Document:

exv10w1

Exhibit
10.1

Form of

Long-Term Incentive Award Terms for Grant Under the

CNA Financial Corporation Incentive Compensation Plan

     On                                                              ,      
                                    (the “Grant Date”), the Compensation Committee of the Board of
Directors of CNA Financial Corporation (the “Company”) established adjusted book value goals for a
long-term incentive award to the Participant for the [three-year performance] performance period
(the “LTI Award”). The LTI Award is subject to the following LTI Award terms (the “Award Terms”):

     1. LTI Award. For purposes of these Award Terms, the “Participant” shall be the
eligible person identified in the award letter included with these Award Terms (the “Award
Letter”). For purposes of these Award Terms, the amounts of the target LTI Award and the maximum
LTI Award are, respectively, the amounts specified in the Award Letter. The LTI Award has been
granted under the CNA Financial Corporation Incentive Compensation Plan, as amended from time to
time (the “Plan”), which is incorporated into and forms a part of these Award Terms. Certain
words, terms and phrases used in these Award Terms are defined in the Plan (rather than in these
Award Terms or the Award Letter), and, except where the context clearly implies or indicates the
contrary and except as otherwise provided in these Award Terms, a word, term, or phrase used or
defined in the Plan is used or defined identically in these Award Terms. Other words, terms or
phrases used in these Award Terms are defined in Paragraph 10 or elsewhere in these Award Terms or
the Award Letter.

     2. Performance Period. The “Performance Period” shall have the meaning set forth in
the Award Letter.

     3. Expiration. If the Participant’s Date of Termination of Affiliation occurs, prior
to payment for the Performance Period, then the following shall apply:

	(a)	 	Retirement. If the Participant’s Date of Termination of Affiliation occurs before
the last day of the Performance Period by reason of the Participant’s Retirement, the
Participant shall be eligible for a payment with respect to the LTI Award in accordance with
the terms of these Award Terms based on the Company’s actual performance for the period, but
subject to a proration based on the number of months of participation for the portion of the
Performance Period prior to the Participant’s Date of Termination of Affiliation.
Distribution under this paragraph (a) for the Performance Period shall be made at the normally
scheduled time for such distribution (determined without regard to the occurrence of the
Participant’s Date of Termination of Affiliation).

	(b)	 	Death or Disability. If the Participant’s Date of Termination of Affiliation
occurs before the last day of the Performance Period by reason of the Participant’s death or
Permanent Disability, the Participant (or the Participant’s estate) shall be eligible for a
payment with respect to the LTI Award in accordance with the terms of these Award Terms based
on the Company’s actual performance for the period, but subject to proration based on the
number of months of participation for the portion of the Performance Period prior to the
Participant’s Date of Termination of Affiliation. Distribution under this paragraph (b) for
the Performance Period shall be made at the normally scheduled time for such distribution
(determined without regard to the occurrence of the Participant’s Date of Termination of
Affiliation).

	(c)	 	Voluntary, Involuntary Termination and Termination for Cause. Except as provided

 

 

		 	above in this Paragraph 3, if the Participant’s Date of Termination of Affiliation occurs at
any time prior to the distribution of the LTI Award (as provided for in Paragraph 6 below) by
reason of termination of employment by the Participant’s employer for Cause, or by reason of
the Participant’s voluntary or involuntary termination, the Participant’s LTI Award shall be
entirely forfeited.

Notwithstanding the foregoing provisions of this Paragraph 3, if a Participant has engaged in any
conduct which constitutes Cause prior to the distribution of the LTI Award, the LTI Award shall be
entirely forfeited.

     4. New Hires, Promotions and Demotions. Except as otherwise provided below, the
Participant’s LTI Award will be based on the target percentage set forth in the Award Letter, as
well as the Participant’s base salary at the commencement of the Performance Period, and shall not
be affected by changes in base salary or status occurring during the Performance Period.

	(a)	 	New Hires. If the Participant was hired on or prior to July 1 of the third year of
the Performance Period, the Participant’s LTI Award will be prorated based on the appropriate
number of complete months of participation. Any employee hired after July 1 of the third year
of the Performance Period will not be eligible to participate until the following performance
period. Nothing contained herein shall be construed to imply that any employee hired after
the beginning of the Performance Period is entitled to any LTI Award unless such employee has
received an Award Letter.

	(b)	 	Promotions and Demotions. If the Participant is either promoted or demoted to a new
position during the Performance Period, the LTI Award will be prorated between the amount
that would have been paid based on his or her original position, and the amount that is based
on his or her new base salary and the target percentage applicable to his or her new position.
For purposes of such proration, if the Participant is promoted as part of the Company’s
annual salary review process, the new position and base salary will be treated as in effect as
of the first day of the year in which it occurs. In the case of promotions that occur outside
of the annual salary review process, and all demotions, the proration will be based on the
actual date of the change in status.

	(c)	 	Limits on Adjustments for Restricted Executives. If following a promotion the
Participant becomes a Restricted Executive (as defined in the Plan) in the year in which the
LTI Award is paid, then the amount of the LTI Award determined under Section 4(b) shall not
exceed the lesser of (i) the amount the Participant would have received based on the
Participant’s target percentage prior to such promotion, but calculated as if the
Participant’s new base salary had been in effect from the beginning of the Performance Period
or (ii) $9,000,000.

     5. Award Amount. The amount to be distributed with respect to the LTI Award shall be
determined according to the schedule in the Award Letter, subject to review and approval of the
Compensation Committee of the Company’s Board of Directors (the “Committee”). If the Adjusted Book
Value at the end of the Performance Period is at least the minimum level, but less than the target
level, the amount distributable with respect to the LTI Award shall be interpolated between the
minimum threshold amount and the target amount. If the Adjusted

2

 

Book Value at the end of the Performance Period is greater than the target level, but less
than the maximum level, the amount distributable with respect to the LTI Award shall be
interpolated between the target amount and the maximum amount. As soon as practicable after the
necessary financial data for the Performance Period is available to the Committee, the Committee
shall make a determination of the extent of the achievement of the performance goals for that
Performance Period, and shall make a determination of the amount, if any, of the distribution to be
made for the LTI Award to the Participant for the Performance Period. Payment of the LTI Award
shall be subject to the requirements of Paragraph 7 and, in addition, the Committee may, in its
discretion, reduce the amount of the LTI Award or cancel the LTI Award entirely, whether or not the
requirements of Paragraph 7 are met.

     6. Settlement of Award. The amount that is distributable for the LTI Award shall be
settled as soon as practicable as determined by the Company after the Committee makes the
determination described in Paragraph 5. An amount equal to [___]% of the LTI Award shall be
settled by the transfer to the Participant of a number of shares of common stock of the Company
determined by dividing such percentage by the fair market value of a share of stock on the Grant
Date, rounded to the next lower whole number, and the balance of the LTI Award (calculated without
regard to any change in the fair market value of the stock between the Grant Date and settlement
date) shall be settled by a cash payment. Unless otherwise determined by the Committee, tax
withholding applicable to the stock portion of the payment shall be satisfied by reducing the
number of shares delivered. If the Participant is promoted during the Performance Period, the
portion of the Participant’s LTI Award that is payable in common stock shall be based upon the
number of shares that would have been paid had the promotion not occurred, and any adjustment shall
be made to the cash portion of the LTI Award, except as the Committee may otherwise determine. If
the Participant is demoted during the Performance Period, the portion of the Participant’s LTI
Award that is payable in common stock shall also be recalculated in accordance with Paragraph 4(b),
and the number of shares of common stock shall be reduced to the number of whole shares determined
by dividing such recalculated portion by the fair market value of a share of common stock on the
Grant Date, as described above. The shares of stock transferred to the Participant shall be
subject to such restrictions on transfer or other conditions as the Committee shall determine.

     7. Minimum Performance Rating. Notwithstanding the foregoing, the LTI Award shall not
be paid, and shall be forfeited, if at the time the LTI Award would otherwise be payable the
Participant is not rated at least “Partially Meets” (or the equivalent) under the Company’s
performance evaluation rating system. The Committee may provide for the payment of all or a
portion of the LTI Award to a Participant who does not satisfy the minimum rating requirement if
the Committee determines in its discretion that circumstances nonetheless warrant such a payment.

     8. Administration. The authority to manage and to control the operation and
administration of these Award Terms shall be vested in the Committee and the Committee shall have
all powers with respect to these Award Terms as it has with respect to the Plan. Any
interpretations of these Award Terms by the Committee and any decisions made by it with respect to
these Award Terms are final and binding on all persons.

     9. Governing Documents. The Award Letter shall be subject to these Award Terms, and
these Award Terms shall be subject to the provisions of the Plan. A copy of the Plan is included

3

 

in the Company’s Proxy Statement, filed with the Securities and Exchange
Commission on April 2, 2010, available at either
www.sec.gov or www.cna.com, or is available
from the Corporate Secretary of the Company. If discrepancies arise between the Award Letter and
these Award Terms, these Award Terms will govern and if discrepancies arise between these Award
Terms and the Plan, the terms of the Plan will govern; provided that if the discrepancy relates to
the treatment of the LTI Award upon a Termination of Affiliation, or to any other provision of the
Plan that, under the terms of the Plan, may be altered by the terms of an Award Agreement, these
Award Terms shall govern. These Award Terms are subject to all interpretations, amendments, rules,
and regulations promulgated by the Committee from time to time pursuant to the Plan.

     10. Definitions. For purposes of these Award Terms, the following definitions shall
apply:

	 	(a)	 	Adjusted Book Value. The “Adjusted Book Value” of the Company means the
total shareholders’ equity of the Company on the last day of the Performance Period,
reduced by equity attributable to preferred stock and accumulated other comprehensive
income, as determined under generally accepted accounting principles consistently
applied. “Adjusted Book Value” shall be determined without regard to items related to
changes in accounting principles, tax and/or regulatory changes, and without regard to
capital contributions and distributions to shareholders during the Performance Period.
Certain adjustments to the Net Income reported to the shareholders in the Annual
Reports [in the three-year performance period] shall be made consistent with the
determination of Net Income for purposes of the Company’s Annual Incentive Bonus Plan,
provided that if such adjustments require the exercise of any discretion by the Company
after the first 90 days of the Performance Period, such adjustments shall only be made
if they would reduce the LTI Award that would otherwise be payable.

	 
	 	(b)	 	Affiliate. The term “Affiliate” means any business or entity in which at
any relevant time the Company directly or indirectly holds greater than a 10% equity
(voting or non-voting) interest.

	 
	 	(c)	 	Cause. The term “Cause” as to a Participant means (i) a Participant’s
engaging in any act or omission involving theft, malfeasance, gross negligence, fraud,
dishonesty, moral turpitude, unlawful conduct, unethical conduct or breach of fiduciary
duty; (ii) a Participant’s willful or reckless material misconduct in the performance
of the Participant’s duties, engaging in any act that violates, in any material
respect, any written policy or procedure of the Company or any Affiliate or engaging in
any conduct that results in adverse publicity or harm to the business or reputation of
the Company or any Affiliate; or (iii) a Participant’s habitual neglect of duties;
provided, however, that for purposes of clauses (ii) and (iii), “Cause” shall not
include any one or more of the following: bad judgment, negligence or any act or
omission believed by the Participant in good faith to have been in, or not opposed to,
the best interests of the Company (without intent of the Participant to gain, directly
or indirectly, a profit to which the Participant was not legally entitled). A
Participant who agrees to resign from his or her affiliation with the Company or an
Affiliate in lieu of being terminated for Cause may be 

4

 

	 	 	deemed to have been terminated
for Cause for purposes of these Award Terms.

	 
	(d)	 	Date of Termination of Affiliation. The Participant’s “Date of Termination
of Affiliation” shall be the first day occurring on or after the Grant Date on which
the Participant is not employed by the Company or any Affiliate, as determined by the
Company, regardless of the reason for the termination of employment; provided that a
termination of employment shall not be deemed to occur by reason of a transfer of the
Participant between the Company and an Affiliate or between two Affiliates; and further
provided that the Participant’s employment shall not be considered terminated while the
Participant is on a leave of absence from the Company or an Affiliate approved by the
Participant’s employer. If, as a result of a sale or other transaction, the
Participant’s employer ceases to be an Affiliate (and the Participant’s employer is or
becomes an entity that is separate from the Company), the occurrence of such
transaction shall be treated as the Participant’s Date of Termination of Affiliation,
caused by the Participant being discharged by the employer.

	(e)	 	Permanent Disability. The term “Permanent Disability” means a
physical or mental condition of the Participant which, as determined by the Committee
in its sole discretion based on all available medical information, would qualify the
Participant for benefits under the Company’s long-term disability plan as in effect
when the determination is made (ignoring the requirements of any waiting period) if
the Participant were a participant in such plan (whether or not the Participant
actually participates therein). Notwithstanding the foregoing, if the Company has no
long-term disability plan, “Permanent Disability” means a physical or mental condition
of the Participant which, as determined by the Committee in its sole discretion based
on all available medical information, is expected to continue indefinitely and which
renders the Participant incapable of performing any substantial portion of the service
required by his or her employer.

	(f)	 	Retirement. Termination because of “Retirement” shall mean the
Participant’s Date of Termination of Affiliation after ceasing to provide services to
the Company or any Affiliate for any reason other than death, Permanent Disability or
Cause, at or after the Participant’s attainment of age 62 or, if earlier, the
Participant’s Date of Termination of Affiliation which is designated by the Committee
as a “Retirement” for purposes of these Award Terms.

5exv10w1

 

    Exhibit 10.1

 

    Articles
    of Association of Fresenius Medical Care AG & Co.
    KGaA

 

    I. General Terms

 

     ART. 1

    

 

    NAME AND
    REGISTERED OFFICE
    

 

    (1) The Company is a partnership limited by shares
    (KGaA). The name of the Company is

 

    Fresenius
    Medical Care AG & Co. KGaA

 

    (2) The registered office of the Company is in Hof an der
    Saale.

 

     ART. 2

    

 

    OBJECTS OF
    THE BUSINESS
    

 

    (1) The objects of the Company are:

 

    a) the development, production and distribution of as well
    as the trading in health care products, systems and procedures,
    including dialysis;

 

    b) the projecting, planning, establishment, acquisition and
    operation of health care businesses, including dialysis centers,
    also in separate enterprises or through third parties as well as
    the participation in such dialysis centers;

 

    c) the development, production and distribution of other
    pharmaceutical products and the provision of services in this
    field;

 

    d) the provision of advice in the medical and
    pharmaceutical areas as well as scientific information and
    documentation;

 

    e) the provision of laboratory services for dialysis and
    non-dialysis patients and homecare medical services.

 

    The Company will operate itself or through subsidiaries at home
    and abroad.

 

    (2) The Company shall be entitled to enter into any and all
    business transactions and take any and all measures which seem
    to be necessary or useful to achieve the objects of the Company
    and may, in particular, participate in other enterprises of the
    same or similar kind, take over the management
    and/or the
    representation of such enterprises, transfer company divisions,
    including essential company divisions, to enterprises in which
    the Company holds an interest and establish branches at home and
    abroad.

 

     ART. 3

    

 

    NOTIFICATIONS
    AND PUBLICATIONS
    

 

    (1) All notifications of the Company shall be made in the
    electronic Federal Gazette (Elektronischer
    Bundesanzeiger).

 

    (2) English short versions of the invitations to general
    meetings which must provide for the place, date and time and the
    items on the agenda of the general meeting and the prerequisites
    of participation in the meetings as well as English short
    versions of the other notifications shall also be published in
    The Wall Street Journal and in The New York Times. The
    newspapers mentioned above are not journals used by the Company
    for notifications in the sense

 

    of Article 3 paragraph (1); such publications shall not be a
    pre-condition for a valid notification of the Company. With the
    consent of the supervisory board the general partner may
    determine deviations from this provision.

 

    II. Capital and Shares

 

     ART. 4

    

 

    CAPITAL
    

 

    (1) The capital of the Company amounts to
    EUR 299,630,963.00 (in words: two hundred ninety nine
    million six hundred thirty thousand nine hundred sixty three
    Euro) and is divided into 295,746,635 (in words: two hundred
    ninety five million seven hundred forty six thousand six hundred
    thirty five) bearer ordinary shares and 3,884,328 (in words:
    three million eight hundred eighty four thousand three hundred
    twenty eight) non-voting bearer preference shares.

 

    In case of issuance of non-voting bearer preference shares,
    particulars thereof are set forth in Article 19.

 

    No consent of the preferred shareholders shall be required for
    the issuance of non-voting bearer preference shares which, for
    the distribution of the profits or the corporate assets, will be
    equal to or be preferred to the non-voting bearer preference
    shares existing from time to time, if and to the extent that the
    subscription rights of the preference shareholders are not
    excluded.

 

    (2) The capital stock in the amount of DM 100,000.00 (in
    words: one hundred thousand Deutsche Mark) available at the
    transformation of the Company into a Stock Corporation was
    raised through change of the legal form of the legal entity of
    previous legal form, Fresenius Medical Care GmbH with registered
    office in Hof an der Saale.

 

    The capital stock in the amount of EUR 250,271,178.24 (in
    words: two hundred and fifty million two hundred and seventy one
    thousand one hundred seventy eight Euro and twenty four Cent)
    available at the transformation of the Company into a
    partnership limited by shares (KGaA) was raised through change
    of the legal form of the legal entity of previous legal form,
    Fresenius Medical Care AG with registered office in Hof an der
    Saale.

 

    (3) The general partner is authorized up to 10 May
    2015 to increase the share capital of the Company with the
    approval of the supervisory board once or several times by up to
    a total of EUR 35,000,000.00 (in words: thirty-five million
    Euros) for cash by the issue of new bearer ordinary shares
    (Authorized Capital 2010/I). The number of shares must be
    increased in the same proportion as the share capital. The
    shareholders have, in principle, a pre-emption right. The new
    shares can also be taken up by credit institutions nominated by
    the general partner with the obligation to offer them to the
    shareholders of the Company (indirect pre-emption right). The
    general partner is, however, authorized with the approval of the
    supervisory board to exclude the pre-emption right of the
    shareholders in order to exclude fractions from the pre-emption
    right. The general partner is also authorized with the approval
    of the supervisory board to determine the other details for the
    implementation of capital increases from the Authorized Capital
    2010/I. The supervisory board is authorized to amend the wording
    of the Articles of Association accordingly after complete or
    partial implementation of the increase of the share capital from
    the Authorized Capital 2010/I or after the expiry of the period
    of authorization.

 

    (4) The general partner is authorized up to 10 May
    2015 to increase the share capital of the Company with the
    approval of the supervisory board once or several times by up to
    a total of EUR 25,000,000.00 (in words: twenty-five million
    Euros) for cash or contributions in kind by the issue of new
    bearer ordinary shares (Authorized Capital 2010/II). The number
    of shares must be increased in the same proportion as the share
    capital. The shareholders have, in principle, a pre-emption
    right. The new shares can also be taken up by credit
    institutions nominated by the general partner with the
    obligation to offer them to the shareholders of the Company
    (indirect pre-emption right). The general partner is, however,
    authorized with the approval of the supervisory board to exclude
    the pre-emption right of the shareholders:

 

			
	 	    • 
	
    in the case of one or more capital increases for contributions
    in kind for the purpose of acquiring companies, parts of
    companies, interests in companies or other assets, or

    

    2

 

 

			
	 	    • 
	
    in the case of one or more capital increases for cash if the
    issue price for the shares does not significantly fall below the
    stock exchange price of the shares of the same class already
    listed and the proportionate amount of the share capital of the
    Company attributable to the shares issued with exclusion of
    pre-emption rights exceeds 10% of the share capital neither at
    the time of this authorization coming into effect nor at the
    time of the use of the authorization. To be set-off against this
    limitation is the proportionate amount of share capital
    attributable to new shares or shares of the Company previously
    acquired by the Company itself which are issued or sold during
    the period of validity of this authorization with exclusion of
    pre-emption rights in direct, analogous or corresponding
    application of Section 186 (3) sent. 4 German Stock
    Corporation Act and the proportionate amount of the share
    capital attributable to shares issued or to be issued to satisfy
    option or conversion rights or discharge option or conversion
    obligations from bonds, if the bonds are issued during the
    period of validity of this authorization with exclusion of
    pre-emption rights in analogous application of Section 186
    (3) sent. 4 German Stock Corporation Act.

 

    The general partner is also authorized with the approval of the
    supervisory board to determine the further details for the
    implementation of capital increases from the Authorized Capital
    2010/II. The supervisory board is authorized to amend the
    wording of the Articles of Association accordingly after
    complete or partial implementation of the increase of the share
    capital from the Authorized Capital 2010/II or after the expiry
    of the period of authorization.

 

    (5) The capital of the Company is conditionally increased
    by up to EUR 3,057,196.00 (in words: three million fifty
    seven thousand one hundred ninety six Euro) by the issue of up
    to 3,002,072 (in words: three million two thousand seventy two)
    new non-voting bearer preference shares and by up to 55,124 (in
    words: fifty five thousand one hundred twenty four) new bearer
    ordinary shares. The conditional capital increase will be
    implemented only to the extent that, in accordance with the
    employee participation program resolved on by the general
    meeting of 24.09.1996 convertible bonds relating to non-par
    value shares will be issued and the holders of convertible
    bonds exercise their right of conversion. The new non-voting
    bearer preference shares and the new bearer ordinary shares
    shall participate in profits from the beginning of the fiscal
    year in which they arise by the exercise of the right of
    conversion.

 

    (6) The capital of the Company is conditionally increased
    by up to EUR 2,311,134.00 (in words: two million three
    hundred eleven thousand one hundred thirty four Euro) by the
    issue of up to 2,301,036 (in words: two million three hundred
    one thousand thirty six) new non-voting bearer preference shares
    and by up to 10,098 (in words: ten thousand ninety eight) new
    bearer ordinary shares. The conditional capital increase will be
    implemented only to the extent that, in accordance with the
    share option program resolved on by the general meetings of
    10.06.1998 and 30.05.2000, share options relating to non-par
    value shares have been issued and the holders exercise their
    options. The new non-voting bearer preference shares and bearer
    ordinary shares shall participate in profits from the beginning
    of the fiscal year in which they are issued.

 

    (7) The capital of the Company is conditionally increased
    by up to EUR 6,349,674.00 (in words: six million three
    hundred forty nine thousand six hundred seventy four Euro) by
    the issue of up to 3,169,444 (in words: three million one
    hundred sixty nine thousand four hundred forty four) new
    non-voting bearer preference shares and by up to 3.180.230 (in
    words: three million one hundred eighty thousand two hundred
    thirty) new bearer ordinary shares. The conditional capital
    increase will be implemented only to the extent that, in
    accordance with the international employee participation program
    resolved on by the general meeting of 23.05.2001 convertible
    bonds relating to non-par value shares have been issued and the
    holders of convertible bonds exercise their right of conversion.
    The new non-voting bearer preference shares and the new bearer
    ordinary shares shall participate in profits from the beginning
    of the fiscal year in which they arise by the exercise of the
    right of conversion.

 

    (8) The capital of the Company is conditionally increased
    by up to EUR 14,444,133.00 (in words: fourteen million four
    hundred forty four thousand one hundred thirty three Euro) by
    the issue of up to 14,444,133 (in words: fourteen million four
    hundred forty four thousand one hundred thirty three) new bearer
    ordinary shares. The conditional capital increase will be
    implemented only to the extent that options have been issued in
    accordance with the Stock Option Program 2006 under the
    resolutions of the general meeting of 9 May 2006 and
    15 May 2007, the holders of options exercise their right
    and the Company for the satisfaction of the options does not
    grant any of its own shares, for the granting and processing of
    options of members of the management board of the general
    partner,

    

    3

 

    its supervisory board is exclusively competent. The new bearer
    ordinary shares participate in profits from the beginning of the
    financial year in which they are issued.

 

    (9) In case of a capital increase, the profit participation
    may be determined in derogation from Section 60
    (2) German Stock Corporation Act (AktG).

 

     ART. 5

    

 

    SHARES
    

 

    (1) The shares will be non-par value bearer shares.

 

    (2) The Company shall be entitled to issue share
    certificates made out to bearer each evidencing a plurality of
    shares (collective share certificates). There is no claim of the
    shareholders to share certificates with respect to their
    individual participation.

 

    (3) The form of the share certificates and of the dividend
    coupons and renewal coupons shall be determined by the general
    partner with the consent of the supervisory board.

 

    (4) The Company shall take the necessary measures to
    achieve that its shares will, preferably, be admitted for
    official quotation on the stock exchange in Frankfurt am Main
    and in suitable form — e.g. as American Depositary
    Shares — on the New York Stock Exchange and that such
    admissions will be maintained. With the consent of the
    supervisory board which must decide unanimously on such consent,
    the general partner may determine deviations from this provision.

 

    III. Constitution of the Company

 

    A. General Partner

 

    ART. 6

    

 

    GENERAL
    PARTNER, CAPITAL CONTRIBUTION, LEGAL RELATIONSHIPS AND
    RESIGNATION
    

 

    (1) General partner of the Company is

 

    Fresenius
    Medical Care Management AG

 

    with registered office in Hof an der Saale.

 

    (2) The general partner has not made a capital
    contribution. It shall neither participate in the profit or the
    loss of the Company nor in its assets.

 

    (3) The general partner will cease to be general partner of
    the Company if and when all shares in the general partner are no
    longer held directly or indirectly by a person holding more than
    25 per cent of the capital of the Company, directly or
    indirectly via a controlled enterprise in the sense of
    Section 17 (1) German Stock Corporation Act
    (AktG); this will not apply if and when all shares in the
    general partner are held directly or indirectly by the Company.

 

    Additionally, the general partner will cease to be general
    partner of the Company, if the shares in the general partner are
    acquired by a person

 

			
	 	    • 
	
    who does not acquire shares of the Company in the amount of more
    than 25 per cent of the capital of the Company or

	 
	 	    • 
	
    who had not, within three months after the effectiveness of such
    acquisition, submitted a voluntary or mandatory takeover offer
    to the shareholders of the Company according to the rules of the
    German Takeover Act (WpÜG); the fair consideration offered
    to the shareholders must also reflect the consideration which
    the purchaser had paid for the share in the general partner, if
    the amount for such consideration is above the amount of its
    equity capital.

    

    4

 

 

    The other grounds for withdrawal as provided for by law remain
    unaffected with respect to the general partner.

 

    (4) If the general partner withdraws from the Company or if
    such withdrawal can be foreseen, the supervisory board is
    authorized and obliged to admit immediately, or at the time of
    the withdrawal of the general partner, as new general partner of
    the Company a corporation whose shares are fully owned by the
    Company. If the general partner withdraws from the Company while
    no new general partner is admitted simultaneously as aforesaid,
    the Company shall for the time being be continued by the limited
    shareholders of the Company alone. In such case, the supervisory
    board shall immediately apply for the appointment of a
    substitute representative who will represent the Company until
    the admission of a new general partner according to sentence 1
    of this paragraph, in particular with respect to the acquisition
    or formation of such new general partner.

 

    The supervisory board is authorized to adjust the version of the
    Articles of Association so as to reflect the change of the
    general partner.

 

    (5) In the case of the continuing of the Company pursuant
    to Article 6 paragraph (4) of these Articles of
    Association or in the case that all shares in the general
    partner are held directly or indirectly by the Company an
    extraordinary general meeting or the next annual general meeting
    shall decide about the transformation of the Company into a
    stock corporation (Aktiengesellschaft). The resolution
    with respect to such transformation can be taken with a simple
    majority of the votes cast. The general partner is obliged to
    consent to such transformation decided by the general meeting.

 

    ART. 7

    

 

    MANAGEMENT
    AND REPRESENTATION OF THE COMPANY, REIMBURSEMENT OF EXPENSES AND
    REMUNERATION
    

 

    (1) The Company shall be represented by its general
    partner. Vis-à-vis the general partner the Company shall be
    represented by the supervisory board.

 

    (2) The general partner shall be responsible for management
    of the Company. The general partner’s management authority
    also encompasses exceptional management measures. The right of
    the shareholders to consent to exceptional management measures
    at the general meeting is excluded.

 

    (3) The general partner shall be reimbursed for any and all
    expenses in connection with management of the Company’s
    business, which includes remuneration of the members of its
    executive bodies. The general partner shall invoice its expenses
    monthly; it is entitled to claim payment in advance.

 

    (4) As consideration for assuming the management of the
    Company and the liability, the general partner shall receive a
    non-profit-and-loss-based annual remuneration of 4 per cent
    of its equity capital.

 

    (5) The general partner is not authorized to undertake
    transactions for its own or for another’s account outside
    the scope of its responsibilities within the Company.

 

    B. Supervisory Board

 

    ART. 8

    

 

    ELECTION AND
    TERM OF OFFICE OF THE SUPERVISORY BOARD
    

 

    (1) The supervisory board consists of six (6) members.

 

    All six (6) members shall be elected by the general meeting
    according to the provisions of the German Stock Corporation Act
    (AktG). The resolution can only be taken with a majority
    of a minimum of 75 per cent of the votes cast.

 

    (2) Unless expressly otherwise resolved by the general
    meeting, the supervisory board members shall be appointed to
    hold office until the end of the ordinary general meeting which
    resolves on the discharge for the fourth fiscal year after
    commencement of the term of office. The year in which the term
    of office commences shall not be considered for this
    calculation. Re-election of supervisory board members shall be
    permissible.

    

    5

 

    (3) If a member elected by the general meeting withdraws
    from the supervisory board before expiration of his term of
    office, a new member is to be elected in the next general
    meeting to replace the withdrawing member. The newly elected
    member shall hold office for the remaining term of office of the
    withdrawing member.

 

    (4) The general meeting may, for the supervisory board
    members to be elected by it, appoint substitute members who will
    become members of the supervisory board on the basis of a
    specific order to be determined upon election if and when
    supervisory board members withdraw before expiration of their
    term of office. Their position as substitute members shall
    revive if and when the general meeting elects a new member
    instead of the withdrawing supervisory board member replaced by
    such substitute member. The term of office of the substitute
    member shall end upon completion of the general meeting in which
    an election according to Article 8 paragraph (3) is
    made.

 

    (5) Each member of the supervisory board may resign from
    office by giving one month’s written notice even without
    good cause.

 

    ART. 9

    

 

    CONSTITUTION
    OF THE SUPERVISORY BOARD
    

 

    (1) Following the general meeting in which the supervisory
    board has been newly elected, the supervisory board shall hold a
    meeting without special notice of meeting and, where necessary,
    shall elect in such meeting from among its members a chairman
    and a deputy chairman for the whole term of office of the
    elected persons as supervisory board members.

 

    (2) If the chairman or his deputy resigns his office before
    expiration of his term of office, the supervisory board shall
    immediately hold a new election to replace the resigning
    chairman/deputy.

 

    ART. 10

    

 

    MEETINGS AND
    RESOLUTIONS OF THE SUPERVISORY BOARD
    

 

    (1) The meetings of the supervisory board shall be called
    by the chairman by notice subject to a notice period of fourteen
    (14) days. The meetings may be called in writing, by fax or
    by other electronic means of communication. The items on the
    agenda must be stated in the invitation to the meeting.
    Notwithstanding sentence 2, in urgent cases, this period may be
    shortened and the meeting may be called by telegram, telex or
    telephone.

 

    (2) The meetings of the supervisory board shall in the
    regular case be by personal attendance. It is, however,
    admissible that meetings of the supervisory board be held by way
    of a video conference or that individual supervisory board
    members participate by way of video link, provided that in these
    cases the passing of resolutions also takes place by way of a
    video conference or video link. Outside of meetings, resolutions
    in writing, telegraph, telex, fax, telephone or electronic
    communication
    (e-mail
    etc.) are admissible, if this is ordered by the chairman of the
    supervisory board, or in the event of his being unable to act,
    by his deputy.

 

    (3) The supervisory board shall constitute a quorum if half
    the members making up the entire board take part in the adoption
    of the resolution.

 

    (4) If members of the supervisory board are prevented from
    attending the meeting, they may have another member of the
    supervisory board submit their written votes. Such delivery of
    the written vote shall be deemed to be participation in the
    adoption of the resolution.

 

    (5) Resolutions of the supervisory board shall require the
    majority of the votes cast unless otherwise provided by law or
    the Articles of Association. In case of a tie, a new vote shall
    be taken on the same issue at the request of the chairman of the
    supervisory board or of another member of the supervisory board.
    In the event that such new vote leads again to a tie, the
    chairman of the supervisory board shall have two (2) votes
    (to the legally permissible extent, this shall apply also to
    committees of the supervisory board of which he is a member).
    Article 10 paragraph (4) shall be applicable to the
    casting of the second vote. The deputy chairman of the
    supervisory board shall not be entitled to such second vote.

    

    6

 

    (6) Minutes of the meetings of the supervisory board shall
    be prepared in the English language. The minutes shall be signed
    by the chairman of the meeting. Any minutes to be prepared
    outside of the meeting by personal attendance
    (Präsenzsitzung), as outlined in Article 10
    paragraph (2) with respect to resolutions shall be signed
    by the chairman of the supervisory board. On demand of a member
    of the supervisory board a German translation of the minutes
    shall be prepared.

 

    ART. 11

    

 

    RIGHTS AND
    DUTIES OF THE SUPERVISORY BOARD
    

 

    (1) The supervisory board shall have the rights and duties
    defined by mandatory legal provisions and these Articles of
    Association.

 

    (2) The supervisory board shall, at any time, have the
    right to supervise the entire management of the general partner
    and to inspect and audit all books and records, including the
    minutes of the meetings of the management board of the general
    partner, as well as the assets of the Company. This right to
    inspect and audit can also be claimed by any individual
    supervisory board member. The supervisory board member must
    direct his request to the chairman of the supervisory board who
    shall pass the request on to the chairman of the management
    board of the general partner or, in the case that a chairman
    does not exist, to the management board of the general partner.

 

    (3) The general partner shall regularly report to the
    supervisory board. In addition, the supervisory board may
    request the submission of a report if and when there is
    reasonable cause therefore including where such cause relates to
    a business event at an affiliated company which has become known
    to the general partner and which may substantially influence the
    situation of the Company. Article 11 paragraph (2),
    sentences 2 and 3 apply mutatis mutandis with the proviso that a
    report only to the supervisory board can be demanded.

 

    (4) If the Company holds a participation in its general
    partner, all rights of the Company under and with respect to
    such participation (e.g. voting rights, information rights etc.)
    will be exercised by the supervisory board.

 

    (5) The supervisory board shall be entitled, without
    resolution of the general meeting, to make any amendments to the
    Articles of Association which concern only the wording.

 

    ART. 12

    

 

    RULES OF
    PROCEDURE OF THE SUPERVISORY BOARD, AUDIT AND

    

    CORPORATE
    GOVERNANCE COMMITTEE
    

 

    (1) The supervisory board shall, within the statutory
    provisions and the Articles of Association, provide itself with
    rules of procedure which shall, in particular, also take account
    of the interests of the non-German speaking supervisory board
    members.

 

    (2) The supervisory board has an audit and corporate
    governance committee. The audit and corporate governance
    committee has three members at least two of whom are independent
    members. Independent members are persons who, apart from their
    membership of the supervisory board of the general partner or of
    Fresenius AG, have no significant business, professional or
    personal relations with the Company or any of its affiliates.
    The audit and corporate governance committee reviews the report
    of the general partner on relations to affiliates without
    affecting the competence of the supervisory board. The report of
    the supervisory board is to contain a report on the activity of
    the audit and corporate governance committee and its proposals.
    The rules of procedures of the audit and corporate governance
    committee shall provide more detailed provisions.

 

    ART. 13

    

 

    REMUNERATION
    OF SUPERVISORY BOARD MEMBERS
    

 

    (1) The members of the supervisory board shall be
    reimbursed for the expenses incurred in the exercise of their
    office, including any value-added tax.

    

    7

 

    (2) Each member of the supervisory board shall receive a
    fixed fee of USD 80,000.00 per annum for each full fiscal
    year, payable in four equal instalments at the end of each
    calendar quarter.

 

    In the event that the general meeting, taking into consideration
    the annual results, resolves a higher remuneration by a three
    fourths majority of the votes cast, such higher remuneration
    shall be payable.

 

    (3) The chairman of the supervisory board shall receive
    additional remuneration in the amount of USD 80,000.00 and
    his deputy additional remuneration in the amount of
    USD 40,000.00.

 

    (4) As a member of a committee, a supervisory board member
    shall receive, in addition, USD 30,000.00 per year, or as
    chairman of a committee, USD 50,000.00 per year, payable in
    each case in four equal installments at the end of each calendar
    quarter.

 

    (5) If a fiscal year is not a complete calendar year, the
    remuneration shall be paid on a pro rata temporis basis.

 

    (6) To the extent that a member of the supervisory board is
    at the same time member of the supervisory board of the General
    Partner Fresenius Medical Care Management AG and receives
    remuneration for his services as member of the supervisory board
    of Fresenius Medical Care Management AG, the remuneration
    according to Article 13 (2) will be reduced to half of
    it. The same shall apply in relation to additional remuneration
    of the Chairman and his deputy according to Article 13
    (3) if such person is, at the same time, the chairman or
    his deputy, respectively, of the supervisory board of Fresenius
    Medical Care Management AG. If the deputy of the chairman of the
    supervisory board of the Company is at the same time chairman of
    the supervisory board of Fresenius Medical Care Management AG he
    shall not receive additional remuneration according to
    Article 13 (3) for his services as deputy of the
    chairman of the Company.

 

    (7) The Company shall pay the remuneration of the
    supervisory board members subject to statutory deductions.

 

    (8) The Company shall provide the members of the
    supervisory board with an insurance protection regarding the
    fulfilment of their duties as such members of the supervisory
    board which is subject to an appropriate deductible.

 

    C. Joint Committee

 

    ART. 13A

    

 

    JOINT
    COMMITTEE
    

 

    The Company has a joint committee consisting of two members of
    the supervisory board of the general partner delegated by the
    general partner and two members of the supervisory board of the
    Company (Joint Committee). The general partner shall appoint one
    of its delegates to be chairman of the Joint Committee.

 

    ART. 13B

    

 

    APPOINTMENT
    AND PERIOD OF OFFICE OF MEMBERS OF THE JOINT COMMITTEE
    

 

    (1) Section 103 (2) German Stock Corporation Act
    (AktG) shall apply to the members of the joint committee
    to be delegated by the general partner.

 

    (2) The members of the supervisory board of the Company on
    the joint committee will be appointed by resolution of the
    general meeting. For the appointment and removal of members of
    the supervisory board of the Company in the joint committee, the
    provisions on the election and removal of members of the
    supervisory board in Sections 103 (1) and (5), 124
    (3) sent. 1, 127, 137, 285 (1) sent. 2 No. 1
    German Stock Corporation Act (AktG) apply accordingly. If
    a member of the supervisory board of the Company on the joint
    committee leaves the joint committee prior to the expiry of his
    period of office and no replacement member is appointed, the
    supervisory board of the Company shall appoint a replacement
    member from among its members, the period of office of whom will
    end at the ending of the next ordinary general meeting of the
    Company.

    

    8

 

    (3) For the members of the joint committee Section 103
    (3) sent. 1 and 4 German Stock Corporation Act
    (AktG) apply accordingly. The joint committee shall
    decide on resolutions with a simple majority.

 

    (4) The provisions in Art. 8 (2) to (5) shall
    apply to the election and periods of office of members of the
    joint committee unless otherwise provided in subsecs.
    (1) and (2).

 

    ART. 13C

    

 

    RIGHTS AND
    DUTIES OF THE JOINT COMMITTEE
    

 

    (1) The general partner requires the approval of the joint
    committee for the following matters:

 

    a) transactions between the Company and companies
    controlled by it on the one hand and a company which controls
    the Company or a company which is controlled by the controlling
    company, without at the same time being controlled by the
    Company on the other side, if considerable importance is
    attributed to them and the consideration in the transaction in a
    single case or — in the case of long-term
    transactions — the annual expense exceeds 0.25% of the
    group turnover. The group turnover as shown in the group
    financial statements of the Company presented most recently to
    the general meeting according to Sections 278 (3), 176
    (1) sent. 1 German Stock Corporation Act (AktG) is
    decisive.

 

    b) The acquisition and sale of significant participations
    and parts of companies;

 

    c) the spin-off of significant parts of the business from
    the assets of the Company or of a company in which it holds
    directly or indirectly all the shares;

 

    d) part mergers which refer to a significant part of the
    business;

 

    e) conclusion of inter-company agreements between a company
    significantly under the control of the Company and a third party;

 

    f) conclusion of leases of operations with third parties
    insofar as the subject matter of the lease is a significant part
    of the business;

 

    g) the stock market flotation of significant companies
    controlled by the Company;

 

    h) the conclusion of profit-sharing agreements between a
    company significantly controlled by the Company and a third
    party.

 

    (2) Matters referred to in (1) b) to h) are
    significant if 40% of the group turnover, the group balance
    sheet total and the group profit (annual surplus prior to
    interest and tax/EBIT) is affected by the matter. The
    significance shall be determined on the basis of the
    mathematical average of the said figures in the audited and
    unreservedly certified group accounts of the Company in the
    previous three financial years.

 

    (3) The competences and rights of the general meeting under
    statute and the Articles of Association remain unaffected.

 

    ART. 13D

    

 

    MEETINGS AND
    RESOLUTIONS OF THE JOINT COMMITTEE
    

 

    (1) Meetings of the joint committee will be called by its
    chairman stating the matter which is to be the subject of a
    resolution.

 

    (2) The chairman of the joint committee shall with the
    invitation, but at the latest the third day prior to the meeting
    of the joint committee, transmit a report of the general partner
    on the matters which are the subject matter of resolutions. The
    report shall conclude with a draft resolution of the general
    partner.

 

    (3) Every member of the joint committee can demand
    information on all affairs of the Company which are the subject
    matter of resolutions, from the general partner. At the request
    of two members of the joint committee, the

    

    9

 

    members of the joint committee are to be granted the facility to
    inspect the books and documents of the Company if and to the
    extent a reference to the subject matter of the resolution
    exists.

 

    (4) The joint committee has a quorum if at least three
    members participate in the taking of the resolution. If a
    resolution is not passed because of the lack of a quorum, the
    chairman of the joint committee shall again call a meeting of
    the joint committee with notice of at least one week, which
    shall then have a quorum if at least two members participate in
    the taking of the resolution. The joint committee decides by a
    majority of the votes. Every member of the joint committee has
    one vote. In the case of a tie, a new vote on the same subject
    is to be taken on the application of the chairman or another
    member of the joint committee. In that vote, if there is also a
    tie, the chairman of the joint committee has two votes.

 

    (5) Unless otherwise provided in (1) to (4), Art. 10
    of the Articles of Association shall apply to the meetings and
    the resolutions of the joint committee.

 

    ART. 13E

    

 

    RULES OF
    PROCEDURE, REPORT, REMUNERATION
    

 

    (1) The joint committee can, subject to mandatory legal
    provisions and the Articles of Association of the Company give
    itself rules of procedure which will, in particular, take
    account of the interests of the non-German speaking members of
    the joint committee.

 

    (2) If the joint committee has met, it shall report to the
    general meeting on its activities. Section 171
    (2) sent. 1 and 2 (first half sentence) German Stock
    Corporation Act (AktG) and Section 176
    (1) sent. 1 German Stock Corporation Act (AktG)
    shall apply mutatis mutandis. If resolutions are passed by the
    exercise of the second vote of the chairman of the joint
    committee, this is to be disclosed in the report.

 

    (3) The members of the joint committee shall receive
    USD 3,500.00 for a meeting. Art. 13 (1), (7) and
    (8) of the Articles of Association apply accordingly.

 

    ART. 13F

    

 

    DUTY OF CARE
    AND RESPONSIBILITY OF THE MEMBERS OF THE JOINT COMMITTEE
    

 

    Section 116 German Stock Corporation Act (AktG)
    applies to the members of the joint committee mutatis mutandis.

 

    D. General Meeting

 

    ART. 14

    

 

    CALLING OF
    THE GENERAL MEETING
    

 

    (1) The general meeting is, unless a shorter period is not
    permitted by law, to be called at least thirty days prior to the
    day of the general meeting. This notice period shall be extended
    by the days of the period for registration (Article 15
    (1)). The day of the general meeting and the day of calling it
    shall not be included in the calculation of the notice period.

 

    (2) No later than on the last day of the convocation
    period, also the English short version pursuant to
    Article 3 paragraph (2) shall be published, if
    necessary.

 

    (3) The general meeting shall be held at the place where
    the registered office of the Company is located, or in a German
    city where a stock exchange is situated or at the place where
    the registered office of a domestic affiliated company is
    located.

    

    10

 

    ART. 15

    

 

    ATTENDANCE
    AT THE GENERAL MEETING AND EXERCISE OF THE VOTING RIGHT
    

 

    (1) Only those shareholders are entitled to attend the
    general meeting and to exercise the voting right who have
    registered and provided evidence of their entitlement. As
    evidence of entitlement, evidence of the shareholding by the
    depositary institution is required. The evidence must relate to
    the beginning of the 21st day (0:00 a.m. at the
    registered office of the Company) prior to the general meeting.
    The registration and the evidence of entitlement must be
    received by the Company in text form in the German or English
    language at least six days prior to the general meeting under
    the address specified in the invitation to the general meeting
    for that purpose. In the invitation, a shorter period measured
    in days can be provided. The day of the general meeting and the
    day of the receipt of the registration and the evidence shall
    not be included in the calculation of the period.

 

    (2) The members of the management board of the general
    partner and of the supervisory board should personally attend
    the general meeting. If it is not possible for a member of the
    supervisory board to attend at the place of the general meeting,
    in particular, because he is abroad for cause, he may
    participate in the general meeting by way of picture and sound
    transmission.

 

    (3) The voting right can be exercised by a proxy. To the
    extent no simplification is specified in the invitation to the
    General Meeting, the issue of the proxy, its revocation and the
    evidence of authorization to the Company require text form;
    Section 135 German Stock Corporation Act remains unaffected.

 

    ART. 16

    

 

    DATE OF THE
    ORDINARY GENERAL MEETING
    

 

    The general meeting which resolves on the adoption of the annual
    financial statement and on the discharge of the general partner
    and the supervisory board and on the disposition of the profits
    (ordinary general meeting) shall be held within the first eight
    (8) months of a fiscal year.

 

    ART. 17

    

 

    CHAIRMANSHIP
    AT THE GENERAL MEETING AND VOTING
    

 

    (1) The general meeting shall be chaired by the chairman of
    the supervisory board or, if he is prevented or at the request
    of the chairman of the supervisory board, by another supervisory
    board member to be designated by the chairman of the supervisory
    board. If and when no such designation has been made and the
    chairman of the supervisory board is prevented, another member
    to be designated by the supervisory board shall preside over the
    general meeting.

 

    (2) The chairman shall chair the meeting and determine the
    order of items to be dealt with as well as the kind and form of
    the voting. The chairman is entitled to reasonably limit the
    speaking time of the shareholders and the time to ask questions
    from the beginning of the general meeting on, if such limitation
    is allowed by law.

 

    (3) The majorities of the votes cast and of the capital
    stock represented for the adoption of the resolution which are
    required for the resolutions of the general meeting shall be
    governed by the statutory provisions, unless otherwise provided
    for in these Articles of Association. In case of a tie, a
    proposal shall be deemed denied.

 

    (4) Each ordinary share shall grant one (1) vote at
    the general meeting. The preference shares have no voting
    rights, unless otherwise required by mandatory legal provisions;
    otherwise, sentence 1 of this paragraph shall apply mutatis
    mutandis.

 

    (5) The chairman can decide that the entire general meeting
    or extracts therefrom be transmitted in sound
    and/or
    picture. Such transmission can even be in a form to which the
    public has unlimited access. The form of the transmission should
    be made known in the invitation.

    

    11

 

    (6) To the extent that the resolutions of the general
    meeting are subject to the consent of the general partner, the
    general partner shall declare at the general meeting whether
    consent to the resolutions will be given or will be refused.

 

    IV. Annual Financial Statement and Disposition of Profits

 

    ART. 18

    

 

    FISCAL YEAR,
    RENDERING OF ACCOUNTS
    

 

    (1) The fiscal year shall be the calendar year.

 

    (2) Within the first three (3) months of the fiscal
    year but no later than within the maximum period required by
    mandatory legal provisions, the general partner shall prepare
    the annual financial statement and the management report for the
    preceding fiscal year and submit the same to the supervisory
    board without delay. The general partner may allocate in the
    annual financial statement a part of the annual net profit up to
    the half of the annual net profit to other revenue reserves.

 

    (3) The supervisory board shall commission the audit by the
    auditors of the financial statements. Before the audit report of
    the auditors is forwarded to the supervisory board, the general
    partner shall be given the opportunity to express its opinion.

 

    (4) At the same time as the submission of the annual
    financial statement and the management report the general
    partner shall provide the supervisory board with the proposal on
    the appropriation of the net profits.

 

    (5) The annual financial statement shall be approved by a
    resolution of the general meeting with the consent of the
    general partner.

 

    (6) Article 18 paragraphs (2) and (3) shall
    apply correspondingly to group financial statements and to a
    report on the economic group position, as far as
    Section 170 (1) sent. 2 German Stock Corporation Act
    (AktG) is applicable to the Company as Parent Company.

 

    ART. 19

    

 

    DISPOSITION
    OF PROFITS
    

 

    (1) The general meeting shall resolve on the disposition of
    the balance sheet profits subject to the following paragraphs
    (2) to (4) of this Article.

 

    (2) Out of the annual balance sheet profits, the non-voting
    bearer preference shares shall receive a dividend which exceeds
    that for the ordinary shares by an amount of EUR 0.02 per
    preference share, but at least a dividend in an amount of
    EUR 0.04 per preference share.

 

    (3) The minimum dividend of EUR 0.04 per preference
    share shall take precedence over the distribution of a dividend
    on the ordinary shares.

 

    (4) In the event that the balance sheet profits for one or
    more fiscal years are insufficient to distribute EUR 0.04
    per preference share, the lacking sums shall be paid
    subsequently without interest out of the balance sheet profits
    for the following fiscal years, i.e. after distribution of the
    minimum dividend on the preference shares for these fiscal years
    and before distribution of a dividend on the ordinary shares.
    The right to subsequent payment shall be part of the profit
    share for the fiscal year from the balance sheet profits of
    which the subsequent payment on the preference shares is made.

    

    12

 

    V. Miscellaneous

 

    ART. 20

    

 

    PARTIAL
    INVALIDITY
    

 

    Should any of the provisions of these Articles of Association be
    or become ineffective in whole or in part, or should these
    Articles of Association have a regulatory gap, the validity of
    the remaining provisions hereof shall not be affected. The
    Parties shall replace any such ineffective provision by an
    adequate provision that, as far as legally possible, comes
    closest to the intent and purpose of these Articles of
    Association; The same shall apply in case of a regulatory gap.

 

    ART. 21

    

 

    FORMATION
    EXPENSES
    

 

    (1) The formation expenses (Notary’s fees, court
    costs, costs of notification) amount up to DM 5,000.00 (in
    words: five thousand German Marks).

 

    (2) Additionally, the Company has to bear the expenses for
    the transformation of Fresenius Medical Care AG into Fresenius
    Medical Care AG & Co. KGaA in an amount up to
    EUR 7,500,000.00 (in words: seven million five hundred
    thousand Euro).

    

    13

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