right, power, authority and capacity to enter into and to perform
such Selling Shareholder’s obligations under this Agreement and under each
other agreement, document or instrument referred to in or contemplated by this
Agreement to which any Selling Shareholder is or will be a party; and if a
Selling Shareholder is an Entity, the execution, delivery and performance by
such Selling Shareholder of this Agreement and of each such other agreement,
document and instrument have been duly authorized by all necessary actions on
the part of such Selling Shareholder, its board of directors (or equivalent
body) and its shareholders. This Agreement and each other agreement, document
and instrument referred to in or contemplated by this Agreement to which any
Selling Shareholder is a party constitutes the legal, valid and binding
obligation of such Selling Shareholder, enforceable against such Selling
Shareholder in accordance with its terms, subject to: (i) laws of general
application relating to bankruptcy, insolvency and the relief of debtors; and
(ii) rules of law governing specific performance, injunctive relief and other
equitable remedies.

	 	(b)	 	The Company is not subject to any takeover law or similar Legal
Requirement that might apply to the Contemplated Transactions.

	 	3.19	 	Non-Contravention; Consents. Neither: (1) the execution, delivery or
performance of the Transactional Agreements by any of the Selling Shareholders; nor (2)
the consummation of the Share Purchase or any of the other Contemplated Transactions by
any of the Selling Shareholders did, will or could reasonably be expected to (with or
without notice or lapse of time):

	 	(a)	 	contravene, conflict with or result in a violation of: (i) any
of the provisions of any Charter Documents of any of the Acquired Companies; or
(ii) any resolution adopted by the shareholders, board of directors or any
committee of the board of directors of any of the Acquired Companies;

	 	(b)	 	contravene, conflict with or result in a violation of any Legal
Requirement or any order, writ, injunction, judgment or decree to which any of
the Acquired Companies or any of the Selling Shareholders, or any of the assets
owned or used by any of the Acquired Companies or any of the Selling
Shareholders, is subject;

	 	(c)	 	contravene, conflict with or result in a violation of any of
the terms or requirements of, or give any Governmental Body the right to
revoke, withdraw, suspend, cancel, terminate or modify, any Governmental
Authorization that is

25

 

	 	 	 	held by any of the Acquired Companies or that otherwise relates to any such
Acquired Company’s business or to any of the assets owned or used by any such
Acquired Company;
	 
	 	(d)	 	except as set forth in Part 3.19(d) of the Disclosure Schedule,
contravene, conflict with or result in a violation or breach of, or result in a
default under, any provision of any Acquired Company Contract that is or would
constitute a Material Contract or any Contract that is binding on any Selling
Shareholder, or give any Person the right to: (i) declare a default or exercise
any remedy under any such Acquired Company Contract; (ii) accelerate the
maturity or performance of any such Acquired Company Contract; or (iii) cancel,
terminate or modify any such Acquired Company Contract;
	 
	 	(e)	 	contravene, conflict with or result in a violation of: (i) any
of the provisions of any Charter Documents of such Selling Shareholder that is
an Entity; or (ii) any resolution adopted by the shareholders, board of
directors or any committee of the board of directors of any Selling Shareholder
that is an Entity;
	 
	 	(f)	 	result in the imposition or creation of any lien or other
Encumbrance upon or with respect to any asset owned or used by any of the
Acquired Companies (except for minor liens that will not, in any case or in the
aggregate, materially detract from the value of the assets subject thereto or
materially impair the operations of any of the Acquired Companies); or
	 
	 	(g)	 	result in the release, disclosure or delivery of any Acquired
Company IP by or to any escrow agent or other Person or the grant, assignment
or transfer to any other Person of, or entitle any other Person to exercise or
use, any license or other right or interest under, to or in any of the Acquired
Company IP.

Except as set forth in Part 3.19 of the Disclosure Schedule, none of the Acquired
Companies nor any of the Selling Shareholders is or has been, and none of the
Acquired Companies nor any of the Selling Shareholders will be, required to make any
filing with or give any notice to, or to obtain any Consent from, any Person in
connection with: (x) the execution, delivery or performance of the Transactional
Agreements; or (y) the consummation of the Contemplated Transactions.

	 	3.20	 	Brokers. No broker, finder or investment banker is or will become entitled to
any brokerage, finder’s or other fee or commission in connection with any of the
Contemplated Transactions based upon arrangements made by or on behalf of any of the
Acquired Companies. No Person is or may become entitled to receive any fee or other
amount from any of the Acquired Companies for professional services performed or to be
performed in connection with any of the Contemplated Transactions.

	 	3.21	 	Full Disclosure. This Agreement (including the Disclosure Schedule) does not,
and the Closing Certificate (as defined in Section 2.4) will not: (i) contain any
representation, warranty or information that is false or misleading with respect to any
material fact; or (ii) omit to state any material fact necessary in order to make the
representations, warranties and information contained and to be contained herein and
therein (in the light of the circumstances under which such representations, warranties
and information were or will be made or provided) not false or misleading.

26

 

	4.	 	Representations and Warranties of the Purchaser

The Purchaser represents and warrants to the Selling Shareholders as follows:

	 	4.1	 	Valid Existence. The Purchaser is a corporation validly existing and in good
standing under the laws of the State of Delaware and has full power and authority to
perform its obligations under this Agreement.

	 	4.2	 	Non-Contravention; Consents.

	 	(a)	 	Neither: (i) the execution, delivery or performance by the
Purchaser of the Transactional Agreements; nor (ii) the consummation by the
Purchaser of the Contemplated Transactions, will (with or without notice or
lapse of time) contravene, conflict with or result in a violation of: (A) any
of the provisions of the certificate of incorporation or bylaws of the
Purchaser; (B) any resolution adopted by the stockholders, the board of
directors or any committee of the board of directors of the Purchaser; or (C)
any provision of any material contract by which the Purchaser is bound.

	 	(b)	 	Except as may be required under Antitrust Laws (as defined in
Section 6.1(a)), the Purchaser will not be required to obtain any Consent from
any Person in connection with: (i) the execution, delivery or performance of
the Transactional Agreements; or (ii) the consummation of any of the
Contemplated Transactions.

	 	4.3	 	Authority; Binding Nature of Agreement. The Purchaser has the absolute and
unrestricted right, power and authority to enter into and perform its obligations under
this Agreement and under each other agreement, document and instrument referred to in
this Agreement to which the Purchaser is a party; and the execution, delivery and
performance by the Purchaser of this Agreement any of each such other agreement,
document and instrument have been duly authorized by all necessary action on the part
of the Purchaser and, if necessary, its board of directors. No vote of the Purchaser’s
stockholders is needed to approve the Contemplated Transactions. The Transactional
Agreements to which the Purchaser is a party constitutes the legal, valid and binding
obligation of the Purchaser, enforceable against it in accordance with its terms,
subject to: (a) laws of general application relating to bankruptcy, insolvency and the
relief of debtors; and (b) rules of law governing specific performance, injunctive
relief and other equitable remedies.

	 	4.4	 	No Legal Proceedings; Orders. There is no pending Legal Proceedings and, to
the knowledge of the Purchaser, no Legal Proceedings is threatened against the
Purchaser in connection with the Share Purchase or any of the other Contemplated
Transactions. There is no order, writ, injunction or decree affecting the Purchaser in
connection with the Share Purchase or any of the other Contemplated Transactions.

	5.	 	Interim Management

	 	5.1	 	Access and Investigation. During the period from the date of this Agreement
and continuing until the earlier of the termination of this Agreement pursuant to
Section 9 or the Closing (the “Pre-Closing Period”), each of the Selling
Shareholders shall, and each of the Selling Shareholders shall ensure that the Acquired
Companies and their respective Representatives, subject to the Confidentiality
Agreement: (a) upon reasonable advance notice, provide the Purchaser and the
Purchaser’s Representatives with reasonable access during normal business hours to the
Acquired Companies’ Representatives, personnel and assets and to all existing books,
records, Tax Returns and related supporting documents,

27

 

	 	 	 	work papers and other documents and information relating to the Acquired Companies;
and (b) act reasonably in providing the Purchaser and the Purchaser’s
Representatives with copies (or permitting the Purchaser and the Purchaser’s
Representatives to make copies) of such existing books, records, Tax Returns and
related supporting documents, work papers and other documents and information
relating to each of the Acquired Companies, and with such additional financial,
operating and other data and information regarding each of the Acquired Companies,
as the Purchaser may reasonably request; provided, however, that (i) the Selling
Shareholders shall not be required to violate any Legal Requirement relating to
confidentiality to which they, or the Acquired Companies, are subject, and such
access and investigation shall be conducted in such a manner as not to interfere in
any material respect with the operation of the Acquired Companies. During the
Pre-Closing Period, the Purchaser (only in consultation and collaboration with the
Company or a Selling Shareholder, and with the prior written consent of a Selling
Shareholder, which consent shall not be unreasonably delayed or withheld) may make
inquiries of Persons having business relationships with any of the Acquired
Companies (including suppliers, licensors, distributors and customers) and each of
the Selling Shareholders shall ensure that each of the Acquired Companies helps
facilitate (and provides reasonable cooperation to the Purchaser in connection with)
such inquiries.
	 
	 	5.2	 	Operation of the Business of the Acquired Companies. During the Pre-Closing
Period, each of the Selling Shareholders shall ensure that, except as specifically
described in Part 5.2 of the Disclosure Schedule:

	 	(a)	 	each of the Acquired Companies conducts its business and
operations in the ordinary course and in substantially the same manner as such
business and operations have been conducted prior to the date of this
Agreement;

	 	(b)	 	each of the Acquired Companies uses commercially reasonable
efforts to preserve intact its current business organization, keep available
the services of its current officers and employees and maintain its relations
and good will with all suppliers, customers (it being understood that customary
delivery times of six-seven months will continue to be provided in all Acquired
Company Contracts entered into during Pre-closing Period), landlords,
creditors, employees and other Persons having business relationships with such
Acquired Company;

	 	(c)	 	none of the Acquired Companies cancel any of its respective
insurance policies identified in Part 3.16 of the Disclosure Schedule;

	 	(d)	 	except as set forth in Part 5.2(d) of the Disclosure Schedule,
none of the Acquired Companies declare, accrue, set aside or pay any dividend
or make any other distribution in respect of any shares of capital stock or
other securities, or repurchase, redeem or otherwise reacquire any shares of
capital stock or other securities;

	 	(e)	 	none of the Acquired Companies sell, issue or authorize the
issuance of: (i) any capital stock or other security; (ii) any option or right
to acquire any capital stock (or cash based on the value of capital stock) or
other security; or (iii) any instrument convertible into or exchangeable for
any capital stock (or cash based on the value of capital stock) or other
security;

	 	(f)	 	none of the Acquired Companies amend or permit the adoption of
any amendment to any Acquired Company’s Charter Documents, or effect or permit

28

 

	 	 	 	any Acquired Company to become a party to any Acquisition Transaction,
recapitalization, reclassification of shares, stock split, reverse stock
split or similar transaction;
	 
	 	(g)	 	none of the Acquired Companies form any subsidiary or acquire
any equity interest or other interest in any other Entity;
	 
	 	(h)	 	none of the Acquired Companies shall make any capital
expenditure (in Italian, acquisto di beni strumentali), except for capital
expenditures that, when added to all other capital expenditures made by the
Acquired Companies during the Pre-Closing Period, do not exceed €250.000,00;
	 
	 	(i)	 	none of the Acquired Companies: (i) enter into, or permit any
of the assets owned or used by it to become bound by, any Contract that is or
would constitute a Material Contract; or (ii) amend or prematurely terminate,
or waive any material right or remedy under, any such Contract;
	 
	 	(j)	 	none of the Acquired Companies: (i) acquire, lease or license
any right or other asset from any other Person for an aggregate value in excess
of €250.000,00; (ii) sell or otherwise dispose of, or lease or license, any
right or other asset to any other Person; or (iii) waive or relinquish any
right, except in the ordinary course of business consistent with past
practices;
	 
	 	(k)	 	none of the Acquired Companies: (i) lend money to any Person
(except that each of the Acquired Companies may make routine travel advances to
current employees of such Acquired Company in the ordinary course of business
consistent with past practices); or (ii) incur or guarantee any indebtedness
for borrowed money in excess of €100.000,00 in the aggregate;
	 
	 	(l)	 	none of the Acquired Companies: (i) establish, adopt, amend or
terminate any Plan; (ii) pay any bonus or make any profit-sharing payment, cash
incentive payment or similar payment, other than commissions paid in the
ordinary course of business and consistent with past practices; (iii) increase
the amount of the wages, salary, commissions, fringe benefits or other
compensation (including equity-based compensation, whether payable in cash or
otherwise) or remuneration payable to any of its directors, officers, employees
(whether regular or temporary, direct hire or leased), contractors or
consultants; or (iv) hire or make an offer to hire any new officer, director,
employee (whether regular or temporary, direct hire or leased), consultant or
contractor;
	 
	 	(m)	 	none of the Acquired Companies change any of its methods of
accounting or accounting practices in any material respect;
	 
	 	(n)	 	none of the Acquired Companies make any Tax election;
	 
	 	(o)	 	none of the Acquired Companies commence or settle any Legal
Proceeding; and
	 
	 	(p)	 	none of the Acquired Companies agree or commit to take any of
the actions described in clauses “(e)” through “(o)” above.

Notwithstanding the foregoing, an Acquired Company may take any action described in
clauses “(a)” through “(q)” above if the Purchaser gives its prior written consent
to the taking of such action by the Acquired Company, which consent shall not be
unreasonably

29

 

delayed or withheld with respect to any action described in clauses “(i),” “(j),”
“(l)” (other than with respect to directors of the Acquired Companies), “(m)” or
“(p)” above.

	 	5.3	 	Notification; Updates to Disclosure Schedule. During the Pre-Closing Period,
each of the Selling Shareholders shall promptly notify the Purchaser in writing of: (a)
the discovery by any of the Acquired Companies or the Selling Shareholders of any
event, condition, fact or circumstance that occurred or existed on or prior to the date
of this Agreement and that caused or constitutes a breach of or an inaccuracy in any
representation or warranty made by any of the Selling Shareholders or by the Purchaser
in this Agreement; (b) any event, condition, fact or circumstance that occurs, arises
or exists after the date of this Agreement and that would cause or constitute a breach
of or an inaccuracy in any representation or warranty made by any of the Selling
Shareholders or the Purchaser in this Agreement if: (i) such representation or warranty
had been made as at the time of the occurrence, existence or discovery of such event,
condition, fact or circumstance; or (ii) such event, condition, fact or circumstance
had occurred, arisen or existed on or prior to the date of this Agreement; and (c) any
breach of any covenant or obligation of any of the Selling Shareholders (it being
understood that the failure of the Selling Shareholders to perform any obligations set
forth in this sentence as such obligations relate to inaccuracies or breaches by the
Purchaser shall: (x) not provide the Purchaser with any rights or remedies under this
Agreement, including under Section 7.2 or Section 9.1; and (y) not limit or otherwise
affect any rights or remedies available to the Selling Shareholders, including under
Section 10). During the Pre-Closing Period, the Purchaser shall promptly notify the
Selling Shareholders in writing of: (A) the discovery by the Purchaser of any event,
condition, fact or circumstance that occurred or existed on or prior to the date of
this Agreement and that caused or constitutes a breach of or an inaccuracy in any
representation or warranty made by the Purchaser or by any of the Selling Shareholders
in this Agreement; (B) any event, condition, fact or circumstance that occurs, arises
or exists after the date of this Agreement and that would cause or constitute a breach
of or an inaccuracy in any representation or warranty made by the Purchaser or by any
of the Selling Shareholders in this Agreement if: (1) such representation or warranty
had been made as at the time of the occurrence, existence or discovery of such event,
condition, fact or circumstance; or (2) such event, condition, fact or circumstance had
occurred, arisen or existed on or prior to the date of this Agreement; and (C) any
breach of any covenant or obligation of the Purchaser (it being understood that the
failure of the Purchaser to perform any obligations set forth in this sentence as such
obligations relate to inaccuracies or breaches by any of the Selling Shareholders
shall: (x) not provide the Selling Shareholders with any rights or remedies under this
Agreement, including under Section 8.2 or Section 9.1; and (y) not limit or otherwise
affect any rights or remedies available to the Purchaser, including under Section 10).
Each Party shall promptly notify the other Party of the discovery by such Party of any
event, condition, fact or circumstance that would make the timely satisfaction of any
of the conditions set forth in Section 7 or Section 8 impossible or unlikely. No
notification given pursuant to this Section 5.3 shall be deemed to supplement or amend
the Disclosure Schedule for the purpose of: (x) determining the accuracy of any of the
representations and warranties made by any of the Selling Shareholders in this
Agreement; or (y) determining whether any of the conditions set forth in Section 7 has
been satisfied.

	 	5.4	 	No Negotiation. During the Pre-Closing Period, each of the Selling
Shareholders shall ensure that none of the Acquired Companies or any of the Selling
Shareholders shall, and each of the Selling Shareholders shall ensure that none of the
Acquired Companies or any of the Selling Shareholders shall authorize or permit any
Representative of any of the Acquired Companies or the Selling Shareholders to,
directly or indirectly: (a) solicit or

30

 

	 	 	 	encourage the initiation or submission of any expression of interest, inquiry,
proposal or offer from any Person (other than the Purchaser) relating to a possible
Acquisition Transaction or make or communicate any expression of interest, inquiry,
proposed or offer to any Person (other than the Purchaser or its Representatives)
relating to or in connection with a possible Acquisition Transaction; (b)
participate in any discussions or negotiations or enter into any agreement,
understanding or arrangement with, or provide any non-public information to, any
Person (other than the Purchaser or its Representatives) relating to or in
connection with a possible Acquisition Transaction; or (c) entertain or accept any
proposal or offer from any Person (other than the Purchaser) relating to a possible
Acquisition Transaction. Except to the extent prohibited by law, each of the
Selling Shareholders shall ensure that the Company shall promptly (and in any event
within 48 hours of receipt thereof) notify the Purchaser in writing of any
expression of interest, inquiry, proposal or offer relating to a possible
Acquisition Transaction that is received by any of the Acquired Companies or the
Selling Shareholders during the Pre-Closing Period (including the identity of the
Person making or submitting such inquiry, indication of interest, proposal or offer,
and the terms thereof).
	 
	 	5.5	 	No Transfer of Shares. No Selling Shareholder shall sell, assign, transfer or
otherwise convey any such Selling Shareholder’s Shares, other than to Purchaser (or its
nominee) pursuant to this Agreement and no Selling Shareholder shall pledge any of its
Shares or otherwise permit any of its Shares to become subject to any Encumbrance.

	6.	 	Certain covenants of the Parties

	 	6.1	 	Filings and Consents.

	 	(a)	 	Each Party shall use commercially reasonable efforts to file
(and each of the Selling Shareholders shall use commercially reasonable efforts
to cause the Acquired Companies to file), as soon as practicable after the date
of this Agreement, all notices, reports and other documents required to be
filed by such Party (and, with respect to the obligations of the Selling
Shareholders, by the Acquired Companies) with any Governmental Body with
respect to the Contemplated Transactions, and to submit promptly any additional
information requested by any such Governmental Body. Without limiting the
generality of the foregoing, the Purchaser shall (and, to the extent
applicable, each of the Selling Shareholders shall ensure that the Acquired
Companies shall), promptly (and, subject to compliance by the Parties with the
first sentence of Section 6.1(b), in any event within 21 days after) the date
of this Agreement file the notifications required under applicable antitrust,
competition or fair trade laws or regulations (collectively, the “Antitrust
Laws”) in connection with the Contemplated Transactions. The Parties shall
(and each of the Selling Shareholders shall ensure that the Acquired Companies
shall) respond as promptly as practicable to any inquiries or requests received
from any Governmental Body and promptly inform the other Parties of any
communication to or from any Government Body, in each case regarding the
Contemplated Transactions.

	 	(b)	 	Subject to the confidentiality provisions of the
Confidentiality Agreement, each Party shall (and each of the Selling
Shareholders shall ensure that the Acquired Companies shall) promptly supply
the other Parties with any information which may be required in order to
effectuate any filings (including applications) pursuant to (and to otherwise
comply with its obligations set forth in)

31

 

	 	 	 	Section 6.1(a). Except where prohibited by applicable Legal Requirements or any
Governmental Body, and subject to the confidentiality provisions of the
Confidentiality Agreement, each of the Parties shall (and each of the Selling
Shareholders shall ensure that the Acquired Companies shall): (i) consult
with the other Parties prior to making any such filing and taking a position
with respect to any such filing; (ii) permit the other to review and discuss
in advance, and consider in good faith the views of the other Parties in
connection with, any analyses, appearances, presentations, memoranda, briefs,
white papers, arguments, opinions and proposals before making or submitting
any of the foregoing to any Governmental Body by or on behalf of any Party
(or any Acquired Company) in connection with any Legal Proceeding related
solely to the Transactional Agreements and the Contemplated Transactions
(including any such Legal Proceeding relating to any Antitrust Law); (iii)
coordinate with the other Parties in preparing and exchanging such
information; and (iv) promptly provide the other Parties (and their counsel)
with copies of all filings, notices, analyses, presentations, memoranda,
briefs, white papers, opinions, proposals and other submissions (and a
summary of any oral presentations) made or submitted by such Party (or, in
the case of the obligations of the Selling Shareholders, submitted by any
Acquired Company) with or to any Governmental Body related solely to this
Agreement or the transactions contemplated hereby.
	 
	 	(c)	 	Subject to Section 6.1(d), the Parties shall (and each of the
Selling Shareholders shall ensure that the Acquired Companies shall) use
commercially reasonable efforts to: (i) take all other actions necessary to
cause the expiration or termination of the applicable waiting periods under the
Antitrust Laws as soon as practicable; (ii) resolve any objections which may be
asserted by any Governmental Body with respect to the Contemplated Transactions
under the Antitrust Laws; and (iii) take, or cause to be taken, all actions
necessary to obtain each Consent (if any) required to be obtained (pursuant to
any applicable Legal Requirement or Contract, or otherwise) by such Party (or,
in the case of the obligations of the Selling Shareholders, by any Acquired
Company) in connection with any of the Contemplated Transactions and to make
effective the Contemplated Transactions. Subject to Section 6.1(d), if any
Governmental Body, including any competition authority, shall impose amendments
to the Contemplated Transactions or commitments to be undertaken by any Party
as a condition to release of such Governmental Body’s Consent with respect to
the Contemplated Transactions, the Parties shall commence and conduct good
faith negotiations with each other for no less than 15 days and use their
commercially reasonable efforts in order to agree upon amendments to the
Transactional Agreements which are necessary in order to meet the requirements
imposed by such Governmental Body. At the request of the Purchaser, the
Selling Shareholders shall ensure that the Acquired Companies shall agree to
divest, sell, dispose of, hold separate or otherwise take or commit to take any
action relating to the business, product lines or assets of any Acquired
Company, provided that any such action is: (i) determined by the Purchaser in
good faith to facilitate compliance with any Legal Requirement or any request
by any Governmental Body; and (ii) conditioned upon the Closing (it being
understood that no action taken pursuant to this sentence shall cause the
Purchase Price to be reduced).
	 
	 	(d)	 	Notwithstanding anything to the contrary contained in Section
6.1(c) or elsewhere in this Agreement, the Purchaser shall not have any
obligation under this Agreement: (i) to divest or agree to divest (or cause any
of the Acquired

32

 

	 	 	 	Companies or any of Purchaser’s Affiliates to divest or agree to divest) any
of the respective businesses, product lines or assets of the Purchaser, any
of the Affiliates of the Purchaser or any of the Acquired Companies, or to
take or agree to take (or cause any of the Acquired Companies or any of
Purchaser’s Affiliates to take or agree to take) any other action or agree
(or cause any of the Acquired Companies or any of Purchaser’s Affiliates to
agree) to any limitation or restriction on any of the respective businesses,
product lines or assets of the Purchaser, any of the Affiliates of the
Purchaser or any of the Acquired Companies; or (ii) to contest any Legal
Proceeding relating to any of the Contemplated Transactions.

	 	6.2	 	Disclosure.

	 	(a)	 	From and after the date of this Agreement, except as expressly
contemplated by this Agreement or as required by law, none of the Selling
Shareholders shall (and the Selling Shareholders shall ensure that none of the
Acquired Companies, none of the Representatives of the Acquired Companies and
none of the Representatives of the Selling Shareholders shall) issue any press
release or make any public statement regarding (or otherwise disclose to any
Person the existence or terms of) the Transactional Agreements or any of the
Contemplated Transactions, without the Purchaser’s prior written consent;
provided, however, that the Selling Shareholders shall not be required to
obtain the consent of the Purchaser with respect to any disclosure relating to
the Contemplated Transactions if such disclosure is not more expansive than or
inconsistent with prior disclosures made in accordance with this Section 6.2.
Prior to the Closing, the Purchaser shall consult with the Selling Shareholders
regarding the contents of any public announcement made by the Purchaser with
respect to the Contemplated Transactions; provided, however, that: (i) the
Purchaser shall not be required to consult with the Selling Shareholders
regarding any disclosure in any filings made by the Purchaser with the United
States Securities and Exchange Commission; and (ii) the Purchaser shall not be
required to consult with the Selling Shareholders with respect to any
disclosure relating to the Contemplated Transactions if such disclosure is not
more expansive than or inconsistent with prior disclosures made in accordance
with this Section 6.2.

	 	(b)	 	From and after the date of this Agreement, each of the Selling
Shareholders shall (and shall cause their Representatives and shareholders to)
keep strictly confidential, and shall not use (and shall ensure that none of
their Representatives or shareholders use) or disclose (and shall ensure that
none of their Representatives or shareholders disclose) to any other Person,
any non public document or other information that relates to the business,
capitalization or assets of the Acquired Companies. During the Pre-Closing
Period, the Purchaser shall remain bound by the Confidentiality Agreement with
respect to the confidentiality of information relating to the Acquired
Companies.

	 	6.3	 	Commercially Reasonable Efforts. Prior to the Closing: (a) each of the Selling
Shareholders shall (and each of the Selling Shareholders shall ensure that each of the
Acquired Companies shall) use commercially reasonable efforts to cause the conditions
set forth in Section 7 to be satisfied on a timely basis; and (b) the Purchaser shall
use commercially reasonable efforts to cause the conditions set forth in Section 8 to
be satisfied on a timely basis.

33

 

	 	6.4	 	Communications. Prior to the Closing Date, none of the Selling Shareholders
shall (and the Selling Shareholders shall ensure that none of the Acquired Companies,
none of the Representatives of the Acquired Companies and none of the Representatives
of the Selling Shareholders shall) communicate with Acquired Company Employees
regarding post-Closing employment matters with the Purchaser or any subsidiary or
affiliate of the Purchaser, including post-Closing employee benefit plans and
compensation, without the prior written approval of the Purchaser.

	7.	 	Conditions Precedent to Purchaser’s obligations to close
	 
	 	 	The obligations of the Purchaser to consummate the Contemplated Transactions are subject to
the satisfaction (or waiver by the Purchaser), at or prior to the Closing, of each of the
following conditions:

	 	7.1	 	Accuracy of Representations.

	 	(a)	 	Each of the representations and warranties made by the Selling
Shareholders in this Agreement (other than in Section 3.3(b)) shall have been
accurate in all material respects as at the date of this Agreement; provided,
however, that: (i) for purposes of determining the accuracy of such
representations and warranties, all materiality qualifications or similar
qualifications contained in such representations and warranties shall be
disregarded; and (ii) for purposes of this Section 7.1(a), the materiality of
any inaccuracy shall be determined in accordance with Article 1455 of the
Italian Civil Code.

	 	(b)	 	Each of the representations and warranties made by the Selling
Shareholders in Section 3.3(b) shall have been accurate in all respects as at
the date of this Agreement.

	 	(c)	 	Each of the representations and warranties made by the Selling
Shareholders in this Agreement (other than in Section 3.3(b)) shall be accurate
in all respects as at the Closing Date as if made on and as at the Closing Date
(except for such representations and warranties which address matters only as
at a particular time, which shall have been accurate in all respects as at such
particular time), except in any case for such failure to be accurate as would
not (and would not reasonably be expected to), individually or in the
aggregate, have a Material Adverse Effect; provided, however, that, for
purposes of determining the accuracy of such representations and warranties,
all materiality qualifications or similar qualifications contained in such
representations and warranties shall be disregarded and any update of or
modification to the Disclosure Schedule made or purported to have been made
after the date of this Agreement shall be disregarded.

	 	(d)	 	Each of the representations and warranties made by the Selling
Shareholders in Section 3.3(b) shall be accurate in all respects as at the
Closing Date as if made on and as at the Closing Date (except for such
representations and warranties which address matters only as at a particular
time, which shall have been accurate in all respects as at such particular
time); provided, however, that, for purposes of determining the accuracy of
such representations and warranties, any update of or modification to the
Disclosure Schedule made or purported to have been made after the date of this
Agreement shall be disregarded.

34

 

	 	7.2	 	Performance of Covenants. Each of the covenants and obligations that the
Selling Shareholders are required to comply with or to perform at or prior to the
Closing shall have been complied with and performed in all material respects. For
purposes of this Section 7.2, the materiality of any failure to comply or perform shall
be determined in accordance with Article 1455 of the Italian Civil Code.
	 
	 	7.3	 	Antitrust; Governmental Filings; Other Consents.

	 	(a)	 	Any waiting periods applicable to the consummation of the Share
Purchase or any of the other Contemplated Transactions under the Antitrust Laws
shall have expired or been terminated, and there shall not be in effect any
voluntary agreement between the Purchaser and any Governmental Body pursuant to
which the Purchaser has agreed not to consummate the Share Purchase or any of
the other Contemplated Transactions for any period of time (it being understood
that the Purchaser shall not enter into any such agreement without the prior
consent of the Selling Shareholders, such consent not to be unreasonably
withheld or delayed).

	 	(b)	 	All filings with and other Consents of any Governmental Body
(whether pursuant to any Antitrust Law or other Legal Requirement) required to
be made or obtained in connection with the Share Purchase or any of the other
Contemplated Transactions shall have been made or obtained and shall be in full
force and effect.

	 	(c)	 	All material Consents of third parties (other than Governmental
Bodies) required to be obtained in connection with the Share Purchase or any of
the other Contemplated Transactions shall have been obtained and shall be in
full force and effect.

	 	7.4	 	No Material Adverse Effect. Between the date of this Agreement and the Closing
Date, no event shall have occurred or circumstance shall exist that, in combination
with any other events or circumstances, has had (or would be reasonably expected to
have) any Material Adverse Effect.
	 
	 	7.5	 	Transfer of Real Property. The Real Property Transfer shall have been
consummated in accordance with the Real Property Transfer Agreement.
	 
	 	7.6	 	Transfer of Acquired Patents. The transactions contemplated by that certain IP
Transfer Agreement entered into by the Purchaser and Mr. Gisulfo Baccini as at the date
of this Agreement (such transactions being referred to as the “IP Transfer” and
such agreement being referred to as the “IP Transfer Agreement”) shall have
been consummated in accordance with the IP Transfer Agreement.
	 
	 	7.7	 	No Restraints. No temporary restraining order, preliminary or permanent
injunction or other order, writ, injunction, judgment or decree preventing the
consummation of any of the Contemplated Transactions shall have been issued by any
court of competent jurisdiction and remain in effect, and there shall not be any Legal
Requirement enacted or deemed applicable to any of the Contemplated Transactions that
makes consummation of any of such transactions illegal.
	 
	 	7.8	 	No Legal Proceedings. No Governmental Body and no other Person shall have
commenced or threatened to commence any Legal Proceeding: (a) challenging any of the

35

 

	 	 	 	Contemplated Transactions or seeking the recovery of material damages in connection
with any of the Contemplated Transactions; (b) seeking to prohibit or limit the
exercise by the Purchaser of any material right pertaining to its ownership of any
of the Shares; (c) that may have the effect of preventing, delaying, making illegal
or otherwise interfering in any material respect with any of the Contemplated
Transactions; or (d) seeking to compel any of the Acquired Companies, the Purchaser
or any affiliate of the Purchaser to dispose of or hold separate any material assets
as a result of any of the Contemplated Transactions.
	 
	 	7.9	 	Employees. None of the individuals identified on Schedule 7.9 shall
have ceased to be employed by the Acquired Company by which such Person is employed, or
shall have expressed an intention to terminate his or her employment with such Acquired
Company or to decline to accept employment with the Purchaser.

	8.	 	Conditions Precedent to obligations of the Selling Shareholders
	 
	 	 	The obligations of the Selling Shareholders to
consummate the Contemplated Transactions are subject
to the satisfaction (or waiver), at or prior to the
Closing, of the following conditions:

	 	8.1	 	Accuracy of Representations.

	 	(a)	 	Each of the representations and warranties made by the
Purchaser in this Agreement shall have been accurate in all material respects
as at the date of this Agreement; provided, however, that (i) for purposes of
determining the accuracy of such representations and warranties, all
materiality qualifications or similar qualifications contained in such
representations and warranties shall be disregarded; and (ii) for purposes of
this Section 8.1(a), the materiality of any inaccuracy shall be determined in
accordance with Article 1455 of the Italian Civil Code.

	 	(b)	 	Each of the representations and warranties made by the
Purchaser in this Agreement shall be accurate in all respects as at the Closing
Date as if made on and as at the Closing Date (except for such representations
and warranties which address matters only as at a particular time, which shall
have been accurate in all respects as at such particular time), except in any
case for such failure to be accurate as would not (and would not reasonably be
expected to), individually or in the aggregate, have a material adverse effect
on the Purchaser and its subsidiaries taken as a whole; provided, however, that
for purposes of determining the accuracy of such representations and
warranties, all materiality qualifications or similar qualifications contained
in such representations and warranties shall be disregarded.

	 	8.2	 	Performance of Covenants. Each of the covenants and obligations that the
Purchaser is required to comply with or to perform at or prior to the Closing shall
have been complied with and performed in all material respects. For purposes of this
Section 8.2, the materiality of any failure to comply or perform shall be determined in
accordance with Article 1455 of the Italian Civil Code.

	 	8.3	 	No Restraints. No temporary restraining order, preliminary or permanent
injunction or other order, writ, injunction, judgment or decree preventing the
consummation by the Selling Shareholders of the Contemplated Transactions shall have
been issued by any court of competent jurisdiction and remain in effect, and there
shall not be any Legal

36

 

	 	 	 	Requirement enacted or deemed applicable to the transactions contemplated by this
Agreement that makes consummation by the Selling Shareholders of such transactions
illegal.
	 
	 	8.4	 	No Legal Proceedings. No Governmental Body and no other Person shall have
commenced or threatened to commence any Legal Proceeding seeking the recovery of
material damages from the Selling Shareholders in connection with any of the
Contemplated Transactions (it being understood that this condition shall not apply to
the extent that any such Legal Proceeding or threat arises from a breach (or alleged
breach) of any exclusivity agreement or other Contract to which any Selling Shareholder
or Acquired Company is a party).

	9.	 	Termination

	 	9.1	 	Termination Events. This Agreement may be terminated prior to the Closing:

	 	(a)	 	by the mutual written consent of the Purchaser and the Selling
Shareholders;

	 	(b)	 	by either the Purchaser or the Selling Shareholders if the
Closing has not taken place on or before 5:00 p.m. (U.S. Pacific time) on March
15, 2008 (other than as a result of any failure on the part of the Party
wishing to terminate to comply with or perform any covenant or obligation set
forth in this Agreement (or in any other agreement or instrument entered into
by such Party in connection with the Contemplated Transactions);

	 	(c)	 	by either the Purchaser or the Selling Shareholders if: (i) a
court of competent jurisdiction or other Governmental Body shall have issued a
final and nonappealable order, decree or ruling, or shall have taken any other
action, having the effect of permanently restraining, enjoining or otherwise
prohibiting the Contemplated Transactions; or (ii) there shall be any Legal
Requirement enacted, promulgated, issued or deemed applicable to the
Contemplated Transactions by any Governmental Body that would make consummation
of such transactions illegal;

	 	(d)	 	by the Purchaser if: (i) any of the representations and
warranties of any of the Selling Shareholders contained in this Agreement shall
be inaccurate as at the date of this Agreement, or shall have become inaccurate
as at a date subsequent to the date of this Agreement, such that any of the
conditions set forth in Section 7.1 would not be satisfied; or (ii) any of the
covenants of any of the Selling Shareholders contained in this Agreement shall
have been breached such that the condition set forth in Section 7.2 would not
be satisfied; provided, however, that if an inaccuracy in any of the
representations and warranties of any of the Selling Shareholders as at a date
subsequent to the date of this Agreement or a breach of a covenant by any of
the Selling Shareholders is curable by a Selling Shareholder through the use of
commercially reasonable efforts within 30 days after the Purchaser notifies the
Selling Shareholder in writing of the existence of such inaccuracy or breach
(the “Selling Shareholders Cure Period”), then the Purchaser may not
terminate this Agreement under this Section 9.1(d) as a result of such
inaccuracy or breach prior to the expiration of the Selling Shareholders Cure
Period, provided the Selling Shareholders, during the Selling Shareholders Cure
Period, continue to exercise commercially reasonable efforts to cure such
inaccuracy or breach (it being understood that the Purchaser may not

37

 

	 	 	 	terminate this Agreement pursuant to this Section 9.1(d) with respect to such
inaccuracy or breach if such inaccuracy or breach is cured prior to the
expiration of the Selling Shareholders Cure Period); or
	 
	 	(e)	 	by the Selling Shareholders if: (i) any of the Purchaser’s
representations and warranties contained in this Agreement shall be inaccurate
as at the date of this Agreement, or shall have become inaccurate as at a date
subsequent to the date of this Agreement, such that the condition set forth in
Section 8.1 would not be satisfied; or (ii) if any of the Purchaser’s covenants
contained in this Agreement shall have been breached such that the condition
set forth in Section 8.2 would not be satisfied; provided, however, that if an
inaccuracy in any of the Purchaser’s representations and warranties as at a
date subsequent to the date of this Agreement or a breach of a covenant by the
Purchaser is curable by the Purchaser through the use of commercially
reasonable efforts within 30 days after the Selling Shareholders notify the
Purchaser in writing of the existence of such inaccuracy or breach (the
“Purchaser Cure Period”), then the Selling Shareholders may not
terminate this Agreement under this Section 9.1(e) as a result of such
inaccuracy or breach prior to the expiration of the Purchaser Cure Period,
provided the Purchaser, during the Purchaser Cure Period, continues to exercise
commercially reasonable efforts to cure such inaccuracy or breach (it being
understood that the Selling Shareholders may not terminate this Agreement
pursuant to this Section 9.1(e) with respect to such inaccuracy or breach if
such inaccuracy or breach is cured prior to the expiration of the Purchaser
Cure Period).

	 	9.2	 	Termination Procedures. If the Purchaser wishes to terminate this Agreement
pursuant to Section 9.1, the Purchaser shall deliver to the Selling Shareholders a
written notice stating that the Purchaser is terminating this Agreement and setting
forth a brief description of the basis on which the Purchaser is terminating this
Agreement. If the Selling Shareholders wish to terminate this Agreement pursuant to
Section 9.1, they shall deliver to the Purchaser a written notice stating that it is
terminating this Agreement and setting forth a brief description of the basis on which
the Selling Shareholders are terminating this Agreement.

	 	9.3	 	Effect of Termination. If this Agreement is terminated pursuant to Section
9.1, all further obligations of the Parties under this Agreement shall terminate;
provided, however, that: (a) the Selling Shareholders and the Purchaser shall not be
relieved of any obligation or liability arising from any prior breach by such Party of
any provision of this Agreement; (b) the Parties shall, in all events, remain bound by
and continue to be subject to the provisions set forth in Section 12; and (c) the
Parties shall, in all events, remain bound by and continue to be subject to Section 6.2
and the Confidentiality Agreement for the term provided therein (it being understood
that if, after the termination of this Agreement, the Purchaser makes any public
statement with respect to this Agreement or the Contemplated Transactions, Section 6.2
shall not prevent the Selling Shareholders from either correcting any incorrect
information disclosed by the Purchaser in such public statement or making statements
that are consistent with (but not more expansive than) such public statement).

38

 

	10.	 	Indemnification

	 	10.1	 	Survival of Representations, Etc.

	 	(a)	 	Subject to Section 10.1(d), the representations and warranties
made by the Selling Shareholders in this Agreement (including the
representations and warranties set forth in the Closing Certificate and the
Acquisition Consideration Certificate) shall survive the Closing and, except
for the Specified Representations, shall expire at 11:59 p.m. U.S. Pacific Time
on the first anniversary of the Closing Date (the “Expiration Date”);
provided, however, that if, at any time prior to the Expiration Date, any
Indemnitee (acting in good faith) delivers to the Selling Shareholders a Claim
Notice (as defined in Schedule 12.7(c)) alleging the existence of an
inaccuracy in or a breach of any of the representations and warranties made by
any of the Selling Shareholders and asserting a claim for recovery under
Section 10.2 based on such alleged inaccuracy or breach (which such Claim
Notice states with reasonable detail the basis for such claim), then the claim
asserted in such Claim Notice and the representations and warranties with
respect to such claim shall survive the Expiration Date until such time as such
claim is fully and finally resolved. Each of the Specified Representations
shall survive the Closing until the expiration of the statute of limitations
applicable to the subject matter of such Specified Representations. The
representations and warranties made by the Purchaser shall not survive the
Closing.

	 	(b)	 	The representations, warranties, covenants and obligations of
the Selling Shareholders, and the rights and remedies that may be exercised by
the Indemnitees, shall not be limited or otherwise affected by or as a result
of any information furnished to, or any investigation made by or knowledge of,
any of the Indemnitees or any of their Representatives.

	 	(c)	 	For purposes of this Agreement, each statement or other item of
information set forth in the Disclosure Schedule or in any update to the
Disclosure Schedule shall be deemed to be a representation and warranty made by
the Selling Shareholders in this Agreement.

	 	(d)	 	Nothing contained in this Section 10.1 or elsewhere in this
Agreement shall limit any rights or remedy of any Indemnitee for claims based
on intentional misrepresentation or fraud.

	 	10.2	 	Indemnification by Selling Shareholders. From and after the Closing (but
subject to Section 10.1), the Selling Shareholders (the “Indemnitors”), jointly
and severally, shall, subject to the limitations set forth in Section 10.3, hold
harmless and indemnify each of the Indemnitees from and against, and shall pay and
reimburse each of the Indemnitees for, any Damages which are suffered or incurred by
any of the Indemnitees or to which any of the Indemnitees may otherwise become
obligated (regardless of whether or not such Damages relate to any third-party claim)
and which arise from or as a result of, or are connected with:

	 	(a)	 	any inaccuracy in or breach of any representation or warranty
made by a Selling Shareholder in this Agreement as at the date of this
Agreement (in each case, without giving effect to any update of or modification
to the Disclosure Schedule made or purported to have been made after the date
of this Agreement);

	 	(b)	 	any inaccuracy in or breach of any representation or warranty
made by a Selling Shareholder in this Agreement as if such representation or
warranty were made on and as at the Closing Date or in the Closing Certificate
or the Acquisition Consideration Certificate (in each case, without giving
effect to any update of or

39

 

	 	 	 	modification to the Disclosure Schedule made or purported to have been made
after the date of this Agreement);
	 
	 	(c)	 	any breach of any covenant or obligation of a Selling
Shareholder in this Agreement;
	 
	 	(d)	 	any Transferred Real Property or any past, current or future
use, ownership or transfer of any Transferred Real Property or any claim of any
nature relating to any Transferred Real Property or any such use, ownership or
transfer, including any Liability which arises from or as a result of, or is
connected with: (i) the presence of any Materials of Environmental Concern at
any Transferred Real Property; or (ii) the generation, manufacture, production,
transportation, importation, use, treatment, refinement, processing, handling,
storage, discharge, release or disposal of any Materials of Environmental
Concern (whether lawfully or unlawfully) by or on behalf of any of the Acquired
Companies on or at any Transferred Real Property; provided, however, that,
except to the extent provided in the Lease-Back Agreement, the obligations of
the Selling Shareholders specified in this Section 10.2(d) shall not subsist
with regard to Damages which arise or result from actions taken by any Acquired
Company after the Closing in connection with the operation by such Acquired
Company of its business under the Lease-Back Agreement;
	 
	 	(e)	 	any Liability for Taxes which arises from or as a result of, or
is connected with: (i) the activities or business of any of the Acquired
Companies on or prior to the Closing Date which are not paid prior to the
Closing, other than Taxes for calendar year 2007 and 2008 until the Closing to
the extent that such Taxes have been (or are) incurred in the ordinary course
of business and the deadline for the payment of such Taxes has not passed; or
(ii) the transfer of the Acquired Patents pursuant to the IP Transfer Agreement
or the transfer of the Transferred Real Property pursuant to the Real Property
Transfer Agreement; or
	 
	 	(f)	 	any Legal Proceeding relating to any breach or alleged breach
or any other matter of the type referred to in clause “(a),” “(b),” “(c),”
“(d)” or “(e)” above (including any Legal Proceeding commenced by any
Indemnitee for the purpose of enforcing any of its rights under this Section
10).

	 	10.3	 	Limitations; Exclusivity.

	 	(a)	 	Subject to Section 10.3(d), the Indemnitors shall not be
required to make any payment pursuant to Section 10.2(a) or 10.2(b) or 10.2(f)
(to the extent related to any of the matters referred to in Section 10.2(a) or
10.2(b)) for any inaccuracy in or breach of any representation or warranty in
this Agreement, other than the Specified Representations, until such time as
the total amount of all Damages (including the Damages arising from such
inaccuracy or breach and all other Damages arising from any other inaccuracies
or breaches of any representations or warranties) that have been suffered or
incurred by any one or more of the Indemnitees, or to which any one or more of
the Indemnitees has or have otherwise become subject, exceeds €750.000,00 in
the aggregate. If the total amount of such Damages exceeds €750.000,00 in the
aggregate, then the Indemnitees shall be entitled to be indemnified against and
paid and reimbursed for the amount of such Damages in excess of €750.000,00.

40

 

	 	(b)	 	Subject to Section 10.3(d), recourse by the Indemnitees to the
cash and other property, if any, pursuant to the Escrow Agreement shall be the
Indemnitees’ sole and exclusive remedy for Damages resulting from the matters
referred to in Section 10.2.

	 	(c)	 	Except in the case of intentional misrepresentation or fraud,
the Indemnitors shall not be required to make any payment pursuant to Section
10.2 in relation to the matters specified in Section 10.2(e) until such time as
the total amount of all Damages that have been suffered or incurred by the
Indemnitees in relation to such matters, or to which any one or more of the
Indemnitees has or have otherwise became subject, exceeds €100.000,00 in the
aggregate. If the total amount of such Damages exceeds €100.000,00 in the
aggregate, then the Indemnitees shall be entitled to be indemnified against and
reimbursed for the entire amount of such Damages, and not merely the portion of
such Damages exceeding €100.000,00.

	 	(d)	 	The limitations set forth in Sections 10.3(a) and 10.3(b) shall
not apply: (i) in the case of intentional misrepresentation or fraud; (ii) to
the Specified Representations; (iii) in case of breach of any covenants or
obligations contained in Sections 2, 5.2, 5.4, 5.5, 6, 10, 11 or 12; (iv) to
the matters referred to in Sections 10.2(d) and 10.2(e); or (v) to the matters
referred to in Section 10.2(f) (to the extent related to any of the matters
referred to in clause “(iii)” of this sentence or to Sections 10.2(d) or
10.2(e)). For the avoidance of doubt, the Parties acknowledge that, subject to
this Section 10.3(d), except in the case of intentional misrepresentation or
fraud or with respect to the Specified Representations, the Selling
Shareholders’ obligations pursuant to Section 10.2(a) or 10.2(b) or 10.2(f) (to
the extent related to any of the matters referred to in Section 10.2(a) or
10.2(b)) shall in no event exceed €22.000.000,00.

	 	(e)	 	For the avoidance of doubt, the Parties acknowledge that the
Selling Shareholders shall not be required to make any payment pursuant to
Section 10.2 in relation to: (i) Damages which arise from or as a result of the
matter described in Part 3.9(f) of the Disclosure Schedule; and (ii) except in
the case of intentional misrepresentation or fraud, any amount that becomes due
to any customer of the Acquired Companies to the extent that such amount
results solely from the delay in the delivery of an Acquired Company Offering
to such customer.

	 	10.4	 	Defense of Third Party Claims. In the event of the assertion or commencement
by any Person of any claim or Legal Proceeding with respect to which any Indemnitor may
become obligated to hold harmless, indemnify, pay or reimburse any Indemnitee pursuant
to Section 10, the Purchaser shall have the right, at its election, to proceed with the
defense of such claim or Legal Proceeding on its own with counsel reasonably
satisfactory to the Selling Shareholders. If the Purchaser so proceeds with the
defense of any such claim or Legal Proceeding:

	 	(a)	 	subject to the other provisions of Section 10, all reasonable
expenses relating to the defense of such claim or Legal Proceeding shall be
borne and paid exclusively by the Indemnitors;

	 	(b)	 	each Indemnitor shall make available to the Purchaser any
documents and materials in his possession or control that may be necessary to
the defense of such claim or Legal Proceeding; and

41

 

	 	(c)	 	the Purchaser shall have the right to settle, adjust or
compromise such claim or Legal Proceeding; provided, however, that if the
Purchaser settles, adjusts or compromises any such claim or Legal Proceeding
without the consent of the Selling Shareholders, such settlement, adjustment or
compromise shall not be conclusive evidence of the amount of Damages incurred
by the Indemnitee in connection with such claim or Legal Proceeding (it being
understood that if the Purchaser requests that the Selling Shareholders consent
to a settlement, adjustment or compromise, the Selling Shareholders shall not
unreasonably withhold or delay such consent).

	 	 	 	The Purchaser shall give the Selling Shareholders prompt notice of the commencement
of any such Legal Proceeding against the Purchaser or any of the Acquired Companies
after the Closing Date; provided, however, that any failure on the part of the
Purchaser to so notify the Selling Shareholders shall not limit any of the
obligations of the Indemnitors under Section 10 (except to the extent such failure
materially prejudices the defense of such Legal Proceeding). If the Purchaser does
not elect to proceed with the defense of any such claim or Legal Proceeding, the
Selling Shareholders may proceed with the defense of such claim or Legal Proceeding
with counsel reasonably satisfactory to the Purchaser; provided, however, that the
Selling Shareholders may not settle, adjust or compromise any such claim or Legal
Proceeding without the prior written consent of the Purchaser (which consent may not
be unreasonably withheld or delayed).
	 
	 	10.5	 	Indemnification by the Purchaser. The Purchaser shall hold harmless and
indemnify the Selling Shareholders from and against, and shall pay and reimburse the
Selling Shareholders for, any Damages which are suffered or incurred by any of the
Selling Shareholders (regardless of whether or not such Damages relate to any
third-party claim) and which arise from or as a result of, or are connected with: (a)
any inaccuracy in or breach of any representation or warranty made by the Purchaser in
this Agreement; and (b) any breach of any covenant or obligation of the Purchaser in
this Agreement.

	11.	 	Actions After Closing 

	 	11.1	 	Registration of IP. Following the Closing, the Selling Shareholders shall
provide reasonable cooperation to the Purchaser for any notification or submission to
be made before competent authorities with respect to the assignment to the Company, the
Purchaser or its nominee of Acquired Company IP, as well as to all authorizations
relating to the Company’s manufacturing site.

	 	11.2	 	Transition. Following the Closing, the Selling Shareholders shall provide
reasonable cooperation and collaborate with the Purchaser and with the Company to
facilitate a smooth transition of all employees and consultants.

	12.	 	Miscellaneous Provisions

	 	12.1	 	Further Assurances. The Purchaser shall execute and cause to be delivered to
the Selling Shareholders such instruments and other documents, and shall take such
other actions, as the Selling Shareholders may reasonably request (prior to, at or
after the Closing) for the purpose of carrying out or evidencing any of the
Contemplated Transactions. Each of the Selling Shareholders shall execute and cause to
be delivered to the Purchaser (and each of the Selling Shareholders shall ensure that
each Acquired Company executes and causes to be delivered to the Purchaser) such
instruments and other documents, and shall take such other actions (and each of the
Selling Shareholders

42

 

	 	 	 	shall ensure that each Acquired Company takes such other actions), as the Purchaser
may reasonably request (prior to, at or after the Closing) for the purpose of
carrying out or evidencing any of the Contemplated Transactions.
	 
	 	12.2	 	Fees and Expenses. Except as otherwise expressly provided in other Sections to
this Agreement, the Escrow Agreement or Schedule 12.7(c), each Party shall bear
and pay all fees, costs and expenses that have been incurred or that are incurred in
the future by such Party in connection with the Contemplated Transactions, including
all fees, costs and expenses incurred by such Party in connection with or by virtue of:
(a) the negotiation, preparation and review of the Transactional Agreements; (b) the
preparation and submission of any filing or notice required to be made or given in
connection with any of the Contemplated Transactions, and the obtaining of any Consent
required to be obtained in connection with any of such transactions; and (c) the
consummation of the Contemplated Transactions (it being understood that the Selling
Shareholders shall bear and pay all Acquired Company Transaction Expenses).
	 
	 	12.3	 	Attorneys’ Fees. If any lawsuit relating to this Agreement or the enforcement
of any provision of this Agreement is brought against any Party, the prevailing party
shall be entitled to recover reasonable attorneys’ fees, costs and disbursements (in
addition to any other relief to which the prevailing party may be entitled).
	 
	 	12.4	 	Notices. Any notice or other communication required or permitted to be
delivered to any Party under this Agreement shall be in writing and shall be deemed
properly delivered, given and received: (a) when delivered by hand; (b) on the day sent
by facsimile provided that the sender has received confirmation of transmission as at
or prior to 5:00 p.m. local time of the recipient on such day; (c) the first business
day after sent by facsimile (to the extent that the sender has received confirmation of
transmission after 5:00 p.m. local time of the recipient on the day sent by facsimile);
or (d) the third business day after sent by recorded delivery mail or by courier or
express delivery service, in any case to the address or facsimile telephone number set
forth beneath the name of such Party below (or to such other address or facsimile
telephone number as such Party shall have specified in a written notice given to the
other Parties):
	 
	 	 	 	If to Purchaser:
	 
	 	 	 	Applied Materials, Inc.

2881 Scott Boulevard, M/S 2064

Santa Clara, CA 95050

Attention: Joseph Sweeney, Senior Vice President, General

Counsel and Corporate Secretary

Facsimile: (408) 563-4635
	 
	 	 	 	and to:
	 
	 	 	 	Applied Materials, Inc.

3050 Bowers Avenue, M/S 0105

Santa Clara, CA 95054

Attention: Greg Psihas, Vice President, Mergers & Acquisitions

Facsimile: (408) 986-7260

43

 

	 	 	 	If to the Selling Shareholders:
	 
	 	 	 	Finanziaria Baccini S.r.l.

31100 Treviso, Sottoportico Buranelli 27

Attention: Mrs. Elisa Baccini

Facsimile: +0039 0422 583033

	 
	 	 	 	and to:
	 
	 	 	 	Advisa S.r.l.

P.za Filodrammatici 3

31100 Treviso

Fax: +0039 0422 574204

Attention: Mr. Dino Guglielmin

Facsimile: +0039 0422 574204
	 
	 	12.5	 	Headings. The bold-faced headings contained in this Agreement are for
convenience of reference only, shall not be deemed to be a part of this Agreement and
shall not be referred to in connection with the construction or interpretation of this
Agreement.
	 
	 	12.6	 	Counterparts and Exchanges by Electronic Transmission or Facsimile. This
Agreement may be executed in several counterparts, each of which shall constitute an
original and all of which, when taken together, shall constitute one agreement. The
exchange of a fully executed Agreement (in counterparts or otherwise) by electronic
transmission or facsimile shall be sufficient to bind the Parties to the terms and
conditions of this Agreement.
	 
	 	12.7	 	Governing Law; Dispute Resolution.

	 	(a)	 	This Agreement shall be construed in accordance with, and
governed in all respects by, the internal laws of the Italian Republic (without
giving effect to principles of conflicts of laws).

	 	(b)	 	Except as otherwise provided in the Escrow Agreement or in
Section 12.7(c), any dispute relating to this Agreement or the enforcement of
any provision of this Agreement (“Arbitrable Dispute”) shall be
resolved under the International Chamber of Commerce (“ICC”) ADR Rules;
provided, however, that in all events, the provisions contained herein shall
govern over any conflicting rules which may now or hereafter be contained in
the ADR Rules. In case the Arbitrable Dispute has not been settled pursuant to
the ICC ADR Rules within 45 days following the filing of a Request for ADR or
within such other period of time as the Parties may agree in writing, it shall
be finally settled under the Rules of Arbitration of the ICC. Any such
Arbitration will be conducted before a single arbitrator. The arbitrator shall
be mutually agreed upon by the Purchaser and the Selling Shareholders. In the
event the Purchaser and the Selling Shareholders are unable to agree on such
arbitrator within 20 days following submission of the dispute to the ICC by one
of the Parties, the ICC shall have the authority to select an arbitrator. Seat
of the arbitration shall be Geneva, Switzerland, and the language shall be
English. No discovery other than an exchange of relevant documents may occur
in any arbitration commenced under this Agreement. The Purchaser and the
Selling Shareholders agree to act in good faith to promptly exchange the
relevant documents. The final decision of the arbitrator will

44

 

	 	 	 	constitute a final, conclusive and non-appealable determination of the issue
in question, binding upon the Selling Shareholders, the Indemnitors and the
Purchaser. The Purchaser and the Selling Shareholders will each pay 50% of
the initial compensation to be paid to the arbitrator in any such arbitration
and 50% of the costs of transcripts and other normal and regular expenses of
the arbitration proceedings; provided, however, that the prevailing party in
any arbitration will be entitled to an award of attorneys’ fees and costs and
reimbursement for costs of arbitration (it being understood that the
arbitrator shall determine the identity of the prevailing party and the
amount of fees and costs to which such prevailing party is entitled).
	 
	 	(c)	 	Any claim for indemnification, payment or reimbursement
pursuant to Section 10 (and any other claim for a monetary remedy, such as in
the case of a claim based upon intentional misrepresentation or fraud, relating
to this Agreement after the Closing) shall be brought and resolved exclusively
in accordance with Schedule 12.7(c) (it being understood that, for the
avoidance of doubt, nothing in this Section 12.7 or elsewhere in this Agreement
shall prevent the Purchaser or the Selling Shareholders from seeking
preliminary injunctive relief from an Italian court at any time under article
from 669-bis to 700 of the Italian Civil Procedure Code).
	 
	 	(d)	 	Disputes which, under Italian Law, are not deemed to be
arbitrable shall be submitted exclusively and irrevocably in Courts located in
the Italian Republic.

	 	12.8	 	Successors and Assigns; Guarantee. This Agreement shall be binding upon: (a)
each of the Selling Shareholders and his or its personal representatives, executors,
administrators, estates, heirs, successors and assigns (if any); and (b) the Purchaser
and its successors and assigns (if any). This Agreement shall inure to the benefit of:
(i) the Selling Shareholders; (ii) the Purchaser; (iii) the other Indemnitees; and
(iv) the respective successors and assigns (if any) of the foregoing. The Purchaser
may freely assign any or all of its rights or obligations under this Agreement
(including its indemnification rights under Section 10), in whole or in part, without
obtaining the consent or approval of any other Party or of any other Person: (x) after
the Closing Date, to any other Person; or (y) at any time before or after the Closing
Date to any Affiliate of the Purchaser, including to an Affiliate who is its nominee
pursuant to Article 1401 of the Italian Civil Code. If the Purchaser assigns any or
all of its obligations under this Agreement to an Affiliate of the Purchaser or to any
other Person (or designates a nominee pursuant to Article 1401 of the Italian Civil
Code), the Purchaser shall be jointly and severally liable with such Affiliate or other
Person for the full performance of all such obligations.

	 	12.9	 	Remedies Cumulative; Specific Performance. The rights and remedies of the
Parties shall be cumulative (and not alternative). The Parties agree that, in the
event of any breach or threatened breach by any Party of any covenant, obligation or
other provision set forth in this Agreement, for the benefit of any other Party, such
other Party shall be entitled (in addition to any other remedy that may be available to
it pursuant to this Agreement) to: (a) an order of specific performance to enforce the
observance and performance of such covenant, obligation or other provision; and (b)
seek preliminary injunctive relief from an Italian court at any time under article from
669-bis to 700 of the Italian Civil Procedure Code aimed at restraining such breach or
threatened breach.

	 	12.10	 	Waiver. No failure on the part of any Person to exercise any power, right,
privilege or remedy under this Agreement, and no delay on the part of any Person in
exercising any

45

 

	 	 	 	power, right, privilege or remedy under this Agreement, shall operate as a waiver of
such power, right, privilege or remedy; and no single or partial exercise of any
such power, right, privilege or remedy shall preclude any other or further exercise
thereof or of any other power, right, privilege or remedy. No Person shall be
deemed to have waived any claim arising out of this Agreement, or any power, right,
privilege or remedy under this Agreement, unless the waiver of such claim, power,
right, privilege or remedy is expressly set forth in a written instrument duly
executed and delivered on behalf of such Person; and any such waiver shall not be
applicable or have any effect except in the specific instance in which it is given.
	 
	 	12.11	 	Amendments. This Agreement may not be amended, modified, altered or
supplemented other than by means of a written instrument duly executed and delivered on
behalf of all Parties.
	 
	 	12.12	 	Severability. In the event that any provision of this Agreement, or the
application of any such provision to any Person or set of circumstances, shall be
determined to be invalid, unlawful, void or unenforceable to any extent, the remainder
of this Agreement, and the application of such provision to Persons or circumstances
other than those as to which it is determined to be invalid, unlawful, void or
unenforceable, shall not be impaired or otherwise affected and shall continue to be
valid and enforceable to the fullest extent permitted by law.
	 
	 	12.13	 	Parties in Interest. Except for the provisions of Section 10, none of the
provisions of this Agreement is intended to provide any rights or remedies to any
Person other than the Parties and their respective successors and assigns (if any).
	 
	 	12.14	 	Entire Agreement. This Agreement and the other agreements referred to herein
set forth the entire understanding of the Parties relating to the subject matter hereof
and thereof and supersede all prior agreements and understandings among or between any
of the Parties relating to the subject matter hereof and thereof; provided, however,
that the Confidentiality Agreement shall not be superseded by this Agreement and shall
remain in effect in accordance with its terms until the earlier of: (a) the Closing; or
(b) the date on which such Confidentiality Agreement is terminated in accordance with
its terms.
	 
	 	12.15	 	Disclosure Schedule. The Disclosure Schedule shall be arranged in separate
parts corresponding to the numbered and lettered sections contained herein permitting
such disclosure, and the information disclosed in any numbered or lettered part shall
be deemed to relate to and to qualify only the particular representation or warranty
set forth in the corresponding numbered or lettered section herein permitting such
disclosure.
	 
	 	12.16	 	Construction.

	 	(a)	 	For purposes of this Agreement, whenever the context requires:
the singular number shall include the plural, and vice versa; the masculine
gender shall include the feminine and neuter genders; the feminine gender shall
include the masculine and neuter genders; and the neuter gender shall include
the masculine and feminine genders.

	 	(b)	 	The Parties agree that any rule of construction to the effect
that ambiguities are to be resolved against the drafting Party shall not be
applied in the construction or interpretation of this Agreement.

46

 

	 	(c)	 	As used in this Agreement, the words “include” and “including,”
and variations thereof, shall not be deemed to be terms of limitation, but
rather shall be deemed to be followed by the words “without limitation.”

	 	(d)	 	Except as otherwise indicated, all references in this Agreement
to “Sections,” “Schedules” and “Exhibits” are intended to refer to Sections of
this Agreement and Schedules and Exhibits to this Agreement.

	 	12.17	 	Official Agreement. It is hereby agreed and clarified that the English
version of this Agreement and the other Transactional Agreements shall be the official
version of this Agreement and all such other Transactional Agreements, notwithstanding
any Italian or other translations of such agreements or documents.

* * * *

47

 

The Parties have caused this Agreement to be executed and delivered as at the date first written
above.

	 	 	 	 	 
	 	Applied Materials, Inc.,

a Delaware corporation

 	 
	 	By:  	/s/ Mark Pinto
 	 
	 	 	Name:  	Mark Pinto 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	Selling Shareholders:

Finanziaria Baccini Srl

 	 
	 	By:  	/s/ Gisulfo Baccini
 	 
	 	 	Title:  Presidente
 	 
	 	 	Signature: /s/ Gisulfo Baccini 

	 
	 	 	
Gisulfo Baccini                      	 

48

 

	 	 	 	 	 

Exhibit A

CERTAIN DEFINITIONS

For purposes of the Agreement (including this Exhibit A):

Acquired Companies. “Acquired Companies” shall mean the Company and its Subsidiary.

Acquired Company Contract. “Acquired Company Contract” shall mean any Contract: (a) to
which any of the Acquired Companies is a party; (b) by which any of the Acquired Companies or any
of its assets is or may become bound or under which any of the Acquired Companies has, or may
become subject to, any obligation; or (c) under which any of the Acquired Companies has or may
acquire any right or interest.

Acquired Company Employee. “Acquired Company Employee” shall mean any Person who is or was
an employee (whether regular or temporary, direct hire or leased), director, contractor or
consultant of or to any of the Acquired Companies or becomes, at any time during the Pre-Closing
Period, an employee (whether regular or temporary, direct hire or leased), director or consultant
of or to any of the Acquired Companies.

Acquired Company IP. “Acquired Company IP” shall mean all: (a) Intellectual Property
Rights used to provide, sell, operate, or maintain, or necessary to provide, sell, operate, or
maintain, any Acquired Company Offering; and (b) Intellectual Property Rights in which any of the
Acquired Companies has (or purports to have) an ownership interest or an exclusive license or
similar exclusive right. For the avoidance of doubt it is hereby clarified that Acquired Company
IP includes the Acquired Patents and the other Assigned IP Rights.

Acquired Company IP Contract. “Acquired Company IP Contract” shall mean any Contract to
which any of the Acquired Companies is or was a party or by which any of the Acquired Companies is
or was bound or under which any of the Acquired Companies has or may acquire any right, that
contains any assignment or license of, or any covenant not to assert or enforce, any Intellectual
Property Right or that otherwise relates to any Acquired Company IP or any Intellectual Property
developed by, with or for any of the Acquired Companies or the provision of any Acquired Company
Offering.

Acquired Company Offering. “Acquired Company Offering” shall mean each product or service
developed, marketed, sold, offered, provided, or supported at any time by or on behalf of any of
the Acquired Companies, and any product or service currently under development by any of the
Acquired Companies.

Acquired Patents. “Acquired Patents” shall mean those patents and patent applications
listed in Schedule 3.9(d).

Acquired Company Transaction Expenses. “Acquired Company Transaction Expenses” shall mean
the amount of all fees, costs and expenses of type described in Section 12.2 of the Agreement that
have been incurred or that are incurred by any of the Acquired Companies in connection with the
Contemplated Transactions, including any fees, costs or expenses paid or payable to the Company’s
outside legal counsel or to any financial advisor, accountant or other Person who performs or has
performed services for or on behalf of any of the Acquired Companies, or who was or is otherwise
entitled to any compensation from any of the Acquired Companies, in connection with the
Transactional Agreements or any of the Contemplated Transactions, that have not been paid by the
Selling Shareholders in their individual capacity prior to the Closing.

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Acquisition Transaction. “Acquisition Transaction” shall mean any transaction involving:

          (a) the sale, license or disposition of all or a material portion of any of the Acquired
Companies’ business or assets;

          (b) the issuance, disposition or acquisition of: (i) any capital stock or other equity
security of any of the Acquired Companies; (ii) any option, call, warrant or right (whether or not
immediately exercisable) to acquire any capital stock, unit or other equity security of any of the
Acquired Companies; or (iii) any security, instrument or obligation that is or may become
convertible into or exchangeable for any capital stock, unit or other equity security of any of the
Acquired Companies; or

          (c) any merger, consolidation, business combination, reorganization or similar transaction
involving any of the Acquired Companies.

Affiliate. “Affiliate” shall mean, with respect to any Person, any other Person that as at
the date of the Agreement or as at any subsequent date, directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with such specific Person.

Agreement. “Agreement” shall mean the Share Purchase Agreement to which this Exhibit
A is attached (including the Disclosure Schedule), as it may be amended from time to time.

Assigned IP Rights. “Assigned IP Rights” shall have the meaning set forth in the IP
Transfer Agreement.

BKM. “BKM” shall mean any “best known method” (as such term is commonly understood in the
semiconductor equipment industry) for any process used to service, test, clean, refurbish, or
otherwise maintain any Acquired Company Offering.

Confidentiality Agreement. “Confidentiality Agreement” shall mean that certain Bilateral
Confidentiality Agreement, dated August 10, 2007 between the Purchaser, the Company and the Selling
Shareholders .

Consent. “Consent” shall mean any approval, consent, ratification, permission, waiver or
authorization (including any Governmental Authorization).

Contemplated Transactions. “Contemplated Transactions” shall mean: (a) the execution and
delivery of the respective Transactional Agreements; and (b) all of the transactions contemplated
by the respective Transactional Agreements, including: (i) the Share Purchase; (ii) the performance
by the Selling Shareholders and the Purchaser of their respective obligations under the
Transactional Agreements, and the exercise by the Selling Shareholders and the Purchaser of their
respective rights under the Transactional Agreements; (iii) the IP Transfer; and (iv) the Real
Property Transfer.

Contract. “Contract” shall mean any written, oral or other agreement, contract,
subcontract, purchase order, lease, understanding, arrangement, instrument, note, warranty,
insurance policy, benefit plan or legally binding commitment or undertaking of any nature.

Damages. “Damages” shall include, without duplication, any loss, damage, injury,
Liability, claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including
reasonable attorneys’ fees), charge, cost or expense of any nature (it being understood that in
determining Damages recoverable by an Indemnitee, an arbitrator may take into account any insurance
proceeds recovered by such Indemnitee and any increase in premiums or other costs incurred (or to
be incurred) by such Indemnitee resulting from or relating to such recovery).

Encumbrance. “Encumbrance” shall mean any lien, pledge, hypothecation, charge, mortgage,
security interest, encumbrance, special privilege, usufruct, claim, infringement, expropriation
procedures by the public authority (whether actual or threatened), easement, right of way,
interference, option, right of first

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refusal, preemptive right, community property interest or restriction of any nature (including any
restriction on the transfer of any asset, any restriction on the receipt of any income derived from
any asset, any restriction on the use of any asset and any restriction on the possession, exercise
or transfer of any other attribute of ownership of any asset).

Entity. “Entity” shall mean any corporation (including any non-profit corporation),
general partnership, limited partnership, limited liability partnership, joint venture, estate,
trust, company (including any limited liability company or joint stock company), firm or other
enterprise, association, organization or entity.

Environmental Law. “Environmental Law” shall mean any Legal Requirement relating to
pollution or protection of human health or the environment (including ambient air, surface water,
ground water, land surface or subsurface strata), including any Legal Requirement relating to
emissions, discharges, releases or threatened releases of Materials of Environmental Concern, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
recycling, transport or handling of Materials of Environmental Concern.

Escrow Agent. “Escrow Agent” shall mean Citibank, N.A.

Escrow Agreement. “Escrow Agreement” shall mean that certain Escrow Agreement dated as at
the Closing Date by and among the Purchaser, the Selling Shareholders and the Escrow Agent
substantially in the form of Exhibit D.

Governmental Authorization. “Governmental Authorization” shall mean any: (a) permit,
license, certificate, franchise, permission, clearance, registration, qualification or
authorization issued, granted, given or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement; or (b) right under any Contract with any
Governmental Body.

Governmental Body. “Governmental Body” shall mean any: (a) nation, state, commonwealth,
province, territory, county, municipality, district or other jurisdiction of any nature; (b)
federal, state, regional, local, municipal, Italian or other non-U.S. or other government; or (c)
governmental or quasi-governmental authority of any nature (including any governmental division,
department, agency, commission, instrumentality, official, organization, unit, body or Entity and
any court or other tribunal).

Indemnitees. “Indemnitees” shall mean, without duplication, the following Persons: (a) the
Purchaser; (b) the Acquired Companies; (c) any nominee of the Purchaser pursuant to Article 1401 of
the Italian Civil Code; and (d) the respective successors and assigns of the Persons referred to in
clauses “(a)”, “(b)” and “(c)” above.

Intellectual Property. “Intellectual Property” shall mean algorithms, apparatus, BKMs,
databases, data collections, diagrams, formulae, inventions (whether or not patentable), know-how,
logos, marks (including brand names, product names, logos, and slogans), methods and processes
(including manufacturing methods, sales methodologies and processes, training methods and similar
methods and processes), proprietary information, protocols, recipes, schematics, specifications,
software, techniques, URLs, web sites, works of authorship and other forms of technology (whether
or not embodied in any tangible form and including all tangible embodiments of the foregoing, such
as instruction manuals, laboratory notebooks, prototypes, samples, studies and summaries).

Intellectual Property Rights. “Intellectual Property Rights” shall mean all rights of the
following types, which may exist or be created under the laws of any jurisdiction in the world: (a)
rights associated with works of authorship, including exclusive exploitation rights, copyrights and
moral rights; (b) trademark and trade name rights and similar rights; (c) trade secret rights; (d)
patent and industrial property rights;

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(e) other proprietary rights in Intellectual Property; and (f) rights in or relating to
registrations, renewals, extensions, combinations, divisions, and reissues of, and applications
for, any of the rights referred to in clauses “(a)” through “(e)” above.

Knowledge. An individual shall be deemed to have “Knowledge” of a particular fact or other
matter if: (a) such individual is actually aware of such fact or other matter; or (b) a prudent
individual should have known such fact or other matter under the circumstances. The Selling
Shareholders shall be deemed to have “Knowledge” of a particular fact or other matter if any
officer or director of any of the Acquired Companies has Knowledge of such fact or other matter.

Legal Proceeding. “Legal Proceeding” shall mean any action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, tax, investigative or appellate
proceeding), hearing, inquiry, audit, examination or investigation commenced, brought, conducted or
heard by or before, or otherwise involving, any court or other Governmental Body or any arbitrator
or arbitration panel.

Legal Requirement. “Legal Requirement” shall mean any federal, state, local, municipal,
Italian or other non-U.S. or other law, statute, constitution, principle of common law, resolution,
ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted,
promulgated, implemented or otherwise put into effect by or under the authority of any Governmental
Body.

Liability. “Liability” shall mean any debt, obligation, duty or liability of any nature,
regardless of whether such debt, obligation, duty or liability would be required to be disclosed on
a balance sheet prepared in accordance with Italian GAAP and regardless of whether such debt,
obligation, duty or liability is immediately due and payable.

Material Adverse Effect. “Material Adverse Effect” shall mean any effect, change,
development, event or circumstance that, considered together with all other effects, changes,
developments, events or circumstances, has had (or would reasonably be expected to have) a material
adverse and disruptive effect on: (a) the business, financial condition or financial performance of
the Acquired Companies, in each case taken as a whole; provided, however, that in no event shall
any of the following be deemed to constitute, nor shall any of the following be taken into account
in determining whether there has been or will be, a Material Adverse Effect: (i) any effect,
change, development, event or circumstance resulting from changes in general economic and/or
industry conditions anywhere in the world, including in locations in which the Acquired Companies
operate their business, in each case to the extent that such effects, changes, developments, events
or circumstances do not disproportionately impact the Acquired Companies; (ii) any effect, change,
development, event or circumstance resulting from acts of war, sabotage or terrorism; (iii) any
effect, change, development, event or circumstance resulting from earthquakes, hurricanes,
tornadoes or other natural disasters or similar events of force majeure; and (iv) any effect,
change, development, event or circumstance resulting from changes in applicable law, rule or
regulation; or (b) the right or ability of the Purchaser to vote, receive dividends with respect to
or otherwise exercise ownership rights with respect to any of the Shares.

Materials of Environmental Concern. “Materials of Environmental Concern” shall mean
chemicals, pollutants, contaminants, wastes, toxic substances, petroleum and petroleum products and
any other substance and matter in any state (solid, liquid, gaseous state) that is regulated by any
Environmental Law or that is otherwise considered by any Environmental Law or any Governmental Body
as a danger or potential danger to health, reproduction or the environment.

Off-Balance Sheet Arrangements. “Off-Balance Sheet Arrangements” shall mean any
transaction, agreement or other contractual arrangement to which an Entity unconsolidated with an
Acquired Company is a party and under which such Acquired Company has any: (a) obligation under any
guarantee contracts such as standby letters of credit, performance guarantees, indemnification
agreements, and keepwell

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agreements, whether or not recorded as a liability; (b) retained or contingent interests in assets
transferred to an unconsolidated entity; (c) obligations under derivative instruments that are
classified as equity; or (d) obligations under material variable interests in unconsolidated
entities that provide financing, liquidity, market risk or credit risk support to any of the
Acquired Companies, or engage in leasing, hedging or research and development services with any of
the Acquired Companies (it being understood that “Off-Balance Sheet Arrangements” shall not include
arrangements which are required under Italian generally accepted accounting principles to be
included on a balance sheet and are so included on the Most Recent Balance Sheet or the balance
sheet of the Subsidiary as at December 31, 2006).

Person. “Person” shall mean any individual, Entity or Governmental Body.

Registered IP. “Registered IP” shall mean all Intellectual Property Rights that are
registered, filed or issued under the authority of, with or by any Governmental Body, including all
patents, registered copyrights, registered trademarks and all applications for any of the
foregoing.

Related Party. “Related Party” shall mean: (a) each of the Selling Shareholders; (b) each
individual holding a direct or indirect equity interest in any Selling Shareholder that is an
Entity ; (c) each individual who is, or who has at any time been, an officer or director of any of
the Acquired Companies; (d) each member of the immediate family of each of the individuals referred
to in clauses “(a),” “(b)” and “(c)” above; and (e) any trust or other Entity (other than the
Company) in which any one of the individuals referred to in clauses “(a),” “(b),” “(c)” and “(d)”
above holds (or in which more than one of such individuals collectively hold), beneficially or
otherwise, a material voting, proprietary or equity interest.

Release. “Release” means any spilling, leaking, emitting, discharging, depositing,
escaping, leaching, dumping or other releasing into the environment or into a drain, sink or other
conveyance, whether intentional or unintentional.

Representatives. “Representatives” shall mean officers, directors, employees, agents,
attorneys, accountants, advisors and representatives.

Subsidiary. “Subsidiary” shall mean Baccini GmbH.

Specified Representations. “Specified Representations” shall mean: (a) the representations
and warranties contained in Sections 3.3(b) and 3.3(d); (b) the representations and warranties
contained in Section 3.13; and (c) the representations and warranties contained in the Closing
Certificate or the Disclosure Schedule and relating to the representations and warranties referred
to in clauses “(a)” or “(b)” of this sentence.

Tax. “Tax” shall mean any tax (including any income tax, regional value added tax,
franchise tax, service tax, capital gains tax, gross receipts tax, value-added tax, surtax, excise
tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax, property tax, business tax,
withholding tax or payroll tax), levy, assessment, tariff, duty (including any customs duty),
deficiency or fee, and any related charge or amount (including any fine, addition, penalty or
interest), imposed, assessed or collected by or under the authority of any Governmental Body or any
liability or obligation to with respect to the foregoing by virtue of any Contract or otherwise.

Tax Return. “Tax Return” shall mean any return (including any information return), report,
statement, declaration, estimate, schedule, notice, notification, form, election, certificate or
other document or information filed with or submitted to, or required to be filed with or submitted
to, any Governmental Body in connection with the determination, assessment, collection or payment
of any Tax or in connection with the administration, implementation or enforcement of or compliance
with any Legal Requirement relating to any Tax.

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Transactional Agreements. “Transactional Agreements” shall mean the Agreement and any and
all agreements, documents, certificates, opinions or instruments delivered or to be delivered
pursuant to or in connection with the Agreement, including: (a) the Real Property Transfer
Agreement; (b) the Lease-Back Agreement; (c) the IP Transfer Agreement; (d) the Escrow Agreement;
(e) the Non-Competition, Non-Solicitation and Confidentiality Agreements; (f) the Closing
Certificate; (g) the Acquisition Consideration Certificate; (h) the Disclosure Schedule; and (i)
the Employment Agreements.

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