Document:

Intellectual property assignment agreement

 Exhibit 10.2 
  
 EFFECTIVE AS OF 20 APRIL 2005 
  
 GETTY IMAGES (CAYMAN) LIMITED 
  
 - AND - 
  
 DIGITAL HOLDING AND LICENSING S.A. 
  
 ASSIGNMENT OF INTELLECTUAL 
 PROPERTY RIGHTS 

 THIS ASSIGNMENT is made with effect from 20 April 2005 
  
 BETWEEN:- 
  

	(1)	GETTY IMAGES (CAYMAN) LIMITED c/o M&C Corporate Services Limited, PO Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands (hereinafter
the “Buyer”); 

  

	(2)	DIGITAL HOLDING AND LICENSING S.A. of BP 122, Le Muveran, Villars-sur-Ollon, CH 1884, Switzerland (hereinafter “DHL”). 

  
 RECITALS 
  

	(A)	DHL is either the sole owner of all rights in, or exclusive licensee for royalty-free exploitation of, those images referred to in the schedule hereto (together the
“Images”). The DHL rights in the Images were either bought from Digital Vision Limited (“DVL”) in 2003 or acquired or created subsequently under the terms of a Commissioning and Licensing Agreement between the
parties dated 12 June 2003 (the “Commissioning Agreement”). 

  

	(B)	DHL is willing to assign its rights in the Images, and the underlying licences granted to DHL, to the Buyer on the terms set out below. 

  
 THE PARTIES AGREE AS FOLLOWS:- 
  

	1.	In consideration of the sum of US$ 10,000,000 to be paid by the Buyer to DHL, DHL does HEREBY ASSIGN and transfer to the Buyer with full title guarantee all its right, title and
interest in the Images, including those subsisting in the format the images are presented in, the catalogue names they are sold under (as described in the schedule), any model and property releases (“Model Releases”) in respect of the
Images, the benefit of any underlying licences (the “Licences”) to DVL or DHL granted by a photographer, the full benefit of the Commissioning Agreement (subject to its burden) and the benefit of all licences granted by DHL to DVL (all
such rights and benefits being hereafter called the “Assigned Rights”) including the right to sue for damages and other remedies in respect of any infringements of the Assigned Rights prior to the date of this Assignment. DHL shall invoice
the Buyer for the purchase price for the Assigned Rights on the date hereof and such price reflects DHL’s agreement herein to commute and waive all its entitlement to the receipt of further royalties from DVL in respect of future sales of
Images which shall be due to the Buyer. Payment of US$9,000,000 shall be made immediately following signature hereof to the following account: 

  

			
	Bank:	    	Banque Cantonale Vaudoise, 1001 Lausanne, Switzerland
	Name of account:	    	Digital Holding & Licensing SA
	Account number:	    	C5057.14.08
	IBAN:	    	CH26 0076 7001 C505 7140 8
	Swift code:	    	BCVLCH2LXXX
	Bank clearing:	    	767

	    	with the balance being paid to the same account no later than 5 working days following DHL providing evidence reasonably satisfactory to the Buyer that those royalty payments due
from DHL to photographers in respect of sales in the first quarter of 2005 have been made. The Buyer shall procure that DVL calculates such amounts and gives DHL all reasonable assistance (in the same manner as before the date hereof) in making such
payments. The Buyer shall, upon payment of the principal sum, pay DHL interest from the date hereof until actual payment at the rate that Getty Images Inc would reasonably have been able to receive on deposits of that amount for the same period. If
the photographers are not paid by DHL within 14 days of the due date the Buyer may apply the retention in paying them on DHL’s behalf and shall account to DHL for this and promptly pay DHL any remaining balance. 

  

	2.	DHL warrants that the Images are all those which have been created for DHL, or acquired or licensed directly or indirectly by DHL at any time in connection with its relationship
with DVL and shall do and execute or (so far as reasonably within its control) procure that there shall be done and executed all such documents, deeds, matters, acts and things as the Buyer may at any time reasonably require properly to vest the
Assigned Rights or any one or more of them in the Buyer. 

  

	3.	DHL further warrants that, save as disclosed by it prior to the execution of this Assignment: 

  

	 	(a)	the Assigned Rights are legally and beneficially vested in DHL; 

  

	 	(b)	so far as DHL is aware the Assigned Rights are not being infringed or attacked or opposed, or the subject of any claim for ownership or compensation by any person;

  

	 	(c)	the Assigned Rights are not subject to any licence, waiver, charge, contingent assignment or agreement or obligation or encumbrance of any sort in favour of any third party;

  

	 	(d)	so far as DHL is aware the Images do not infringe any rights belonging to third parties; and 

  

	 	(e)	so far as DHL is aware neither DHL nor the other parties to the Licences are in breach of such Licences. 

  
 DHL shall not be liable for any claim under this Agreement (a “Claim”) unless written notice of the Claim has been
given to it by or on behalf of the Buyer as soon as reasonably practicable after the Claim has arisen or as soon as reasonably practicable after the Buyer or DVL has become aware of the circumstances giving rise to a Claim and in any event written
notice in respect of any Claim, must be given on or before the second anniversary hereof. 
  
 The written notice of the Claim shall specify in reasonable detail the nature of the Claim, the circumstances giving rise to it and the Buyer’s reasonable estimate of the amount claimed. 
  
 Any Claim shall be deemed to be withdrawn (if it has not been previously
satisfied, settled or withdrawn) unless legal proceedings in respect thereof have been commenced within nine months of the date of the written notice of the Claim served pursuant to this Agreement. 
  
 The aggregate liability of DHL for all Claims shall be limited to
US$10,000,000. 
  

 2 

 DHL shall not be liable for any Claim unless the aggregate amount of such Claim, when taken together with
the amount of all other Claims, is an amount equal to or greater than US$25,000 (the “Threshold”) in which event DHL shall, subject to the other limits contained in this Agreement, be liable for the full amount of such Claims (and
not just the amount by which such aggregate amount exceeds the Threshold). For the avoidance of doubt, one or more Claims arising out of the same cause of action or the same circumstances will exceed the Threshold if when aggregated together their
total value exceeds the Threshold. 
  
 DHL shall not be liable
for any Claim which does not exceed US $1,000 (“De Minimis Claim”). 
  
 For the purposes of calculating Claims counting towards the Threshold and/or any De Minimis Claim there shall be excluded from any Claim the amount of any costs, expenses and other liabilities incurred or to be
incurred by the Buyer in connection with the making of any such Claim. 
  
 DHL shall not be liable for any Claim to the extent that the fact, matter, event or circumstance giving rise to such Claim is remediable and is remedied by or at the expense of DHL within 40 Business Days of the date on which written notice
of such Claim is given to DHL setting out the Claim in sufficient detail for DHL to be able to remedy it. For the avoidance of doubt, DHL shall be liable for any damage, loss or expenses suffered by the Buyer as a result of the breach
notwithstanding it is remedied, but only to the extent that DHL, in remedying the breach concerned, has failed to make good all loss or damage claimable by the Buyer in respect of the breach. 
  
 The Buyer shall (and shall procure that DVL shall) take all reasonable
action to mitigate any loss suffered by it or DVL which will or is reasonably likely to result in a claim against DHL and, without limiting the generality of the foregoing shall, in respect of any right of recovery (whether by payment, discount,
credit, relief or otherwise) which could or might be made by it or DVL against any third party: 
  

	 	(i)	as soon as reasonably practicable give written notice and reasonable details of such right of recovery to DHL; 

  

	 	(ii)	take reasonable steps to maximise the amount recovered in respect of such right of recovery; and 

  

	 	(iii)	not withdraw, settle or compromise such right of recovery without the prior written consent of DHL (such consent not to be unreasonably delayed or withheld).

  
 The foregoing paragraph is subject to the Buyer
being indemnified to its reasonable satisfaction by DHL in respect of all losses, claims, demands, costs and reasonable expenses (including reasonable legal costs) which may be incurred by the Buyer or DVL by reason of the matters required of it or
them under such paragraph. 
  

	4.	The Buyer acknowledges that many of the Assigned Rights derive from Licences. There is no guarantee that any Licence will be renewed on expiry of its current term. If any of the
Licences cannot be transferred to the Buyer except by assignment made with the consent of a third party or by novation, the following provisions shall apply: 

  

	 	(a)	this agreement shall not constitute an assignment of the Licence if the assignment or attempted assignment would constitute a breach of the Licence and each party shall make all
reasonable efforts to obtain the necessary consent to the assignment, or achieve the novation of, the Licence; 

  

 3 

	 	(b)	until the consent or novation is obtained DHL will hold such Licence upon trust for the Buyer and deal with the same as the Buyer shall reasonably direct and for the avoidance of
doubt in the event that DHL is holding any monies due to it under any Licence it shall hold such monies on trust for the Buyer to the extent that they relate to any period from the date hereof; and 

  

	 	(c)	until the consent or novation is obtained, the Buyer shall perform the obligations (including, without limitation, payment obligations) of DHL thereunder: 

 

	 	(i)	(if such sub-contracting is permissible and lawful under the relevant Licence) as sub-contractor to DHL; and 

  

	 	(ii)	where sub-contracting is not permissible, as agent for DHL; 

  
 and shall indemnify DHL against all liabilities, and reasonable costs and expenses arising in respect of such Licences after the execution of this
Assignment; 
  

	 	(d)	DHL shall give all reasonable assistance to the Buyer to enable it to enforce the rights of DHL under the Licences and shall at all times act with regard to the Licences in
accordance with the Buyer’s reasonable instructions from time to time; and 

  

	 	(e)	DHL shall not take any action in respect of the Licences without the prior written approval of the Buyer (such approval not to be unreasonably withheld or delayed).

  

	5.	The parties agree that: 

  

	 	(a)	The Buyer shall perform promptly and in full the obligations (including, without limitation, payment obligations) of DHL under each of the agreements comprised in the Assigned
Rights, insofar as they relate to periods commencing from the date hereof and shall hold DHL fully indemnified against any claim, action, loss, damage or cost incurred or suffered as a consequence of the Buyer failing to perform any such obligations
when due. DHL shall promptly following the date hereof provide the Buyer with such information as is required for the Buyer to perform its obligations under this clause. 

  

	 	(b)	DHL shall hold the Buyer fully indemnified against any claim, action, loss, damage or cost incurred or suffered as a consequence of DHL failing to perform any obligations under the
Licences when due, insofar as they relate to periods prior to the date hereof. DHL shall ensure that photographers are paid when due under the Licences in respect of all such periods. The Buyer shall procure that DVL, as before the date hereof,
promptly provides sufficient information to DHL to permit the payments to photographers to be properly calculated and made. In respect of all further royalty payments due to DHL, DVL shall be entitled to withhold an amount equivalent to the sum due
from DHL to photographers in respect of sales represented by those royalties and the Buyer will procure that those sums are expended, on behalf of DHL, in discharging DHL’s royalty liabilities in respect of those sales.

  

 4 

	 	(c)	In particular, the Buyer shall procure that DVL shall account to DHL and pay DHL when due for royalties accruing to DHL under the Assigned Rights in respect of periods prior to the
date hereof in accordance with the current practice set out in paragraph (d) below. 

  

	 	(d)	Current practice in respect of payment by DVL of royalties is as follows: monthly, a statement and full payment being made 45 days following month end. In addition, current practice
in respect of DVL invoicing for work in progress (i.e. images commissioned but not yet made available for commercial sale by DVL) is as follows: an invoice is rendered for images (the cost calculated consistently with pre-existing practice) when
they are first posted on the DVL web-site for sub-licensing to third parties. In this regard the Buyer accepts DHL’s representation that no DVL work in progress is presently due to be invoiced and that no invoices for such matters are
outstanding other than issued in January 2005, which are being paid by DHL in the ordinary course (in equal parts over three months). 

  

	6.	If any of the Model Releases cannot be transferred to the Buyer except by assignment made with the consent of a third party or by novation, the following provisions shall apply:

  

	 	(a)	this agreement shall not constitute an assignment of the Model Release if the assignment or attempted assignment would constitute a breach of the Model Release and each party shall
make all reasonable efforts to obtain the necessary consent to the assignment, or achieve the novation of, the Model Release; 

  

	 	(b)	until the consent or novation is obtained DHL will hold such Model Release upon trust for the Buyer and deal with the same as the Buyer shall reasonably direct; and

  

	 	(c)	until the consent or novation is obtained, the Buyer shall perform the obligations (including, without limitation, payment obligations) of DHL thereunder: 

 

	 	(i)	(if such sub-contracting is permissible and lawful under the relevant Model Release) as sub-contractor to DHL; and 

  

	 	(ii)	where sub-contracting is not permissible, as agent for DHL; 

  
 and shall indemnify DHL against all liabilities, and reasonable costs and expenses arising in respect of such Model Releases after the execution of this
Assignment; 
  

	 	(d)	DHL shall give all reasonable assistance to the Buyer to enable it to enforce the rights of DHL under the Model Releases and shall at all times act with regard to the Model Releases
in accordance with the Buyer’s reasonable instructions from time to time; and 

  

	 	(e)	DHL shall not take any action in respect of the Model Releases without the prior written approval of the Buyer (such approval not to be unreasonably withheld or delayed).

  

 5 

	7.	This Assignment is without prejudice to rights accrued and due prior to the date hereof, including the right of DHL to receive royalties or other payments under the licences as
calculated thereunder. These shall continue to be made when due in the ordinary course in respect of all periods up to termination of the licences as provided above. DHL confirms that other than in respect of such payments, there are no outstanding
claims by it against DVL, nor any facts or circumstances that will give rise to any claims. 

  

	8.	All sums due to be paid under this assignment are stated exclusive of VAT. The parties consider no VAT to be due or payable on this Assignment on the basis that it is an export sale
and shall co-operate with a view to achieving such VAT treatment. 

  

	9.	Except as provided below, DHL shall treat in confidence the confidential information it discloses to the Buyer in relation to the Licences and Images (“Confidential
Information”) and agrees not to disclose that Confidential Information to any other person or use any such Confidential Information for any purpose other than for the performance of its obligations under this agreement or as otherwise
authorised by the Buyer. 

  
 Any Confidential
Information may be disclosed by DHL to any governmental or other regulatory authority or body; and to any personnel of DHL who need to know the relevant Confidential Information; in each case to such extent only as is necessary to enable the proper
performance of this agreement or as is required by law or the regulatory authority or body, or to its professional advisers, subject to DHL using all reasonable endeavours to ensure that the person to whom it discloses Confidential Information keeps
the same confidential, including informing them of the confidential nature of the Confidential Information and DHL’s obligations hereunder, and requiring all such persons to agree to keep such information confidential. 
  
 Neither party shall (without the prior consent of the other party)
issue any press release or publish any other document or make any public statement or otherwise disclose to any person who is not a party to this agreement either the existence of this agreement or any of its provisions, or any of the matters
contemplated in this agreement. This clause shall not apply to: (a) any announcement or disclosure required by law or by any competent judicial or regulatory authority or by a recognised investment exchange; or (b) notice of assignment which is
given to any photographer in connection with this agreement or in connection with continued payment of royalties, in this latter case the parties shall co-operate in good faith in order to agree the content of any such announcement prior to its
being made. 
  

	10.	This agreement and the rights created hereunder shall not be directly or indirectly enforceable by any third party nor is it intended to benefit any third party.

  

	11.	This assignment (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this assignment or its formation) shall be governed
by and construed in accordance with English law. 

  

	12.	Each of the parties to this assignment irrevocably agrees that the courts of England shall have non-exclusive jurisdiction to hear and decide any suit, action or proceedings and/or
to settle any disputes which may arise out of or in connection with this assignment and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of England. 

  

	13.	This Agreement may be executed in two or more counterparts and execution by each of the parties of any one of such counterparts will constitute due execution of this Agreement once
agreed by or on behalf of each of the parties to be exchanged. 

  

 6 

	14.1	DHL undertakes to the Buyer that neither it nor any of its Affiliates will, directly or indirectly: 

  

	 	14.1.1	at any time during the period of 36 calendar months from the date hereof: 

  

	 	14.1.1.1	carry on, engage in or be employed in; or 

  

	 	14.1.1.2	be concerned or interested in; or 

  

	 	14.1.1.3	in any way assist in any business involved in; 

  
 the licensing of stock photography, moving and still images as well as music and fonts in competition with any of the businesses of any of the Buyer or
any of its Affiliates;  
  

	 	14.1.2	at any time after the date hereof use as a trade or business name or mark or domain name or carry on a business under a title containing the words “Digital Vision”,
“DV” or any other words which resemble or are deliberately calculated to resemble the same; or 

  

	 	14.1.3	assist any other person to do any of the above. 

  
 Each undertaking contained in this Clause 14.1 shall be read and construed independently of the other undertakings herein as an entirely separate and
severable undertaking. 
  

	14.2	Nothing contained in clause 14.1 shall prevent DHL from being the holder or beneficial owner of any units of any authorised unit trust and from being the holder or beneficial owner
of any class of securities in any company if such class of securities is listed, or dealt in, on a recognised investment exchange (within the meaning of Part XVIII of the Financial Services and Markets Act 2000) provided that it neither holds nor is
beneficially interested in more than a total of 3% of any single class of the securities in that company. 

  

	14.3	Whilst the undertakings in Clause 14.1 are considered by the parties to be reasonable in all the circumstances as at the date of this Agreement it is hereby agreed and declared that
the Buyer may by notice in writing at any time to DHL reduce in whole or in part the extent of the restrictions in the said covenants in such manner and to such extent as the Buyer in its absolute discretion determines and thereupon DHL agrees to be
bound by such covenant in the form reduced and the validity of any other covenant and provisions contained in this Agreement shall not be affected. 

  

	14.4	For purposes of this Clause 14, the term “Affiliate” shall mean in relation to a body corporate, any holding company (within the meaning of section 736 of the Act)
or subsidiary undertaking (within the meaning of section 258 of the Act) or such body corporate or any subsidiary undertaking of a holding company of such body corporate. 

  
 IN WITNESS whereof this assignment has been executed on the date first above written. 
  

 7 

 SCHEDULE 
  

The Images 
  
 The Images are those photographs contained on the catalogues listed below (whether licensed via these catalogues or otherwise): 
  

							
	 Catalogue Name

	 	 Number of CDs

	 	 	 	 
	Vol 1	 	31	 	 	 	 
	Vol 2	 	27	 	 	 	 
	Vol 3	 	24	 	 	 	 
	Folio Four	 	34	 	 	 	 
	Folio 5	 	28	 	 	 	 
	Contextures	 	27	 	 	 	 
	Fusion	 	33	 	 	 	 
	Voice	 	26	 	 	 	 
	ARC	 	30	 	 	 	 
	In the Black	 	31	 	 	 	 
	Vie	 	26	 	 	 	 
	Infinity	 	16	 	 	 	 
	Infinity 2	 	17	 	 	 	 
	Verve	 	30	 	 	 	 
	Verve Two	 	20	 	 	 	 
	Let’s do Business	 	22	 	 	 	 

  
 together with any other images
whatsoever purchased by DHL from DVL in 2003, subsequently commissioned by DHL from DVL (whether or not under the Commissioning Agreement), or which DHL owns or to which is has a license. 
  

 8 

							
	Signed by	 	)	 	 /s/ SIMON QUIRK

	 	 
	for and on behalf of Getty Images	 	)	 	 	 	 
	(Cayman) Limited	 	)	 	 	 	 
	 in the presence of:-
 Christine Phillips
	 	)	 	 /s/ CHRISTINE PHILLIPS

	 	 
				
	Signed by	 	)	 	 /s/ JEAN-CHARLES TURRIAN

	 	 
	for and on behalf Digital Holding and	 	)	 	 /s/ CLAUDE REY

	 	 
	 Licensing S.A. in the presence of:-
 Tim
Bennett
	 	)	 	 /s/ TIM BENNETT

	 	 

  

 9Capital Lease Agreement

 Exhibit 10.1 
  
 Note: The following is an English translated version of the original agreement which was executed in German. 
  

					
	 Lydall Gerhardi GmbH & Co. KG
 Mr. Klaus
Ritschel
 Auf der Koppel 9
  
 58540 Meinerzhagen
	  	 	  	 GEFA Leasing GmbH
  
 West Region - Erkrath
 Jörg Ernst
 Tel.: 0211 / 23384 - 207
 Fax: 0211 / 23384 - 244
 e-mail: joerg.ernst@gefa.de
  
 2/4/2005 / er

  
 Agreement on the Leasing Agreement
for a LoireSafe Transfer Press Line 
  
 Dear Mr. Ritschel: 
  
 In the letter of 12/22/2004, we sent you the leasing agreement documents for the
above-mentioned object leased. Furthermore, the method of proceeding after expiration of the calculated running time of 84 months is to be determined. 
  
 In this respect, the following was agreed upon: 
  
 According to § 9 of the Lease Conditions, the Lessee has the possibility of canceling the Lease Agreement at the times agreed. In the case of a cancellation at the
end of the 84th month after the beginning of the Lease, the Lessee can purchase the object leased for a lump sum purchase price of 4% of the original purchase price. 
  
 Should a cancellation not be desired at the 84th month after the beginning of the Lease, the Lease Agreement can be continued at reduced
rates. 
  
 After the end of the 84th month after the start of the lease, the
monthly lease payment is 0.35% of the net purchase price. 
  
 In the case of a
cancellation at the end of the months indicated below, the Lessee can purchase the object leased for a lump-sum purchase price. The purchase price will be, at the end of the 
  

			
	 90th month
	  	                3%
	 96th month
	  	                2%
	 and after the 102nd month
	  	1% of the original purchase price.

  
 Please make a countersigned copy of
this agreement available. 

 Page 2 of the letter to Lydall Gerhardi GmbH & Co. KG of 2/4/2005 
  
 Cordially, 
  
 GEFA – Leasing GmbH 
  

	
	 /s/ Mr. Korfman

	 Mr. Korfman
 Finance Director

  
  

	
	 /s/ Mr. Glorfeld

	 Mr. Glorfeld
 Deputy of Finance Director

  
 We have taken note of the contents of
this letter. We agree with the above-stated conditions. 
  
 Meinerzhagen, on:

 April 18, 2005 
  

	
	 /s/ Klaus Ritschel

	 Klaus Ritschel
 Lydall Gerhardi GmbH & Co. KG

			
	 SG
 Equipment Finance
	 	GEFA-Leasing GmbH
		
	CONFIRMATION OF ACCEPTANCE – Cancelable Lease	 	151681
	 	 	Contract No.
	 	 	Wuppertal, 3/31/2005

  

			
	Name and Address of Lessee	  	Name and Address of Supplier
		
	Lydall Gerhardi GmbH & Co. KG	  	Loire Safe
	Auf der Koppel 9	  	Zikunaga, 22
		
	D-58549 Meinerzhagen	  	 20120 Hernani (Gupúzkoa)
 Spain

		
	By Fax in Advance	  	 
	Please forward to Mr. Ritschel	  	 

  

					
	 Description of Objected Leased Delivery Deadline
	  	Net Sales Price
EUR	  	Sales Tax
	 1 LoireSafe Transfer Press Line
	  	2,995,000.00	  	16.0
	 Lease Calculation Basis (LBC)
	  	2,995,000.00	  	 

  

					
	Leasing Rate for the LBC	 	 Lease Installment
 EUR
	 	Plus all Sales Taxes
	1.35928%	 	40,710.44	 	Currently 16.0%

  
 Ladies and Gentlemen: 
 Dear Mr. Ritschel: 
  
 Thank you for your application on 3/21/2005 for a lease agreement, which we hereby accept. The lease agreement will bear the number cited above. 
  
 A countersigned copy of the agreement will be sent to you separately upon the final payment for the lease agreement. 
  
 We sent our purchase order to the supplier today. 
  
 Please quickly return the enclosed Acceptance Confirmation form, signed in a legally binding
manner. 
  
 We assume that you have previously satisfied yourselves with the
proper functioning of the object leased. Should the object leased prove to be defective, please inform the supplier immediately, to preserve any warranty claims; send us a copy of your written report of defects. 
  
 The following is agreed upon: The start of the lease and the due date for the first lease
installment is 4/1/2005. 
  
 We will reimburse you for the partial payments you
already made to the supplier, in an amount totaling EUR 2,396,000.00 upon the start of the agreement. This assumes that the supplier has returned our purchase order, signed in a legally binding manner (we are enclosed a copy of this purchase order
with this letter). 
  
 Furthermore, we have supplemented the final payments as a
percentage of the net sale price according to § 9 of the Lease Conditions as follows: 
 84th month and thereafter 0% 
  
 Within the framework of the EC Domestic Market, we are required to provide statistical data on the movement of goods within the Community. Since you, as the recipient of
the goods, have more precise information on the data required (bill of delivery, etc.), please return the enclosed form, filled out with confirmation of your acceptance. 
  

	
	 Cordially,

	
	 /s/ Mr. Korfman

	 Mr. Korfman
 Finance Director

	
	
	 /s/ Mr. Glorfeld

	 Mr. Glorfeld

	
	GEFA-Leasing GmbH

			
	 SG
 Equipment Finance
	 	GEFA-Leasing GmbH
		
	PURCHASE ORDER	 	151681
	 	 	Contract No.
	 	 	Wuppertal, 3/31/2005

  

			
	Name and Address of Supplier	  	Name and Address of Lessee
		
	Loire Safe	  	Lydall Gerhardi GmbH & Co. KG
	Zikunaga, 22	  	Auf der Koppel 9
		
	20120 Hernani (Gupúzkoa)	  	D-58540 Meinerzhagen
	Spain	  	 

  

							
	 Description of the Object Leased Delivery Deadline
	  	Net Sale Price
EUR	  	Sales Tax
%	  	Discount
%
	 1 LoireSafe Transfer Press Line
	  	2,995,000.00	  	0	  	0.00

  
 According to Order No.: 61988 of
Lessee fated 3/31/2004 
  
 Site of Object
Leased:        See Lessee’s address 
 (Precise Address) 
  
 Ladies and Gentlemen: 
  
 We have signed a Lease Agreement with the above-named Lessee for the above-described Leased Object to be supplied by you. With the agreement
of Lessee, we are buying the Leased Object from you under the sale and delivery conditions agreed upon between you and Lessee, to the extent the same are not abrogated by the contents of this purchase agreement. 
  
 The delivery is to be made to Lessee according to the agreed-upon conditions. The ownership
of the Object Leased is transferred to us as soon as we pay the agreed-upon sales price. The transfer is replaced by the fact that you will deliver the Object Leased to Lessee and will assign your claim against the possessor for return of the item
to us, under the condition that the sales price is previously paid to Loire Safe (1). 
  
 [stamp in left margin] 
 LOIRE Sdad. Anma. Franco Española 
 [illegible signature] 
  
 We will pay the sales
price immediately, upon written confirmation to us from Lessee that the delivery and any related installation of the Leased Object has been made without objection. 
  
 [paragraph deleted] (1) 
  
 We have your bill No. 05/7001.136 dated 3/9/2006. As Lessee informed us, it has already paid the sum of EUR 2,396,000.00 to you. We will compensate Lessee for this
amount and transfer the remainder, EUR 559,000.00, to your account at Banco Santander Central Hispano S.A. after release by Lessee. 
  
 Under the Lease Agreement, Lessee is entitled to demand that we assign to it of all warranty rights arising from this purchase contract. You hereby declare that you
accept such assignment. 
  
 Please confirm your agreement with this purchase
order in writing, by returning the enclosed copy with your legally-binding signature. 
  

	 	(1)	corrections made according to the e-mail from Mr. Ritschel (Lydall-Gerhardi) of 4/6/2005 to Mr. Alvaro Palacios (Loire Safe) with copy to Mr. Frank Gloerfeld (Gefa). A copy of the
e-mail is attached. 

  

			
	LOIRE Sdad Anma. Franco Española	 	 
	P.P.	 	Cordially,
	/s/ Mr. Palavreif        	 	 GEFA Leasing GmbH

	Mr. Palavreif	 	 /s/ Mr. Korfman        

	Finance Director	 	 Finance Director

	 	 	 
		
	Hernani (Spain), April 7, 2005	 	 /s/ Mr. Glorfeld        

	(Company Stamp and Signature of Supplier)	 	 Mr. Glorfeld

			
	 SG
 Equipment Finance
	 	GEFA-Leasing GmbH
		
	CONFIRMATION OF ACCEPTANCE – Cancelable Lease	 	151681
	 	 	Contract No.
	 	 	Wuppertal, 3/31/2005

  

			
	 	  	Name and Address of Supplier
		
	 GEFA-Leasing GmbH
 Robert-Daum-Platz 1
	  	Loire Safe
		
	42117 Wuppertal	  	20120 Hernani (Gupúzkoa)
	 	  	Spain

  

					
	 Description of Objected Leased Delivery Deadline
	  	Net Sales Price
EUR	  	Sales Tax
	 1 LoireSafe Transfer Press Line
	  	2,995,000.00	  	16.0
	 Lease Calculation Basis (LBC)
	  	2,995,000.00	  	 

  
 The above-described Leased Object was
delivered by your agent by the above-indicated deadline and placed at the site agreed upon. There were no objections. Please pay the Supplier’s bill. Any rights of GEFA-Leasing GmbH as owner of the Leased Object are unaffected by this
Confirmation of Acceptance. 
  
 Location of the Leased Object (precise address):

  
 Amount withheld as Security: EUR 599,000.00 
 Payment after Separate Release 
  
 Mr. Bischofs 
 Can we confirm this to the leasing company in
such manner? 
  
 Cordially, 
  
 /s/  K. Ritschel 
 K. Ritschel 
  

			
	[stamp]	  	 
	LYDALL GERHARDI	  	 
	GMBH & CO. KG	  	 
	Auf der Koppel	  	 
	58540 Meinerzhagen	  	 
	4/18/2005	  	Company Stamp and Legally Binding Signature

 SG 
 Equipment
Finance 
  

													
	GEFA Leasing GmbH	 	Your Branch:
40699 Erkrath, Heinrich-Hertz-Str. 16
Telephone 0211 / 23384-0 / Fax
0211 / 23384-222
e-mail region.west@gefa.de
						
	 Cancelable Lease Contract
 Name and Address of
Lessee
 Lydall Gerhardi GmbH & Co. KG
 Auf der
Koppel 9
 D-58540 Meinerzhagen
	 	 	 	 	 	    	 Contract Number 151681
 Name and Address of
Supplier
 Loire Safe
 Zikunaga, 22
 E-20120 Hernani
	 	 	 	  	 
					
	Object Leased (Machine / unit / chassis number)	 	 	 	    	Delivery time	 	 	Net Purchase      	  	Sales Tax
						
	 1 LoireSafe Transfer Press Line
	 	 	 	 	 	    	 	 	EUR	2,995,000.00	  	16%
					
	 Monthly lease rate of the purchase price
 Cancellation dates and final payments in % of net purchase price according to § 9 of the Lease Conditions at
	 	1.35928	%	 	Total purchase price	 	EUR	2,995,000.00	  	 
	 	 	Monthly rate (subject to the agreement under
the amount and due date of the lease payments)	 	EUR	40,710.44	  	 
	 48th month (first opportunity)
	 	51	%	 	+ Sales Tax	 	EUR 	6,513.67	  	 
	 54th month
	 	44	%	 	 	    	 	 	 	 	  	 
	 60th month
	 	36	%	 	Total monthly payment	 	EUR 	47,224.11	  	 
	 66th month
	 	29	%	 	 	    	 	 	 	 	  	 
						
	 72nd month
	 	21	%	 	 	    	 	 	 	 	  	 
	 78th
month
	 	13	%	 	 	    	 	 	 	 	  	 
	 84th month
	 	0	%	 	Location: see address of Lessee	 	 	 	  	 

  

											
	 after the beginning of the lease in each case, plus sales tax
	 	   Lease beginning: and
	  	 due date of the first lease
 payment:

	 	  	 	 	   04.01.2005
	  	on the first day of the month of acceptance

  
 The Lessee authorizes GEFA to collect
from its account Number at the XXXXXXXXXXXX (Bank Routing Number ) XXXXXXXX 
 With the first lease payment, GEFA will invoice a one-time processing fee in
the amount of EUR 250.00 + 16% sales tax EUR 40.00 = EUR 290.00 
  
 The parties to
the contract agree that the lease payments to be made by the Lessee, in the case of a cancellation of the Lease Contract before the cancellation date on which, for the first time, no termination payment in accordance with § 9 of the Lease
Conditions must be made, do not cover the acquisition or manufacturing costs, as well as the ancillary costs including GEFA’s financing costs. The Lessee correspondingly recognizes its duty to pay the full amortization of GEFA by paying a
termination payment to GEFA, as provided in § 9 of the Lease Conditions on the reverse hereof. 

 The Making of the Contract 
  
 The Lessee offers GEFA Leasing GmbH – hereinafter called GEFA – the execution of this Lease Contract on the following conditions
and those listed on the reverse hereof. It authorizes GEFA, through an agreement with the Supplier, to take its place under the conditions negotiated by it, including the Supplier’s delivery conditions accepted by it, to enter into the
purchase/work/work delivery contract made by it with the Supplier (hereinafter the Supply Contract) or to execute with the Supplier a Supply Contract under the conditions confirmed in writing by the Lessee as negotiated by the Lessee and GEFA. The
Lessee is bound by its offer of a contract for a period of four weeks after submission documents necessary for a decision on its offer of a contract. The Lease Contract comes into being with its written acceptance by GEFA. After acceptance, GEFA
will send the Supplier an offer to enter into the Supply Contract or to make a Supply Contract. The parties can cancel the Lease Contract if no Supply Contract comes into being between GEFA and the Supplier in a reasonable time. 
  
 Acceptance 
  
 The Lessee is required to accept the object leased from the Supplier. It accepts, in the
place of GEFA, the duty to examine the object leased without delay for agreement with the completeness and correct delivery, free of defects, as agreed between the Lessee and the Supplier, and to notify the Supplier, as well as GEFA, in writing of
any such defect without delay. If, upon examination of the object leased, no defect appears, then the Lessee must confirm to GEFA, in writing, that the object leased was delivered to it and when, and that no defect was visible therein (Acceptance
Declaration). After receipt of the Acceptance Declaration, GEFA will pay the purchase price/wages for service (hereinafter purchase price) to the Supplier. On the date of actual acceptance of the object leased, the Lease Contract takes effect
(beginning of Lease), subject to other agreements. GEFA has the right to record the beginning of the Lease in advance. 
  
 Amount and Due Date of the Lease Payments 
  
 The lease payments, the first of which is due at the time agreed, are each due on the first day of the following month. In the case of quarterly, semi-annual or annual
payments, the subsequent lease payments are due on the first of the first month of the following quarter, half year or year. The Lease Payments are based on the interest rate at the time of submission of the lease offer. If the interest rate has
changed in comparison with this, upon receipt of the Acceptance Declaration by GEFA, both parties may, within four weeks after the beginning of the Lease Contract, demand an adjustment in the lease rate through the arrival of a corresponding
declaration by the other party to the contract, as the case may be. If the net purchase price of the object leased is changed in the agreement with the Lessee, then the lease payments and the final payment in accordance with § 9 will be changed
proportionately. The Lessee must pay the current sales tax on the lease payments. 
  
 GEFA has the right to store, internally, data – including data related to persons – concerning the requesting (for example, Lessee, total debtors, guarantors, lease payments, period of the contract, beginning of the lease
payments) and performance of the Contract (for example, early termination, cancellation without notice, the filing of a complaint, execution measures) from the beginning of the business relationship concerning the Lessee and any co-signer or
guarantor (§ 28 BDSG), to use for the processing of the offer/contract and to transmit it to a refinancing institution for the purpose of re-financing the Contract. The Lessee can, at any time, demand information concerning the use of the data.
GEFA will delete the data provided to it after the end of the Contract from its storage facilities, if the Lessee so wishes. 
  

					
	 Wuppertal, 3/31/2005

	 	 	 	 Meinerzhagen, 3/21/2005

	 Place, Date
	 	 	 	 Place, Date

  

			
	GEFA-Leasing GmbH	 	 
		
	 /S/ MR. KORFMANN

	 	 /S/ MARTIN KLAUTKE

	Mr. Korfmann	 	Martin Klautke
	Finance Director	 	Operations Manager
		
	 /S/ MR. GLORFELD

	 	 /S/ KLAUS RITSCHEL

	Mr. Glorfeld	 	Klaus Ritschel
	Deputy of the Finance Director	 	Director of Finance

  
 (Company stamp and
signature of Lessee) 

 Lease Conditions 
  
 § 1 Breach of Duty through Non-Delivery or Failure to Deliver in a Timely Fashion 
  
 If the object leased should not be delivered or not be delivered timely,
then the Lessee has no claims against GEFA for fulfillment under Leasing Law. Instead, GEFA hereby transfers its claims against the Supplier for non-delivery, delay in delivery, as well as the claims and rights from the delivery or design of the
objects leased with respect to guarantees, even if these are provided by third parties to the Lessee. Not assigned are the claim for reimbursement of payments already made by GEFA as well as the claims by GEFA arising from non-fulfillment of the
delivery contract and reimbursement of GEFA for any damages that arise. The Lessee is required to enforce and persist in the transferred rights and claims without delay and at its own expense – including court costs. To the extent that rights
and claims are not transferred to it, it is hereby empowered and required to assert them in its own name and for its own account, with the proviso that payments from the non-fulfillment and for any damages to GEFA are to be paid only to GEFA. The
Lessee shall keep GEFA informed of the filing of any claims without delay and continuously. 
  
 If the Lessee effectively cancels the Supply Contract due to the claims transferred, or if the contract is not fulfilled in connection with the assertion of claims for damages instead of performance, the parties are
entitled to cancel the Lease Contract. If the Lease Contract is cancelled, then GEFA must reimburse the Lessee for performances that it has provided under the Lease Contract simultaneously against the surrender of the object leased. 
  
 § 2 Holding Harmless 
  
 The Lessee must hold GEFA harmless of all private and public law claims that
third parties make against it as owner of the object leased, providing it to the Lessee or on other grounds such as importation, supply, set-up, installation or use of the object leased, as well as from all costs connected with such facts, and to
compensate GEFA for performances already provided in this regard. 
  
 § 3
Protection of GEFA’s Rights 
  

	1.	The Lessee must keep the object leased, at its own expense, in operating and usable condition and maintain it in accordance with the manufacturer’s recommendations or as is
generally customary, or have it maintained by a qualified specialized company. 

  

	2.	Without the written consent of GEFA, the Lessee may not undertake changes in the object leased that affect its nature or decrease its value, and may not transfer it to third
parties, either for compensation or without compensation. 

  

	3.	GEFA has the right, during normal business hours, to examine the object leased and to mark it as its property. 

  

	4.	A connection of the object leased to real property is done for a temporary purpose and with the intention of separating it at the end of the Lease Contract. The Lessee will make
this clear with respect to the owner of the real property in each case. 

  

	5.	Personal property that the Lessee builds into the object leased passes to the ownership of GEFA; the Lease Contract also extends to these built-in objects. The Lessee has the right
to recreate the original condition. 

  

	6.	The Lessee will notify GEFA without delay concerning execution measures with respect to the object leased or the real property on which it is located. The intervention expenses that
GEFA incurs will be borne by the Lessee to the extent that GEFA is not reimbursed for them. 

  

	7.	A vehicle as object leased is registered in the name of the Lessee, the holder in the sense of highway traffic law, the required insurance law, etc. Handing it over to company
members is permissible provided these are in possession of a valid driver’s license. 

  
 § 4 Object and Price Risk 
  

	1.	The Lessee shall bear the risk for the accidental destruction, the disappearance, total damage, deterioration and loss of usability of the object leased, for any reasons whatever,
provided these are not attributable to GEFA. Upon the occurrence of one of these events, subject to the following agreements, the Lessee is still required to continue to provide the performance owed by it. 

	2.	At an occurrence of an event, according to Para. 1, the Lessee has the right and the duty, at its own option, without delay, and regardless of whether an insurance policy or a third
party must respond for the event, either to repair the leased object at its own expense or to replace it with an object of the same type and value and to continue the lease contract unchanged, or to terminate the Lease Contract early. The Lessee
will notify GEFA in writing, without delay, concerning the choice made by it. 

  

	3.	If the Lessee chooses to early termination, then it must pay to GEFA the total of the outstanding lease payments up to the next cancellation date according to § 9, as well as
the corresponding termination payment, with interest to the current value, plus value added tax. The applicable interest rate for the calculation of interest corresponds to that of § 7 Para. 2 a). The amount owed by the Lessee, according to
this, is decreased by any expenses GEFA may be saved for the further development of the Lease Contract. Simultaneously against payment of the redemption amount, title to the object leased passes to the Lessee. 

  

	4.	If the Lessee chooses repair, then it must place the object leased into a condition in accordance with the Contract and prove this to GEFA. If it chooses replacement, then it must
obtain ownership thereof for GEFA, to the extent that GEFA does not obtain the replacement object leased from the supplier. The Lease Contract will then apply unchanged for the replacement object. 

  

	5.	If the Lessee does not make its choice without delay, or if it fails to cancel the Lease Contract within a reasonable time corresponding to its choice, to repair or to replace the
object leased, GEFA shall have the right to demand the early cancellation of the Lease Contract by the Lessee; in this case, the legal consequences of Para. 3 apply accordingly. 

  
 § 5 Insurance 
  

	1.	The Lessee will insure the object leased for the duration of the lease at its own expense, at the new value, against loss, destruction, damage, as well as all further risks for
which GEFA deems an insurance policy necessary, according to its judgment and in accordance with its duties, and include it in its company liability insurance. The Lessee will insure an EDP installation by obtaining an electronic insurance policy.
For a motor vehicle, the Lessee will obtain liability insurance with a customary scope of coverage (personal injury, damage to property and capital) and a full coverage insurance policy with a customary deductible amount. 

 

	2.	The Lessee agrees to submit to GEFA, at the latest within 14 days after the beginning of the lease, a request for the delivery of an insurance certificate / insurance confirmation
to be forwarded to its insurer. If it should fail to comply with this duty or with the payment of the agreed insurance premiums, in spite of reminder, GEFA has the right to contract for the corresponding insurance policy at the Lessee’s
expense. 

  

	3.	The Lessee hereby assigns its rights and claims arising from the insurance of the object leased as well as its claims for compensation for damage to the object leased to GEFA.

  

	4.	Insurance and compensation amounts paid to GEFA in the case of § 4 Para. 3 must be credited to the amount the Lessee is committed to pay, up to the amount owed by it, in the
case of § 4 Para. 4, against submission of corresponding documentation to the Lessee or – in the case that the Lessee has not completely paid the repair or acquisition cost – to pay entirely or in part to the shop or the Supplier of
the replacement object. 

  

	5.	To the extent that the Lessee has complied with its duty to redeem the Lease Contract or to repair or replace the object leased, GEFA must assign back to the Lessee the insurance
claims in the amount of performance already provided by the Lessee, arising from an event mentioned in § 4 Para. 1. 

  

	6.	If the insurer or a damaging party does not comply with its payment duties, it is incumbent upon the Lessee to enforce the rights and claims assigned to GEFA, at its own expense,
with respect to the insurance or the damaging party, in its own name – even in court – with the proviso that it demands the payment to GEFA. 

 § 6 Liability in the Case of Factual and Legal Deficiencies 
  

	1.	As a result of the fact that the selection of the Supplier and of the object leased was made solely by the Lessee, claims by the Lessee against GEFA due to factual and legal
deficiencies or the lack of usability of the object leased, as well as for deficient payment or performance possibilities on the part of the Supplier are excluded. 

  

	2.	In return, GEFA hereby assigns its claims arising from the purchase or work contract against the Supplier for performances not in accordance with the contract, especially the right
to re-fulfillment, to cancel the Supply Contract, to decrease it or to compensation for damages, as well as claims arising from the infringing of contractual and/or pre-contractual subsidiary duties, in addition to the claims and rights already
assigned in § 1 Para. 1 Clause 2 to the Lessee. With respect to the assertion of the rights and claims, § 1 Para. 2 applies accordingly. Not assigned are, in addition to the claims listed in § 1 Para. 2 Clause 2, the claims arising
from decreasing and redelivery. In the case of payment of compensation for damages, GEFA has the duty to pass along amounts it receives to the Lessee, to the extent that they go beyond its interest in the case of cancellation of the Contract.

  

	3.	The Lessee can refuse to make the lease payments as a result of a factual or legal deficiency only (in the case of decreasing, only partially) if the effectiveness of the
cancellation or decrease declaration from the supply is provably and justifiably not contested or the Supplier justifiably recognizes the claim for compensation for damages instead of the performance, otherwise only after it has filed a complaint
for cancellation of the Supply Contract, compensation for damages instead of the performance or a decrease in the purchase price. If the Lessee, as a result, (partially) ceases the lease payments, then, to the extent that it continues to use the
object leased, it must, at GEFA’s option, either pay the lease payments into a trust account or provide a bank guarantee for the fulfillment of the Lease Contract. The assertion of claims – even in court – for supplementary
fulfillment does not release the Lessee from its payment duties. 

  

	4.1	If the Lessee enforces the claim for the supply of a leased object free of deficiencies against the Supplier, GEFA agrees that the previous object will be exchanged for a new object
of equal value, to the extent that title to the new object is transferred to GEFA. The Lessee will notify GEFA without delay of the intended exchange of the object leased. If the Lessee should receive title from the supplier to the exchanged object,
the parties agree already now that, in this case, the title to the object will pass to GEFA. The transfer will be replaced by GEFA granting to the Lessee the exchange object as a leased object, according to the conditions of this contract for use.
If a third party owns the exchange object, the transfer will be replaced by the Lessee, assigning its surrender claim against it to GEFA. 

  

	4.2	The Lease Contract begins, in this case, only with the transfer of the exchanged object. Lease payments made before the redelivery will be reimbursed by GEFA to the Lessee after the
deduction of a reasonable use compensation that corresponds at least to the use compensation claimed by the Supplier. Instead of this, the Lessee may demand that the Lease Contract be continued as originally agreed. In this case, the Lessee must
pay, from the beginning of the Contract, the lease payments plus the use compensation that GEFA may be required to pay to the Supplier. In this case, it will be considered that the Contract begins at the time of the delivery of the original object
leased. As compensation, GEFA will grant the Lessee a reasonable share of the higher receipts in connection with the agreement made according to § 9 Para. 3 resulting form the redelivery, at the time of salvaging the object leased after the
termination of the Lease Contract. 

  

	4.3	The Lessee must notify GEFA at the time of notification of the intended redelivery whether it wishes to restart or continue the Lease Contract. If it fails to do so, GEFA may grant
it a two-week period to exercise the right to choose, with the notification that if this period expires without results, the Lease Contract in accordance with § 6 Para. 4.2, 2nd paragraph, will be continued. 

  

	5.	If the Lessee enforces a decrease with respect to the Supplier, the lease payments from the beginning and the final payment in accordance with § 9 will be decreased in the
measure in which the purchase price decreases. GEFA will refund overpayments to the Lessee. 

	6.	If the Lessee enforces against the Supplier the cancellation of the Supply Contract or the annulment of the Supply Contract due to the claim for compensation for damages rather than
the performance, then the business basis for the Lease Contract disappears. The parties have the right to cancel the Contract. In both cases, GEFA must refund to the Lessee any overpaid amounts; on the other hand, GEFA retains a claim for the
issuance of the benefits obtained by the Lessee. 

  

	7.	The Lessee is required to return to the Supplier the defective leased object in connection with the supply of a non-defective object due to cancellation or in connection with
compensation for damage instead of performance only simultaneously against fulfillment of the payment or ownership change duties of the Supplier/third party with respect to GEFA. In relation to GEFA, the return is at the risk and expense of the
Lessee. 

  
 § 7 Extraordinary Cancellation 

 

	1.	GEFA can cancel the Lease Contract without notice if an important ground exists. This ground exists especially if 

  

	a)	the Lessee, who is not a user in the sense of § 500 BGB, is either in default for two successive periods in the making of the lease payments or is in default for an amount
equivalent to one lease payment for at least two months; 

  

	b)	the Lessee, who is a user in the sense of § 500 BGB, is in default of at least two subsequent payments, entirely or in part, and at least 10%, in the case of a running period
of the Lease Contract exceeding 3 years, with 5% of the nominal amount and GEFA has previously unsuccessfully given it a two-week period for the payment of the amount in default, with the declaration that, in the case of nonpayment within the period
granted, it would demand the entire remaining debt; 

  

	c)	since the time of the execution of the Contract, a substantial worsening has occurred in the economic conditions of the Lessee and, as a result, the GEFA’s claim for the
fulfillment of the obligations from the Lease Contract is at risk; 

  

	d)	the Lessee, in spite of notice served, continues a use of the object leased in violation of the Contract, infringes substantial duties arising from this contract that are incumbent
upon him, or fails to correct the consequences of its behavior in violation of the Contract and as a result damages GEFA’s rights to a substantial extent; 

  

	e)	the Lessee has provided false information concerning its capital position, which may endanger the economic interests of GEFA to a substantial extent; 

  

	f)	the Lessee ceases to make payments, the opening of insolvency proceedings is declined for lack of substance or a proceeding is initiated against it for the providing of the sworn
assurance. 

  

	2.	In case of extraordinary cancellation of the Lease Contract, the Lessee is required to surrender the object leased immediately. § 10 Para. 1 applies correspondingly. GEFA will
dispose freely of the object leased according to its own judgment in the awareness of its duties. The Lessee is required to compensate GEFA for damages caused by the non-fulfillment of the Contract. These damages are calculated from the difference
between 

  

	a)	the sum of the lease payments still outstanding until the next cancellation date in accordance with §9 and the corresponding final payment without Sales Tax, bearing interest
at the interest rate that, at the time of the execution of the Lease Contract – if the lease rate was adjusted in accordance with the adjustment agreement under “Amount and Due Date of the Lease Payments” (obverse), then the rate at
the time of the adjustment – which would have had to be paid in order to obtain a corresponding credit on the money and capital market, and 

  

	b)	the expenses saved by GEFA as well as 90% of the net income from the salvaging of the object leased less salvage costs. 

  
 Proof of a different higher or lower damages is not denied the parties.

  

	3.	If the cancellation takes place before acceptance (obverse, under “Acceptance”), the Lessee must reimburse GEFA’s performances with respect to the purchase price and
hold GEFA harmless from all duties arising out of the delivery contract and the Lease Contract. Simultaneously against payment and release, GEFA’s rights to the object leased pass to the Lessee. 

	4.	The cancellation of the heir according to § 564 BGB is excluded. 

  
 § 8 Assignment, Co-debtor 
  

	1.	The assignment of the rights and claims of the Lessee from the Lease Contract requires the written consent of GEFA. 

  

	2.	The Lessee and co-debtors are jointly and severally liable. 

  
 § 9 Termination of the Lease Contract 
  

	1.	The Lease Contract is made for an indefinite time. The Lessee can cancel the Lease Contract in writing for the first time at the end of the month indicated on the obverse, after the
beginning of the lease and thereafter at six-month intervals. The cancellation notice period is three months. 

  

	2.	In case of cancellation, the final payments agreed on the obverse as a percentage of the net purchase price for each cancellation time will fall due. The legal sales tax is to be
paid on the final payment. 

  

	3.	90% of the proceeds obtained from salvaging the object leased will be applied to the final payment up to the amount owed. If the Lessee executes a new Lease Contract of the same
type with GEFA at the latest one month after the end of the Lease Contract, the proceeds from the salvage will be credited fully to the final payment period. Any additional amount due is to be paid within two weeks after written notice.

  
 § 10 Return, Disposal of the Object Leased, Assigning
Claims Back 
  

	1.	After the termination of the Lease Contract, the Lessee must return the object leased, provided it does not buy it, at its own expense and risk, with transport insurance, to GEFA,
at its address Robert-Daum-Platz 1, 42117 Wuppertal, or another location designated by GEFA within the Federal Republic of Germany, or upon request of GEFA, at its own costs, to dispose of it in accordance with the provisions of the law.

  

	2.	The Lease Contract will not be extended in the case of continuation of use by the Lessee beyond the time of termination of the Contract. 

  

	3.	Upon termination of the Lease Contract, the Lessee hereby assigns all claims that were assigned to it in accordance with § 1 Para. 1 and § 6 Para. 2, which, at the time of
the termination, are not already in use in the courts, to GEFA. Any benefit arising to GEFA from this will be credited by it to the commitments of the Lessee. 

  
 § 11 Information, Especially the Submission of the Annual Closing as a Substantial Contractual Duty 
  
 The Lessee is required to reveal its economic conditions to GEFA, during the term of the
lease, upon request, especially to submit its annual closings. This is a substantial contractual commitment. The Lessee hereby authorizes GEFA to submit these documents and this information to the refinancing institute. 
  
 § 12 Final Provisions 
  

	1.	Changes to this Contract, including changes to this clause requiring the written form, must be in written. 

  

	2.	Place of fulfillment and court jurisdiction is Wuppertal. The law of the Federal Republic of Germany applies. 

  

	3.	If a provision of this Contract should be invalid, then the validity of the other agreements is not affected thereby. That agreement which legally comes closest to the intended
economic purpose is to take the place of the invalid agreement. 

 Supplementary Agreement to Cancelable Price Contract No. 151681 of 03/31/2005 

 
 GEFA Leasing GmbH, Robert-Daum-Platz 1, 42117 Wuppertal 
  
 - Lessor - 
  
 and 
  
 Lydall Gerhardi GmbH & Co. KG, Auf der Koppel 9, 58540 Meinerzhagen 
  
 - Lessee - 
  
 intend to execute a Lease Agreement concerning a Loire Safe Transfer Press Line. This Agreement is based on the General Business Conditions of the Lessor, designated as “Lease Conditions.” 
  
 With respect to the Agreement and some of the Lease Conditions, the Parties agree on the
following differing or supplementary individual agreements: 
  
 1. According to § 9 of the Lease Conditions, the Lessee has the possibility of canceling the Lease Agreement at the times agreed. In the case of a cancellation at the end of the 84th month after the beginning of the Lease, the Lessee
can purchase the object leased for a lump sum purchase price of 4% of the original purchase price. 
  
 In this case, the Lessee accepts the object leased in the condition of the time of acceptance. All claims due to factual defects (§ 437 of the BGB)
against the Lessor are excluded. This does not apply to compensation for damages according to § 437 Para. 3 of the BGB, to the extent that the defect has led to an injury to the life, body or health of the Lessee, its legal representatives, its
performance or fulfillment personnel, or third parties who have contact with the object leased, and for damages that arise from a grossly negligent or intentional non-compliance by the Lessor, its legal representatives or fulfillment
personnel. 
  
 Should a cancellation not be desired at the 84th
month after the beginning of the Lease, the Lease Agreement can be continued at reduced rates. Thereafter, the monthly lease payment is 0.35% of the net purchase price. 
  
 In the case of a cancellation at the end of the months indicated below, the Lessee can purchase the object leased for a
lump-sum purchase price. The purchase price will be, at the end of the 
 90th month 3% 

 96th month 2% 
 and after the 102nd month, 1% of the original purchase price. 
 Para. 1 Subpara. 2 applies correspondingly.

  

	2.	The Lease Payments are due on the first of each month, the first payment is therefore due on the 1st of the month following the acceptance date. 

  

	3.	The Parties agree that the Lessee bears the risk of accidental destruction, loss, total damage, degradation and loss of usability of the object leased, unless the Lessor is
responsible for them. To the extent that the Lessee, after the occurrence of the above-mentioned event, makes payments in compensation for damages to the Lessor, the latter hereby assigns any existing claims for damages against third parties to the
Lessee concurrently against payment. The Lessee hereby accepts the assignment. 

  

	4.	The Parties agree that a cancellation of the Agreement in accordance with § 7 Para. 1c of the Terms of Supply can be considered only if the fulfillment of the commitments
arising from the Lease Agreement is concretely and seriously endangered. 

  

	5.	The Lessor agrees, in the case of a cancellation by the Lessee, to arrange for the sale of the object leased, provided it has surrendered to the Lessor. If, at the time of the
cancellation, a sale is impractical due to the actual value of the object leased, then the Lessor has no duty to undertake it. In this case, the Lessor is required to prove to the Lessee, through a corresponding expert appraisal, the impracticality
of the sale. 

  

	6.	The Parties agree that the Lessee complies with its commitments according to § 11 of the Lease Conditions by submitting its balance sheet issued in accordance with the
Commercial Law Book, at the latest at the end of the 3rd quarter of the following year. In addition, the Lessee agrees to submit semi-annual intermediate figures. 

  

			
	 Wuppertal 3/31/2005
	 	Meinerzhagen, 3/30/2005    
		
	 for the Lessor
	 	For the Lessee                      
		
	 /S/ MR. KORFMANN

	 	 /S/ BERTRAND PLOQUIN

	Mr. Korfmann	 	Bertrand Ploquin
	Finance Director	 	Managing Director
		
	 /S/ MR. GLORFELD

	 	 /S/ KLAUS RITSCHEL

	Mr. Glorfeld	 	Klaus Ritschel
	Deputy of the Finance Director	 	Director of Finance

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