STOCKPURCHASEAGREEMENTdatedasof_________(M/D/Y)byandbetweenAAAandBBB,INC.TABLEOFCONTENTSARTICLEI.DEFINITIONS1.1DefinedTerms1.2CertaiUsageARTICLEII.PURCHASEANDSALEOFSHARES2.1PurchaseandSaleofShares2.2TotalConsiderationandTerms2.3IntercompanyCashAccounts2.4Post-ClosingAdjustment2.5NoncompetitionAgreement2.6DisclosureScheduleARTICLEIII.CLOSING3.1Closing3.2Seller'sClosingDeliveries3.3Purchaser'sClosing
Deliveries3.4AppointmentofDirectors3.5DirectorDischargefromPre-ClosingLiabilitiesARTICLEIV.REPRESENTATIONSANDWARRANTIESOFTHESELLER4.1Authority4.2OrganizationandStanding4.3Capitalization4.4BooksandRecords4.5AuditedFinancialStatements4.6UnauditedFinancialStatements4.7UndisclosedLiabilities4.8Licenses,PermitsandAuthorizations4.9LaborMatters4.10Contracts4.11Litigation4.12Taxes4.13AbsenceofCertainChanges,EventsorConditions4.14LegalCompliance4.15NoConflictwithOtherDocuments4.16GovernmentContracts;Backlog4.17TitletoPersonalProperties;AbsenceofEncumbrances,Etc4.18PensionandEmployeeBenefitPlans4.19Bank
Accounts4.20BrokersandAdvisors4.21EnvironmentalMatters4.22CustomersandSuppliers4.23Insurance4.24IntellectualProperty4.25RealProperty4.26EuropeanCommunityConcentrationThreshold4.27GovernmentalAuthorities;Consents4.28NoPendingTransactions4.29FullDisclosureARTICLEV.REPRESENTATIONSANDWARRANTIESOFPURCHASER5.1OrganizationofPurchaser5.2Authorization5.3NoConflictorViolation5.4GovernmentalAuthorities;Consents5.5Brokers'FeesARTICLEVI.COVENANTSOFSELLER6.1ConductofBusiness6.2ForeignSalesAgreementsFilings6.4NoSolicitations6.5NoticetoPurchaser6.6Consents;ReasonableEffort6.7
Inspections6.8FinancialStatements6.9Section338ElectionARTICLEVII.COVENANTSOFPURCHASER7.1AntitrustFilings7.2NoticetoSellerandtheCompany7.3StateDepartmentApprovalARTICLEVIII.COVENANTSOFSELLERANDPURCHASER8.1Confidentiality8.2CooperationandRecordsRetention8.3IndiaGuaranteeAgreementARTICLEIX.CONDITIONSTOOBLIGATIONS9.1ConditionstoObligationsofPurchaserandSeller9.2ConditionstoObligationsofPurchaser9.3ConditionstotheObligationsofSellerARTICLEX.TERMINATION10.1Termination10.2EffectofTermination10.3RiskofLossARTICLEXI.POSTCLOSINGOBLIGATIONS;SURVIVALOFREPRESENTATION11.1Indemnification11.2SurvivalofRepresentations11.3Rightsof
Set-Off11.4PensionRefund11.5MMMJointVenture11.6SkaanaReceivable11.7SellerGuaranteesARTICLEXII.MISCELLANEOUS12.1Waiver12.2Notices12.3Assignment12.4RightsofThirdParties12.5Reliance12.6TransferTaxes;TitleCosts;Expenses12.7Construction12.8Captions;Counterparts12.9EntireAgreement12.10Amendments12.11Severability12.12Publicity12.13Arbitration12.14Purchaser'sRemediesSTOCKPURCHASEAGREEMENTThisSTOCKPURCHASEAGREEMENT(this"Agreement")isenteredintobyandbetweenAAA,registrationnumber_________,alimitedcompanyincorporatedunderthelawsofSweden("Celsius"orthe"Seller")andBBB,Inc.,a_________(STATE)corporation("Purchaser").RECITALS:WHEREAS,Sellerownsofrecordandbeneficially_________shares(the"Shares")ofthecapitalstockofCCCAB,registrationnumber_________,alimitedcompanyincorporatedunderthelaws
ofSweden("CCC"orthe"Company"),whichconstitutesalloftheissuedandoutstandingcapitalstockofCCC(the"Shares");andWHEREAS,uponthetermsandsubjecttotheconditionssetforthherein,SellerdesirestoselltoPurchaser,andPurchaserdesirestopurchasefromSellertheShares,freeandclearofanyandallEncumbrances.AGREEMENT:NOWTHEREFORE,inconsiderationofthepremisesandthemutualcovenantsandagreementscontainedherein,andothergoodandvaluableconsideration,thereceiptandadequacyofwhichareherebyacknowledged,thepartiesheretoagreeasfollows:ARTICLEI.DEFINITIONS.1.1DefinedTerms.Asusedherein,thefollowingtermsshallhavethefollowingmeanings:"AccountingPrinciples"shallmeantheaccountingprinciplesusedbytheCompanyanditsconsolidatedSubsidiariesinthepreparationoftheirhistoricalfinancialstatementsincludingthe_________(M/D)FinancialStatements,whichaccountingprinciplesconformtotherequirementsofGAAP,consistentlyapplied."Action"shallmeananyclaim,action,suit,arbitrationorproceedingbyorbeforeanyGovernmentalAuthority,arbitratorormediator."Affiliate"shallmeanwithrespecttoanyspecifiedPerson,anyotherPersonthat,directlyorindirectly,controls,iscontrolledby,orisundercommoncontrolwith,suchPerson,throughoneormoreintermediariesorotherwise."Agreement"shallhavethemeaningsetforthinthePreamble."AncillaryAgreements"shallmeantheEscrowAgreement,EEEManufacturingAgreement,theIntellectualPropertyAgreements,theTransitionServicesAgreement,theJJJSupplyAgreement,theEEEDevelopmentAgreement,DDDManufacturingAgreement,theDDDDevelopmentAgreement,theHHHSupplyAgreement,theGGGProvingFacilitiesAgreement,UnderstandingRegardingLeaseAgreement,theCTE/IIIProximityFuse/ProximityFuseProgrammerTransferAgreement,theGGGStockholdersAgreement,theNNNSupplyStockholdersAgreement,theIndiaGuaranteeAgreementandtheSAABGuaranteeAgreement."AntitrustLaws"meansanyantitrustorcompetitionlawspromulgatedbytheUnitedStates,Sweden,theEuropeanUnionoranyotherGovernmentalAuthoritytowhosejurisdictiontheCompanymaybesubject."Assets"shallhavethemeaningsetforthinSection10.3."AuditedFinancialStatements"shallhavethemeaningsetforthinSection
4.5."Adjustments"shallhavethemeaningsetforthinSection4.6."BooksandRecords"shallmeanallofthefollowingasmadeandkeptbytheCompanyoritsSubsidiaries(a)allrecordsandlistspertainingtotheBusiness,assets,liabilities,customers,suppliersorPersonneloftheCompany,(b)allproduct,businessandmarketingplansoftheCompany,(c)allbooks,ledgers,files,reports,plans,drawingsandoperatingrecordsofeverykindmaintainedbytheCompanyand(d)allstockbooks,stockledgersandcorporateminutesoftheCompany."GGGStockholdersAgreement"shallmeanthatcertainStockholdersAgreement,datedasof_________(M/D/Y),byandamongCCC,DDDAB,EEEABandFFFAB."HHHStockholdersAgreement"shallmeanthatcertainStockholdersAgreement,datedasof_________(M/D/Y),byandamongCCC,DDDABandEEEAB."BusinessDay"shallmeananydaythatisnotaSaturday,Sundayoranyotherdayonwhichbanksarerequiredorauthorizedbylawtobeclosedin_________."DDDDevelopmentAgreement"shallmeanthatcertainDevelopmentAgreement,datedasof_________(M/D/Y),byandbetweenCCCandDDDAB."DDDManufacturingAgreement"shallmeanthatcertainManufacturingAgreement,datedasof_________(M/D/Y),byandbetweenCCCandDDDAB."EEEDevelopmentAgreement"shallmeanthatcertainDevelopmentAgreement,datedasof_________(M/D/Y),byandbetweenCCCandEEEAB."EEEManufacturingAgreement"shallmeanthatcertainManufacturingAgreement,datedasof_________(M/D/Y),byandbetweenCCCandEEEAB."HHHSupplyAgreement"shallmeanthatcertainSupplyAgreement,datedasof_________(M/D/Y),byandbetweenCCCandHHHAB."GGGProvingFacilitiesAgreement"shallmeanthatcertainProvingFacilityAgreement,datedasof_________(M/D/Y),byandbetweenCCCandGGGAB."CCC"shallhavethemeaningsetforthinthePreamble."CCCCapitalStock"shallhavethemeaningsetforthinSection4.3(a)."Celsius"shallhavethemeaningsetforthinthePreamble."Claims"shallhavethemeaningsetforthinSection
11.1(a)."Closing"shallhavethemeaningsetforthinSection3.1."ClosingBalanceSheet"shallmeantheauditedconsolidatedbalancesheetofCCCanditsconsolidatedSubsidiariesasoftheClosingDate."ClosingCashConsideration"shallhavethemeaningspecifiedinSection2.2."ClosingDate"shallhavethemeaningsetforthinSection3.1."ClosingNetAssets"shallhavethemeaningsetforthinSection2.4(a)."Company"shallhavethemeaningsetforthinthePreamble."Company'sBusiness"shallhavethemeaningsetforthinSection2.5(g)."Contracts"shallmean,collectively,allagreements,contracts,subcontracts,leases,purchaseorders,memorandaofunderstandingandotherbindingcontractualcommitments(whetherwrittenororal)towhichtheCompanyisapartyorbywhichanyofitsAssetsmaybebound,includingthosecontractslistedonSchedule4.10."CTE/IIIProximityFuse/ProximityFuseProgrammerTransferAgreement"shallmeanthatcertainTransferAgreement,datedasof_________(M/D/Y),byandbetweenCCCandCTEandIII."III"shallmeanIIIAB,registrationnumber_________,a_________(COUNTRY)limitedcompany."CurrentProducts"shallhavethemeaningsetforthinSection2.5(a)(iii)"JJJ"shallmeanJJJAB,registrationnumber_________,a_________(COUNTRY)limitedcompany."JJJSupplyAgreement"shallmeanthatcertainIndiaSupplyAgreement,datedasof_________(M/D/Y)byandbetweenJJJandtheCompany."_________(M/D)BalanceSheet"shallmeantheauditedconsolidatedbalancesheetoftheCompanyanditsconsolidatedSubsidiariesasof_________(M/D/Y)."_________(M/D)FinancialStatements"shallmeanthe_________(M/D)BalanceSheetandtherelatedauditedstatementsofoperations,changesinshareholders'equityandcashflowfortheoneyearperiodendedon_________(M/D/Y)."DisclosureSchedule"shallmeantheschedulestothis
Agreement."Earn-Out"shallhavethemeaningsetforthinSection2.2(b)."Earn-OutPeriod"shallhavethemeaningsetforthinSection2.2(b)."Earn-OutLiquidationAmount"shallhavethemeaningsetforthinSection2.2(c)."Earn-OutThresholdAmount"shallhavethemeaningsetforthinSection2.2(b)."Encumbrance"shallmeananymortgage,claim,charge,lien,easement,right-of-way,covenant,condition,option,pledge,call,commitment,securityinterest,conditionalsalesagreement,titleretentionagreement,leaseandanyotherimperfectionoftitleorrestrictionofanykindandnature,choateorinchoate."EmploymentLaws"shallhavethemeaningsetforthinSection4.18(a)."EnvironmentalLaws"shallmeananyandallapplicablelawsregulating,relatingtoorimposingliabilityorstandardsofconductconcerningprotectionoftheenvironmentorofhumanhealthrelatingtoexposureofanykindofHazardousMaterials,ashasbeen,oris,asofthedatehereof,ineffect."EscrowAccount"shallhavethemeaningsetforthinSection11.7(b)."EscrowAgent"shallhavethemeaningsetforthinSection11.7(b)."EscrowAgreement"shallhavethemeaningsetforthinSection11.7(b)."ExcludedProducts"shallhavethemeaningsetforthinSection2.5(a)(ii)"FinancialObligations"shallhavethemeaningsetforthinSection11.7(b)."Fixtures"shallmeananyfixtures,machinery,installationsandbuildingequipmentlocatedatoronanyRealProperty."KKK"shallmeantheKKK."LLL"shallmeanLLL."FSAs"shallhavethemeaningsetforthinSection4.16(d)."GAAP"shallmean_________(COUNTRY)generallyacceptedaccountingprinciples,consistentlyapplied."GovernmentalAuthority"shallmeananynational,multi-national,municipalorlocalgovernment(oranypoliticalsubdivisionofanyoftheforegoing),includinganygovernmentalauthority,
regulatoryoradministrativeagency,governmentalcommission,department,board,bureau,court,tribunal,arbitratororarbitralbody."GovernmentContract"shallmeananyContractinwhichtheultimatecontractingpartyisaGovernmentalAuthoritythatinvolvestheperformanceofservicesorthedeliveryofgoodsbytheCompany."GovernmentOrder"shallmeananyorder,writ,rule,judgment,injunction,decree,stipulation,determinationorawardenteredbyorwithanyGovernmentalAuthority."MMMJointVenture"shallmeanMMMAB,registrationnumber_________,a_________(COUNTRY)limitedcompany."HazardousMaterials"shallmeananyhazardoussubstance,gasolineorpetroleum(includingcrudeoiloranyfractionthereof)orpetroleumproducts,polychlorinatedbiphenyls,ureaformaldehydeinsulation,asbestosorasbestos-containingmaterials,pollutants,contaminants,radioactivity,andanyothermaterialsorsubstancesofanykind,whethersolid,liquidorgas,andwhetherornotanysuchsubstanceisdefinedashazardousunderanyEnvironmentalLaw,thatisregulatedpursuanttoanyEnvironmentalLaworthatcouldgiverisetoLiabilityunderanyEnvironmentallaw."Improvements"shallmeananyright,titleorinterestinanybuildings,facilities,otherstructuresandimprovements,buildingsystemsandFixtures."Indebtedness"ofanyPersonshallmeanallobligationsofsuchPerson(a)forborrowedmoney,(b)evidencedbynotes,bonds,debenturesorsimilarinstruments,(c)forthedeferredpurchasepriceofgoodsorservices(otherthantradepayablesintheordinarycourseofbusiness),(d)undercapitalleases,or(e)inthenatureofguaranteesoftheobligationsdescribedinclauses(a)through(d)aboveofanyotherPerson."IndemnifiedParty"shallhavethemeaningsetforthinSection11.1(c)."Indemnitor"shallhavethemeaningsetforthinSection11.1(c)."IndependentAccountant"shallhavethemeaningsetforthinSection2.4(c)."IndiaGuaranteeAgreement"shallmeanthatcertainAgreementtobeenteredintoattheClosingbyandamongSeller,theCompanyandPurchaserinaccordancewithSection8.3."InsurancePolicies"shallhavethemeaningsetforthinSection4.23."IntellectualProperty"shallmeaneachmaterialpatent,registeredandunregisteredtrademark,servicemark,tradedress,logo,tradename,copyrightandregistrationorapplicationforanyoftheforegoingtogetherwithallmaterialknow-how,tradesecrets,confidentialinformation,software,
technicalinformation,processtechnology,plans,drawingsandblueprintsownedbytheCompanyoritsSubsidiaries,includinganyIntellectualPropertyownedbySellerthatrelatestothebusinessoroperationsoftheCompanyoritsSubsidiariesandwhichisusedbytheCompanyortheSubsidiaries."IntellectualPropertyAgreements"shallmean,collectively,eachof(a)thatcertainAgreementRegardingtheSaleofPatentsandPatentApplications,datedasof_________(M,D,Y)byandbetweenNNNABandCCC;(b)thatcertainPatentLicenseAgreement,datedasof_________(M/D/Y),byandamongNNNAB,EEEABandCCC;and(c)thatcertainPatentLicenseAgreement,datedasof_________(M,D,Y),byandbetweenCCCandSAABAB."Law"shallmeanalllaws,statutes,rules,regulations,ordinancesandotherpronouncementshavingtheeffectoflaw(includingcommonlaw)ofanyGovernmentalAuthority."Liabilities"shallmeananydirectorindirectliability,Indebtedness,obligation,commitment,expense,claim,deficiency,guarantyorendorsementoforbyanyPersonofanytype,whetheraccrued,absolute,contingent,matured,unmaturedorothertoberecordedinaccordancewithGAAPandtheAccountingPrinciples."LossContract"shallmeananyMaterialContractforwhichtheCompanyhasaccruedalossonitsfinancialstatementsorwhichtheCompanyreasonablyexpects,basedontheCompany'sknowledgeasofthedatehereof,toresultinaloss."MachineryandEquipment"shallhavethemeaningsetforthinSection4.17."MaterialAdverseEffect"shallmeanamaterialadverseeffectonthebusiness,assets,liabilities,condition(financialorotherwise),resultsofoperationsorprospectsoftheCompanyanditsSubsidiaries,takenasawhole."MaterialContract"shallhavethemeaningsetforthinSection4.10."MinoritySubsidiaries"shallmeanHHHABandNNNTestCentreAB."NetAssets"shallhavethemeaningsetforthinSection2.4(a)."NetOrderIntake"shallhavethemeaningsetforthinSection2.2(c)."PaymentDate"shallhavethemeaningsetforthinSection2.2(c)."PensionSchemes"shallhavethemeaningspecifiedinSection4.18(b)."Permits"shallhavethemeaningsetforthinSection4.8."Person"shallmeananyindividual,corporation,partnership,limitedliabilitycompany,joint
venture,association,joint-stockcompany,trust,unincorporatedorganization,laborunionorGovernmentalAuthority."Personnel"shallhavethemeaningsetforthinSection4.13(b)."Post-ClosingAdjustment"shallhavethemeaningsetforthinSection2.4(e)."Post-SigningFinancialObligations"shallhavethemeaningsetforthinSection11.7(b)."Pre-ClosingEnvironmentalMatter"shallmeananyenvironmentalClaimoranynoncompliancewithanyEnvironmentalLawsonthepartofSeller,theCompany,itsSubsidiariesoranyoftheirrespectiveAffiliatesorpredecessorsininterestoccurringorinexistenceon,orarisingfromactionsoccurringorconditionsexistingpriorto,theClosingDate."PrimeRate"shallhavethemeaningsetforthinSection11.1(a)."Purchaser"shallhavethemeaningsetforthinthePreamble."PurchaserIndemnitees"shallhavethemeaningsetforthinSection11.1(a)."QualifiedOrder"shallhavethemeaningsetforthinSection2.2(c)."RealEstateRecords"shallmean,totheextentinthepossessionorcontrolofSellerortheCompany,therealestaterecords,files,books,blueprints,plans(as-builtandotherwise),surveys,specifications,designs,drawings,andotherdataassociatedwiththeRealProperty."RealProperty"shallhavethemeaningsetforthinSection4.25(a)."RealPropertyLease"shallhavethemeaningsetforthinSection4.25(a)."RestrictedParties"shallhavethemeaningsetforthinSection2.5(a)."SAABGuaranteeAgreement"shallmeanthatcertainGuarantyAgreementdatedasof_________(M,D,Y)byandamongSeller,SAABABandPurchaser."Seller"shallhavethemeaningsetforthinthePreamble."SellerIndemnitees"shallhavethemeaningsetforthinSection11.1(b)."Shares"shallhavethemeaningsetforthintheRecitals."OOO"shallmeanOOO."Subsidiary"shallmeananycorporation,partnership,limitedliabilitycompany,jointventureor
otherentityinwhichtheCompany,directlyorindirectly,holdsfiftypercent(50%)ormoreofthevotingpowerofallequitysecuritiesorotherownershipinterestsofsuchentity,oroverwhichtheCompanyeitherdirectlyorindirectlyexercisesactualcontrol.ForpurposesofthisAgreement,theSubsidiariesoftheCompanyshallincludetheMMMJointVentureandtheMinoritySubsidiaries,butshallexcludeJJJandIII."TargetNetAssets"shallmean_________(_________(NUMBER))SEK."Tax"or"Taxes"shallmeanalltaxes,estimatedtaxes,withholdingtaxes,assessments,levies,imposts,feesandothercharges,including,withoutlimitation,anyinterest,penalties,additionstotaxoradditionalamountsthatmaybecomepayableinrespectthereof,imposedbyanyGovernmentalAuthority,whichtaxesshallinclude,withoutlimitation,allincometaxes,payrollandemployeewithholdingtaxes,unemploymentinsurance,socialsecurity,salesandusetaxes,value-addedtaxes,excisetaxes,franchisetaxes,grossreceiptstaxes,occupationtaxes,realandpersonalpropertytaxes,stamptaxes,transfertaxes,workers'compensationandotherobligationsofthesameorofasimilarnature."TaxBenefit"shallhavethemeaningsetforthinSection11.1(d)(viii)."TaxReturns"shallmeanallreports,returns,declarations,claimsforrefundorstatementsofanykindornaturerelatingtoTaxes,andanyscheduleorattachmenttheretoandanyamendmentthereof."TotalConsideration"shallhavethemeaningsetforthinSection2.2."Transactions"shallmeanthetransactionscontemplatedbythisAgreementandtheAncillaryAgreements."TransitionServicesAgreement"shallmeanthatcertainTransitionServicesAgreementbyandbetweenSellerandtheCompanydatedasof_________(M/D/Y),togetherwiththeaddendathereto."UnderstandingRegardingLeaseAgreement"shallmeanthatcertainagreementbyandbetweenBBB,Inc.andAAA,datedasofthedatehereof,wherebyAAAagreestocauseitswholly-ownedSubsidiarytoextendthegroundleasewithrespecttocertainrealpropertyleasedbyNNNTestCentreAB."VAT"shallmeanValueAddedTaxasdefinedintheValueAddedTaxAct,_________:_________.1.2CertainUsage.Asusedhereinthefollowingadditionaltermsshallhavethefollowingmeaning:Theterm"including"asusedhereinshallbereadtomean"including,withoutlimitation."Theterm"knowledge"asusedherein,shallmeanwithrespecttoanyperson,thosefactsor
circumstancesactuallyknownbysuchperson.ForpurposesofthisAgreement,theknowledgeofPerOveMorberg,JohnErshammar,MagnusIngessenandHakanAhsberg,shallbeimputedtoSellerandtheCompany,andtheknowledgeofFrancisFinelli,DavidWallestadandKathrynJohnbullshallbeimputedtoPurchaser.ARTICLEII.PURCHASEANDSALEOFSHARES.2.1PurchaseandSaleofShares.Uponthetermsandsubjecttotheconditionscontainedherein,PurchaserwillacquirefromSeller,andSellerwillselltoPurchaser,theSharesfreeandclearofallEncumbrances.2.2TotalConsiderationandTerms.TheaggregateconsiderationfortheSharestobepurchasedbyPurchaserhereunder(the"TotalConsideration")shall,subjecttoadjustmentasprovidedinSection2.4,consistof(i)_________(_________(NUMBER))SEK(the"ClosingCashConsideration"),and(ii)theEarn-Out.TheTotalConsiderationshallbepayableasfollows:(a)OntheClosingDate,PurchasershallpaytoSellerbywiretransferofimmediatelyavailablefundstheClosingCashConsideration.(b)Purchasershall,orshallcausetheCompanyto,paytoSelleranearn-outroyalty(the"Earn-Out")withrespecttoeachcalendaryearfromtheClosingDateto_________(M/D/Y)(the"Earn-OutPeriod")equivalenttotwopercent(_________%)ofanamountequalto(i)theNetOrderIntakeduringsuchcalendaryear(orwithrespectto_________(year),suchportionofthecalendaryearfromandaftertheClosing)minus(ii)_________(_________(number))SEK(ortheproratedportionthereoffromandaftertheClosingduringthe_________(year)calendaryear)(the"Earn-OutThresholdAmount").TheEarn-OutshallbecalculatedandpaidinaccordancewithSection2.2(c)below.(c)ForpurposesofthisAgreement,"NetOrderIntake"shallmean,withoutduplication,theCompany'sandPurchaser's(oranyoftheirrespectiveSubsidiaries')aggregaterevenuesactuallycollectedfrombindingordersplacedduringtheEarn-OutPeriod(each,a"QualifiedOrder")forproductsorservicessoldbytheCompany,PurchaseroranyoftheirrespectiveSubsidiariestothegovernmentofIndiapursuantto(i)theSupplyContractand/orLicenseAgreementsbetweenthepresidentofIndiaandABNNNasof_________(M/Y),(ii)anysubsequentagreementororderenteredintoforthepurchaseofanyproductsorsparepartsfortheFH77BofthetypewhichmaybepurchasedpursuanttothetermsoftheSupplyContractand/orLicenseAgreementdescribedinclause(i),or(iii)anyagreementororderforthepurchaseandsaleofthehowitzerupgradeknownastheFH77BD/L45mkI(Indien)(whethersuchrevenuesarecollectedduringtheEarn-OutPeriodoratanytimethereafter);provided,however,thatNetOrderIntakeshallnotincludeanyrevenuesearnedbytheCompanyoritsSubsidiariespursuanttotheIndiaSupplyAgreement.AportionoftheEarn-OutshallbepaideachJanuary31st(eacha"PaymentDate")bywiretransferofimmediatelyavailablefundstoanaccountdesignatedbySellertoPurchaserandtheCompanyinwritinguntilallamountspayableasaresultoftheEarn-Outhavebeenpaidinfull.PriortoeachPaymentDate,theCompanyshalldeliverawrittennoticetotheSellersettingforththeQualifiedOrderswhichaccruedduringthepreviouscalendaryear,therevenuescollectedfromQualifiedOrdersduringthepreviouscalendaryearandacalculationoftheamountpayabletoSelleronsuchPaymentDate(calculatedinaccordancewiththenextsentence).TheamountpayableoneachsuchPaymentDateshallbeequalto(A)_________%of(x)theaggregateamountofrevenues
fromQualifiedOrdersactuallycollectedbytheCompanyduringallcalendaryearsduringtheEarn-OutPeriodprecedingsuchPaymentDate,minus(y)theaggregateEarn-OutThresholdAmountforallcalendaryearsduringtheEarn-OutPeriodprecedingsuchPaymentDate,minus(B)theaggregateamountpaidbyPurchaserortheCompanytoSellerpursuanttothisSection2.2(c)priortosuchPaymentDate;provided,however,intheeventsuchamountisanegativenumber,theamountpayablebyPurchaserortheCompanytoSelleronsuchPaymentDateshallbezeroandSellershallhavenoobligationtopayPurchaserortheCompanyanyamount.OnorpriortoJanuary31,2007,Purchasershall,orshallcausetheCompanyto,paytoSelleranamount(the"Earn-OutLiquidationAmount")equaltotheEarn-OutpayablehereunderwithrespecttoallrevenuesfromQualifiedOrdersthathavenotbeencollectedpriorto_________(M/D/Y),butthatarereasonablylikelytobecollectedatanytimethereafter.IntheeventthatanysuchQualifiedOrdersarethereaftercancelledorfactsandcircumstancesarisethatmakeitreasonablylikelythattherevenuestherefromwillnotberealizedorrealizablebytheCompany,theCompanyshallnotifytheSellerinwritingofsuchfactsorcircumstancesandtheamountoftherevenueswhichwillnotberealizedorrealizable,andtheSellershall,within10BusinessDaysafterreceivingsuchwrittennotice,refundtheportionofEarn-OutLiquidationAmountpaidbytheCompanywithrespecttosuchrevenues.(d)FollowingeachPaymentDate,theCompanyshallprovideSeller'sindependentaccountantsreasonableaccesstothemanagementoftheCompanyandthefinancialrecordsoftheCompanyanditsSubsidiariesforthepriorcalendaryearforthesolepurposeofverifyingtheamountofQualifiedOrdersreceivedbytheCompanyanditsSubsidiaries,theamountscollectedwithrespecttoQualifiedOrdersduringsuchperiodandthecalculationoftheEarn-Outpayablewithrespecttosuchperiod.Itshallbeaconditiontotheprovisionofanyinformationpursuanttothissubparagraph(d)thatSelleranditsindependentauditorsignaconfidentialityagreementreasonablysatisfactorytotheCompanywithrespecttoanyinformationsoprovided.2.3IntercompanyCashAccounts.PriortotheClosing,SellershallcauseanyandallamountsofcashorcashequivalentsoftheCompanyandanyofitsSubsidiariesheldbySelleroranAffiliateofSeller,tobetransferredbySellerorSeller'sAffiliate(s)toanaccountoraccountsestablishedsolelyfortheCompanyoritsSubsidiaries(asthecasemaybe).2.4Post-ClosingAdjustment.(a)Within_________(day)followingtheClosingDate,SellershallprepareanddelivertoPurchaser(i)theClosingBalanceSheet(togetherwiththeauditreportthereon),and(ii)acalculationoftheNetAssetsoftheCompanyasoftheClosingDateassetforthontheClosingBalanceSheet(the"ClosingNetAssets").TheClosingBalanceSheetshallbepreparedinaccordancewithGAAP,usingtheAccountingPrinciplesusedinthepreparationofthe_________(M/D)FinancialStatementsoftheCompanybaseduponfinancialinformationprovidedbytheCompanyanditsSubsidiariesconsistentwithpastpractices.NotwithstandingtherequirementsofGAAPorthepastpracticesofSellerortheCompany,thepartiesagreethattheClosingBalanceSheetwillreflectnoupwardordownwardadjustmentsinreservesfromamountscontainedintheDecember31BalanceSheetexcepttotheextentsuchadjustmentsresultfromchangesinfactsorcircumstancesoccurringafterDecember31,1999orincreasesinprofitoraccrualratesoncontractsinprocessfromtheratesreflectedontheDecember31BalanceSheet.DuringthepreparationoftheClosingBalanceSheetbySellerandtheperiodofanydisputeprovidedforinSection2.4(c),PurchasershallcausetheCompany,itsSubsidiariesandtheir
accountantstoprovidesuchreasonableaccesstotheCompany,itsBooksandRecords(includingworkpapers)andPersonnelasmaybenecessary,topermitSellerandPricewaterhouseCooperstoprepareandaudittheClosingBalanceSheetandtoinvestigatethebasisofanysuchdispute."NetAssets"asofanydateshallmean(x)theassetsoftheCompanyanditsconsolidatedSubsidiariesasofsuchdate,minus(y)theLiabilitiesoftheCompanyanditsconsolidatedSubsidiariesasofsuchdate.(b)PurchasermaydisputeanyamountsreflectedontheClosingBalanceSheetorSeller'scalculationoftheClosingNetAssets,butonlyonthebasisthattheamountsreflectedontheClosingBalanceSheetwerenotrecordedinaccordancewithGAAPorareinconsistentwiththeAccountingPrinciplesusedinthepreparationofthe_________(M/D)FinancialStatementsorwereotherwisenotpreparedinaccordancewithSection2.4(a).PurchasershallnotifySellerinwritingofeachdisputeditem,specifyingtheamountofeachitemindisputeandsettingforthinreasonabledetailthebasisforeachitemindispute,within_________(day)ofPurchaser'sreceiptoftheClosingBalanceSheet.IfPurchaserhasnotnotifiedSellerofanysuchdisputewithinsuch_________(day)period,thentheClosingBalanceSheetshallbedeemedtobefinalandconclusiveonthepartieshereto,andanyamountpayableunderSection2.4(d)shallbepaidbyPurchaserorSeller,asthecasemaybeinaccordancewithSection2.4(d).(c)Intheeventofsuchadispute,PurchaserandSellershallnegotiateingoodfaithtoreconciletheirdifferences.Ifsuchdisputehasnotbeenresolvedwithin_________(day)afterSeller'sreceiptofnoticeofsuchdispute(orsuchlongerperiodastheymaymutuallyagree),Sellerand/orPurchasershallsubmittheitem(s)remainingindisputetoaninternationallyrecognizedindependentaccountantselectedbymutualagreementofPurchaserandSelleror,infailureofsuchagreement,anindependent"BigFive"accountingfirmselectedbythechairmanoftheLondonCourtofInternationalArbitration(the"IndependentAccountant"),whichshall,aspromptlyaspracticalbutinnoeventlaterthan_________(day)aftersuchsubmission,determineandreportinwritinguponsuchremainingdisputeditem(s)basedsolelyuponthewrittensubmissionsoftheparties.Suchdeterminationandreportshallbefinal,bindingandconclusiveonthepartieshereto.ThefeesanddisbursementsoftheIndependentAccountantshallbepaidbyPurchaserandbySellerinproportiontotheamounttheSellerorPurchaserhasputindisputeonwhichtheIndependentAccountanthasfoundinfavorofsuchparty.(d)Onthedatewhichisthree(3)BusinessDaysafterthefinaldeterminationoftheClosingNetAssetsinaccordancewiththisSection2.4,SellerorPurchaser,asthecasemaybe,shallmakeanypaymentdue,inaccordancewiththetermsofthissubsection(d).IfthePost-ClosingAdjustment(asdefinedbelow)isanegativenumber,SellershallpaytoPurchaserinimmediatelyavailablefundsanamountequaltotheabsolutevalueofthePostClosingAdjustment.IfthePost-ClosingAdjustmentisapositivenumber,Purchasershallpay(orshallcausetheCompanytopay)toSellerinimmediatelyavailablefundsanamountequaltothePost-ClosingAdjustment.IntheeventSellerfailstomakeanypaymentdueandowingtoPurchaserhereunder,PurchasershallhavetherightbutnottheobligationtooffsetsuchamountsagainstanyamountsowingtoSellerfromtheCompanypursuanttoSection2.4(c).PurchaserandSelleragreethattheTotalConsiderationshallbedeemedtobeincreasedbyallpaymentsmadebyPurchasertoSellerandtheTotalConsiderationshallbedeemedtobedecreasedbyallpaymentsmadebySellertoPurchaser.(e)The"Post-ClosingAdjustment",whichmaybepositiveornegative,shallequaltheClosing
NetAssetslesstheTargetNetAssets.2.5NoncompetitionAgreement.(a)Selleragreesthat,foraperiodoffive(5)yearsfollowingtheClosingDate,itwillnot,anditwillcauseeachofitsAffiliateslistedonSchedule2.5(a)(collectively,the"RestrictedParties")notto,engage,directlyorindirectly,anywhereintheworldinanylineofbusinesswithinthe"Company'sBusiness"(asdefinedinSection2.5(g)below),ortoacquireanyotherbusinessentitywherethemajorreasonfortheacquisitionistocompetewiththeCompany;providedhowever,thattheRestrictedPartiesmay:(i)manufacture,marketandselltheStrixmunitionsformortarswhendoneincooperationwithCCCinaccordancewiththeSAAB/CCCCooperationAgreementregardingStrix;(ii)manufacture,retrofit,install,repair,overhaul,service,marketandsell"ExcludedProducts"(asdefinedherein).InnoeventshallExcludedProductsbeinterpretedtomeanacompletevehicularsystem.ThepartiesrecognizeandagreethatallgroundvehicleplatformsareexclusivelywithintheCompany'sBusinessandthatthisclauseshallnotbedeemedtoincludetherightfortheRestrictedPartiestomanufacture,retrofit,install,repair,overhaul,service,marketandsellGroundCombatorSupportVehicleSystems.Theterm"ExcludedProducts"shallmeanthefollowing:(A)LVSSystem;(B)Laserrangefinder;(C)IRcameras;(D)DIRSIsystem;(E)ARTE725systemanditssucceedingsystem;(F)ELMAgrenadesystemwithitssuccessortheASWAlectoSystems;(G)Deceptiontorpedoes;(H)Firecontrolsystemfor9LVfamilyofnavalguns;(I)Sightsandfirecontrolsystemsfor(1)combatvehicles(2)mainbattletanksand(3)antiaircraftgunsfromcaliber20mmandabove,includingvehiclemountedaswellasstationaryapplications;(J)ArmyC4I-systemsonalllevels;(K)Electronicsystemsfordetectionandclearanceoflandmines;(L)Integrateddefensiveaidsystemsforvehicles;(M)Electronicsubsystemsandcomponentsforvehiclesystems;(N)SKERSystemanditssucceedingsystem;and(O)RIA;(iii)manufacture,marketandsellanyproductsthat:(A)areinproductionbytheRestrictedPartiesasoftheClosingDate;and(B)donotcompetewiththeCompany'sBusiness,asoftheClosingDate(each,a"CurrentProduct"andcollectively,the"CurrentProducts").(b)Upondetermination,throughmutualagreementorbyarbitrationinaccordancewiththisAgreement,thattheRestrictedPartiesare,directlyorindirectly,competingwiththeCompany'sBusinessbydeveloping,manufacturing,marketing,sellingorservicinganyproductsthatwerenot(i)CurrentProductsoftheRestrictedPartiesasoftheClosingDate,(ii)ExcludedProducts,or(iii)specificallyaddressedelsewhereinthisSection2.5,theRestrictedPartiesagreetoceaseimmediatelyallactivitiesrelatedtosuchcompetingproducts.(c)Sellershallbeentitledtoengageinthedevelopment,manufacture,retrofit,installation,repair,
overhaul,engineering,design,service,marketingandsaleofanycomponentpartorsubsystemthatmayfallwithintheCompany'sBusiness,butthatissubstantiallythesameasclassesofproductsorservicesthatprimarilyaresoldcommerciallybySellerfornon-militaryuses.(d)IfatanytimetheCompanyoritssuccessor(s)shoulddecidethatitnolongerdesirestopursueintelligentandbrilliantammunition,theRestrictedPartiesortheirsuccessors(s)willbegiventherightoffirstrefusaltoacquireaccessto,andpermissiontousesolelyforsuchpurpose,theIntellectualPropertyoftheCompanyrelatedtointelligentandbrilliantammunition.Similarly,ifatsomepointtheRestrictedPartiesortheirsuccessor(s)shoulddecidethattheynolongerdesiretopursueintelligentandbrilliantammunition,theCompanyoritssuccessor(s)willbegiventherightoffirstrefusaltoacquireaccessto,andpermissiontousesolelyforsuchpurpose,theIntellectualPropertyofEEEABoritssuccessorsrelatedtointelligentandbrilliantammunition.(e)IftheCompanydecidesnottoofferitsproductsorcapabilitiesinresponsetoaspecificrequest,withintheCompany'sBusiness,fromany_________(COUNTRY)GovernmentalAuthority,theCompanywillenterintonegotiationswiththeRestrictedPartiestoseekafair,reasonableandjointapproachtothesatisfactionofsaidrequest,failingwhich,eitherpartymayrequestthatthepartiesarbitrate,inaccordancewiththisAgreement.Thisobligationshallapply"mutatismutandis"forspecificopportunities,wherebytheRestrictedPartiesdecidenottooffertheirproductsorcapabilityinresponsetoaspecificrequestofany_________(COUNTRY)GovernmentalAuthority.(f)Sellermaycontinuetodevelop,marketandsellman-portableunguidedrocketsystems,includingtheCarlGustafSystem,theAT4System,theMBTLAWSystem,andtheirsubsystems,toincludewarheadsandammunitionandfuturederivativesthereof.(g)ForpurposesofthisAgreement,the"Company'sBusiness"shallbetoengageinthedevelopment,manufacture,retrofit,installation,overhaul,repair,engineering,design,service,saleandmarketingof:(i)gunsandunguidedrocketsystems,including(A)carriers,(B)launcherswithchemical,electrothermaland/orelectromagneticlaunchingand(C)integratedC4Isystems,includingguncontrol,firecontrol,ballisticcomputersandammunitionprogrammingsystemsfortheaforesaidsystems;(ii)ammunitionforgunsandunguidedrocketsystemsincluding(A)chemical,electrothermalandelectromagneticpropulsion,(B)kinetic,chemicaland/orelectromagneticwarheads,(C)sensorfuzedsub-munitions,(D)sensors,(E)fuzes,(F)trajectorycontrolsystems,and(G)intelligentandbrilliantammunitionfortheaforementionedweaponsystems,includingwithoutlimitation,BONUS,TCM,and3P;(iii)groundcombatvehiclesystemsandsupportvehiclesystems,toincludeallsubsystems,formilitaryandotherapplications;(iv)LandmineClearanceEquipment;(v)warheadswithgradedeffectforgunsandunguidedrocketsystems;(vi)ABRAHAMTechnology(ABRAHAMTechnologyiscurrentlyfocusedonthedevelopmentofananti-aircraftdefensesystemintendedtomeetthethreatfromprecisionguidedweaponssuchascruisemissilesandattackmissiles.Thebasisofthetechnologyisalongrangelasersensorcoupledwithawarheadwithdirectedeffect.Thewarheadhasanumberofpreprogrammableand/ortrajectoryadaptablelethalitymodessuchassplinters,shapechargeandelectromagneticpulse.ABRAHAM,insystemform,maybedeployedonorclosetoaprotectedobject.The
platformcouldbeagroundvehicle,anaircraft,aship,acontainermoduleorsomeotherplatform.ABRAHAMtechnologywillbeappliedinmanyotherareasasprotectionsystemsofdifferentkinds.);(vii)supportandtestequipment,trainingequipment,supportsystems,maintenance,repair,serviceandassistance,facilities,supplysupport,PHS&Tanddocumentationfortheaforementionedbusinessesandproducts;and(viii)otherapplications,inadditiontomilitaryapplicationsfortheabovelistedproductsandservices.(h)Ifanycourtofcompetentjurisdictionshallfinallyholdthatthetime,territoryoranyotherprovisionsetforthinthisSection2.5constitutesanunreasonablerestriction,suchprovisionshallnotberenderedvoid,butshallapplyastosuchtime,territory,ortosuchotherextentassuchcourtmaydetermineconstitutesareasonablerestrictionunderthecircumstancesinvolved.(i)ThepartiesacknowledgethattherestrictionscontainedinthisSection2.5arereasonableandnecessarytoprotectthelegitimateinterestsofSellerandPurchaser.SelleracknowledgesthatPurchasershallbeentitledtoinjunctiverelieftoenforcethetermsandprovisionsofthisSection2.5.(j)Sellerfurtheragreesthatitwillnot,foraperiodcommencingonthedatehereofandending_________(year)followingtheClosingDate,knowinglyactivelyseektheemploymentoforhiretheemployeesofPurchaserortheCompany.(k)TotheextenttheCompany,intheconductofitsexistingbusinessasoftheeffectivedateofthisAgreement,infringesuponanyintellectualpropertyrightsofSellernototherwiselicensedtotheCompany,SelleragreestogranttoCompanyfreedomfromsuitwithregardtosuchrightsandSellerherebygrantsanexclusivelicensetousesuchintellectualpropertyinthefieldofuseoftheCompany'sBusiness.WithrespecttoBONUS,3PandTCM,thepartiesrecognizethatCompanymayrequireadditionaltechnicalinformationinordertofullyincorporatesuchproductsintoCompany'sexistingbusinessattheClosing.Selleragrees,uponreasonablenoticeandattheconvenienceoftheparties,topermitaccesstoanduseofsuchinformationonlyforsuchproductswithintheCompany'sBusiness.(l)SelleragreesthattheCompanyownsalloftheintellectualpropertyrightsforthe3PAmmunitionfamily,includingwithoutlimitation,(i)allofitscomponents,toincludetheproximityfuzeprogrammer(PFP)andtheelectroniccomponentsofthefuzeand(ii)alltestequipmentandproductiontoolingandequipment.Additionally,SelleragreesthattheCompanyhasthesolerighttomanufactureorhavemanufacturedthe3PAmmunitionFamily.SellerfurtheragreestoworktogetherwiththeCompanyto(w)documenttheCompany'sownershipof3P,(x)completethetransferofcompetencefromSellertotheCompany,(y)providethenecessarydatapackagetotheCompanyand(z)completeadefinitiveagreementtothisendpriortoClosing,completionofsuchagreementtobeaClosingcondition.(m)SelleracknowledgesthattheRestrictedPartiesdonotconstitutealloftheAffiliatesofSellerandthereforeagreesthatitshallbeaviolationofthisSection2.5foranypersonnel,assetsorintellectualpropertyemployed,ownedorusedbySelleroranyRestrictedPartyasofthedatehereoftoengageinorbeusedforthepurposeofconductinganyactivityprohibitedunderthisSection2.5byorthroughanyAffiliateofSellerwhichisnotaRestrictedParty.(n)PurchaserandSelleragreethattheamountoftheTotalConsiderationallocabletothetermsandprovisionsofthisNoncompetitionAgreementshallbe_________(_________(number))SEK.
2.6DisclosureSchedule.Thepartiesheretoacknowledgethat,asofthedatehereof,theDisclosureSchedulestothisAgreement(otherthanSchedules2.5(a),6.2,11.7(a)and11.7(b))havenotbeencompletedandthatsuchDisclosureSchedulesareinintegralpartofthisAgreement.Accordingly,Selleragreesthat,notlaterthan_________(M/D/Y),SellershalldelivertoPurchaseracertifiedcompletesetofDisclosureSchedulesforPurchaser'sreview.PurchasershallhavefiveBusinessDaysfromitsreceiptofsuchDisclosureScheduletonotifySellerofanyobjectiontotheformorcontentofanyofthematerialscontainedtherein,whichobjectionmaybemadeinitssoleandabsolutediscretion.IfPurchaserdeliverswrittennoticeofanyobjections,PurchaserandSelleragreetonegotiateingoodfaithwithrespecttotheportionsoftheDisclosureSchedulethatarethesubjectofPurchaser'sobjection.Ifafter10BusinessDaysofthedateonwhichPurchaserdeliverswrittennoticewithrespecttosuchobjections,thepartiesareunabletoresolvesuchobjectionstotheirmutualsatisfaction,thenuponwrittennoticetotheotherparty,eitherpartymayterminatethisAgreementwithoutanyfurtherobligationtotheotherparty.ARTICLEIII.CLOSING.3.1Closing.TheconsummationofthepurchaseandsaleoftheShares(the"Closing")shalltakeplaceat_________a.m.,localtime,onthe_________BusinessDayfollowingthesatisfactionoftheconditionstotheobligationsofthepartiessetforthinSection9.1hereof,attheofficesofRydin&CarlstenAdvokatbyraAB,_________(address),oratsuchothertimeorplaceasSellerandPurchasermayagreeinwriting(thedayonwhichtheClosingtakesplacebeingreferredtohereinasthe"ClosingDate").3.2Seller'sClosingDeliveries.AttheClosing,SellershalldelivertoPurchaser(a)stockcertificatesevidencingtheShares,dulyendorsedinblankoraccompaniedbyastockpowerdulyexecutedinblank,and(b)theotherdocumentsrequiredtobedeliveredbySellerpursuanttoArticleIXhereof.3.3Purchaser'sClosingDeliveries.AttheClosing,(a)PurchasershallpaytoSellertheClosingCashConsideration(asprovidedinSection2.2hereof)and(b)PurchasershalldelivertoSellertheotherdocumentsrequiredtobedeliveredbyPurchaserpursuanttoArticleIXhereof.3.4AppointmentofDirectors.AttheClosing,thePurchasershallcausegeneralmeetingsandboardmeetingstobeheldintheCompanyallowingthePurchasertoappointnewdirectorsanddeputydirectorsandtoappointcompanysignatories.ThePurchasershallpreparetheminutesofsaidmeetingsaswellasthenecessaryancillarydocumentationandthePurchasershallcausethedocumentationtobesubmittedtothePatentandRegistrationOfficeoranyotherrelevantauthorityforregistrationimmediatelyfollowingsaidmeetings.3.5DirectorDischargefromPre-ClosingLiabilities.AtthenextannualgeneralmeetingofshareholdersoftheCompany,thePurchaserundertakestograntthosedirectorsintheCompanywhohaveretireddischargefromliabilityfortheiradministrationuntiltheClosing,however,onlyprovidedthat,intheauditor'sreportsfortherelevantperiod,theCompany'sauditorsdonotrecommendagainstsuchdischarge.ARTICLEIV.REPRESENTATIONSANDWARRANTIESOFTHESELLER
Sellerherebymakestherepresentationsandwarrantiessetforthbelow,exceptasotherwisesetforthontheDisclosureSchedule,whichrepresentationsandwarrantiesareasofthedatehereof,andwillbe,asoftheClosingDate,trueandcorrect.OtherthantherepresentationsandwarrantiessetforthinSections4.2(c),4.3(b)and4.15(a)and(b),allrepresentationsandwarrantiesmadebySellerhereinwithrespecttotheMMMJointVenturearemadetothebestofSeller'sknowledgeandSellershallbeliableonlyforabreachthereofifSellerhasactualknowledgethatsuchrepresentationandwarrantyisnottrueandcorrectasofthedatehereofandasoftheClosingDate.4.1Authority.Sellerhasfullcorporatepowerandauthoritytoexecute,deliverandperformitsobligationsunderthisAgreementandeachoftheAncillaryAgreementstowhichitisapartyandtoconsummatetheTransactions.ThisAgreementhasbeendulyauthorizedby,constitutesabindingobligationof,andisenforceableagainst,Sellerinaccordancewithitsterms.EachoftheAncillaryAgreementstowhichSellerisapartyshall,asoftheClosingDate,havebeendulyauthorizedandshallthereafterconstituteabindingobligationofSeller,enforceableagainstSellerinaccordancewiththeirterms.4.2OrganizationandStanding.(a)Sellerisalimitedcompanydulyorganized,validlyexistingandingoodstandingunderthelawsofSweden,registeredintheCompaniesRegistrywithregistrationnumber_________,withfullpowerandauthoritytoconductitsbusinessasitisnowbeingconducted.(b)CCCisalimitedcompanydulyorganized,validlyexistingandingoodstandingunderthelawsofSweden,registeredintheCompaniesRegistrywithregistrationnumber_________,withfullpowerandauthoritytoconductitsbusinessasitisnowbeingconducted.TrueandcorrectcopiesofthecharterdocumentsofCCC,asamendedasofthedatehereof,havebeenprovidedtoPurchaser.(c)EachSubsidiaryoftheCompanyisdulyorganized,validlyexistingandingoodstandingunderthelawsofSweden,registeredintheCompaniesRegistrywiththeregistrationnumbersetforthonSchedule4.2(c),withfullpowerandauthoritytoconductitsbusinessasitisnowbeingconducted.TrueandcorrectcopiesofthecharterdocumentsofeachsuchSubsidiary,asamendedasofthedatehereof,havebeenprovidedtoPurchaser.4.3Capitalization.(a)CCC.TheentireauthorizedsharecapitalofCCCis_________SEKdividedinto_________shares(the"CCCCapitalStock"),eachwithanominalvalueofSEK100ofwhichallareissuedandoutstanding.NosharesoftheCCCCapitalStockareheldinCCC'streasuryandnosharesarereservedforissuance.AllissuedandoutstandingsharesofCCCCapitalStock(i)havebeendulyauthorizedandvalidlyissuedandarefullypaidandnonassessable,withoutattachmentofanypreemptiverights,(ii)wereissuedincompliancewithallapplicableLawsand(iii)areheldofrecordandbeneficiallybySellerfreeandclearofanyEncumbrances.Thereare(x)nosecuritiesofCCCconvertibleintoorexchangeableforsharesofcapitalstockorothervotingsecuritiesofCCC,(y)nosubscriptionrights,options,warrants,calls,commitments,preemptiverightsorotherrightsofanykindtoacquirefromCCCandnoobligationofCCCtoissue,sell,registerforsale,redeemorotherwiseacquire,anysharesofcapitalstockorothervotingsecuritiesofCCCoranysecuritiesofCCCconvertibleintoorexchangeableforsuchcapitalstockorvotingsecuritiesand(z)noequityequivalents,interestsintheownershiporearningsof,orstockappreciation,phantomstockorothersimilarrightsof,orwithrespectto,CCC.NeitherCCCnorSellerisapartytoor
boundbyanycontractsorcommitmentsofanycharacterrelatingtoanyissuedorunissuedstockoranyotherequitysecurityissuedortobeissuedbyCCC.(b)Subsidiaries.Schedule4.3(b)setsforthalistofeachSubsidiaryofCCC,specifyingwithrespecttoeachsuchSubsidiary,thejurisdictionoforganization,thenumberofsharesofauthorizedcapitalstock,theparvalueofsuchstock,andthenumberofsharesthatareissuedandoutstandingandtheidentityandnumberofsharesheldofrecordbyeachholderthereof.ExceptasindicatedonSchedule4.3(b),alloftheissuedandoutstandingsharesofcapitalstockofeachSubsidiaryofCCCareownedofrecordandbeneficiallybyCCC,freeandclearofanyEncumbrances.AllofthesharesofcapitalstockofeachSubsidiaryofCCChavebeendulyauthorizedandvalidlyissuedandarefullypaidandnon-assessable,wereissuedandsoldinaccordancewithapplicablelawsandwerenotissuedinviolationofanypreemptiveorothersimilarrights.ExceptforthesharesofcapitalstockoftheSubsidiariesownedbyCCCorasotherwiseindicatedonSchedule4.3(b),thereareno(i)outstandingequitysecuritiesoftheSubsidiariesofCCCor(ii)commitmentsorobligationsofanykindorcharacterfor(A)theissuanceofequitysecuritiesofanySubsidiaryofCCCor(B)therepurchase,redemptionorotheracquisitionofanyequitysecuritiesofanySubsidiaryofCCC.ExceptassetforthonSchedule4.3(b),therearenostockholderagreements,votingtrusts,proxiesorotheragreementsorunderstandingswithrespecttoorconcerningthepurchase,saleorvotingoftheequitysecuritiesofanySubsidiaryofCCC.ExceptfortheequitysecuritiesoftheSubsidiariesofCCCdescribedonSchedule4.3(b),neitherCCCnoritsSubsidiariesownsequitysecuritiesinanyotherPerson.4.4BooksandRecords.TheBooksandRecordsofCCCandeachofitsSubsidiarieshavebeenmadeavailabletoPurchaseroritsrepresentativesandhavebeenmaintainedinaccordancewithsoundbusinesspracticesandallapplicableLaws.TheminutebooksofCCCareaccurate,completeandcorrectandhavebeenmaintainedinaccordancewithapplicableLaws.4.5AuditedFinancialStatements(a)AttachedasSchedule4.5(a)heretoaretrueandcorrectcopiesof(i)theauditedconsolidatedbalancesheetsoftheCompanyanditsconsolidatedSubsidiariesasof_________(M/D/Y)andtherelatedstatementsofincome,cashflowsandstockholder'sequityfortheoneyearperiodthenended,ineachcasetogetherwithproformaadjustmentspreparedbytheCompany'sindependentauditorstoremovetherefromtheassets,liabilitiesandequityofJJJandIII,andanyrevenues,expensesorotheroperatingresultsofeachofthem(the"ProFormaAdjustments")and(ii)theauditedconsolidatedbalancesheetsoftheCompanyanditsconsolidatedSubsidiariesasof_________(M/D/Y)and_________(M/D/Y),andtherelatedstatementsofincome,cashflowsandstockholder'sequityfortheoneyearperiodsthenended,togetherwiththeauditreportsthereon((i)and(ii)collectively,the"AuditedFinancialStatements").TheAuditedFinancialStatementshavebeenpreparedinaccordancewithGAAPusingtheAccountingPrinciplesconsistentlyappliedbytheCompanythroughouttheperiodscoveredbysuchstatements,andpresentfairlythefinancialpositionandresultsofoperationsoftheCompanyanditsconsolidatedSubsidiariesatthedatesofsuchstatementsandfortheperiodscoveredthereby.AsadjustedbytheProFormaAdjustments,theDecember31FinancialStatementspresentfairlythefinancialpositionandresultsofoperationsoftheCompanyanditsconsolidatedsubsidiariesotherthanIIIandJJJatthedatesofsuchstatementsandfortheperiodscoveredby.(b)AttachedasSchedule4.5(b)heretoaretrueandcorrectcopiesoftheauditedconsolidatedbalancesheetsofeachoftheMinoritySubsidiariesandtheMMMJointVentureasof
_________(M/D/Y)and_________(M/D/Y)andtherelatedstatementsofincome,cashflowsandstockholder'sequityfortheoneyearperiodthenended(the"SubsidiaryFinancialStatements").TheSubsidiaryFinancialStatementshavebeenpreparedinaccordancewithGAAPandtheAccountingPrinciplesconsistentlyappliedthroughouttheperiodscoveredbysuchstatements,andpresentfairlythefinancialpositionandresultsofoperationsoftheMinoritySubsidiaryortheMMMJointVenturetowhichsuchfinancialstatementrelatesatthedatesofsuchstatementsandfortheperiodscoveredthereby.4.6UnauditedFinancialStatements.AttachedasSchedule4.6heretoaretrueandcorrectcopiesofthefollowing:(a)unauditedbalancesheetsoftheCompanyanditsconsolidatedSubsidiariesasof_________(M/D/Y);(b)theunauditedbalancesheetoftheCompanyasofMarch31and_________(M/D/Y),andtherelatedstatementsofincome,cashflowsandstockholder'sequityfortheperiodbeginning_________(M/D/Y)andendingonthedateofsuchunauditedfinancialstatements(collectively,the"UnauditedFinancialStatements").TheUnauditedFinancialStatementshavebeenpreparedinaccordancewithGAAPusingtheAccountingPrinciplesconsistentlyappliedbytheCompanythroughouttheperiodscoveredbysuchstatements(exceptfortheabsenceoffootnotesandotherpresentationitems,andsubjecttonormalyearendadjustments,noneofwhichwillindividuallyorintheaggregatebematerial)andpresentfairlythefinancialpositionandresultsofoperationsoftheCompany(and,inthecaseofthe_________(M/D/Y)UnauditedFinancialStatements,itsconsolidatedSubsidiaries)atthedatesofsuchstatementsandfortheperiodscoveredthereby.4.7UndisclosedLiabilities.(a)ExceptforsuchLiabilitiesasaredisclosedontheDecember31BalanceSheet,tothebestofSeller'sknowledge,theCompanyhasnomaterialLiabilities,whetherabsoluteorcontingent,liquidatedorunliquidated,dueortobecomedue,exceptfor(i)suchLiabilitiesashavearisenafter_________(M/D/Y),intheordinarycourseofbusiness,consistentwithpastpracticesoftheCompanyanditsSubsidiariesand(ii)suchLiabilitiesaswouldnotindividuallyorintheaggregatehaveaMaterialAdverseEffectontheCompany.(b)Schedule4.7(b)setsforthadescriptionofcertaincontingentliabilitiesoftheCompanythatarenotrequiredtobeincludedintheCompany'sDecember31BalanceSheetinaccordancewithGAAPandwhichweredisclosedbySellertoPurchaserpriortothedatehereof.SuchdescriptionshallincludeSeller'sbestestimateofthemaximumamountpayablebytheCompanyasaresultofsuchliabilities.4.8Licenses,PermitsandAuthorizations.Schedule4.8containsatrueandcorrectlistofallmateriallicenses,permissions,authorizationsandconsentsissuedbyanyGovernmentalAuthoritytotheCompanyoranyoftheMinoritySubsidiaries(collectively,"Permits").AllsuchPermitsareinfullforceandeffect.ExceptassetforthonSchedule4.8therearenoproceedingspending,ortotheknowledgeofSeller,threatened,thatseektherevocation,cancellation,suspensionoradversemodificationthereof.SuchPermitsconstituteallofthematerialPermitsnecessarytopermittheCompanyandtheMinoritySubsidiariestoown,operate,useandmaintaintheirassetsandpropertiesinthemannerinwhichtheyarenowoperatedandmaintainedandtoconductthebusinessoftheCompanyandtheMinoritySubsidiariesascurrentlyconducted.AllrequiredfilingswithrespecttosuchmaterialPermitshavebeentimelymade,andallrequiredapplicationsforrenewalthereofhavebeentimelyfiled,exceptforanyfailuretotimelyfileanyfilingorapplicationthatmaynotreasonablyresultinthetermination,nonrenewalormaterialadverse
modificationofthematerialPermittowhichsuchfilingorapplicationrelates.4.9LaborMatters.Schedule4.9containsatrue,correctandcompletelistofallofthecollectivebargainingagreementstowhichtheCompanyisaparty.ExceptassetforthonSchedule4.9,nolabordispute,strike,workstoppageormateriallaborrelationsproblemofanykindthathasaffectedormayaffecttheCompany'soranyofitsSubsidiaries'businessesoroperationsinanymaterialrespecthasoccurredduringthepasttwo(2)years,or,totheknowledgeoftheSeller,currentlyispendingorthreatened.ExceptassetforthonSchedule4.9,neithertheCompanynoranyofitsSubsidiarieshasenteredintoanyseveranceorsimilararrangementinrespectofanypresentemployeeoftheCompanyoranyofitsSubsidiariesthatwillresultinanyobligation(absoluteorcontingent)ofPurchaser,theCompanyoranyofitsSubsidiariestomakeanypaymenttoanypresentemployeeoftheCompanyoranyofitsSubsidiariesfollowingterminationofemploymentoruponachangeofcontroloftheCompanyoranyofitsSubsidiaries.ExceptassetforthonSchedule4.9,neithertheCompanynoranyofitsSubsidiarieshasengagedinanyunfairlaborpracticeandtherearenocomplaintsagainsttheCompanyoranyofitsSubsidiariespendingbeforeanyGovernmentalAuthoritybyoronbehalfofanyemployeeoftheCompanyoranyofitsSubsidiaries.4.10Contracts.Schedule4.10containsatrue,correctandcompletelistofalloftheContractsdescribedinSections4.10(a)-(o)below,towhichtheCompanyisapartyorbywhichitspropertiesorassetsisbound(each,a"MaterialContract"):(a)EachContractthatinvolvesperformanceofservicesordeliveryofgoodsand/ormaterialsbyortotheCompanyinanamountorvalueinexcessof5,000,000SEK,includingadescriptionofanyoffsetarrangementsorrequirementswithrespecttheretoandtheamountthereof;providedhoweverthatsuchContractsshallnotincludeanyContractspursuanttowhichtheCompanyhas,asofthedatehereof,fulfilledallofitsperformanceobligationsthereunder;(b)Eachnote,debenture,otherevidenceofIndebtedness,guarantee,loan,interestrateandcurrencyobligationswap,letterofcredit,surety-bondorfinancingagreementorinstrumentorothercontractformoneyborrowed,includinganyagreementorcommitmentforfutureloans,creditorfinancing;(c)EachContractnotintheordinarycourseofbusinessincludingallContractsrelatingtotheacquisitionordispositionofanySubsidiaryoranymaterialassetsoftheCompany(otherthansalesofinventoryintheordinarycourseofbusiness);providedhoweverthatsuchContractsshallnotincludeanyContractspursuanttowhichtheCompanyhas,asofthedatehereof,fulfilledallofitsperformanceobligations(contingentorotherwise);(d)Eachlease,rentaloroccupancyagreement,license,installmentandconditionalsaleagreement,andothercontractaffectingtheleasingof,titleto,useof,oranyleaseholdorotherinterestin,anyrealorpersonalpropertyhavingannualrentalpaymentsinexcessof_________SEK;(e)EachmateriallicensingagreementwithrespecttoIntellectualProperty,includingagreementswithcurrentorformeremployees,consultantsorcontractorsregardingtheappropriationorownershipofIntellectualProperty(otherthan(i)anysuchlicensegrantedbytheCompanytoKKKintheordinarycourseofbusinessaspartoforasaconditiontoanyperformancecontract,(ii)anysuchlicensegrantedtoanyotherPersoninconnectionwithanysubcontract,coproductionagreement,teamingagreementorothersimilararrangementsolelywithrespecttotherightsnecessaryforsuchPersontoperformitsobligationsthereunder,or(iii)anyagreementbetweentheCompanyanditsemployeesinrelationtotheiremploymentbytheCompany);
(f)EachContract,otherthantheplansandarrangementssetforthinSchedule4.18hereof,betweentheCompanyandanyofitsofficersoremployeesearningasalaryofnotlessthan_________SEKperyear,orwhichprovidesforbonuses,pensions,options,deferredcompensation,retirementpayments,profitsharing,severancepaymentsorthelike(otherthanagreementswithemployeesgrantingthemtherighttoparticipateintheplansandarrangementssetforthonSchedule4.18)thatcouldresultintheCompany'sobligation(contingentorotherwise)topaytoanyofficeroremployeeanamountexceeding_________SEKperyearindividuallyor_________SEKperyearintheaggregate;(g)Eachjointventurecontract,partnershipagreement,limitedliabilitycompanyagreementorotherContract(howevernamed)involvingasharingofprofits,losses,costsorliabilitiesbytheCompanywithanyotherPerson;(h)EachContract,otherthantheNoncompetitionAgreement,containingcovenantsthatrestricttheCompany'sbusinessactivityorlimitthefreedomoftheCompanytoengageinanylineofbusinessortocompetewithanyPersonorinanygeographicarea;(i)EachContractprovidingforpaymentstoorbyanyPersonbasedonsales,purchasesorprofits,otherthandirectpaymentsforgoods;(j)EachpowerofattorneycurrentlyeffectiveandoutstandingtoanyPersonotherthananemployeeoftheCompanyorsolelyforaccesstoanybankaccountsoftheCompany;(k)EachContractprovidingforcapitalexpendituresforinvestmentsafterthedatehereofinanamountinexcessof_________SEK.(l)Eachwrittenwarranty,guarantyorothersimilarundertakingwithrespecttocontractualperformanceextendedbytheCompanyotherthanintheordinarycourseofbusiness;(m)EachLossContract;(n)EachContractwithSelleroranyofitsAffiliatesinvolvingtheprovisionofgoodsorservicesbyortotheCompanyaftertheClosingDatehavingavalueequalorgreaterthan_________SEKindividuallyor_________SEKintheaggregate;and(o)AnyotherContractmaterialtothebusinessoroperationsoftheCompany.EachMaterialContractisvalidandinfullforceandeffectinallmaterialrespects(exceptthoseasbytheirtermsmayexpirepriortoClosing).TheCompanyisnotindefault,orallegedtobeindefault,inanymaterialrespectunderanyMaterialContracttowhichitisapartyorbywhichitisboundandeachsuchMaterialContractisenforceableagainsttheCompanyinaccordancewithitsterms.TheconsummationofthetransactionscontemplatedbythisAgreementwillnotcauseamaterialdefaultunder,orprovideanyrightofterminationwithrespectto,anyMaterialContract.TotheknowledgeoftheSeller,nopartywithwhomtheCompanyoranyofitsSubsidiarieshasaMaterialContractisindefaultthereunderinanymaterialrespectandeachsuchMaterialContractisenforceableagainsteachsuchotherPersonpartytheretoinaccordancewithitsterms.TotheknowledgeoftheSeller,noeventhasoccurredandnootherfactsorcircumstancesexistthat,withnoticeorlapseoftimeorboth,couldmateriallyimpairtheabilityoftheCompanyoranyofitsSubsidiariespartytheretofromenforcinganyoftheirrespectiverightsunderanyMaterialContractinanymaterialrespectorisreasonablylikelytoconstituteamaterialbreachormaterialdefaultbyanypartythereto.4.11Litigation.TherearenoActionsoranyotherproceedingsatlaworinequityorinvestigationsbyanyGovernmentalAuthoritypendingagainsttheCompanyoranyofitsSubsidiaries,or,tothebestofSeller'sknowledge,threatenedagainstoraffectingtheCompanyoranyofitsSubsidiaries,
theirrespectivepropertiesorbusinessorthetransactionscontemplatedbytheAgreementortheAncillaryAgreements.NeithertheCompanynoranyofitsSubsidiariesissubjecttoorboundbyanyorderofanyGovernmentalAuthorityenteredinanyActiontowhichitisapartyorofwhichtheCompanyhasknowledge.4.12Taxes.(a)ExceptassetforthinSchedule4.12hereto,eachofCCCandeachofitsSubsidiarieshas,inaccordancewithapplicableLaw,timelyfiledorcausedtobefiledalloftheTaxReturnsrequiredbyLawtobefiledandhasfullypaidallTaxesforwhichithasbecomeliabletopayonorpriortotheClosingDate.Thereisnodispute,audit,investigation,proceeding,deficiencyorclaim,andthereisnonoticeofanyoftheforegoingconcerninganyLiabilitywithrespecttoTaxesowedbyCCCoranyofitsSubsidiarieseitherclaimedorraisedinwritingbyanyGovernmentalAuthorityorastowhichtheCompanyhasknowledge.(b)ExceptassetforthinSchedule4.12,therearenocircumstancesthatwouldpermitanyGovernmentalAuthoritytolevyadditionalamountsofanyTax,finesorotherpunitivedamagesagainstCCCoranyofitsSubsidiariesortodisallowthedeductibilityofanycostitemsreflectedinsuchaccrualsorinanyTaxreturnfiledbyorwithrespecttotheCompanyoritsSubsidiariespriortotheClosingDateotherthansuchamountsasshallbeaccruedontheClosingBalanceSheet.(c)TheCompanyhasestablishedadequatereservesinaccordancewiththeAccountingPrinciplesintheDecember31BalanceSheetandtheUnauditedFinancialStatements,whicharesufficientforthepaymentofallunpaidTaxes,whetherornotdisputed,fortheperiodendedonorpriortothedatehereofandallpriorperiods.Withoutlimitingthegeneralityoftheforegoing:(d)NoTaxes,finesorpunitivedamageswillbeleviedor,whererelevant,nolossofTaxlosseswilloccurasaresultofanyreorganizationofCCCanditsSubsidiaries,includingthetransferofassetstoCCCorthetransferbyCCCofthecapitalstockofIIIorJJJtoCelsiuspriortotheClosingoranyofthetransactionscontemplatedhereby;and(e)NofinesorpunitivedamageswillbeleviedasaresultofperiodizationerrorsintheVATreportingofCCCoranyofitsSubsidiaries:4.13AbsenceofCertainChanges,EventsorConditions.ExceptassetforthinSchedule4.13,since_________(M/D/Y),therehasnotbeenany:(a)MaterialAdverseChangeinthebusiness,operations,condition(financialorotherwise),assets,liabilitiesorprospectsoftheCompanyanditsSubsidiariestakenasawhole;(b)exceptfornormalperiodicincreasesintheordinarycourseofbusinessconsistentwithpastpractice,(i)increaseinthecompensationpayableortobecomepayablebytheCompanyoranyofitsSubsidiariestoanyoftheirofficers,directorsoremployees(collectively,the"Personnel"),(ii)bonus,incentivecompensation,serviceawardorotherlikebenefitgranted,madeoraccrued,contingentlyorotherwise,forortothecreditofanyofthePersonnel,exceptintheordinarycourseofbusinessconsistentwithpastpractices,(iii)employeewelfare,pension,retirement,profit-sharingorsimilarpaymentorarrangementmadeoragreedtobytheCompanyoranyofitsSubsidiariesforanyPersonnelexceptpursuanttotheexistingplansandarrangementsdescribedinSchedule4.18or(iv)newemploymentagreementstowhichtheCompanyoranyofitsSubsidiariesisapartyofthetyperequiredtobedisclosedpursuanttoSection4.10(f)hereof;(c)additiontoormodificationofthePensionSchemesotherthan(i)contributionsmadein
accordancewiththenormalpracticeoftheCompanyanditsSubsidiariesor(ii)theextensionofcoveragetootherPersonnelwhobecameeligibleafter_________(M/D/Y);(d)sale,assignmentortransferofanymaterialassetsoftheCompanyoranyofitsSubsidiariesotherthanthesaleofinventoryintheordinarycourseofbusiness;(e)cancellationofanyIndebtednessorwaiverofanyrightsofsubstantialvaluetotheCompanyoranyofitsSubsidiaries,otherthanintheordinarycourseofbusiness;(f)cancellation,termination,ormaterialamendmentofanyMaterialContract,PermitorotherinstrumentmaterialtotheCompany;(g)capitalexpenditureforinvestmentsinfixedassetsoranyincurringofliabilitythereforbytheCompany,exceptforsuchcapitalexpendituresthatdonot,individuallyorintheaggregate,exceed_________SEK;(h)failuretooperatethebusinessoftheCompanyandeachofitsSubsidiariesintheordinarycourseinanymaterialrespectsoastousereasonableeffortstopreservesuchbusinessintact,tokeepavailabletheservicesofthePersonnel,andtopreservethegoodwilloftheCompany'sanditsSubsidiaries'suppliers,customersandothershavingbusinessrelationswiththeCompanyoranyofitsSubsidiaries;(i)changeinaccountingmethodsorpracticesbytheCompany;(j)revaluationbytheCompanyofanyofitsassetsorproperties,includingwithoutlimitation,writingoffnotesoraccountsreceivable;(k)damage,destructionorloss(whetherornotcoveredbyinsurance)ofanymaterialassetsoftheCompanyoranyofitsSubsidiaries;(l)IndebtednessincurredbytheCompanyoranyofitsSubsidiariesotherthantheHaaglundsJointVentureoranycommitmenttoincurIndebtednessenteredintobytheCompanyoranyofitsSubsidiaries(otherthantheHaaglundsJointVenture)otherthan(i)IndebtednessoranycommitmenttoincurIndebtednessintheordinarycourseofbusinessinanaggregateamountthatislessthanFiveMillion(5,000,000)SEKor(ii)intercompanyIndebtednessincurredintheordinarycourseofbusinessbetweenoramongSeller,theCompanyoranyofitsSubsidiaries;(m)declaration,settingasideforpaymentofdividendsordistributionsinrespectofanysecuritiesoftheCompanyoranyofitsSubsidiariesoranyredemption,purchaseorotheracquisitionbytheCompanyoranyofitsSubsidiariesoftheirrespectivesecurities;(n)issuanceorreservationforissuancebytheCompanyoranyofitsSubsidiariesof,orcommitmenttoissueorreserveforissuanceanysecuritiesof,theCompanyoranyofitsSubsidiaries;(o)execution,terminationormaterialamendmentofanyleaseforrealorpersonalpropertybytheCompanyoranyofitsSubsidiariesinvolvinganannualpaymentinexcessof_________SEK;or(p)anyagreementbytheCompanyoranyofitsSubsidiariestodoanyoftheforegoing.4.14LegalCompliance.ExceptforEnvironmentalLawsandEmploymentLaws,eachofwhichisthesubjectofotherrepresentationsandwarrantiescontainedherein,(a)neithertheCompanynoranyofitsSubsidiariesortheirrespectivepredecessorsininterestis,andatnotimeduringthepastfive(5)yearshasbeen,inmaterialviolationoforinmaterialdefaultunderanyLawapplicabletoitoritsassetsandproperties,(b)noaction,proceeding,investigation,charge,complaint,claim,demandornoticehasbeenfiledorcommencedagainsttheCompanyoranyofitsSubsidiaries(oragainstSelleroranyofitsAffiliatesrelatingtotheCompanyoranyofitsSubsidiariesortheirrespectivepredecessorsininterest),alleginganysuchviolationordefault,nortotheknowledgeof
Sellerareanysuchactionsthreatened,and(c)neithertheCompanynoranyofitsSubsidiariesortheirrespectivepredecessorsininterest,orSelleroranyofitsAffiliatesontheCompany'soritsSubsidiariesortheirrespectivepredecessorsininterestbehalfhas,duringthepastfive(5)years,conductedanyinternalinvestigationinconnectionwithwhichSelleroranyofitsAffiliates,ortheCompanyoranyofitsSubsidiariesortheirrespectivepredecessorsininterestretainedorsoughtadvicefromoutsidelegalcounselwithrespecttoanyactual,potentialorallegedmaterialviolationofanyLawbytheCompanyoranyofitsSubsidiariesortheirrespectivepredecessorsininterest(orSelleroranyofitsAffiliatesrelatingtotheCompanyoritsSubsidiariesortheirrespectivepredecessorsininterest),oranyoftheirrespectivePersonneloragents.NoneofSeller,itsAffiliates,ortheirrespectiverepresentativesoragentsis,andatnotimeduringthepastfive(5)yearshasbeen,inmaterialviolationoforinmaterialdefaultunderanyLawforwhichtheCompanyoritsSubsidiariesmayhaveanyliability.4.15NoConflictwithOtherDocuments.TheexecutionanddeliveryofthisAgreementandtheAncillaryAgreementsandthecarryingoutofthetransactionscontemplatedherebyorthereby,willnot:(a)resultinanyviolation,terminationormodificationof,orbeinconflictwith,thecharterdocumentsoftheCompany,anyofitsSubsidiariesorSeller;(b)subjecttoobtainingtheconsents,approvalsandactions,makingthefilingsandgivingthenoticesdisclosedinSchedule4.15ordescribedinSection4.26,conflictwithorresultinamaterialviolationofanytermorprovisionofanyLawapplicabletotheCompanyoranyofitsSubsidiariesortheirrespectiveassetsandproperties;(c)(i)conflictwithorresultinamaterialviolationormaterialbreachof,(ii)constitute(withorwithoutnoticeorlapseoftimeorboth)amaterialdefaultunder,(iii)requiretheCompanyoritsSubsidiariestoobtainanyconsent,approvaloractionof,makeanyfilingwithorgiveanynoticetoanyotherPersonasaresultorunderthetermsof,(iv)resultinorgivetoanyotherPersonanyrightoftermination,cancellation,accelerationormaterialmodificationinorwithrespectto,or(v)resultinthecreationorimpositionofanyEncumbrance(otherthanaPermittedEncumbrance)upontheCompanyoritsSubsidiariesoranyoftheirrespectiveassetsandpropertiesunder,anyMaterialContractoranyPermitstowhichtheCompanyoritsSubsidiariesisapartyorbywhichanyoftheirrespectiveassetsandpropertiesarebound.4.16GovernmentContracts;Backlog.(a)ThereisnoActionorinvestigationpendingor,totheknowledgeoftheSeller,threatenedagainsttheCompanyoranyofitsSubsidiaries(oragainstSelleroranyofitsAffiliateswithrespecttotheCompany),assertingorallegingthecommissionofcriminalactsorbriberybyanysuchPersonwithrespecttoanyGovernmentContract.NeithertheCompanynoranyofitsSubsidiariesiscurrently,oratanytimewithinthepastfive(5)yearshaseverbeen,debarredorsuspendedfromparticipationintheawardofGovernmentContracts(itbeingunderstoodthatdebarmentandsuspensiondoesnotincludeineligibilitytobidforcertainGovernmentContractsduetogenerallyapplicablebiddingrequirements).TheCompanyandeachofitsSubsidiariesis,andatalltimeswithinthepastfive(5)yearshasbeen,inallmaterialrespects,incompliancewithallapplicableLawsrelatingtoanyGovernmentContract,andnoneofSeller,theCompanyoranyoftheirrespectiveSubsidiarieshasreceivedwrittennoticeofanykindfromanyGovernmentalAuthorityalleginganyviolation,ornotifyinganysuchPersonofanyinvestigationofapossibleviolation,ofanyapplicableLawbyCompanyoranyofitsSubsidiariesoranyactforwhichthe
CompanyoranyofitsSubsidiariescouldbedebarredorsuspendedfromcontractingwithanyGovernmentalAuthority,orprohibitingorseekingtoprohibittheCompanyoranyofitsSubsidiariesfromconducting,orrestrictingorseekingtorestricttheCompany'soranyofitsSubsidiaries'abilitytoconduct,alloranypartoftheirrespectivebusinessesoroperationsorfromcontractingwithanyGovernmentalAuthority.NopaymenthasbeenmadebytheSeller,theCompanyoranyoftheirrespectiveAffiliates,or,totheknowledgeofSeller,byanyPersonactingonbehalfofanysuchPerson,toanyotherPersoninconnectionwithanyGovernmentContractinviolationofapplicableprocurementLawsorinviolationof(orrequiringdisclosurepursuantto)anyotherapplicableLaw.ThecostaccountingandprocurementsystemsmaintainedbytheCompanyanditsSubsidiarieswithrespecttoGovernmentContractsareincomplianceinallmaterialrespectswithallapplicableLaws.(b)WithrespecttoeachmaterialGovernmentContract:(i)theCompanyandeachofitsSubsidiariespartytheretohascompliedwithallmaterialtermsandconditionsofsuchmaterialGovernmentContract,includingallclauses,provisionsandrequirementsincorporatedexpresslybyreferenceorbyoperationoflawtherein;(ii)allrepresentationsandcertificationsexecuted,acknowledgedorsetforthin,orpertainingto,suchmaterialGovernmentContractarecompleteandcorrectinallmaterialrespectsasoftheireffectivedate,andtheCompanyandeachofitsSubsidiariespartythereto,asapplicable,havecompliedinallmaterialrespectswithallsuchrepresentationsandcertifications;and(iii)noterminationforconvenience,terminationfordefault,curenoticeorshowcausenoticeisineffectasofthedatehereofpertainingtoanymaterialGovernmentContract.(c)Schedule4.16(c)identifieswithrespecttoeachmaterialGovernmentContracttowhichtheCompanyisapartyandwhichhasanaggregatefundedandunfundedbackloginexcessof_________SEK,theamountinSEKofthebacklogoftheCompanythereunderasof_________(M/D/Y).(d)Schedule4.16(d)listseachforeignsalesagentagreementoranysimilaragencyorrepresentationContracttowhichtheCompany,SelleroranyoftheirrespectiveSubsidiariesisaparty(orpursuanttowhichanyofthemmayhaveanyobligation)requiringpaymentstoanythirdpartyinconnectionwithsalesbytheCompanyoranyofitsSubsidiariestoanycustomer(collectively,the"FSAs").TrueandcorrectcopiesofeachoftheFSAshavebeenprovidedtoPurchaserpriortothedatehereof.NoneoftheFSAsviolateanyapplicableLaw.4.17TitletoPersonalProperties;AbsenceofEncumbrances,Etc.TheCompanyoroneormoreofitsSubsidiarieshasandontheClosingDatewillhave,goodandmarketabletitletoalloftheCompany'sorsuchSubsidiaries'personalproperty(collectively,the"MachineryandEquipment")ownedorreflectedintheDecember31BalanceSheet,withsuchchangesasthereafterhaveoccurredintheordinarycourseofbusiness,ineachcasefreeandclearofEncumbrances.TheMachineryandEquipmenttakenasawholeisingoodoperatingconditionandrepair(subjecttonormalwearandtear)andissuitableforthepurposesforwhichitispresentlyorhistoricallyhasbeenused.ExceptasotherwisecontemplatedbythisAgreement,theCompanyoroneormoreofitsSubsidiariesowns,inthecaseofleasesandlicenses,hasvalidandsubsistingleaseholdinterestsorlicensesin,or,inthecaseofgovernmentfurnishedproperty,otherwisepossessesavalidrighttouse,allofthematerialpropertiesandassetsofwhateverkind(whetherrealorpersonal,tangibleorintangibleandincluding,withoutlimitation,allmaterialIntellectualProperty)necessarytooperatethebusinessascurrentlyconducted.
4.18PensionandEmployeeBenefitPlans.(a)ExceptassetforthinSchedule4.18theCompanyandeachofitsSubsidiarieshascompliedinallmaterialrespectswithalllaws,rulesandregulationsrelatingtoemployment,equalemploymentopportunity,nondiscrimination,immigration,wages,hours,benefits,collectivebargaining,thepaymentofsocialsecurityandsimilartaxes,occupationalsafetyandhealthandplantclosings("EmploymentLaws")andhas,andshallhavepaidormadeprovisionsforintheClosingBalanceSheetallcontributionsduefromitasoftheClosing.TheCompanyandeachofitsSubsidiarieshasmadesufficientprovisionsinitsDecember31BalanceSheetinrespectofholidaypay.ExceptaswillbereflectedintheClosingBalanceSheet,neithertheCompanynoranyofitsSubsidiarieswillbeliableasoftheClosingforthepaymentofanymaterialtaxes,fines,penaltiesorotheramounts,howeverdesignated,forfailuretocomplywithanyoftheforegoingEmploymentLaws.(b)ExceptasdisclosedinSchedule4.18,neithertheCompanynoranyofitsSubsidiariesisapartytoanyagreementandhasnotincurredanyliabilityfortheprovisionofbenefitstoanyemployeeoftheCompanyoranyofitsSubsidiariesotherthanthosepayable,asrequiredbyanyEmploymentLaws,orpursuantto,statesocialsecurityschemesorschemesofnationalinsurance,collectivebargainingagreements,orothermaterialContractsdisclosedtoPurchaser,includingSwedenITP,(the"PensionSchemes")onorfollowingretirementordeathfororinrespectofanyoftheemployeesoftheCompanyoranyofitsSubsidiaries.(c)ExceptassetforthinSchedule4.18,theCompany'sanditsSubsidiaries'PensionSchemeshavebeenestablished,maintainedandadministeredatalltimesinaccordancewithallapplicableEmploymentLawsandtheCompanyandeachofitsSubsidiarieshas,asofthedatehereofcompliedinallmaterialrespectswithallofitsobligationsandduties(includingstatutoryduties)underandinrespectofthePensionSchemes.4.19BankAccounts.Schedule4.19containsalistofallbankaccounts,safedepositboxesandlockboxesmaintainedbytheCompany,andallauthorizedsignaturestherefor,whichlistiscompleteandaccurate.4.20BrokersandAdvisors.NoneofSeller,theCompanyoranyofitsSubsidiarieshastakenanyactionthatwouldgiverisetoavalidclaimagainstanypartyheretoforabrokeragecommission,finder'sfee,consultingoradvisoryfee,orsimilarpayment,otherthanfeespayablesolelybySellertoUPSWarburgforwhichnoneoftheCompany,itsSubsidiariesorPurchasershallhaveanyliability.4.21EnvironmentalMatters.(a)(i)TheCompanyanditsSubsidiariesare,andatalltimesduringthepreviousthree(3)yearshavebeen,incompliancewithallapplicableEnvironmentalLawsandanyadministrativeorjudicialnoticesorordersissuedorpromulgatedpursuanttoorunderanysuchEnvironmentalLaws;(ii)theCompanyanditsSubsidiarieshold,andatalltimesduringthepreviousthree(3)yearshaveheld,allmaterialPermitsrequiredundertheapplicableEnvironmentalLawsfortheoperationoftheirbusinessandtheownershipoftheirassetsandproperties,and(iii)totheknowledgeofSeller,nomodificationorchangetotheoperationsoftheCompany'soranyofitsSubsidiaries'businesswillberequireduponrenewalofanysuchPermits.NeithertheCompanynoritsSubsidiarieshasreceivedanynoticefromanyapplicableGovernmentalAuthorityalleginganyviolationofanyEnvironmentalLaws.ExceptassetforthonSchedule4.21,noGovernmentalAuthorityhasconductedanyaudits,assessments,testsorotherreviewsinconnectionwith
environmentalmattersregardingtheCompanyoranyofitsSubsidiaries.(b)NoneofSeller,theCompanyortheirrespectiveSubsidiarieshasstored,deposited,used,treated,kept,disposedof,releasedoremittedanyHazardousMaterialsonanyoftheRealPropertyorbuildingsusedbytheCompanyoranyofitsSubsidiariesincontraventionofanyapplicableEnvironmentalLaws.(c)NeithertheCompanynoritsSubsidiarieshasanyobligationorLiability,whetheractualorcontingent,withrespecttostorage,treatment,clean-upordisposalofanyHazardousMaterials.(d)TherearenoenvironmentalreportsorassessmentsinthepossessionorcontrolofSeller,theCompanyoranyoftheirAffiliatesrelatingtothecurrentorpriorbusinessoftheCompanyoranyofitsSubsidiariesthathavenotbeendeliveredormadeavailabletoPurchaser.4.22CustomersandSuppliers.Schedule4.22setsforthacompleteandaccuratelistofthenamesof(a)thetenlargestcustomersoftheCompany(includingSelleranditsAffiliates),showingtheapproximatetotalsalesinSEKbytheCompanytoeachsuchcustomerduringthe1998and1999calendaryearsand(b)thetenlargestsuppliersoftheCompany(includingSelleranditsAffiliates),showingtheapproximatetotalpurchasesinSEKbytheCompanyfromeachsuchsupplierduringthe_________(year)and_________(year)calendaryears.NoneofSeller,theCompanyoranyoftheirrespectiveSubsidiarieshasreceivedanycommunicationfromanycustomerorsupplierlistedinSchedule4.22notifyinganyofthemofanyintentiontoterminateormateriallyreducepurchasesfromorsuppliestotheCompanyanditsSubsidiariesortheintentiontoterminateorfailtorenewtheircurrentContracts,ifany,withtheCompanyanditsSubsidiariesorfailtoexerciseanypurchaseoptionthereunder.4.23Insurance.(a)Schedule4.23containsanaccurateandcompletedescriptionofallpoliciesofproperty,fireandcasualty,productliability,workers'compensationandotherformsofinsuranceheldbyorforthebenefitoftheCompanyoranyofitsSubsidiariesorinsuringanyoftheirassetsorproperties(collectively,the"InsurancePolicies").TrueandcorrectandcompletecopiesofsuchinsurancepolicieshavebeenmadeavailabletoPurchaser.(b)ExceptassetforthSchedule4.23allInsurancePolicies(i)arevalid,outstanding,andenforceablepolicies,and(ii)willnotterminateorlapsebyreasonofthetransactioncontemplatedbythisAgreementwithrespecttoanyclaimarisingpriortotheClosingDate.(c)NoneofSeller,theCompanyoritsSubsidiarieshasreceived(i)anynoticeofcancellationofanyInsurancePolicyorrefusalofcoveragethereunder,(ii)anynoticethatanyissuerofsuchInsurancePolicyhasfiledforprotectionunderapplicablebankruptcylawsorisotherwiseintheprocessofliquidatingorhasbeenliquidated,or(iii)anyothernoticethatanysuchInsurancePolicyisnolongerinfullforceoreffectorthattheissuerofanysuchInsurancePolicyisnolongerwillingorabletoperformitsobligationsthereunder.4.24IntellectualProperty.Schedule4.24listseachpatent,patentapplication,inventiondisclosure,trademark,trademarkapplication,servicemark,servicemarkapplication,tradename,copyrightregistrationandcopyrightapplicationinwhichtheCompanyhasaninterestorinwhichSellerhasaninterestandwhichisusedbytheCompanyinitsbusinessesascurrentlyconducted.ExceptassetforthonSchedule4.24,theCompanyhasgoodtitletoeachitemofIntellectualPropertyownedbyit,freeandclearofanyEncumbrances,andnootherPersonhastherighttouseanysuchIntellectualPropertyotherthanpursuantto(i)theContractslistedonSchedule4.10,(ii)anylicenseenteredintointheordinarycourseofbusinessbetweentheCompanyandKKKor(iii)any
licenseenteredintopursuanttoanyteamingagreements,co-productionagreements,subcontractsorsimilaragreementsorarrangementsbetweentheCompanyandanyotherPerson(s),totheextentthelicensesgrantedundersucharrangementsarelimitedtothepurposeoffulfillingtheparties'obligationsundersucharrangements.TheCompany'suseoftheIntellectualProperty,whetherornotregistered,isnotinfringinguponorotherwiseviolatingtherightsofanythirdpartyinortosuchrights,andneitherSellernortheCompanyhasreceivednoticeofanyclaimsthathavebeenassertedbyanyPersonagainstanyofthemwithrespecttotheuseofanyitemofIntellectualPropertybytheCompanychallengingorquestioningthevalidityoreffectivenessofsuchuseoranysuchright,licenseoragreementsandnoPersonhasarighttoaroyaltyorsimilarpayment,orhasanyotherrights,inrespectofanysuchrightsotherthanpursuanttotheContractslistedonSchedule4.10.NeithertheCompanynor,totheknowledgeofSeller,theotherpartyorpartiesthereto,isinbreachofanylicenseofsublicensewithrespecttoanyitemofIntellectualProperty.TheCompanyoritsSubsidiariesownsorhastherighttousepursuanttoavalidlicense,sublicense,agreementorpermissionallitemsofIntellectualPropertyusedintheoperationoftheirbusinessaspresentlyconducted.4.25RealProperty.(a)TheCompanydoesnotownanyrealproperty.Schedule4.25(a)listsanddescribesallrealproperty(togetherwithallImprovementsthereon,the"RealProperty")nowused,operatedoroccupiedbytheCompanyandthenameoftherecordownerthereof.ForeachparcelofRealPropertylistedonSchedule4.25(a),theCompanyhasmadeavailabletothePurchasertrueandcorrectcopiesoftheRealPropertyleaseorsublease(eacha"RealPropertyLease")withrespecttosuchRealProperty.EachRealPropertyLeaseislegal,valid,binding,enforceableandinfullforceandeffectinallmaterialrespects,andtheCompanyhasnotassigned,transferred,conveyed,mortgaged,deededintrustorencumberedanyinterestintheleaseholdorsubleasehold.TheCompanyenjoyspeacefulandundisturbedpossessionofallRealPropertyleasedbyit,andtheCompanyhasfulfilledinallmaterialrespectsalltheobligationsrequiredtobeperformedbyeitherofthemthroughthedatehereofwithrespecttoeachRealPropertyLease.(b)TheCompanyhasreceivedallrequiredmaterialapprovalsofGovernmentalAuthorities(includingPermitsandmaterialcertificatesofoccupancyorothersimilarcertificatespermittinglawfuloccupancyoftheRealProperty)requiredinconnectionwiththepresentuseoftheRealPropertyandalltheImprovementsthereon.(c)AlltheRealPropertyissuppliedwithutilitiesandotherservicesnecessaryfortheoperationofsuchfacilitiesascurrentlyoperated.(d)AllImprovements,andallFixturesandequipmentandothertangibleassetsowned,leasedorusedbytheCompanyontheRealPropertyareingoodconditionandrepairinallmaterialrespects,subjecttonormalwearandtear.(e)TheCompanyhasnotreceivednoticeofanyspecialassessmentrelatingtoanyRealPropertyoranyportionthereof,andtheSellerhasnoknowledgeofanypendingorthreatenedspecialassessment.(f)Thereisnotnowpending,ortotheknowledgeoftheSeller,threatened,anyeminentdomainorcondemnationproceedingaffectingtheRealPropertyoranyportionthereof.4.26EuropeanCommunityConcentrationThreshold.ForthefiscalyearendedDecember31,1999theCompany'sanditsSubsidiaries'combinedaggregateNetRevenuesderivedfromproductssoldorservicesrenderedineachofanythreeEuropeanCommunitymembercountries
didnotexceedECU25millionpersuchmembercountry.4.27GovernmentalAuthorities;Consents.AssumingthetruthandcompletenessoftherepresentationsandwarrantiesofPurchasercontainedinthisAgreement,noconsent,approvalorauthorizationof,ordesignation,declarationorfilingwith,anyGovernmentalAuthorityorotherthirdpartyisrequiredonthepartofSellerortheCompanywithrespecttoSeller'sexecutionordeliveryofthisAgreementoranyoftheAncillaryAgreementsortheconsummationofthetransactionscontemplatedherebyorthereby,exceptforapprovals(a)underAntitrustLaws,(b)ofthegovernmentoftheUnitedStatesofAmericaand(c)oftheInspectorofStrategicProducts.4.28NoPendingTransactions.ExceptforthetransactionscontemplatedbythisAgreement,noneofSeller,theCompanyoranyofitSubsidiariesisapartyto,boundbyorthesubjectofanyagreement,undertakingorcommitment:(a)fortheCompanyoranyofitsSubsidiariestomergeorconsolidatewith,oracquireallorsubstantiallyallofthepropertyandassetsof,anyotherPersonor(b)tosell,leaseorexchangeallorsubstantiallyallofitspropertyandassetsoftheCompanyoranyofitsSubsidiariestoanyotherPerson.4.29FullDisclosure.NorepresentationorwarrantymadebySellerinthisAgreement,noranydocument,exhibit,statement,certificateorscheduleattachedtothisAgreementordeliveredbySellerattheClosingtoPurchaserinconnectionwiththetransactionscontemplatedherebycontainsanyuntruestatementofmaterialfactoromitstostateanymaterialfactnecessarytomakethestatementcontainedhereinnotmisleading.ARTICLEV.REPRESENTATIONSANDWARRANTIESOFPURCHASERPurchaserherebyrepresentsandwarrantstoSellerasfollows,exceptasotherwisesetforthontheDisclosureSchedule,whichrepresentationsandwarrantiesare,asofthedatehereof,andwillbe,asoftheClosingDate,trueandcorrect:5.1OrganizationofPurchaser.Purchaserisacorporationdulyorganized,validlyexistingandingoodstandingunderthelawsoftheStateof_________(STATE)withfullcorporatepowerandauthoritytoconductitsbusinessasitispresentlybeingconductedandtoownandleaseitspropertiesandassets.Purchaserisdulyqualifiedtodobusinessasaforeigncorporationandisingoodstandingineachjurisdictionwherethecharacterofitspropertiesownedorleasedorthenatureofitsactivitiesmakesuchqualificationnecessary,exceptwherethefailuretobesoqualifiedoringoodstandingwouldnothaveaMaterialAdverseEffectonitsbusiness.5.2Authorization.Purchaserhasallrequisitecorporatepowerandauthority,andhastakenallcorporateactionnecessary,toexecuteanddeliverthisAgreementandtheAncillaryAgreements,toconsummatetheTransactionsandtoperformitsobligationshereunderandthereunder.TheexecutionanddeliveryofthisAgreementandtheAncillaryAgreementsbyPurchaserandtheconsummationbyPurchaseroftheTransactionshavebeendulyapprovedbytheboardofdirectorsofPurchaser.NoothercorporateproceedingsonthepartofPurchaserarenecessarytoauthorizethisAgreementandtheAncillaryAgreementsandthetransactionscontemplatedherebyandthereby.ThisAgreementhasbeendulyexecutedanddeliveredbyPurchaserandis,anduponexecutionanddeliveryoftheAncillaryAgreements,suchAncillaryAgreementswillbe,legal,validandbindingobligationsofPurchaserenforceableagainstitinaccordancewithitsterms.5.3NoConflictorViolation.Neithertheexecution,deliveryorperformanceofthisAgreement
northeconsummationofthetransactionscontemplatedhereby,norcompliancebyPurchaserwithanyoftheprovisionshereof,violatesanyprovisionof,orwillresultinthebreachof,anyapplicablelaw,ruleorregulationofanygovernmentalbody,thecertificateofincorporation,bylawsorotherorganizationaldocumentsofPurchaser,oranymaterialagreement,indentureorotherinstrumenttowhichPurchaserisapartyorbywhichPurchasermaybebound,orofanyorder,judgmentordecreeapplicabletoanyofthem,orterminateorresultintheterminationofanysuchagreement,indentureorinstrument,orconstituteanyeventwhich,afternoticeorlapseoftimeorboth,wouldresultinanysuchviolation,breach,acceleration,terminationorresultinaviolationorrevocationofanyrequiredlicense,permitorapprovalfromanyGovernmentalAuthorityorotherthirdparty.5.4GovernmentalAuthorities;Consents.AssumingthetruthandcompletenessoftherepresentationsandwarrantiesofSellerandtheCompanycontainedinthisAgreement,noconsent,approvalorauthorizationof,ordesignation,declarationorfilingwith,anyGovernmentalAuthorityorotherthirdpartyisrequiredonthepartofPurchaserwithrespecttoPurchaser'sexecutionordeliveryofthisAgreementortheconsummationofthetransactionscontemplatedhereby,exceptforapprovals(a)underAntitrustLaws,(b)oftheUnitedStatesDepartmentofStateand(c)oftheInspectorofStrategicProducts.5.5Brokers'Fees.Nobroker,finder,investmentbankerorotherPersonisentitledtoanybrokeragefee,finders'feeorothercommissionforwhichSellercouldbecomeliableinconnectionwiththetransactionscontemplatedbythisAgreementbaseduponarrangementsmadebyPurchaseroranyofitsAffiliates.ARTICLEVI.COVENANTSOFSELLER6.1ConductofBusiness.(a)FromthedatehereofthroughtheClosingDate,Selleragreesthatitshall,andshallcausetheCompanyanditsSubsidiaries,exceptasotherwisecontemplatedbythisAgreement,assetforthonSchedule6.1orasconsentedtobyPurchaserinwriting,tooperatetheirbusinessesintheordinarycourseandconsistentwithpastpracticeandnottotakeanyactioninconsistentwiththisAgreement.Withoutlimitingthegeneralityoftheforegoing,unlessconsentedtobyPurchaserinwriting,SellershallcausetheCompanyanditsSubsidiariesnotto,exceptascontemplatedbythisAgreement,takeanyoftheactionssetforthinclauses(i)through(xvii)below;provided,however,thattherestrictionsimposedupontheCompany'sSubsidiariesbyoperationofthisSection6.1shallnotapplytotheHaaglundsJointVenture,otherthanrestrictionsontheCompanywithrespecttotheHaaglundsJointVentureanditsownershipinteresttherein:(i)changeoramendthearticlesofassociationorotherorganizationaldocumentsofCCCoritsSubsidiaries;(ii)declareorpayanydividends,ormakeanydistributionsinrespectoftheSharesorotherequityinterestsoftheCompany,orrepurchaseorredeemanyoftheSharesorotherequityinterestsoftheCompany;(iii)issueorsellanysharesofcapitalstockoftheCompanyoranyofitsSubsidiariesoranyotherequityinterestoranybeneficialinteresttherein(including,withoutlimitation,anyoptionsorwarrants);(iv)enterinto,extend,materiallymodify,terminateorrenewanyContractofatyperequiredtobe
listedonSchedule4.10otherthanintheordinarycourseofbusiness;(v)sell,assign,transfer,convey,leaseorotherwisedisposeofanyinterestintheRealPropertyoranyothermaterialassetoftheCompanyoranyofitsSubsidiariesotherthansalesofinventoryintheordinarycourseofbusiness;(vi)exceptasotherwiserequiredbyLaworconsistentwithpastpractices,takeanyactionwithrespecttothegrantofanyseveranceorterminationpay(otherthanpursuanttopoliciesoragreementsoftheCompanyasthecasemaybe,ineffectonthedatehereof);(vii)makeanychangeinthekeymanagementstructureoftheCompany,including,withoutlimitation,thehiringofadditionalofficersortheterminationsofexistingofficers;(viii)acquirebymergerorconsolidationwith,ormergeorconsolidatewith,orpurchasesubstantiallyalloftheassetsof,orotherwiseacquireanymaterialassetsorbusinessofanyotherPerson;(ix)makeanymaterialloansoradvancestoanyPerson;(x)makeanymaterialTaxelection;(xi)failtomaintainanymaterialassetinsubstantiallyitscurrentstateofrepair,normalwearandtearexcepted;(xii)makeanymaterialchangeinitsaccountingpoliciesorpractices;(xiii)makeoragreetomakeaggregatecapitalexpendituresinexcessof_________SEK;(xiv)waive,settleorreleaseanyclaimorcauseofactionoftheCompany;(xv)declareorissueanybonusorothersuchpayments,whetherornotintheordinarycourseofbusiness,toanymanagementorexecutiveemployeesofCompanyoritsSubsidiaries;(xvi)alter,amendorinanywaymodifyanyAncillaryAgreement(xvii)enterintoanyagreement,orotherwisebecomeobligated,todoanyactionprohibitedhereunder;(b)Selleragreesthat,priortotheClosing,itshall,andshallcausetheCompanyto,usecommerciallyreasonableeffortsto(i)preservesubstantiallyintactthebusinessorganizationoftheCompanyanditsSubsidiaries,(ii)keepavailabletoPurchasertheservicesofthekeyemployeesoftheCompanyanditsSubsidiariesand(iii)preservethecurrentrelationshipsoftheCompanywiththematerialcustomersandsuppliersof,andotherPersonswhichhavesignificantbusinessrelationshipswith,theCompanyanditsSubsidiariessubjectinallcasestotheexerciseofreasonablebusinesspractice.6.2ForeignSalesAgreements.SellershallusecommerciallyreasonableeffortstotakesuchactionsasarespecifiedonSchedule6.2withrespecttoeachoftheFSAsspecifiedthereon.6.3AntitrustFilings.Inconnectionwiththetransactionscontemplatedhereby,theSellershallcomply(and,totheextentrequired,shallcausetheCompanyanditsSubsidiariesortheSellerAffiliates,asapplicable,tocomply)withthenotificationandreportingrequirementsunderallapplicableAntitrustLawsandshallusetheirrespectivebesteffortstoobtainanyconsentrequiredunderandearlyterminationofanyapplicablewaitingperiodundersuchAntitrustLaws;provided,however,thatinnoeventshallSelleroranyofitsAffiliatesberequiredtosellorretainanyoftheassetsoftheCompanyoranyoftheCompany'sSubsidiariestoobtainsuchconsentorearlytermination.Sellershall(and,totheextentrequired,shallcausetheCompanyoritsAffiliatesto)substantiallycomplywithanyadditionalrequestsforinformation,includingrequestsforproductionofdocumentsandproductionofwitnessesforinterviewsordepositions,byanyGovernmentalAuthority.
6.4NoSolicitations.FromthedatehereofthroughtheClosingDate,SellerandtheCompanyshallnot,andshallnotknowinglypermitanyoftheirAffiliates,officers,directors,employees,trustees,representativesandagentsto,directlyorindirectly,encourage,solicit,participateinorinitiatediscussionsornegotiationswith,orprovideanyinformationto,anyPersonorgroupofPersons(otherthanPurchaseroranyofitsAffiliates)concerninganymerger,saleofassets,saleofsharesofcapitalstockorsimilartransactionsinvolvingtheCompanyoranyofitsSubsidiaries.Sellershall(a)immediatelynotifyPurchaser(orallyandinwriting)ifanydiscussionsornegotiationsaresoughttobeinitiated,anyinquiryorproposalismadewithrespecttotheCompanyoranyofitsSubsidiariesoranyoftheirrespectiveassetsorproperties,and(b)inrespectoftheCompany,includeinsuchnotificationthetermsofanysuchproposalorofferthatitmayreceivewithrespectthereto(andprovidePurchaserwithacopythereofinwriting),includingtheidentityofthesolicitingpartyand(c)keepPurchaserinformedwithrespecttothestatusoftheforegoing.6.5NoticetoPurchaser.SellerwillpromptlynotifyPurchaserofanycircumstance,eventoractionbySeller,theCompanyorotherwise,thatcausesanyrepresentationorwarrantymadebySellerortheCompanyinthisAgreementtobeinaccurateorincompleteinanymaterialrespectorthatmayhaveaMaterialAdverseEffectandthathasnotbeendisclosedintheDisclosureSchedules.6.6Consents;ReasonableEffort.UnlesswaivedspecificallyinwritingbyPurchaser,SellerwillusecommerciallyreasonableeffortstoobtaininwritinganyconsentsofanyGovernmentalAuthorityorotherthirdparty(pursuanttoanyMaterialContract,Permitorotherwise)necessaryfortheconsummationoftheTransactions,ineachcase,inaformreasonablyacceptabletoPurchaseranditscounsel.6.7Inspections.PriortotheClosing,SellerandtheCompanyshallprovidePurchaseranditsrepresentatives(including,withoutlimitation,itsengineers,surveyors,attorneysandaccountants),reasonableaccessduringnormalbusinesshourstotheRealPropertyandotherassetsoftheCompanyanditsSubsidiaries.AtalltimespriortoClosing,Purchaseranditsrepresentatives,uponreasonablepriornoticetotheCompanyshallhavetherighttohaveaccesstotheCompany'sanditsSubsidiaries'employees,agentsandrepresentativestoreviewallBooksandRecordsoftheCompany,includingalltheRealEstateRecords,toenterontotheRealProperty,andtoinspect,examineandsurveytheRealPropertyorforanyotherreasonablebusinesspurpose;providedthatsuchaccessshallbegiveninsuchamannersoasnottounreasonablyinterferewiththeconductofthebusinessoftheCompanyanditsSubsidiaries.NeithertheSellernortheCompanyshallberequiredtoviolateanyLaworanyorderfromanyGovernmentalAuthoritytocomplywiththeprovisionsofthisSection6.7(includinganyAntitrustLawrestrictingthedisclosureofthepriceandothertermsofanypendingorfuturebid,iftheprovisionofsuchinformationtoPurchasercouldreasonablybedeemedtobecollusionorpricefixinginviolationofsuchAntitrustlaw).ForthepurposesofthisSection6.7,theSubsidiariesoftheCompanyshallnotincludetheHaaglundsJointVenture.6.8FinancialStatements.Within_________(day)aftertheendofeachcalendarmonth,theCompanyshallprovidePurchaserwithmonthlyfinancialstatements,includingabalancesheetoftheCompanyasofthelastBusinessDayofsuchmonthandtherelatedincomestatementwithrespecttosuchperiod.Suchinterimfinancialstatementsshall(a)beinaccordancewiththeBooksandRecordsoftheCompany,(b)bepreparedinaccordancewithGAAPandtheAccountingPrinciplesconsistentlyappliedthroughouttheperiodscoveredthereby(exceptfortheabsenceoffootnotesandotherpresentationitemsandnormalyearendadjustments,whichindividuallyandin
theaggregatewillnotbematerial)and(c)presentfairlyandaccuratelyinaccordancewithGAAPtheassets,liabilities(including,withoutlimitation,allreserves)andfinancialconditionoftheCompanyasoftherespectivedatesthereofandtheresultsofoperationsfortheperiodscoveredthereby.TheCompanyshallnotberequiredtoviolateanyLaworanyorderfromanyGovernmentalAuthoritytocomplywiththeprovisionsofthisSection6.8.6.9Section338Election.SelleracknowledgesthatPurchaserhastherighttomakeanelectionpursuanttoSection338(g)oftheInternalRevenueCodeof_________(year),asamended(the"Code"),withrespecttotheacquisitionofthestockoftheCompanyandrepresentsthattheCompanyisnotandwasnota"controlledforeigncorporation,"a"passiveforeigninvestmentcompany"oraforeignpersonalholdingcompany",aseachsuchtermisdefinedintheCode,atanytimeduringtheportionoftheCompany'staxableyearthatendsontheClosingDate.IntheeventPurchaserdeterminesthatitintendstomakesuchanelection,PurchaseshallsonotifySeller.Within_________(day)ofthedateofPurchaser'snoticetoSeller,SellershallcausePricewaterhouseCooperstoreviewthetaxconsequencesofsuchelectiontodeterminewhethersuchelectionwouldresultinanymaterialtaxliabilitytoSelleranditsSubsidiaries.IfPricewaterhouseCoopersdeterminesthatsuchamaterialtaxliabilitywillresultitshalldeliverawrittenopinionstatingitsdeterminationonorpriortotheendofsuch_________(day)period.PurchaseragreestopaythereasonablefeesofPricewarterhouseCooperswithrespecttosuchdeterminationandforthepreparationanddeliveryofsuchopinion,ifany.IfSellerfailstodelivertoPurchasersuchopinionwithinsuch_________(day)period,thenPurchasershallbefreetomaketheelectionwithoutanyfurtherobligationtoSeller.IfSellerdeliverssuchopiniontoPurchaserwithinsuch30-dayperiod,thenPurchasermaymaketheelection;provided,however,thatPurchasershallindemnifySellerforallmaterialtaxliabilitiesincurredbySelleroritsSubsidiariesasaresultofPurchaser'selection.ARTICLEVII.COVENANTSOFPURCHASER7.1AntitrustFilings.InconnectionwiththetransactionscontemplatedbythisAgreement,Purchasershallcomply(and,totheextentrequired,shallcauseitsAffiliatestocomply)withthenotificationandreportingrequirementsoftheallapplicableAntitrustLawsandshalluseitsreasonablebesteffortstoobtainanyconsentrequiredunderanearlyterminationofanywaitingperiodsundersuchAntitrustLaws;provided,however,innoeventshallPurchaseroritsAffiliatesberequiredtodivestorholdseparateanyoftheirassetsoragreetotheCompanyoritsSubsidiariesdivestingorholdinganyoftheirrespectiveassetsseparately.Purchasershall(and,totheextentrequired,shallcauseitsAffiliatesto)substantiallycomplywithanyadditionalrequestsforinformation,includingrequestsforproductionofdocumentsandproductionofwitnessesforinterviewsordepositions,byanyGovernmentalAuthority.7.2NoticetoSellerandtheCompany.PurchaserwillpromptlynotifySellerandtheCompanyofanycircumstance,eventoractionbyPurchaserorotherwise,thatcausesanyrepresentationorwarrantymadebyPurchaserinthisAgreementtobeinaccurateorincompleteinanymaterialrespectorthatmayhaveaMaterialAdverseEffectandthathasnotbeendisclosedintheDisclosureSchedules.7.3StateDepartmentApproval.PurchasershallusecommerciallyreasonableeffortstoobtainthefinalapprovaloftheUnitedStatesDepartmentofStatewithrespecttothetransactions
contemplatedhereby.ARTICLEVIII.COVENANTSOFSELLERANDPURCHASER8.1Confidentiality.(a)Except(i)foranygovernmentalfilingsrequiredinordertocompletethetransactionscontemplatedherebyorbytheAncillaryAgreements,(ii)asPurchaser,theSellermayagreeorconsentinwritingand(iii)asprovidedinSection12.12,allinformationreceivedbyPurchaser,theCompanyorSellerandtheirrespectiverepresentativespursuanttothetermsofthisAgreementorotherwiseheretoforeprovidedtothereceivingpartyinconnectionwiththetransactionscontemplatedherebyshallbekeptinconfidencebythereceivingpartyanditsrepresentativesandshallnotbeusedinanymannerbysuchpartyoritsrepresentativesexceptinconnectionwithitsperformanceorpreparingtoperformunderthisAgreement;provided,however,thatanypartyheretomaydisclosesuchinformationtoitslegalandfinancialadvisors,lenders,financingsourcesandtheirrespectivelegaladvisorsandrepresentativessolongassuchPersonsagreetomaintaintheconfidentialityofsuchinformationinaccordancewiththisSection8.1.FollowingtheClosing,Sellershallnot,andshallcauseitsAffiliatesnotto,useordisclosetoanyPersonanyconfidentialorproprietaryinformationoftheCompanyortheMMMJointVenture.Ifthetransactionscontemplatedherebyshallfailtobeconsummated,allcopiesofdocumentsorextractsthereofcontaininginformationanddataastooneoftheotherparties,includingallinformationpreparedbythereceivingpartyorsuchreceivingparty'srepresentatives,shallbeturnedovertothepartyfurnishingsame,exceptthatsuchinformationpreparedbythereceivingpartyorsuchreceivingparty'srepresentativesmaybedestroyedattheoptionofthereceivingparty,withnoticeofsuchdestruction(orreturn)tobeconfirmedinwritingtothedisclosingparty.Anyinformationnotsodestroyed(orreturned)willremainsubjecttotheseconfidentialityprovisions(notwithstandinganyterminationofthisAgreement).(b)Theforegoingconfidentialityprovisionsshallnotapplytosuchportionsoftheinformationreceivedwhich(i)areorbecomegenerallyavailabletothepublicthroughnoactionbythereceivingpartyorbysuchparty'srepresentatives,(ii)arerequiredtobedisclosedbyjudicialoradministrativeprocessorbyotherrequirementsofLaw,or(iii)areorbecomeavailabletothereceivingpartyonanonconfidentialbasisfromasource,otherthanthedisclosingpartyoritsrepresentatives,whichthereceivingpartybelieves,afterreasonableinquiry,isnotprohibitedfromdisclosingsuchportionstoitbyacontractual,legalorfiduciaryobligation,andshallnotapplytoanydisclosurebyPurchaserortheCompanyaftertheClosing.8.2CooperationandRecordsRetention.AftertheClosingDate,Sellershall(a)providetheCompanywithsuchassistanceasmayreasonablyberequestedbyitinconnectionwiththepreparationofanyreturn,audit,orotherexaminationbyanytaxingauthorityorjudicialoradministrativeproceedingsrelatingtoliabilityforanytaxes,(b)providetheCompanywithanyrecordsorotherinformationthatmayberelevanttosuchreturn,auditorexamination,proceedingordetermination,and(c)providetheCompanywithanyfinaldeterminationofanysuchauditorexamination,proceeding,ordeterminationthataffectsanyamountrequiredtobeshownonanytaxreturnforanyperiod.Withoutlimitingthegeneralityoftheforegoing,Sellershallretain,untiltheapplicablestatutesoflimitations(includinganyextensions)haveexpired,copiesofalltaxreturns,supportingworkschedules,andotherrecordsorinformationthatmayberelevanttosuch
returnsforalltaxperiodsorportionsthereofendingonorbeforetheClosingDate.8.3IndiaGuaranteeAgreement.PriortotheClosing,PurchaserandSellershallnegotiateingoodfaithExhibitBtotheIndiaGuaranteeAgreement,acopyofwhichagreement(exceptforExhibitB)isattachedasAnnexAheretoandeachofPurchaserandSellershallexecuteacopyofsuchAgreementattheClosing.ARTICLEIX.CONDITIONSTOOBLIGATIONS9.1ConditionstoObligationsofPurchaserandSeller.TheobligationsofPurchaserandSellertoconsummate,orcausetobeconsummated,thetransactionscontemplatedherebyaresubjecttothesatisfactionofthefollowingconditions,anyoneormoreofwhichmaybewaivedinwritingbysuchparties:(a)Allmaterialpermits,approvals,clearances,andconsentsof,andallfilingswith,GovernmentalAuthorities(includingapprovalsunderallapplicableAntitrustLawsandtheapprovaloftheInspectorofStrategicProductsandtheUnitedStatesDepartmentofState)inallapplicablejurisdictionsrequiredtobeprocuredbyPurchaser,SellerortheCompanyinconnectionwiththetransactionscontemplatedherebyshallhavebeenprocuredorfiledandallapplicablewaitingperiodsinconnectiontherewithshallhaveexpiredorbeenterminated.(b)Thereshallnotbeinforceanyorderordecree,statute,ruleorregulationnorshalltherebeonfileanycomplaintbyaGovernmentalAuthorityseekinganorderordecree,restraining,enjoiningorprohibitingtheconsummationofthetransactionscontemplatedherebyorbytheAncillaryAgreementsandnoneofPurchaser,SellerortheCompanyshallhavereceivednoticefromanyGovernmentalAuthoritythatithasdeterminedtoinstituteanysuitorproceedingtorestrainorenjointheconsummationofthetransactionscontemplatedherebyorbytheAncillaryAgreementsortonullifyorrenderineffectivethisAgreementoranyoftheAncillaryAgreementsifconsummated,ortotakeanyotheractionwhichwouldresultintheprohibitionoramaterialchangeinthetermsofthetransactionscontemplatedherebyorbytheAncillaryAgreements.(c)SellershallhavedeliveredacertifiedsetofDisclosureSchedulesandeither(i)PurchasershallnothavedeliveredtoSellerawrittennoticeobjectingtosuchDisclosureSchedulesinaccordancewithSection2.6or(ii)anysuchobjectionshallhavebeenresolvedorwithdrawninamannermutuallysatisfactorytoeachofPurchaserandSeller.9.2ConditionstoObligationsofPurchaser.TheobligationsofPurchasertoconsummate,orcausetobeconsummated,thetransactionscontemplatedherebyaresubjecttothesatisfactionofthefollowingadditionalconditions,anyoneormoreofwhichmaybewaivedinwritingbyPurchaser:(a)EachoftherepresentationsandwarrantiesofSellercontainedinthisAgreementshallbetrueandcorrectinallmaterialrespectsbothonthedatehereofandasoftheClosing,asifmadeatandasofthattime,andeachofthecovenantsandagreementsofSellertobeperformedasoforpriortotheClosingshallhavebeendulyperformedinallmaterialrespects.(b)SellershallhavedeliveredtoPurchaseracertificatesignedbySeller,datedasoftheClosingDate,certifyingthat,theconditionsspecifiedinSection9.1,astheyrelatetoSellerandtheCompany,andSection9.2havebeenfulfilled.(c)AnyconsentrequiredfortheconsummationofthetransactionscontemplatedherebyunderanyMaterialContractorforthecontinuedenjoymentbytheCompanyoritsSubsidiariespartytheretoofthebenefitsofanysuchMaterialContractaftertheClosingshallhavebeenobtained.
(d)Thereshallnothaveoccurredanymaterialadversechangeinthebusiness,assets,liabilities,condition(financialorotherwise),resultsofoperationorprospectsoftheCompany.(e)AllPersonslistedonSchedule9.2(e)whoaremembersoftheBoardofDirectorsoftheCompanyshallhaveresignedsuchdirectorships,effectiveasoftheClosingDateuponacceptancebyPurchaser.(f)Purchasershallhavereceivedanopinion,datedasoftheClosingDate,fromcounseltoSeller,inaformreasonablysatisfactorytoPurchaseranditscounsel.(g)SellerandtheCompanyshallhavedeliveredallassignments,consents,approvalsandotherdocuments,certificatesandinstrumentstobedeliveredbytheSelleraccordingtothisAgreementtothePurchaser(h)Theformofallactions,proceedings,instrumentsanddocumentsrequiredtoconsummatethetransactionscontemplatedherebyshallbesatisfactoryinallreasonablerespectstoPurchaseranditscounsel.(i)NoneofSeller,itsSubsidiariesortheCompanyshallhaveamendedanyoftheAncillaryAgreementsasineffectasofthedatehereofwithoutthepriorwrittenconsentofPurchaser.(j)SellershallhavedeliveredtoPurchaserthecertificateevidencingthefloatingchargeagainsttheassetsoftheCompanyorshallotherwiseprovideevidenceofitscancellationasisreasonablyacceptabletoPurchaseranditscounsel.(k)SellerandthePurchasershallhaveagreedontheformofExhibitBtotheIndiaGuaranteeAgreementandSellershallhaveexecutedanddeliveredacopyofsuchAgreementtoPurchaser.9.3ConditionstotheObligationsofSeller.TheobligationsofSellertoconsummatethetransactionscontemplatedherebyaresubjecttothesatisfactionofthefollowingadditionalconditions,anyoneormoreofwhichmaybewaivedinwritingbySeller:(a)EachoftherepresentationsandwarrantiesofPurchasercontainedinthisAgreementshallbetrueandcorrectinallmaterialrespectsbothonthedatehereofandasoftheClosing,asifmadeanewatandasofthattime,andeachofthecovenantsandagreementsofPurchasertobeperformedasoforpriortotheClosingshallhavebeendulyperformedinallmaterialrespects.(b)PurchasershallhavedeliveredtoSellerandtheCompanyacertificatesignedbyanofficerofPurchaser,datedasoftheClosingDate,certifyingthat,theconditionsspecifiedinSection9.1,astheyrelatetoPurchaser,andSection9.3havebeenfulfilled.(c)Theformandsubstanceofallactions,proceedings,instrumentsanddocumentsrequiredtoconsummatethetransactionscontemplatedherebyshallbereasonablysatisfactoryinallrespectstoSellerandSeller'scounsel.(d)LLLshallhavereleasedSellerfromanyobligationunderthePensionGuarantee.(e)SellershallhavebeenunconditionallyreleasedfromeachofthePerformanceGuarantees,orwithrespecttoanyPerformanceGuaranteesforwhichitshallnothavebeenunconditionallyreleased,SellershallhavereceivedaguaranteefromPurchaserwithrespecttoSeller'sobligationsthereunderinaformreasonablyacceptabletoeachofPurchaserandSeller.(f)PurchasershallhaveobtainedastatementfromtheU.S.DepartmentofStateonbehalfoftheUnitedStatesgovernmentreasonablysatisfactorytoSellertotheeffectthat,uponcompliancewiththeprovisionsregardingthecordoningoffofCCC'sactivitiesrelatedtoIndiaassetforthinthatcertainletterfromPurchasertotheU.S.DepartmentofStatedatedasof_________(M/D/Y),theU.S.GovernmentwillnotaffectCCC'sbusinessactivitiesrelatedtoIndia.(g)TheCompanyshallhaveexecutedtheEscrowAgreementandshallhavewiredtotheEscrow
AgenttheinitialamounttobeheldintheEscrowAccountinaccordancewithSection11.7(b).(h)SellerandthePurchasershallhaveagreedontheformofExhibitBtotheIndiaGuaranteeAgreementandPurchasershallhaveexecutedanddeliveredacopyofsuchAgreementtoSeller.ARTICLEX.TERMINATION10.1Termination.ThisAgreementmaybeterminatedasfollows:(a)BymutualwrittenconsentofthepartiesatanytimepriortotheClosing.(b)PriortotheClosing,bywrittennoticetoSellerfromPurchaser,(i)intheeventofamaterialbreachofthisAgreementbytheCompanyortheSellerifsuchbreachingpartyfailstocuresuchbreachwithinten(10)BusinessDaysfollowingnotificationthereofbythePurchaser,(ii)iftheClosinghasnotoccurredonorbefore_________(M/D/Y)andPurchaserisnotinmaterialbreachofarepresentation,warranty,covenantoragreementor(iii)ifconsummationoftheTransactionsisenjoined,prohibitedorotherwiserestrainedbythetermsofafinal,non-appealableorderorjudgmentofacourtofcompetentjurisdiction.(c)PriortotheClosing,bywrittennoticetoPurchaserfromSeller,(i)intheeventofamaterialbreachofthisAgreementbyPurchaser,ifPurchaserfailstocuresuchbreachwithinten(10)BusinessDaysfollowingwrittennotificationthereofbySellerortheCompany,(ii)iftheClosinghasnotoccurredonorbefore_________(M/D/Y)andSellerisinmaterialbreachofarepresentation,warranty,covenantoragreementofeitherSellerortheCompanyor(iii)ifconsummationoftheTransactionsisenjoined,prohibitedorotherwiserestrainedbythetermsofafinal,non-appealableorderorjudgmentofacourtofcompetentjurisdiction.10.2EffectofTermination.IntheeventofterminationofthisAgreementpursuanttoSection10.1,thisAgreementshallforthwithbecomevoidandhavenoeffect,withoutliabilityonthepartofanypartyheretoortheirrespectiveAffiliates,officers,directorsorstockholders,otherthanliabilityofSeller,orPurchaserasthecasemaybe,foranymisrepresentationcontainedherein,oranybreachofthisAgreementoccurringpriortosuchtermination.TheprovisionsofSection10.1andthisSection10.2shallsurviveanyterminationofthisAgreement.10.3RiskofLoss.IfanymaterialportionoftheassetsoftheCompanyoritsSubsidiaries(the"Assets")isdestroyedordamagedbyfireoranyothercauseonorpriortotheClosingDate,theSellershallgivewrittennoticetoPurchaserassoonaspracticableafter,butinanyeventwithinfive(5)calendardaysof,discoveryofsuchdamageordestruction,includingspecificationoftheamountofinsurance,ifany,coveringsuchAssetsandtheamount,ifany,thatSellerortheCompanyareotherwiseentitledtoreceiveasaconsequenceofsuchdamageordestruction.PriortotheClosing,Purchasershallhavetheoption,whichshallbeexercisedbywrittennoticetotheCompanywithin_________BusinessDaysafterreceiptoftheCompany'snoticeoriftherearenot_________BusinessDayspriortotheClosingDate,assoonaspracticablepriortotheClosingDate,of(a)acceptingsuchAssetsintheirdestroyedordamagedconditioninwhicheventPurchasershallbeentitledtotheproceedsofanyinsuranceorotherproceedspayablewithrespecttosuchloss,orthecashequivalentthereof,andsubjecttoArticleXII,tosuchindemnificationforanyuninsuredportionofsuchlosspursuanttoArticleXII,andthefullClosingCashConsiderationshallbepaidtoSellerattheClosing,(b)ifagreedbySeller,excludingsuchAssetsfromthisTransactions,inwhicheventtheClosingCashConsiderationshallbereducedbytheamountallocatedtosuchAssets,asmutuallyagreedbetweentheparties,or(c)afterproviding
SellerandtheCompanywithareasonableopportunitytocure,terminatingthisAgreementinaccordancewithArticleX,ifsuchdamageordestructionhasaMaterialAdverseEffectorresultsinanyrepresentationorwarrantyofSellercontainedhereinbeinguntrueinanymaterialrespect.SolelyforpurposesofthisSection10.3,"Subsidiaries"shallnotincludetheMMMJointVenture.ARTICLEXI.POSTCLOSINGOBLIGATIONS;SURVIVALOFREPRESENTATIONThepartiescovenantandagreeasfollowswithrespecttotheperiodsubsequenttotheClosingDate:11.1Indemnification.(a)Purchaser'sRighttoIndemnification.SellerundertakesandagreessubjecttothetermsandconditionsofthisAgreementtoindemnifyandholdharmlessPurchaser,itsstockholders,Affiliates,successorsandassignsandtheirrespectivedirectors,officers,employees,shareholders,representativesandagents(hereinafterreferredtocollectivelyas"PurchaserIndemnitees")fromandagainstandinrespectofanyandalllosses,costs,liabilities,claims,obligations,damagesandexpenses,includingreasonableattorneys'fees(together"Claims"),incurredorsufferedbyaPurchaserIndemniteearisingfromorrelatingto(i)anybreach,misrepresentation,orotherviolationofanyoftheSeller'scovenants,warrantiesorrepresentationscontainedinthisAgreement;(ii)anyPre-ClosingEnvironmentalMatters;(iii)anyClaimbyMMMoritsAffiliatesrelatingtoanydefaultbytheCompanyunderanyagreementwithrespecttotheMMMJointVenture,includinganyClaimwithrespecttotherespectiveworksharesofCCCandMMMwithrespectthereto,totheextentthatsuchClaimrelatestoworkperformedorrevenueaccruedpriortotheClosingDate;(iv)salespursuanttothesupplyContractand/orlicenseagreementsbetweenthepresidentofIndiaandABNNNeachdatedasofMarch24,1986totheextentsuchClaimarisesfromactionsorobligationsofCelsius,itsAffiliatesortheirrepresentatives;(v)theoperationofthebusinessofJJJ,whetherbefore,onoraftertheClosingDate,includingthetransferofsharesofthecapitalstockofJJJtoSeller;or(vi)anyandallactions,suits,proceedings,claimsdemands,assessments,judgments,costsandexpensesincidenttoanyoftheforegoingorincurredtoopposetheimpositionthereof,orinenforcingthisindemnity;togetherwithinterestatthePrimeRate(asdefinedbelow)onanysuchClaimfromthedateofincurrencebysuchPurchaserIndemnitee(s)untilthedateofreimbursementbySeller."PrimeRate"shallmeantheprimerateaspublishedintheMoneyRatescolumnoftheEasternEditionoftheWallStreetJournal(ortheaverageofsuchratesifmorethanonerateisindicated),ineffectonthedateofincurrenceofsuchClaim.(b)Seller'sRighttoIndemnification.Purchaserundertakesandagreestoindemnify,defendbycounselreasonablyacceptabletoSellerandholdharmlessSeller,itsrepresentativesandagents(hereinafterreferredtocollectivelyas"SellerIndemnitees")fromandagainstandinrespectofanyandallClaimsarisingfromorrelatingto(i)abreach,misrepresentation,orotherviolationofanyofPurchaser'scovenants,warrantiesandrepresentationscontainedinthisAgreement;and(ii)anyandallactions,suits,proceedings,claims,demands,assessments,judgments,costsandexpenses,incidenttoanyoftheforegoingorincurredtoopposetheimpositionthereof;togetherwithinterestatthePrimeRateonanysuchclaimfromthedateofincurrencebysuchSellerIndemnitee(s)tothedateofreimbursementbyPurchaser.(c)ConductofProceedings.Ifanyclaimorproceedingcoveredbytheforegoingagreementsto
indemnifyandholdharmlessshallarise,thepartywhoseeksindemnification(the"IndemnifiedParty")shallgivewrittennoticethereoftotheotherparty(the"Indemnitor")promptlyaftertheIndemnifiedPartylearnsoftheexistenceofsuchclaimorproceeding;provided,however,thattheIndemnifiedParty'sfailuretogivetheIndemnitorpromptnoticeshallnotbartheIndemnifiedParty'srighttoindemnificationunlesssuchfailurehasmateriallyprejudicedtheIndemnitor'sabilitytodefendtheclaimorproceeding,(i)takecontrolofthedefenseandinvestigationofsuchclaimorproceeding,(ii)employandengageattorneysofitsownchoice(subjecttotheapprovaloftheindemnifiedparty,suchapprovalnottobeunreasonablywithheld)tohandleanddefendthesame,attheindemnifyingparty'ssolecost,riskandexpense,and(iii)compromiseorsettlesuchclaim,whichcompromiseorsettlementshallbemadeonlywiththewrittenconsentoftheIndemnifiedParty;providedthattheIndemnitorshallnothavetherighttocontrolthedefenseofanysuchclaimorproceedingunlessithasacknowledgedinwritingitsobligationtoindemnifytheIndemnifiedPartyfullyfromallliabilitiesincurredasaresultofsuchclaimorproceedingandthenandperiodicallythereafterprovidestheIndemnifiedPartywithreasonablysufficientevidenceoftheabilityoftheIndemnitortosatisfyanysuchliabilities.Thepartieswillfullycooperateinanysuchaction,andshallmakeavailabletoeachotheranybooksorrecordsusefulforthedefenseofanysuchclaimorproceeding.IftheIndemnitorfailstoacknowledgeinwritingitsobligationtodefendagainstorsettlesuchclaimorproceedingwithintwenty(20)daysafterreceivingnoticethereoffromtheIndemnifiedParty(orsuchshortertimespecifiedinthenoticeasthecircumstancesofthemattermaydictate),theIndemnifiedPartyshallbefreetodisposeofthematter,attheexpenseoftheIndemnitor,inanywayinwhichtheIndemnifiedPartydeemstobeinitsbestinterest.AllpaymentsmadepursuanttoSection11.1ofthisAgreementorpursuanttoanyotherclaimforindemnificationhereundershallbetreatedasanadjustmenttothePurchasePrice.(d)LimitationsonIndemnification.NotwithstandinganythingtothecontraryinthisSection11.1:(i)AnIndemnifyingPartyshallhavenoindemnityobligationsunderthisSection11.1withrespecttoanyClaimsforbreachesofrepresentationsorwarrantiesinthisAgreementuntiltheaggregateamountofallClaimsagainstsuchIndemnifyingPartyexceeds_________(_________(number))SEK,atwhichtimethefullamountofallClaimsagainstsuchIndemnifyingPartyshallbeduewithoutregardtosuchthresholdamount;(ii)InnoeventshalleitherParty'sindemnityobligationsunderthisSection11.1withrespecttoanyClaimsforbreachesofrepresentationsorwarrantiesinthisAgreement,exceptfortherepresentationssetforthinSection4.3,exceed_________(_________(number))SEKplustheamountreceivedbySellerpursuanttoSections2.2(b)and(c)hereof;(iii)InnoeventshalleitherParty'sindemnityobligationsunderthisSection11.1withrespecttoanyClaimsforbreachesofrepresentationsorwarrantiesinthisAgreementapplytoanyClaimfirstassertedaftertheapplicablesurvivalperiodsetforthforsuchClaiminSection11.3;(iv)InnoeventshallSeller'sindemnityobligationsunderthisSection11.1withrespecttoanyClaimsforbreachesoftherepresentationsorwarrantiesinSection4.3ofthisAgreementexceedtheTotalConsiderationagreedtobepaidtoSeller.(v)TheSeller'sindemnityobligationsunderthisSection11.1withrespecttoanyClaims(x)forbreachesoftherepresentationsandwarrantiesoftheSellerinSection4.21ofthisAgreementor(y)pursuanttoSection11.1(a)(ii),shallnotapplyifandtotheextenttheClaimarisesoutoforinconnectionwith(A)anyvoluntaryremedialactionstakenbyPurchaserorPurchaser'ssuccessorin
interest,whichactionsarenotreasonablynecessarytocomplywithanyorderofanyGovernmentalAuthorityinordertocomplywithEnvironmentalLawsor(B)totheextentthatPurchasertakesanyactiontousetheRealPropertyoranyrealpropertyownedorusedbyanyMinoritySubsidiaryforanypurposenotreasonablyrelatedtothebusinessoftheCompanyanditsSubsidiariesassuchbusinessisconductedfromtimetotimehereafter;provided,however,SelleracknowledgesthattheCompanydoesnotcontroltheMinoritySubsidiariesandSellershallnotbereleasedfromitsobligationsiftheothershareholdersoftheMinoritySubsidiariescausetheMinoritySubsidiarytosellthepropertyortootherwisechangetheuseofsuchproperty.(vi)InnoeventshallSeller'sindemnityobligationsunderthisSection11.1extendtoanyClaimsforindirectorconsequentiallossesotherthanindirectorconsequentiallossesclaimedbyanythirdpartyforwhichanyPurchaserIndemniteeisentitledtoindemnificationhereunder.(vii)TheamountofanyindemnityobligationofSellerunderthisSection11.1shallbenetoftheamountofanyreserveontheClosingBalanceSheetwithrespecttotheClaimgivingrisetosuchobligation.(viii)IfanyClaimgivingrisetoanindemnityobligationunderthisSection11.1givesrisetoacurrentlyrealizableTaxBenefit(asdefinedbelow)tothepartymakingsuchClaim,theamountofsuchindemnityobligationshallbereducedbytheamountoftheTaxBenefitavailabletothepartymakingtheClaim.ForpurposesofthisSection11.1(d)(viii),a"TaxBenefit"meansanamountbywhichthetaxliabilityofthepartyisreduced(including,withoutlimitation,bydeduction,reductionsofincomebyvirtueofincreasedtaxbasisorotherwise,entitlementtorefund,creditorotherwise)plusanyrelatedinterestreceivedfromtherelevanttaxingauthority.Whereapartyhasotherlosses,deductions,creditsoritemsavailabletoit,theTaxBenefitfromanylosses,deductions,creditsoritemsrelatingtotheClaimsshallbedeemedtoberealizedonlyaftertheutilizationofsuchotherlosses,deductions,creditsoritems.ForthepurposesofthisSection11.1(d)(viii),aTaxBenefitis"currentlyrealizable"totheextentitcanbereasonablyanticipatedthatsuchTaxBenefitwillberealizedinthecurrenttaxableperiodoryearorinanytaxreturnwithrespecttheretoorinanytaxableperiodoryearpriortothedateoftheClaim.IntheeventthatthereshouldbeadeterminationdisallowingtheTaxBenefit,theindemnifyingpartyshallbeliabletorefundtotheindemnifiedpartytheamountofanyrelatedreductionpreviouslyallowedorpaymentspreviouslymadetotheindemnifyingpartypursuanttothisSection11.1(d)(viii).(e)IndemnificationSoleRemedy.AftertheClosingDate,therighttoindemnificationunderthisArticleXI,subjecttothelimitationssetforthinSection11.1(d),shallbetheexclusiveremedyofanypartyinconnectionwithanybreachbyanotherpartyofitsrepresentations,warranties,orcovenantsoranyotherdefaultunderthisAgreement,andneitherpartyshallmakeorassertanyclaimunderthisAgreementorrelatedtothetransactionscontemplatedbythisAgreement(butnottheAncillaryAgreements),regardlessoftheformofaction,exceptunderandinaccordancewiththisArticleXI,providedthatthisshallnotaffecttheright(a)ofPurchasertomakeaclaimforspecificperformanceasprovidedinSection12.14,or(b)ofeitherpartytomakeaclaimfordamagesarisingfromtheotherparty'swillfulmisrepresentationorwillfulmisconductuptoalimitofthetotalamountpaidtoSellerunderthisAgreement.(f)AnypaymentunderthisArticleXIshallbetreatedbythepartiesasanadjustmenttotheTotalConsiderationfortaxpurposes.11.2SurvivalofRepresentations.Therepresentationsandwarrantiescontainedhereinshallsurvivefortwo(2)yearsaftertheClosingwithoutlimitationandwithoutregardtoany
investigationmadebyanyofthepartieshereto;provided,however,thattherepresentationsandwarrantiesmadebytheCompanyandSellerinSections4.3,4.12and4.21shallsurviveuntil90daysaftertheterminationoftheapplicablestatuteoflimitations(asextendedortolled),butshallinnowaysurvivelongerthanten(10)yearsaftertheClosing.11.3RightsofSet-Off.AnyClaimsbyPurchaseragainstSellerpursuanttoSection11.1abovearesubjecttoanythefollowingrightsofset-offorpayment,attheoptionofPurchaserinitssolediscretion:(a)ReductionofPost-ClosingAdjustment.AnypaymentowedbyPurchasertoSellerpursuanttoSection2.4issubjecttoreductionforanyClaimspursuanttoSection11.1above.Anysuchadjustmentisintendedas,andshallbetreatedbythepartiesas,anadjustmenttotheTotalConsideration.(b)ReductionofEarn-Out.AnypaymentowedbyPurchasertoSellerpursuanttoSection2.2(b)or(c)issubjecttoreductionforanyClaimspursuanttoSection11.1above.Anysuchadjustmentisintendedas,andshallbetreatedbythepartiesas,anadjustmenttotheTotalConsideration.(c)ReductionofPensionRefund.ReductionofEarn-Out.AnypaymentowedbyPurchasertoSellerpursuanttoSection11.4issubjecttoreductionforanyClaimspursuanttoSection11.1above.Anysuchadjustmentisintendedas,andshallbetreatedbythepartiesas,anadjustmenttotheTotalConsideration.11.4PensionRefund.IntheeventthattheCompanyreceivesarefundfromOOO(whetherincashorintheformofacreditbyOOOwhichmaybeappliedbytheCompanyagainsttheobligationtomakefuturepaymentstoOOO),totheextentsuchrefundisnotaccruedontheClosingBalanceSheet,theCompanyshallpromptlypaytoSelleranamountequaltosuchrefund(netofanyTaxestheCompanymustpaythereon)totheextentsuchrefundrelatestoanypaymentmadetoOOObytheCompanypriortotheClosingDate;provided,however,intheeventsuchrefundisissuedintheformofacredit,theCompanyshallnotberequiredtopaysuchamounttoSelleruntiltheearliestdateonwhichtheobligationagainstwhichsuchcreditmaybeappliedisdueandpayablebytheCompany.11.5MMMJointVenture.WithrespecttoallordersreceivedbytheMMMJointVentureforproductsorservicesrelatedtotheCombatVehicle90programfollowingtheClosingDate,PurchasershallcausetheCompanytocomplyinallmaterialrespectswiththedetailedsharingofworktasksbetweenMMMandtheCompanysetforthinAppendix1oftheConsortiumAgreementbetweenHB,NNNandMMMRegardingtheCombatVehicle90,andshallinnoeventmakeanyclaimtoMMMthattheworkloadwithrespecttosuchfutureordersisrequiredtobesharedona50/50basisnotwithstandingthefactthattheallocationofworktaskswithrespecttosuchorderwouldresultintheCompanybeingentitledtolessthanfiftypercent(50%)oftheworksharewithrespecttosuchorderifallocatedinaccordancewithsuchAppendix1.11.6SkaanaReceivable.Intheeventthatthelong-termaccountreceivableowedbySkaanatotheCompanyhasnotbeenpaidinfullonorbefore_________(M/D/Y),PurchaserortheCompanymayprovidewrittennoticetoSellerspecifyingtheamountwhichremainsunpaidasofthedateofsuchnotice(the"UnpaidSkaanaReceivableAmount").Sellershallwithin_________(day)thereafterpaytotheCompanyanysuchUnpaidSkaanaReceivableAmountandtheCompanyshallassignsuchaccountreceivabletoSelleroritsdesignee.IntheeventthatafterreceivingpaymentofthefullUnpaidSkaanaReceivableAmountfromSeller,theCompanythereafterreceivesanyamountfromSkaanaonaccountofsuchreceivable,itshallpaysuchamountto
Seller.11.7SellerGuarantees.(a)PriortotheClosing,Seller,theCompanyandPurchasershall(i)usecommerciallyreasonableeffortstoobtainanunconditionalreleaseofSellerforitsobligationsundertheperformanceguaranteessetforthonSchedule11.7(a)hereto(the"PerformanceGuarantees")fromeachofthebeneficiariesthereofwhichreleaseshallbeeffectiveasoftheClosingDateandwhichcommerciallyreasonableeffortsbyPurchasershallincludeanofferbyPurchasertoenterintoperformanceguaranteesinfavorofsuchbeneficiarieseffectiveasoftheClosingonsubstantiallysimilartermsasthePerformanceGuaranteesand(ii)usecommerciallyreasonableeffortstoobtainanunconditionalreleaseofSellerfromitsguaranteeinfavorofLLLdatedasof_________(M/D/Y)(the"PensionGuarantee")andtocausetheCompanytoassumeanyobligationsthereunderorotherwiseprovidesecurityarrangementssatisfactorytoLLLwithrespecttotheCompany'sobligationsguaranteedthereby.Sellershall,andshallcausetheCompanyto,usecommerciallyreasonableeffortstostructuresecurityarrangementsforadvancedpaymentsreceivedbytheCompanyafterthedatehereofsothatSelleranditsAffiliates(otherthantheCompany)arenotguarantorsthereofandshallnotifythePurchaserpriortoenteringintoanysucharrangementafterthedatehereof.(b)AttheClosing,theCompanyshalldepositwithafinancialinstitutionortrustcompany,mutuallyacceptabletoPurchaserandSeller,(the"EscrowAgent"),anamountequaltothelesserof(x)50%ofanamountequalto(A)theaggregatestatedmaximumamountforwhichSellermayhaveanyobligationasoftheClosingDateofeachoftheguaranteeobligations,performancebondsand/orlettersofcreditsetforthonSchedule11.7(b)(collectively,the"FinancialObligations")minus(B)theRetainedObligationsAdjustmentAmountand(y)_________SEKplus50%ofanyguaranteeobligations,performancebondsand/orlettersofcreditissuedbyoronbehalfofSellerafterthedatehereofandpriortotheClosingDatetoguaranteerepaymentbytheCompanyofanycashadvancepaymentreceivedbytheCompanyasoftheClosingDate("Post-SigningFinancialObligations"),tobeheldinescrow(the"EscrowAccount")andinvestedinaccordancewiththetermsofthisSection11.7(b)andanescrowagreementinaformtobeagreeduponbyPurchaserandSellerpriortotheClosingDate(the"EscrowAgreement");provided,however,thatinnoeventshalltheamountretainedinescrowbelessthantheaggregateamountofFinancialObligationsforwhichSellerremainsliableundertheFinancialObligationsidentifiedonSchedule11.7(b)asB-48,B-84,CCC-32,CCC-54,CCC-55,CCC-56andCCC-57.Notwithstandingtheforegoing,theCompanyshallusecommerciallyreasonableeffortstominimizetheamountofanyPost-SigningFinancialObligationsandtoissueanylettersofcreditand/orperformancebondsrequiredwithrespecttoanycashadvancepaymentreceivedbytheCompanyafterthedatehereofbyoronbehalfoftheCompany.TheRetainedObligationsAdjustmentAmountshallmean_________(_________(number))SEK.PurchasershallcausetheCompanytotakesuchactionsasarereasonablynecessaryunder_________(COUNTRY)LawtograntandperfectafirstprioritysecurityinterestintheEscrowAccountinfavorofSellerassecurityfortheCompany'sobligationsunderthisSection11.7.(c)BothbeforeandaftertheClosing,Purchaser,theCompanyandSellershallcooperateandusetheirrespectivecommerciallyreasonableeffortstocauseeachoftheFinancialObligationsandthePost-SigningFinancialObligationstobereplacedbyperformancebondsand/orlettersofcreditissuedfortheaccountoftheCompanyassoonaspossiblebutinanyeventonorpriorto
_________(M/D/Y);provided,howeverinnoeventshallsuchcommerciallyreasonableeffortsbyPurchaserbedeemedtorequirePurchasertoguaranteeorotherwiseincuranyobligation(contingentorotherwise)withrespecttosuchliabilitiesortograntanyconcessionorpayanyamounttotheholderofsuchguaranteeasaconditionthereof;provided,further,Selleracknowledgesthatsuchreleaseswillrequireactionbythirdparties,anditshallnotbeabreachofthissubsection(c)ifsuchthirdpartyisunwillingtograntsuchrelease.IfanysuchFinancialObligationsandPost-SigningFinancialObligationsarenotsoreplaced,followingtheClosing,theCompanyshallindemnifySellerforanyamountsactuallypaidbySellerinrespectofsuchFinancialObligationsorPost-SigningFinancialObligationsexcepttotheextentsuchamountisrequiredtobepaidasaresultofanybreachofanyrepresentationandwarrantysetforthinArticleIIIofthisAgreement.IntheeventthatSellerisrequiredtopayanyamountwithrespecttosuchFinancialObligationsorPost-SigningFinancialObligations,SellershallprovidewrittennoticetoPurchaserandtheCompany,whichnoticeshallspecifythedateofsuchpaymentbySeller,theamountofsuchpaymentandcontaincopiesofanycorrespondencewithrespectthereto.TheCompanyshallwithin_________BusinessDaysafterreceiptofsuchwrittennoticepaytheamountspecifiedinsuchnoticetoSellerorprovidewrittennoticeofthefactsandcircumstancesconstitutingsuchbreachofrepresentationandwarranty(an"ObjectionNotice").IntheeventthattheCompanydoesnotpaysuchamountordeliveranObjectionNoticeonorbeforesuch_________BusinessDay,SellershallbeentitledtobepaidsuchamountfromtheEscrowAccountbyprovidingwrittennoticetotheEscrowAgentinaccordancewiththetermsoftheEscrowAgreementandtheCompanyshallwithin_________BusinessDaysthereafterberequiredtopaysuchamountintoEscrowsothatthetotalamountintheEscrowAccountequalstheRequiredEscrowAmount(asdefinedbelow).(d)Ifonthelatertooccurof(i)_________(M/D/Y)and(ii)oneyearaftertheClosingDate,theamountofallFinancialObligationsexceedstheamountthenintheEscrowAccount,thePurchasershalldepositsuchadditionalamountintheEscrowAccountasmaybenecessarysothattheamountheldintheEscrowAccountequalstheamountofsuchFinancialObligations.(e)IntheeventthatatanytimeaftertheClosingDatetheamountthenintheEscrowAccountexceedstheamountofallFinancialObligationsthenoutstanding,theEscrowAgreementshallprovidethatsuchexcessamountshallbepaidtotheCompany.Thereafter,theEscrowAgreementshallprovidethatastheaggregateamountofFinancialObligationsdecreases,suchthattheamountheldintheEscrowAccountexceedstheaggregateamountofFinancialObligationsoutstandingsuchexcessamountshallbedistributedtotheCompanyuntilsuchtimeastheFinancialObligationsequalzero.SolongastheaggregateamountofallFinancialObligationsexceedstheamountintheEscrowAccount,theCompanyshallnotdeclareorpayanydividendofcashorotherassetsoftheCompanytothePurchaseroritsSubsidiaries.Atanytimehereafter,theCompanymaysubstitutealetterofcreditinformandsubstancereasonablysatisfactorytoSellerforalloranyportionoftheRequiredEscrowAmountbydeliveringsuchletterofcredittotheEscrowAgentwhoshalldistributefromtheEscrowAccountinexchangethereforanamountofcashequaltothefaceamountofsuchletterofcredit.(f)TheCompanyshallreimburseSellerfortheactualoutofpocketexpenseincurredtoanythirdpartywithrespecttoanyFinancialObligationsandthePost-SigningFinancialObligationsforwhichtheCompanyisnotrequiredtoincuranysimilarexpense.ARTICLE
XII.MISCELLANEOUS12.1Waiver.EitherpartytothisAgreementmay,atanytimepriortotheClosing,waiveanyofthetermsorconditionsofthisAgreement;provided,however,anysuchwaivermustbeinwriting,executedinthesamemannerasthisAgreementbythepartyagainstwhomsuchwaiveristobeenforced.Nodelayonthepartofanypartyinexercisinganyright,powerorprivilegehereundershalloperateasawaiverthereof,norshallanywaiveronthepartofanypartyofanyright,powerorprivilegehereunder,noranysingleorpartialexerciseofanyotherright,powerorprivilegehereunder,precludeanyotherorfurtherexercisethereofortheexerciseofanyotherright,powerorprivilegehereunder.12.2Notices.Allnoticesandothercommunicationsamongthepartiesshallbeinwritingandshallbedeemedtohavebeendulygivenwhen(i)deliveredinperson,or(ii)_________BusinessDaysafterhavingbeensentbyarecognizedinternationalcourierservicesuchasDHLorFedEx,or(iii)deliveredbytelecopyandpromptlyconfirmedbydeliveryinpersonorcourierserviceasaforesaidineachcase,withpostageprepaid,addressedasfollows:IftoPurchaser,to:BBB,Inc._________(address)TelecopyNo.:_________Attention:_________withcopiesto(whichshallnotconstitutenotice):Latham&Watkins_________(address)Attention:_________TelecopyNo.:_________IftoSeller,to:AAAP.O.Box__________________(address)Attention:_________ortosuchotheraddressoraddressesasthepartiesmayfromtimetotimedesignateinwriting.12.3Assignment.ThisAgreementshallnotbeassignedbyoperationoflaworotherwisebyanypartyhereto;provided,however,thatthePurchasermayassignthisAgreementandthePurchaser'srightsbutnotitsobligationshereunderinwholeorinpartwithoutthepriorwrittenconsentofanyotherpartyhereto(i)toanydirectorindirect,wholly-ownedSubsidiaryofthePurchaser,(ii)toalenderassecurityand(iii)toanyPersonwhoacquiresalloraportionoftheSharesfrom
PurchaserfollowingtheClosing(bymerger,recapitalization,saleofinterestsorotherwise)orallorsubstantiallyalloftheassetsoftheCompanyoranyofitsSubsidiaries.12.4RightsofThirdParties.NothingexpressedorimpliedinthisAgreementisintendedorshallbeconstruedtoconferuponorgiveanyPerson,otherthanthepartieshereto,anyrightorremediesunderorbyreasonofthisAgreement.12.5Reliance.EachofthepartiestothisAgreementshallbedeemedtohavereliedupontheaccuracyofthewrittenrepresentationsandwarrantiesmadetoitinorpursuanttothisAgreement,notwithstandinganyinvestigationsconductedbyoronitsbehalfornotice,knowledgeorbelieftothecontrary.12.6TransferTaxes;TitleCosts;Expenses.Notwithstandinganyotherprovisionhereof,andexceptasprovidedintheIntellectualPropertyLicenseAgreement,Sellershallbesolelyresponsibleforthecostsandexpensesofallrecordingfees(onaper-pagebasisorotherwise),transfertaxes,conveyancetaxes,salesandusetaxes,stamptaxesandothertaxes(solelytotheextentthatsuchtaxeshavebeenleviedorimposedbyany_________(COUNTRY)GovernmentalAuthorityandnotbyanyotherGovernmentalAuthority),incurredorotherwisepayableinconnectionwiththetransactionscontemplatedbythisAgreementandtheAncillaryAgreements.SuchpaymentsshallbemadebySellerpromptlyafterincurred,butinanyeventonorpriortotheClosingDateor,inthecaseoftaxes,feesandchargesthatmayaccrueorariseaftertheClosingDate,promptlyafterthedatethatsuchobligationsoaccruesorarises.Allothercostsandexpensesincurredbythepartiesinconnectionwiththetransactionscontemplatedherebyshallbebornebythepartyincurringsuchexpense.12.7Construction.ThisAgreementshallbeconstruedandenforcedinaccordancewiththelawsofSwedenwithoutregardtotheconflictsoflawprovisionsthereof.Unlessotherwisestated,referencestoSections,Articles,ExhibitsorSchedulesrefertotheSections,Articles,ExhibitsandSchedulestothisAgreement.ThepartiestothisAgreementparticipatedjointlyinthenegotiationanddraftingofthisAgreement.IfanyambiguityorquestionofintentorinterpretationshallarisewithrespecttothisAgreement,thenthisAgreementshallbeconstruedasifdraftedjointlybythepartiesandnopresumptionorburdenofproofwillarisefavoringordisfavoringanypartytothisAgreementbyvirtueoftheauthorshipofanyprovisionofthisAgreement.12.8Captions;Counterparts.ThecaptionsinthisAgreementareforconvenienceonlyandshallnotbeconsideredapartoforaffecttheconstructionorinterpretationofanyprovisionofthisAgreement.ThisAgreementmaybeexecutedintwoormorecounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.12.9EntireAgreement.ThisAgreement(togetherwiththeSchedulesandAnnexestothisAgreementand,fromandaftertheClosingDate,theAncillaryAgreementswhichconstitutepartofthisAgreement)constitutestheentireagreementamongthepartiesandsupersedeanyotheragreements,whetherwrittenororal,thatmayhavebeenmadeorenteredintobyoramonganyofthepartiesheretooranyoftheirrespectiveSubsidiariesrelatingtotheTransactions.Norepresentations,warranties,covenants,understandings,agreements,oralorotherwise,relatingtothetransactionscontemplatedbythisAgreementexistbetweenthepartiesexceptasexpresslysetforthinthisAgreement.12.10Amendments.ThisAgreementmaybeamendedormodifiedinwholeorinpart,onlybyadulyauthorizedagreementinwritingexecutedinthesamemannerasthisAgreementandwhichmakesreferencetothisAgreement.
12.11Severability.AnytermorprovisionofthisAgreementthatisinvalidorunenforceableinanysituationinanyjurisdictionshallnotaffectthevalidityorenforceabilityoftheremainingtermsandprovisionshereoforthevalidityorenforceabilityoftheoffendingtermorprovisioninanyothersituationorinanyotherjurisdiction.12.12Publicity.Allpressreleases,otherpubliccommunicationsofanynaturewhatsoever,orothernoticestothirdparties(exceptascontemplatedbySection8.1)relatingtothetransactionscontemplatedbythisAgreement,andthemethodofthereleaseforpublicationthereof,shallbesubjecttothepriormutualapprovalofeachotherpartyheretowhichapprovalshallnotbeunreasonablywithheldbyanyparty;provided,however,that,nothinghereinshallpreventanypartyfrompublishingsuchpressreleasesorotherpubliccommunicationsassuchpartymayconsidernecessaryinordertosatisfysuchparty'slegalorcontractualobligationsaftersuchconsultationwiththeotherpartiesheretoasisreasonableunderthecircumstances.12.13Arbitration.AlldisputesarisingoutoforinconnectionwiththisAgreementshallbefinallysettledundertheUNICTRALArbitrationRulesbythreearbitratorsappointedbytheLondonCourtofInternationalArbitration.ThearbitralproceedingsshallbeconductedinEnglishandtakeplaceinLondon.12.14Purchaser'sRemedies.SelleragreesthattheSharesrepresentuniquepropertythatcannotbereadilyobtainedontheopenmarketandthatPurchaserwouldbeirreparablyinjuredifthisAgreementisnotspecificallyenforcedafterdefault.Therefore,PurchasershallhavetherightspecificallytoenforceSeller'sperformanceunderthisAgreement,andSelleragreestowaivethedefenseinanysuchsuitthatPurchaserhasanadequateremedyatlawandtointerposenoopposition,legalorotherwise,astotheproprietyofspecificperformanceasaremedy,andthatPurchasershallhavetherighttoobtainspecificperformanceofthetermsofthisAgreementwithoutbeingrequiredtoproveactualdamages,postbondorfurnishothersecurity.Inaddition,PurchasershallbeentitledtoobtainfromSeller,courtcostsandreasonableattorneys'feesincurredbyPurchaserinenforcingitsrightshereunder.Asaconditiontoseekingspecificperformance,PurchasershallnotberequiredtohavetenderedtheClosingCashConsideration,butshallbeready,willingandabletodoso.IntheeventPurchaserelectstoterminatethisAgreementasaresultofSeller'sdefault,insteadofseekingspecificperformance,thenPurchasershallbeentitledtorecoveritsdamagesresultingfromSeller'sdefault,plusreasonableattorney'sfeesandcourtcostsincurredbyPurchaserinenforcingitsrightsunderthisAgreement.INWITNESSWHEREOFthepartieshavehereuntocausedthisAgreementtobedulyexecutedasofthedatefirstabovewritten.AAABBB,INC.By:/s/_________By:/s/_________Name:_________Name:_________Title:_________Title:_________
