Document:

Exhibit 10.12

 

Translation
of $4.5 million loan between Lotus and TCL

 

Control
number:

 

Agreement
of Internal loans of TCL Industries Holdings (Hong Kong)

 

Debitor (“Party
A)”): Lotus Pacific, Inc.

Creditor
(“Party B”): TCL Industries Holdings (Hong Kong) Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million five hundred thousand US dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Three months between 10/22/2003 and 1/22/2004. If the beginning date of
the loan on any subsequent amendment(s) to renew this loan is different from
this original date, the beginning date on this agreement should used for the
purpose of calculation. Any subsequent extensions of this loan shall be a part
to this agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

1

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

 

2

 

(2) Rights
and liabilities of Party B

(A) The rights
of Party B

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless
otherwise mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s

 

3

 

business;

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party A:  Legal person
  or authorized signer:

  	
  /s/Vincent Yan, President &
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: October 21, 2003

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Lu Zhongli, Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: October 21, 2003

  	
   

  
					

 

4

 

Translation
of $4.5 million loan between Lotus and TCL

 

Control
number:

 

Agreement
of Internal loans of TCL Industries Holdings (Hong Kong)

 

Debitor (“Party
A)”): Lotus Pacific, Inc.

Creditor
(“Party B”): TCL Industries Holdings (Hong Kong) Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million five hundred thousand US dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Six months between 1/22/2004 and 10/21/2004. If the beginning date of
the loan on any subsequent amendment(s) to renew this loan is different from
this original date, the beginning date on this agreement should used for the
purpose of calculation. Any subsequent extensions of this loan shall be a part
to this agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal documents
for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

1

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

 

2

 

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless
otherwise mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s

 

3

 

business;

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The loan
agreement shall be effective once it is properly signed by the legal persons of
the two parties. The agreement will be terminated once all the principal and
interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party A:  Legal
  person or authorized signer:

  	
  /s/Vincent Yan, President &
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: February 11, 2004

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Lu Zhongli, Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: February 11, 2004

  	
   

  
					

 

4

 

Translation
of $4.5 million loan between Lotus and TCL

 

Control
number:

 

Agreement
of Internal loans of TCL Industries Holdings (Hong Kong)

 

Debitor (“Party
A)”): Lotus Pacific, Inc.

Creditor
(“Party B”): TCL Industries Holdings (Hong Kong) Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million five hundred thousand US dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Three months between 10/22/2004 and 1/22/2005. If the beginning date of
the loan on any subsequent amendment(s) to renew this loan is different from
this original date, the beginning date on this agreement should used for the
purpose of calculation. Any subsequent extensions of this loan shall be a part
to this agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

1

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

 

2

 

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless
otherwise mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s

 

3

 

business;

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
   

  	
  Party A:  Legal
  person or authorized signer:

  	
  /s/Vincent Yan, President &
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: July 23, 2004

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Lu Zhongli, Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated: July 23, 2004

  	
   

  
					

 

4

 

Translation
of $4.5 million loan between Lotus and TCL

 

Control
number:

 

Agreement
of Internal loans of TCL Industries Holdings (Hong Kong)

 

Debitor (“Party
A)”): Lotus Pacific, Inc.

Creditor
(“Party B”): TCL Industries Holdings (Hong Kong) Ltd.

 

Party A,
for its business needs, intends to apply a loan from Party B, which agrees to
make such a loan. The both parties agree to reach the flowing agreements based
on mutual consents and governing laws and regulations:

 

1.     Loan type: 
Short term loan.

 

2.     Loan amount:  Four million five hundred thousand US dollars.

 

3.     Purpose of the loan:  To satisfy the needs of the business
expansion of the subsidiaries.

 

4.     Loan terms: 
Six months between 1/22/2005 and 7/21/2005. If the beginning date of the
loan on any subsequent amendment(s) to renew this loan is different from this
original date, the beginning date on this agreement should used for the purpose
of calculation. Any subsequent extensions of this loan shall be a part to this
agreement and shall have the same binding force.

 

5.     Interest Loan interest rate, calculation of
interest

(1) The
monthly interest rate shall be 0.257%.

(2)
Interest shall be calculated monthly and calculated on every 20th of
the month. Daily interest rate shall be monthly rate divided by 30.

(3) Any
adjustment of interest rate before the maturity of the loan shall be based on
the bank regulation on interest rate.

 

6.     Condition of releasing the loan to debitor

(1) Party
A properly completed the registration process and satisfied all the legal
documents for the loan to be released;

(2) If the
loan requires collateral, all the conditions are satisfied by Party A or the
third party.

(3) Party
A has not breached any clause that required by for this loan.

 

7.     Payment of interest and principal

(1) Party
A shall pay interest on the interest calculation day. First payment is the day
after the first calculation day of the month, and last payment shall be made
together with the principal when the loan matures.

(2) Party
A agrees to accrue sufficient amount to pay interest when due, and remit the
interest payment to Party B’s designated bank account.

(3) Party
A shall reserve sufficient amount in its bank account when the loan matures in
order to payback the principal amount of the loan.

(4) If
Party A fails to payback the loan amount when the loan matures, Party B has the
right to dispose the collateral at its discretion or seek legal venue to
resolve the issue.

 

1

 

8.     Collateral

The
collateral required for this loan is the number 3 in the following list;

(1)          Guarantee;

(2)          Collateral;

(3)          Collateral with physical assets; (X) (Lotus equity
interest in Correlant Communications.)

(4)          Letter of credit;

(5)          Counter guarantee;

(6)          Letter of promissory notes;

(7)          Others 

 

9.     The main rights and liabilities of both
parties

(1) The
rights and liabilities of Party A:

(A) The
rights of Party A

(a) Party
A has the right to ask Party B to release the loan;

(b) Party
A has the right to use the loan under the terms of the loan agreement;

(c) Party
A has the right to ask Party B for extension(s) of the loan with the consent of
Party B;

(d) Party
A has the right to ask Party B to keep the confidentiality of all the
information regarding its accounting and business operation, except otherwise
governed by the laws and regulations

(B) The
liabilities of Party A

(a) Party
A shall pay back the principal and interest when the loan matures;

(b) Party
A shall use the loan in accordance with the terms of the agreement, and not use
the loan for other purpose without written consent from Party B;

(c) Party
A shall provide Party B with all the information include but not limited
accounting, statistics, business planning and KPI, etc. when requested by Party
B.

(d)
Without payback the loan amount, Party A shall not use the loan amount as
collateral to secure another loan;

(e) If
Party A will provide guarantee to other parties before the loan is matured,
Party A must notice Party B and receives consent from Party B;

(f) Party
A shall provide Party B with additional collateral if the value of the
collateral used for this loan is less that the original stated amount as
required by the agreement;

(g) Party
A must notify Party B for any changes made to its name, legal person, business
registration, registered capital, etc.

(h) Party
A must notice Party B within 10 days for any of the following that may affect
Party B to exercise its right as a creditor: contract, joint venture, merge,
acquisition, spin-off, apply for close of business, apply for bankruptcy, etc.

(i) Party
A shall immediately notify Party B for any of the following: closedown of
business operation, revoke of business license, revoked of business
registration, any involvement of legal person in illegal activities, becomes a
party to legal action, severe deterioration of financial conditions, and
resolve the payment of the loan and collateral under the conditions of Party B;

 

2

 

(2) Rights
and liabilities of Party B

(A) The
rights of Party B

(a) Party
B has the rights to get access to the information regarding Party A’s financial
and business operation, has the right to ask Party A to provide all the
information include but not limited to its planning, accounting and KPI data;

(b) Party
B has the right to audit Party A on the use of the loan.

(B) The
liabilities of Party B

(a) Party
B shall release the loan amount to Party A once the agreement is effective,
unless for the reasons caused by Party A;

(b) Party
B agrees to keep all the information provided by Party A confidential unless otherwise
mandated by laws and regulations.

 

10.      Change and termination of the loan
agreement

(1) The
agreement may be revised, amended or terminated with the written agreement by
both parties. Any changes made shall become part of the whole agreement. If any
provision of this agreement is held invalid and void, the balance of the
provisions will remain in full force and effect.

(2) If
Party A plans to transfer its rights and liabilities to the third party, it
must get a written consent from Party B, and transfer will not be valid unless
the third party sign the new loan agreement with Party B;

(3) Party
A must give a 30 day notice to Party for any of the following actions:
contract, leasing, merge and acquisition, joint venture, joint corporation,
ownership change etc. Party A shall not take any actions unless it receives a
written consent from Party B;

(4) Party
A agrees to continue to bear the responsible for the liabilities of the loan
even though it has joint venture, joint corporation or equity merge, in which
Party A has equity interest.

 

11.
Breach of agreement

(1) If
Party A fails to payback the principal when the loan agreement at the maturity
date, Party B has the right accrue the interest at the daily rate of 2.1/10000.

(2) If
Party A fails to pay interest, Party B has the right to accrue the interest at
the daily rate of 2.1/10000. If Party A pays back the principal amount but
fails to the accrued the interest, Party B has the right to continue to accrue
the interest on the unpaid amount of interest at a daily compound rate of
2.1/10000.

(3) If
Party A uses the loan for the purposes other than stated in the loan agreement,
Party B has the right to charge a penalty for the breached amount at the daily
rate of 5/10000.

(4) At any
time before the loan agreement matures, Party B has the right to stop releasing
the loan, take back the loan and interest that were release to Party A, or
deduct directly from Party A’s account if Party A:

(a) fails
to pay back principal or interest;

(b) use
the loan for other purpose;

(c)
provide false information to Party B;

(d)
breaches part of the loan agreement;

(e) is
involved in law suites or litigations that substantially affect Party A’s

 

3

 

business;

(f)
deterioration of Party A’s financial situation;

(g) faces
any of the following situations: depreciation, damage, loss, frozen of the
collateral and fails to provide new collateral;

(h) Any
actions by Party A that affect its ability to payback the loan principal and
interest.

 

12. Settlement
of dispute

Both
parties shall consult with each other for any disputes regarding the loan
agreement; unresolved disputes shall be arbitrated by the management of TCL
Corporation. During the period of dispute, the balance of the agreement shall
be in full force.

 

13.
Others

(1) Any
other issues that are included the loan agreement but pertinent to the
agreement, both parties shall follow the laws, rules and regulations of the
government;

(2) The
loan agreement shall be effective once it is properly signed by the legal
persons of the two parties. The agreement will be terminated once all the
principal and interest are fully paid.

(3) This
agreement will be executed in counterpart copies and each and all of which will
be deemed an original.

 

14.
Special clause

(1) Party
A acknowledges that Party B fully consulted with Party A for all the provisions
in the loan agreement.

(2) Party
A acknowledges that it has full comprehension of all the provisions of the loan
agreement, and Party B gives all the explanations to Party A for any and all of
the questions that Party A has.

(3) Both
parties consent that they have no disagreement over the provisions of the
agreement.

 

 

	
  Party A:  Legal
  person or authorized signer:

  	
  /s/Vincent Yan, President &
  CEO

  	
   

  
	
   

  	
   

  
	
  Dated: January 23, 2005

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Party B: Legal person or
  authorized signer:

  	
  /s/ Yuan Bing

  	
   

  
	
   

  	
   

  
	
  Dated: January 31, 2005

  	
   

  
					

 

4Exhibit 10.1

 

 

 

PURCHASE AND SALE AGREEMENT

 

 

by and between

 

 

MVE, INC.

and

MIAMI VALLEY INSURANCE COMPANY

(each a “Seller” and
collectively the “Sellers”)

 

 

and

 

 

ALPINVEST/LEXINGTON 2005, LLC

(as “Buyer”)

 

 

Dated February 13, 2005

 

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
   

  
	
   

  	
   

  	
   

  
	
  PURCHASE AND SALE OF PARTNERSHIP INTERESTS

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  Transfer of Partnership Interests

  	
   

  
	
  2.2

  	
  Purchase Price

  	
   

  
	
  2.3

  	
  Assignment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  
	
   

  	
   

  
	
  CLOSINGS AND PAYMENT OF PURCHASE PRICE

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  Closings

  	
   

  
	
  3.2

  	
  Seller’s Deliveries at each Closing

  	
   

  
	
  3.3

  	
  Buyer’s Deliveries at each Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES OF SELLERS

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  Organization of Sellers

  	
   

  
	
  4.2

  	
  Title to Partnership Interests

  	
   

  
	
  4.3

  	
  Certain Partnership Matters

  	
   

  
	
  4.4

  	
  Authorization

  	
   

  
	
  4.5

  	
  No Conflict or Violation

  	
   

  
	
  4.6

  	
  Consents and Approvals

  	
   

  
	
  4.7

  	
  Brokers

  	
   

  
	
  4.8

  	
  Interest in Partnerships

  	
   

  
	
  4.9

  	
  No Opt Outs/Waiver

  	
   

  
	
  4.10

  	
  ERISA Plan Asset Matters

  	
   

  
	
  4.11

  	
  Agreements and Commitments

  	
   

  
	
  4.12

  	
  Return of Distributions

  	
   

  
	
  4.13

  	
  Litigation

  	
   

  
	
  4.14

  	
  No General Solicitation

  	
   

  
	
  4.15

  	
  Ability to Transfer

  	
   

  

 

i

 

	
  ARTICLE
  V

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES OF BUYER

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  Organization of Buyer

  	
   

  
	
  5.2

  	
  Authorization

  	
   

  
	
  5.3

  	
  No Conflict or Violation

  	
   

  
	
  5.4

  	
  Eligibility

  	
   

  
	
  5.5

  	
  Consents and Approvals

  	
   

  
	
  5.6

  	
  Brokers

  	
   

  
	
  5.7

  	
  Securities Law Matters

  	
   

  
	
  5.8

  	
  Investigation and Evaluation

  	
   

  
	
  5.9

  	
  Interest in Partnerships

  	
   

  
	
  5.10

  	
  ERISA

  	
   

  
	
  5.11

  	
  Availability of Capital

  	
   

  
	
  5.12

  	
  Investment Company Act

  	
   

  
	
  5.13

  	
  Public Utilities Holding Company Act

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  6.1

  	
  Regulatory and Other Authorizations

  	
   

  
	
  6.2

  	
  Further Action

  	
   

  
	
  6.3

  	
  Confidentiality

  	
   

  
	
  6.4

  	
  Dispute Resolution

  	
   

  
	
  6.5

  	
  Expenses; Transfer Taxes

  	
   

  
	
  6.6

  	
  Notification by Buyer

  	
   

  
	
  6.7

  	
  Side Letters, etc

  	
   

  
	
  6.8

  	
  Delivery of Partnership Agreements, etc

  	
   

  
	
  6.9

  	
  Compliance with Operative Documents

  	
   

  
	
  6.10

  	
  Retained Limited Partners Clawback

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  
	
   

  	
   

  	
   

  
	
  CONDITIONS TO CLOSING

  	
   

  
	
   

  	
   

  
	
  7.1

  	
  Conditions to Obligations of the Sellers

  	
   

  
	
  7.2

  	
  Conditions to Obligations of the Buyer

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
   

  
	
   

  	
   

  	
   

  
	
  TERMINATION

  	
   

  
	
   

  	
   

  
	
  8.1

  	
  Termination

  	
   

  
	
  8.2

  	
  Effect of Termination

  	
   

  

 

ii

 

	
  ARTICLE
  IX

  	
   

  
	
   

  	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  
	
  9.1

  	
  Survival of Certain Representations and
  Warranties

  	
   

  
	
  9.2

  	
  Indemnification by Sellers

  	
   

  
	
  9.3

  	
  Indemnification by Buyer

  	
   

  
	
  9.4

  	
  Indemnification Procedures

  	
   

  
	
  9.5

  	
  Limitations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  10.1

  	
  Specific Performance

  	
   

  
	
  10.2

  	
  Assignment

  	
   

  
	
  10.3

  	
  Notices

  	
   

  
	
  10.4

  	
  Choice of Law

  	
   

  
	
  10.5

  	
  Submission to Jurisdiction

  	
   

  
	
  10.6

  	
  Entire Agreement; Amendments and Waivers

  	
   

  
	
  10.7

  	
  Counterparts

  	
   

  
	
  10.8

  	
  Severability

  	
   

  
	
  10.9

  	
  Headings

  	
   

  
	
  10.10

  	
  Public Disclosure

  	
   

  
	
  10.11

  	
  No Third-Party Rights

  	
   

  
	
  10.12

  	
  Distributions and Notices Received After
  Each Closing Date

  	
   

  
	
  10.13

  	
  Resolution of Conflicts

  	
   

  
	
  10.14

  	
  Notification by Each Party

  	
   

  
	
   

  	
   

  
	
  SCHEDULES AND EXHIBITS

  	
   

  
	
   

  	
   

  
	
  Seller’s Schedules:

  	
   

  
	
   

  	
   

  
	
  Schedule 1.1

  	
  Partnership
  Valuations

  	
   

  
	
  Schedule 4.2

  	
  Transfer
  Restrictions

  	
   

  
	
  Schedule 4.3

  	
  Certain
  Partnership Matters

  	
   

  
	
  Schedule 4.6

  	
  Seller’s
  Consents and Approvals

  	
   

  
	
  Schedule 4.8

  	
  Interest in
  Partnerships

  	
   

  
	
  Schedule
  4.11

  	
  Agreements
  and Commitments

  	
   

  
	
  Schedule
  4.13

  	
  Litigation

  	
   

  
	
  Schedule
  4.15

  	
  Ability to
  Transfer

  	
   

  
	
   

  	
   

  
	
  Buyer’s Schedules:

  	
   

  
	
  Schedule 5.4

  	
  Eligibility

  	
   

  
	
  Schedule 5.5

  	
  Buyer’s
  Consents and Approvals

  	
   

  
	
  Schedule 5.9

  	
  Buyer’s
  Interest in Partnerships

  	
   

  
	
  Schedule 5.10

  	
  ERISA
  Matters

  	
   

  
					

 

iii

 

	
  General Schedules:

  	
   

  
	
  Schedule 6.4(a)

  	
  Exceptions
  to Dispute Resolution

  	
   

  
	
  Schedule
  6.4(b)

  	
  Dispute
  Resolution

  	
   

  
	
   

  	
   

  
	
  Exhibits:

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Partnership
  Information

  	
   

  
	
  Exhibit B

  	
  Assignment
  and Assumption Agreement

  	
   

  
	
  Exhibit C

  	
  Confidentiality
  Agreements

  	
   

  
	
  Exhibit D

  	
  Guarantee
  (of Sellers’ Performance)

  	
   

  
	
  Exhibit E

  	
  Guarantee
  (of Buyer’s Performance)

  	
   

  
	
  Exhibit F

  	
  Guarantee
  (of Buyer’s Performance)

  	
   

  
	
  Exhibit G

  	
  Alternative
  Arrangements

  	
   

  
				

 

iv

 

THIS PURCHASE
AND SALE AGREEMENT, dated February 13, 2005, (together with
all schedules and exhibits hereto, the “Agreement”), is by and between
ALPINVEST/LEXINGTON 2005, LLC, a Delaware limited liability company (“Buyer”),
and MVE, INC., a corporation organized and existing under the laws of Ohio (“MVE”),
and MIAMI VALLEY INSURANCE COMPANY, a corporation organized and existing under
the laws of Vermont (“Miami Valley” and together with MVE, the “Sellers” and
each a “Seller”).

 

RECITALS

 

WHEREAS, a
Seller is a limited partner in the limited partnerships and a member in the
limited liability companies set forth on Exhibit A (each a “Partnership” and
collectively the “Partnerships”) and owns the partnership interests and limited
liability company interests set forth on Exhibit A (each a “Partnership
Interest” and collectively, the “Partnership Interests”);

 

WHEREAS, Buyer
desires to purchase from Sellers, and Sellers desire to sell to Buyer, all of
the Partnership Interests upon the terms and subject to the conditions of this
Agreement; and

 

WHEREAS, DPL
Inc., a corporation organized and existing under the laws of Ohio, has agreed
to provide a guarantee of the Sellers’ performance of this Agreement to Buyer
in the form of Exhibit D and AlpInvest
Partners CS Investments 2003 CV, a Dutch limited partnership, and Lexington
Capital Partners V, L.P., a Delaware, limited partnership, have each
agreed to provide a guarantee of Buyer’s performance of this Agreement to Sellers
in the form of Exhibit E and Exhibit F, respectively;

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1.                              Defined
Terms.  Capitalized words and
phrases used and not otherwise defined in this Agreement shall have the
following meanings:

 

“Affiliate” means,
with respect to parties other than Buyer, a Person that directly, or indirectly
through one or more intermediaries, controls, is controlled by or is under
common control with the Person specified, and the terms and phrases “controlling,”
“controlled by” and “under common control with” have correlative meanings.  For purposes of Buyer, “Affiliate” shall mean
and be limited to any corporation, fund, portfolio company
or account managed or controlled by Alpinvest Partners, N.V. or Lexington
Advisors Inc.

 

“Aggregate
Purchase Price” is defined in Section 2.2(a).

 

“Agreement” is
defined in the preamble.

 

 

“Allocated
Fund Purchase Price” is defined in Section 2.2(a).

 

“Alternative
Arrangement” is defined in Section 3.1.

 

“Assignment and Assumption Agreement”
means an assignment and assumption agreement in the form of Exhibit B
unless a Partnership requires a different form, in which case for such
Partnership, the assignment and assumption agreement will be substantially in
the form required by the Partnership.

 

“Assumed
Limited Partner Clawback” means any obligation to return distributions
received at any time prior to July 1, 2004 from any Partnership to the extent
that the events giving rise to such distribution and the events giving rise to
such obligation to return arise out of the same portfolio investment, such
obligation not to exceed, with respect to all Partnership Interests
collectively, $2 million in the aggregate.

 

“Assumed Partnership Liabilities”
means any Losses asserted against, imposed upon, incurred or to be paid by, or
to be performed by, either Seller or any of their Affiliates after each Closing
Date, directly or indirectly, by reason of, relating to or arising out of or in
connection with the Partnership Interests transferred on such Closing Date, the
respective Partnership Agreements or any other agreement between a Partnership
and a Seller or any of Sellers’ Affiliates (including, without limitation, any
breach by Buyer of any representation, warranty or covenant in any Partnership
Agreement, subscription agreement, Assignment and Assumption Agreement or other
agreement between a Partnership and Buyer, other than a breach by Buyer that arises
by reason of a breach by either Seller), the respective Partnerships and the
fact that a Seller or any Affiliate of Sellers is or was a limited partner or a
limited liability company member in such Partnerships, whether or not such
Losses relate to or accrued during periods prior to, on, or subsequent to such
Closing Date; provided that Assumed Partnership Liabilities shall
include any Assumed Limited Partner Clawback but shall not include the Retained
Partnership Liabilities.

 

“Business Day” means
any day other than a Saturday, Sunday or other day on which commercial banks in
New York and Amsterdam are authorized or required by law to close.

 

“Buyer” is the Person
set forth as Buyer in the preamble.

 

“Buyer Indemnified Parties”
has the meaning set forth in Section 9.2(a).

 

“Claim” is defined in
Section 6.4.

 

“Closing” is defined
in Section 3.1.

 

“Closing
Date” means the date on which a Closing occurs pursuant to Section 3.1.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Confidentiality Agreements”
are defined in Section 6.3.

 

2

 

“Distribution in Kind”
is defined in Section 2.2(b).

 

“Encumbrance” means
any claim, lien, pledge, option, charge, security interest, restriction,
encumbrance or other right of a third party, except for those pertaining to the
sale, assignment, disposition or transfer of a Partnership Interest (including
any consents or approvals of transfers, options, rights of first refusal and
co-sale rights) as may be set forth in any Partnership Agreement.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

“General Partner”
means, for each Partnership, the general partner, managing member or manager
set forth on Exhibit A.

 

“GP Consent”
means the written consent of the General Partner of a Partnership to the sale,
transfer, assignment and conveyance to Buyer of Seller’s Partnership Interest
in such Partnership and the admission of Buyer (or its permitted assignees) as
a limited partner or member, as applicable to such Partnership.

 

“GP
Correspondence” is defined in Section 6.8.

 

“Indemnified Party”
has the meaning set forth in Section 9.4(a).

 

“Indemnitor”
is defined in Section 9.4(a).

 

“Interim Period” is
defined in Section 2.2(b).

 

“Investment
Company Act” is defined in Section 5.12.

 

“Knowledge” means
with respect to matters relating to each Seller, the actual knowledge of the
Executive Chairman, Chief Executive Officer, Chief Financial Officer or
Treasurer of DPL Inc.

 

“Letter
Agreement” means the letter agreement dated as of the date hereof by and
among DPL Inc., The Dayton Power and Light Company, MVE, Miami Valley and the
Buyer.

 

“Losses” means all
losses, liabilities, obligations, amounts, damages, deficiencies, taxes,
interest, awards, judgments, amounts paid in settlement, fines, penalties,
costs and expenses, including reasonable attorneys’ fees and expenses.

 

“Market Transaction”
is defined in Section 2.2(b).

 

“Morgan
Stanley” is defined in Section 4.7.

 

“Net Amount” is
defined in Section 2.2(b).

 

“Outside
Date” means the one hundred sixtieth (160th) day following the
date of this Agreement.

 

3

 

“Partnership” and “Partnerships” are
defined in the preamble.

 

“Partnership Agreement”
means for each Partnership the agreement set forth opposite each Partnership’s
name on Exhibit A.

 

“Partnership Interest”
and “Partnership Interests”
are defined in the preamble.

 

“Person” means an
individual, a partnership, a limited liability company, a joint venture, a
corporation, a trust, an unincorporated organization, a division or operating
group of any of the foregoing, a government or any department or agency thereof
or any other entity.

 

“Representative”
means any officer, director, principal, agent, employee, counsel, consultant, independent auditor, fiduciary or other representative of a
Person.

 

“Retained
Limited Partner Clawback” means any obligation to return distributions
received at any time prior to July 1, 2004 from any Partnership to the extent
that the events giving rise to such distribution and the events giving rise to
such obligation to return arise out of the same portfolio investment which is
not included in the definition of “Assumed Limited Partner Clawback.”

 

“Retained
Partnership Liabilities” means (i) any Losses arising from either Seller’s
breach of the representations, warranties or covenants made by Seller in the
Letter Agreement or in any Partnership Agreement, subscription agreement,
Assignment and Assumption Agreement or other agreement between a Partnership
and a Seller or any of Seller’s Affiliates (other than a breach by Seller that
arises by reason of a breach by Buyer), (ii) any Losses for taxes, fees or
other governmental charges attributable to the ownership by the Sellers of any
Partnership Interests on or prior to the Closing Dates or the sale by the
Sellers pursuant to this Agreement of the Partnership Interests (other than any
Losses that arise from any breach by Buyer of any representation, warranty or
covenant in any Partnership Agreement, subscription agreement, Assignment and
Assumption Agreement or other agreement between a Partnership and Buyer); (iii)
the Retained Limited Partner Clawback and (iv) any Losses arising from the
matters addressed in Section I of the Letter Agreement.

 

“Section 2
Interest Rate” means five percent.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Seller” and “Sellers”
are defined in the preamble.

 

“Seller Indemnified Parties”
has the meaning set forth in Section 9.3(a).

 

“Third Party Claim”
has the meaning set forth in Section 9.4(b).

 

4

 

ARTICLE II

PURCHASE AND SALE OF PARTNERSHIP INTERESTS

 

2.1.                              Transfer
of Partnership Interests. 
Subject to the terms and conditions of this Agreement, (a) the
Sellers shall sell, transfer, assign and convey to the Buyer, and the Buyer
shall purchase and acquire from the Sellers, on the Closing Dates, all of the
Partnership Interests and (b) Buyer shall assume the Assumed Partnership Liabilities.

 

2.2.                              Purchase
Price.    (a)  Upon
the terms and subject to the conditions contained herein, as consideration for
the purchase of the Partnership Interests, Buyer shall pay to Sellers an
aggregate purchase price consisting of cash equal to the sum of (i) One Billion
Eleven Million Dollars ($1,011,000,000.00) and (ii) the Net Amount (which
amount may be positive or negative) (such sum, the “Aggregate Purchase Price”).  The Aggregate Purchase Price shall be paid
according to the closing procedures specified in Section 3.1.  The Aggregate Purchase Price and all other
payments to be made pursuant to this Agreement shall be payable by wire
transfer in immediately available funds in lawful money of the United States of
America to such account as Sellers shall designate in writing to Buyer prior to
the Closing Dates.  The portion of the
Aggregate Purchase Price, prior to adjustments for any Net Amounts, that
represents the amount of consideration to be paid for each Partnership Interest
is as set forth on Schedule 1.1 under the column “Purchase Price” (the
amount in such column as appropriately adjusted for the Net Amount with respect
to each Partnership Interest, the “Allocated Fund Purchase Price”).

 

(b)                                 One
Business Day prior to each Closing Date, Sellers shall deliver to Buyer a
certificate signed by DPL Inc.’s Chief Financial Officer specifying
(i) the amount of payments (including, without limitation, management fees
paid to each General Partner) actually made by Sellers with respect to the
Partnership Interests to be transferred on such Closing Date (including dates
of payment) during the period from July 1, 2004 through the day
immediately preceding such certificate (the “Interim Period”), plus interest
thereon calculated from the date of payment by the Sellers to such Closing Date
at the Section 2 Interest Rate, (ii) the amount of distributions actually
or deemed to have been received by Sellers with respect to the Partnership
Interests to be transferred on such Closing Date (including dates of receipt) for
the Interim Period, plus interest thereon calculated from the date of receipt
by Sellers of any such distribution or deemed distribution to such Closing Date
at the Section 2 Interest Rate, and (iii) the net amount, which may be
positive or negative, calculated as (i) minus (ii) above (with respect to
such Partnership Interest, the “Net Amount”). 
During the Interim Period, to the extent that any contributions and/or
distributions to and/or from any Partnership is in Euros, then such amount will
be converted into lawful money of the United States of America using the Euro
to U.S. Dollar exchange rate as reported on Bloomberg at the close of business
one Business Day before the date of such distribution or contribution.  If, during the Interim Period, Sellers receive
a distribution from a Partnership other than in cash (a “Distribution in Kind”),
Sellers will use their commercially reasonable efforts to sell the non-cash
asset received in the Distribution in Kind in an arms’ length transaction (a “Market
Transaction”).  For purposes of the
calculation of interest, the Net Amount and any other adjustment pursuant to
this Section 2.2, Distributions in Kind will be valued at (i) the
amount of the net proceeds received in respect of a Market Transaction, or
(ii) if Sellers are unable to effect a Market Transaction, at the value
allocated to 

 

5

 

such Distribution
in Kind by the General Partner of the Partnership that made such Distribution
in Kind.  If Sellers make a payment
(including, without limitation, management fees paid to each General Partner)
to any Partnership or any Partnership makes a distribution to Seller on a
Closing Date or the two days immediately preceding a Closing Date, Sellers and
Buyer shall make an adjustment to the Allocated Fund Purchase Price with
respect to such Partnership Interest consistent with the intent of this
Section 2.2(b) on the Business Day immediately following the Closing Date.

 

(c)                                  No
later than five Business Days prior to each Closing Date, the applicable Seller
shall deliver to Buyer a certificate signed by DPL Inc.’s Chief Financial
Officer stating that the unfunded level of such Seller’s total commitment as of
June 30, 2004 to each Partnership to be transferred on such Closing Date as set
forth on a schedule thereto is true, correct and complete.

 

(d)                                 No
later than twelve (12) Business Days prior to each Closing Date, Sellers shall
deliver to Buyer a written notice stating, with respect to each Partnership
Interest reasonably expected to be transferred on such Closing Date, the name
of the Partnership and an estimate of the Allocated Fund Purchase Price with
respect to such Partnership Interest.

 

2.3.                              Assignment.  Buyer may assign its rights to acquire one or
more of the Partnership Interests pursuant to this Agreement, in all or part,
to (i) its Affiliates and (ii) to other parties that are reasonably acceptable
to the Sellers, provided, however, that Buyer shall retain all
liability hereunder as if no assignment had been made (and, subject to the
other terms of this Agreement, shall acquire such Partnership Interest if its
assignees fail to do so) and with respect to the assignment of the Buyer’s
rights with respect to a Partnership Interest, such assignment shall not
materially delay the transfer of such Partnership Interest.

 

ARTICLE III

 

CLOSINGS AND PAYMENT OF PURCHASE PRICE

 

3.1.                              Closings.  The transactions contemplated by this
Agreement shall close (a “Closing”) from time to time on such dates as are
mutually agreed by the Sellers and Buyer (each such time a “Closing Date”).  Each Closing shall be held at 8:30 a.m.,
local time, on the Closing Date at the offices of Cadwalader, Wickersham &
Taft LLP, One World Financial Center, New York, New York 10281 or such other
place and time as the parties shall mutually agree.  At each Closing with respect to a Partnership
Interest, Buyer shall pay the Allocated Fund Purchase Price for any such
Partnership Interest for which GP Consent shall have been obtained or for any
such Partnership Interest for which Buyer and Sellers shall have agreed to an
alternative arrangement under which Buyer and Sellers would be placed in the
same economic position with respect to such Partnership Interest as if GP
Consent had been obtained and such Partnership Interest was directly
transferred to Buyer (such arrangement, an “Alternative Arrangement”).  For clarity, Buyer and Sellers shall each
have the right to withhold their consent to effect an Alternative Arrangement
in their sole and absolute discretion and for any reason or for no reason
whatsoever.  If, however, Buyer and
Sellers do agree to effect an Alternative 

 

6

 

Arrangement with respect to one or more
Partnership Interests, such Alternative Arrangement shall incorporate the terms
and concepts set forth in Exhibit G.

 

3.2.                              Seller’s
Deliveries at each Closing. 
At each Closing, Sellers shall deliver to Buyer all of the following:

 

(a)                                  unless
the parties otherwise agree to an Alternative Arrangement, an Assignment and
Assumption Agreement for each Partnership Interest to be transferred at such
Closing, duly signed by (i) the Seller transferring such Partnership
Interest and (ii)  the General Partner with respect to such Partnership
Interest;

 

(b)                                 a
Certificate of the Secretary of each Seller, dated the Closing Date, in form
and substance reasonably satisfactory to Buyer, as to (i) the resolutions
of each Seller authorizing the execution and performance of this Agreement and
the transactions contemplated hereby and (ii) incumbency and signatures of
the officers of each Seller executing this Agreement; and

 

(c)                                  the certificates and other agreements contemplated by
Article VII.

 

3.3.                              Buyer’s
Deliveries at each Closing. 
At each Closing, the Buyer shall deliver to the Seller all of the
following:

 

(a)                                  the Allocated Fund Purchase Price with respect to the
Partnership Interests to be transferred at such Closing in immediately
available funds, as provided in Section 2.2;

 

(b)                                 unless
the parties otherwise agree to an Alternative Arrangement, an Assignment and
Assumption Agreement for each Partnership Interest to be transferred at such
Closing, duly signed by (i) Buyer and (ii) the General Partner with respect to
such Partnership Interest;

 

(c)                                  a copy of Buyer’s certificate of formation certified as of a
recent date by an authorized governmental official; provided that after
the delivery of such certificate by the Buyer at the first Closing, Buyer shall
be deemed to have delivered the identical certificate at every subsequent
Closing.

 

(d)                                 certificate of good standing of Buyer or equivalent
documents issued as of a recent date by an authorized official of Buyer’s
jurisdiction of organization;

 

(e)                                  certificate
of the secretary or an assistant secretary of Buyer or equivalent official,
dated the Closing Date, in form and substance reasonably satisfactory to
Sellers, certifying (i) that there have been no amendments to the
certificate of formation of Buyer since a specified date, (ii) as to the
authenticity of the resolutions of the Board of Directors (if any) or other
governing body of Buyer authorizing the execution and performance of this
Agreement and the transactions contemplated hereby and (iii) as to the
incumbency of, and as to the authenticity of the signatures of, the officers of
Buyer executing this Agreement; provided that after the delivery of such
certificate by the Buyer at the first Closing, Buyer shall be deemed to have
delivered the identical certificate at every subsequent Closing; and

 

7

 

(f)                                    the certificates and other agreements contemplated by
Article VII.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLERS

 

Sellers hereby
represent and warrant to Buyer as follows:

 

4.1.                              Organization
of Sellers.

 

(a)                                  MVE
is duly organized, validly existing and in good standing as a corporation under
the laws of the State of Ohio and has full power and authority to own
Partnership Interests; and

 

(b)                                 Miami
Valley is duly organized, validly existing and in good standing as a corporation
under the laws of the State of Vermont and has full power and authority to own
Partnership Interests.

 

4.2.                              Title
to Partnership Interests. 
Sellers own the legal title to and the beneficial ownership of all the
Partnership Interests free and clear of all Encumbrances, including, without
limitation, any agreement, understanding or restriction affecting the voting
rights or other incidents of legal title or beneficial ownership pertaining to
the Partnership Interests.  Except as set
forth on Schedule 4.2, there are no restrictions, approvals or
covenants regarding the voting or transfer of any Partnership Interests to
Buyer and the substitution of Buyer as a limited partner in the Partnerships
pursuant to the Partnership Agreements or any agreement or other instrument to
which either Seller is a party or by which either Seller is bound.  Upon consummation of the transactions
contemplated by this Agreement, Sellers will transfer the Partnership Interests
to Buyer, free and clear of all Encumbrances.

 

4.3.                              Certain
Partnership Matters.  Sellers
have contributed in cash all of the capital called by the Partnerships required
to be contributed by Sellers, including, without limitation, all management
fees or other amounts heretofore billed with respect to any Partnership.  Sellers have no Knowledge of any Losses that
might constitute Assumed Partnership Liabilities other than those set forth on Schedule 4.3(i).  Neither Seller is in default under or in
breach of any of the Partnership Agreements or any other agreement that relates
to a Partnership to which a Seller or any of its Affiliates is a party and
neither Seller has acted or omitted to act in such a way that with notice or
lapse of time or both, it would be in default or in breach of any Partnership Agreement
or any other agreement that relates to a Partnership to which a Seller or any
of its Affiliates is a party.  To the
Knowledge of Sellers, there are no pending actions, liens, proceedings,
investigations, claims or threatened claims that are or would be likely to have
a material adverse effect on the value of the Partnership Interests taken as a
whole except as are set forth on Schedule 4.3(ii).

 

4.4.                              Authorization.  Sellers have all necessary power and
authority to enter into this Agreement, and to perform all of the obligations
to be performed by them hereunder. 
Sellers have taken all action necessary to consummate the transactions
contemplated hereby and to perform all of their obligations hereunder.  This Agreement has been duly authorized,
executed 

 

8

 

and delivered by each Seller and, assuming
the due execution and delivery of this Agreement by Buyer, is a legal, valid
and binding obligation of each Seller, enforceable against each Seller in accordance
with its terms, except that (i) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally, and (ii) the
remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

 

4.5.                              No
Conflict or Violation. 
Neither the execution and delivery nor the consummation or performance
of this Agreement by Sellers will result in (a) a violation of or a
conflict with any provision of the Articles of Incorporation or other
organizational documents of either Seller, (b) a breach of, a default
under, or a right to accelerate with respect to, any contract or other
obligation to which either Seller or any of its Affiliates is a party or is
subject or by which any asset of either Seller is bound which would interfere
in any material way with the ability of either Seller to consummate the
transactions contemplated by this Agreement or Buyer’s realization of the
benefits of this Agreement, or (c) assuming the accuracy of Buyer’s
representations and warranties contained in this Agreement, a violation by
either Seller or any of their respective Affiliates of any statute, rule,
regulation, ordinance, code, order, judgment, writ, injunction, decree or award
or the creation of an Encumbrance, which violation or encumbrance would
interfere in any material way with the ability of either Seller to consummate
the transactions contemplated by this Agreement or Buyer’s realization of the
benefits of this Agreement.

 

4.6.                              Consents
and Approvals.  To Sellers’
Knowledge, except as set forth on Schedule 4.6, no consent,
approval, authorization or other action by, or filing with or notification to,
any governmental or regulatory authority or other third party is required to be
obtained or made by Sellers or any of their Affiliates on or prior to the
Closing Dates in connection with the performance of this Agreement and the
consummation of the transactions contemplated hereby, except (i) where
failure to obtain such consent, approval, authorization or action, or to make
such filing or notification, would not interfere in any material way with the
ability of Sellers to consummate the transactions contemplated by this
Agreement or Buyer’s realization of the benefits of this Agreement and
(ii) for those requirements which become applicable to the Sellers as a
result of the specific regulatory status of the Buyer or as a result of any
other facts that specifically relate to the business or activities in which the
Buyer is or proposes to be engaged.

 

4.7.                              Brokers.  Except for Morgan Stanley & Co.
Incorporated (“Morgan Stanley”), Sellers have not employed, and are not subject
to any valid claim of, any broker, finder, investment banker, consultant or
other intermediary in connection with the transactions contemplated by this
Agreement who will be entitled to a fee or commission in connection with such transactions.  Sellers are solely responsible for any
payment, fee or commission that may be due to Morgan Stanley in connection with
the transactions contemplated hereby.

 

4.8.                              Interest
in Partnerships.  The
representations of Sellers in Schedule 4.8 as to (i) ”Total
Commitment,” (ii) ”Funded Level” and (iii) “Unfunded Level” for each
Partnership are true, complete and correct as of June 30, 2004.  Schedule 1.1 sets forth the net asset
value as of June 30, 2004 as provided to Sellers by the respective Partnerships.  The certificates delivered by Sellers to
Buyer in accordance with (i) Section 2.2(b) for the period July 1,
2004 through and 

 

9

 

including the
date which is two Business Days prior to each Closing Date and
(ii) Section 2.2(c), each will be true, complete and correct.

 

4.9.                              No
Opt Outs/Waiver.  Neither Seller has opted out of or otherwise
been excused from any portfolio investment made by any Partnership, and with
respect to their respective Partnership Interests, each Seller has participated
in its pro rata share of each portfolio
investment made by such Partnership. 
Neither Seller has taken any action with respect to the Partnerships
other than as a limited partner or member of the Partnership in accordance with
the Partnership Agreement and other operative documents or waived any of its
rights under such Partnership Agreement or other documents that has or would
adversely affect the Partnership Interests.

 

4.10.                        ERISA
Plan Asset Matters.  Neither Seller
is, nor is either Seller acting on behalf of, an employee benefit plan subject
to Title I of ERISA and/or Section 4975 of the Code.

 

4.11.                        Agreements
and Commitments.  Schedule
4.11 sets forth a list of all material contracts, agreements and commitments
(other than the Partnership Agreements) to which a Seller is a party with
respect to the Partnership Interests.

 

4.12.                        Return
of Distributions.  Neither
Seller has received written notice of any outstanding obligation to return to a
Partnership distributions or portions of distributions, if any, previously
received from such Partnership.

 

4.13.                        Litigation.  Except as provided on Schedule 4.13,
there is not pending or, to either Seller’s Knowledge, threatened against or
affecting either Seller or any of their respective Affiliates any action, suit
or proceeding at law or in equity before any court, tribunal, governmental
body, agency or official or any arbitrator relating to either Seller’s
Partnership Interests or that might affect the legality, validity or
enforceability against either Seller of this Agreement and the related
Assignment and Assumption Agreements or either Seller’s ability to perform its
obligations hereunder and thereunder. 
Except as provided on Schedule 4.13, neither Sellers nor their
Affiliates have received written notification of any lawsuit, proceeding or
investigation pending or threatened against either Seller that would, if
adversely determined, prevent or materially delay consummation of the
transactions contemplated hereby.

 

4.14.                        No
General Solicitation.  The
Partnership Interests were not offered to Buyer by means of any general
solicitation or general advertising by Sellers or any person acting on Sellers’
behalf, including, without limitation: (i) any advertisement, article,
notice, or other communication published in any newspaper, magazine, or similar
media or broadcast over television or radio or (ii) any seminar or meeting
to which Buyer was invited by any general solicitation or general advertising.

 

4.15.                        Ability
to Transfer.  Except as
provided on Schedule 4.15, neither Seller has Knowledge of any reason to
believe that any of the General Partners will not permit the Sellers to sell
and transfer their respective interests in the Partnerships within 120 days of
the date hereof; provided that the transfers with respect to the
Partnerships identified on Schedule 4.15 may not be fully completed
until a later date.

 

10

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby
represents and warrants to Sellers as follows:

 

5.1.                              Organization
of Buyer.  Buyer is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization.

 

5.2.                              Authorization.  Buyer has all necessary power and authority
to enter into this Agreement, and to perform all of the obligations to be
performed by it hereunder.  Buyer has
taken all action necessary to consummate the transactions contemplated hereby
and to perform all of its obligations hereunder.  This Agreement has been duly executed,
authorized and delivered by Buyer and, assuming the due execution and delivery
of this Agreement by Sellers, is a legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms, except that
(i) such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors’ rights generally and (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject
to equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought.

 

5.3.                              No
Conflict or Violation. 
Neither the execution and delivery nor the consummation or performance
of this Agreement by Buyer will result in (a) a violation of or a conflict
with any provision of any organizational document of Buyer, (b) a breach
of, or a default under, or a right to accelerate with respect to, any term or
provision of any contract or other obligation to which Buyer or any of its
Affiliates is a party or is subject or by which any asset of Buyer is bound
which would interfere in any material way with the ability of Buyer to
consummate the transactions contemplated by this Agreement or Sellers’
realization of the benefits of this Agreement, or (c) a violation by Buyer
or any of its Affiliates of any statute, rule, regulation, ordinance, code,
order, judgment, writ, injunction, decree or award which would interfere in any
material way with the ability of Buyer to consummate the transactions
contemplated by this Agreement or Sellers’ realization of the benefits of this
Agreement.

 

5.4.                              Eligibility.  Buyer has no reason to believe that it will
not be approved as a transferee or substituted limited partner in any of the
Partnerships by any of the General Partners within 120 days of the date hereof;
provided that the transfers with respect to the Partnerships identified
on Schedule 5.4 may not be fully completed a later date.

 

5.5.                              Consents
and Approvals.  Except as set
forth in Schedule 5.5, no consent, approval, authorization or other
action by, or filing with or notification to, any governmental or regulatory
authority or other third party is required to be obtained or made by Buyer or
any of its Affiliates on or prior to the Closing Dates in connection with the
performance by Buyer of this Agreement and the consummation by Buyer of the
transactions contemplated hereby, except where failure to obtain such consent,
approval, authorization or action, or to make such filing or notification,
would not interfere in any material way with the ability of Buyer to consummate
the transactions contemplated by this Agreement or Sellers’ realization of the
benefits of this Agreement.

 

11

 

5.6.                              Brokers.  Buyer has not employed, and is not subject to
any valid claim of, any broker, finder, investment banker, consultant or other
intermediary in connection with the transactions contemplated by this Agreement
who will be entitled to a fee or commission in connection with such
transactions.

 

5.7.                              Securities
Law Matters.

 

(a)                                  Buyer
is, as of the date hereof and will be as of the Closing Dates, an “accredited
investor” as that term is defined in Regulation D under the Securities Act as a
result of Buyer’s satisfaction of clause eight of
such definition.

 

(b)                                 Excluding
assignments pursuant to Section 2.3, the Partnership Interests are being
acquired by Buyer for its own account and not for the account of any other
person and not with a view to, or for, resale or distribution thereof, in whole
or in part.  Excluding assignments
pursuant to Section 2.3, Buyer has no present agreement, understanding,
intention or arrangement to sell, resell, assign, transfer or otherwise dispose
of all or any part of the Partnership Interests.

 

(c)                                  Buyer
understands that the transfer of the Partnership Interests is intended to be
exempt from registration under the Securities Act and from registration and/or
qualification under any applicable state securities law.  Therefore, Buyer understands that it cannot
transfer the Partnership Interests it acquires unless such Partnership
Interests are subsequently registered under the Securities Act or an exemption
from such registration is available.

 

(d)                                 Buyer
acknowledges that the Partnership Interests have not been registered under the
Securities Act, and that no United States or foreign regulatory agency has
passed upon the Partnerships or the Partnership Interests or has made any
finding or determination as to the fairness of an investment in the Partnership
Interests.  Buyer has sufficient
knowledge and experience in financial and business matters so as to be capable
of evaluating the merits and risks of purchasing the Partnership Interests, is
able to bear the economic risk of such investment, including a complete loss
thereof, and understands that there are substantial risks involved in acquiring
the Partnership Interests.

 

(e)                                  The
Partnership Interests were not offered to Buyer by means of any general solicitation
or general advertising by Sellers or any person acting on Sellers’ behalf,
including, without limitation: (i) any advertisement, article, notice, or
other communication published in any newspaper, magazine, or similar media or
broadcast over television or radio or (ii) any seminar or meeting to which
Buyer was invited by any general solicitation or general advertising.

 

5.8.                              Investigation
and Evaluation.  Execution of
this Agreement shall constitute Buyer’s representation that Buyer has been
provided the opportunity to perform such due diligence investigation of each
Partnership, the Partnership Interests and the transactions contemplated by
this Agreement as Buyer has deemed necessary to evaluate the merits of
purchasing the Partnership Interests, has had the opportunity to ask questions
concerning the terms and conditions of the transactions contemplated by this
Agreement and has made its determination to do so solely based upon its own
analysis.  BUYER
UNDERSTANDS AND 

 

12

 

AGREES THAT SELLERS MAKE AND HAVE MADE NO
REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THE PURCHASE BY BUYER OF THE
PARTNERSHIP INTERESTS OTHER THAN THOSE EXPRESSLY CONTAINED HEREIN AND THEREFORE
NO IMPLIED REPRESENTATIONS OR WARRANTIES WHATSOEVER ARE MADE.  BUYER UNDERSTANDS AND AGREES THAT NEITHER
SELLER NOR ANY OF ITS REPRESENTATIVES NOR ANY OTHER PERSON ACTING ON A SELLER’S
BEHALF HAS MADE ANY REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) AS TO THE
PARTNERSHIPS OR THEIR FINANCIAL CONDITION OR PROSPECTS OR OTHERWISE.

 

5.9.                              Interest
in Partnerships.    Schedule
5.9 sets forth a listing of the Partnerships in which Buyer or any of its
Affiliates is an investor as of the date of this Agreement (for purposes of
this Section 5.9, Buyer has treated an investment in any parallel partnership
of a Partnership as an investment in the relevant Partnership).

 

5.10.                        ERISA.  The purchase and sale of the Partnership
Interests contemplated hereunder shall not constitute a non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975(c)(1)(A)
through (F) of the Code, or cause a violation of any law, regulation or
restriction materially similar to the foregoing provisions of ERISA or the
Code.  Except as set forth in Schedule
5.10, Buyer is not (a) an employee benefit plan (as defined in Section 3(3)
of ERISA), whether or not subject to the provisions of Title I of ERISA, (b)
any plan described in section 4975 of the Code or (c) any entity whose
underlying assets include plan assets by reason of a plan’s investment in that
entity.  If Buyer is any of the entities
described in (a), (b) or (c) above, then Buyer’s acquisition of the Partnership
Interests will not cause the Partnership to become a party in interest (as
defined in Section 3(14) of ERISA) or a disqualified person (as defined in
Section 4975 of the Code) to any employee benefit plan or plan the assets of
which constitute assets of Buyer.

 

5.11.                        Availability
of Capital.  Buyer has
available, and can immediately call, committed capital, directly or indirectly,
from institutional investors which together with the available capital of Buyer
totals at least One Billion Two Hundred Ninety-Six Million Dollars
($1,296,000,000.00), which will be sufficient to pay the Aggregate Purchase
Price at the times indicated herein and at the Closings as scheduled by the
parties and consummate the transactions contemplated hereby.

 

5.12.                        Investment
Company Act.  Buyer is
excluded from the definition of “investment company” by reason of Section 3(c)(7) under the Investment Company Act of 1940, as amended
(the “Investment Company Act”).  Buyer,
and each equity owner thereof, is a “Qualified Purchaser” within the meaning of
Section 2(a)(51)(A) of the Investment Company Act.

 

5.13.                        Public
Utilities Holding Company Act. 
Buyer is not an “affiliate” of DPL Inc., as defined under Section 2(a)(11) of the Public Utilities Holding Company Act of 1935.

 

13

 

ARTICLE VI

COVENANTS

 

6.1.                              Regulatory
and Other Authorizations. 
Each of the Sellers and Buyer will use its commercially reasonable
efforts to obtain all authorizations, consents, orders and approvals of all
federal, state and foreign regulatory bodies and officials that may be or
become necessary for the performance of its obligations pursuant to this
Agreement and will cooperate fully with the other party in promptly seeking to
obtain all such authorizations, consents, orders and approvals.  Neither the Sellers nor Buyer will take any
action that will have the effect of delaying, impairing or impeding the receipt
of any required approval.

 

6.2.                              Further
Action.  Each of the Sellers
and Buyer shall execute such documents and other papers and take such further
actions as may be reasonably required or desirable to carry out the
transactions contemplated by this Agreement, including using their commercially
reasonable efforts to obtain the GP Consents and provide any commercially
reasonable indemnification, agreements, certificates, opinions and other
documents to the Partnerships in connection therewith.  Upon the terms and subject to the conditions
of this Agreement, each of the parties shall use its commercially reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all other things necessary, proper or advisable to consummate and make
effective as promptly as practicable the transactions contemplated by this
Agreement.

 

6.3.                              Confidentiality.  The Confidentiality Agreements between DPL
Inc. and each of (i) AlpInvest Partners CS Investments 2003 C.V. and AlpInvest
Partners Fund of Funds Custodian II A.B.V. and (ii) Lexington Partners Inc. and
attached as Exhibit C (the “Confidentiality Agreements”) are incorporated by
reference herein and shall continue in full force and effect.  Any nonpublic information provided to Buyer
pursuant to this Agreement or in connection with the transactions contemplated
hereby shall be subject to the terms of the Confidentiality Agreements, and
Buyer agrees to be bound by the Confidentiality Agreements as if named as a
party thereto.  The definition of “Evaluation
Material” contained in the Confidentiality Agreements is hereby amended to
include this Agreement, all Schedules and Exhibits to this Agreement, and all
information obtained from the Sellers pursuant to this Agreement.

 

6.4.                              Dispute
Resolution.  Except with
respect to the matters set forth on Schedule 6.4(a), any controversy or
claim (“Claim”), whether based on contract, tort, statute or other legal or
equitable theory (including but not limited to any claim of fraud,
misrepresentation or fraudulent inducement or any question of validity or
effect of this Agreement including this clause) arising out of or related to
this Agreement (including any amendments or extensions), or the breach or
termination thereof shall be settled by arbitration in accordance with the
provisions of Schedule 6.4(b).

 

6.5.                              Expenses;
Transfer Taxes.  Buyer and
each of the Sellers will each be liable for its own costs and expenses incurred
in connection with the negotiation, preparation, execution or performance of
this Agreement including, without limitation, fees and expenses of its counsel,
accountants and other advisors.  All
costs and expenses incurred by a Partnership and 

 

14

 

the General Partner thereof and each of their
respective Affiliates in connection with transferring the Partnership Interests
as contemplated hereby and causing Buyer to be accepted as a limited partner in
substitution for Seller under each Partnership Agreement and any fees imposed
on the Buyer or Sellers by a Partnership shall be borne 50% by Sellers, on the
one hand, and 50% by Buyer, on the other hand, notwithstanding anything to the
contrary contained in the Partnership Agreements and regardless of whether the
transfers are consummated.  Seller shall
be responsible for all transfer taxes arising from the transfer of the
Partnership Interests.

 

6.6.                              Notification
by Buyer.  Buyer shall notify
Sellers promptly upon the occurrence of any event or circumstance that could
reasonably be expected to have a material adverse effect on the ability of
Buyer to pay the Aggregate Purchase Price or any portion thereof and consummate
the transactions contemplated hereby.

 

6.7.                              Side
Letters, etc.  Each of the
Sellers and Buyer shall use commercially reasonable efforts to assign and
transfer any side letter or other agreement in respect of each Partnership
Interest to the Buyer for the benefit of the Buyer and/or its assignees
hereunder.

 

6.8.                              Delivery
of Partnership Agreements, etc. 
Subject to the receipt of the applicable consents and approvals from the
General Partners of the Partnerships, no later than fifteen (15) Business Days
after the execution and delivery of this Agreement, the Sellers shall deliver
to Buyer, in respect of each Partnership Interest, (i) the Partnership
Agreement, (ii) any side letters between either Seller and the General Partner
and/or the Partnership, (iii) other operational documents, (iii) the quarterly
reports for the two immediately preceding quarters, (iv) the annual report for
the immediately preceding fiscal year, (v) all correspondence by and between
either Seller and the General Partner or the Partnership, including capital
call and distribution notices, (collectively, “GP Correspondence”) after June
30, 2004, and (vi) any other agreement between a Partnership and a Seller or
any of Sellers’ Affiliates.  The Sellers
shall notify the General Partner with respect to each Partnership Interest
within 48 hours of the execution and delivery of this Agreement that the
Sellers intend (a) to transfer such Partnership Interest to Buyer and (ii) to
provide copies of the documents identified in clauses (i) through (vi) above to
Buyer.  Sellers shall deliver copies of
the documents identified in clauses (i) through (vi) above to Buyer with
respect to each Partnership Interest as promptly as possible and, in any event,
prior to the Closing with respect to such Partnership Interest.

 

From the date
hereof with respect to each Partnership Interest, subject to the receipt of the
applicable consents and approvals from the General Partners of the
Partnerships, the Sellers shall deliver to Buyer all GP Correspondence with
respect to such Partnership Interest within two Business Days after receipt by
either Seller.

 

6.9.                              Compliance
with Operative Documents. 
From the date hereof until the Closing with respect to each Partnership
Interest, the Sellers agree that they will comply with the terms of the
Partnership Agreement (and any related operative documents with respect to the
Partnership Agreements to which a Seller is a party) with respect to such
Partnership Interest.  From the date
hereof until the Closing with respect to each Partnership Interest, the Sellers
shall not enter into any agreements, amendments of any agreements or waivers
with respect to any Partnership Interest without Buyer’s consent and each
Seller shall consult with Buyer in connection with any voting matters with
respect to any Partnership Interest; provided that if the 

 

15

 

applicable Seller
and Buyer fail to reach an agreement regarding a matter for which either Seller’s
vote is required, such Seller shall vote as it deems appropriate.

 

6.10.                        Retained
Limited Partners Clawback.  To
the extent Buyer is required to return to a Partnership any distributions that
were made to either Seller at any time prior to July 1, 2004 from any
Partnership to the extent that the events giving rise to such distribution and
the events giving rise to such obligation to return arise out of the same
portfolio investment and if such obligations constitute a Retained Limited
Partner Clawback, then the Sellers shall pay such amounts.

 

ARTICLE VII

CONDITIONS TO CLOSING

 

7.1.                              Conditions
to Obligations of the Sellers. 
The obligations of the Sellers to consummate the transactions
contemplated by this Agreement shall be subject to the fulfillment, at or prior
to each Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties; Covenants.  The
representations and warranties of the Buyer contained in this Agreement shall
be true and correct in all material respects as of each Closing, with the same
force and effect as if made on and as of each Closing Date (except as to any
such representation or warranty which speaks as of a specific date, which must
be true and correct in all material respects as of such date), and all the
covenants and other obligations contained in this Agreement to be complied with
by the Buyer on or before each Closing Date shall have been complied with, and
the Sellers shall have received a certificate of the Buyer to such effect
signed by a duly authorized officer thereof.

 

(b)                                 No
Prohibition.  There shall not exist any temporary restraining order, preliminary or permanent
injunction, final judgment, law or regulation prohibiting the consummation of
this Agreement or the transactions contemplated hereby or any pending or, to
the knowledge of any party, threatened action by any governmental authority
prohibiting or seeking to prohibit the consummation of this Agreement or the
transactions contemplated hereby.

 

(c)                                  GP
Consents.  Unless the parties
otherwise agree to an Alternative Arrangement, Sellers shall have obtained the
GP Consents for the Partnership Interests to be transferred at each Closing.

 

(d)                                 Assignment
and Assumption Agreements.  Unless
the parties otherwise agree to an Alternative Arrangement, Buyer and the
General Partner shall have executed and delivered to the respective Seller at
each Closing the Assignment and Assumption Agreement for each Partnership
Interest to be transferred.

 

(e)                                  Additional
Documents.  Sellers shall have
received such additional documents, certificates, payments, assignments,
transfers and other deliveries as are required by this Agreement with respect
to such Partnership Interest or as they or their counsel may reasonably request
and as are customary to effect a closing of the
matters herein contemplated.

 

16

 

7.2.                              Conditions
to Obligations of the Buyer. 
The obligations of the Buyer to consummate the transactions contemplated
by this Agreement shall be subject to the fulfillment, at or prior to each
Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties; Covenants.  The
representations and warranties of the Sellers contained in this Agreement shall
be true and correct in all material respects as of such Closing, with the same
force and effect as if made on and as of such Closing Date (except as to any
such representation or warranty which speaks as of a specific date, which must
be true and correct in all material respects as of such date), and all the
covenants and other obligations contained in this Agreement to be complied with
by the Sellers on or before such Closing Date shall have been complied with,
and the Buyer shall have received a certificate of the Seller to such effect
signed by a duly authorized officer thereof.

 

(b)                                 No
Prohibition.  There shall not exist any temporary restraining order, preliminary or
permanent injunction, final judgment, law or regulation prohibiting the
consummation of this Agreement or the transactions contemplated hereby, or any
pending or, to the knowledge of any party, threatened action by any
governmental authority prohibiting or seeking to prohibit the consummation of
this Agreement or the transactions contemplated hereby.

 

(c)                                  GP
Consents.  Unless the parties
otherwise agree to an Alternative Arrangement, Sellers shall have obtained the
GP Consents for the Partnership Interests to be transferred at such Closing.

 

(d)                                 Assignment
and Assumption Agreements.  Unless
the parties otherwise agree to an Alternative Arrangement, Sellers and the
General Partner shall have executed and delivered to Buyer at such Closing the
Assignment and Assumption Agreement for each Partnership Interest to be
transferred at such Closing.

 

(e)                                  Additional
Documents.  Buyer shall have received
such additional documents, certificates, payments, assignments, transfers and
other deliveries as are required by this Agreement with respect to such
Partnership Interest or as it or its counsel may reasonably request and as are
customary to effect a closing of the matters herein
contemplated.  Each Seller shall have
executed and delivered to Buyer an affidavit in accordance with Section 1445(b)(2) of the Code.

 

ARTICLE VIII

TERMINATION

 

8.1.                              Termination.  (a) 
This Agreement may be terminated at any time prior to the earlier of (i)
the date on which all of the Partnership Interests shall have been transferred
to Buyer and (ii) the Outside Date:

 

(i)                                     by either Seller, if Buyer has materially breached any
covenants, agreements, representations or warranties contained herein, which is
not cured by Buyer 

 

17

 

within 10 calendar
days after receiving notice from Seller requesting such breach be cured;

 

(ii)                                  by
Buyer, if either Seller has materially breached any covenants, agreements,
representations or warranties contained herein, which is not cured by Seller
within 10 calendar days after receiving notice from Buyer requesting such
breach be cured; or

 

(iii)                               by mutual written agreement executed by Sellers and Buyer;

 

provided,
however, that the party seeking termination pursuant to clause (i) and
(ii) is not then in material breach of any of its covenants, agreements,
representations or warranties contained herein.

 

(b)                                 This
Agreement shall terminate on the Outside Date with respect to any Partnership
for which GP Consent shall not have been obtained for the transfer of any Partnership
Interest therein and for which Buyer and Sellers shall not have otherwise
agreed to an Alternative Arrangement.

 

8.2.                              Effect
of Termination.  If this
Agreement is terminated as permitted by Section 8.1, this Agreement shall
forthwith become void and none of the parties shall have any liability or
further obligation arising out of this Agreement; provided that the
Agreement shall remain binding with respect to any Partnership Interests that
have been transferred to Buyer or for which Buyer and Sellers have agreed to an
Alternative Arrangement, provided  further, that nothing herein
will relieve any party from liability for any breach of any covenant,
agreement, representation or warranty contained herein prior to such
termination.  Buyer’s obligations arising
from Section 6.3 herein shall survive the termination of this Agreement.

 

ARTICLE IX

INDEMNIFICATION

 

9.1.                              Survival
of Certain Representations and Warranties.  The representations and warranties set forth
in Sections 4.1 (Organization of Sellers), 4.2 (Title of Partnership
Interests), 4.4 (Authorization), 4.5 (No Conflict or Violation), 4.6 (Consents
and Approvals), 4.7 (Brokers), 4.13 (Litigation), 4.14 (No General
Solicitation), 5.1(Organization of Buyer), 5.2 (Authorization), 5.3 (No
Conflict or Violation), 5.4 (Eligibility), 5.5 (Consents and Approvals), 5.6
(Brokers) and 5.11 (Availability of Capital) shall survive for a period of
twenty-four (24) months after each Closing Date.  The representations and warranties set forth
in Sections 4.3 (Certain Partnership Matters), 4.8 (Interest in Partnerships),
4.9 (No Opt Outs/Waiver), 4.11 (Agreements and Commitments), 4.12 (Return of
Distributions), 4.15 (Ability to Transfer), 5.7 (Securities Law Matters), 5.8
(Investigation and Evaluation), 5.9 (Interest in Partnerships), 5.12
(Investment Company Act) and 5.13 (Public Utilities Holding Company Act) shall
survive for a period of eighteen (18) months after each Closing Date.  The representations in Sections 4.10
(ERISA Plan Matters) and 5.10 (ERISA) shall survive for the applicable
statutory periods.

 

18

 

9.2.                              Indemnification
by Sellers.  (a) Sellers
shall indemnify, defend and hold harmless Buyer, any Representatives of Buyer
or its Affiliates, and Buyer’s Affiliates, successors and assigns (the “Buyer
Indemnified Parties”) from and against any and all Losses directly or
indirectly based upon, arising out of, resulting from or relating to:

 

(i)                                     any breach of any representation or warranty of Sellers
contained in this Agreement or in any other agreement or instrument delivered
by either Seller to Buyer pursuant to this Agreement;

 

(ii)                                  any
breach of any agreement, covenant or obligation of Sellers set forth in this
Agreement or in any other agreement, certificate or instrument delivered by
either Seller to Buyer pursuant to this Agreement; and

 

(iii)                               the Retained Partnership Liabilities.

 

(b)                                 Notwithstanding
anything contained in Section 9.2(a) to the contrary, each Seller’s
obligation to indemnify, defend and hold the Buyer Indemnified Parties harmless
shall be limited as follows:

 

(i)                                     In
no event shall the aggregate amount required to be paid by a Seller to all
Buyer Indemnified Parties pursuant to Section 9.2(a)(i) exceed twenty
percent (20%) of the Aggregate Purchase Price; and

 

(ii)                                  No
claim may be asserted nor may any action be commenced against a Seller pursuant
to Section 9.2(a)(i) unless written notice of such claim or action is
received by the Seller describing in detail the facts and circumstances with
respect to the subject matter of such claim or action on or prior to the date
on which the representation or warranty on which such claim or action is based
ceases to survive as set forth in Section 9.1, irrespective of whether the
subject matter of such claim or action shall have occurred before or after such
date.

 

9.3.                              Indemnification
by Buyer.  (a) Buyer
shall indemnify, defend and hold harmless Sellers, any Representatives of either Seller or their Affiliates, and Sellers’ Affiliates,
successors and assigns (the “Seller Indemnified Parties”) from and against any
and all Losses directly or indirectly based upon, arising out of, resulting
from or relating to:

 

(i)                                     any breach of any representation or warranty of Buyer
contained in this Agreement or in any other agreement or instrument delivered
by Buyer to either Seller pursuant to this Agreement;

 

(ii)                                  any
breach of any agreement, covenant or obligation of Buyer set forth in this
Agreement or in any other agreement, certificate or instrument delivered by Buyer
to either Seller pursuant to this Agreement;

 

(iii)                               the Assumed Partnership Liabilities; and

 

(iv)                              any obligation of Sellers or any of their respective
Affiliates to indemnify any Partnership, any General Partner, any Limited
Partner or member and their respective 

 

19

 

partners, officers, directors, members,
employees, agents, representatives and Affiliates arising out of or in
connection with or resulting from the transfer and assignment of any Partnership
Interest to Buyer or any of its Affiliates (other than any obligation of
Sellers or any of their respective Affiliates to indemnify any Partnership, any
General Partner, any Limited Partner or member and their respective partners,
officers, directors, members, employees, agents, representatives and Affiliates
for any breach by either Seller of any of Seller’s representations, warranties
or covenants contained in any agreement entered into with a General Partner or
in an instrument delivered by such Seller to the General Partner, in each case
in connection with the transfer and assignment of any Partnership Interest to
Buyer or any of its Affiliates).

 

(b)                                 Notwithstanding
anything contained in Section 9.3(a) to the contrary, Buyer’s obligation
to indemnify, defend and hold the Seller Indemnified Parties harmless shall be
limited as follows:

 

(i)                                     In
no event shall the aggregate amount required to be paid by Buyer to the Seller
Indemnified Parties pursuant to Section 9.3(a)(i) exceed twenty percent
(20%) of the Aggregate Purchase Price; and

 

(ii)                                  No
claim may be asserted nor may any action be commenced against Buyer pursuant to
Section 9.3(a)(i) unless written notice of such claim or action is
received by the Buyer describing in detail the facts and circumstances with
respect to the subject matter of such claim or action on or prior to the date
on which the representation or warranty on which such claim or action is based
ceases to survive as set forth in Section 9.1, irrespective of whether the
subject matter of such claim or action shall have occurred before or after such
date.

 

9.4.                              Indemnification
Procedures.  (a) Any
Seller Indemnified Party or Buyer Indemnified Party (the “Indemnified Party”)
seeking indemnification hereunder shall give to the party obligated to provide
indemnification hereunder (the “Indemnitor”) written notice of any claim or
matter which gives rise to a claim for indemnification hereunder, promptly upon
becoming aware of a fact, condition or event for which indemnification is
provided under this Article IX, but in any event within 30 days after such
Person has actual knowledge of the facts constituting the basis for
indemnification; provided that the failure of an Indemnified Party to
give such notice shall not relieve any Indemnitor of its obligations under this
Agreement, except to the extent that such failure materially prejudices the
rights of any such Indemnitor.

 

(b)                                 The
Indemnitor shall have the right to control and direct, through counsel of its
own choosing, the defense or settlement of any claim, action, suit or
proceeding brought by a Person who is not a party or an Affiliate of a party to
this Agreement (a “Third Party Claim”). 
The Indemnified Party may participate in such defense, but in such case
the expenses of the Indemnified Party shall be paid by the Indemnified Party; provided,
that the Indemnified Party shall have the right to employ, at Indemnitor’s
expense, one counsel of its choice to represent the Indemnified Party, if there
exists any actual or potential conflict of interest between the Indemnitor and
the Indemnified Party.  The Indemnified
Party shall provide the Indemnitor with access to its records and personnel
relating to any Third Party Claim during normal business hours and shall
otherwise cooperate fully with the Indemnitor in the defense or settlement 

 

20

 

thereof, and the
Indemnitor shall reimburse the Indemnified Party for all its reasonable
out-of-pocket expenses in connection therewith. 
If the Indemnitor elects to direct the defense of a Third Party Claim,
the Indemnified Party shall not pay, permit to be paid, or settle any part of
any claim or demand arising from such asserted liability, unless the Indemnitor
consents in writing to such payment or unless the Indemnitor, subject to the
last sentence of this Section 9.4(b), withdraws from the defense of such
asserted liability, or unless a final judgment from which no appeal may be
taken by or on behalf of the Indemnitor is entered against the Indemnified Party
for such liability.  The Indemnitor will
not settle any claim without the consent of the Indemnified Party (such consent
not to be unreasonably withheld) if such settlement would involve the
imposition of equitable remedies or impose material obligations on the
Indemnified Party other than financial obligations for which the Indemnified
Party will be indemnified hereunder.  No
Indemnified Party shall be required to consent to any judgment or settlement
that does not provide for the unconditional release of the Indemnified Party
from all liabilities in respect of such Claim. 
If the Indemnitor shall fail to defend, or if, after commencing or
undertaking any such defense, fails to prosecute or withdraws from the defense
of a Third Party Claim, the Indemnified Party shall have the right to undertake
the defense or settlement thereof, at the Indemnitor’s expense.  If the Indemnified Party assumes the defense
of any such claim or proceeding pursuant to this Section 9.4(b) and
proposes to settle such claim or proceeding prior to a final judgment thereon
or to forego appeal with respect thereto, then the Indemnified Party shall give
the Indemnitor prompt written notice thereof, and the Indemnitor shall have the
right to participate in the settlement or assume or reassume the defense of
such claim or proceeding.

 

9.5.                              Limitations.  In any claim for indemnification under this
Agreement that does not involve a Third Party Claim,
the Indemnitor shall not be required to indemnify any Person for special,
exemplary or consequential damages. 
After each Closing, the enforcement of the indemnification provisions of
this Article IX shall be the exclusive remedy of the parties for any breach of
any warranty or representation contained in this Agreement with respect to the
Partnerships for which a Partnership Interest was transferred to Buyer and for
which Buyer and Sellers shall have agreed to an Alternative Arrangement; provided,
however, that such exclusivity shall not limit or restrict a party’s
ability to obtain specific performance or injunctive relief.

 

ARTICLE X

 

MISCELLANEOUS

 

10.1.                        Specific
Performance.  It is expressly
understood and agreed that the material breach of any covenant contained in
this Agreement will result in irreparable injury to the other party and that
therefore such other party shall be entitled to specific performance thereof.

 

10.2.                        Assignment.  Neither this Agreement nor any of the rights
or obligations hereunder may be assigned by Seller without the prior written
consent of Buyer.  Subject to Section
2.3, Buyer may not assign this Agreement or its the
rights or obligations unless Sellers consent to the assignment, which consent
may not be unreasonably withheld, and Buyer retains all liability hereunder as
if no assignment had been made.

 

21

 

10.3.                        Notices.  Unless otherwise provided herein, any notice,
request, instruction or other document to be given hereunder by any party to
the other party shall be in writing and shall be deemed to have been duly given
when delivered in person or by courier or by facsimile transmission (confirmed
to the sender by mail), or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties as follows:

 

	
   

  	
  If to
  Sellers:

  	
  MVE, Inc.

  
	
   

  	
   

  	
  1065 Woodman
  Drive

  
	
   

  	
   

  	
  Dayton, Ohio
  45432

  
	
   

  	
   

  	
  Telephone
  (937) 224-6000

  
	
   

  	
   

  	
  Facsimile:
  (937) 259-7147

  
	
   

  	
   

  	
  Attention:
  Pamela Holdren

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Miami Valley
  Insurance Company

  
	
   

  	
   

  	
  1065 Woodman
  Drive

  
	
   

  	
   

  	
  Dayton, Ohio
  45432

  
	
   

  	
   

  	
  Telephone
  (937) 224-6000

  
	
   

  	
   

  	
  Facsimile:
  (937) 259-7147

  
	
   

  	
   

  	
  Attention:
  Pamela Holdren

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy
  to:

  	
  Cadwalader,
  Wickersham & Taft LLP

  
	
   

  	
   

  	
  1 World
  Financial Center

  
	
   

  	
   

  	
  New York,
  New York 10281

  
	
   

  	
   

  	
  Telephone:(212)
  504-6000

  
	
   

  	
   

  	
  Facsimile:(212)
  504-6666

  
	
   

  	
   

  	
  Attention: Dennis
  J. Block, Esq.

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Buyer:

  	
  AlpInvest/Lexington
  2005, LLC

  
	
   

  	
   

  	
  660 Madison
  Avenue, 23rd Floor

  
	
   

  	
   

  	
  New York,
  New York 10021

  
	
   

  	
   

  	
  Facsimile:
  (212) 754-1494

  
	
   

  	
   

  	
  Attention:
  Wilson S. Warren

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy
  to:

  	
  Tjarko
  Hektor

  
	
   

  	
   

  	
  600 Fifth
  Avenue, 17th Floor

  
	
   

  	
   

  	
  New York,
  New York 10020

  
	
   

  	
   

  	
  Facsimile:
  (212) 332-6241

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kramer Levin
  Naftalis & Frankel LLP

  
	
   

  	
   

  	
  919 Third
  Avenue

  
	
   

  	
   

  	
  New York,
  New York 10022

  
	
   

  	
   

  	
  Facsimile:
  (212) 715-8360

  
	
   

  	
   

  	
  Attention:
  Michael Nelson, Esq.

  

 

22

 

	
   

  	
   

  	
  and to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ropes &
  Gray LLP

  
	
   

  	
   

  	
  45
  Rockefeller Plaza

  
	
   

  	
   

  	
  10th
  Floor

  
	
   

  	
   

  	
  New York,
  New York 10111

  
	
   

  	
   

  	
  Facsimile:
  (212) 497-3650

  
	
   

  	
   

  	
  Attention:
  Daniel C. Kolb, Esq.

  

 

or
to such other place and with such other copies as either party may designate as
to itself by written notice to the others. 
Any failure by any party to deliver copies of any notice shall not, in
itself, affect the validity of such notice if otherwise properly made to the
other party.

 

10.4.                        Choice
of Law.  THIS AGREEMENT SHALL BE CONSTRUED, INTERPRETED AND THE
RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

10.5.                        Submission
to Jurisdiction.  Each of the parties hereof irrevocably agrees
that any legal action or proceeding with respect to the matters set forth on Schedule
6.4(a) or for recognition and enforcement of any judgment thereof brought
by the other party hereto or its successor or assigns may be brought and
determined in the courts of the State of Ohio, and each of the parties hereto
hereby irrevocably submits with regard to any such action or proceeding for
itself and in respect to its property, generally and unconditionally, to the
nonexclusive jurisdiction of the aforesaid courts.  Each of the parties hereto hereby irrevocably
waives, and agrees not to assert, by way of motion, as a defense, counterclaim
or otherwise, in any action or proceeding with respect to the matters set forth
on Schedule 6.4(a), (a) any claim that it is not personally subject to
the jurisdiction of the above-named courts for any reason other than the
failure to serve in accordance with this Section 10.5, (b) that it or its
property is exempt or immune from jurisdiction of any such court or from any
legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise), and (c) to the fullest extent permitted by
the applicable law, that (i) the suit, action or proceeding in such court is
brought in an inconvenient forum, (ii) the venue of such suit, action or
proceeding is improper and (iii) the matters set forth on Schedule 6.4(a),
this Agreement, or the subject matter thereof, may not be enforced in or by
such courts.

 

10.6.                        Entire
Agreement; Amendments and Waivers. 
This Agreement, including all of the schedules, annexes, exhibits and
certificates attached hereto or delivered pursuant to the provisions of this
Agreement, together with the Confidentiality Agreements and the Letter
Agreement between Sellers and Buyer and other parties identified therein of
even date herewith, constitutes the entire agreement among the parties
pertaining to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties.  No amendment, supplement or
modification of this Agreement shall be binding unless executed in writing by
all parties.  No waiver of any provisions
of this Agreement will be valid and binding unless it is in writing and signed
by the party against whom the waiver is to be effective.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar), nor shall such waiver constitute a continuing
waiver unless otherwise expressly provided.

 

23

 

10.7.                        Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which shall
constitute one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties, including delivery by facsimile, it being understood that all
parties need not sign the same counterpart.

 

10.8.                        Severability.  If any one or more of the provisions
contained in this Agreement or in any other instrument referred to herein, or
the application of such provision(s) to any Person or circumstance, at any time
or to any extent, is held, for any reason, to be invalid, void or
unenforceable, the remainder of the provisions of this Agreement or such other
instrument (or the application of such in other jurisdictions or to persons or
circumstances other than those to which it was held invalid, void or
unenforceable) shall in no way be affected, impaired or invalidated, and to the
extent permitted by any applicable law, any such provision shall be restricted
in applicability or reformed to the minimum extent required for such to be
enforceable.  This provision shall be
interpreted and enforced to give effect to the original written intent of the
parties prior to determination of such invalidity or unenforceability.

 

10.9.                        Headings.  The headings of the Articles and Sections
herein are inserted for convenience of reference only and are not intended to
be part of or to affect the meaning or interpretation of this Agreement.

 

10.10.                  Public
Disclosure.  Except as
otherwise required by law or by obligations pursuant to the rules of any
securities exchange, for so long as this Agreement is in effect, neither party
shall make any public disclosure regarding the transactions contemplated by
this Agreement, without the prior written consent of the other party, which
consent shall not be unreasonably withheld.

 

10.11.                  No
Third-Party Rights.  This
Agreement shall be binding upon and inure solely to the benefit of each party
hereto, Buyer’s permitted assigns, the Buyer Indemnified Parties and the Seller
Indemnified Parties, and nothing in this Agreement, express or implied, is
intended to confer upon any other person any rights or remedies of any nature
whatsoever under or by reason of this Agreement.

 

10.12.                  Distributions
and Notices Received After Each Closing Date.  Sellers shall remit to Buyer, promptly upon
receipt thereof, any distributions or notices received by them after each
Closing Date with respect to any Partnership Interest transferred to Buyer.

 

10.13.                  Resolution
of Conflicts.  In the event of
any inconsistency or conflict between the terms and provisions of this
Agreement and the terms and provisions of any document executed by Buyer and/or
Sellers in connection with obtaining any GP Consents (other than the Letter
Agreement), as between Buyer and Sellers, the provisions of this Agreement
shall control.  In the event of conflict
between the provisions of the Letter Agreement and this Agreement, as it may
relate to the subject matter of the Letter Agreement, the provisions of the
Letter Agreement shall control.

 

10.14.                  Notification
by Each Party.  Each party
hereto shall immediately notify the other parties hereto if such party shall
become aware of any fact or circumstance that would 

 

24

 

cause any of such
party’s representations and warranties contained in this Agreement to be
untrue.

 

25

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the 13th day
of February, 2005.

 

	
   

  	
  MVE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James V.
  Mahoney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James V.
  Mahoney

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MIAMI VALLEY
  INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James V.
  Mahoney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James V.
  Mahoney

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALPINVEST/LEXINGTON 2005, LLC

  
	
   

  	
  (“Buyer”)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:   Lexington Advisors Inc.,
  its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilson
  S. Warren

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Wilson S.
  Warren

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President

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