Document:

EX-10.1

 

Exhibit 10.1

SHARE PURCHASE AGREEMENT

by and between

MERCK GENERICS HOLDING GMBH

MERCK S.A.

MERCK INTERNATIONALE BETEILIGUNG GMBH

as Sellers

MERCK KGAA

as Sellers’ Guarantor and Sellers’ Representative

and

MYLAN LABORATORIES INC.

as Purchaser

for the acquisition of

all shares in

Merck dura GmbH,

Merck Generics Group B.V.,

EMD, Inc.,

Merck Generics Belgium B.V.B.A., and

Merck Genericos S.L.

12 May 2007

 

 

Table of Contents

	 	 	 	 	 
	Table of Contents
	 	 	i	 
	Index of Defined Terms and Abbreviations
	 	 	v	 
	List of Exhibits and Schedules
	 	ix  

	Share Purchase Agreement
	 	 	1	 
	Preamble
	 	 	2	 
	1. Definitions and Rules of Construction
	 	 	2	 
	1.1 Certain Defined Terms
	 	 	2	 
	1.2 Headings
	 	 	6	 
	1.3 German Terms
	 	 	7	 
	1.4 General Rules of Construction
	 	 	7	 
	2. Current Status
	 	 	7	 
	2.1 The Companies
	 	 	7	 
	2.2 The Subsidiaries
	 	 	8	 
	3. Sale and Transfer
	 	 	9	 
	3.1 Sale and Transfer of the Shares
	 	 	9	 
	3.2 Repayment of Shareholder Loans and Shareholder Deposits
	 	 	11	 
	3.3 Termination of Cash Management
	 	 	12	 
	4. Purchase Price and Payments
	 	 	13	 
	4.1 Purchase Price
	 	 	13	 
	4.2 Determination and Payment of Final Purchase Price
	 	 	15	 
	4.3 Adjustment of Final Purchase Price
	 	 	16	 
	4.4 General Rules for Payments
	 	 	16	 
	5. Final Accounts
	 	 	17	 
	5.1 Preparation of Effective Date Financial Statements
	 	 	17	 
	5.2 Resolution of Disputes
	 	 	19	 
	6. Regulatory and Other Authorizations
	 	 	20	 
	6.1 Regulatory Procedures
	 	 	20	 
	6.2 Merger Filings
	 	 	21	 
	6.3 Best Efforts
	 	 	21	 
	6.4 Cooperation
	 	 	21	 
	6.5 Other Transactions
	 	 	22	 
	7. CLOSING CONDITIONS
	 	 	22	 
	7.1 Closing Conditions
	 	 	22	 
	7.2 All Reasonable Efforts to Fulfill Closing Conditions
	 	 	24	 
	7.3 Notification of Satisfaction
	 	 	24	 
	7.4 Termination Rights
	 	 	24	 
	8. Closing
	 	 	25	 
	8.1 Closing and Effective Date
	 	 	25	 
	8.2 Closing Venues
	 	 	26	 
	8.3 Closing Actions
	 	 	26	 
	8.4 Closing Confirmation
	 	 	28	 
	9. Representations and Warranties of Sellers
	 	 	28	 
	9.1 Existence and Capacity of Sellers
	 	 	28	 
	9.2 The Companies and the Shares
	 	 	29	 

i

 

	 	 	 	 	 
	9.3 The Subsidiaries
	 	 	30	 
	9.4 Licenses and Permits
	 	 	30	 
	9.5 Financial Statements
	 	 	31	 
	9.6 Conduct of Business since 31 December 2006
	 	 	32	 
	9.7 Real Property and Other Assets
	 	 	33	 
	9.8 Intellectual Property
	 	 	34	 
	9.9 Material Agreements
	 	 	35	 
	9.10 Insurance
	 	 	37	 
	9.11 Personnel
	 	 	37	 
	9.12 Employee Benefits
	 	 	38	 
	9.13 Litigation and Product Liability
	 	 	40	 
	9.14 Environmental Matters
	 	 	40	 
	9.15 Taxes
	 	 	42	 
	9.16 Finders’ Fees
	 	 	43	 
	9.17 Pre-Sale Reorganization
	 	 	43	 
	9.18 Additional Information
	 	 	43	 
	10. Remedies
	 	 	44	 
	10.1 Breach
	 	 	44	 
	10.2 Knowledge
	 	 	45	 
	10.3 De-Minimis, Threshold and Deductible
	 	 	46	 
	10.4 Maximum Liability
	 	 	46	 
	10.5 Limitation Period
	 	 	46	 
	10.6 Willful Misconduct
	 	 	47	 
	10.7 No “Double Dip”
	 	 	47	 
	10.8 Exclusion of other Remedies
	 	 	47	 
	10.9 No Third Party Rights
	 	 	47	 
	10.10 Mitigation
	 	 	48	 
	10.11 Procedure / Third-Party-Claims
	 	 	48	 
	10.12 Reductions of Purchase Price
	 	 	50	 
	10.13 Claims and Agreements
	 	 	50	 
	10.14 Tax and Litigation Indemnity
	 	 	51	 
	11. Purchaser’s Guarantees, Covenants and other Agreements
	 	 	52	 
	11.1 Purchaser’s Representations
	 	 	52	 
	11.2 Remedies
	 	 	53	 
	11.3 Financing
	 	 	53	 
	11.4 Maximum Liability
	 	 	54	 
	11.5 Limitation Period
	 	 	54	 
	11.6 Exclusion of other Remedies
	 	 	55	 
	11.7 Mitigation
	 	 	55	 
	12. Tax Indemnity
	 	 	55	 
	12.1 Tax Indemnity
	 	 	55	 
	12.2 Cooperation on Tax Matters
	 	 	60	 
	12.3 Filing of Tax Returns
	 	 	60	 
	12.4 Control of Tax Audits
	 	 	60	 
	12.5 Tax Covenants
	 	 	61	 
	12.6 Tax Refunds
	 	 	62	 
	12.7 Tax Sharing Agreements
	 	 	62	 
	12.8 Exclusion and Indemnity by Purchaser
	 	 	63	 
	13. Indemnification for Litigation
	 	 	63	 
	13.1 Sellers Indemnification
	 	 	63	 

 

 

	 	 	 	 	 
	13.2 Seller Controlled Litigation
	 	 	63	 
	13.3 Purchaser Controlled Litigation
	 	 	65	 
	13.4 Cooperation of the Parties
	 	 	66	 
	13.5 Insurance Benefits
	 	 	67	 
	13.6 Tax Benefits
	 	 	67	 
	13.7 Mitigation
	 	 	67	 
	13.8 Payment
	 	 	67	 
	13.9 Characterization of Indemnification Payments
	 	 	67	 
	13.10 Exclusivity of Remedies
	 	 	68	 
	14. Pre-Sale Reorganization
	 	 	68	 
	14.1 Continuance of Pre-Sale Reorganization
	 	 	68	 
	14.2 Completion by Sellers of Actions not Finalized upon Closing
	 	 	68	 
	14.3 Conversion and Transfer of EMD Crop Bioscience Inc.
	 	 	69	 
	15. Conduct of Business after Signing
	 	 	69	 
	15.1 Activities between Signing and Closing
	 	 	69	 
	15.2 Advice of Change
	 	 	72	 
	15.3 Consultation
	 	 	72	 
	15.4 Activities between Effective Date and Closing Date
	 	 	73	 
	15.5 Employee Consultations
	 	 	73	 
	15.6 Financing
	 	 	73	 
	15.7 Excluded Businesses
	 	 	75	 
	15.8 Non-Solicitation and Non-Compete
	 	 	76	 
	15.9 Additional Covenants
	 	 	77	 
	16. Brand License, Intellectual Property, Insurance and Guarantees
	 	 	77	 
	16.1 Brand License Agreement
	 	 	77	 
	16.2 Intellectual Property
	 	 	78	 
	16.3 Transitional Service Agreement
	 	 	79	 
	16.4 Insurance Coverage
	 	 	80	 
	16.5 Merck Guarantees
	 	 	80	 
	16.6 Sellers’ Guarantees
	 	 	80	 
	17. Sellers’ Guarantor and Sellers’ Representative
	 	 	81	 
	17.1 Sellers’ Guarantor
	 	 	81	 
	17.2 Guarantees by Sellers’ Guarantor
	 	 	81	 
	17.3 Remedies
	 	 	81	 
	17.4 Authorization of Sellers’ Representative
	 	 	82	 
	18. Public Announcements and Confidentiality
	 	 	82	 
	18.1 Confidentiality
	 	 	82	 
	18.2 Press Release
	 	 	83	 
	18.3 Return of Documents
	 	 	83	 
	19. Notices
	 	 	84	 
	19.1 Form and Addresses
	 	 	84	 
	19.2 Date of Receipt
	 	 	85	 
	20. Costs
	 	 	85	 
	21. Miscellaneous
	 	 	86	 
	21.1 Severability
	 	 	86	 
	21.2 Exhibits
	 	 	86	 
	21.3 Entire Agreement
	 	 	86	 
	21.4 Amendments
	 	 	86	 
	21.5 Assignment and Designation of Transferors
	 	 	86	 
	21.6 Governing Law
	 	 	87	 
	21.7 Arbitration
	 	 	87	 

 

 

Index of Defined Terms and Abbreviations

	 	 	 	 	 
	2004 and 2005 Financial Statements

	 	 	31	 
	2006 Financial Statements

	 	 	2	 
	2007 Accounting Guidelines

	 	 	2	 
	Accounting Firm

	 	 	18	 
	Accounting Guidelines

	 	 	3	 
	Adjustment Purchase Price

	 	 	16	 
	Affiliate

	 	 	3	 
	Agreed Rate

	 	 	3	 
	Agreement

	 	 	1	 
	AktG

	 	 	3	 
	Ancillary Agreements

	 	 	3	 
	Base Purchase Price

	 	 	13	 
	Belgian Tax Benefit

	 	 	58	 
	BGB

	 	 	3	 
	Brand License Agreement

	 	 	77	 
	Breach of Covenant

	 	 	44	 
	Breach of Representations

	 	 	44	 
	Bridge Financing

	 	 	53	 
	Business

	 	 	3	 
	Business Day

	 	 	3	 
	Cash

	 	 	14	 
	Cash Management

	 	 	12	 
	Claim

	 	 	45	 
	Claim Notice

	 	 	48	 
	Closing

	 	 	26	 
	Closing Actions

	 	 	26	 
	Closing Conditions

	 	 	23	 
	Closing Date

	 	 	25	 
	Closing Venue

	 	 	26	 
	Collective Agreements

	 	 	38	 
	Commitment Letter

	 	 	53	 
	Companies

	 	 	2	 
	Company Claims

	 	 	50	 
	Confidentiality Agreement

	 	 	83	 
	Corporate Names

	 	 	3	 
	Covered Proceeding

	 	 	60	 
	Credit Facilities

	 	 	53	 
	Damages

	 	 	63	 
	Debt Securities

	 	 	53	 
	De-Minimis Amount

	 	 	46	 
	Directors and Officers

	 	 	3	 
	Disclosure Schedules

	 	 	28	 
	Dispute

	 	 	87	 
	Dura

	 	 	7	 
	Dura Share

	 	 	7	 

iv

 

	 	 	 	 	 
	Dura Transfer Deed

	 	 	9	 
	Effective Date

	 	 	25	 
	Effective Date Financial Statements

	 	 	17	 
	EMD

	 	 	8	 
	EMD Shares

	 	 	8	 
	Encumbrance

	 	 	3	 
	Environmental Law

	 	 	40	 
	Environmental Permit

	 	 	40	 
	Environmental Reports

	 	 	40	 
	Exceptions

	 	 	18	 
	Excluded Business

	 	 	75	 
	Excluded Jurisdictions

	 	 	68	 
	Final Purchase Price

	 	 	15	 
	Final Purchase Price Statement

	 	 	20	 
	Financial Debt

	 	 	14	 
	Financing

	 	 	53	 
	Genericos Transfer Deed

	 	 	10	 
	Genius Belgium

	 	 	8	 
	Genius Belgium Shares

	 	 	8	 
	Genius Belgium Transfer Deed

	 	 	10	 
	Genius Genericos

	 	 	8	 
	Genius Genericos Shares

	 	 	8	 
	Governmental Authority

	 	 	4	 
	Group Companies

	 	 	9	 
	Group IP

	 	 	34	 
	Guarantee

	 	 	4	 
	Hazardous Materials

	 	 	41	 
	Hypothetical Tax Benefit

	 	 	57	 
	IFRS

	 	 	4	 
	Indebtedness

	 	 	4	 
	Insurance Policies

	 	 	37	 
	Intellectual Property

	 	 	5	 
	Interests

	 	 	5	 
	Interim Loans

	 	 	12	 
	Joint Closing Condition

	 	 	22	 
	Key Employees

	 	 	37	 
	Leased Real Property

	 	 	33	 
	Legal Entity

	 	 	5	 
	LIBOR

	 	 	3	 
	Loss

	 	 	45	 
	Mastermind

	 	 	1	 
	Material Adverse Effect

	 	 	5	 
	Material Agreements

	 	 	35	 
	Merck Guarantees

	 	 	80	 
	MGG

	 	 	7	 
	MGG Shares

	 	 	8	 
	MGG Transfer Deed

	 	 	9	 
	Note Financing

	 	 	53	 
	Occupational Pension Scheme

	 	 	39	 
	Owned Real Property

	 	 	33	 

 

 

	 	 	 	 	 
	Parties

	 	 	1	 
	Pension Plans

	 	 	38	 
	Permits

	 	 	30	 
	Permitted Encumbrances

	 	 	5	 
	Person

	 	 	6	 
	Plan

	 	 	39	 
	Post-Effective Date Tax Period

	 	 	6	 
	Pre-Effective Date Tax Liability

	 	 	6	 
	Pre-Effective Date Tax Period

	 	 	6	 
	Preliminary Purchase Price

	 	 	15	 
	Pre-Sale Reorganization

	 	 	68	 
	Purchase Price

	 	 	13	 
	Purchase Price Determination Statement

	 	 	17	 
	Purchaser

	 	 	1	 
	Purchaser Claim Counsel

	 	 	66	 
	Purchaser Controlled Litigation

	 	 	65	 
	Purchasers Knowledge

	 	 	46	 
	Real Property

	 	 	33	 
	Release

	 	 	41	 
	Required Financial Information

	 	 	74	 
	Revised Statement

	 	 	18	 
	Scheduled Litigation

	 	 	63	 
	Secure System Separation Activities

	 	 	79	 
	Seller 1

	 	 	1	 
	Seller 2

	 	 	1	 
	Seller 3

	 	 	1	 
	Seller Claim Counsel

	 	 	64	 
	Seller Closing Conditions

	 	 	23	 
	Seller Controlled Litigation

	 	 	64	 
	Sellers

	 	 	1	 
	Sellers’ Affiliate

	 	 	6	 
	Sellers Claims

	 	 	51	 
	Sellers’ Guarantor

	 	 	1	 
	Sellers’ Knowledge

	 	 	6	 
	Sellers’ Representative

	 	 	1	 
	Senior Credit Facilities

	 	 	53	 
	Shareholder Loans

	 	 	11	 
	Shares

	 	 	8	 
	Signing Date

	 	 	6	 
	Straddle Period

	 	 	6	 
	Subsidiaries

	 	 	8	 
	Subsidiary Loans

	 	 	13	 
	Subsidiary Shares

	 	 	9	 
	Target Working Capital

	 	 	14	 
	Tax

	 	 	6	 
	Tax Benefit

	 	 	57	 
	Tax Indemnity De Minimis Amount

	 	 	59	 
	Tax Indemnity Threshold

	 	 	59	 
	Taxing Authority

	 	 	6	 
	Third Party Claim

	 	 	48	 

 

 

	 	 	 	 	 
	Third Party Expert

	 	 	19	 
	Threshold

	 	 	46	 
	Trademark

	 	 	6	 
	Transitional Services Agreement

	 	 	27	 
	U.S. Securities Act

	 	 	73	 
	UK Pension Scheme

	 	 	38	 
	Working Capital

	 	 	14	 
	Working Capital Adjustment

	 	 	14	 
	Working Capital Difference

	 	 	14	 

 

 

List of Exhibits and Schedules

	 	 	 	 	 
	Exhibit 1.1(a)
	 	2006 Financial Statements
	Exhibit 1.1(b)
	 	2007 Accounting Guidelines
	Exhibit 1.1(c)
	 	Sellers’ Knowledge
	Exhibit 2.2
	 	Subsidiaries
	Exhibit 3.1.2(a)
	 	Dura Transfer Deed
	Exhibit 3.1.2(b)
	 	MGG Transfer Deed
	Exhibit 3.1.2(d)
	 	Merck Belgium Transfer Deed
	Exhibit 3.1.2(e)
	 	Genericos Transfer Deed
	Exhibit 3.1.4
	 	Form of Merck Belgium Shareholder Consent
	Exhibit 3.2.1
	 	Shareholder Loans
	Exhibit 3.3.1
	 	Cash Management
	Exhibit 3.4.1
	 	Subsidiary Loans
	Exhibit 4.1.4
	 	Purchase Price Allocation
	Exhibit 7.1
	 	Competition Law Approvals
	Exhibit 8.3.14
	 	Transitional Services Agreement
	Exhibit 8.4
	 	Form of Closing Confirmation
	Disclosure Schedule 9.3.2
	 	Encumbrances on Subsidiary Shares
	Disclosure Schedule 9.4.1 
	 	Permits
	Disclosure Schedule 9.4.2
	 	Compliance with Permits and Laws
	Disclosure Schedule 9.5(c)
	 	Undisclosed Liabilities
	Disclosure Schedule 9.6.2
	 	Ordinary Course
	Disclosure Schedule 9.7.1
	 	Real Property
	Disclosure Schedule 9.7.2
	 	Real Property Encumbrances
	Disclosure Schedule 9.8.1
	 	Intellectual Property
	Disclosure Schedule 9.8.2
	 	IP Encumbrances
	Disclosure Schedule 9.8.4
	 	IP Claims by Third Parties
	Disclosure Schedule 9.8.6
	 	IP Infringements
	Disclosure Schedule 9.9
	 	Material Agreements
	Disclosure Schedule 9.9.2
	 	Terminated Material Agreements
	Disclosure Schedule 9.9.4
	 	Conflicts with Material Agreements
	Disclosure Schedule 9.10.1
	 	Insurance Overview
	Disclosure Schedule 9.10.1(a)
	 	Self-Insurance Overview
	Disclosure Schedule 9.11.1
	 	Key Employees
	Disclosure Schedule 9.11.2
	 	Key Employee Terminations
	Disclosure Schedule 9.11.3
	 	Transaction Bonuses
	Disclosure Schedule 9.11.4 
	 	Labor Disputes
	Disclosure Schedule 9.11.5
	 	Collective Agreements
	Disclosure Schedule 9.12.2
	 	Pension Plans
	Disclosure Schedule 9.13.1 
	 	Litigation
	Disclosure Schedule 9.13.2
	 	Product Recalls
	Disclosure Schedule 9.14.1(c)
	 	Environmental Reports
	Disclosure Schedule 9.14.2(a)
	 	Environmental Claims
	Disclosure Schedule 9.14.5
	 	Releases of Hazardous Materials
	Disclosure Schedule 9.15.5
	 	Tax Appeals
	Exhibit 9.18
	 	Additional Information
	Exhibit 13.1
	 	Indemnified Litigation

viii

 

	 	 	 	 	 
	Exhibit 14.1(a)
	 	Post-Effective Date Reorganization Actions
	Exhibit 14.1(b) 
	 	Excluded Jurisdictions
	Exhibit 15.1.1
	 	Activities between Signing and Closing
	Exhibit 15.4
	 	Activities between Closing and Effective Date
	Exhibit 15.5
	 	Employee Consultations
	Exhibit 15.9.2
	 	Pension Matters
	Exhibit 15.9.3
	 	Form of FIRPTA Certificate
	Exhibit 16.1.1
	 	Form of Brand License Agreement
	Exhibit 16.2.3
	 	Licensed IP
	Exhibit 16.3
	 	Excluded Services
	Exhibit 16.4
	 	Insurance
	Exhibit 16.5.1
	 	Merck Guarantees

ix

 

Share Purchase Agreement

This Share Purchase Agreement (this “Agreement”) is made as of 12 May 2007 by and between

	1.	 	Merck Generics Holding GmbH, a limited liability company organized under the laws of Germany
and registered with the commercial register (Handelsregister) of the municipal court
(Amtsgericht) of Darmstadt, Germany, under HRB 7759,

 - “Seller 1” -

	2.	 	Merck S.A., a stock corporation organized under the laws of France and registered with the
commercial register (registre de commerce et des sociétés) of Lyon under no. 777335340 RCS
Lyon,

 - “Seller 2” -

	3.	 	Merck Internationale Beteiligung GmbH, a limited liability company organized under the laws
of Germany and registered with the commercial register of the municipal court of Darmstadt,
Germany, under HRB 8239,

 - “Seller 3” -

 - Seller 1, Seller 2 and Seller 3

jointly the “Sellers” –

	4.	 	Merck KGaA, a partnership limited by shares organized under the laws of Germany and
registered with the commercial register of the municipal court of Darmstadt, Germany, under
HRB 6164,

 - “Merck”, and also referred to as

“Sellers’ Guarantor” and “Sellers’ Representative” -

	5.	 	Mylan Laboratories Inc., a corporation organized under the laws of the Commonwealth of
Pennsylvania with business address at 1500 Corporate Drive, Canonsburg, Pennsylvania 15317,
U.S.A.;

 - “Purchaser ” -

 - Sellers, Sellers’ Guarantor and Purchaser

are also referred to as “Parties”

 

 

Preamble

WHEREAS, Purchaser is interested in acquiring the generics business operated by Merck through
various direct and indirect subsidiaries;

WHEREAS, Dura GmbH, Merck Generics Group B.V., EMD, Inc., Merck Generics Belgium B.V.B.A. and Merck
Genericos S.L. (together, the “Companies”) and the Companies’ respective subsidiaries are active in
the development, manufacture and distribution of generic drugs and specialty products;

WHEREAS, simultaneous with the execution of this Agreement, certain members of management of the
Group Companies are entering into employment agreements with Purchaser or certain of its
Affiliates, which employment agreements shall be conditioned on the Closing and become effective on
the Closing Date; and

WHEREAS, Purchaser intends to acquire from Sellers, and Sellers intend to sell to Purchaser, all of
the issued shares in the Companies;

NOW THEREFORE, the Parties agree as follows:

1.

 DEFINITIONS AND RULES OF CONSTRUCTION

1.1 Certain Defined Terms

In this Agreement, except where set forth otherwise, the following terms and abbreviations
shall have the following meanings:

“2006 Financial Statements”: The audited consolidated balance sheet, the audited consolidated
profit and loss statement and the audited consolidated statement of free cash flow of the
Companies and the Subsidiaries, as of 31 December 2006 for the year then ended, as adjusted
for the factors stated in the basis for their preparation and as attached hereto as part of
Exhibit 1.1 (a);

“2007 Accounting Guidelines”: Those parts of the Accounting Guidelines applicable to the
fiscal year 2007, that are attached hereto as Exhibit 1.1 (b);

2

 

“Accounting Guidelines”: The accounting principles, methods and policies specified in the
accounting guidelines of the Merck group, which are based on and consistent with IFRS, for
the years ended 31 December 2004, 2005 and 2006, respectively, that were made available to
Purchaser in the Data Room;

“Affiliate”: With respect to any Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by or is
under common control with such Person; for purposes of this definition, “control” when used
with respect to any Person, shall mean the possession, directly or indirectly, of the power
to appoint, direct or cause the direction of the management or to decide or cause the
decision upon policies of such Person, whether through contract or the ownership, directly or
indirectly, of more than 50% of the voting or equity securities or other interests of any
such Person;

“Agreed Rate”: LIBOR plus 1.0%. For this purpose, “LIBOR” means the London Interbank
Borrowing Rate fixing as quoted by the British Bankers Association on Bloomberg, on the day
before the term of the relevant interest period starts, with a term corresponding to the
period for which interest is to be calculated and, if LIBOR is not available for such period,
the next longer period for which LIBOR is available;

“AktG”: The German Stock Corporation Act (Aktiengesetz);

“Ancillary Agreements”: The Brand License Agreement and the Transitional Services Agreement;

“BGB”: The German Civil Code (Bürgerliches Gesetzbuch);

“Business”: The development, manufacture and distribution of generic drugs and specialty
products, as conducted by the Group Companies on the Signing Date, after giving effect to the
completion of the Pre-Sale Reorganization;

“Business Day”: Any day that is not a Saturday, Sunday or public holiday in Frankfurt am
Main, Germany;

“Corporate Names ”: Any corporate names and trade names;

“Directors and Officers”: Any director, officer, managing director (Geschäftsführer) or
member of any other statutory board or body of representation of any Legal Entity;

“Encumbrance”: Any security interest, pledge, hypothecation, mortgage, land charge or

3

 

lien (or comparable legal rights in any applicable jurisdiction); and any interest of a vendor or
a lessor under any conditional sale agreement, capital lease or title retention agreement (or
any financing lease having substantially the same economic effect as any of the foregoing);

“Governmental Authority”: Any federal, national, state, local, municipal, or international
government, governmental, regulatory, legislative or administrative authority, agency or
commission, or any court, tribunal, or judicial or arbitral body of competent jurisdiction;

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, direct or
indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply funds for the
purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (d) as an account party in
respect of any letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for collection
or deposit in the ordinary course of business;

“IFRS”: The International Financial Reporting Standards as promulgated by the International
Accounting Standards Board (IASB) and as in effect from time to time and at the relevant
point of time, that may include standards that can be applied on a voluntary basis, in each
case applied consistently throughout the periods involved;

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes
or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property acquired by such Person, (d) all obligations
of such Person in respect of the deferred purchase price of property or services (excluding
current accounts payable incurred in the ordinary course of business and milestone payments
incurred in connection with any investment or series of related investments), (e) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Encumbrance on property owned
or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed,
(f) all Guarantees by such Person of Indebtedness of others, (g) all obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement conveying the
right to use) real or personal property, or a combination thereof, which obligations would be
required to be classified and accounted for as capital leases on a balance sheet of such
Person, (h) all obligations,

4

 

contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty, (i) all obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances, (j) all obligations of such
Person under any swap agreement or under any similar type of agreement, (k) all obligations
under any receivables facility, including obligations that would be Indebtedness outstanding
at such time under such receivables facility if the same were structured as a secured lending
agreement rather than a purchase agreement, (l) in the case of any sale and leaseback
transaction not constituting a capital lease, the present value (discounted at the
interest rate implicit in such transaction) of the total obligations of the lessee for rental
payments during the remaining term of the lease included in such sale and leaseback
transaction (including any period for which such lease has been extended) and (m) all
obligations of such Person under any synthetic lease transaction. The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any partnership in which
such Person is a general partner) to the extent such Person is expressly liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity and
pursuant to contractual arrangements, except to the extent the terms of such Indebtedness
provide that such Person is not liable therefor;

“Intellectual Property”: Any patent, utility model, copyright, design right, design right
registration, Trademark, trade secret and database right, in each case whether registered or
unregistered, and all rights or forms of intellectual property protection having equivalent
or similar effect anywhere in the world; for purposes hereof, “registered” shall include
registrations and applications for registrations;

“Interests”: Any shares, partnership interests or other equity interests in any Legal Entity
or rights to acquire any of the foregoing;

“Legal Entity”: Any corporation, company, partnership, association or other legal entity
validly established pursuant to the laws of any jurisdiction;

“Material Adverse Effect”: Any event, circumstance, or change in, or effect on, the Business
that is materially adverse to the business, assets, results of operation or financial
condition of the Group Companies taken as a whole;

“Permitted Encumbrances”: Any (i) retention of title rights, liens, pledges or similar
Encumbrances in favor of suppliers, mechanics, carriers, workmen, landlords and the like or
similar liens arising or incurred in the ordinary course of business relating to obligations
that are not delinquent beyond the applicable cure periods or that are being contested in
good faith; (ii) liens for Taxes, assessments and charges and similar claims that in all such
cases are either not yet due and payable, or the validity of which is being contested in good
faith; and (iii) easements, covenants, rights of way and similar restrictions that do not and
would not materially impair the use or value of such property for its current purposes;

5

 

“Person”: Any natural person or any Legal Entity;

“Pre-Effective Date Tax Liability”: Any Tax liability of any Group Company for a
Pre-Effective Date Tax Period, including, for the avoidance of doubt, any Tax liability
attributable to any Pre-Sale Reorganization measure set forth in Exhibit 14.1 (c);

“Pre-Effective Date Tax Period”: Any taxable period (or portion thereof) ending on or before
the Effective Date;

“Post-Effective Date Tax Period”: Any taxable period (or portion thereof) beginning after
the Effective Date;

“Sellers’ Affiliate”: Any Affiliate of any Seller other than the Group Companies;

“Sellers’ Knowledge”: Solely the actual knowledge (positive Kenntnis) as of the Signing Date
of the individual persons listed on Exhibit 1.1 (d);

“Signing Date”: The day on which this Agreement is notarized;

“Straddle Period”: Any taxable period that begins before and ends after the Effective Date;

“Tax”: Any tax, levy or duty within the meaning of Section 3 German Tax Act (Abgabenordnung)
or similar tax, levy or duty under applicable foreign law as well as social security
contributions including any related fine, penalty, surcharge or interest;

“Taxing Authority”: Any Governmental Authority with the authority to assess a Tax; and

“Trademark”: Any registered and unregistered trademarks and service marks, including logos,
slogans, Corporate Names, product names, domain names, and applications to register any of
the foregoing, together with the goodwill symbolized by any of the foregoing.

1.2 Headings

The headings in this Agreement are inserted for convenience only and shall not affect the
interpretation of this Agreement.

6

 

1.3 German Terms

If any provision in this Agreement contains an English term after which either in the same
provision or elsewhere in this Agreement a term or terms in German have been added in
parentheses and/or italics, then it shall be solely such German term and not the English term
that is decisive for the interpretation of the respective provision.

1.4 General Rules of Construction

The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation” and shall not be construed to
express limitation in any way. The word “will” shall be construed to have the same meaning
and effect as the word “shall”. Unless the context requires otherwise (i) any definition of,
or reference to, any agreement, instrument or other document herein shall be construed as
referring to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (ii) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (iii) the words “herein”,
“hereof”, “hereby” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (v) the words
“immediately” and “promptly” shall mean without undue delay (ohne schuldhaftes Zögern), and
(vi) all references herein to Sections, Exhibits and Disclosure Schedules shall be construed
to refer to Sections of, and Exhibits and Disclosure Schedules to, this Agreement unless
indicated otherwise in this Agreement.

2.

 CURRENT STATUS

2.1 The Companies

	 	2.1.1	 	Dura. Merck dura GmbH (“Dura”) is a limited liability company
(GmbH) organized under the laws of Germany and registered with the commercial register
of the municipal court (Amtsgericht) of Darmstadt, Germany, under HRB 6211. The stated
capital (Stammkapital) of Dura is EUR 25,850 represented by one share in the nominal
amount of EUR 25,850 (the “Dura Share”). Seller 1 holds the Dura Share.
	 
	 	2.1.2	 	MGG. Merck Generics Group B.V. (“MGG”) is a private company with
limited liability (besloten vennootschap met beperkte aansprakeljkheid) organized
under

7

 

	 	 	 	the laws of the Netherlands with its statutory seat in Rotterdam, having its
place of business at Prins Bernardplain 200, 1097 JB Amsterdam, and registered with
the commercial register (Kammer van Koophandel) of Amsterdam under 24171754. The
stated issued capital of MGG is EUR 190,501 represented by 381,002 shares (the “MGG
Shares”). Seller 1 holds all MGG Shares.
	 
	 	2.1.3	 	EMD. EMD, Inc. (“EMD”) is a corporation organized under the laws of
Delaware, U.S.A. The authorized share capital of EMD consists of 100 shares of common
stock, par value USD 0.01 per share,
100 shares of which are issued and outstanding (such issued and outstanding shares,
the “EMD Shares”). Seller 2 holds all EMD Shares.
	 
	 	2.1.4	 	Merck Belgium. Merck Generics Belgium B.V.B.A. (“Merck Belgium”) is
a limited liability company (Besloten Vennootschap met Beperkte Aansprakelijkheid)
organized under the laws of Belgium, having its registered office at 3090 Overijse,
Brusselsesteenweg 288. The stated capital (maatschappelijk kapitaal) of Merck Belgium
amounts to EUR 18,550 represented by 18,550 nominative shares (aandelen opnaam).
Seller 3 holds 18,549 Merck Belgium shares (the “Merck Belgium Shares”) and MGG holds
one share in Merck Belgium.
	 
	 	2.1.5	 	Merck Genericos. Merck Genericos S.L. (“Merck Genericos”) is a
limited liability company (Sociedad de Responsabilidad Limitada) validly existing and
incorporated under the laws of Spain and registered with the commercial registry of
Barcelona, at page 75, sheet B-240,742, volume 34,115. The stock capital of Merck
Genericos amounts to EUR 2,560,000 represented by 2,560 stock quotas (Participaciones
Socialesi) (the “Merck Genericos Shares”). Seller 3 holds all Merck Genericos Shares.
	 
	 	2.1.6	 	Definitions. The Dura Share, the MGG Shares, the EMD Shares, the
Merck Belgium Shares and the Merck Genericos Shares are hereinafter also referred to
as the “Shares”.

2.2 The Subsidiaries

	 	2.2.1	 	Subsidiaries. The Companies directly and indirectly hold the
Interests in the Legal Entities as set forth in Exhibit 2.2 (and except as set forth
therein, hold no other Interests in Legal Entities).
	 
	 	2.2.2	 	Definitions. The Legal Entities listed on Exhibit 2.2 shall be
referred to as the “Subsidiaries”. The Companies and the Subsidiaries shall be jointly
referred to as 

8

 

	 	 	 	the “Group Companies”. The Interests in the Subsidiaries as set forth
in Exhibit 2.2 shall be referred to as the “Subsidiary Shares”.

3.

 SALE AND TRANSFER

3.1 Sale and Transfer of the Shares

	 	3.1.1	 	Sale and Purchases. Each Seller hereby sells to Purchaser, in each
case with economic effect as of the Effective Date, the Shares as follows:

	 	(a)	 	Seller 1 hereby sells (verkauft) the Dura Share and the MGG
Shares to Purchaser, and Purchaser hereby accepts such sale;
	 
	 	(b)	 	Seller 2 hereby sells (verkauft) the EMD Shares to Purchaser,
and Purchaser hereby accepts such sale; and
	 
	 	(c)	 	Seller 3 hereby sells (verkauft) the Merck Belgium Shares and
the Merck Genericos Shares to Purchaser, and Purchaser hereby accepts such
sale.

	 	3.1.2	 	Transfer. Subject to the satisfaction or waiver of the Closing
Conditions and the terms and conditions of this Agreement, at the Closing Date, each
Seller shall transfer to Purchaser the Shares sold pursuant to Section 3.1.1 above, and
Purchaser shall accept such transfer, by way of separate transfer deeds as follows:

	 	(a)	 	Seller 1 shall transfer its Dura Share to Purchaser (or its
designee in accordance with Section 21.5) by way
of a notarial transfer deed in substantially the form set forth in Exhibit 3.1.2(a)
(the “Dura Transfer Deed”);
	 
	 	(b)	 	Seller 1 shall transfer the MGG Shares to Purchaser (or its
designee in accordance with Section 21.5) by way
of a notarial transfer deed in substantially the form set forth in Exhibit 3.1.2(b)
(the “MGG Transfer Deed”);
	 
	 	(c)	 	Seller 2 shall transfer the EMD Shares to Purchaser (or its
designee in accordance with Section 21.5) by way
of due endorsement and delivery of the certificate(s) representing the EMD
Shares;

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	 	(d)	 	Seller 3 shall transfer the Merck Belgium Shares to Purchaser
(or its designee in accordance with Section 21.5) by way of a written transfer deed (the “Merck Belgium Transfer Deed”)
in substantially the form set out in Exhibit 3.1.2(d); and
	 
	 	(e)	 	Seller 3 shall transfer the Merck Genericos Shares to
Purchaser (or its designee in accordance to Section 21.5) by way of a notarial transfer deed (the “Genericos Transfer Deed”)
in substantially the form set out in Exhibit 3.1.2(e).

	 	3.1.3	 	Ancillary Rights. The Shares are sold and transferred with all
ancillary rights appertaining thereto (Nebenrechte), including all dividend rights
(Gewinnbezugsrecht) to profits pertaining to previous business years and
the current business year that have not been distributed before the Effective Date.
	 
	 	3.1.4	 	Corporate Consent. Seller 3 shall consent, and Seller 1 shall cause
MGG to consent, as shareholders of Merck Belgium to the sale and transfer of the Merck
Belgium Shares pursuant to this Agreement, such consent being in substantially the
form set out in Exhibit 3.1.4.
	 
	 	3.1.5	 	Structure of Transaction. At the election of Purchaser, (i) any one
or more Affiliates of Purchaser may be substituted for Purchaser in the transaction
and (ii) Purchaser or any such substituted purchaser or purchasers may directly
acquire Interests in any Subsidiary, either in lieu of or in addition to acquisitions
of the Shares in the Companies set forth in this Section 3.1, provided that Purchaser
shall not take any such actions that can reasonably be expected to prevent or
materially hinder or delay the consummation of the transactions contemplated by this
Agreement and provided further that this Section 3.1.5 does not permit the direct
acquisition of Interests in Dey Inc. The parties will cooperate in good faith to
effectuate any such substitution and/or change in the acquisition structure, including
executing any necessary or advisable amendments to this Agreement in order to reflect
the foregoing. Purchaser will agree to an appropriate full indemnification arrangement
with Sellers and Sellers’ Affiliates to the extent such change in acquisition
structure increases the tax costs to Sellers and Sellers’ Affiliates above the amount
of costs that would have been incurred in connection with the sales and transfers set
forth in this Section 3.1. as of the Signing Date. All incremental costs and expenses
(including reasonable out of pocket expenses for counsel) incurred by Sellers or
Sellers’ Affiliates in connection with the implementation of any substitution or
change in the acquisition structure contemplated by this Section 3.1.5 shall be
reimbursed, and all risks related to such acquisition structure shall be assumed, by
Purchaser. Any changes to the structure pursuant to this Section 3.1.5 shall be
disregarded for purposes of Section 9 of this Agreement.

10

 

	 	3.1.6	 	EMD Crop Bioscience. Purchaser shall use its best efforts after the
Signing Date to optimize the tax position of Sellers and Sellers’ Affiliates with
respect to EMD Crop Bioscience Inc. (which may involve the transfer of such entity
after the Closing), provided that separate outside tax counsel to each of the
financing sources under the Commitment Letter, Sellers and Purchaser have provided an
opinion reasonably acceptable to such financing sources and Purchaser with respect to
the transactions contemplated with respect to EMD Crop Bioscience Inc. All
incremental costs and expenses (including reasonable out of pocket expenses for
counsel) incurred by Purchaser in connection with the implementation of the actions
contemplated by this Section 3.1.6 shall be reimbursed, and all risks related to such
actions shall be assumed, by Sellers and Sellers’ Affiliates.

3.2 Repayment of Shareholder Loans and Shareholder Deposits

	 	3.2.1	 	Details of Shareholder Loans and Shareholder Deposits. Sellers’
Guarantor, Sellers and certain of Sellers’ Affiliates have granted to certain of the
Group Companies loans or have deposited with certain of the Group Companies funds
(together the “Shareholder Loans”), which Shareholder Loans as of the Signing Date are
set forth in Exhibit 3.2.1. Additional Shareholder Loans may be granted after the Signing
Date on arm’s length terms by Sellers and Sellers’ Affiliates (in accordance with the
terms of this Agreement).
	 
	 	3.2.2	 	Repayment. Purchaser agrees that the Shareholder Loans together
with interest accrued thereon up to the repayment date will be repaid by the
respective borrower to the respective lender. At the option of Sellers’
Representative, repayment will be made either on or prior to Closing. For the
avoidance of doubt, any amounts (including accrued interest) not repaid on or prior to
the Effective Date shall be deemed to constitute Financial Debt.
	 
	 	3.2.3	 	Direct Payment. If the repayment of the Shareholder Loans takes
place at Closing, the funds for the satisfaction of all obligations of the respective
borrowers under the Shareholder Loans will be made available by Purchaser to the
borrowers on the basis of new shareholder loans or, in case Shareholder Loans may not
be repaid at such time for legal reasons, by contribution of equity. Purchaser shall,
subject to the satisfaction or the waiver of the Closing Conditions and the terms and
conditions of this Agreement, at Closing, pay the amounts owed under the Shareholder
Loans on such date on behalf of the borrowers directly to the lenders, and such
payments are made in performance (Erfüllung) of (i) the borrowers’ obligations to
repay the Shareholder Loans, and (ii) Purchaser’s obligation to lend, and make
available, to the borrowers the respective funds under the new shareholder loans or as
equity, as the case may be.

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3.3 Termination of Cash Management

	 	3.3.1	 	Cash Management. Certain of the Group Companies as well as various
Sellers’ Affiliates are presently participating in cash pooling arrangements involving
external banks or in an inhouse bank concept (“finavigate”) under which intercompany
clearing takes place; further, intercompany transactions of Group Companies are
settled on intercompany accounts that Group Companies hold with an inhouse bank of
Sellers’ Affiliates (such arrangements, concept and accounts together, the “Cash
Management”). The aggregate balances of credits and debits under the Cash Management
as of 31 March 2007 are set forth in Exhibit 3.3.1.
	 
	 	3.3.2	 	Termination of Existing Cash Management. On or before Closing, the
Cash Management between the Group Companies and Sellers’ Affiliates will be
terminated and all payment claims and obligations of the Group Companies and
Sellers’ Affiliates will be settled so that all claims and liabilities resulting
from Cash Management will be zero as of Closing. The effective date of the
termination will be determined by Sellers’ Representative in its discretion.
	 
	 	3.3.3	 	Payment of Obligations under the Cash Management. If individual
Cash Management liabilities of Group Companies cannot be paid by Group Companies for
legal reasons, Sellers will procure that interim loans are granted to such entities at
arm’s length terms by other Group Companies, or by third parties or Sellers’
Affiliates (in each case, in accordance with the terms of this Agreement), in order to
enable the Group Companies to satisfy their Cash Management liabilities or transform
such Cash Management liabilities into interim loans or interim deposits.
	 
	 	3.3.4	 	Interim Loans. To the extent that any of the Group Companies is in
need of liquidity as a result of the termination of the Cash Management prior to
Closing, Sellers shall ensure that interim loans or interim deposits at arm’s length
terms are provided to such Group Companies by other Group Companies, or third parties
or Sellers’ Affiliates (in each case, in accordance with the terms of this Agreement).
	 
	 	3.3.5	 	Repayment of Loans. To the extent that interim loans or interim
deposits are granted or made by Sellers’ Affiliates to Group Companies, or interim
loans or interim deposits by Sellers’ Affiliates result from a transformation of Cash
Management liabilities, in accordance with Section 3.3.3 or Section 3.3.4 above (together, the
“Interim Loans”), Purchaser shall repay the principal of such loans outstanding at
Closing and any accrued interest in respect thereof to the respective lenders at
Closing. For the avoidance of doubt, any such amounts (including accrued interest) not
repaid on or prior to the Effective Date shall be deemed to constitute Financial Debt.
Section 3.2.3 applies, mutatis mutandis.

12

 

3.4 Repayment of Subsidiary Loans

	 	3.4.1	 	Details of Subsidiary. The Group Companies have granted to Sellers
and Sellers’ Affiliates loans (the “Subsidiary Loans”) as set forth in Exhibit 3.4.1.
	 
	 	3.4.2	 	Repayment. Sellers’ Representative agrees to ensure that the
Subsidiary Loans will be repaid together with interest accrued thereon up to the
repayment date. At the option of Sellers’ Representative, repayment will be made
either prior to or at Closing.

4.

 PURCHASE PRICE AND PAYMENTS

4.1 Purchase Price

	 	4.1.1	 	Purchase Price. The aggregate purchase price for the Shares sold
under Section 3 (the “Purchase Price”) shall amount to

EUR 4,900,000,000

(in words: Euro four billion nine hundred million)

(the “Base Purchase Price”)

plus

(a) the Cash of the Group Companies on a consolidated basis;

minus

(b) the Financial Debt of the Group Companies on a consolidated
basis;

plus (minus)

(c) the Working Capital Adjustment.

Each of the components of the Purchase Price set out in clauses (a), (b) and (c)
will be calculated as of the Effective Date.

13

 

	 	4.1.2	 	Definitions. The following terms shall have the following meanings:

	 	(a)	 	“Cash” means the sum of (i) cash and cash-equivalents and
(ii) securities and other financial investments, both as defined in greater
detail in paragraphs 2.1 and 2.2 of the 2007 Accounting Guidelines, and (iii)
to the extent not covered by (i) or (ii), all receivables held by Genpharm
Inc. under loans granted to Gennium Pharma Inc.
	 
	 	(b)	 	“Financial Debt” means the sum of (i) current financial
liabilities, (ii) non-current financial liabilities, and (iii) pensions and
other post-employment benefits netted with (iv) deferred pension expenses, (i)
through (iv) as defined in greater detail in paragraphs 4.1, 5.1, 5.4,
2.5.13291 and 2.5.132911 of the 2007 Accounting Guidelines, and (v) Tax
liabilities, provisions and reserves recognized for Pre-Sale Reorganization
measures set forth in Part 8 (U.S.) of Exhibit 14.1.
	 
	 	(c)	 	“Target Working Capital” shall mean Euro 382,000,000.
	 
	 	(d)	 	“Working Capital” means the difference between (i) the sum of
(A) trade receivables and (B) inventories, and (ii) trade payables, all as
defined in greater detail in paragraphs 2.3, 2.4 and 4.2 of the 2007
Accounting Guidelines.
	 
	 	(e)	 	“Working Capital Difference” shall mean the difference
between the Working Capital and the Target Working Capital.
	 
	 	(f)	 	“Working Capital Adjustment” shall

	 	(i)	 	mean, if the Working Capital exceeds the
Target Working Capital, the addition of the entire Working Capital
Difference to the Base Purchase Price when calculating the Purchase
Price pursuant to Section 4.1.1;
	 
	 	(ii)	 	mean, if the Working Capital is less than
the Target Working Capital, subtraction of the entire Working Capital
Difference from the Base Purchase Price when calculating the Purchase
Price pursuant to Section 4.1.1; and
	 
	 	(iii)	 	otherwise be zero.

14

 

	 	4.1.3	 	Preliminary Payment. The “Preliminary Purchase Price” shall be the
amount notified by Sellers to Purchaser not later than three Business Days after the
Closing Conditions have been satisfied or waived, such amount to be equal to Sellers’
Representative’s reasonable estimate of the Purchase Price as of the Closing Date. The
notification will include estimates of each of the components of the Purchase Price
set out in Sections 4.1.1(a), (b) and (c) and will also include a schedule of any amounts that
will be payable at Closing pursuant to Sections 3.2.3, 3.3.5 and 3.4.2.
	 
	 	4.1.4	 	Allocation. The Purchase Price shall be allocated in accordance
with Exhibit 4.1.4.

4.2 Determination and Payment of Final Purchase Price

	 	4.2.1	 	Final Purchase Price. The Purchase Price shall be considered
finally determined once the Effective Date Financial Statements and the Purchase Price
Determination Statement become final and binding in accordance with Section 5. The
“Final Purchase Price” shall be the Purchase Price as set forth in the Final Purchase
Price Statement.
	 
	 	4.2.2	 	Adjustment. Any difference between the Final Purchase Price and the
Preliminary Purchase Price shall be paid as follows:

	 	(a)	 	If the Final Purchase Price exceeds the Preliminary Purchase
Price, Purchaser shall pay to Sellers an amount equal to the excess plus
interest on such excess from and including the Effective Date to, but
excluding, the date of actual payment; and
	 
	 	(b)	 	If the Final Purchase Price is less than the Preliminary
Purchase Price, Sellers shall pay to Purchaser an amount equal to the sum of
(i) the shortfall, (ii) the interest paid at Closing on the Preliminary
Purchase Price to the extent attributable to such shortfall, and (iii)
interest on the sum of (i) and (ii) from and including the Closing Date to,
but excluding, the date of actual payment,

any such amount to be paid by Purchaser or Sellers, as the case may be, shall be
paid within ten Business Days after the Effective Date Financial Statements have
become final and binding upon the Parties in accordance with Section 5. The
interest rate shall be the Agreed Rate, provided, however, that if the payment is
not made within these ten Business Days, Section 4.4.4 shall apply with respect to the
subsequent time-period until such payment is actually made.

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4.3 Adjustment of Final Purchase Price

	 	4.3.1	 	Adjustment for Pre-Sale Reorganization. The Final Purchase Price
shall be adjusted as of the date that is 15 Business Days after the completion of all
the Pre-Sale Reorganization matters set forth on Exhibit 14.1(a) for direct effects of
the Pre-Sale Reorganization on Cash, Financial Debt and Working Capital of the Group
Companies that arise after the Effective Date (the “Adjustment Purchase Price”). The
effects of Taxes attributable to the Pre-Sale Reorganization which have not been taken
into account as Financial Debt shall be disregarded and such Taxes shall solely be
covered by Section 12.
	 
	 	4.3.2	 	Payments. Sellers shall pay to Purchaser and Purchaser shall pay to
Sellers the amount by which the Adjustment Purchase Price falls short of, or exceeds,
the Final Purchase Price, as the case may be, plus interest on such difference from
and including the date on which the respective Pre-Sale Reorganization measure is
completed. The payment shall be made within ten (10) Business Days of the date on
which the Adjustment Purchase Price has become final and binding upon the Parties. The
interest rate shall be the Agreed Rate, provided, however, that if the payment is not
made within these ten (10) Business Days, Section 4.4.4 shall apply with respect to
the subsequent time-period until payment is actually made.
	 
	 	4.3.3	 	Determination of Adjustment Purchase Price. The Adjustment Purchase
Price shall be determined in accordance with Section 5, which shall apply, mutatis
mutandis.
	 
	 	4.3.4	 	Allocation of Adjustment Purchase Price. The Adjustment Purchase
Price shall be allocated to the Companies by the respective direct effects on Cash,
Financial Debt and Working Capital pursuant to Section 4.3.1 for each respective
Company (including its respective Subsidiaries). The amount of the Final Purchase
Price allocated to the respective Companies pursuant to Section 4.1.4 shall increase
or decrease accordingly.

4.4 General Rules for Payments

	 	4.4.1	 	Modes of Payment. Any payments under this Agreement shall be made
by wire transfer in immediately available funds, with value as of the relevant due
date set out in this Agreement or otherwise provided by law, free of bank fees and any
other charges.
	 
	 	4.4.2	 	Payments to Sellers. All payments by Purchaser to Sellers, or any
of them, under or in connection with this Agreement shall be made to the bank accounts
that have

16

 

     been notified by Sellers’ Representative to Purchaser at least five Business
Days prior to the due date for the respective payment.

	 	4.4.3	 	Payments to Purchaser. All payments by Sellers, or any of them, to
Purchaser under or in connection with this Agreement shall be made to the bank account
as notified by Purchaser to Sellers at least five Business Days prior to the due date
for the respective payment.
	 
	 	4.4.4	 	Default Interest. Any payments not made when due under this
Agreement shall bear interest from and including the respective due date to, but
excluding, the date of actual payment at the Agreed Rate plus 3% per annum.
	 
	 	4.4.5	 	Interest Method. Any interest under this Agreement shall accrue
from day to day and shall be calculated in accordance with the method 30/360, i.e., on
the basis of a month of 30 days and a year of 360 days.
	 
	 	4.4.6	 	No Right to Set-Off. Any right of Purchaser to set-off and/or to
withhold any payments due under this Agreement shall be excluded unless Purchaser’s
respective counter claim is undisputed or has been confirmed by final decision of a
court or arbitration tribunal.

5.

 FINAL ACCOUNTS

5.1 Preparation of Effective Date Financial Statements.

	 	5.1.1	 	Preparation. Within 45 days after the Closing Date, Sellers’
Representative shall prepare and deliver to Purchaser consolidated financial
statements of the Companies and the Subsidiaries as of the Effective Date (the
“Effective Date Financial Statements”) consisting of

	 	(a)	 	a balance sheet (Bilanz); and
	 
	 	(b)	 	a statement (the “Purchase Price Determination Statement”)
setting forth, in each case as of the Effective Date, and as determined in
accordance with the Effective Date Financial Statements and the definitions
for these items in this Agreement:

	 	(i)	 	the Cash;

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	 	(ii)	 	the Financial Debt;
	 
	 	(iii)	 	the Working Capital Adjustment; and
	 
	 	(iv)	 	the Purchase Price;

together with an audit certificate by KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (the “Accounting Firm”).

	 	5.1.2	 	Method. The Effective Date Financial Statements shall be prepared
in accordance with the 2007 Accounting Guidelines, applied on a consistent basis with
the 2006 Financial Statements and the 2005 and 2004 Financial Statements except such
changes indicated in the accounting guidelines and circulars of the Merck Group for
the years 2004 through 2007 (the “Exceptions”). A copy of such accounting guidelines
and circulars has been provided to Purchaser for its review prior to the Signing Date
and has been deposited with the acting notary for information purposes only.
	 
	 	5.1.3	 	Cooperation. Purchaser shall, and shall cause the Group Companies
to, fully cooperate with Sellers’ Representative and the Accounting Firm in the
preparation or review, as the case may be, of the Effective Date Financial Statements,
including granting Sellers’ Representative and its employees and advisors and the
Accounting Firm reasonable access to all relevant business records and documents
during normal business hours, and permitting Sellers’ Representative and its employees
and advisors and the Accounting Firm to consult at reasonable times with the Directors
and Officers, employees and representatives of Purchaser or the relevant Group
Company.
	 
	 	5.1.4	 	Objections of Purchaser. Any objections of Purchaser with respect to
the Effective Date Financial Statements must be stated within 45 days after receipt by
Purchaser of the Effective Date Financial Statements and the Purchase Price
Determination Statement by providing Sellers with (i) a
written statement of objections, specifying in reasonable detail the grounds for
the objections, and (ii) a revised version of the Purchase Price Determination
Statement (the “Revised Statement”) that reflects such objections and are
accompanied by an audit certificate of an accounting firm of international
standing, confirming the correctness of the objections. Purchaser shall be
permitted to review the working papers of Sellers’ and Sellers’ Affiliates and
Sellers will request from the Accounting Firm the grant of its permission for
Purchaser to review the working papers of the Accounting Firm relating to the
Effective Date Financial Statements and the Purchase Price Determination Statement
in the 45-day period following their receipt. If Purchaser does not object during
such period in such manner, the Effective Date Financial Statements and the
Purchase Price Determination

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Statement shall become final and binding upon the
Parties upon the expiration of such period.

	 	5.1.5	 	Costs. The Group Companies shall bear the costs for the preparation
of the Effective Date Financial Statements to the extent such costs are incurred by
them in connection with assembling financial information and providing such
information to Sellers. Sellers shall bear the remaining costs for the establishment
of the Effective Date Financial Statements, including the costs for the Accounting
Firm. Purchaser shall bear the costs for the review by itself and its accountants of
the Effective Date Financial Statements.

5.2 Resolution of Disputes

	 	5.2.1	 	Good Faith Attempt to Settle. If Purchaser has objected to the
Purchase Price Determination Statement within the required time and in the required
manner, Sellers and Purchaser shall attempt in good faith to settle the disagreement.
If Sellers and Purchaser reach an Agreement on all or certain of the disputed items,
such agreed items shall become final and binding upon the Parties.
	 
	 	5.2.2	 	Appointment of Third Party Expert. If Sellers and Purchaser cannot
settle the disagreement on any disputed items of the Purchase Price Determination
Statement within 30 days after receipt by Sellers of the Revised Statement, Sellers or
Purchaser may request that the matter be presented to a neutral auditor from an
auditing firm of international standing to be jointly designated by Sellers and
Purchaser (the “Third Party Expert”). If Sellers and Purchaser cannot agree on the
Third Party Expert within 10 days after such a request is made to present the matter
to a neutral auditor, the Third Party Expert shall be appointed by the Institute of
Chartered Accountants in England and Wales at the request of either Sellers or
Purchaser after consideration of the proposals and comments by Sellers and Purchaser.
Sellers and Purchaser shall jointly instruct the Third Party Expert to decide the
issues in dispute in accordance with the provisions of this Section 5.
	 
	 	5.2.3	 	Scope of Decisions of Third Party Expert. Unless instructed
otherwise jointly by Sellers and Purchaser, the Third Party Expert shall limit its
decisions to the items in dispute, but shall determine the Purchase Price
Determination Statement in its entirety on the basis of its decisions and the
undisputed items of the Purchase Price Determination Statement. The Third Party Expert
shall not take any decisions that would be outside the scope of the positions taken by
Sellers and Purchaser. The Third Party Expert shall also be entitled to decide on the
construction of this Agreement to the extent necessary for its decisions. The Third
Party Expert shall act as an expert (Schiedsgutachter) and not as an arbitrator.

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	 	5.2.4	 	Procedure. Sellers and Purchaser shall immediately furnish to the
Third Party Expert the Effective Date Financial Statements, the Purchase Price
Determination Statement and the Revised Statement and shall furnish as soon as
possible all other documents and information reasonably requested by the Third Party
Expert to render his decision. The Third Party Expert shall promptly provide copies of
all documents and other information made available by Sellers or Purchaser to the
respective other Party; Sections 427 and 444 of the German Civil Procedure Act
(Zivilprozessordnung) shall apply accordingly. Before rendering its decision, the
Third Party Expert shall give Sellers and Purchaser the opportunity to present their
positions, which shall include at least one oral joint hearing of Sellers and
Purchaser; the professional advisors of Sellers and Purchaser may participate in such
meeting. The Third Party Expert shall use best efforts to deliver its written opinion,
which shall include the reasons for its decision, as soon as reasonably practical, but
in any event not later than 60 days after the Third Party Expert has accepted its
appointment. The Third Party Expert’s decisions and the Effective Date Financial
Statements and the Purchase Price Determination Statement as determined by the Third
Party Expert shall be final and binding upon the Parties.
	 
	 	5.2.5	 	Costs. The costs and expenses of the Third Party Expert shall be
borne by Sellers – on the one side – and Purchaser – on the other side – in accordance
with Sections 91 to 93 of the German Civil Procedure Act.
	 
	 	5.2.6	 	Final Accounts. The Purchase Price Determination Statement as
finally agreed by Purchaser and Sellers in accordance with Section 5.2.1, or decided by
the Third Party Expert in accordance with Section 5.2.4, shall be the “Final Purchase
Price Statement”.

6.

 REGULATORY AND OTHER AUTHORIZATIONS

6.1 Regulatory Procedures.

Sellers and Purchaser will each (i) use its best efforts to obtain (or cause the Companies to
obtain) as promptly as practicable all authorizations, consents, orders and approvals, and to
make all filings with all Governmental Authorities required or expedient to consummate the
transactions contemplated by this Agreement, (ii) cooperate fully with the other Parties in
promptly seeking to obtain all such authorizations, consents, orders or approvals and to make
all such filings and (iii) provide such further information as promptly as practicable to any
Governmental Authority as such Governmental Authority may reasonably request in connection
therewith.

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6.2 Merger Filings

Sellers and Purchaser agree that they will make any pre-closing filings necessary and
expedient in connection with any merger control clearance referred to in Section 7.1 below
promptly (but in no event later than fifteen Business Days after the Signing Date) and any
post-closing filings promptly after the Closing Date. To the extent permitted under
applicable law, any such filings shall be made jointly by Purchaser and Sellers. Purchaser
will pay all costs (including fees and other payments to obtain any authorizations, consents,
orders or approvals) of any proceeding at any Governmental Authority, except for the fees of
Sellers’ and Sellers’ Representative’s counsel and other advisers.

6.3 Best Efforts

	 	6.3.1	 	All Actions. Purchaser shall offer and take all steps and/or
measures and do all and any acts that are necessary to obtain clearance by any
competent Governmental Authority, including the restructuring or sale of Purchaser
and/or its Affiliates or businesses or any other assets (e.g., product licenses),
which shall also include the closing down of businesses or parts thereof, if
necessary. Purchaser may not request any adjustment of the Purchase Price or other
amendment to this Agreement, or withhold any amount payable by it hereunder as a
result of any step, measure and/or act as described above, and any such step, measure
and/or act shall be solely for the account of Purchaser.
	 
	 	6.3.2	 	Contest. With respect to the Closing Conditions, if the
consummation of the Closing is prohibited by any Governmental Authority or if any
administrative or judicial action or proceeding is instituted challenging any
transaction contemplated by this Agreement as violating any applicable merger control
law, Purchaser and Sellers, as applicable, shall contest such decision, action or
proceeding (including by way of litigation) and use all other reasonable efforts to
ensure that the Closing may be consummated as contemplated by this Agreement and as
timely as reasonably practicable.

6.4 Cooperation

Sellers and Purchaser each undertakes to use its best efforts to meet all deadlines given by
any competent Governmental Authority and to immediately do all acts, measures and other
action necessary or expedient in the course of any proceeding with any Governmental Authority
in connection with this Agreement or the transactions contemplated hereby, including the
following (in each case to the extent relating to this Agreement or the transactions
contemplated hereby): (i) Sellers and Purchaser will promptly notify each other of any
communication that it or any of its Affiliates receives from any Governmental Authority and
permit the other Party to review in advance any proposed communication by

21

 

such Party to any
Governmental Authority; (ii) Sellers and Purchaser will each use its best efforts to consult
with the other Party in advance of any meeting with any Governmental Authority and, to the
extent permitted by such Governmental Authority, give the other Party the opportunity to
attend such meeting; (iii) Sellers and Purchaser will coordinate and cooperate fully with
each other in exchanging such information and providing such assistance as the other Party
may reasonably request in connection with the foregoing and in seeking early termination of
any applicable waiting period; and (iv) Sellers and Purchaser will provide each other with
copies of all correspondence, filings or communications; provided, however, that materials
may be redacted as necessary (x) to comply with contractual arrangements, and (y) to address
reasonable privilege or confidentiality concerns, provided, however, that any such redacted
materials will be exchanged, in unredacted form, between Sellers’ counsel and Purchaser’s
counsel on an outside-counsel-basis.

6.5 Other Transactions

Purchaser shall not enter into any other agreement to effect any acquisition of any business
or products that can reasonably be expected to prevent or materially delay the consummation
of the transactions contemplated by this Agreement or to materially increase the time
required, to: (i) obtain the expiration or termination of the waiting period under any merger
control law or regulation applicable to the transactions contemplated by this Agreement; or
(ii) obtain all authorizations, consents, orders and approvals of Governmental Authorities
necessary for the consummation of the transactions contemplated by this Agreement.

7.

 CLOSING CONDITIONS

7.1 Closing Conditions

	 	7.1.1	 	The obligations of the Parties to perform the Closing Actions pursuant to
Section 8.3 shall be subject to satisfaction or waiver
in writing by Sellers and Purchaser of the condition (the “Joint Closing Condition”)
that Closing shall be permissible pursuant to the competition laws of the
jurisdictions set forth in Exhibit 7.1 (as a result of, e.g., the approval granted by
the competent merger control authority or the expiration of any applicable waiting
period and the absence of an order by any Governmental Authority prohibiting the
transaction contemplated by this Agreement) and that no applicable law or judicial
order preventing the consummation of the Closing Actions shall be in effect.
	 
	 	7.1.2	 	The obligations of Sellers to perform the Closing Actions pursuant to
Section 8.3 shall be further subject to satisfaction of
the conditions (or waiver in writing by 

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	 	 	 	Sellers) (the “Seller Closing Conditions”)
that:

	 	(a)	 	The representations and warranties of Purchaser contained in
this Agreement shall be accurate as of the Signing Date, and, to the extent
made as of the Closing Date, as of the Closing Date, unless a different date
is indicated in the respective representation or warranty, in which case as of
such different date, in each case other than for such failures to be accurate
(without giving effect to any limitation as to “materiality” or “Material
Adverse Effect” or to any similar limitation set forth therein) that,
individually and in the aggregate, have not had and could not reasonably be
expected to have a material adverse effect on the ability of Purchaser to
perform its obligations under this Agreement. Sellers’ Representative shall
have received certificates signed on behalf of Purchaser by its chief
executive officer and chief financial officer to such effect.
	 
	 	(b)	 	Purchaser shall have performed in all material respects all
material obligations required to be performed by it under this Agreement at or
prior to the Effective Date or Closing Date, as applicable. Sellers’
Representative shall have received certificates signed on behalf of Purchaser
by its chief executive officer and chief financial officer to such effect.

	 	7.1.3	 	The obligations of Purchaser to perform the Closing Actions pursuant to
Section 8.3 shall be further subject to satisfaction of
the conditions (or waiver in writing by Purchaser) (together with the Seller Closing
Conditions and the Joint Closing Condition, the “Closing Conditions”) that:

	 	(a)	 	The representations and warranties of Sellers contained in
this Agreement shall be accurate as of the Signing Date, and, to the extent
made as of the Closing Date, as of the Closing Date, unless a different date
is indicated in the respective representation or warranty, in which case as of
such different date, in each case other than for such failures to be accurate
(without giving effect to any limitation as to “materiality” or “material
adverse effect” or to any
similar limitation set forth therein) that, individually and in the
aggregate, have not had and could not reasonably be expected to have a
Material Adverse Effect. Purchaser shall have received certificates
signed on behalf of Sellers by a member of the management board of
Sellers’ Representative to such effect.
	 
	 	(b)	 	Since the Signing Date, there shall not have occurred a
Material Adverse Effect, provided that for purposes only of this Section 7.1.3
(b) the following events, circumstances, changes or effects shall not be
taken into

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account in determining whether a Material Adverse Effect has
occurred: (i) those that affect the economy, the industries in which the Group
Companies operate, or the securities and financial markets in general
(including legal and regulatory changes as well as changes in the general
political or economic environment), so long as the event, circumstance, change
or effect does not disproportionately affect the Group Companies; (ii) those
caused by, arising out of, or attributable to, the announcement of the
intention to sell the Business and/or the Companies, or the execution of this
Agreement or the performance of the transactions contemplated hereby; or (iii)
those caused by any action or inaction (x) of Sellers’ Representative, any
Seller or Sellers’ Affiliate, or any Group Company in accordance with this
Agreement, any Ancillary Agreement or the written request of Purchaser or (y)
of Purchaser or any Person that was an Affiliate of Purchaser at the time of
such action or inaction. Purchaser shall have received certificates signed on
behalf of Sellers by a member of the management board of Sellers’
Representative to such effect.

	 	(c)	 	Sellers and Sellers’ Affiliates shall have performed in all
material respects all material obligations required to be performed by each of
them under this Agreement at or prior to the Effective Date or Closing Date,
as applicable, and Purchaser shall have received certificates signed on behalf
of each Seller by a member of the management board of Sellers’ Representative
to such effect.

7.2 All Reasonable Efforts to Fulfill Closing Conditions

Each Party shall use all reasonable efforts to ensure that the Closing Conditions will be
satisfied as soon as possible; Section 6 above remains unaffected.

7.3 Notification of Satisfaction

Each Party shall notify the other Parties promptly after they become aware that the Closing
Conditions have been satisfied. Purchaser will give prompt notice to Sellers, and Sellers
will give prompt notice to Purchaser, in each case if the respective Party becomes aware of
representations and warranties made by it contained in this Agreement becoming untrue or
inaccurate or the failure by it to
comply with any covenant contained in this Agreement, in each case to an extent that would
result in a failure of the applicable Closing Condition.

7.4 Termination Rights

If the Closing Conditions have not been satisfied prior to the expiry of 270 days after the

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Signing Date, any Party that is not then in material breach of its obligations in respect to
the Joint Closing Condition hereunder may withdraw from this Agreement with immediate effect.
Upon the exercise of any withdrawal right, this Agreement in its entirety, including the sale
of the Shares, shall become null and void upon notification of such withdrawal, provided,
however, that Sections 17, 18, 19, 20, 21.1, 21.6 and 21.7 shall generally survive termination of this Agreement. Subject to the terms and
conditions of the Agreement, any rights to claim damages in connection with violations of
obligations under or in connection with this Agreement shall remain unaffected.

8.

 CLOSING

8.1 Closing and Effective Date

	 	8.1.1	 	Closing Date. The transaction contemplated by this Agreement shall
be consummated

	 	(a)	 	if the day that falls five Business Days after the Closing
Conditions have been satisfied falls between the eighth and the last calendar
day of a month (in each case, including such day), on the last calendar day of
such month, provided, however, that if this is not a Business Day, the next
Business Day; and
	 
	 	(b)	 	if the day that falls five Business Days after the Closing
Conditions have been satisfied falls between the first and the seventh
calendar day of a month (in each case, including such day), on such calendar
day falling five Business Days after the last Closing Conditions have been
satisfied

(the applicable day, the “Closing Date”).

	 	8.1.2	 	Effective Date. The “Effective Date” shall be, in case Section 8.1.1(a) is
applicable, the Closing Date as specified therein and, in case Section 8.1.1(b) is
applicable, the last calendar day of the last month ending prior to the Closing Date
as specified therein.
	 
	 	8.1.3	 	Other Closing Date. The parties may mutually agree upon any other
Closing Date than the date determined by application of Section 8.1.1, provided, however, that this shall not affect the determination of the Effective
Date.

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8.2 Closing Venues

	 	8.2.1	 	General Closing. The Closing shall take place at the offices of
Skadden, Arps, Slate, Meagher & Flom LLP, An der Welle 5, 60322 Frankfurt am Main,
Germany, or at such other location as mutually agreed upon by the Parties (the “Closing
Venue”).
	 
	 	8.2.2	 	Local Closings. The MGG Transfer Deed and the Genericos Transfer Deed
shall be notarized in Spain and the Netherlands, respectively, and copies of the
transfer deeds notarized in these countries shall be faxed or emailed in PDF form to
the Closing Venue on the Closing Date immediately after their execution.

8.3 Closing Actions

On the Closing Date, the Parties shall meet at the Closing Venue at 10:00 AM CET (or such
other time as mutually agreed between the Parties), and take, or cause to be taken, the
following actions (the “Closing Actions”), which in their entirety shall constitute the
“Closing”:

	 	8.3.1	 	Payments. Payment by Purchaser to Sellers of the Preliminary Purchase
Price plus interest thereon, if any, at the Agreed Rate from and including the
Effective Date to, but excluding the Closing Date;
	 
	 	8.3.2	 	Dura Transfer Deed. Execution of the Dura Transfer Deed by Purchaser
and Seller 1;
	 
	 	8.3.3	 	MGG Transfer Deed. Execution of the MGG Transfer Deed in The
Netherlands by representatives of Purchaser and Seller 1;
	 
	 	8.3.4	 	EMD Transfer Deed. Endorsement of a stock transfer certificate to
Purchaser by Seller 2;
	 
	 	8.3.5	 	EMD Shares. Endorsement and delivery of the certificate(s)
representing the EMD Shares by Seller 2 to Purchaser;
	 
	 	8.3.6	 	Merck Belgium Transfer Deed. Execution of the Merck Belgium Transfer
Deed by Purchaser and Seller 3;

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	 	8.3.7	 	Genericos Transfer Deed. Execution of the Genericos Transfer Deed in
Spain by representatives of Purchaser and Seller 3;
	 
	 	8.3.8	 	Termination of Shareholder Loans. To the extent not terminated and
repaid prior to the Closing, execution by the lenders under Shareholder Loans and the
respective debtors of an agreement on the termination of the Shareholder Loans and
repayment by Purchaser of the outstanding principal and accrued interest;
	 
	 	8.3.9	 	Repayment of Interim Loans. To the extent not terminated prior to
Closing, execution of an agreement by the relevant persons on the termination of the
Interim Loans and payment by Purchaser of any principal outstanding and interest
accrued under the Interim Loans to Sellers for the account of the respective borrowers;
	 
	 	8.3.10	 	Termination of Cash Management. To the extent not terminated prior to
Closing, execution of an agreement by the respective Sellers’ Affiliates and the Group
Companies that participate in the Cash Management on the termination of the
participation of such Group Companies in the Cash Management and payment of any amounts
owed thereunder by the respective debtors;
	 
	 	8.3.11	 	Repayment of Subsidiary Loan. To the extent not terminated prior to Closing,
execution of an agreement by the relevant persons on the termination of the Subsidiary
Loans and, to the extent not repaid prior to Closing, repayment of the Subsidiary Loans
with interest accrued thereon;
	 
	 	8.3.12	 	Resignation Letters. Delivery by Sellers of resignation letters of the
Directors and Officers of the Group Companies who are remaining Directors and Officers
or Employees of Sellers or Sellers’ Affiliates;
	 
	 	8.3.13	 	Brand License Agreement. Sellers’ Representative and Purchaser shall enter
into the Brand License Agreement substantially in the form as attached as Exhibit
16.1.1;
	 
	 	8.3.14	 	Transitional Services Agreement. Sellers’ Representative and Purchaser shall
enter into the Transitional Services Agreement (the “Transitional Services Agreement”)
which, subject to Section 16.3, will be substantially in the form attached as Exhibit
8.3.14; and
	 
	 	8.3.15	 	Certificates. Sellers shall deliver to Purchaser executed certificates
pursuant to Section 7.1.3 (a) and (b). Purchaser shall deliver to Sellers’
Representative executed certificates pursuant to Section 7.1.2(a) and (b).

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8.4 Closing Confirmation

After all Closing Actions have been taken, Sellers and Purchaser shall confirm in writing
that all Closing Actions have been taken and that the Closing has occurred. This confirmation
shall be substantially in the form attached as Exhibit 8.4.

9.

REPRESENTATIONS AND WARRANTIES OF SELLERS

Assuming (where relevant) for the purposes of this Section 9 that the Pre-Sale Reorganization has
been completed in accordance with Section 14 as of the Signing Date, each Seller represents and
warrants in the form of an independent guarantee (selbständiges Garantieversprechen - Section 311
BGB) to Purchaser that, except as set forth in the Disclosure Schedules attached hereto (the
"Disclosure Schedules”), the statements set forth in this Section 9 are accurate as of the Signing
Date and, solely with respect to Sections 9.1 through 9.3 and 9.17, as of the Closing Date, unless
a different date is indicated in the respective representation and warranty, provided, however,
that any provisions of this Agreement relating to the consequences of a breach of any of the
representations and warranties, including the provisions and limitations set forth in Sections 9
and 10 form an integral part of this guarantee (Inhalt des Schuldverhältnisses / Bestandteil der
Garantieerklärung), and this guarantee is only given subject to such provisions and limitations.

9.1 Existence and Capacity of Sellers

	 	9.1.1	 	Existence. Sellers are duly established and validly existing under
the laws of their respective jurisdiction as stated in Section 2.1.
	 
	 	9.1.2	 	Capacity. The execution of this Agreement by Sellers and the
performance of their respective obligations hereunder are within their respective
corporate powers, do not violate their constitutional documents and have been
authorized by all necessary corporate action on behalf of Sellers, as applicable. No
consent, approval, authorization or order of any Governmental Authority is required by
law for any of Sellers to enter into and perform this Agreement, except (i) as provided
by any applicable merger control law, (ii) as may be necessary as a result of any facts
or circumstances relating solely to Purchaser or any of its Affiliates, and (iii) such
consents, approvals, authorizations or actions the absence of which (x) would not
prevent or materially delay the consummation by Sellers of the transactions
contemplated by this Agreement or (y) would not have a Material Adverse Effect.
	 
	 	9.1.3	 	No Insolvency. No bankruptcy proceedings or other proceedings under

28

 

	 	 	 	applicable law providing protection against enforcement by creditors have been
opened over the assets of any Seller and no circumstances exist that would require a
Seller or its Directors and Officers or shareholders to apply for the opening of
such proceedings.
	 
	 	9.1.4	 	Enforceability. Assuming due authorization, execution and delivery by
Purchaser, this Agreement constitutes legal, valid and binding obligations of Sellers
enforceable in accordance with its terms.

9.2 The Companies and the Shares

	 	9.2.1	 	Corporate Status. The information given in Section 2.1 with respect
to the Companies is accurate. Each Company (i) has been duly established, (ii) is
validly existing under the laws of the jurisdiction under which it is organized, and
(iii) has the necessary corporate power and authority to own its assets and properties
and carry on its business as currently conducted, except where in each case of (i) to
(iii) the failure to be so organized or existing or to have the necessary corporate
power would not have a Material Adverse Effect. The acquisition by Purchaser of the
Companies will convey to Purchaser all the Legal Entities that comprise the Business.
	 
	 	9.2.2	 	The Shares. Each Seller holds unrestricted legal and beneficial title
(uneingeschränkte rechtliche und wirtschaftliche Inhaberschaft) to the Shares sold by
it and each Seller is free to sell and transfer such Shares to Purchaser. The Shares
are not subject to any Encumbrances. The Shares are validly issued, and fully paid-in
and there are no obligations to make further contributions with respect to the Shares.
The Shares represent all the outstanding Interests in the Companies.
	 
	 	9.2.3	 	No Options. There are no outstanding securities convertible or
exchangeable into an Interest in any of the Companies or any options, warrants, calls,
subscriptions or other rights, agreements or commitments obligating any of the
Companies to issue, transfer or sell any Interests in such Company.
	 
	 	9.2.4	 	No Third Party Rights. Other than pursuant to this Agreement, no
Person has any pre-emptive rights, rights of first refusal, options, or other rights,
whether enforceable as of the Signing Date, conditioned or otherwise restricted in its
exercisability, with respect to the Shares.

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9.3 The Subsidiaries

	 	9.3.1	 	Corporate Status. The information given in Section 2.2 with respect to
Interests in Legal Entities is accurate. Each Subsidiary has been duly established and
is validly existing under the laws of jurisdiction under which it is organized. Except
as disclosed in Exhibit 2.2, the Companies directly or indirectly own all Subsidiary
Shares.
	 
	 	9.3.2	 	The Subsidiary Shares. Except as set forth in Disclosure Schedule
9.3.2, the Subsidiary Shares are not subject to any Encumbrances. The Subsidiary Shares
are validly issued and fully paid-in and there are no obligations to make further
contributions with respect to the Subsidiary Shares. Except as set forth on Disclosure
Schedule 9.3.2, the Subsidiary Shares represent all the outstanding Interests in the
Subsidiaries.
	 
	 	9.3.3	 	No Options. There are no outstanding securities convertible or
exchangeable into Interests in any of the Subsidiaries or any options, warrants, calls,
subscriptions or other rights, agreements or commitments obligating any of the
Subsidiaries to issue, transfer or sell any Interests in such Subsidiary to any Person
other than a Group Company.
	 
	 	9.3.4	 	No Third Party Rights. No Person has any pre-emptive rights, rights
of first refusal, options, or other rights, whether enforceable as of the Signing Date,
conditioned or otherwise restricted in its exercisability, in respect to the Subsidiary
Shares and no Subsidiary is party to an agreement with a Person other than a Group
Company which would permit such Person to control such Subsidiary or to obligate it to
transfer all or parts of its profits to any such person or entity.
	 
	 	9.3.5	 	No Further Equity Participation. Other than the Subsidiary Shares,
none of the Group Companies holds any further Interests in any Legal Entity.

9.4 Licenses and Permits

	 	9.4.1	 	Status. Except as disclosed in Disclosure Schedule 9.4.1, the Group
Companies hold all governmental permits, licenses and other public law approvals that
are required by law to conduct the business of the Group Companies as currently
conducted, other than (i) Environmental Permits, which are exclusively covered by
Section 9.14 and (ii) such permits, licenses and approvals, the absence of which would
not result in a Material Adverse Effect (the “Permits”). To Sellers’ Knowledge, no such
Permit has been cancelled, withdrawn or revoked by a

30

 

	 	 	 	competent Governmental Authority and no Group Company has received any
notice by any such Governmental Authority that it has canceled, withdrawn or
revoked, or that it intends to cancel, withdraw or revoke any such Permit.
	 
	 	9.4.2	 	Compliance with Permits and Laws. Except as disclosed in Disclosure
Schedule 9.4.2 or where the failure to comply would not have a Material Adverse Effect,
each Group Company is in compliance with applicable laws and the Permits (as in effect,
enforced and interpreted on the Signing Date) in the jurisdictions under which such
Group Company is organized or conducts business. No Group Company has received any
written notice from a Governmental Authority of any material failure to comply with any
applicable law or the terms of any Permit except as disclosed in Disclosure Schedule
9.4.2. No Permits will be subject to suspension, material modification, revocation or
non-renewal as a result of the execution and delivery of this Agreement by Sellers, or
the performance by Sellers of the transactions contemplated hereby. No material consent
of, or registration, declaration or filing with, any Governmental Authority is required
to be obtained or made by or with respect to the Group Companies in connection with (A)
the execution of this Agreement by Sellers and the performance by Sellers of the
transactions contemplated hereby or (B) the ownership by Purchaser and its Affiliates
of the Group Companies following the Closing, other than those specifically enumerated
herein. The representations contained in this Section 9.4.2 shall not apply to any laws
or Permits relating to Real Property, Intellectual Property, rights, Litigation and
Products Liability issues, Environmental Matters or Tax matters, which shall be
exclusively governed by Sections 9.7, 9.8, 9.13, 9.14, 9.15 and 12.

9.5 Financial Statements

	 	(a)	 	The 2006 Financial Statements as well as the audited
consolidated balance sheets, profit and loss statements and statements of free
cash flow of the Companies and their subsidiaries as of 31 December 2005 and 31
December 2004 and the years then ended, as adjusted for the factors stated in
the basis for their preparation and as attached hereto as part of Exhibit
1.1(a) (the “2005 and 2004 Financial Statements”), have been prepared in
accordance with IFRS and in compliance with the applicable Accounting
Guidelines, which are based on and consistent with IFRS, and, except as set
forth in the Exceptions consistently applied throughout all periods represented
in the 2006 Financial Statements and the 2005 and 2004 Financial Statements.
The 2006 Financial Statements and the 2005 and 2004 Financial Statements fairly
present, in all material respects, the consolidated financial condition,
results of operation and cash-flows of the Group Companies as of the respective
dates thereof and the respective years then
ended, except that such financial statements do not include (i) segment
reporting, (ii) notes, (iii) a full statement of cash flows, and (iv) a

31

 

	 	 	 	presentation of comprehensive income.
	 
	 	(b)	 	The interim unaudited financial statements as of 31 March 2007
have been prepared in accordance with IFRS and in compliance with the 2007
Accounting Guidelines, which are based on and consistent with IFRS, and, except
as set forth in the Exceptions, have been consistently applied throughout all
periods represented in such unaudited interim financial statements, the 2006
Financial Statements and the 2005 and 2004 Financial Statements.
	 
	 	(c)	 	The Companies and the Subsidiaries do not have any liabilities
or obligations of any nature (whether accrued, absolute, contingent, unasserted
or otherwise) of the type required to be disclosed in financial statements
prepared in accordance with IFRS, except (i) as disclosed, reflected or
reserved on the face of the 2006 Financial Statements or the interim unaudited
financial statements as of 31 March 2007, (ii) for items set forth in
Disclosure Schedule 9.5(c) and (iii) for liabilities and obligations incurred
in the ordinary course of business consistent with past practice since the date
of the 2006 Financial Statements and not in violation of this Agreement.
	 
	 	(d)	 	The Group Companies, taken as a whole, are able to pay their
debts as they become absolute and mature, the present fair salable value of the
assets of the Group Companies, taken as a whole, exceeds the amount that is
required to pay the probable liability of their debts and other liabilities
(including contingent liabilities) as they become absolute and mature, the
assets of the Group Companies, taken as a whole, in each case at a fair
valuation, exceed their debts (including contingent liabilities) and the Group
Companies, taken as a whole, do not have unreasonably small capital to carry on
their businesses, as currently conducted.

9.6 Conduct of Business since 31 December 2006

	 	9.6.1	 	No Material Adverse Effect. There has been no Material Adverse Effect
since 31 December 2006.
	 
	 	9.6.2	 	Ordinary Course. Except for the Pre-Sale Reorganization or as
otherwise disclosed in Disclosure Schedule 9.6.2, since 31 December 2006 the Group
Companies have conducted their business in the ordinary course consistent with past
practice except for such conduct that would not have a Material Adverse Effect.

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9.7 Real Property and Other Assets

	 	9.7.1	 	Summary. Disclosure Schedule 9.7.1 contains a list of the material
real property owned (the “Owned Real Property”) (“owning” of “real property” shall
include any kind of legal or commercial ownership, such as co-ownership, condominium
ownership, and property-like rights (grundstücksgleiche Rechte)) or other rights
legally or commercially comparable therewith in any applicable jurisdiction or leased
for an annual lease payment in excess of EUR 500,000 (the “Leased Real Property” and,
together with the Owned Real Property, the “Real Property”) by the Group Companies.
	 
	 	9.7.2	 	Owned Real Property. The Group Companies have good (and, where
applicable, marketable) title to the Owned Real Property, free and clear of all
Encumbrances, other than Permitted Encumbrances and any Encumbrances listed in
Disclosure Schedule 9.7.2.
	 
	 	9.7.3	 	Leased Real Property. Each lease agreement for any Leased Real
Property is a valid agreement enforceable in accordance with its terms against the
relevant Group Company and, to Sellers’ Knowledge, against the other parties thereto.
None of the relevant Group Companies is in material default or breach, or has received
a written notice alleging that it is in material default or breach, of any lease
agreement for the Leased Real Property and, to Sellers’ Knowledge, none of the other
parties to such lease agreements is in material default or breach of any such
agreement.
	 
	 	9.7.4	 	Compliance with Laws. None of the Group Companies has received a
written notice from any Governmental Authority that any Real Property is not in
compliance with all applicable legal requirements, except for such noncompliance that
would not result in a Material Adverse Effect.
	 
	 	9.7.5	 	Granted Rights. None of the Group Companies has leased or otherwise
granted to anyone the right to use or occupy any Real Property or any portion thereof,
where such lease or grant interferes in any material way with the respective Group
Company’s business.
	 
	 	9.7.6	 	No Condemnation. None of the Group Companies has received a written
threat of condemnation or similar proceeding relating to the Real Property.
	 
	 	9.7.7	 	Assets. The assets of the Group Companies are free and clear of all
Encumbrances, other than (i) Permitted Encumbrances and (ii) any Encumbrances that, in
the aggregate, would not have a material adverse effect on any Group Company.

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9.8 Intellectual Property

	 	9.8.1	 	Summary. Disclosure Schedule 9.8.1 contains a list of all patents,
trademarks, service marks, design rights and copyrights owned by the Group Companies
that is (a) used exclusively in the Business, (b) material for the Business as
currently conducted by the Group Companies, and (c) registered or are the subject of a
pending application for registration (the “Group IP”).
	 
	 	9.8.2	 	Title. Except as disclosed in Disclosure Schedule 9.8.2, the relevant
Group Company owns all rights, title and interest in and to its Group IP as listed in
Disclosure Schedule 9.8.1, free and clear of all Encumbrances other than Permitted
Encumbrances.
	 
	 	9.8.3	 	Rights. Each Group Company owns or has a right to use all
Intellectual Property used in the Business as currently conducted by the Group
Companies, except where the failure to so own or have such right would not result in a
Material Adverse Effect.
	 
	 	9.8.4	 	Claims by Third Parties. Except as disclosed in Disclosure Schedule
9.8.4, or as would not, if adversely decided, result in a Material Adverse Effect,
unless resolved, (i) no Group IP is subject to any pending or, to Sellers’ Knowledge,
threatened litigation or other proceeding for infringement, opposition, cancellation or
revocation, and (ii) none of the Group Companies has received a written claim since
January 1, 2004 that any Group IP is invalid or unenforceable.
	 
	 	9.8.5	 	Maintenance. All registration and application fees necessary to
maintain registrations and applications for the Group IP have been paid and all
necessary renewal filings have been made, except for (i) such fees and filings the
failure of which to pay or make would not result in a Material Adverse Effect, and (ii)
fees and filings in relation to Group IP that the Group Companies have decided to
abandon, cancel or allow to lapse.
	 
	 	9.8.6	 	Infringement of Third Party IP. Except as disclosed in Disclosure
Schedule 9.8.6 or as permitted by applicable law, to Sellers’ Knowledge, the conduct of
the Business as currently conducted does not infringe any Intellectual Property owned
by a third party.
	 
	 	9.8.7	 	IP used Primarily by Group Companies. To Sellers’ Knowledge, as of the
Signing Date, there is no Intellectual Property owned by Sellers or any Sellers’
Affiliate that is used primarily by the Group Companies, except Intellectual Property
(i) that is provided to the Group Companies pursuant to any supply or distribution

34

 

	 	 	 	agreement, (ii) that will be provided to the Group Companies pursuant to the Brand
License Agreement or the Transitional Services Agreement or (iii) that is used by
Sellers or Sellers’ Affiliates to provide any excluded service set forth in Exhibit
16.3.

9.9 Material Agreements

	 	9.9.1	 	Summary Schedule. Disclosure Schedule 9.9 contains a list of the
following agreements of the Group Companies under which, as of the Signing Date, any
primary contractual obligation (primäre Hauptleistungspflicht) or any contingent or
other obligation (including indemnity obligations) has not yet been fulfilled (the
“Material Agreements”):

	 	(a)	 	Credit Agreements of any Group Company, as obligor, with any
Person other than relating to any intercompany loan agreements with any Group
Company, Seller or Sellers’ Affiliate, including any bonds, notes or other
instruments evidencing financial indebtedness of any Group Company, in each
case with an outstanding amount (including interest) on the Signing Date in
excess of EUR 5,000,000;
	 
	 	(b)	 	Guarantees, suretyships, letters of comfort, performance or
warranty bonds and similar instruments issued by any Group Company for any debt
of any Person other than a Group Company in an amount of EUR 5,000,000 or more
per instrument;
	 
	 	(c)	 	Agreements regarding swaps, options, forward sales or
purchases, futures and other financial derivatives and combinations thereof
involving a potential obligation of a Group Company or notional amount at the
Signing Date in excess of EUR 3,000,000 per agreement;
	 
	 	(d)	 	Agreements relating to capital expenditures entered into since
31 December, 2005, involving an amount in excess of EUR 5,000,000 per
agreement;
	 
	 	(e)	 	Agreements for the acquisition or sale of (i) assets, other
than inventory or in the ordinary course of business, and (ii) any Interests
in Legal Entities or any business enterprises (Betrieb) or parts thereof
(Betriebsteil),
providing in either case for a consideration of more than EUR 5,000,000 per
agreement and entered into since 1 January 2001;
	 
	 	(f)	 	Agreements for joint ventures, partnerships, strategic
alliances, joint

35

 

	 	 	 	development of products and other forms of cooperation that
involved a sharing of profits or losses per agreement during the year 2006 in
payments per agreement in excess of EUR 2,500,000, or that involved a sharing
of revenues (or profits or losses) per agreement during the year 2006 in excess
of EUR 10,000,000, as well as any enterprise agreements within the scope of
Sections 291 and 292 AktG in relation to one or more Group Companies;
	 
	 	(g)	 	Supply and third-party manufacturing agreements and binding
purchase commitments with suppliers of any goods or services, including API
supply agreements, but excluding individual purchase orders, that resulted
during the year 2006 in a consideration to be paid by a Group Company of more
than EUR 10,000,000 per agreement;
	 
	 	(h)	 	Distribution, agency, customer (including sales) and franchise
contracts, other than single purchase orders or intergroup contracts, that
resulted during the year 2006 in annual revenues of more than EUR 10,000,000
per agreement;
	 
	 	(i)	 	Agreements, excluding customary restrictions in cooperation,
supplier or resale agreements entered into in the ordinary course of business,
imposing any material restriction on the Group Companies taken as a whole to
compete with any Person other than a Group Company; and
	 
	 	(j)	 	Any other agreement that resulted during 2006 in an aggregate
payment or payment obligation by a Group Company of more than EUR 10,000,000.

	 	9.9.2	 	Status. Except as disclosed in Disclosure Schedule 9.9.2, to Sellers’
Knowledge, (i) the Material Agreements are in full force and effect, and (ii) no party
to a Material Agreement has given a written notice of termination.
	 
	 	9.9.3	 	No Breach. None of the Group Companies is in breach or default of any
Material Agreement to which it is a party and, to Sellers’ Knowledge, no other party to
any Material Agreement is in breach thereof, in each case other than breaches that
would not have a Material Adverse Effect.
	 
	 	9.9.4	 	No Conflict; Consents. Except as disclosed in Disclosure Schedule
9.9.4, the
execution of this Agreement by Sellers does not, and the performance by Sellers of
the transactions contemplated hereby will not, require any consent under, or give
another party any right of termination of, any Material Agreement, except for those
breaches, unobtained consents and terminations that would be immaterial.

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9.10 Insurance

	 	9.10.1	 	Summary. Except for self-insurance maintained with Affiliates, Disclosure
Schedule 9.10.1 contains a list of all material insurance policies of the Group
Companies relating to the assets, businesses or operations of the Group Companies (the
“Insurance Policies”). Disclosure Schedule 9.10.1(A) contains a detailed description
of the self-insurance maintained with Affiliates. After the Closing Date the Group
Companies will not own any interests in or have any liabilities under such
self-insurance.
	 
	 	9.10.2	 	Status. To Sellers’ Knowledge, the Insurance Policies are in full force and
effect and no material claims by any Group Company are pending under any of such
policies as to which coverage has been questioned, denied or disputed by the insurer.

9.11 Personnel

	 	9.11.1	 	Key Employees. Disclosure Schedule 9.11.1 contains a list of the Group
Companies’ (i) Executive Management Committee Members, (ii) Directors and Officers and
(iii) employees, in both cases of (ii) and (iii), with a fixed annual gross base salary
in 2006 (excluding, for the avoidance of doubt, performance-related payments, bonuses
and any benefits) in excess of EUR 200,000 (collectively the “Key Employees”).
	 
	 	9.11.2	 	Termination. Except as set forth in Disclosure Schedule 9.11.2, none of the
Key Employees has given or been given written notice of termination of his employment.
	 
	 	9.11.3	 	Transaction Bonuses. Except as set forth in Disclosure Schedule 9.11.3, no
employee of a Group Company has a contractual right to any (i) extra income or bonus
payment from any Group Company as a result of the execution of, or consummation of the
transactions contemplated by, this Agreement or (ii) enhanced redundancy or severance
payment from any Group Company arising solely from the execution of, or consummation of
the transactions contemplated by, this Agreement.
	 
	 	9.11.4	 	Labor Disputes. Except as disclosed in Disclosure Schedule 9.11.4 and except
for any matter that would not reasonably be expected to have a Material Adverse Effect,
the Group Companies are not and have not been during the last three years, subject to
any strike or lockout of their employees. Each Group Company has, in relation to each
of its current and former employees, complied in all material

37

 

	 	 	 	respects with all
material obligations owed to and in respect of those employees under all applicable
laws, regulations, Collective Agreements (as defined below), terms and conditions of
employment, and other agreements relevant to the conditions of service of its
employees.
	 
	 	9.11.5	 	Collective Agreements. Disclosure Schedule 9.11.5 contains a list of all
material written collective bargaining agreements with trade unions by which a Group
Company is bound (the “Collective Agreements”).

9.12 Employee Benefits

	 	9.12.1	 	Summary. Each Plan has been maintained, operated and administered in
compliance in all respects with its terms, all other applicable laws (including, for
U.S. Plans, the applicable provisions of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and the United States Internal Revenue Code of 1986, as
amended (the “U.S. Tax Code”)), and all applicable Collective Agreements, and has been
maintained, where required, in good standing with applicable regulatory authorities, in
each case except where the failure to be so maintained, operated or administered would
not reasonably be expected, individually or in the aggregate, to result in a material
liability to Purchaser or its Affiliates.
	 
	 	9.12.2	 	Disclosure Schedule 9.12.2 contains a list of all written collective plans to which a
Group Company is bound with respect to pensions or any other retirement, death or
disability benefits in respect of any of their employees or former employees (or any
dependant thereof), other than (i) statutory pension schemes, health and unemployment
insurance and other statutory employee benefit schemes, (ii) vacation or sick pay,
(iii) any insurance policies for the benefit of employees (including workers’
compensation or accident insurance), (iv) any funded benefit schemes (including defined
contribution schemes and payments to life insurance companies) financed by way of
salary deductions, or (v) collective plans currently involving annual costs to the
employer of not more than EUR 1,000,000 per benefit scheme (the “Pension Plans”).
	 
	 	9.12.3	 	No employees of the Group Companies participate in or otherwise receive benefits from
any plan, program, policy or arrangement, whether formal or informal, oral or written,
that is sponsored or maintained by any group or entity
other than one or more of the Group Companies.
	 
	 	9.12.4	 	Other than the Merck Pension Scheme established by a trust deed (the “UK Pension
Scheme”), none of the Group Companies is or has been at any time on or after April 27,
2004 but before Closing, associated or connected (as defined in

38

 

	 	 	 	section 38(10) of the
UK Pensions Act 2004) with any person who is or was the employer in relation to an
occupational pension scheme as defined in the UK Finance Act 2004, whether or not
registered (an “Occupational Pension Scheme”) (which is not a money purchase scheme or
a prescribed scheme under section 38(1) and section 43(1) of the UK Pensions Act 2004
and no Group Company has any liability (actual, contingent, present or future) under or
in connection with an Occupational Pension Scheme.
	 
	 	9.12.5	 	None of the current or former employees of any Group Company since 30 August 1993
transferred to Sellers or a Sellers’ Affiliate or any Group Company as a result of a
“relevant transfer” (as defined in the UK Transfer of Undertakings (Protection of
Employment) Regulations 1981 or 2006) with a right to benefits under or in relation to
an occupational pension scheme outside regulation 7(2) of the UK Transfer of
Undertakings (Protection of Employment) Regulations 1981 or regulation 10(2) of the UK
Transfer of Undertakings (Protection of Employment) Regulations 2006.
	 
	 	9.12.6	 	There do not exist, nor do any circumstances exist that would reasonably be expected
to result in, any liabilities under Title IV of ERISA or similar provision of other
U.S. or non-U.S. law for, or with respect to, any Pension Plan, benefit plan, agreement
or benefit arrangement that is sponsored, maintained or contributed to, or required to
be sponsored, maintained or contributed to, by any of the Sellers or Sellers’
Affiliates, for the benefit of its employees, other than a Plan, that is or would
reasonably be expected, individually or in the aggregate, to result in any material
liability, at or after the Closing, to Purchaser or its Affiliates, including any Group
Company.
	 
	 	9.12.7	 	Contributions. All contributions and other payments due and payable from the
participating employers required under the terms of the Pension Plans have been paid,
accrued or otherwise reserved in accordance with past practice and the requirements of
applicable law.
	 
	 	9.12.8	 	Definitions. “Plan” means any compensatory, retirement, pension, health,
disability, welfare, incentive bonus, share incentive, share option, profit sharing,
perquisite or fringe benefit plan, program, policy or arrangement, whether formal or
informal, oral or written, that is sponsored, maintained or contributed to, or required
to be sponsored, maintained or contributed to, by any
of the Group Companies or with respect to which any Group Company has any actual or
contingent liability.

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9.13 Litigation and Product Liability

	 	9.13.1	 	Litigation. Except as listed in Disclosure Schedule 9.13.1, there is no
pending litigation either before a court or an arbitration tribunal (gerichtliche
Rechtsstreitigkeiten und Schiedsverfahren), involving a claim of more than EUR
1,000,000 or, to Sellers’ Knowledge, potentially involving non-monetary relief or
penalties that would have a material negative impact on a Group Company, against any
Group Company and no such litigation has been threatened in writing.
	 
	 	9.13.2	 	Product Recalls. Except as listed in Disclosure Schedule 9.13.2 since 31
December 2006 none of the Group Companies has or initiated a product recall for reasons
of a lack of quality or fitness for use or for any other reason of any products
manufactured by such Group Company that reflected annual sales in 2006 in excess of EUR
1,000,000 whereby a return of products in the ordinary course of business does not
constitute a product recall for that purpose.
	 
	 	9.13.3	 	Limited Applicability. The representations contained in this Section 9.13
shall not apply to any litigation or product liability claims relating to Intellectual
Property, Environmental Matters or Tax matters, which shall be exclusively governed by
Sections 9.8, 9.14, 9.15 and 12.

9.14 Environmental Matters

	 	9.14.1	 	Definitions. For purposes of this Section 9.14,

	 	(a)	 	“Environmental Law” shall mean any law, regulation, rule,
order, decree, judgment, legally binding agreement or Permit relating to or
imposing liability, for pollution, the protection of the environment, natural
resources, or the use, handling, generation, manufacturing, distribution,
collection, transportation, storage, disposal, investigation, cleanup or
Release of, or exposure to, Hazardous Materials, in each case as in effect in
the relevant jurisdiction on the Signing Date and as enforced and interpreted
by the competent Governmental Authorities on such date;
	 
	 	(b)	 	“Environmental Permit” means any governmental permit, license,
or other public law approvals that is
required by the Group Companies for their operations under any applicable
Environmental Law;
	 
	 	(c)	 	“Environmental Reports” shall mean the specific items
identified as “key findings” in the executive summaries of the Phase I reports
listed on

40

 

	 	 	 	Disclosure Schedule 9.14.1(c) and disclosed to Purchaser prior to the
Signing Date;
	 
	 	(d)	 	“Hazardous Materials” means any chemicals, materials or
substances defined as or included in the definition of “hazardous substances”,
“hazardous wastes”, “hazardous materials”, “hazardous constituents”,
“restricted hazardous materials”, “extremely hazardous substances”, “toxic
substances”, “dangerous substances”, “contaminants”, “pollutants”, “toxic
pollutants”, or words of similar meaning and regulatory effect under any
applicable Environmental Law; and
	 
	 	(e)	 	“Release” shall mean any release, spill, emission, discharge,
leaking, pumping, injection, deposit, disposal, dispersal, leaching or
migration into or through the indoor or outdoor environment (including, without
limitation, ambient air, surface water, groundwater and surface or subsurface
strata) or at, into, onto, through or out of any property.

	 	9.14.2	 	Environmental Claims. Except (i) to the extent set forth in the
Environmental Reports, or (ii) as listed in Disclosure Schedule 9.14.2(a), or (iii) any
non-compliance that would not have a Material Adverse Effect, no Group Company has
received any written notice or order from any Governmental Authority, and no
administrative or judicial action, suit, investigation demand, directive, claim, lien,
judgment or proceeding has been asserted in writing or, to Sellers’ Knowledge is
threatened, against any Group Company that alleges a violation of, or liability under,
any Environmental Law.
	 
	 	9.14.3	 	Environmental Permits. Except to the extent set forth in the Environmental
Reports, each Group Company has obtained and maintained all material Environmental
Permits required for its Business as presently conducted in accordance with all
applicable Environmental Laws and is, in all material respects, in compliance with the
terms of such permits, and none of the Group Companies has received any written notice
from any competent Governmental Authority that such authority has canceled, revoked or
modified in any material respect or intends to cancel or revoke, or modify in any
material respect any term or condition of, any Environmental Permit.
	 
	 	9.14.4	 	Compliance. Except to the extent set forth in the Environmental Reports,
each Group Company and the Business is and has been in compliance with all applicable
Environmental Laws, except any non-compliance that would not have a Material Adverse
Effect.
	 
	 	9.14.5	 	Releases; Contamination. Except (i) to the extent set forth in the
Environmental

41

 

	 	 	 	Reports or (ii) as listed in Disclosure Schedule 9.14.5, there are and
have been no Releases, spills or discharges of Hazardous Materials or any pollution,
contamination, or presence of Hazardous Materials, at, on, above, underneath or through
any of the Real Properties or any other location, including third party waste disposal
sites, in each case which Release, pollution, contamination or presence is reasonably
likely to result in material costs to or obligations of any Group Company for the
investigation, monitoring, remediation or other response action relating to such event
or condition.
	 
	 	9.14.6	 	Exclusive Representations. The representations and warranties contained in
this Section 9.14 are the only representations and warranties being made with respect
to (i) compliance with, or liability under, any Environmental Law or (ii) any
environmental, health or safety matter, including natural resources, related in any way
to the Business, this Agreement or its subject matter. No other representation
contained in this Agreement will apply to any such matter and no other representation
and warranty, express or implied, is made with respect thereto.

9.15 Taxes

	 	9.15.1	 	Filing of Tax Returns. All material Tax returns required to be filed with
any Taxing Authority relating to a Tax assessment period ending on or before the
Signing Date by or on behalf of a Group Company, have been filed when due.
	 
	 	9.15.2	 	Tax Payments. All Taxes assessed and payable by a Group Company, which have
become due for payment up to and including the Signing Date have been paid or will be
paid by the Closing Date unless contested in good faith.
	 
	 	9.15.3	 	Tax Records. To Sellers’ Knowledge, with respect to a Tax assessment period
ending on or before the Signing Date, all Group Companies have maintained sufficient
and accurate records, especially information required to support Tax returns,
information that has been or may be filed, lodged or submitted to any Taxing Authority
or is required to be kept under any applicable Tax law, including documentation legally
required for transfer pricing purposes as of the Signing Date.
	 
	 	9.15.4	 	Tax Audits. To Sellers’ Knowledge, no Group Company is involved in any Tax
audit or investigation (other than regular Tax audits in the normal course of business)
relating to any Tax period ending on or before the Signing Date.
	 
	 	9.15.5	 	Tax Appeals. Except as listed in Disclosure Schedule 9.15.5, to Sellers’
Knowledge, no Group Company is involved in any appeal in regard to Tax

42

 

	 	 	 	matters
currently pending, including proceedings in Tax courts to which a Group Company is a
party and that involve an amount in dispute in excess of EUR 100,000.
	 
	 	9.15.6	 	Tax Losses. No warranty is given or implied in regard of the existence,
validity or usability of any Tax losses and Tax loss carryforwards of any Group
Company.

9.16 Finders’ Fees

As of the Signing and the Closing Date, no Group Company has any obligation or liability to
pay any fees or commissions to any broker, finder or agent or other third party advisor with
respect to this Agreement and the consummation of the transactions contemplated hereby.

9.17 Pre-Sale Reorganization

After giving effect to the Pre-Sale Reorganization to the extent completed prior to Closing,
the assets and rights of the Group Companies will be sufficient for the conduct of the
Business immediately following the Closing Date in substantially the same manner as conducted
by Sellers, Sellers’ Affiliates and the Group Companies immediately prior to the Closing
Date, assuming for purposes hereof the continued provision by Sellers and Sellers’ Affiliates
of the services to be provided in the Transitional Services Agreement and the “excluded
services” set forth in Exhibit 16.3 as well as the provision of rights to the Group Companies
pursuant to the Brand License Agreement and except for any agreements that are the subject of
Section 10.13.3.

9.18 Additional Information

As promptly as practicable after the Signing Date (but in no event more than 20 Business Days
after the Signing Date), Sellers and Sellers’ Affiliates shall provide to Purchaser the
information described on Exhibit 9.18, which information shall be complete and accurate as of
the respective date such information shall have been provided.

Subject to the terms and conditions of this Agreement, Purchaser agrees to purchase and
acquire the Shares (including each Company’s business, the Subsidiaries and their respective
businesses) in the condition they are in on the Closing Date, and to perform the transactions
contemplated by this Agreement based upon its own inspection, examination and determination with
respect thereto without reliance upon any express or implied representations, warranties or
guarantees of any nature made by, or on behalf of or imputed to, Sellers except for the
representations explicitly given by Sellers in this Agreement. Without limiting the generality of
the foregoing, Purchaser acknowledges that, except as expressly set forth in this Agreement,

43

 

 Sellers give no representation, warranty or guarantee with respect to any projections, estimates
or budgets delivered or made available to Purchaser of future results, cash flows, operations or
the conditions of the Business or any other information or documents made available to Purchaser
or its accountants or other advisors with respect to the Business or the Group Companies.

To the extent that the representations under this Section 9 relate to the condition
(Beschaffenheit, within the meaning of Section 444 BGB) of any Group Company, they shall not be
construed as a warranty of the condition (Beschaffenheitsgarantie) within the meaning of Section
444 BGB. These representations are made in view of the agreement of the Parties as to the
allocation of actual or potential risks of the Group Companies, and shall be subject to the
modalities and limitations, including the limitations on liability, including of the amount, set
forth in Section 10 (such modalities and limitations forming an integral part of the
representations themselves and the allocation of risks agreed between the Parties). Furthermore,
Purchaser acknowledges that these representations are given by Sellers based upon the Parties’
joint understanding of the non-applicability of Section 444 BGB, and Purchaser agrees not to
invoke any rights thereunder should Section 444 BGB turn out to be applicable nonetheless. To the
extent any amounts are awarded to Purchaser due to the applicability of Section 444 BGB, they
shall be treated as an increase of the Purchase Price, unconditionally payable by Purchaser to
Sellers in cash.

10.

REMEDIES

10.1 Breach

	 	10.1.1	 	Damages. Subject to the terms, conditions, exclusions and limitations
provided in this Section 10, in the event that any of the representations made by a
Seller in this Agreement is incorrect (a “Breach of Representations”) or Sellers’
breach any covenant or agreement contained in this Agreement (“Breach of Covenant”),
Sellers and Sellers’ Guarantor shall put Purchaser or, at the option of Purchaser, any
of the Group Companies into the position that Purchaser or the Group Company, as
applicable, would have been had the Breach of Representations or Breach of Covenant not
occurred (Naturalrestitution). If and to the extent Sellers (or any other person on
behalf of Sellers) have not cured the Breach of Representations or
Breach of Covenant within a reasonable time period, but no later than seven days
after receipt of a Claim Notice from Purchaser, or such restitution is impossible or
Sellers finally refuse (verweigert ernsthaft und endgültig) to make restitution in
kind, Purchaser may claim solely for: monetary damages (Schadenersatz in Geld),
provided, however, that in the case of a Breach of Representations the damages to be
compensated shall only be actual damages according to Section 249 BGB, excluding,
however, (i) consequential or indirect damages (Folgeschäden, mittelbare Schäden),
(ii) lost opportunities (entgangene

44

 

	 	 	 	Geschäftschancen), (iii) internal administration
and overhead costs and (iv) any losses based solely on the argument that the
purchase price for the Shares was calculated on the basis of incorrect assumptions
or information (collectively, “Loss”). The principle of compensation and accounting
for benefits and advantages according to Sections 249 et seq. German Civil Code
(Vorteilsausgleichung) shall apply.
	 
	 	10.1.2	 	General Exclusions. Sellers and Sellers’ Guarantor shall not be liable for
Losses or any claim under this Section 10, or any other claim under or in connection
with this Agreement against any Seller or Sellers’ Guarantor (a “Claim”) for any Breach
of Representations if and to the extent:

	 	(a)	 	such Losses have reduced the Final Total Purchase Price by
reducing the amount of Cash or Working Capital or increasing the amount of
Financial Debt;
	 
	 	(b)	 	the amount of the Claim has been covered by actual recoveries
in directly related claims against third parties (other than a Group Company)
or by actual recoveries from existing insurance coverage; it being understood
and agreed that Purchaser will use its best efforts to pursue any available
recoveries in any such claims against third parties and from existing insurance
coverage;
	 
	 	(c)	 	there exist any Tax Benefit; or
	 
	 	(d)	 	the event giving rise to the Claim has resulted from any action
taken by a Seller, any Sellers’ Affiliate or a Group Company after the Signing
Date at the written request or direction of, or with written consent of,
Purchaser.

10.2 Knowledge

	 	10.2.1	 	Sellers and Sellers’ Guarantor shall not be liable for any Breach of Representations,
and Purchaser shall not be entitled to bring any claim under this Section 10, or any
other claim under or in connection with this Agreement against
any Seller or Sellers’ Guarantor, (i) if and to the extent Purchaser, or any of
their respective Directors and Officers or, if acting for Purchaser in connection
with this Agreement or the transactions contemplated hereby, any of Purchaser’s
employees, had actual knowledge on the Signing Date of facts, circumstances or
events which a reasonable third party knowing this Agreement would conclude as of
the Signing Date formed the basis of a Claim (anspruchsbegründende Umstände gemäß §
199 Abs. 1 Nr. 2 BGB) on the Signing Date (“Purchasers

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	 	 	 	Knowledge”), or (ii) if and
to the extent the matter resulting in the claim was disclosed expressly on the
relevant Section or subsection of the Disclosure Schedule or Exhibits to which the
claim relates; provided, however, that any matter set forth in one Section or
subsection of the Disclosure Schedule or Exhibits will be deemed to apply to each
other Section or subsection of the Disclosure Schedule or Exhibits to which its
relevance to such other Section or subsections of the Disclosure Schedule or
Exhibits is readily apparent on its face.
	 
	 	10.2.2	 	Deemed Knowledge. Without limiting the generality of Section 10.2.1,
Purchaser shall be deemed to have knowledge of all facts that are expressly included in
the Financial Vendor Due Diligence Report prepared by KPMG Deutsche
Treuhandgesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Marie-Curie-Str. 30, 60439 Frankfurt, dated 3 April 2007 and made available to the
Purchaser on 7 May, 2007 and all such facts shall also constitute Purchasers Knowledge.

10.3 De-Minimis, Threshold and Deductible

Except for Claims resulting from a Breach of Representations by Sellers under Sections 9.1,
9.2, 9.3, 9.16 and 9.17, and Claims for failure to comply with Section 12, 13, 14 or 15.1
Sellers shall only be liable for Claims if and to the extent (i) the actual individual Claim
exceeds EUR 500,000 (the “De-Minimis Amount”), and (ii) the aggregate amount with respect to
all Claims (including Claims that do not exceed the De-Minimis Amount in the individual case)
exceeds EUR 50,000,000 (the “Threshold”), in which case Sellers shall only be liable for the
amount exceeding the Threshold.

10.4 Maximum Liability

The maximum aggregate liability of Sellers for all claims under or in connection with this
Agreement, including all Claims for Breaches of Representations, shall be limited to 15 per
cent. of the Final Purchase Price to the extent it has been received by Sellers, except for
Claims resulting from a Breach of Representations by Sellers pursuant to Sections 9.1, 9.2,
9.3 and 9.17 and for Claims under Section 12, 13, 14 and 15.1 for which the maximum aggregate
liability of Sellers (including all other claims under or in connection with this
Agreement) shall be limited to the Final Purchase Price to the extent it has been received by
Sellers.

10.5 Limitation Period

	 	10.5.1	 	Limitation. All Claims for Breaches of Representations shall be time-barred
(verjähren) after the lapse of 18 months from the Closing Date except for Claims

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	 	 	 	resulting from Breaches of Representations under Sections 9.1, 9.2, 9.3, 9.14 and 9.17
that shall be time-barred after the later of 5 years after the Closing Date.
	 
	 	10.5.2	 	Suspension of Limitation. Section 203 BGB shall not apply.

10.6 Willful Misconduct

None of the limitations contained in this Section 10 shall apply to the extent a Breach of
Representations is caused by willful misconduct (vorsätzlich rechtswidriges Handeln) of a
Seller.

10.7 No “Double Dip”

If one and the same set of facts (Sachverhalt) qualifies under more than one provision as a
Breach of Representations or entitles Purchaser to a claim or remedy under more than one
provision of, or in connection with, this Agreement, even if the Purchaser makes multiple
Claims arising from such facts, the Purchaser shall not be entitled to aggregate recoveries
from such Claims in excess of its aggregate Losses arising from such facts.

10.8 Exclusion of other Remedies

The Parties agree that the rights and remedies that Purchaser may have against Sellers for a
Breach of Representations or any other breach of any obligation under this Agreement shall be
exclusively governed by this Agreement. To the extent permitted by law, any further claims
and remedies (other than claims for specific performance (primäre Erfüllungspflichten), fraud
and those other claims explicitly provided for in this Agreement), irrespective of which
nature, amount or legal basis, are hereby expressly waived and excluded, including claims
under pre-contractual fault (Section 311 para. 2 and 3 BGB), breach of contract
(Pflichtverletzung aus dem Schuldverhältnis) or liability in tort (Delikt), any right to
reduce the Purchase Price (Minderung) and any right to rescind or otherwise wind-up this
Agreement (Rücktritt oder sonstige Rückabwicklung) or based on frustration of contract
(Störung der Geschäftsgrundlage).

10.9 No Third Party Rights

Unless explicitly stated in this Agreement, no provision of this Agreement constitutes a
contract for the benefit of a Third Party within the meaning of Section 328 BGB or otherwise
(kein Vertrag zugunsten Dritter oder mit Schutzwirkung zugunsten Dritter), irrespective of
whether any payment under this Agreement is made to Purchaser or any Group Company.

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10.10 Mitigation

Purchaser shall be under a general obligation in accordance with Section 254 BGB and shall
use its best efforts to mitigate the amount of any Loss of Purchaser or a Group Company, or
indemnity amount under this Agreement.

10.11 Procedure / Third-Party-Claims

	 	10.11.1	 	Claim Notice. Purchaser shall notify Sellers promptly of any Breach of
Representations if Purchaser discovers such Breach of Representations after the Closing
Date, describing the potential claim in reasonable detail and, to the extent practical,
stating the estimated amount of such claim and giving Sellers the opportunity to remedy
the Breach of Representations within the time-period set forth in Section 10.1.1 (such
notice, the “Claim Notice”); provided, however, that failure to give such notice shall
reduce the rights of Purchaser to seek indemnity or claim damages to the extent such
right for indemnity or damage was caused or materially increased by such failure.
	 
	 	10.11.2	 	Purchaser’s Cooperation. Purchaser shall give Sellers such information and
assistance, as they, Sellers’ Representative or any of their advisors reasonably
request for the purposes of investigating the matter or circumstance giving rise to
such Breach of Representations. If and to the extent a valid claim under Section 10.1
exists with respect to a Claim Notice, all reasonable costs and expenses so incurred by
Purchaser shall be borne by Sellers; if and to the extent a valid claim under Section
10.1 does not exist with respect to a Claim Notice, Purchaser shall bear all costs and
expenses, including all costs and expenses reasonably incurred by Sellers or Sellers’
Representative.
	 
	 	10.11.3	 	Third Party Claims. Purchaser shall promptly notify any Sellers’
Representative in writing of any claim, suit, action or proceeding (including, for the
avoidance of doubt, any audits or examinations by tax, environmental or other
Governmental Authorities) brought or threatened in writing by a third party in respect
of which Purchaser reasonably expects to seek indemnity or claim
damages under this Agreement (a “Third Party Claim”); provided, however, that
failure to give such notice shall not affect the right to seek indemnity or claim
damages except to the extent the Third Party Claim or other Loss was caused or
materially increased by such failure. So long as Sellers have given a binding
acknowledgement of their obligations to indemnity Purchaser with respect to the
applicable claim, suit, action or proceeding, the following provisions of this
Section 10.11.3 shall apply:

	 	(a)	 	Sellers’ Rights. At the request of any Seller or
Sellers’ Representative,

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	 	 	 	Purchaser shall (i) make available to Sellers and
Sellers’ Representative a copy of the documents substantiating the Third Party
Claim and of all time-sensitive documents relating to the Third Party Claim,
and (ii) give Sellers (through Sellers’ Representative), at their own costs,
the opportunity to defend Purchaser or the relevant Group Company against such
claim. Sellers shall notify Purchaser of their decision to defend the Third
Party Claim in writing. Sellers (also through Sellers’ Representative) shall
have the right to defend the claim by all appropriate proceedings and shall
have the sole power to direct and control such defense, subject to the
provisions of Section 10.11. In particular, Sellers (through Sellers’
Representative) may (i) participate in and direct all negotiations and
correspondence with the third party, (ii) appoint and instruct counsel,
reasonably acceptable to Purchaser, acting in the name of Purchaser or the
relevant Group Company and (iii) require that the Third Party Claim be
litigated or settled in accordance with Sellers’ Representative’s instructions.
Notwithstanding the foregoing, Sellers’ counsel shall have no conflict of
interest relative to Purchaser or Purchaser’s Affiliates with regard to the
assignment and shall not assume any representation of Seller in a judicial
dispute between the Parties during the time of its retention as Sellers’
counsel; in any of those cases, unless otherwise agreed by Purchaser, Seller
shall promptly select new counsel and shall notify Purchaser of the identity of
the new counsel upon its appointment. Sellers (through Sellers’ Representative)
(A) shall conduct such proceedings in good faith taking the interests of
Purchaser or the relevant Group Company into account, (B) discuss the defense
and the proceeding in good faith with Purchaser or the Group Company, (C)
promptly inform Purchaser of any material communication with third parties
relating to the Third Party Claim not otherwise known to Purchaser or the Group
Company, (D) furnish to Purchaser drafts of pleadings, briefs or other
documents, sufficiently in advance of their submission to allow Purchaser time
for review and comment; (E) notify Purchaser sufficiently in advance of
substantive meetings on the litigation to enable Purchaser to attend such
meetings; and (F) inform Purchaser of all terms of any proposed settlement of
the litigation. In no event shall Purchaser or the relevant Group Company be
entitled to acknowledge or settle a claim or permit any such acknowledgement or
settlement without Sellers’ Representative’s prior written consent.
Notwithstanding the foregoing, Sellers shall not, and shall
ensure that none of their Affiliates nor counsel will, settle or otherwise
compromise any Third Party Claim, or portion thereof, without the prior
written consent of Purchaser, which consent shall not be unreasonably
withheld or delayed; provided, however, that Purchaser shall not be required
to agree to the entry into any settlement that (i) requires an admission of
wrongdoing by Purchaser or Purchaser’s Affiliates (including the Group
Companies) or (ii) provides for injunctive or other non-monetary relief
affecting Purchaser or Purchaser’s Affiliates (including the Group
Companies) in any way (it being understood and agreed that

49

 

	 	 	 	Purchaser shall
act in good faith when deciding whether to grant its consent to non-monetary
relief).
	 
	 	(b)	 	Cooperation. After Sellers have notified Purchaser of
their decision to defend the Third Party Claim, Purchaser shall, and shall
cause the relevant Group Company to, (i) reasonably cooperate with Sellers and
Sellers Representative in the defense of any Third Party Claim, (ii) grant
Sellers (through Sellers’ Representative) and their advisors reasonable access
to all relevant business records and documents (during normal business hours)
and, upon their request, provide them with copies thereof, and (iii) permit
Sellers and their representatives to consult with the Directors and Officers,
employees and representatives of Purchaser or the relevant Group Company in a
reasonable fashion and to a reasonable extent. If and to the extent a valid
claim under Section 10.1 exists with respect to the Claim Notice for the Third
Party Claim, all reasonable costs and expenses so incurred by Purchaser in
defending a Third Party Claim shall be borne by Sellers; if and to the extent a
valid claim under Section 10.1 does not exist with respect to a Claim Notice
for the Third Party Claim, Purchaser and the relevant Group Company shall bear
all their own costs and expenses, it being understood that Sellers shall bear
all costs and expenses in connection with the defense (including advisor’s
fees) during any time in which they assumed the defense. In any event, each
Party shall bear its own internal administrative costs, expenses and overhead.

10.12 Reductions of Purchase Price

Any payment by Sellers under this Section 10 shall be treated as a reduction of the Purchase
Price allocated to the relevant Company (including its Subsidiaries) pursuant to Section
4.1.4.

10.13 Claims and Agreements

	 	10.13.1	 	Claims by Group Companies. The Parties are in agreement that upon the
Closing, each Group Company shall not have any claims that derive from or
would not have arisen in the absence of the capacity of Sellers or Sellers’
Affiliates as direct or indirect shareholders of the Group Companies or that
constitute claims for damages or other compensation, whether known or unknown,
against any Seller or Sellers’ Affiliates, including any claims for damages, losses
and expenses, except (i) any claims for outstanding primary performance obligation
under any agreement with such person and (ii) any claims that have arisen
(Entstehung) after the Signing Date (together, the “Company Claims”), and Purchaser
shall cause the Group Companies to act accordingly and, if necessary, waive any
claims that they may still have other than the Company

50

 

	 	 	 	Claims. In addition,
Purchaser shall hold harmless and indemnify Sellers and Sellers’ Affiliates, as the
case may be, from and against any and all damages, costs and expenses arising out of
any claims that a Group Company might raise against any Sellers or Sellers’
Affiliates other than Company Claims. Sellers and Sellers’ Affiliates are not aware
of any such claims other than the Company Claims.
	 
	 	10.13.2	 	Claims by Sellers. The Parties are in agreement that upon the Closing, any
of the Sellers or Sellers’ Affiliates shall not have any claims that derive from or
would not have arisen in the absence of the capacity of Sellers or Sellers’ Affiliates
as direct or indirect shareholders of the Group Companies or that constitute claims for
damages or other compensation, whether known or unknown, against any Group Company,
including any claims for damages, losses and expenses, except (i) any claims for
outstanding primary performance obligation under any agreement with such person and
(ii) any claims that have arisen (Entstehung) after the Signing Date (together, the
“Sellers Claims”), and Sellers shall cause Sellers’ Affiliates to act accordingly and,
if necessary, waive any claims that they may still have other than the Sellers Claims.
In addition, Sellers shall hold harmless and indemnify any Group Company, as the case
may be, from and against any and all damages, costs and expenses arising out of any
claims that a Seller or Sellers’ Affiliates might raise against any Group Company other
than Sellers Claims.
	 
	 	10.13.3	 	Existing Agreements. The Parties agree and will procure that, except for
the Ancillary Agreements, all service, lease and sub-lease agreements, and all license
agreements, and all other agreements of any kind, between any of the Group Companies
and any of Sellers or Sellers’ Affiliates shall be terminated except if the Seller and
the Purchaser agree otherwise between the Signing Date and the Closing Date. Sellers,
Sellers’ Affiliates and Purchaser shall cooperate to, as soon as reasonably practicable
after the Signing Date, agree on the terms of any such agreements that shall remain in
effect after the Closing Date (and Sellers, Sellers’ Affiliates and Purchaser shall not
unreasonably withhold their consent to any such agreement).

10.14 Tax and Litigation Indemnity

Sections 10.7, 10.8, 10.9 and 10.10 shall apply, mutatis mutandis, to any indemnity claims
under Sections 12 and 13. The remaining provisions of this Section 10 shall not apply to any
indemnity claims under Sections 12 and 13, unless explicitly so provided therein.

10.15 Resulting Taxes

For the avoidance of doubt, income taxes payable as a result of any Claim under Section

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10, 12, and 13, shall not increase Sellers’ liability.

11.

PURCHASER’S GUARANTEES, COVENANTS AND OTHER AGREEMENTS

11.1 Purchaser’s Representations

Purchaser hereby represents and warrants by way of an independent guarantee (selbstständiges
Garantieversprechen) pursuant to Section 311 para. 1 BGB to Sellers that the statements set
forth in this Section 11 are accurate on the Signing Date and will be accurate as of the
Closing Date, unless a different date is indicated in the respective representation and
warranty, provided, however, that any provisions of this Agreement relating to the
consequences of a breach of this Section 11.1 form an integral part of this guarantee (Inhalt
des Schuldverhältnisses / Bestandteil der Garantieerklärung), and this guarantee is only
given subject to such provisions and limitations:

	 	11.1.1	 	Existence. Purchaser is duly incorporated and validly existing under the
laws of the Commonwealth of Pennsylvania.
	 
	 	11.1.2	 	Capacity. The execution of this Agreement by Purchaser and the performance of
its obligations hereunder are within its corporate powers, do not violate its
constitutional documents and have been authorized by all necessary corporate action on
behalf of Purchaser. No consent, approval, authorization or order of any Governmental
Authority is required by law for Purchaser to enter into and perform this Agreement,
except (i) as provided by any applicable merger control law, (ii) as may be necessary
as a result of any facts or circumstances relating solely to Sellers or any Sellers’
Affiliate, and (iii) such consents, approvals, authorizations or actions the absence of
which would not prevent or materially
delay the consummation by Purchaser of the transactions contemplated by this
Agreement.
	 
	 	11.1.3	 	No Insolvency. No bankruptcy proceedings or other proceedings under
applicable law providing protection against enforcement by creditors have been opened
over the assets of Purchaser and no circumstances exist that would require Purchaser or
its Directors and Officers or shareholders to apply for the opening of such
proceedings.
	 
	 	11.1.4	 	Enforceability. This Agreement constitutes (assuming due authorization,

52

 

	 	 	 	execution and delivery by Sellers) legal, valid and binding obligations of Purchaser
enforceable in accordance with its terms.
	 
	 	11.1.5	 	Financing of the Transactions. Purchaser has delivered to Sellers complete
and accurate copies of an executed commitment letter (the “Commitment Letter”)
addressed to Purchaser to provide Purchaser with (i) senior secured first lien credit
facilities (the “Senior Credit Facilities” and, together with the Bridge Financing
(defined below), the “Credit Facilities”), (ii) an unsecured senior interim loan (the
“Bridge Financing”, and together with debt securities (the “Debt Securities”) issued in
lieu of or to refinance such Bridge Financing or any portion thereof, the “Note
Financing”). The Note Financing, the Senior Credit Facilities and any alternative
financing is collectively referred to as the “Financing”. As of the Signing Date,
Purchaser has no reason to believe that it will be unable to satisfy on a timely basis
any term or condition of closing to be satisfied by it contained in the Commitment
Letter assuming accuracy of the representations and warranties by Sellers and
compliance by Sellers with their covenants herein. Purchaser has fully paid any and
all commitment fees or other fees required by the Commitment Letter to be paid on or
before the Signing Date. Subject to its terms and conditions, the Financing, when
funded in accordance with the Commitment Letter, and taken together with cash on hand
of Purchaser will provide Purchaser with acquisition financing at the Closing
sufficient to perform the Closing Action under Section 8.3.1.

11.2 Remedies

Subject to the terms, conditions, exclusions and limitations provided in this Agreement, in
the event of any breach or non-fulfillment of any guarantee set forth in Section 11.1 or
Purchaser’s breach any other covenant or agreement contained in this Agreement Purchaser
shall put Sellers and Sellers’ Representative into the position that Sellers and Sellers’
Representative would have been in had the breach not occurred or the guarantee had been
fulfilled (Naturalrestitution). If and to the extent Purchaser has not cured the breach or
has
not fulfilled the guarantee within a period of seven days after receipt of a request from
Sellers’ Representative to do so, Purchaser shall pay to Sellers the amount of all losses
that Sellers have incurred or suffered as a result of the breach or non-fulfillment of the
guarantee by Purchaser.

11.3 Financing

Purchaser shall use its reasonable best efforts to arrange the Financing on the terms and
conditions described in the Commitment Letter, including using reasonable best efforts to (i)
negotiate definitive agreements with respect thereto on the terms and conditions contained
therein or on other terms no more adverse to Sellers and (ii) satisfy on a timely basis all
conditions applicable to Purchaser in such definitive agreements that are within its

53

 

control.
In the event any portion of the Financing becomes unavailable on the terms and conditions
contemplated in the Commitment Letter, Purchaser shall (A) with respect to the Credit
Facilities, use its reasonable best efforts to arrange to obtain alternative financing from
alternative sources on comparable or more favorable terms to Purchaser (as determined in the
reasonable judgment of Purchaser) as promptly as practicable following the occurrence of such
event, and (B) with respect to the Note Financing, use its reasonable best efforts to arrange
to obtain alternative financing from alternative sources on comparable or more favorable
terms to Purchaser (as determined in the reasonable judgment of Purchaser) no later than the
Closing Date. In the event that (x) all or any portion of the Financing structured as Debt
Securities has not been consummated, (y) all Closing Conditions shall have been satisfied or
waived and Sellers have delivered the Required Financial Information and (z) the Bridge
Financing (or alternative bridge financing obtained in accordance with Section 11.3) is
available on the terms and conditions described in the Commitment Letter (or any replacement
commitment letter), Purchaser shall use the proceeds of the Bridge Financing (or such
alternative bridge financing) to replace the proceeds from such Debt Securities no later than
the Closing Date. Purchaser shall give Sellers prompt notice of any termination of the
Commitment Letter. Purchaser shall keep Sellers informed on a reasonably current basis in
reasonable detail of the status of its efforts to arrange the Financing. For the avoidance of
doubt, Purchaser’s receipt of the proceeds of the Financing shall not be deemed to constitute
a Closing Condition.

11.4 Maximum Liability

The maximum aggregate liability of Purchaser for all claims of Sellers pursuant to Section
11.2 shall be limited to 15 per cent. of the Purchase Price, except for claims for the
failure to perform required Closing Actions and for failure to comply with Section 6.3, for
which the maximum aggregate liability of Purchaser (including all other claims under or in
connection with this Agreement) shall be limited to the Purchase Price (provided, that if the
Closing shall occur and the Purchase Price has been paid, the maximum liability of Purchaser
shall thereafter be limited to an amount equal to 15 per cent. of the Final Purchase Price).

11.5 Limitation Period

	 	11.5.1	 	Limitation. All claims of Sellers pursuant to Section 11.2 shall be
time-barred (verjähren) after the lapse of 18 months from the Closing Date (or, if
there has not been a Closing Date, from the Signing Date).
	 
	 	11.5.2	 	Suspension of Limitation. Section 203 BGB shall not apply.

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11.6 Exclusion of other Remedies

The Parties agree that the rights and remedies that Sellers may have against Purchaser for a
Purchaser’s Breach or any other breach of any obligation under this Agreement shall be
exclusively governed by this Agreement. To the extent permitted by law, any further claims
and remedies (other than claims for specific performance (primäre Erfüllungspflichten), fraud
and those other claims explicitly provided for in this Agreement), irrespective of which
nature, amount or legal basis, are hereby expressly waived and excluded, including claims
under pre-contractual fault (Section 311 para. 2 and 3 BGB), breach of contract
(Pflichtverletzung aus dem Schuldverhältnis) or liability in tort (Delikt), any right to
reduce the Purchase Price (Minderung) and any right to rescind or otherwise wind-up this
Agreement (Rücktritt oder sonstige Rückabwicklung) or based on frustration of contract
(Störung der Geschäftsgrundlage).

11.7 Mitigation

Sellers and Sellers’ Guarantor shall be under a general obligation in accordance with Section
254 BGB and Sellers and Seller’s Guarantor shall use their best efforts to mitigate the
amount of any Loss of Sellers and Sellers’ Guarantor or indemnity amount under this
Agreement.

12.

TAX INDEMNITY

12.1 Tax Indemnity

	 	12.1.1	 	Notwithstanding any other provision to the contrary in this Agreement, after the
Closing Date, Sellers shall indemnify and hold harmless (freistellen) Purchaser, or at
Purchaser’s option, the respective Group Company (which shall in no event be directly
entitled to claim payment under this Section 12.1 from any Sellers) for:

	 	(i)	 	any Pre-Effective Date Tax Liability not
reflected in the determination of Financial Debt;
	 
	 	(ii)	 	any liability under United States Treasury
Regulation Section 1.1502-6 or any comparable provision under any
applicable Tax laws of any other jurisdiction; and
	 
	 	(iii)	 	any liability imposed on any Group Company as
a result of any

55

 

contractual arrangement existing on the Effective Date under
which such Group Company is required to indemnify any Person (other
than another Group Company) for any Tax, but only if and to the
extent the amount of any such contractually indemnified Tax exceeds a
threshold of EUR 500,000,

	 	 	 	in each case for any Pre-Effective Date Tax Period. For the avoidance of doubt,
Income Taxes payable as a result of any indemnity claim shall not be the liability
of Seller.
	 
	 	12.1.2	 	Straddle Period. For purposes of the indemnities under Section 12.1.1, any
Tax liability for a Straddle Period shall be apportioned between the Pre-Effective Date
Tax Period and the Post-Effective Date Tax Period. Such apportionments shall be made
on a per diem basis for (i) real and personal property Taxes and (ii) exemptions,
allowances or deductions that are calculated on an annual basis (such as the deduction
for depreciation). Such apportionment shall be made for all other Taxes on the basis
of a “closing of the books” as of the end of the Effective Date.
	 
	 	12.1.3	 	Time for Payment. Any indemnity claim under Section 12.1.1 shall become due
and payable at the same time the respective Tax becomes due and payable for the
relevant Group Company irrespective of whether an underlying assessment has been
appealed, but in no event earlier than ten (10) Business Days after Sellers received
notice of such claim from Purchaser together with reasonable evidence thereof. If the
relevant Group Company has applied for a suspension of enforcement (Aussetzung der
Vollziehung), such claim shall not be due if and to the extent such suspension of
enforcement has been granted or until such suspension of enforcement has finally been
rejected by the competent Taxing Authority. Upon request by Sellers, Purchaser shall
procure that a reasonable application for suspension of enforcement is made. It is
understood and agreed that, if Purchaser is required to grant any security interest
(Sicherheitsleistung) for the benefit of the relevant Taxing Authority in connection
with an application for a suspension of enforcement, then Sellers shall bear the
economic burden of such a grant of a security interest.
	 
	 	12.1.4	 	Tax Benefits.

	 	(a)	 	If the event that gives rise to an indemnity claim under
Section 10.1.1, 12.1.1, or 13.1, as the case may be, results in an actual Tax
Benefit (as defined below) to Purchaser (or the relevant Group Company) at the
time such indemnity claim is paid, Sellers’ indemnity payment shall be reduced
by the amount of such Tax Benefit. If, however, the event with respect to
which such indemnity claim is made gives rise to a Tax Benefit that
Purchaser (or the relevant Group Company) will realize (in whole or in

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	 	 	 	part) after such indemnity payment by Sellers (a “Subsequently Realized Tax
Benefit”), then such indemnity payment shall be reduced as determined in
Section 12.1.4(b). For purposes of this Agreement, a “Tax Benefit” means an
amount by which the tax liability of Purchaser (or any Group Company) is
reduced (including by deduction, reduction of income by virtue of increased
tax basis or otherwise, entitlement to refund, credit or otherwise) plus any
related interest received from the relevant Taxing Authority, using a “with
and without” methodology. Therefore, if Purchaser (or the relevant Group
Company) has other losses, deductions, credits or similar tax items
available to it, with respect to any taxable period, the amount of the Tax
Benefit shall be equal to the excess, if any, of (i) the hypothetical tax
liability of Purchaser (or the relevant Group Company) for such taxable
period, computed without regard to any losses, deductions, credits or
similar tax items relating to the event giving rise to an indemnity claim
under Section 10.1.1, 12.1.1, or 13.1, as the case may be, over (ii) the
actual tax liability of Purchaser (or the relevant Group Company) of such
taxable period, computed after taking into account any losses, deductions,
credits or similar tax items relating to the event giving rise to an
indemnity claim under Section 10.1.1, 12.1.1, or 13.1. The principles of
the “with and without” methodology shall be applied for each Tax separately.
	 
	 	(b)	 	The reduction of any indemnity payment under Section 10.1.1,
12.1.1, or 13.1, as the case may be, in order to reflect a Subsequently
Realized Tax Benefit shall be equal to the amount of the net present value of
Purchaser’s Hypothetical Tax Benefit (as defined below). The term
“Hypothetical Tax Benefit” shall mean the product of (i) the aggregate amount
of the Tax benefit resulting from the event that gives rise to the indemnity
claim and (ii) 50% of the applicable Tax rate at the time of the indemnity
payment. For purposes of calculating the net present value of the Hypothetical
Tax Benefit, (i) the discount rate shall be 5 per cent., (ii) the relevant
discount periods shall be the taxable years (using a 365-day convention) over
which Purchaser will realize the Hypothetical Tax Benefit (assuming both
sufficient taxable income in each year to fully absorb the relevant portion of
the Hypothetical Tax Benefit and no change of law), (iii) the compounding
convention shall be daily compounding and (iv), with respect to each discount
period, the relevant portion of the Hypothetical Tax Benefit shall be treated
as being realized on the last day of such discount period. In the event that
there is a disagreement between Sellers’ Guarantor and Purchaser as to whether
the Purchaser or the relevant Group Company will be entitled to a Subsequently
Realized Tax Benefit, then such disagreement shall be resolved by an opinion
rendered by an internationally recognized Tax expert mutually agreed upon by
Sellers’ Guarantor and Purchaser. The cost of such an opinion shall be borne
equally by Sellers’ Guarantor and Purchaser.

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	 	(c)	 	Notwithstanding any provision to the contrary in this
Agreement, in the case of the Pre-Sale Reorganization in Belgium, upon written
demand by Sellers’ Guarantor (it being understood that this demand shall
include sufficient documentation proving both the existence and the size of the
Belgian Tax Benefit (as defined below)) , the Purchaser shall make within ten
(10) Business Days a payment to the Sellers in an amount equal to the net
present value of the hypothetical Belgian Tax Benefit (as defined below), if
any. The term “Belgian Tax Benefit” shall mean the product of (i) Purchaser’s
aggregate amount of the Tax basis step up caused by the taxable Pre-Sale
Reorganization in Belgium and (ii) 50% of the applicable Tax rate at the time
of the taxable Pre-Sale Reorganization in Belgium. For purposes of calculating
the net present value of the Belgian Tax Benefit, (i) the discount rate shall
be 5 per cent., (ii) the relevant discount periods shall be the taxable years
(using a 365-day convention) over which Purchaser will realize the Belgian Tax
Benefit (assuming both sufficient taxable income in each year to fully absorb
the relevant portion of the Belgian Tax Benefit and no change of law), (iii)
the compounding convention shall be daily compounding and (iv), with respect to
each discount period, the relevant portion of the Belgian Tax Benefit shall be
treated as being realized on the last day of such discount period. The Sellers
and Sellers’ Guarantor on the one hand and Purchaser on the other hand shall
cooperate in good faith to implement the agreement reflected in this Section
12.1.4(c). In the event that there is a disagreement between Sellers’
Guarantor and Purchaser in respect of the Belgian Tax Benefit, then such
disagreement shall be resolved by an opinion rendered by an internationally
recognized Tax expert mutually agreed upon by Sellers’ Guarantor and Purchaser.
The cost of such an opinion shall be borne equally by Sellers’ Guarantor and
Purchaser.
	 
	 	(d)	 	Notwithstanding any provision to the contrary in this
Agreement, in the case of the Pre-Sale Reorganization in the United States, if,
at any time after the Closing, any Group Company or Purchaser obtains any Tax
refund attributable to the Pre-Sale Reorganization in the United States, then
Purchaser shall promptly pay over the amount of any such Tax refund to the
Sellers’ Guarantor. The Purchaser shall provide Seller’s Guarantor with a
written statement that sets forth in reasonable detail the calculation of such
Tax refund.
	 
	 	(e)	 	Notwithstanding any provision to the contrary in this
Agreement, in respect of all Pre-Sale Reorganizations (other than those
mentioned in Section 12.1.4(c) or (d)), the Parties agree that all Tax Benefits
attributable
to such Pre-Sale Reorganizations are de minimis and, as a result, the
Parties further agree that such Tax Benefits shall be disregarded for
purposes of this Agreement.

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	 	12.1.5	 	Adjustment to the Purchase Price. Any item being part of the calculation of
payment obligations under this Section 12.1 shall be treated as an adjustment to the
Purchase Price allocated to the relevant Company (including its Subsidiaries) pursuant
to Section 4.1.4.
	 
	 	12.1.6	 	Statute of Limitations. Any indemnity claim of Purchaser or any relevant
Group Company against Sellers under this Section 12.1 shall be time-barred (verjähren)
five (5) years from the Closing Date, except that any such indemnity claim concerning
Taxes related to the United States shall be time-barred six (6) years from the Closing
Date.
	 
	 	12.1.7	 	Others. Section 442 of the BGB and Section 377 of the German Commercial Code
(Handelsgesetzbuch) shall not apply to any indemnity under this Section 12.1.
	 
	 	12.1.8	 	Maximum Liability. The maximum aggregate liability of Sellers for all claims
under this Section 12.1 shall be limited to 15 per cent. of the Final Purchase Price to
the extent it has been received by Sellers. It is understood that any payment of
Sellers pursuant to Section 10 shall also count towards the limitation of this Section
12.1.8.
	 
	 	12.1.9	 	De-Minimis and Threshold.

	 	(a)	 	Subject to Section 12.1.9(c), Sellers shall only be liable
under Section 12.1.1. if and to the extent (i) the actual individual claim
under Section 12.1.1 exceeds EUR 250,000 (the “Tax Indemnity De Minimis
Amount”) and (ii) the aggregate amount with respect to all claims under Section
12.1.1 (including any individual claim under Section 12.1.1 the amount of which
does not exceed the Tax Indemnity De Minimis Amount) exceeds EUR 2,500,000 (the
“Tax Indemnity Threshold”), in which case Sellers shall only be liable for the
amount exceeding the Tax Indemnity Threshold.
	 
	 	(b)	 	For purposes of Section 12.1.9(a), it is understood that the
term “individual claim” shall mean an indemnity claim brought forward with
respect to a Group Company under Section 12.1.1 relating to a Tax item in
a particular Tax year. Therefore, for example, indemnity claims under
Section 12.1.1 relating to the same type of Tax item but to different Tax
years shall not be aggregated for purposes of the Tax Indemnity De Minimis
Amount calculation.
	 
	 	(c)	 	Any indemnity claim under Section 12.1.1 relating to the
Pre-Sale

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	 	 	 	Reorganization shall not count for and be subject to the limitations
of Section 12.1.9(a).

12.2 Cooperation on Tax Matters

Purchaser shall, and shall cause the Group Companies to, reasonably cooperate with Sellers
and their advisers in connection with any Tax matter that could give rise to any liability of
Sellers or Purchaser under this Agreement including, without limitation, the conduct of any
inquiry, examination, audit, investigation, correspondence, negotiation, dispute, appeal or
litigation with respect to any Tax matter. Such cooperation shall include providing or making
available all relevant books, records and documentation and the reasonable assistance of its
Directors and Officers and employees during usual business hours.

12.3 Filing of Tax Returns

After the Closing Date, Purchaser shall procure that the Group Companies prepare and file all
Tax returns, including any amendments thereto, relating to a Pre-Effective Date Period or a
Straddle Period, required to be filed by or on behalf of the Group Companies after the
Closing Date (other than for the avoidance of doubt, consolidated tax returns, if any, (i)
that include a Group Company and (ii) that, after the Closing Date, are to be filed by
Sellers or Sellers’ Affiliates), provided, however, that (i) Sellers shall be given the
opportunity to participate in the preparation of, and to review, any such Tax return and (ii)
no such Tax return shall be filed without prior written approval of Sellers which approval
shall not be unreasonably withheld or delayed. To the extent Sellers review such a Tax
return, as a result of which there is any disagreement or dispute between Sellers and
Purchaser in relation to such Tax return, Purchaser shall consult with Sellers, and Sellers
and Purchaser shall use reasonable efforts to resolve the disagreement or dispute in good
faith. Purchaser shall ensure that any such Tax return to be reviewed and approved by Sellers
under this Section 12.3 will be furnished to Sellers not later than thirty (30) Business Days
prior to the due date (including any extensions) of such Tax return.

12.4 Control of Tax Audits

	 	12.4.1	 	Within ten (10) Business Days after the receipt from a Taxing Authority of any
notice of the commencement of any Tax audit, examination or judicial or
administrative proceeding or receipt from a Taxing Authority of any proposed
adjustment, demand or notice of deficiency with respect to Taxes or tax returns of,
or in respect of, any Group Company for any taxable period (or portion thereof) that
could give rise to a claim for indemnification under Section 12.1.1 (each, a
“Covered Proceeding”) Purchaser shall notify the Sellers’ Representative in
reasonable detail and in writing of such receipt.

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	 	12.4.2	 	The Sellers’ Representative (on behalf of Sellers) shall have exclusive control over
such Covered Proceeding through representatives of its own choosing and at its expense,
except that Sellers’ Representative (on behalf of Sellers) shall

	 	(a)	 	notify Purchaser of significant developments with respect to
such proceeding and keep Purchaser reasonably informed and consult with
Purchaser with respect to any issue that reasonably could be expected to have
an adverse effect on Purchaser (or any of its Affiliates),
	 
	 	(b)	 	give to Purchaser a copy of any Tax adjustment proposed in
writing with respect to such Covered Proceeding and copies of any other
correspondence with the relevant Taxing Authority relating to such Covered
Proceeding, and
	 
	 	(c)	 	otherwise permit Purchaser to participate in such proceedings
at Purchaser’s own expense.

	 	12.4.3	 	If, and to the extent required, Purchaser shall promptly execute (or cause to be
executed by the relevant taxpayer) reasonable powers of attorney or other documents
authorizing the Sellers’ Representative to act in connection with such Covered
Proceeding.
	 
	 	12.4.4	 	The Sellers’ Representative shall not pay or compromise any Tax liability asserted in
such Covered Proceeding that

	 	(a)	 	purports to bind Purchaser or any of its Affiliates for any
Post-Effective Date Tax Period or
	 
	 	(b)	 	reasonably could be expected to have a material adverse effect
on Purchaser (or the relevant Group Company),

in each case without Purchaser’s prior written consent, which consent shall not
be unreasonably withheld or delayed.

12.5 Tax Covenants

Furthermore, Purchaser covenants to Sellers that, after the Closing Date, Purchaser will

	 	(a)	 	not cause or permit a Group Company to make or change, with
retroactive

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	 	 	 	effect, any Tax election, amend any Tax return or take any Tax
position on any Tax return that may result in a liability of Sellers under this
Agreement without the prior written consent of Sellers’ Representative, which
consent shall not be unreasonably withheld or delayed;
	 
	 	(b)	 	upon request of Sellers, procure as soon as possible from the
United States Internal Revenue Service a “Pre-Filing Agreement,” pursuant to
Revenue Procedure 2007-17, with respect to the amount of United States Federal
income tax directly resulting from the Pre-Sale Reorganization; Section 12.4
shall apply mutatis mutandis to this proceeding; and
	 
	 	(c)	 	not cause or permit a Group Company, during the time period
between Closing and (including) 30 June 2012, to engage in any transaction in
respect of the shares of Merck Genericos - Productos Farmaceuticos Lda.
Portugal that could cause a taxable event to Seller and Sellers’ Guarantor and
its general partners under Section 26(2) UmwStG a. F. (it being understood
that, upon written request by Purchaser, Sellers’ Guarantor will cooperate in
good faith with Purchaser in order to determine whether a proposed transaction
involving the shares of Merck Genericos - Productos Farmaceuticos Lda. will
result in a taxable event to Sellers’ Guarantor and its general partners
(Section 328 BGB)).

12.6 Tax Refunds

At any time after the Closing but no later than five (5) years after the Closing, Seller
shall be entitled to receive immediate payment from Purchaser of any Tax refund with respect
to any Pre-Effective Date Tax Period, provided with the exception of 12.1.4(c) and (d) that
(i) the individual Tax refund exceeds EUR 250,000 and (ii) the Tax refund has not been taken
into account in the determination of the Final Purchase Price. Purchaser shall be entitled to
retain (i) any individual Tax refund that does not exceed EUR 250,000 or (ii) any Tax refund
that has been taken into account in the determination of the Final Purchase Price. For the
avoidance of doubt, claims not exceeding EUR 250,000 shall, however, reduce claims for
indemnity in accordance with Section 12.1.4.

12.7 Tax Sharing Agreements

On the Closing Date, any Tax sharing agreement between any Group Company, on the one hand,
and any Person that is not a Group Company, on the other hand, shall be terminated effective
as of the end of the Effective Date, and any such terminated Tax sharing agreement shall have
no further effect for any future taxable period.

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12.8 Exclusion and Indemnity by Purchaser

	 	(a)	 	If, with respect to any indemnity claim under Section 12.1.1,
Purchaser (i) fails to comply with its obligations under Sections 12.2, 12.3,
12.4 or 12.5(a) and (b) and (ii) fails to cure such non-compliance within
thirty (30) Business Days after the occurrence of such non-compliance, then
Sellers shall be released from such indemnity claim, but only if and to the
extent that Purchaser’s non-compliance has resulted in a liability for Sellers
under Section 12.1.1 in excess of the liability that would have been imposed on
Sellers had Purchaser complied with its obligations under Sections 12.2, 12.3,
12.4 or 12.5(a) and (b).
	 
	 	(b)	 	If Purchaser does not comply with its obligations under Section
12.5(c), then Purchaser shall indemnify and hold harmless Sellers’ Guarantor
and its general partners (Section 328 BGB) from all German income Taxes
actually paid as a result of such noncompliance, if any. It is understood that
the transactions contemplated by this Agreement will not result in any Tax
indemnity obligation for Purchaser under this Section 12.8(b).

13.

INDEMNIFICATION FOR LITIGATION

13.1 Sellers Indemnification

Subject to and limited by the terms and conditions of this Section, from and after the
Closing Date, Sellers shall indemnify Purchaser against any and all judgments, criminal
fines, settlements, costs of complying with non-monetary judgements and settlements (for five
years from the applicable effective date thereof and to the extent reasonably necessary to
bring the Group Companies into compliance therewith) and out-of-pocket costs and expenses
(“Damages”), imposed upon or agreed to or incurred by the Group Companies, that are paid
after the Effective Date, by reason of or resulting from the litigation, or any claims made
thereunder, described on Exhibit 13.1 hereto and any similar or other follow-on civil or
criminal or other claims arising out of or relating to the same or similar or related
pre-Closing facts as those alleged in or underlying the litigation
described in Exhibit 13.1 (or related litigation that has been settled) (collectively, the
“Scheduled Litigation”).

13.2 Seller Controlled Litigation

	 	13.2.1	 	Subject to compliance with the provisions of Section 13.2, and provided that Sellers
have given Purchaser a binding acknowledgement that the applicable

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	 	 	 	matter constitutes
Scheduled Litigation, Sellers shall have the right to assume the defense of the
Scheduled Litigation. To the extent Sellers assume the defense of a Scheduled
Litigation (the “Seller Controlled Litigation”):

	 	(a)	 	Sellers shall be authorized to engage and instruct counsel
(“Seller Claim Counsel”) on behalf of the defendant Group Company and to take
all decisions and actions in regard to the Scheduled Litigation, including the
waiver of rights and the entry into settlement agreements, subject to the
limitations set forth in this Section 13.2.1.
	 
	 	(b)	 	Purchaser shall not make, and shall cause the Group Companies
not to make, any admission of liability, agreement or compromise in respect of
any Seller Controlled Litigation without prior consultation with and the prior
written consent of Sellers.
	 
	 	(c)	 	Purchaser shall take and cause its Affiliates, including the
Group Companies and all employees, advisers and agents of Purchaser, its
Affiliates and the Group Companies, to take all such steps or actions as are
reasonably necessary to avoid, resist, defend, appeal or compromise any Seller
Controlled Litigation to the extent such steps or actions do not unreasonably
interfere with the operation of the Group Companies, provided that Sellers bear
all fees, out-of-pocket costs and expenses in connection with taking such steps
or actions.
	 
	 	(d)	 	Sellers shall notify Purchaser of the identity of Seller Claim
Counsel promptly after the appointment of Seller Claim Counsel. Counsel
currently appointed by Sellers or Group Companies for existing Scheduled
Litigation shall be acceptable to continue the existing representations and to
assume the representation of Scheduled Litigation that is similar to the
existing litigation. Other Seller Claim Counsel shall have no conflict of
interest relative to Purchaser or Purchaser’s Affiliates with respect to the
assignment, and shall not assume any representation of Sellers in a judicial
dispute between the Parties during the time of its retention as Seller Claim
Counsel; in any of those cases, unless otherwise agreed by Purchaser,
Sellers shall promptly select new Seller Claim Counsel and shall notify
Purchaser of the identity of the new Seller Claim Counsel upon its
appointment.
	 
	 	(e)	 	Purchaser shall have the right to participate fully in the
defense of Seller Controlled Litigation and to employ separate counsel at its
own expense, it being understood that Seller shall control the defense. Seller
Claim Counsel shall communicate regularly with Purchaser, including, without
limitation: (i) informing Purchaser of material developments related to Seller
Controlled Litigation; (ii) promptly furnishing to Purchaser copies of all
substantive correspondence, pleadings, briefs or other documents related to

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	 	 	 	Seller Controlled Litigation; (iii) reasonably coordinating with Purchaser to
enable Purchaser to join in any material conference call on Seller Controlled
Litigation; (iv) coordinating with Purchaser to enable Purchaser to attend any
meeting that involves Seller Controlled Litigation; and (v) promptly informing
Purchaser of all non-monetary terms of any proposed settlement of Seller
Controlled Litigation.
	 
	 	(f)	 	Sellers, its Affiliates and Seller Claim Counsel may settle or
otherwise compromise any Seller Controlled Litigation, or portion thereof, on
behalf of the respective defendant, without the prior written consent of
Purchaser, to the extent the settlement or compromise is monetary. Any
non-monetary elements of a settlement or compromise require the consent of
Purchaser which shall act in good faith when deciding whether to grant its
consent.

	 	13.2.2	 	With respect to claims arising out of or relating to the same or similar pre-Closing
facts as those alleged in or underlying the Scheduled Litigation, Purchaser will give
Sellers prompt written notice of any claim, whether threatened or pending, which
Purchaser reasonably believes may give rise to Damages. The written notice to Sellers
shall include (i) any written notice of the claim that Purchaser received; (ii) an
estimated amount of the Damages that have been or may be sustained by the Group
Companies; (iii) a description of the claim in reasonable detail; and (iv) copies of
any written evidence or documents relating to the claim.
	 
	 	13.2.3	 	If Sellers do not assume the defense of a Scheduled Litigation within a period of ten
Business Days after receipt by Sellers of written notification by Purchaser of a claim
under Section 13.2.2 (or as of the Closing Date in the case of Scheduled Litigation
listed on Exhibit 13.1), Purchaser or any of its Affiliates shall (upon further written
notice to Sellers) have the right to undertake the defense, compromise or settlement of
the respective claims on behalf of and for the account and risk of Sellers.

13.3 Purchaser Controlled Litigation

	 	13.3.1	 	With respect to any litigation covered under Section 13.2 in which Sellers elect not
to control the litigation (or fail to assume the defense of the litigation under
Section 13.2.3) (the “Purchaser Controlled Litigation”), the following terms,
limitations and conditions apply to the indemnification rights of Purchaser, in
addition to those prescribed in Section 13.2:

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	 	13.3.2	 	Purchaser shall assume the defense of any Purchaser Controlled Litigation, provided
that Sellers shall bear all fees, out-of-pocket costs and expenses in connection with
such defense.

	 	(a)	 	Such defense shall be conducted through counsel selected by
Purchaser (“Purchaser Claim Counsel”). Purchaser shall notify Sellers of the
identity of Purchaser Claim Counsel promptly after the appointment of Purchaser
Claim Counsel. Notwithstanding the foregoing, Purchaser Claim Counsel shall
have no conflict of interest relative to Sellers or Sellers’ Affiliates with
respect to the representation, and shall not assume any representation of
Purchaser in a dispute between the Parties during the time of its retention as
Purchaser Claim Counsel; in any of those cases, unless otherwise agreed by
Sellers, Purchaser shall promptly select new Purchaser Claim Counsel and shall
notify Sellers of the identity of the new Purchaser Claim Counsel upon its
appointment.
	 
	 	(b)	 	Sellers shall have the right to participate fully in the
defense of Purchaser Controlled Litigation and to employ separate counsel at
its own expense, it being understood that Purchaser shall control the defense.
Purchaser Claim Counsel shall communicate regularly with Sellers, including,
without limitation: (i) informing Sellers of material developments related to
Purchaser Controlled Litigation; (ii) promptly furnishing to Sellers copies of
all substantive correspondence, pleadings, briefs or other documents related to
Purchaser Controlled Litigation; (iii) reasonably coordinating with Seller to
enable Seller to join in any material conference call on Purchaser Controlled
Litigation; (iv) coordinating with Sellers to enable Sellers to attend any
substantive meeting that involves Purchaser Controlled Litigation; and (v)
promptly informing Sellers of all non-monetary terms of any proposed settlement
of Purchaser Controlled Litigation.
	 
	 	(c)	 	Purchaser, its Affiliates and Claim Counsel, may not settle or
otherwise compromise any Purchaser Controlled Litigation, or portion thereof,
on behalf of the respective defendant, without the prior written consent of
Sellers (not to be unreasonably withheld or delayed).

13.4 Cooperation of the Parties

Each Party shall use best efforts to give the other Parties its full cooperation in defending
all claims subject to indemnification hereunder and shall enter into a joint defense
agreement for that purpose. Such cooperation shall include but not be limited to (i)
furnishing and, upon request, procuring the attendance of potential witnesses for interview,
preparation, submission of witness statements and the giving of evidence at any related

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hearing; (ii) promptly furnishing documentary evidence to the extent available to it or its
Affiliates (including the Group Companies); (iii) providing access to any other relevant
party, including but not limited to any agents of or advisers to the parties as reasonably
needed; and (iv) sharing of legal advice subject to common interest privilege.

13.5 Insurance Benefits

All payment obligations of Sellers for any indemnifiable Damages under this Section 13 shall
be net of any insurance or other prior or subsequent recoveries actually received by
Purchaser or its Affiliates (including the Group Companies after Closing) arising out of or
relating to the facts that gave rise to the right of indemnification, it being understood and
agreed that Purchaser or its Affiliates (including the Group Companies after Closing) will
use best efforts to pursue such insurance and other recoveries.

13.6 Tax Benefits

All payment obligations of Sellers for any indemnifiable Damages under this Section 13 shall
be net of Tax Benefits, if any.

13.7 Mitigation

Purchaser shall be under a general obligation in accordance with Section 254 BGB and
Purchaser shall use its commercially reasonable efforts to mitigate the amount of any Damages
under this Section 13.

13.8 Payment

Sellers shall pay to Purchaser within ten Business Days after the provision by Purchaser of
evidence that the Damage has been incurred or suffered, the amount of any claim for
indemnification hereunder, but in any event not before the respective indemnifiable Damage is
due for payment by Purchaser. Upon request of Purchaser, Sellers shall pay such amounts
directly to any third party to which such amounts are due.

13.9 Characterization of Indemnification Payments

Payments by Sellers under this Section 13 shall be treated as an adjustment to the Purchase
Price allocated to the relevant Company (including its Subsidiaries) pursuant to Section
4.1.4.

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13.10 Exclusivity of Remedies

The remedies provided in this Section 13 comprise the exclusive remedies of Purchaser with
respect to the Scheduled Litigation. Purchaser shall have no recourse to other remedies,
except to enforce payment or performance under this Section 13.

14.

PRE-SALE REORGANIZATION

14.1 Continuance of Pre-Sale Reorganization.

Exhibit 14.1(a) sets forth certain reorganization measures that Sellers have taken or are in
the process of taking or will take, as the case may be, and the status of the Pre-Sale
Reorganization as of the Signing Date. Sellers shall continue and complete, and take all
actions necessary or expedient in connection with, the Pre-Sale Reorganization prior to the
Effective Date, except for the actions contemplated to occur after the Effective Date as set
forth in Exhibit 14.1(a). To the extent, after giving effect to the Pre-Sale Reorganization,
Sellers and Sellers’ Affiliates own any assets of whatever kind and nature, real or personal,
tangible or intangible, intended to be used exclusively in the operation or conduct of the
Business, Sellers and Sellers’ Affiliates will transfer such assets to the Group Companies
without charge. Any such material assets that are used (but not used exclusively) by the
Group Companies shall be made available to the Group Companies by Sellers and Sellers’
Affiliates on the same basis as they are currently made available. The foregoing provisions
shall apply mutatis mutandis to assets or rights held by the Group Companies that are used by
Seller or Sellers’ Affiliates. The foregoing provisions do not apply to assets or rights (i)
covered by Section 16 hereof, (ii) used, held for use or intended to be used solely in the
Excluded Jurisdictions set forth in Exhibit 14.1(b) (“Excluded Jurisdictions”) until the time
of and subject to the acquisition of applicable Excluded Business, (iii) used, held for use
or intended to be used in providing the services to be provided in the Transitional Services
Agreement and the “excluded services” set forth in Exhibit 16.3, (iv) provided pursuant to
the Brand License Agreement or (v)
provided under supply or distribution agreements that are the subject of Section 10.13.3.
Except as set forth in Exhibit 14.1(a) as of and following the Effective Date the Group
Companies shall have no liabilities or obligations of any nature (whether accrued, absolute,
contingent, unasserted or otherwise) arising out of the operation or conduct of any business
of Sellers or Sellers’ Affiliates other than the Business. The activities described in this
Section 14.1, together with the actions set forth in Section 16.2, are referred to as the
“Pre-Sale Reorganization”.

14.2 Completion by Sellers of Actions not Finalized upon Closing

To the extent any aspect of the Pre-Sale Reorganization is not fully completed by the Closing
Date, Sellers shall promptly complete, and shall have the right to reasonably direct

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and control the completion of, any such outstanding measure, and Purchaser shall cause the Group
Companies to reasonably comply with any corresponding requests by Sellers. All costs and
liabilities resulting from the Pre-Sale Reorganization shall be borne by Sellers, except
Purchaser’s and the Group Companies’ own internal costs and overhead. Sellers shall, from
time to time after Closing, inform Purchaser of the then current status of the Pre-Sale
Reorganization measures outstanding at Closing.

14.3 Conversion and Transfer of EMD Crop Bioscience Inc.

Sellers shall procure that EMD Crop Bioscience Inc. shall be transferred to Sellers or
Sellers’ Affiliates prior to the Effective Date. Sellers will fully indemnify (without caps,
baskets or thresholds or other limitations) Purchaser and its Affiliates from any costs,
expenses and liabilities in connection with EMD Crop Bioscience Inc.

15.

CONDUCT OF BUSINESS AFTER SIGNING

15.1 Activities between Signing and Closing

	 	15.1.1	 	Ordinary Course. Prior to the Closing Date, Sellers shall cause the Group
Companies to operate their business in the ordinary course of business consistent with
past practice and shall use their reasonable best efforts to comply with all applicable
material laws and to preserve intact their respective current business organizations,
keep available the services of their current officers and employees, keep their
relationships with customers, suppliers, licensors, licensees, consultants,
distributors and others having business dealings with them, keep their research and
development relationships and arrangements with collaborators, contract research
organizations, clinical research sites and others, and maintain their franchises,
rights and permits, except (i) as set forth on Exhibit 15.1.1, (ii) in
accordance with the Pre-Sale Reorganization or (iii) otherwise expressly in
accordance with this Agreement.
	 
	 	15.1.2	 	Material Actions. Prior to the Closing Date, except (i) as set forth on
Exhibit 15.1.1, (ii) in accordance with the Pre-Sale Reorganization or (iii) otherwise
expressly in accordance with this Agreement, no Seller shall, and Sellers shall procure
that the Group Companies will not, without the prior written consent of Purchaser,
which shall not be unreasonably withheld,

	 	(a)	 	issue, deliver, sell or grant (i) any shares of its capital
stock, (ii) any bonds, debentures, notes or other indebtedness of any kind
having the right to vote (or convertible into, or exchangeable for, securities
having the right

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	 	 	 	to vote) on any matters on which holders of Shares may vote or
other voting securities, (iii) any securities convertible into or exchangeable
for, or any options, warrants or rights to acquire, any such shares, voting
securities or convertible or exchangeable securities, (iv) any “phantom” stock,
“phantom” stock rights, stock appreciation rights or stock-based performance
units or (v) any options, warrants, rights, securities, units, commitments,
contracts, arrangements or undertakings of any kind that give any Person the
right to receive any economic benefits and rights accruing to holders of
capital stock of any Group Company, other than the issuance of shares of its
capital stock by a wholly owned Group Company to another wholly owned Group
Company,
	 
	 	(b)	 	purchase, redeem or otherwise acquire any shares of capital
stock of any of the Group Companies or any other securities thereof or any
rights, warrants or options to acquire any such shares or other securities,
	 
	 	(c)	 	sell, transfer, create any Encumbrances on or otherwise dispose
of any of the Shares, or grant any options, warrants, pre-emptive rights,
rights of first refusal or other rights to purchase or obtain the Shares,
	 
	 	(d)	 	make any change in accounting methods, principles or practices
materially affecting the reported consolidated assets, liabilities or results
of operations of the Group Companies, except insofar as may have been required
by a change in IFRS or applicable statute, law (including common law),
ordinance, rule or regulation,
	 
	 	(e)	 	incur any Indebtedness (other than Financial Debt that may be
prepaid without premium or penalty or other Indebtedness incurred in the
ordinary course of business and consistent with past practice) or make any
loans, advances or capital contributions to, or investments in, any other
Person,
other than to or in the Group Companies or pursuant to the Cash Management
arrangements,
	 
	 	(f)	 	make or incur any capital expenditure that is not budgeted in
the 2007 annual budget and that, individually, is in excess of EUR 2,500,000,
	 
	 	(g)	 	make or change any Tax election or method of accounting for Tax
purposes or settle or compromise any Tax liability or refund, other than in the
ordinary course of business consistent with past practice or as required by
applicable statute, law (including common law), ordinance, rule or regulation
or that is not material to the Group Companies, taken as a whole,

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	 	(h)	 	(i) pay, discharge or satisfy any material claims, liabilities
or obligations (absolute, accrued, asserted or unasserted, contingent or
otherwise), other than the payment, discharge or satisfaction, (a) of
Indebtedness (including Financial Debt) or (b) in the ordinary course of
business or as required in accordance with their terms, of liabilities to the
extent reflected or reserved against in, or contemplated by, the 2006 Financial
Statements or incurred in the ordinary course of business consistent with past
practice, (ii) waive any material claims or rights of substantial value or
(iii) waive the benefits of, or agree to modify in any material way, any
material confidentiality or similar agreement to which any Group Company is a
party other than in the ordinary course of business, or
	 
	 	(i)	 	effect any measure or act with respect to the Companies for

	 	(i)	 	the liquidation of a Group Company, any
transformation or merger of a Group Company, the conclusion of any
enterprise agreement within the scope of Sections 291, 292 AktG, or any
change of the articles of association or other comparable charter or
organizational documents of a Group Company;
	 
	 	(ii)	 	the acquisition or disposal of Legal Entities
or businesses (through the acquisition or disposition of shares or
assets) or the conclusion of any partnership, joint venture or
consortium agreement, in each case outside the ordinary course of
business, if it leads to payments by the Group Companies in excess of
EUR 5,000,000 per annum;
	 
	 	(iii)	 	the acquisition, disposal or encumbrance of
any fixed assets, including real property, other than in the ordinary
course of
business, with an individual or aggregate value of or exceeding EUR
2,500,000;
	 
	 	(iv)	 	the acquisition or disposal, whether outright,
by way of license or otherwise, of Intellectual Property other than in
the ordinary course of business, unless such transaction provides for a
total consideration of less than EUR 2,500,000 per annum or EUR
5,000,000 over its term;
	 
	 	(v)	 	other than in the ordinary course of business
consistent with past practice, any material change in the terms of
employment (including material changes to compensation, retirement
benefits, severance or termination benefits, change in control payments
and benefit plans or arrangements), including the termination without

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	 	 	 	cause, of any Director, Officer or Key Employee of any Group Company;
	 
	 	(vi)	 	in the case of any Officer or employee of the
Group Companies who, as of the Signing Date, primarily performs
services in a position with the Group Companies, the transfer of any
such Officer or employee to a position with any of Sellers or Sellers’
Affiliates in which such employee will not be considered an employee of
the Group Companies as of the Closing;
	 
	 	(vii)	 	the grant or creation of any Encumbrance over
the Shares or any Encumbrances other than Permitted Encumbrances on any
assets or Owned Real Property of the Group Company other than
Encumbrances on any assets or Owned Real Property that in the
aggregate, together with Encumbrances existing on the Signing Date, are
immaterial to any Group Company; or
	 
	 	(viii)	 	the material modification, amendment or termination of any Material
Agreement or any agreement provided pursuant to in Section B of Exhibit
9.18, or the entry into any agreement that, if it were in effect on the
Signing Date, would have constituted a Material Agreement or would have
been required to be provided pursuant to Section B of the Exhibit 9.18
other than in each case, in the ordinary course of business.

15.2 Advice of Change

Sellers will promptly advise Purchaser orally and in writing of any state of facts, event,
change, effect, development, condition or occurrence that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

15.3 Consultation

In connection with the continuing operation of the Business between the Signing Date and the
Closing Date, Sellers and Sellers’ Affiliates will use reasonable best efforts to consult in
good faith on a regular basis with the representatives of Purchaser to report all material
operational developments and the status of ongoing operations; provided that the consultation
required by this Section 15.3 will be subject to compliance with applicable law and conducted
in a manner so as not to disrupt in any material respect the business of the Group Companies.
Sellers acknowledge that such consultation will not constitute a waiver by Purchaser of any
rights it may have under this Agreement and that Purchaser

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will not have any liability or
responsibility for any actions of the Group Companies or any of their respective directors or
officers with respect to matters that are the subject of such consultations.

15.4 Activities between Effective Date and Closing Date

If the Effective Date is prior to the Closing Date, then, except as set forth in Exhibit
15.1.1, no Seller shall, and Sellers shall procure that the Group Companies will not, without
the prior written consent of Purchaser (a) declare, make, pay or otherwise effect any
dividends, return of capital, or other distributions by the Companies to Sellers or Sellers’
Affiliates or (b) waive any material claims of the Group Companies. All further obligations
under Section 15.1 remain unaffected.

15.5 Employee Consultations

Purchaser and Sellers shall, and shall cause their respective Affiliates, to the extent
required under applicable law or by agreement, to (i) notify their employees of the
transactions contemplated by this Agreement and (ii) inform or consult with the works
councils, unions or equivalent employee representation bodies as listed in Exhibit 15.5 with
respect to the transactions contemplated by this Agreement. Each Party shall provide the
other Party with such information as they may reasonably request in connection with such
notifications and consultations.

15.6 Financing

Sellers and Sellers’ Affiliates shall provide, and shall cause their respective
Representatives to provide, and during the period prior to Closing shall cause the Group
Companies and their Representatives to provide, all reasonable cooperation in connection with
the arrangement of the Financing (including Debt Securities in lieu of or to refinance any
Bridge Financing and any registered offering or exchange offer with respect to any Debt
Securities) as may be reasonably requested by Purchaser including (i) participation in
meetings, drafting sessions and due diligence sessions, (ii) furnishing Purchaser and its
financing sources as soon as reasonably practicable after the Signing Date and prior to the
Closing Date with the following information regarding the Group Companies required by
Regulation S-X and Regulation S-K and the other rules and regulations under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”): (A) audited financial
statements (including balance sheets, statements of income and cash flows, a statement of
shareholders equity and related notes) audited for the most recently completed three fiscal
years and reviewed (as per “SAS 100” (or equivalent)) for the most recently completed interim
periods required to be included as of the Closing Date and the corresponding interim periods
in the prior year, each of them prepared in accordance with IFRS and stated in Euros, and
reconciled to United States generally accepted accounting

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principles in accordance with
applicable requirements of the United States Securities and Exchange Commission, together
with the report (unqualified, if obtainable) of an independent registered public accounting
firm and certificate that such accounting firm was independent under, and has audited such
financial statements in accordance with, applicable requirements of the United States
Securities and Exchange Commission (the “Required Financial Information”) and (B) such other
information as Purchaser may reasonably request, (iii) assisting, and using reasonable best
efforts to cause its accountants to assist, Purchaser and its financing sources in the
preparation of (A) pro forma financial statements of Purchaser for the most recently
completed full fiscal year of Purchaser and the most recently completed interim periods
required to be included as of the Closing Date, prepared in accordance with United States
generally accepted accounting principles and Regulation S-X under the U.S. Securities Act,
(B) offering documents for the Financing, (C) materials for rating agency presentations and
(D) Financing agreements and related schedules and exhibits, including schedules of existing
Indebtedness and Encumbrances of Group Companies, (iv) cooperating with the marketing efforts
of Purchaser and its financing sources for the Financing, (v) using reasonable best efforts
to cause the provision of consents of accountants for use of their reports in any materials
relating to the Financing and any required filings with the Securities and Exchange
Commission, (vi) facilitating the pledging of collateral and the provision of guarantees by
the Group Companies, (vii) using reasonable best efforts to obtain accountants’ comfort
letters, and (viii) obtaining legal opinions, officer’s certificates, surveys and title
insurance; provided that none of the Sellers, Sellers’ Affiliates or Group Companies shall be
required to pay any commitment or other similar fee or incur any other expense, except for
non-reimbursable out-of-pocket expenses and, in the case of internal overhead costs,
reasonably allocated internal overhead costs in excess of Euro 250,000, in connection with
the Financing (in the case of Group Companies prior to Closing). Sellers and Sellers’
Affiliates shall discuss with Purchaser and
Purchaser’s representatives the preparation of the requested financials hereunder and the
scope and conduct of the audit and shall consult with them and keep them informed during the
audit process. Sellers and Sellers’ Affiliates shall also permit Purchaser and Purchaser’s
representatives to discuss and review the conduct of the audit with the accounting firm
conducting the audit. Purchaser shall, promptly upon request by the Sellers, reimburse
Sellers, Sellers’ Affiliates and the Group Companies for all reasonable out-of-pocket costs
and reasonably allocated internal overhead costs (not to exceed, in the case of such overhead
costs, Euro 250,000 in the aggregate) incurred by Sellers, Sellers’ Affiliates and the Group
Companies in connection with such cooperation, and, without prejudice to Section 9.5,
Purchaser shall fully indemnify Sellers’ Representative, Sellers, Sellers’ Affiliates and
their respective officers, directors, employees and controlling persons against any costs,
expenses or other liability that may arise from the use of the reconciliation to United
States generally accepted accounting principles included in the Required Financial
Information. The cooperation by Sellers and Sellers’ Affiliates in connection with
Purchaser’s use of such reconciliation shall not constitute their adoption, support of or
representation concerning such reconciliation and they shall have no responsibility for their
use (it being understood and agreed, however, that a customary representation letter to the
independent registered public accounting firm shall be provided in connection with such
reconciliation). No Seller or Sellers’ Affiliate shall have any responsibility for, and any
such Seller or Seller’s Affiliate shall be indemnified against all

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losses, liabilities, costs
and expense arising out of information included in any Purchaser offering document or public
filing other than information provided by such Seller or Seller’s Affiliate expressly for
inclusion therein (including the Required Financial Information), it being understood that
any information so provided that is used in a manner or form other than the use in the manner
or form reasonably provided by any Seller or Sellers’ Affiliate shall be deemed not provided
by such Seller or Sellers’ Affiliate. Notwithstanding anything to the contrary in this
Section 15.6, the obligations set forth in this Section shall be subject to the advice of
counsel for Sellers and Sellers’ Affiliates that the performance requested is in accordance
with applicable legal requirements.

It is understood and agreed that for so long as Sellers and Sellers’ Affiliates use their
best efforts to perform all obligations and requirements provided in this Section 15.6, the
sole remedies for failure to perform in all material respects such obligations and
requirements shall be (x) Purchaser’s right not to Close or (y) the right to specifically
enforce the obligations of Sellers and Sellers’ Affiliates to use their best efforts to
perform such obligations and requirements.

15.7 Excluded Businesses

After the Closing Date, Purchaser shall have the option to, or to cause any of its Affiliates
to, require Sellers and Sellers’ Affiliates to transfer to Purchaser or one of its Affiliates
any of the generic development, manufacture and distribution businesses of Sellers and
Sellers’ Affiliates for generic drugs and specialty products in the Excluded Jurisdictions
(the “Excluded Businesses”). Purchaser may notify Seller of the
exercise of such option with respect to any Excluded Businesses only within the first two
years after the Closing Date. In consideration for the transfer of any Excluded Business,
Purchaser’s only payment obligation in connection with such transfers shall be to pay to
Sellers and Sellers’ Affiliates the actual costs incurred by Sellers and Sellers’ Affiliates
in separating the Excluded Businesses of Sellers and Sellers’ Affiliates from any other
businesses of Sellers and Sellers’ Affiliates (including transfer taxes and value added taxes
and restructuring costs, including any required severence costs), provided that (i) such
transfers shall be on a “debt free” and “cash free” basis and (ii) Purchaser or its
Affiliates may only acquire Excluded Businesses if it also acquires all Excluded Businesses
in the same region (which shall be categorized as Latin America, Eastern Europe and Asia).
Sellers and Sellers’ Affiliates, on the one hand, and Purchaser, on the other hand, shall
negotiate all applicable definitive documentation in good faith and in an orderly fashion
after the Closing Date. Sellers and Sellers’ Affiliates shall use their reasonable best
efforts to separate as soon as practicable but in an orderly fashion after the Closing Date
the respective Excluded Businesses from any other businesses of Sellers and Sellers’
Affiliates. Sellers and Sellers’ Affiliates shall after the Closing Date undertake the
actions under this Section 15.7 in a commercially reasonable manner that preserves the
economic value of the transactions contemplated by Section 15.7. Sellers and Sellers’
Affiliates shall consult with Purchaser after the Closing Date regarding such actions and
shall reasonably accommodate Purchaser’s requests with respect thereto. It is understood and
agreed that none of the

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provisions in this Section 15.7 shall be required to be complied
with to the extent they would reasonably be expected to prevent or materially delay the
consummation of the transactions contemplated by this Agreement.

15.8 Non-Solicitation and Non-Compete

	 	15.8.1	 	Sellers and Sellers’ Affiliates understand that Purchaser shall be entitled to
protect and preserve the going concern value of the business of the Group Companies
(including their know-how) to the extent permitted by law and that Purchaser would not
have entered into this Agreement absent the provisions of this Section 15.8 and,
therefore, subject to Section 15.8, for a period of two (2) years from the Closing
Date, (i) Sellers and Sellers’ Affiliates shall not directly or indirectly solicit,
recruit or hire any current or former director, officer or other employee of the Group
Companies or solicit or encourage any employee of the Group Companies to leave the
employment of the Group Companies; provided, however, that the foregoing will not
operate to prohibit Sellers and Sellers’ Affiliates from conducting general,
non-targeted solicitations for employment or hiring persons who respond to such
general, non-targeted solicitations for employment or hiring any person that left the
employ of the Group Companies more than six months previously or (ii) acquire any
Interests in any Legal Entity engaged in the same line of business as the Business if
the activities associated with such same line of business as the Business represent 20%
or more of such Legal Entity’s consolidated annual revenues or assets, it being
understood that this clause (ii) does not apply in the case of the acquisition of an
Interest in a Legal Entity engaged in the same line of business as the retained
business of the Sellers’
Representative group.
	 
	 	15.8.2	 	It is the intention of Parties that if any of the restrictions or covenants contained
in Section 15.8.1 is held to cover a geographic area or to be for a length of time
which is not permitted by applicable law, or in any way construed to be too broad or to
any extent invalid, such provision shall not be construed to be null, void and of no
effect, but to the extent such provision would be valid or enforceable under applicable
law, such provision shall be construed and interpreted or reformed so as to provide for
a restriction or covenant having the maximum enforceable geographic area, time period
and other provisions (not greater than those contained herein) as shall be valid and
enforceable under applicable law. Each of the parties acknowledges, however, that
Section 15.8.1 has been negotiated by the Parties and that the geographical and time
limitations on activities are reasonable in light of the circumstances pertaining to
the Parties.
	 
	 	15.8.3	 	The Parties agree that the provisions of this Section 15.8 may be specifically
enforced by any court of competent jurisdiction. The provisions on arbitration as
contained in Section 21.7 shall not apply to any disputes arising out of or in
connection with this Section 15.8.

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15.9 Additional Covenants

	 	15.9.1	 	Sellers and Sellers’ Affiliates will take all steps necessary to ensure that, from
and after the Closing Date, current and former employees of Sellers and Sellers’
Affiliates cease to participate in any benefit plan or benefit agreement of any of the
Group Companies.
	 
	 	15.9.2	 	Sellers and Sellers’ Guarantor shall take the actions set forth on Exhibit 15.9.2
with respect to certain pension or similar post-retirement matters.
	 
	 	15.9.3	 	On or prior to Closing, Sellers’ Representative shall deliver to Purchaser a “FIRPTA”
certificate substantially in the form attached hereto as Exhibit 15.9.3, duly executed
and acknowledged.

16.

BRAND LICENSE, INTELLECTUAL PROPERTY, 

INSURANCE AND GUARANTEES

16.1 Brand License Agreement

	 	16.1.1	 	License. Subject to the satisfaction or waiver of the Closing Conditions and
the terms of this Agreement, Merck and Purchaser shall enter into a trademark license
agreement regarding the use of certain Licensed Marks (as defined therein), including
the “Merck” Trademark, substantially in the form set forth in Exhibit 16.1.1 (the
“Brand License Agreement”).
	 
	 	16.1.2	 	Use by Group Companies. Purchaser shall cause the Group Companies not to
continue the use after the Closing Date, and Purchaser shall be responsible and liable
towards Merck for any use after the Closing Date by any Group Company, of (i) the
“Merck” name or logo or any variation thereof (including any Trademark that comprises
or consists of the term “Merck” or any variation thereof), or (ii) any Trademark listed
on Exhibit A to the Brand License Agreement, other than as permitted in the Brand
License Agreement.
	 
	 	16.1.3	 	Corporate Names of Group Companies. Purchaser shall, and shall cause the
Group Companies to, take all necessary and appropriate actions, to change each of the
names of the Group Companies that use the name “Merck” or any variation thereof as part
of their corporate name, by deleting such term from their corporate name in accordance
with the Brand License Agreement.

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16.2 Intellectual Property

	 	16.2.1	 	“Merck” Trademark. Purchaser acknowledges that Sellers’ Representative
retains and owns all right, title and interest in the Trademark “Merck” and any
Trademarks that include, comprise or consist of the term “Merck”, any variation thereof
that is or was used in connection with the Business and the goodwill symbolized by and
connected with the use thereof, including the Trademarks set forth on Exhibit B of the
Brand License Agreement. Should any such Trademarks be registered in the name of a
Group Company, Sellers shall have the right to amend or transfer the applicable
Trademark registration to reflect that such Trademark is owned by Sellers’
Representative. Any such Trademark shall be subject to the provisions governing
Licensed Marks under the Brand License Agreement to the extent it is used by a Group
Company on the Signing Date.
	 
	 	16.2.2	 	Intellectual Property Used by Seller Group. All Intellectual Property (other
than
as set forth in Section 16.2.1 above) that is owned by a Group Company, but used by
any of Sellers or Sellers’ Affiliates outside of the Business shall be transferred,
at the election of Sellers, to Sellers or one of Sellers’ Affiliates. Any such
Intellectual Property other than Trademarks shall be subject to the license granted
under Section 16.2.3 below. Any Trademarks included in, or including, such
Intellectual Property, shall be subject to the provisions governing Licensed Marks
under the Brand License Agreement to the extent they are used by a Group Company on
the Signing Date. All Intellectual Property that is owned by Sellers or Sellers’
Affiliates, but used exclusively by the Group Companies shall be transferred, at the
election of Purchaser, to Purchaser or any of its Affiliates.
	 
	 	16.2.3	 	Additional Intellectual Property. In the event that, following the Closing
Date, either party identifies any Intellectual Property (other than Trademarks) that
(i) is owned by Sellers or any Sellers’ Affiliate, (ii) is used by the Business (or, at
the time of and subject to their acquisition, any Excluded Businesses), other than
solely in connection with excluded services set forth in Exhibit 16.3, (iii) is not
provided to the Group Companies pursuant to the Brand License Agreement or the
Transitional Services Agreement, (iv) is or was not provided to the Group Companies
pursuant to any supply or distribution agreement that is the subject of Section 10.13.3
(“Additional Intellectual Property”), effective as of such identification, the Sellers
or such Sellers’ Affiliate, as applicable, hereby grant to the Group Companies the
non-exclusive, royalty free, fully paid, perpetual, freely sublicensable right and
license to use such Additional Intellectual Property (a) in the conduct of the Business
and (b) subject to and from and after the acquisition by Purchaser of any Excluded
Business, in the conduct of such Excluded Business.
	 
	 	16.2.4	 	Transfer of Certain Trademarks. Sellers will ensure that EMD Chemicals Inc.
transfers the Trademark EpiPen prior to the Effective Date to an entity to be
designated by Purchaser. Seller 1 will transfer the Trademarks Duranifin and

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	 	 	 	Enadura prior to the Effective Date to an entity to be designated by Purchaser. The
consideration payable for the transfer of the aforementioned Trademarks will be part of
the Purchase Price as indicated in Exhibit 4.1.4. The Parties will ensure that the
out-of-pocket costs incurred in connection with such transfers will be borne by Sellers
and Sellers’ Affiliates.
	 
	 	16.2.5	 	Written Materials. In the event that, following the Closing Date, Purchaser
or one of the Group Companies identifies written materials evidencing Intellectual
Property owned by Sellers or any Sellers’ Affiliate that are in the possession of
Purchaser or one of the Group Companies, Purchaser or such Group Company, as
applicable, agrees (i) to return to Sellers or destroy such written materials, (ii) not
to use such written materials for any purpose and (iii) not to disclose such written
materials to any third party. In the event that, following the Closing Date, a Seller
or any Sellers’ Affiliate identifies written materials evidencing the Intellectual
Property used exclusively in connection with the Business (or after and subject to
its acquisition by Purchaser, any Excluded Business), Seller or such Sellers’
Affiliate, as applicable, agrees (i) to return to Purchaser or destroy such written
materials, (ii) not to use such written materials for any purpose and (iii) not to
disclose such written materials to any third party.

16.3 Transitional Service Agreement

Purchaser will cooperate with Sellers and Sellers’ Affiliates, and Sellers and Sellers’
Affiliates will cooperate with Purchaser, in connection with (i) the establishment of secure
system connectivity, and (ii) the establishment of controlled access to data (collectively,
“Secure System Separation Activities”). Purchaser shall bear all costs and expenses incurred
by it in connection with such cooperation, and shall reimburse Sellers and Sellers’
Affiliates for all costs and expenses incurred by them in connection with Separation
Activities.

Prior to Closing, Sellers and Sellers’ Affiliates shall cooperate with Purchaser in order to
discuss in further detail the services set forth on the schedules to the Transitional
Services Agreement. In the event that, between the Signing Date and Closing, the parties
identify any service that (i) is not set forth on the schedules to the Transitional Services
Agreement, (ii) was provided by Sellers or Sellers’ Affiliates to the Group Companies prior
to the Closing Date, (iii) cannot be obtained from a third party using commercially
reasonable efforts, and (iv) is not listed as an excluded service on Exhibit 16.3, the
parties will work together in good faith to determine the scope, any appropriate cost, term
and timeline for providing such services, including the cost of any Secure System Separation
Activities associated therewith, and the Sellers or Sellers’ Affiliates will provide any such
services pursuant to the Transitional Services Agreement.

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16.4 Insurance Coverage

Purchaser agrees that the existing insurance coverage for the Group Companies as listed on
Exhibit 16.4 will terminate as of Closing as a result of (i) automatic termination
provisions, (ii) notices by Sellers’ Affiliates or the insurers or (iii) by agreement with
the respective insurers. Purchaser acknowledges and agrees that Sellers will not reimburse
Purchaser or any Group Company for any premiums or allocations on account of premiums paid or
payable by the Group Companies for any period not fully covered by insurance due to the
termination of the insurance as of or in connection with the Closing provided that Sellers
will grant such reimbursement if and when and to the extent Sellers or Sellers’ Affiliates
are reimbursed by the respective insurer for partial periods not covered because policies are
terminated as a result of the transactions contemplated hereby.

16.5 Merck Guarantees

	 	16.5.1	 	Merck Guarantees. Purchaser shall use its best efforts to assist Sellers and
Sellers’ Affiliates in obtaining the release from the obligations under the guarantees,
letters of comfort or similar instruments with respect to the Group Companies set forth
in Exhibit 16.5.1 (the “Merck Guarantees”).
	 
	 	16.5.2	 	Indemnification by Purchaser. Subject to Sellers’ obligations to Purchaser
hereunder, Purchaser shall indemnify Sellers and Sellers’ Affiliates against, and hold
them harmless from, any claims made by the beneficiaries of the Merck Guarantees to the
extent the obligated party under the Merck Guarantees has not been indemnified, or
received reimbursement of payments made on account of such claims, by or from the Group
Companies prior to the Closing Date.

16.6 Sellers’ Guarantees

Sellers guarantee to Purchaser, as from the Closing Date, the payment by Gennium Pharma Inc.
of loan receivables owed by it to Genpharm Inc. to the extent such receivables are accounted
for as Cash in the Effective Date Financial Statements. In the event Gennium Pharma Inc.
does not pay all such amounts when due, Sellers shall pay such amounts to Purchaser within 30
days after the due date without demand.

80

 

17.

SELLERS’ GUARANTOR AND SELLERS’ REPRESENTATIVE

17.1 Sellers’ Guarantor

Sellers’ Guarantor hereby unconditionally and irrevocably guarantees the full and punctual
performance of all obligations of Sellers under this Agreement. Sections 768 and 770 BGB
shall apply.

17.2 Guarantees by Sellers’ Guarantor

Sellers’ Guarantor hereby guarantees (garantiert) by way of an independent guarantee
(verschuldensunabhängiges Garantieversprechen) pursuant to Section 311 para. 1 BGB that the
following statements are complete and accurate on the Signing Date and the Closing Date:

	 	17.2.1	 	Existence. Sellers’ Guarantor is duly established and validly existing under
the
laws of the Federal Republic of Germany.
	 
	 	17.2.2	 	Capacity. The execution of this Agreement by Sellers’ Guarantor and the
performance of its obligations hereunder are within its corporate powers, do not
violate its constitutional documents and have been authorized by all necessary
corporate action on behalf of Sellers’ Guarantor. Sellers’ Guarantor is not bound by
any judicial or governmental order (gerichtliche oder behördliche Verfügung) that would
prohibit the performance of its obligations contemplated hereunder.
	 
	 	17.2.3	 	No Insolvency. No insolvency proceedings have been opened over the assets of
Sellers’ Guarantor and no circumstances exist that would require Sellers’ Guarantor or
its Directors and Officers or shareholders to apply for the opening of such
proceedings.
	 
	 	17.2.4	 	Enforceability. Assuming due authorization, execution and delivery by
Purchaser, this Agreement constitutes legal, valid and binding obligations of Sellers’
Guarantor enforceable in accordance with its terms.

17.3 Remedies

In the event of any breach or non-fulfillment of any guarantee set forth in Section 17.2,
Sellers Guarantor shall put Purchaser into the position that Purchaser would have been in

81

 

had
the breach not occurred or the guarantee had been fulfilled (Naturalrestitution). Section 10
applies, mutatis mutandis.

17.4 Authorization of Sellers’ Representative

Each Seller has irrevocably authorized and appointed, and for the avoidance of doubt hereby
irrevocably repeats such authorization and appointment, Sellers’ Representative as its true
and lawful representative to exercise in such Seller’s name and on its account all rights of
such Seller and to take all actions and to make and receive all information, notices and
declarations on behalf of such Seller in connection with this Agreement or exercise all other
rights as otherwise provided for in this Agreement. Sellers hereby appoint Sellers’
Representative as their agent for service of process in the Federal Republic of Germany for
any legal proceedings involving Sellers that arise out of or in connection with this
Agreement. Purchaser shall direct, send and deliver all information, notices and declarations
for any Seller only to, and conduct any communication with Sellers only through, Sellers’
Representative.

18.

PUBLIC ANNOUNCEMENTS AND CONFIDENTIALITY

18.1 Confidentiality

	 	18.1.1	 	Each of Sellers and Sellers’ Affiliates will keep the Confidential Information
strictly confidential and will not (except as required by applicable law, regulation or
legal process, and only after compliance with Section 18.1.3 below), without
Purchaser’s prior written consent, disclose any information in the Confidential
Information, except that the Confidential Information (or portions thereof) may be
disclosed to affiliates, directors, officers, employees, advisors, agents, and
representatives (such persons collectively, “Representatives”) of Sellers or Sellers’
Affiliates who need to know such information (it being understood that prior to such
disclosure such Representatives will be informed of the confidential nature of the
Confidential Information and the Sellers’ obligations hereunder). Sellers and Sellers’
Affiliates agree to be responsible for any action by their Representatives that if
taken by them would constitute a breach of this Section 18.1.
	 
	 	18.1.2	 	The term “Confidential Information” includes all information with respect to the
Group Companies and the Business, including all copies, reproductions, summaries,
analyses or extracts thereof or based thereon, but does not include any information
that at the time of disclosure or thereafter is generally known by the public (other
than as a result of its disclosure by Sellers or Sellers’ Affiliates after the Signing
Date in violation of this Agreement).

82

 

	 	18.1.3	 	In the event that Sellers or Sellers’ Affiliates receive a request or are required to
disclose all or any part of the information contained in the Confidential Information
pursuant to the terms of a valid and effective subpoena or order issued by a court of
competent jurisdiction or a federal, state or local governmental or regulatory body or
pursuant to a civil investigative demand or similar judicial process or otherwise
pursuant to applicable law, Sellers agree to (i) promptly notify Purchaser in writing
of the existence, terms and circumstances surrounding such a request or requirement,
(ii) consult with Purchaser on the advisability of taking legally available steps to
resist or narrow such request or requirement, and (iii) if disclosure of such
information is required, disclose only any such information that Sellers are advised by
legal counsel is legally required to be disclosed and will exercise reasonable best
efforts to obtain an order or other reliable assurance that confidential treatment will
be accorded to such information. Any disclosure of information shall be limited to the
extent Sellers or Sellers’ Affiliates are advised by legal counsel that they are
obliged to disclose.
	 
	 	18.1.4	 	The existing confidentiality agreement between Purchaser and Sellers’
Representative dated 6 March 2007 (the “Confidentiality Agreement ”) shall remain
unaffected.

18.2 Press Release

Purchaser and Sellers shall consult with each other before issuing any press release or
otherwise making any public statements with respect to this Agreement or the transactions
contemplated hereby, and neither any Seller nor Purchaser shall issue any such press release
or make any such public statement prior to such consultation, except that if the relevant
Party is required by law or by applicable stock exchange regulations to make an announcement
it may do so, but only after first consulting with the other Parties. The foregoing
provisions shall apply equally to Sellers’ Guarantor, who shall be required to consult with
Purchaser who shall be required to consult with Sellers’ Guarantor.

18.3 Return of Documents

In the event of the termination of this Agreement, Purchaser shall, and shall cause each of
its Affiliates and representatives to, return promptly or destroy every document furnished to
them in connection with the transactions contemplated hereby and any copies thereof, which
may have been made, other than documents (i) filed with any government agencies, (ii) that
are publicly available or otherwise known to the public, or (iii) that are required to be
retained by Purchaser’s representatives under applicable laws and regulations of their
practice. Further obligations of the Parties under the Confidentiality Agreement remain
unaffected.

83

 

19.

NOTICES

19.1 Form and Addresses

All notices, consents, and other communications hereunder shall be made in writing and shall
be hand-delivered or sent by facsimile or courier to the following addresses, or to such
other recipients or addresses as notified by the respective Party to the other Parties in
writing no later than five Business Days before any subsequent notices or communications have
been sent to such person.

19.1.1 Notices to Sellers

Merck KGaA

as Sellers’ Representative

Attn.: Dr. Tilman Schmidt-Lorenz

Frankfurter Straße 250

D-64293 Darmstadt

Fax: + 49-6151-72-7773

with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

Attn.: Hilary S. Foulkes

An der Welle 5

D-60322 Frankfurt am Main

Fax: + 49-69-74220-300

     19.1.2 Notices to Sellers’ Guarantor

Merck KGaA

Attn.: Dr. Tilman Schmidt-Lorenz

Frankfurter Straße 250

D-64293 Darmstadt

Fax: + 49-6151-72-7773

with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

Attn.: Hilary S. Foulkes

An der Welle 5

D-60322 Frankfurt am Main

Fax: + 49-69-74220-300

84

 

     19.1.3 Notices to Purchaser

Mylan Laboratories Inc.

1500 Corporate Drive,

Canonsburg, Pennsylvania 15317, U.S.A.

Fax: 724 514 1870

with a copy to:

Mark I. Greene, Esq. and Thomas E. Dunn, Esq.

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, New York 10019

Fax: +1 212 474 3700

19.2 Date of Receipt

Notices and communications shall be deemed to have been received (i) on the date delivered if
delivered in person; (ii) on the date of transmission if sent by facsimile to the addresses
set forth above; and (iii) on the day of delivery if sent by overnight courier; provided in
each case that if receipt (a) occurs after 17:00 hours local time at the place of receipt or
(b) on a day that is not a Business Day, receipt shall be deemed to have occurred on the next
succeeding Business Day. The receiving party has the right to prove that actual receipt
occurred at a later date.

20.

COSTS

The notarial fees for the notarization of this Agreement and all transfer deeds and other deeds
hereunder as well as any costs, fees and expenses relating to any merger control filings shall be
borne by Purchaser. Purchaser shall also be responsible for the payment of any sales or transfer
taxes (including any real estate transfer taxes, but excluding any value added taxes), court fees
or similar charges, payable by reason of the transactions contemplated by this Agreement. All other
costs, including fees, expenses and charges, in connection with the preparation, negotiation,
execution and consummation of this Agreement or the transactions contemplated hereby (including the
Pre-Sale Reorganization), including the fees and expenses of professional advisors and costs of
representation shall be borne by the Party commissioning such costs. Sellers shall ensure that all
such out-of-pocket costs of the Group Companies are paid directly by Sellers prior to Closing
(except to the extent any such costs are included in Financial Debt as of the Effective Date).

85

 

21.

MISCELLANEOUS

21.1 Severability

The invalidity of any provision (or parts thereof) of this Agreement shall not affect the
validity of any other provision hereof, and the invalid provision shall be deemed to be
replaced by a valid provision coming closest in its commercial effect to the invalid
provision. The foregoing shall also apply to unenforceable provisions and to matters as to
which this Agreement is silent. If a provision of this Agreement should be held invalid by a
competent court or an arbitration tribunal because of the scope of its coverage (such as
territory, subject matter, time, period or amount), such provision shall not be deemed to be
completely invalid but shall be deemed to be valid with the permissible scope that is nearest
to the originally agreed-upon scope.

21.2 Exhibits

All Exhibits and Disclosure Schedules to this Agreement constitute a part of this Agreement.
In the event of a conflict between any Exhibit and the provisions of this Agreement, the
provisions of this Agreement shall prevail.

21.3 Entire Agreement

This Agreement, including the Exhibits and Schedules hereto, shall comprise the entire
agreement between the Parties concerning the subject matter hereof and shall supersede and
replace all prior oral or written agreements or understanding between the Parties in respect
thereof.

21.4 Amendments

Any amendments to this Agreement (including amendments to this clause) shall be valid only if
made in writing, unless another form is required by mandatory law.

21.5 Assignment and Designation of Transferors

Subject to Section 3.1.5, Purchaser shall not be entitled to assign any rights or claims it
may have against any Seller (including Sellers’ Representative) under this Agreement without
the prior written consent of Sellers’ Representative; provided, however, that Purchaser may
designate any of its direct or indirect, wholly owned subsidiaries as

86

 

transferee of the Shares and Purchaser may assign its rights under this Agreement by way of
security in connection with the Financing. Each Seller and Sellers Representative may assign
its rights under this Agreement to any Sellers’ Affiliate.

21.6 Governing Law

This Agreement shall be governed by, and be construed in accordance with, the laws of the
Federal Republic of Germany, without regard to principles of conflicts of laws.

21.7 Arbitration

	 	21.7.1	 	Except as set forth in Section 15.8 and 5.2, any dispute, controversy or claim
arising out of or in connection with this Agreement, including any question regarding
its existence, validity, or termination (a “Dispute”), shall be referred to and finally
resolved by binding arbitration under the Rules of Arbitration of the International
Chamber of Commerce, which Rules are deemed to be incorporated by reference into this
clause.
	 
	 	21.7.2	 	There shall be three arbitrators and the parties agree that, where there are only two
parties to the Dispute, one arbitrator shall be nominated by each of those parties for
confirmation by the ICC Court in accordance with the ICC Rules. Where there are more
than two parties to the Dispute, whether as claimant or as respondent, the multiple
claimants, jointly, and the multiple respondents, jointly, shall nominate an arbitrator
for confirmation by the ICC Court in accordance with the ICC Rules. In the absence of
such a joint nomination and where all parties are unable to agree to a method for the
constitution of the arbitral tribunal, the ICC Court may appoint each member of the
arbitral tribunal pursuant to Article 10(2) of the ICC Rules. The two arbitrators
nominated by the parties shall jointly nominate the third arbitrator. The third
arbitrator shall be neither a United States citizen nor a German citizen. In the event
they cannot agree on the third arbitrator within ten days of the confirmation by the
ICC Court of the arbitrators nominated by the parties, the third arbitrator shall be
appointed by the ICC Court. The third arbitrator shall act as the chairman of the
tribunal.
	 
	 	21.7.3	 	The seat or place of arbitration shall be London, United Kingdom. The language to be
used in the arbitral proceedings shall be English. The award shall be final and
binding on the parties and may be entered and enforced in any court having
jurisdiction.
	 
	 	21.7.4	 	In accordance with Article 23 of the ICC Rules, the jurisdiction of courts to issue
an interim or preliminary injunction, or any other interim relief, shall remain

87

 

	 	 	 	unaffected by the Parties’ agreement to arbitrate pursuant to this clause. Without
prejudice to such injunctions that may be granted by a court, the arbitral tribunal
shall also have full jurisdiction to grant interim or provisional remedies, to order
a party to seek modification or vacation of an injunction issued by a court, and to
award damages for the failure of a party to respect the arbitral tribunal’s orders
to that effect.
	 
	 	21.7.5	 	Upon request by any Party to an arbitration pursuant to this Section 21.7, the
arbitral tribunal may, within 90 days of its appointment, consolidate the arbitration
with any other arbitration or proposed arbitration involving the Parties and relating
to this Agreement or any related agreement between the Parties. The arbitral tribunal
shall not consolidate such arbitrations unless it determines that (a) there are issues
of fact or law common to the arbitrations in question so that a consolidated proceeding
would be more efficient than separate proceedings, and (b) no Party would be prejudiced
as a result of such consolidation. In the event of different rulings on the
consolidation by the arbitration tribunals constituted hereunder, or such arbitration
tribunals and other tribunals, whether constituted under this Agreement or a related
agreement, the ruling of the first tribunal to be fully appointed shall control.
Following a ruling approving the consolidation of two or more arbitration proceedings,
the Parties to the consolidated arbitration shall use all reasonable endeavors to agree
upon the identity of the arbitration tribunal to determine such consolidated
arbitration. Failing such agreement within 28 days of the consolidation ruling, the ICC
Court shall decide upon the identity of the arbitration tribunal to determine such
consolidated arbitration from the tribunals already established, reflecting the
nominations of arbitrators by the Parties, and shall appoint the tribunal accordingly.

88Exhibit
4.4

FOUNDER
WARRANT CERTIFICATE

THIS WARRANT CERTIFICATE (I) CANNOT BE
TRANSFERRED OR EXCHANGED UNTIL SHERMEN WSC ACQUISITION CORP.’S COMPLETION OF A
BUSINESS COMBINATION AND (II) CANNOT BE EXERCISED IN WHOLE OR IN PART
UNTIL THE LATER OF THE COMPANY’S COMPLETION OF A BUSINESS COMBINATION OR [one year from date of prospectus], 2008.

EXERCISABLE ONLY IF COUNTERSIGNED BY
THE WARRANT

AGENT AS PROVIDED HEREIN.

Warrant Certificate evidencing

Warrants to Purchase Common Stock, par value $.0001, as
described herein.

Shermen WSC Acquisition Corp.

No. [       ]                                                                                               CUSIP
No. [                                    ]

VOID
AFTER 5:00 P.M., NEW YORK CITY TIME,

ON [four years from date of prospectus],
2011, OR UPON EARLIER REDEMPTION

This certifies that Shermen WSC Holding LLC, or its
registered assigns, is the registered holder of 5,214,286 warrants to purchase
certain securities (each a “Warrant”). 
Each Warrant entitles the holder thereof, subject to the provisions contained
herein and in the Warrant Agreement (as defined below), to purchase from Shermen
WSC Acquisition Corp., a Delaware corporation (the “Company”), one share of the Company’s Common Stock (each a “Share”), at the Exercise Price set forth
below.  The exercise price of each Warrant (the “Exercise Price”) shall be $5.00 initially,
subject to adjustments as set forth in the Warrant Agreement (as defined
below).

Subject to the terms of the Warrant Agreement, each
Warrant evidenced hereby may be exercised in whole, but not in part, at any
time, as specified herein, on any Business Day (as defined below) occurring
during the period (the “Exercise Period”)
commencing on the later of the Company’s completion of a Business Combination
(as defined below) or [one year from date of
prospectus], 2008 and ending at 5:00 P.M., New York City time,
on [four years from date of prospectus],
2011 (the “Expiration Date”). 
Each Warrant remaining unexercised after 5:00 P.M., New York City time on
the Expiration Date shall become void, and all rights of the holder of this
Warrant Certificate evidencing such Warrant shall cease.

The holder of the Warrants represented by this Warrant
Certificate may exercise any Warrant evidenced hereby by delivering, not later
than 5:00 P.M., New York City time, on any Business Day during the Exercise
Period (the “Exercise Date”) to
Continental Stock Transfer & Trust Company (the “Warrant Agent”, which term includes any successor warrant
agent under the Warrant Agreement described below) at its corporate trust
department at 17 Battery Place, New York, NY 10004, (i) this Warrant
Certificate and the Warrants to be exercised (the “Book-Entry Warrants”) free on the records of The Depository
Trust Company (the “Depository”)
to an account of the Warrant Agent at the Depository designated for such
purpose in writing by the Warrant Agent to the Depository, (ii) an election to
purchase (“Election to Purchase”),
properly executed (A) by the holder hereof on the reverse of this Warrant
Certificate or (B) properly executed by the institution in whose account the
Warrant is recorded on the records of the Depository (the “Participant”) substantially in the form
included on the reverse of hereof, as applicable and (iii) the Exercise
Price for each Warrant to be exercised in lawful money of the United States of
America by certified or official bank check or by bank wire transfer in
immediately available funds.  If any of (a) this Warrant Certificate or
the Book-Entry Warrants, (b) the Election to Purchase, or (c) the Exercise
Price therefor, is received by the Warrant Agent after 5:00 P.M., New York
City time, the Warrants will be deemed to be received and exercised on the
Business Day next succeeding the date such items are received and such date
shall be the Exercise Date for purposes hereof.  If the date such items are
received is not a Business Day, the Warrants will be deemed to be received and
exercised on the next succeeding day which is a Business Day and such date
shall be the Exercise Date. If the Warrants to be exercised are received or
deemed to be received after the Expiration Date, the exercise thereof will be
null and void and any funds delivered to the Warrant Agent will be returned to
the holder as soon as practicable.  In no event will interest accrue on
funds deposited with the Warrant Agent in respect of an exercise or attempted
exercise of Warrants.  The validity of any exercise of Warrants will be
determined by the Warrant Agent in its sole discretion and such determination
will be final and binding upon the holder of the

 

 

Warrants and the Company.  Neither the Warrant
Agent nor the Company shall have any obligation to inform a holder of Warrants
of the invalidity of any exercise of Warrants.

As used herein, the term “Business Day” means any day that is not a Saturday or Sunday
and is not a United States federal holiday or a day on which banking
institutions generally are authorized or obligated by law or regulation to
close in New York City.

As used herein, the term “Business Combination” shall mean the acquisition by the
Company, whether by merger, capital stock exchange, asset acquisition or stock
purchase or other similar business combination of an operating business (the “Target Business”) having, a fair market
value (as calculated in accordance with the Company’s Amended and Restated
Certificate of Incorporation) at least equal to 80% of the Company’s net assets
at the time of such merger, capital stock exchange, asset acquisition or stock
purchase or other similar business combination.

Warrants may be exercised only in whole numbers of
Warrants.  No fractional shares of Common Stock are to be issued upon the
exercise of any Warrant, but rather the number of shares of Common Stock to be
issued shall be rounded up to the nearest whole number.  If fewer than all
of the Warrants evidenced by this Warrant Certificate are exercised, a new
Warrant Certificate for the number of Warrants remaining unexercised shall be
executed by the Company and countersigned by the Warrant Agent as provided in
Section 2 of the Warrant Agreement, and delivered to the holder of this Warrant
Certificate at the address specified on the books of the Warrant Agent or as
otherwise specified by such registered holder.

This Warrant Certificate is issued under and in
accordance with the Founder Warrant Agreement, dated as of [                  ],
2007 (the “Warrant Agreement”),
between the Company and the Warrant Agent and the Founder Warrant Purchase
Agreement, dated as of
[                  ],
2007 (the “Founder Warrant Purchase Agreement”), between the Company and Shermen
WSC Holding LLC, and is subject to the terms and provisions contained in the
Warrant Agreement and the Founder Warrant Purchase Agreement, to all of which
terms and provisions the holder of this Warrant Certificate and the beneficial
owners of the Warrants represented by this Warrant Certificate consent by
acceptance hereof.  Copies of the Warrant Agreement and the Founder
Warrant Purchase Agreement are on file and can be inspected at the
above-mentioned office of the Warrant Agent and at the office of the Company at
c/o The Shermen Group, 1251 Avenue of the Americas, Suite 900, New York, New
York  10020.

At any time during the Exercise Period, the Company
may, at its option, redeem all (but not part) of the then outstanding Warrants
upon giving notice in accordance with the terms of the Warrant Agreement (the “Redemption Notice”), at the price of $0.01
per Warrant (the “Redemption Price”);
provided, that the last sales price of the Shares has been at least $8.50
per Share for any twenty (20) trading days within a thirty (30) consecutive
trading day period ending on the third Business Day prior to the date on which
the Redemption Notice is given.  In the event the Company shall elect to
redeem all of the then outstanding Warrants, the Company shall fix a date for
such redemption (the “Redemption Date”);
provided, that such date shall occur prior to the expiration of the
Exercise Period.  The Warrants may be exercised in accordance with the
terms of this Agreement at any time after a Redemption Notice shall have been
given by the Company; provided, however, that no Warrants may be
exercised subsequent to the expiration of the Exercise Period; provided,
further, that all rights whatsoever with respect to the Warrants shall
cease on the Redemption Date, other than to the right to receive the Redemption
Price. In addition, if the Company calls the outstanding Warrants for
redemption as provided above, the holder of the Warrants may exercise the
Warrants on a cashless basis.  Any Shares
issued on the exercise of the Warrants and transferred to the Company as
payment of the exercise price under this Warrant Certificate shall be valued
according each such Shares’ Fair Market Value (as defined in the Warrant
Agreement) or, if the Shares are then publicly traded in a Liquid Public Market
(as defined in the Warrant Agreement), the average of the closing prices for
the thirty (30) consecutive trading days preceding the date of exercise of the
Warrants.

The accrual of dividends, if any, on the Shares issued
upon the valid exercise of any Warrant will be governed by the terms generally
applicable to such Shares.  From and after the issuance of such Shares,
the former holder of the Warrants exercised will be entitled to the benefits
generally available to other holders of Shares and such former holder’s right
to receive payments of dividends and any other amounts payable in respect of
the Shares shall be governed by, and shall be subject to, the terms and
provisions generally applicable to such Shares.

 

2

 

 

The Exercise Price and the number of Shares
purchasable upon the exercise of each Warrant shall be subject to adjustment as
provided pursuant to Section 4 of the Warrant Agreement.

Prior to the Company’s completion of a business
combination, the Warrants represented by this Warrant Certificate may not be
exchanged or transferred, except Shermen WSC Holding LLC may distribute the
Warrants to its members.  Upon due
presentment for registration of transfer or exchange of this Warrant
Certificate at the stock transfer division of the Warrant Agent, the Company
shall execute, and the Warrant Agent shall countersign and deliver, as provided
in Section 5 of the Warrant Agreement, in the name of the designated transferee
one or more new Warrant Certificates of any authorized denomination evidencing
in the aggregate a like number of unexercised Warrants, subject to the
limitations provided in the Warrant Agreement.

Neither this Warrant Certificate nor the Warrants
evidenced hereby shall entitle the holder hereof or thereof to any of the
rights of a holder of the Shares, including, without limitation, the right to
receive dividends, if any, or payments upon the liquidation, dissolution or
winding up of the Company or to exercise voting rights, if any.

The Warrant Agreement and this Warrant Certificate may
be amended as provided in the Warrant Agreement including, under certain
circumstances described therein, without the consent of the holder of this
Warrant Certificate or the Warrants evidenced thereby.

THIS WARRANT CERTIFICATE AND ALL RIGHTS HEREUNDER
AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK,
WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH
PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

This Warrant Certificate shall not be entitled to any
benefit under the Warrant Agreement or be valid or obligatory for any purpose,
and no Warrant evidenced hereby may be exercised, unless this Warrant
Certificate has been countersigned by the manual signature of the Warrant
Agent.

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.  Dated as of [                   ],
2007.

	
   

  	
  Shermen WSC Acquisition Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: G. Kenneth Moshenek

  Title:  
  President and Chief Operating Officer

  
	
   

  	
   

  	
   

  

Continental Stock
Transfer

& Trust Company,

as Warrant Agent

	
  By: 

  	
   

  	
   

  
	
  Authorized Officer

  	
   

  

 

 

3

 

 

 

[REVERSE]

Instructions for Exercise of
Warrant

To exercise the Warrants evidenced hereby, the holder
or Participant must, by 5:00 P.M., New York City time, on the specified
Exercise Date, deliver to the Warrant Agent at its stock transfer division, a
certified or official bank check or a wire transfer in immediately available
funds, in each case payable to the Warrant Agent at Account No. [         ],
in an amount equal to the Exercise Price in full for the Warrants exercised or
inform the Warrant Agent that it is exercising the Warrants on a cashless basis.
In addition, the Warrant holder or Participant must provide the information
required below and deliver this Warrant Certificate to the Warrant Agent at the
address set forth below and the Book-Entry Warrants to the Warrant Agent in its
account with the Depository designated for such purpose.  The Warrant
Certificate and this Election to Purchase must be received by the Warrant Agent
by 5:00 P.M., New York time, on the specified Exercise Date.

ELECTION TO PURCHASE

TO BE EXECUTED IF WARRANT HOLDER DESIRES

TO EXERCISE THE WARRANTS EVIDENCED
HEREBY

The undersigned hereby irrevocably elects to exercise,
on
                    ,
         (the “Exercise Date”),
                          
Warrants, evidenced by this Warrant Certificate, to purchase,
                                  
of the shares of Common Stock (each a “Share”)
of Shermen WSC Acquisition Corp., a Delaware corporation (the “Company”), and represents that, on or
before the Exercise Date, such holder has tendered payment for such Shares by
certified or official bank check or bank wire transfer in immediately available
funds to the order of the Company c/o Continental Stock Transfer & Trust
Company, 17 Battery Place, New York, New York 10004, in the amount of
$                          
 or has informed the Warrant Agent that it
is exercising the Warrants on a cashless basis in accordance with the terms
hereof.  The undersigned requests that said number of Shares be in fully
registered form, registered in such names and delivered, all as specified in
accordance with the instructions set forth below.

If said number of Shares is less than all of the
Shares purchasable hereunder, the undersigned requests that a new Warrant
Certificate evidencing the remaining balance of the Warrants evidenced hereby
be issued and delivered to the holder of the Warrant Certificate unless
otherwise specified in the instructions below.

Dated:                                   ,
        

	
  Name

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  (Please Print)

  	 

	
  /  /  /  / -
  /  /  / -
  /  /  /  /  /

  	
   

  	
   

  	 

	
  (Insert Social Security

  	
   

  	
   

  	 

	
  or Other Identifying

  	
   

  	
   

  	 

	
  Number of Holder)

  	
  Address

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
														

This Warrant may only be
exercised by presentation to the Warrant Agent at one of the following
locations:

By hand at: [                                                               ]

By mail at:  [                                                               ]

The method of delivery of this Warrant Certificate is
at the option and risk of the exercising holder and the delivery of this
Warrant Certificate will be deemed to be made only when actually received by
the Warrant Agent.  If delivery is by mail, registered mail with return
receipt requested, properly insured, is recommended.  In all cases,
sufficient time should be allowed to assure timely delivery.

 

4

 

(Instructions as to form and delivery of Shares and/or
Warrant Certificates)

	
  Name in which Shares

  	
   

  	
   

  
	
  are to be registered if other than

  	
   

  	
   

  
	
  in the name of the registered holder

  	
   

  	
   

  
	
  of this Warrant Certificate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address to which Shares

  	
   

  	
   

  
	
  are to be mailed if other than to the

  	
   

  	
   

  
	
  address of the registered holder of

  	
   

  	
   

  
	
  this Warrant
  Certificate as shown on

  	
   

  	
   

  
	
  the books of the Warrant Agent:

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City and State) (Zip Code)

  
	
   

  	
   

  	
   

  
	
  Name in which Warrant Certificate

  	
   

  	
   

  
	
  evidencing unexercised Warrants, if any,

  	
   

  	
   

  
	
  are to be registered if other than in the

  	
   

  	
   

  
	
  name of the registered holder of this

  	
   

  	
   

  
	
  Warrant Certificate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address to which certificate representing

  	
   

  	
   

  
	
  unexercised Warrants, if any, are to be

  	
   

  	
   

  
	
  mailed if other than to the address of

  	
   

  	
   

  
	
  the registered holder of this Warrant

  	
   

  	
   

  
	
  Certificate as shown on the books of

  	
   

  	
   

  
	
  the Warrant Agent:

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City and State) (Zip Code)

  

 

	
   

  	
   

  	
  Dated:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature must conform in all
  respects to the name of the holder as specified on the face of this Warrant
  Certificate. If Shares, or a Warrant Certificate evidencing unexercised
  Warrants, are to be issued in a name other than that of the registered holder
  hereof or are to be delivered to an address other than the address of such
  holder as shown on the books of the Warrant Agent, the above signature must
  be guaranteed by an Eligible Guarantor Institution (as that term is defined
  in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).

  

SIGNATURE
GUARANTEE

	
  Name of Firm

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
  Area Code

  	
   

  
	
  And Number

  	
   

  	
   

  
				

 

5

 

	
  Authorized

  	
   

  	
   

  
	
   Signature

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  , 20

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

6

 

ASSIGNMENT

(FORM OF ASSIGNMENT TO BE EXECUTED IF
WARRANT HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

FOR VALUE RECEIVED,                                                    HEREBY
SELL(S), ASSIGN(S) AND TRANSFER(S) UNTO

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Please print name and address

  	
   

  	
  (Please insert social security or

  	
   

  
	
  including zip code of assignee)

  	
   

  	
  other identifying number of assignee)

  	
   

  

the rights represented by the within Warrant
Certificate and does hereby irrevocably constitute and appoint
                        
Attorney to transfer said Warrant Certificate on the books of the Warrant Agent
with full power of substitution in the premises.

	
  Dated:

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must conform in all
  respects to the name of the holder as specified on the face of this Warrant
  Certificate and must bear a signature guarantee by an Eligible Guarantor
  Institution (as that term is defined in Rule 17Ad-15 of the Securities
  Exchange Act of 1934, as amended).

  

 

SIGNATURE GUARANTEE

	
  Name of Firm

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Area Code

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and Number

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorized

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  , 

  	
  20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]