Document:

exhibit10171.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	Exhibit 10.17

	AGREEMENT

	by and among

ENEL S.p.A.

ACCIONA, S.A.

and

E.ON AG

	CONTENTS 
	  
	1. 	  	Certain definitions 	  	3 
	  	  	1.1 	  	Definitions 	  	3 
	  	  	1.2 	  	Other Definitional and Interpretive Matters 	  	7 
	  
	2. 	  	Scope of the Agreement 	  	8 
	  
	3. 	  	Undertakings of E.ON in respect of the E.ON Tender Offer 	  	8 
	  	  	3.1 	  	Undertaking relating to the E.ON Tender Offer 	  	8 
	  	  	3.2 	  	Standstill 	  	  	  	9 
	  
	4. 	  	Transfer of Endesa Europa Shares 	  	9 
	  	  	4.1 	  	Undertakings of the Investors 	  	9 
	  	  	4.2 	  	Integrity	  	11 
	  	  	4.3 	  	Endesa Europa Carve-Out 	  	11 
	  	  	4.4 	  	Determination of the Endesa Europa Enterprise Value 	  	12 
	  	  	  	  	4.4.1 	  	Valuation methodologies 	  	12 
	  	  	  	  	4.4.2 	  	Valuation process 	  	12 
	  	  	4.5 	  	Determination of the Endesa Europa Final Net Debt 	  	13 
	  	  	  	  	4.5.1 	  	Closing Accounts 	  	13 
	  	  	  	  	4.5.2 	  	Access 	  	14 
	  	  	  	  	4.5.3 	  	No disagreement 	  	14 
	  	  	  	  	4.5.4 	  	Notice of Disagreement 	  	14 
	  	  	  	  	4.5.5 	  	Tasks of the Independent Accountant 	  	14 
	  
	5. 	  	Transfer of the Additional Assets 	  	15 
	  	  	5.1 	  	Undertakings of the Investors 	  	15 
	  	  	5.2 	  	Price for the Additional Assets 	  	16 
	  	  	5.3 	  	Determination of the Price for the Additional Assets 	  	16 
	  
	6. 	  	Transfer of the Viesgo Shares 	  	16 
	  	  	6.1 	  	Undertakings of Enel and E.ON 	  	16 
	  	  	6.2 	  	Escrow 	  	  	  	17 
	  	  	6.3 	  	Viesgo Carve-Out 	  	17 
	  	  	6.4 	  	Determination of the Viesgo Companies Enterprise Value 	  	18 
	  	  	6.5 	  	Determination of the Viesgo Companies Final Net Debt 	  	18 
	  
	7. 	  	Interim Management of the Viesgo Companies 	  	18 
	  	  	7.1 	  	Undertakings of Enel 	  	18 
	  	  	7.2 	  	Procedure for E.ON’s Consent 	  	19 
	  	  	7.3 	  	Certain Rights of E.ON 	  	20 
	  
	8. 	  	Conditions Precedent 	  	20 
	  	  	8.1 	  	Conditions Precedent 	  	20 
	  	  	8.2 	  	Investors Tender Offer, Clearance and Approval 	  	21 
	  	  	8.3 	  	Effects 	  	  	  	21 

I

	9. 	  	Closing 	  	  	  	22 
	  	  	9.1 	  	Date and Place of Closing 	  	22 
	  	  	9.2 	  	Deliveries at Closing 	  	22 
	  	  	9.3 	  	Remedies 	  	23 
	  	  	9.4 	  	One Transaction 	  	23 
	  
	10. 	  	Representations, Warranties and undertakings of the Investors 	  	24 
	  	  	10.1 	  	Undertakings of Enel 	  	24 
	  	  	  	  	10.1.1 	  	Organization and Standing 	  	24 
	  	  	  	  	10.1.2 	  	Authorization 	  	24 
	  	  	  	  	10.1.3 	  	No Conflict 	  	24 
	  	  	  	  	10.1.4 	  	Share Capital of the Viesgo Companies 	  	25 
	  	  	  	  	10.1.5 	  	Ownership 	  	25 
	  	  	  	  	10.1.6 	  	Viesgo Companies Financial Statements 	  	25 
	  	  	  	  	10.1.7 	  	No Brokers 	  	25 
	  	  	10.2 	  	Undertakings of Acciona 	  	25 
	  	  	  	  	10.2.1 	  	Organization and Standing 	  	25 
	  	  	  	  	10.2.2 	  	Authorization 	  	25 
	  	  	  	  	10.2.3 	  	No Conflict 	  	25 
	  	  	  	  	10.2.4 	  	No Brokers 	  	26 
	  	  	10.3 	  	Undertakings of the Investors 	  	26 
	  	  	10.4 	  	Accuracy as at the Closing Date 	  	26 
	  	  	10.5 	  	No other representations and warranties. No inducement or reliance 	  	26 
	  
	11. 	  	Representations and Warranties of E.ON 	  	27 
	  	  	11.1 	  	Undertaking of E.ON 	  	27 
	  	  	  	  	11.1.1 	  	Organization and Standing 	  	27 
	  	  	  	  	11.1.2 	  	Authorization 	  	27 
	  	  	  	  	11.1.3 	  	No Conflict 	  	27 
	  	  	  	  	11.1.4 	  	No Brokers 	  	27 
	  	  	11.2 	  	Accuracy as of the Closing Date 	  	28 
	  	  	11.3 	  	No other representations and warranties. No inducement or reliance 	  	28 
	  
	12. 	  	Indemnity Obligations 	  	28 
	  	  	12.1 	  	Indemnity Obligation of the Investors 	  	28 
	  	  	12.2 	  	Exclusive Remedy for breach of Reprentations and Warranties 	  	29 
	  	  	12.3 	  	Indemnity Obligation of E.ON 	  	30 
	  
	13. 	  	Litigation withdrawal, Release of Claims 	  	30 
	  
	14. 	  	Other covenants and undertakings 	  	31 
	  	  	14.1 	  	Indemnity of Directors 	  	31 
	  	  	14.2 	  	Absence of Non Competition Covenants 	  	31 
	  	  	14.3 	  	Sharing of Liabilities 	  	31 
	  
	15. 	  	Confidentiality 	  	32 
	  	  	15.1 	  	Confidential Information 	  	32 
	  	  	15.2 	  	Announcements 	  	32 

II

	16.	 	Miscellaneous Provisions	 	32
	 	 	16.1	 	Compliance by the Affiliates	 	32
	 	 	16.2	 	Survival	 	32
	 	 	16.3	 	Changes in Writing	 	32
	 	 	16.4	 	Assignment; No Third Party Beneficiaries	 	33
	 	 	16.5	 	Notices	 	33
	 	 	16.6	 	Payments	 	34
	 	 	16.7	 	Delayed Payments and Interest	 	34
	 	 	16.8	 	Right to Designate	 	35
	 	 	16.9	 	Language	 	35
			16.10		Taxes and Other Expenses		35
			16.11		Severability		36
			16.12		Further Assurances		36
			16.13		Applicable Law		37
	 
	17.	 	Arbitration	 	37
	 	 	17.1	 	Appointment of Arbitrators	 	37
	 	 	17.2	 	Arbitration Expenses	 	37
	 	 	17.3	 	Election of Domicile	 	37
	 	 	17.4	 	Interim Measures	 	37

SCHEDULES

	No.	 	Schedule
	4.2.1	 	Integrity
	5.1.1(a)(i)	 	Additional Assets
	5.1.1(a)(ii)	 	Main Terms of the Drawing Rights Agreement
	6.2(a)	 	Escrow Agreement
	7.1.1	 	Permitted Investments
	10.1.6	 	Viesgo Companies Financial Statements

III

AGREEMENT

This agreement (the Agreement) is entered into on April 2, 2007 in Madrid by and among:

ENEL S.p.A., an Italian corporation having its registered office in Rome (Italy), at 137, Viale Regina Margherita, registered at no. 00811720580 on the Camera di Commercio Industria Artigiano Agricoltura, acting by its Chief Executive Officer, Mr. Fulvio Conti, duly authorized to execute this Agreement by virtue of the resolution of the board of directors dated April 2, 2007 (Enel)

ACCIONA, S.A., a Spanish corporation having its registered office in Alcobendas (Madrid, Spain), at 18, Avenida de Europa, registered on the Registro Mercantil of Madrid at tomo 13.351, libro 0, folio 9, hoja M-216.384, acting by its Chairman, Mr. José Manuel Entrecanales, duly authorized to execute this Agreement (Acciona and, together with Enel, the Investors and each an Investor)

	- of the first part -

E.ON AG, a German corporation having its registered office in Düsseldorf, Germany, at E.ON-Platz, 1, D-40479, an issued share capital of € 1,799,200,000.00, registered at no. HRB 22315 of the Commercial Registry (Handelsregister) of the local court of Düsseldorf, Germany, acting by its Chief Executive Officer, Mr. Wulf H. Bernotat, duly authorized to execute this Agreement by virtue of the resolution of the executive board dated April 2, 2007 (E.ON and, together with the Investors, the Parties and each a Party)

	- of the second part -

RECITALS

	A. 	  	Over the last eighteen months, different projects regarding Endesa (as defined below) 
	  	  	have emerged, initiated by a first tender offer, subsequent tender offer by E.ON, the 
	  	  	acquisition of an equity stake by Acciona with the aim of being a key shareholder, the 
	  	  	acquisition of an equity stake by Enel and, lately, the shared management project of 
	  	  	Acciona and Enel agreed in the last days. As of the date hereof, two projects for 
	  	  	Endesa are still in play: 
	  
	  	  	(i) 	  	the integration project put forward by E.ON by launching a tender offer over 
	  	  	  	  	all the Endesa Shares (as defined below) (the E.ON Tender Offer). Such 
	  	  	  	  	tender offer - after many well-known developments - is about to expire: the 
	  	  	  	  	acceptance period currently ends on April 3, 2007 for the Spanish offer and on 
	  	  	  	  	April 6, 2007 for the U.S. offer. The basic principles of E.ON’s project are 
	  	  	  	  	described in the E.ON Tender Offer prospectus approved by the CNMV on 
	  	  	  	  	November 16, 2006 (as subsequently amended). The E.ON Tender Offer is 
	  	  	  	  	conditional upon, inter alia, E.ON acquiring 50.01% (fifty point zero one 
	  	  	  	  	percent) of the Endesa Shares (the Tender Offer Condition); and 
	  
	  	  	(ii) 	  	the project for the joint management of Endesa proposed by Acciona and 
	  	  	  	  	Enel, which have recently become Endesa’s main shareholders. The bases of 
	  	  	  	  	this project are described in the agreement entered into by the aforementioned 

	  	  	  	  	shareholders, and disclosed to the market on March 27, 2007 (the Agreement 
	  	  	  	  	with respect to Endesa Shares). Such agreement also envisages the launching 
	  	  	  	  	of a joint tender offer by Acciona and Enel in the future, prior to the 
	  	  	  	  	implementation of the shared-management project proposed by Acciona and 
	  	  	  	  	Enel (the Investors Tender Offer). 
	  
	B. 	  	The Parties acknowledge that the actions adopted to promote and defend their 
	  	  	respective projects have led to a business and legal confrontation, which threatens to 
	  	  	become permanent, to the detriment of Endesa and all of its shareholders. 
	  	  	Accordingly, the Parties have decided to solve and settle their conflicts and 
	  	  	controversies by entering into this Agreement, whose aim is to dissipate the 
	  	  	uncertainties and unsteadiness that could compromise Endesa’s future development 
	  	  	and would likely adversely affect the success, operations and financial performance of 
	  	  	Endesa, if continued into the indefinite future, thereby potentially adversely affecting 
	  	  	the value of the Endesa Shares. 
	  
	  	  	The Parties have made this Agreement possible by relinquishing some of their initial 
	  	  	objectives. The Agreement is therefore based on reciprocal concessions and 
	  	  	compromises intended to prevent the indefinite extension of an intra-corporate 
	  	  	conflict. By joining together in this way with respect to their pending projects and 
	  	  	initiatives for Endesa, Acciona and Enel and E.ON will together achieve for their 
	  	  	benefit and the benefit of Endesa and its shareholders what could not be achieved 
	  	  	separately. The settlement is shaped around two basic undertakings: 
	  
	  	  	(i) 	  	E.ON ́s undertaking not to waive the Tender Offer Condition; and 
	  
	  	  	(ii) 	  	Acciona ́s and Enel ́s undertaking to submit to Endesa ́s decision making 
	  	  	  	  	bodies (and, particularly, its shareholders ́meeting) - and to support in such 
	  	  	  	  	bodies - the sale to E.ON of certain assets. 
	  
	  	  	This sale will allow E.ON to gain a presence in the energy sector in Southern Europe 
	  	  	and, therefore, to partially achieve the strategic objectives that led it to pursue a tender 
	  	  	offer for Endesa without compromising its industrial project. 
	  
	C. 	  	The settlement contemplated in this Agreement intends to safeguard all the interests - 
	  	  	collective, public and private - involved in a company with the relevance and magnitude 
	  	  	of Endesa. In fact, besides the satisfaction of their legitimate interests, the Parties 
	  	  	believe the Agreement will benefit: 
	  
	  	  	(i) 	  	the minority shareholders interests because E.ON ́s undertaking not to waive 
	  	  	  	  	the Tender Offer Condition will allow Acciona and Enel to accelerate the 
	  	  	  	  	launching of the Investors Tender Offer at a higher price (at least Euro 41 plus 
	  	  	  	  	interest) as compared to the time when it might otherwise originally have been 
	  	  	  	  	launched. In fact, the six-month moratorium established in the CNMV ́s 
	  	  	  	  	resolution issued on March 23, 2007 will not apply if E.ON does not complete 
	  	  	  	  	the E.ON Tender Offer due to the non-satisfaction of the Tender Offer 
	  	  	  	  	Condition. As a result, Endesa’s shareholders will be able to benefit from an 
	  	  	  	  	offer at a higher price than E.ON was willing to pay and without the delay that 

2

	  	  	  	  	might otherwise have been imposed on the superior offer by Acciona and 
	  	  	  	  	Enel; 
	  
	  	  	(ii) 	  	the electricity market interests, because the divestments provided for under the 
	  	  	  	  	Agreement, consisting in sales to E.ON of assets in countries where Enel 
	  	  	  	  	and/or Acciona have already a significant presence, may anticipate the solution 
	  	  	  	  	of any requirement which may be imposed by the competent antitrust 
	  	  	  	  	authorities, as well as contribute to invigorating and improving the level of 
	  	  	  	  	workable competition within it. This effect can be appreciated from, at least, 
	  	  	  	  	two perspectives: (a) the strengthening of the competitiveness of the secondary 
	  	  	  	  	players and (b) the market share reduction of the first player, which has been 
	  	  	  	  	regarded as potentially high by antitrust authorities, but without undermining 
	  	  	  	  	Endesa’s status as a major enterprise of importance to the Spanish economy; 
	  
	  	  	(iii) 	  	the interests of Endesa because the Agreement is expected to 
	  	  	  	  	facilitate the management of Endesa to guarantee the 
	  	  	  	  	functioning of its corporate bodies (which otherwise would be exposed to a 
	  	  	  	  	deadlock risk) and to dissipate the uncertainties that may jeopardize or make 
	  	  	  	  	difficult its strategic planning. It should also be noted that a significant portion 
	  	  	  	  	of the divestments contemplated by the Agreement would otherwise be 
	  	  	  	  	required on regulatory grounds and in any event will not adversely impact the 
	  	  	  	  	ongoing operations of Endesa. 
	  
	Based upon the foregoing, the Parties have agreed to enter into this Agreement and to abide by 
	the provisions set forth below. 
	  
	1. 	  	CERTAIN DEFINITIONS 
	  
	1.1 	  	Definitions 
	  
	  	  	In addition to the other terms defined elsewhere in this Agreement, the following 
	  	  	terms shall have the meanings ascribed to them below for the purpose of this 
	  	  	Agreement. 
	  
	  	  	Accounting Principles: means: (i) with respect to the Viesgo Companies (as defined 
	  	  	below): (1) for the purposes of Section 10.1.6 the Spanish accounting principles set forth in the general plan for 
	  	  	accountability as modified by the Royal Decree 437/1998 for the companies operating 
	  	  	in the electricity sector; (2) for any other purposes, the accounting principles prepares by the International 
	  	  	Accounting Standards Board (I.A.S.B); and (ii) with respect to Endesa Europa (as defined below), the
	  	  	accounting principles prepared by the International Accounting Standards Board (I.A.S.B.). 
	  
	  	  	Additional Assets: shall have the meaning set forth in section 5.1.1(a)(i). 
	  
	  	  	Affiliate: means with respect to any Person (as defined below), a Person directly or 
	  	  	indirectly controlling, controlled by or under common control with (as defined below), 
	  	  	such Person. 
	  

3

 

Affiliated Parties: shall have the meaning set forth in section 13(a).

Agreed Rate: means an interest rate per annum corresponding to the interbank offered rate for 3 (three) months Euro deposits shown at page EURIBOR01 of Reuters (or such other page as may replace that page) as being applicable on the 1st (first) Business Day (as defined below) of each 3 (three) month period (or fraction thereof) in respect of which interest shall be payable pursuant to this Agreement, it being agreed that, for the purposes of this Agreement, interest shall be computed on the basis of the number of days actually elapsed divided by 365.

Agreement: means this agreement, including the recitals and schedules.

Agreement with respect to Endesa Shares: shall have the meaning set forth in Recital A.

Approval: shall have the meaning set forth in section 8.1.1(d) .

Business Day: means any calendar day other than Saturdays, Sundays and any other days on which credit institutions are authorized to close in Madrid.

Caja Madrid: shall have the meaning set forth in section 3.2.2.

Certificate: shall have the meaning set forth in section 4.5.1(b) .

Claim: shall have the meaning set forth in section 13(a).

Clearance: shall have the meaning set forth in section 8.1.1(c) .

Closing: means the transfer of the Viesgo Shares (as defined below), the Additional Assets (as defined below) and the Endesa Europa Shares (as defined below), the payment of the Provisional Price for the Viesgo Shares (as defined below), the Price for the Additional Assets (as defined below) and the Provisional Price for the Endesa Europa Shares (as defined below) and, in general, the execution and exchange of all documents and agreements and the performance and consummation of all obligations and transactions, respectively required to be executed and exchanged and performed and consummated on the Closing Date (as defined below) pursuant to this Agreement.

Closing Balance Sheet: shall have the meaning set forth in section 4.5.1(a) .

Closing Date: means the 20th (twentieth) Business Day following the date on which the last of the conditions precedent set forth in section 8.1 is satisfied or waived, or such other date the Parties may agree.

Conditions Precedent: shall have the meaning set forth in section 8.1.1(d) .

control, controlling and controlled: refer to any relationship existing between a Person and any other Person(s), whether through a participation in the share capital, or in the managing bodies or otherwise, that allows the first Person to exert a determining influence or even a significant influence over the other Person(s).

Designated Representative: shall have the meaning set forth in section 7.2.1.

Disputed Matters: shall have the meaning set forth in section 4.5.4(b) .

Drawing Rights Agreement: shall have the meaning set forth in section 5.1.1(a)(ii).

Effective Control: means: (i) the acquisition by the Investors, directly or indirectly, of ordinary shares in the aggregate representing at least 50% (fifty percent) plus 1 (one)

4

share of the outstanding share capital of Endesa and voting rights exercisable in the shareholders meeting and (ii) the appointment by the Investors of the majority of the board members of Endesa.

Effective Date: shall have the meaning set forth in section 4.4.2(a) .

Engagement Letter: shall have the meaning set forth in section 4.5.4(b) .

	Endesa: means Endesa, S.A.

Endesa Europa: means Endesa Europa, S.L.

Endesa Europa Carved-Out Assets: shall have the meaning set forth in section 4.3.1.

Endesa Europa Enterprise Value: shall have the meaning set forth in section 4.1.2.

Endesa Europa Final Enterprise Value: shall have the meaning set forth in section 4.4.2(e) .

Endesa Europa Final Net Debt: shall have the meaning set forth in section 4.1.3(b) .

Endesa Europa Provisional Net Debt: shall have the meaning set forth in section 4.1.4.

Endesa Europa Shares: means all of the ordinary shares, representing 100% (one hundred percent) of the issued and outstanding share capital and voting rights of Endesa Europa, owned by Endesa.

Endesa Shares: means the ordinary shares of Endesa.

Enterprise Value: means the fair market value calculated in accordance with the Valuation Methodology (as defined in section 4.4.1) on a cash/debt free basis.

E.ON Tender Offer: shall have the meaning set forth in Recital A.

Escrow Agent: means the financial institution of internationally recognised standing and experience (i) appointed jointly by the Parties or, in case of disagreement of the Parties within 10 (ten) Business Days of the written request from any Party, (ii) elected by lot among the financial institutions of internationally recognised standing and experience designated by each of the Investors and E.ON.

Escrow Agreement: shall have the meaning set forth in section 6.2(a) .

Governmental Body: means any legislative, executive or judicial unit of any governmental entity (foreign, federal, state or local) or any department, commission, board, agency, bureau, official or other regulatory, administrative or judicial authority thereof.

Independent Accountant: means the firm of independent certified public accountants (i) agreed by the Parties; or, if the Parties fail to agree on its appointment

5

within 20 (twenty) Business Days of the written request from any Party, (ii) elected by lot among the firms of independent certified public accountants designated by each of the Investors and E.ON, provided that they belong to the so-called “Big Four” group.

Interim Period: shall have the meaning set forth in section 7.1.1.

Law: means any national, federal, state, provincial or local law, statute, ordinance, rule, regulation, code, order, judgment, injunction or decree.

Litigation Party: shall have the meaning set forth in section 13.

Matters: shall have the meaning set forth in section 13(a).

Net Debt: means, on a consolidated basis, the financial indebtedness as of the Closing Date less the cash and other cash equivalents as of the same date.

Notice of Disagreement: shall have the meaning set forth in section 4.5.4(a) .

Person: means any individual, corporation, partnership, firm, association, unincorporated organization or other entity.

Price for the Additional Assets: shall have the meaning set forth in section 5.2.1.

Price for the Endesa Europa Shares: shall have the meaning set forth in section 4.1.2.

Price for the Viesgo Shares: shall have the meaning set forth in section 6.1.2.

Provisional Price for the Endesa Europa Shares: shall have the meaning set forth in section 4.1.3(a) .

Provisional Price for the Viesgo Shares: shall have the meaning set forth in section 6.1.3(a) .

Tender Offer Condition: shall have the meaning set forth in Recital A.

Valuation Methodology: shall have the meaning set forth in section 4.4.1(a) .

Viesgo Carved-Out Asset: shall have the meaning set forth in section 6.3.

Viesgo Companies: means, collectively, Enel Viesgo Generación, S.L., Enel Viesgo Servicios, S.L. and Electra de Viesgo Distribución, S.L.

Viesgo Companies Enterprise Value: shall have the meaning set forth in section 6.1.2.

Viesgo Companies Final Enterprise Value: shall have the meaning set forth in section 6.4.2.

Viesgo Companies Final Net Debt: shall have the meaning set forth in section

6

6.1.3(b) .

Viesgo Companies Provisional Net Debt: shall have the meaning set forth in section 6.1.4.

Viesgo Shares: means, collectively, (i) all of the ordinary shares, representing 100% of the issued and outstanding share capital and voting rights of Enel Viesgo Generación, S.L., owned by Enel Produzione S.p.A., (ii) all of the ordinary shares, representing 100% of the issued and outstanding share capital and voting rights of Enel Viesgo Servicios, S.L., owned by Enel (60%), Enel Produzione S.p.A. (20%) and Enel Distribuzione S.p.A. (20%) and (iii) all of the ordinary shares, representing 100% of the issued and outstanding share capital and voting rights of Electra de Viesgo Distribución, S.L., owned by Enel Distribuzione S.p.A.

	1.2 	  	Other Definitional and Interpretive Matters 
	  
	  	  	Unless otherwise expressly provided, for the purposes of this Agreement the following 
	  	  	rules of interpretation shall apply. 
	  
	  	  	(a) 	  	Calculation of Time Period. When calculating the period of days before which, 
	  	  	  	  	by which or following which any act is to be done or any step is to be taken 
	  	  	  	  	pursuant to this Agreement, the day that is the reference date in calculating 
	  	  	  	  	such period shall be excluded. If the last day of such period is not a Business 
	  	  	  	  	Day, the relevant period shall end on the next following Business Day. 
	  
	  	  	(b) 	  	Gender and Number. Any reference in this Agreement to gender shall include 
	  	  	  	  	all genders, and words imparting the singular number only shall be deemed to 
	  	  	  	  	include the plural and vice versa. 
	  
	  	  	(c) 	  	Headings. The provision of a table of contents, the division of this Agreement 
	  	  	  	  	into articles, sections, paragraphs and other subdivisions and the insertion of 
	  	  	  	  	headings are for convenience of reference only and shall not affect or be 
	  	  	  	  	utilized in construing or interpreting this Agreement. 
	  
	  	  	(d) 	  	Paragraph/Section/Article. All references in this Agreement to any 
	  	  	  	  	“paragraph”, “section” and/or “article” are to the corresponding paragraph, 
	  	  	  	  	section and/or article, respectively, of this Agreement unless otherwise 
	  	  	  	  	specified. 
	  
	  	  	(e) 	  	Herein and similar. The words such as “herein,” “hereinafter,” “hereof,” and 
	  	  	  	  	“hereunder” refer to this Agreement as a whole and not merely to a subdivision 
	  	  	  	  	in which such words appear, unless the context otherwise requires. 
	  
	  	  	(f) 	  	Including. The word “including” or any variation thereof means “including, 
	  	  	  	  	without limitation” and shall not be construed to limit any general statement to 
					the specific or similar items or matters immediately following it.
	 
	  
	  	  	(g) 	  	Schedules. The schedules attached to this Agreement shall be construed with 
	  	  	  	  	and as an integral part of this Agreement to the same extent as if they had been 

7

	  	  	  	  	set forth verbatim herein. 
	  
	  	  	(h) 	  	Adverse Construction. Since all the Parties have participated in the drafting and 
	  	  	  	  	negotiation of this Agreement, the language throughout this Agreement shall in 
	  	  	  	  	all cases be construed as a whole, in accordance with fair meaning and without 
	  	  	  	  	applying the principle according to which the terms of an agreement shall be 
	  	  	  	  	construed against the party who has prepared it. 
	  
	2. 	  	SCOPE OF THE AGREEMENT 
	  
	  	  	Through this Agreement, the Parties wish to set forth, inter alia, the terms and 
	  	  	conditions upon which: 
	  
	  	  	(a) 	  	E.ON shall not waive the Tender Offer Condition and shall undertake not to 
	  	  	  	  	acquire any Endesa Shares other than through the E.ON Tender Offer nor to 
	  	  	  	  	launch any other tender offer to acquire any Endesa Shares in the 4 (four) years 
	  	  	  	  	following the date hereof; 
	  
	  	  	(b) 	  	the Investors shall submit to the Endesa corporate bodies the proposal of 
	  	  	  	  	selling to E.ON the Endesa Europa Shares and the Additional Assets (as 
	  	  	  	  	defined below) on the Closing Date and shall exercise their rights as 
	  	  	  	  	shareholders in Endesa to support such proposal and finally shall cause Endesa 
	  	  	  	  	to transfer the Endesa Europa Shares and the Additional Assets, and E.ON 
	  	  	  	  	shall undertake to acquire from Endesa the Endesa Europa Shares and the 
	  	  	  	  	Additional Assets; 
	  
	  	  	(c) 	  	after the transfer of the Viesgo Carved-Out Asset, Enel shall sell (and cause its 
	  	  	  	  	Affiliates to sell) to E.ON, and E.ON shall acquire from Enel (and from its 
	  	  	  	  	Affiliates), the Viesgo Shares; 
	  
	  	  	(d) 	  	E.ON, on the one part, and the Investors, on the other part, shall release and 
	  	  	  	  	waive any claims (and terminate all litigations) they may have against each other 
	  	  	  	  	relating to Endesa Shares and related matters other than claims for breach of 
	  	  	  	  	this Agreement. 
	  
	3. 	  	UNDERTAKINGS OF E.ON IN RESPECT OF THE E.ON TENDER OFFER 
	  
	3.1 	  	Undertaking relating to the E.ON Tender Offer 
	  
	3.1.1 	  	E.ON undertakes, effective as from the date hereof: (a) not to waive the Tender Offer 
	  	  	Condition; (b) in case E.ON does not acquire through the E.ON Tender Offer at least 
	  	  	50.01% (fifty point zero one percent) of the Endesa Shares, to desist from the E.ON 
	  	  	Tender Offer and (c) to inform the market of the undertakings under (a) and (b) 
	  	  	immediately following the execution of this Agreement. 
	  
	3.1.2 	  	Should the Tender Offer Condition be satisfied, this Agreement will automatically 
	  	  	terminate, and the Parties shall be released from all obligations hereunder except for: (i) 
	  	  	any rights or obligations arising under article 15, section 16.5, section 16.13 and article 

8

	 	 	17; and (ii) any rights or obligations arising in connection with any breach of this
	 	 	Agreement.
	 
	3.2	 	Standstill
	 
	3.2.1	 	In consideration for the Investors’ understandings and agreements set forth herein,
	 	 	E.ON irrevocably undertakes, effective as from the date hereof, and until the 4th
	 	 	(fourth) anniversary of the date hereof:
	 
	 	 	(a)	 	not to acquire, solicit, encourage, recommend, offer to acquire any Endesa
	 	 	 	 	Shares (nor in holding companies the acquisition of which seeks as the main
	 	 	 	 	purpose the indirect acquisition of Endesa Shares), nor to enter into any
	 	 	 	 	derivative transaction relating to the Endesa Shares, nor to enter into any other
	 	 	 	 	agreement and/or arrangement aimed at acquiring title to, or the voting rights
	 	 	 	 	of, any Endesa Shares (nor in holding companies the acquisition of which seeks
	 	 	 	 	as the main purpose the indirect acquisition of Endesa Shares), other than
	 	 	 	 	through the E.ON Tender Offer if the minimum acceptance condition is
	 	 	 	 	satisfied;
	 
	 	 	(b)	 	not to induce any third party to take any of the actions referred to in paragraph
	 	 	 	 	(a) preceding; and
	 
	 	 	(c)	 	not to launch any tender offer, whether total or partial, nor to enter into any
	 	 	 	 	agreement or arrangement, nor to do other things, nor to take other actions
	 	 	 	 	which may give rise to, or result in, an obligation of E.ON to launch a tender
	 	 	 	 	offer to acquire any Endesa Shares.
	 
	3.2.2	 	Anything in section 3.2.1 to the contrary notwithstanding, E.ON undertakes to release,
	 	 	effective as of the date hereof, and to inform of such release to, Caja de Ahorros y
	 	 	Monte de Piedad de Madrid, S.A. (Caja Madrid) from any of its obligations under the
	 	 	equity swap agreement entered into on March 27, 2007 and in any event not to
	 	 	purchase, except through the E.ON Tender Offer, from Caja Madrid any and all the
	 	 	shares held by the latter by exercising the rights under such equity swap agreement.
	 
	4.	 	TRANSFER OF ENDESA EUROPA SHARES
	 
	4.1	 	Undertakings of the Investors
	 
	4.1.1	 	Upon the terms and conditions set out below, the Investors shall submit to the Endesa
	 	 	corporate bodies (including the shareholders meeting) the proposal of selling to E.ON
	 	 	the Endesa Europa Shares on the Closing Date and shall exercise their rights as
	 	 	shareholders in Endesa to support such proposal, and finally shall cause Endesa to sell
	 	 	the Endesa Europa Shares, and E.ON shall acquire the Endesa Europa Shares from
	 	 	Endesa in consideration for the Price for the Endesa Europa Shares.
	 
	4.1.2	 	As consideration for the purchase and sale of all the Endesa Europa Shares, E.ON
	 	 	shall pay to Endesa an amount equal to the Enterprise Value of Endesa Europa (the
	 	 	Endesa Europa Enterprise Value) less the Endesa Europa Final Net Debt (as defined
			below) if the debt exceeds the cash, or plus the Endesa Europa Provisional Debt if the

9

	  	  	cash exceeds the debt, as determined in accordance with the provisions of  
	  	  	sections 4.4 and 4.5 below (the Price for the Endesa Europa Shares). 
	  
	4.1.3 	  	The Price for the Endesa Europa Shares shall be paid as follows: 
	  
	  	  	(a) 	  	at Closing, E.ON shall pay to Endesa an amount equal to the Endesa Europa 
	  	  	  	  	Final Enterprise Value (as defined below) less the Endesa Europa Provisional 
	  	  	  	  	Net Debt (as defined below) (the Provisional Price for the Endesa Europa 
	  	  	  	  	Shares); 
	  
	  	  	(b) 	  	within 5 (five) Business Days after the definitive determination of the Net Debt 
	  	  	  	  	of Endesa Europa as of the Closing Date in accordance with the provisions of 
	  	  	  	  	section 4.5 (the Endesa Europa Final Net Debt): 
	  
	  	  	  	  	(i) 	  	E.ON shall pay to Endesa an amount equal to the difference (if 
	  	  	  	  	  	  	positive) between (1) the Endesa Europa Provisional Net Debt and (2) 
	  	  	  	  	  	  	the Endesa Europa Final Net Debt; or 
	  
	  	  	  	  	(ii) 	  	Endesa shall pay to E.ON an amount equal to the difference (if 
	  	  	  	  	  	  	negative) between (1) the Endesa Europa Provisional Net Debt and (2) 
	  	  	  	  	  	  	the Endesa Europa Final Net Debt. 
	  
	4.1.4 	  	With the sole purpose of determining the Price for the Endesa Europa Shares to be 
	  	  	paid at Closing, the Endesa Europa Provisional Net Debt shall mean an amount 
	  	  	equal to the Net Debt of Endesa Europa resulting from the latest available accounts. It 
	  	  	is agreed and understood that the Endesa Europa Provisional Net Debt shall not bind 
	  	  	the Independent Accountant in the determination of the Endesa Europa Final Net 
	  	  	Debt. 	  	  	  	  
	  
	4.1.5 	  	In the event that the direct sale of the Endesa Europa Shares is not taxed as the Parties 
	  	  	have assumed that it is taxable, i.e., as the sale of equity participations in an ETVE that 
	  	  	owns only assets that satisfy the legal requisites for the application of the tax exemption 
	  	  	to the sale of the equity participations, for a period of 30 (thirty) Business Days 
	  	  	following receipt of the notice from the Investors, the Parties shall negotiate in good 
	  	  	faith mutually satisfactory alternatives aimed at minimizing the taxes resulting from the 
	  	  	transfer of Endesa Europa to E.ON. In no event the alternative structure may result in 
	  	  	the direct sale of the assets owned by Endesa Europa to E.ON. 
	  
	4.1.6 	  	The notice of the Investors referred to in section 4.1.5 above shall be given to E.ON 
	  	  	by and no later than the date on which the last of the Conditions Precedent has 
	  	  	occurred, it being understood that in such case the Closing Date shall be postponed to 
	  	  	the later of (a) the expiration of the 30-day period referred to in section 4.1.5 above and 
	  	  	(b) the 20 (twentieth) Business Day after the execution by the Parties of the agreement 
	  	  	concerning the selected alternative structure for the transfer of Endesa Europa. 
	  
	4.2 	  	Integrity
	  
	4.2.1 	  	Except as provided in schedule 4.2.1 attached hereto, E.ON acknowledges that: 

10

	  	  	(a) 	  	neither the Investors nor Endesa shall be responsible for obtaining any 
	  	  	  	  	consent, complying with any requirement of prior notification, or taking any 
	  	  	  	  	other action with respect to any “change of control” or “pre-emption right” 
	  	  	  	  	provision or any provision entitling any Person to request damages (or other 
	  	  	  	  	amounts for any title whatsoever) under, terminate, cancel or accelerate any 
	  	  	  	  	agreement or instrument which Endesa, Endesa Europa or any of their 
	  	  	  	  	Affiliates is bound by or party to, as a consequence of the transactions 
	  	  	  	  	contemplated hereby (if any); and 
	  
	  	  	(b) 	  	E.ON will take whatever steps it deems necessary in this respect either prior to 
	  	  	  	  	or after the Closing, in its sole discretion, and the Investors shall cooperate, to 
	  	  	  	  	any extent reasonably requested by E.ON, with E.ON (including allowing 
	  	  	  	  	E.ON to contact and/or liaise with the relevant managers of the Endesa, 
	  	  	  	  	Endesa Europa and their Affiliates) in order for the same to obtain any such 
	  	  	  	  	consent, comply with any such requirement of prior notification or take any 
	  	  	  	  	such action as soon as possible after the date hereof. 
	  
	4.2.2 	  	Each of the Investors will not be obliged to incur any expense in performing its 
	  	  	obligations under section 4.2.1 unless and until it has been put in funds by E.ON for 
	  	  	the Investors covering the full amount of such expenses or E.ON has indemnified the 
	  	  	Investors for the full amount of such expenses and any associated losses to the 
	  	  	reasonable satisfaction of the Investors. 
	  
	4.3 	  	Endesa Europa Carve-Out 
	  
	4.3.1 	  	E.On acknowledges that during the Interim Period the Investors will have the right to 
	  	  	cause Endesa Europa to transfer, prior to the Closing Date, to Endesa (or any 
	  	  	company designated by the same) any assets that do not pertain to the businesses 
	  	  	developed and located in Italy, France, Poland or Turkey (including, among the assets 
	  	  	pertaining to a specific country, the trading subsidiary or establishment especially and 
	  	  	exclusively devoted to trading in, or for, such specific country) (collectively, the 
	  	  	Endesa Europa Carved-Out Assets) To such effect, the Investors will have the 
	  	  	right to request the appropriate corporate bodies of Endesa Europa and its Affiliates to 
	  	  	pass such resolutions and take such other actions as shall be necessary, under 
	  	  	applicable Laws, to transfer the Endesa Europa Carved-Out Assets. For the avoidance 
	  	  	of doubt, the 50% participation held by Endesa Europa in Scandale, the 50% 
	  	  	participation held by Endesa Europa in Ergon and the shareholding held by Endesa 
	  	  	Europa in the regassification plant in Livorno shall not be carved out and will remain 
	  	  	with Endesa Europa on the Closing Date. 
	  
	4.3.2 	  	E.ON acknowledges that EDF and Enel have entered into a memorandum of 
	  	  	understanding for the transfer of the 35% participation held in SNET from EDF and 
	  	  	Charbonnage de France to Enel. To the extent that Endesa Europa holds any pre- 
	  	  	emption rights over such participation, Endesa Europa will be entitled to exercise such 
	  	  	rights. If no pre-emption rights exist, Endesa Europa shall not take any action which 
	  	  	may affect the transfer of such participation to Enel. 

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	4.4 	  	Determination of the Endesa Europa Enterprise Value 
	  
	4.4.1 	  	Valuation methodologies 
	  
	  	  	(a) 	  	The Parties agree that the Endesa Europa Enteprise Value shall be the fair 
	  	  	  	  	market value based on a discounted cash flows valuation consistent with: (i) 
	  	  	  	  	precedent comparable transaction multiples, (ii) comparable companies trading 
	  	  	  	  	multiples, and (iii) other methodologies generally accepted by the professional 
	  	  	  	  	international practice to ensure that the valuations adequately reflect the 
	  	  	  	  	characteristics and prospects of companies operating in the energy sector (the 
	  	  	  	  	Valuation Methodology). 
	  
	  	  	(b) 	  	It is understood that: 
	  
	  	  	  	  	(i) 	  	the discounted cash flows valuation shall be conducted on a post-tax 
	  	  	  	  	  	  	pre finance cash flow basis; and 
	  
	  	  	  	  	(ii) 	  	the Endesa Europa Carved-Out Assets shall not be considered within 
	  	  	  	  	  	  	Endesa Europa for the purposes of determining the Endesa Europa 
	  	  	  	  	  	  	Enterprise Value. 
	  
	4.4.2 	  	Valuation process 	  	  
	  
	  	  	(a) 	  	As soon as reasonably practicable after the date on which the Investors have 
	  	  	  	  	obtained Effective Control (the Effective Date), Enel and Acciona, on the one 
	  	  	  	  	hand, and E.ON, on the other hand, shall each appoint an investment bank of 
	  	  	  	  	internationally recognized standing and experience in the European M&A 
	  	  	  	  	market (as a reference, the European M&A ranking by transaction volume of 
	  	  	  	  	the last 3 (three) years will be used) to determine, during a period of 30 (thirty) 
	  	  	  	  	Business Days following the appointment of all such investment banks, the 
	  	  	  	  	Endesa Europa Enterprise Value in accordance with the Valuation 
	  	  	  	  	Methodology. 
	  
	  	  	(b) 	  	In the event that the Endesa Europa Enterprise Value as determined by the 
	  	  	  	  	two investment banks differs by less than 10% (ten percent), the Endesa 
	  	  	  	  	Europa Enterprise Value shall be equal to the average between the Endesa 
	  	  	  	  	Europa Enterprise Value set out in the two valuations made by the two 
	  	  	  	  	investment banks and such value shall be final and binding upon the Parties for 
	  	  	  	  	the purposes of this Agreement. 
	  
	  	  	(c) 	  	In the event that the Endesa Europa Enterprise Value as determined by the 
	  	  	  	  	two investment banks differs by more than 10% (ten percent), a third 
	  	  	  	  	investment bank of internationally recognised standing and experience in the 
	  	  	  	  	European M&A market (as a reference, the European M&A ranking by 
	  	  	  	  	transaction volume of the last 3 (three) years will be used) shall be appointed 
	  	  	  	  	jointly by the Parties or, in case of disagreement of the Parties within 20 
	  	  	  	  	(twenty) Business Days of the written request from any Party, shall be elected 
	  	  	  	  	by lot among 6 (six) investment banks meeting such qualification requirements, 

12

	  	  	  	  	of which 3 (three) will be designated by the Investors and 3 (three) by E.ON. 
	  	  	  	  	The third investment bank, during a period of 30 (thirty) Business Days, shall 
	  	  	  	  	make its own determination of the Endesa Europa Enterprise Value in 
	  	  	  	  	accordance with the Valuation Methodology. 
	  
	  	  	(d) 	  	The Endesa Europa Enterprise Value shall be equal to the average between the 
	  	  	  	  	Endesa Europa Enterprise Value as determined by the third investment bank 
	  	  	  	  	and the Endesa Europa Enterprise Value as determined by the investment 
	  	  	  	  	bank whose valuation is closer to the valuation of the third investment bank, 
	  	  	  	  	and such value shall be final and binding upon the Parties for the purposes of 
	  	  	  	  	this Agreement. 
	  
	  	  	(e) 	  	The Endesa Europa Enterprise Value as determined in accordance with 
	  	  	  	  	provisions of paragraphs (b) and (d) shall be referred to as the Endesa Europa 
	  	  	  	  	Final Enterprise Value. 
	  
	  	  	(f) 	  	The determination of the Endesa Europa Enterprise Value in accordance with 
	  	  	  	  	the paragraphs preceding will remain valid for a 12-month period from the 
	  	  	  	  	reference date used for valuation purposes, after which period a new 
	  	  	  	  	determination will be required. 
	  
	  	  	(g) 	  	Within 10 (ten) Business Days of the communication of the Endesa Europa 
	  	  	  	  	Enterprise Value to E.ON, E.ON will have the right not to purchase the 
	  	  	  	  	Endesa Europa Shares (right which will not entitle E.ON to purchase only a 
	  	  	  	  	portion thereof) by giving written notice to the Investors. 
	  
	4.5 	  	Determination of the Endesa Europa Final Net Debt 
	  
	4.5.1 	  	Closing Accounts 
	  
	  	  	(a) 	  	As soon as practicable, and in any event within 30 (thirty) Business Days of the 
	  	  	  	  	Closing Date, the Investors shall prepare and deliver to E.ON the balance 
	  	  	  	  	sheet of Endesa Europa as at the Closing Date, prepared in accordance with 
	  	  	  	  	the Accounting Principles consistently applied (the Closing Balance Sheet). 
	  	  	  	  	The Parties expressly acknowledge and agree that the Closing Balance Sheet 
	  	  	  	  	shall be prepared for the sole purpose of finally determining the Endesa 
	  	  	  	  	Europa Final Net Debt. 
	  
	  	  	(b) 	  	Together with the Closing Balance Sheet, the Investors shall prepare and 
	  	  	  	  	deliver to E.ON a certificate (the Certificate) setting forth the Endesa Europa 
	  	  	  	  	Final Net Debt. 
	  
	4.5.2 	  	Access 	  	  
	  
	  	  	For the preparation of the Closing Balance Sheet, the Parties agree that after the 
	  	  	Closing Date: 
	  
	  	  	(a) 	  	the Investors and their representatives, auditors and other advisors shall be 

13

	  	  	  	  	provided with reasonable access to all relevant books, records and working 
	  	  	  	  	papers (including those of the accountants and auditors of Endesa Europa and 
	  	  	  	  	its Affiliates) necessary to prepare the Closing Balance Sheet; 
	  
	  	  	(b) 	  	E.ON and its management, employees, auditors and other advisors shall not 
	  	  	  	  	interfere with, and shall reasonably assist the Investors and their 
	  	  	  	  	representatives, auditors and other advisors in connection with the preparation 
	  	  	  	  	of the Closing Balance Sheet; 
	  
	  	  	(c) 	  	E.ON shall procure that the management and employees of, and the auditors 
	  	  	  	  	and other advisors to, Endesa Europa and its Affiliates, do not interfere with, 
	  	  	  	  	and support to the greatest extent reasonably required by the Investors and 
	  	  	  	  	their representatives, the Investors’ auditors and other advisors in connection 
	  	  	  	  	with the preparation of the Closing Balance Sheet. 
	  
	4.5.3 	  	No disagreement 
	  
	  	  	If, within 30 (thirty) Business Days of the delivery to E.ON by the Investors of the 
	  	  	Closing Balance Sheet and the Certificate in accordance with sections 4.5.1(a) and 
	  	  	4.5.1(b), no notice of disagreement is delivered by E.ON to the Investors in 
	  	  	accordance with section 4.5.4, then the Closing Balance Sheet and the determination of 
	  	  	the Net Debt as set forth in the Certificate, shall be final and binding on the Parties. 
	  
	4.5.4 	  	Notice of Disagreement 
	  
	  	  	(a) 	  	In the event that E.ON disagrees with the content of the Certificate, E.ON 
	  	  	  	  	shall, within 30 (thirty) Business Days of the delivery of the Closing Balance 
	  	  	  	  	Sheet and the Certificate in accordance with section 4.5.1, under penalty of 
	  	  	  	  	forfeiture, deliver to the Investors a written notice (the Notice of 
	  	  	  	  	Disagreement) specifying in reasonable detail the items, the nature and the 
	  	  	  	  	reasons of any and all such disagreements and, in particular, the amount by 
	  	  	  	  	which and the reasons why E.ON believes that the Endesa Europa Final Net 
	  	  	  	  	Debt set forth in the Certificate was not correct. 
	  
	  	  	(b) 	  	Thereafter, E.ON and the Investors shall negotiate in good faith to resolve any 
	  	  	  	  	disagreement. If E.ON and the Investors are unable to reach an amicable 
	  	  	  	  	settlement within 20 (twenty) Business Days of the delivery of the Notice of 
	  	  	  	  	Disagreement, any disagreement between the Parties (the Disputed Matters) 
	  	  	  	  	will be submitted by the most diligent Party, as exclusive remedy, to the 
	  	  	  	  	Independent Accountant. To this effect, on the Closing Date the Parties shall 
	  	  	  	  	be ready to execute, together with the Independent Accountant, an engagement 
	  	  	  	  	letter (the Engagement Letter). 
	  
	4.5.5 	  	Tasks of the Independent Accountant 
	  
	  	  	(a) 	  	Pursuant to the Engagement Letter, upon submission to it of the Disputed 
	  	  	  	  	Matters, the Independent Accountant shall: (i) consider only the Disputed 
	  	  	  	  	Matters (and therefore not make any determination under any circumstances of 

14

	  	  	  	  	the matters which are not disputed by the Parties); (ii) determine the Disputed 
	  	  	  	  	Matters, in accordance with the Accounting Principles, with the sole purpose 
	  	  	  	  	of calculating the Endesa Europa Final Net Debt, taking into consideration all 
	  	  	  	  	applicable provisions of this Agreement; (iii) summarily justify its 
	  	  	  	  	determination; and (iv) not act as an arbitrator except to the extent strictly 
	  	  	  	  	required to make the determinations contemplated hereby. 
	  
	  	  	(b) 	  	Pursuant to the Engagement Letter, the Independent Accountant shall, within 
	  	  	  	  	20 (twenty) Business Days of the date on which any Disputed Matters have 
	been submitted to it under section 4.5.4(b), deliver to the Parties: 
	  
	  	  	  	  	(i) 	  	the Closing Balance Sheet, adjusted to reflect any determination of the 
	  	  	  	  	  	  	Independent Accountant on the Disputed Matters; and 
	  
	  	  	  	  	(ii) 	  	a certificate containing the determination by the Independent 
	  	  	  	  	  	  	Accountant of the Endesa Europa Final Net Debt, adjusted to reflect 
	  	  	  	  	  	  	any determination of the Independent Accountant on the Disputed 
	  	  	  	  	  	  	Matters. 
	  
	  	  	(c) 	  	The Parties agree that the determinations of the Independent Accountant 
	  	  	  	  	pursuant to this section 4.5.5 shall be final and binding upon the Investors and 
	  	  	  	  	E.ON and that the Closing Balance Sheet and the Endesa Europa Final Net 
	  	  	  	  	Debt as determined by the Independent Accountant, shall not be subject to any 
	  	  	  	  	further challenge by the Parties. 
	  
	  	  	(d) 	  	The costs and expenses of the Independent Accountant shall be borne 50% 
					(fifty percent) by the Investors and 50% (fifty percent) by E.ON.
	  
	5. 	  	TRANSFER OF THE ADDITIONAL ASSETS 
	  
	5.1 	  	Undertakings of the Investors 
	  
	5.1.1 	  	As soon as reasonably practicable after the obtainment of the Effective Control by the 
	  	  	Investors, the Investors shall: 
	  
	  	  	(a) 	  	submit to the Endesa corporate bodies the proposal of: 
	  
	  	  	  	  	(i) 	  	selling to E.ON the assets listed in schedule 5.1.1(a)(i) attached hereto 
							(the Additional Assets) on the Closing Date, and
	  
	  	  	  	  	(ii) 	  	entering with E.ON into the drawing rights agreement, the main 
	  	  	  	  	  	  	commercial terms of which are attached hereto as schedule 5.1.1(a)(ii) 
	  	  	  	  	  	  	(the Drawing Rights Agreement); and 
	  
	  	  	(b) 	  	exercise their rights as shareholders in Endesa to support such proposals 
	  	  	  	  	and finally cause Endesa to sell the Additional Assets and to enter into the 
	  	  	  	  	Drawing Rights Agreement, in consideration for the price set out in section 
	  	  	  	  	5.2, and E.ON undertakes to acquire the Additional Assets in consideration for 
	  	  	  	  	such price, and to enter into the Drawing Rights Agreement. 

15

	5.1.2 	  	The supply of gas to the Additional Assets by Endesa or by third parties under supply 
	  	  	agreements entered into with Endesa will continue after the Closing Date. If on the 
	  	  	Closing Date there are supply agreement(s) in effect the exclusive object of which 
	  	  	is(are) the supply of gas to one or more of the Additional Assets, such specific supply 
	  	  	agreement(s) shall be assigned to E.ON if legally and contractually possible. The supply 
	  	  	of gas by Endesa under framework agreements or non-assignable agreements shall 
	  	  	continue under the same terms and conditions as prior thereto, except that the price 
	  	  	will be market price, until the earlier of (i) the expiry of the relevant supply agreement 
	  	  	and (ii) the 5th (fifth) anniversary of the Closing Date. During that period of 5 (five) 
	  	  	year, E.ON shall use its best efforts to find alternative sources of supply from the 5th 
	  	  	(fifth) anniversary of the Closing Date. Should E.ON fail to find such alternative 
	  	  	sources of supply, the Parties will negotiate in good faith an extension of supply by 
	  	  	Endesa at then prevailing market conditions. The economic value attributable to the 
	  	  	economic terms and conditions of the gas supply to the Additional Assets provided for 
	  	  	in this section will be taken into account in the calculation of the Price of the 
	  	  	Additional Assets. 
	  
	5.1.3 	  	The Parties undertake to negotiate in good faith, and to execute on or prior to the Closing Date,
	  	  	the Drawing Rights Agreement on the basis of the main commercial terms referred to in section 5.1.1(a)(ii). 
	  
	5.2 	  	Price for the Additional Assets 
	  
	5.2.1 	  	As consideration for the purchase and sale of all the Additional Assets, E.ON shall pay 
	  	  	to Endesa an amount equal to the fair market value of the Additional Assets, to be 
	  	  	determined in accordance with the provisions of section 5.3 below (the Price for the 
	  	  	Additional Assets). 
	  
	5.2.2 	  	The Price for the Additional Assets shall be paid on the Closing Date. 
	  
	5.3 	  	Determination of the Price for the Additional Assets 
	  
	5.3.1 	  	The valuation methodology and process provided for in section 4.4 shall apply, mutatis 
	  	  	mutandis, to the determination of the Price for the Additional Assets. 
	  
	5.3.2 	  	Within 10 (ten) Business Days of the communication of the Price for the Additional 
	  	  	Assets to E.ON, E.ON will have the right not to purchase the Additional Assets (right 
	  	  	which will not entitle E.ON to purchase only a portion thereof) by giving written 
	  	  	notice to the Investors. 
	  
	6. 	  	TRANSFER OF THE VIESGO SHARES 
	  
	6.1 	  	Undertakings of Enel and E.ON 
	  
	6.1.1 	  	Upon the terms and conditions set out below, on the Closing Date Enel shall sell, and 
	  	  	shall cause its Affiliates to sell, the Viesgo Shares to E.ON, and E.ON shall acquire the 
	  	  	Viesgo Shares from Enel and its Affiliates. 
	  
	6.1.2 	  	As consideration for the purchase and sale of all the Viesgo Shares, E.ON shall pay to 

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	  	  	Enel and its Affiliates an amount equal to the Enterprise Value of the Viesgo 
	  	  	Companies (the Viesgo Companies Enterprise Value) less the Viesgo Companies Final 
	  	  	Net Debt (as defined below) if the debt exceeds the cash, or plus the Viesgo Companies
	  	  	Final Debt if the cash exceeds the debt, as determined in accordance with the provisions of  
			sections 6.4 and 6.5 (the Price for the Viesgo Shares).
	  
	6.1.3 	  	The Price for the Viesgo Shares shall be paid as follows: 
	  
	  	  	(a) 	  	at Closing, E.ON shall pay to Enel and its Affiliates an amount equal to the 
	  	  	  	  	Viesgo Companies Final Enterprise Value (as defined below) less the Viesgo 
	  	  	  	  	Companies Provisional Net Debt (as defined below) (the Provisional Price 
	  	  	  	  	for the Viesgo Shares); 
	  
	  	  	(b) 	  	within 5 (five) Business Days after the definitive determination of the Net Debt 
	  	  	  	  	of the Viesgo Companies as of the Closing Date in accordance with the 
	  	  	  	  	provisions of section 6.5 (the Viesgo Companies Final Net Debt) : 
	  
	  	  	  	  	(i) 	  	E.ON shall pay to Enel and its Affiliates an amount equal to the 
	  	  	  	  	  	  	difference (if positive) between (1) the Viesgo Companies Provisional 
	  	  	  	  	  	  	Net Debt and (2) the Viesgo Companies Final Net Debt; or 
	  
	  	  	  	  	(ii) 	  	Enel shall pay, and shall cause its Affiliates to pay, to E.ON an amount 
	  	  	  	  	  	  	equal to the difference (if negative) between (1) the Viesgo Companies 
	  	  	  	  	  	  	Provisional Net Debt and (2) the Viesgo Companies Final Net Debt. 
	  
	6.1.4 	  	With the sole purpose of determining the Provisional Price for the Viesgo Shares to be 
	  	  	paid at Closing, the Viesgo Companies Provisional Net Debt shall mean an amount 
	  	  	equal to the Net Debt of the Viesgo Companies resulting from the latest available 
	  	  	accounts. It is agreed and understood that the Viesgo Companies Provisional Net Debt 
	  	  	shall not bind the Independent Accountant in the determination of the Viesgo 
	  	  	Companies Final Net Debt. 
	  
	6.2 	  	Escrow 	  	  
	  
	  	  	To secure the performance of the obligations set out in section 6.1 above, as soon as 
	  	  	practicable after the date hereof and in any event no later than 20 (twenty) Business 
	  	  	Days: 	  	  	  	  
	  
	  	  	(a) 	  	Enel and E.ON shall execute with the Escrow Agent an escrow agreement 
	  	  	  	  	regarding the Viesgo Shares in the form attached hereto as schedule 6.2(a) (the 
	  	  	  	  	Escrow Agreement), except for the changes and amendments requested by, 
	  	  	  	  	and agreed with, the Escrow Agent; and 
	  
	  	  	(b) 	  	Enel shall deliver the documentation relating to the Viesgo Shares required 
	  	  	  	  	under the Escrow Agreement. 
	  
	6.3 	  	Viesgo Carve-Out 
	  
	  	  	E.ON acknowledges that during the Interim Period Enel will have the right to cause 
	  	  	the Viesgo Companies to transfer to Enel (or any company designated by the same) the 

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	  	  	participation held in EUFER S.A. (the Viesgo Carved-Out Asset) prior to 
	  	  	the Closing Date. To such effect, Enel shall cause the appropriate corporate bodies of 
	  	  	each of the Viesgo Companies to pass such resolutions and take such other actions as 
	  	  	shall be necessary, under applicable Laws, to transfer the Viesgo Carved-Out Asset. 
	  
	6.4 	  	Determination of the Viesgo Companies Enterprise Value 
	  
	6.4.1 	  	The valuation methodology and process provided for in section 4.4 shall apply, mutatis 
	  	  	mutandis, to the determination of the Viesgo Companies Enterprise Value. It is 
	  	  	understood that the Carved-Out Asset shall not be considered within the Viesgo 
	  	  	Companies for the purposes of determining the Viesgo Companies Enterprise Value. 
	  
	6.4.2 	  	The Viesgo Companies Enterprise Value as finally determined in accordance with the 
	  	  	provisions of section 6.4 shall be referred to as the Viesgo Companies Final 
	  	  	Enterprise Value. 
	  
	6.4.3 	  	Within 10 (ten) Business Days of the communication of the Viesgo Companies 
	  	  	Enterprise Value to E.ON, E.ON will have the right not to purchase the Viesgo Shares 
	  	  	(right which will not entitle E.ON to purchase only a portion thereof) by giving written 
	  	  	notice to the Investors. 
	  
	6.5 	  	Determination of the Viesgo Companies Final Net Debt 
	  
	  	  	The process provided for in section 4.5 shall apply, mutatis mutandis, to the 
	  	  	determination of the Viesgo Companies Final Net Debt. 
	  
	7. 	  	INTERIM MANAGEMENT OF THE VIESGO COMPANIES 
	  
	7.1 	  	Undertakings of Enel 
	  
	7.1.1 	  	Except for any action, transaction, agreement, investment relating to the projects listed 
	  	  	in schedule 7.1.1 attached hereto or as otherwise provided for in other clauses of, or 
	  	  	schedules to, this Agreement or as otherwise approved in writing by E.ON after the 
	  	  	date hereof (which approval shall not be unreasonably withheld or delayed), during the 
	  	  	period from the date of this Agreement to the Closing Date (the Interim Period), 
	  	  	Enel shall take, to the extent permitted by applicable Law, all reasonable steps to cause 
	  	  	the Viesgo Companies to conduct their business in the ordinary course consistent with 
	  	  	past practice. 
	  
	7.1.2 	  	In particular, subject to the aforesaid exceptions, Enel shall cause each of the Viesgo 
	  	  	Companies not to: 
	  
	  	  	(a) 	  	carry out any material transactions which are outside the ordinary course of 
	  	  	  	  	business, except for the substitution of intra-group debt with financial debt; 
	  
	  	  	(b) 	  	acquire or dispose of any participations in the equity of other companies or any 
	  	  	  	  	other interest in an undertaking, or acquire, dispose of or lease (as lessor or 
	  	  	  	  	lessee) any business or substantial segment of business; 

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	  	  	(c) 	  	purchase, sell, transfer, encumber, lease (as lessor or lessee), license (as licensor 
	  	  	  	  	or licensee) or otherwise acquire or dispose of tangible or intangible assets 
	  	  	  	  	(other than inventory) having a fair market value in excess of Euro 50,000,000 
	  	  	  	  	(fifty million); 
	  
	  	  	(d) 	  	enter into any partnership, joint ventures or strategic alliance; 
	  
	  	  	(e) 	  	increase the rate of compensation payable or to become payable to any key 
	  	  	  	  	managers, other than increases (i) made generally in accordance with normal 
	  	  	  	  	past practice and in the ordinary course of business, or (ii) mandated by 
	  	  	  	  	applicable Law or collective bargaining (either national or negotiated at 
	  	  	  	  	company’s level) or individual agreement in force as of the date hereof; 
	  
	  	  	(f) 	  	enter into, amend or terminate an agreement, arrangement or obligation (legally 
	  	  	  	  	enforceable or not) to which any of Enel, Acciona, Endesa and their Affiliates 
	  	  	  	  	is a party; 
	  
	  	  	(g) 	  	pay any dividend or make any distribution of assets to Enel or its Affiliates; and 
	  
	  	  	(h) 	  	agree to do any of the foregoing. 
	  
	7.1.3 	  	Enel shall cause (i) an ordinary shareholders’ meeting of each of the Viesgo Companies 
	  	  	to be held as soon as praticable after the date hereof for the appointment of a director 
	  	  	designated by E.ON, it being understood that, as a condition of such appointment, 
	  	  	such director shall be independent from E.ON and shall enter into a confidentiality 
	  	  	agreement with Enel, in form and substance satisfactory to Enel and (ii) its Affiliates 
	  	  	not to revoke the directors so appointed during the Interim Period, except for cause, 
	  	  	willful misconduct, gross negligence or violation of the confidentiality agreement. 
	  
	7.1.4 	  	Enel is entitled to retain any key personnel of the Viesgo Companies within Enel or
	  	  	Endesa or any of their Affiliates after the Closing Date, provided that, within 45 (forty-five) 
	  	  	Business Days of the date hereof, Enel notifies E.ON of the names of any such key personnel. 
	  
	7.2 	  	Procedure for E.ON’s Consent 
	  
	7.2.1 	  	If, during the Interim Period, Enel intends to cause each of the Viesgo Companies to 
	  	  	take any of the actions referred to in section 7.1.2 which are not otherwise permitted or 
	  	  	approved by other provisions of, or schedule to, this Agreement, Enel shall notify in 
	  	  	writing E.ON’s designated representative whom E.ON will identify in writing within 
	  	  	and not later than 5 (five) Business Days after the date hereof (the Designated 
	  	  	Representative). The failure to designate the Designated Representative by E.ON 
	  	  	shall be regarded as an approval of any action notified by Enel pursuant to this section 
	  	  	7.2.1. 	  	  
	  
	7.2.2 	  	Any action notified to the Designated Representative as provided in section 7.2.1 in 
	  	  	respect of which the Designated Representative (if designated in accordance with 
	  	  	section 7.2.1) does not express its dissent in writing within and not later than 3 (three) 
	  	  	Business Days from the date of receipt of the relevant written notification, shall be 
	  	  	deemed to have been approved in writing by E.ON. 

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	7.3 	  	Certain Rights of E.ON 
	  
	  	  	During the Interim Period, Enel shall, and shall cause the Viesgo Companies to, 
	  	  	provide E.ON and its representatives reasonable access to the key managers of the 
	  	  	Viesgo Companies at such times, during normal business hours, as shall be mutually 
	  	  	agreed upon; provided however that, without the prior written consent of Enel, E.ON 
	  	  	shall not be permitted to make contact with the employees, consultants, customers, 
	  	  	distributors and agents of Enel and its Affiliates and provided further that nothing 
	  	  	herein shall be construed as requiring Enel to, and to cause the Viesgo Companies to, 
	  	  	furnish E.ON or provide E.ON with access to: (i) documents or matters which Enel 
	  	  	and/or the Viesgo Companies are prohibited from disclosing by reason of contractual 
	  	  	obligations, or (ii) any information that is subject to legal restraint or privilege. 
	  
	8. 	  	CONDITIONS PRECEDENT 
	  
	8.1 	  	Conditions Precedent 
	  
	8.1.1 	  	The obligation of the Parties to effect the Closing pursuant to this Agreement is subject 
	  	  	to the following conditions: 
	  
	  	  	(a) 	  	the Investors shall have obtained the Effective Control; 
	  
	  	  	(b) 	  	the Endesa Europa Enterprise Value, the Price for the Additional Assets and 
	  	  	  	  	the Viesgo Companies Enterprise Value shall have been finally determined in 
	  	  	  	  	accordance with sections 4.4, 5.3 and 6.4; 
	  
	  	  	(c) 	  	the sale and purchase ofthe Endesa Europa Shares, the Additional Assets and 
	  	  	  	  	the Viesgo Shares pursuant to this Agreement and all other relevant 
	  	  	  	  	transactions contemplated hereby shall have been approved, cleared or granted 
	  	  	  	  	an exemption by any competent antitrust authority, to the extent that any such 
	  	  	  	  	approval, clearance or exemption is required by any applicable Law (the 
	  	  	  	  	approvals, clearances and exemptions contemplated above are hereinafter 
	  	  	  	  	collectively referred to as the Clearance); 
	  
	  	  	(d) 	  	the sale and purchase of the Endesa Europa Shares, the Additional Assets and 
	  	  	  	  	the Viesgo Shares pursuant to this Agreement and all other relevant 
	  	  	  	  	transactions contemplated hereby shall have been approved, cleared or granted 
	  	  	  	  	an exemption by any competent regulatory authority, to the extent that any 
	  	  	  	  	such approval, clearance or exemption is required by any applicable Law (the 
	  	  	  	  	approvals, clearances and exemptions contemplated above are hereinafter 
	  	  	  	  	collectively referred to as the Approval and, together with the conditions 
	  	  	  	  	precedent contemplated in paragraphs (a), (b) and (c) above, the Conditions 
	  	  	  	  	Precedent). 
	  
	8.1.2 	  	The Condition Precedent referred to in section 8.1.1(a) may be unilaterally waived by 
	  	  	the Investors if both agree, by giving written notice at any time after the date hereof 
	  	  	but prior to the expiration of the term provided in section 8.3.1. 

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	8.1.3 	  	The Parties shall use their respective best efforts to cause all necessary actions to be 
	  	  	taken in order to have all the Conditions Precedent to be fulfilled as expeditiously and 
	  	  	promptly as practicable. In particular, the Investors undertake to pursue the launching 
	  	  	of the Investors Tender Offer as soon as reasonably practicable and in the most 
	  	  	expeditious manner in compliance with applicable Law and Governmental Bodies and 
	  	  	shall use their best efforts, including without limitation by voting in the Endesa 
	  	  	shareholders meeting, to obtain the Effective Control. 
	  
	8.2 	  	Investors Tender Offer, Clearance and Approval 
	  
	8.2.1 	  	As soon as practicable after the date hereof, the Investors shall duly and properly file 
	  	  	all applications, requests and other documents that are required to launch the Investors 
	  	  	Tender Offer in accordance with the terms of the Agreement with respect to the 
	  	  	Endesa Shares as in effect as of the date hereof; the Investors shall keep 
	  	  	E.ON informed in a timely fashion of all steps taken pursuant hereto. 
	  
	8.2.2 	  	As soon as practicable after the date hereof, E.ON shall duly and properly file all 
	  	  	applications, requests and other documents that are required to obtain the Clearance 
	  	  	and the Approval and shall take all steps as may be necessary to cause the Clearance 
	  	  	and the Approval to be granted as promptly as practicable; E.ON shall keep the 
	  	  	Investors informed in a timely fashion of all steps taken pursuant hereto, and the 
	  	  	Investors shall actively cooperate with E.ON to obtain the Clearance and the Approval 
	  	  	as soon as possible. 
	  
	8.2.3 	  	The Parties agree that, for the purposes of this Agreement, the Clearance and the 
	  	  	Approval will be deemed to have been granted even if the approvals, clearances and 
	  	  	exemptions contemplated under sections 8.1.1(c) and 8.1.1(d) are subject to orders, 
	  	  	provisions, conditions or obligations on E.ON by the relevant authorities which 
	  	  	subordinate the execution of the provisions of this Agreement to the fulfilment of 
	  	  	prescriptions, measures and/or conditions of any type. Furthermore, E.ON undertakes 
	  	  	to accept any prescriptions, measures and/or conditions imposed by any competent 
	  	  	authority. 
	  
	8.3 	  	Effects 
	  
	8.3.1 	  	If the Condition Precedent set out in section 8.1.1(a) is not satisfied or waived on or 
	  	  	prior to 31 December 2009, this Agreement shall automatically terminate and the 
	  	  	Parties shall be released from all obligations hereunder except for: (i) any rights or 
	  	  	obligations arising under article 15, section 16.5, section 16.13 and article 17; and (ii) 
	  	  	any rights or obligations arising in connection with any breach of this Agreement. 
	  
	8.3.2 	  	If the Conditions Precedent set out in sections 8.1.1(b), 8.1.1(c) and 8.1.1(d) are not 
	  	  	satisfied or waived on or prior to 31 December 2009 in respect of the Endesa Europa 
	  	  	Shares and/or the Viesgo Shares and the Additional Assets, then the Parties shall not 
	  	  	proceed with the Closing in respect of the affected shares or assets (as the case may be) 
	  	  	and the Agreement shall remain in force in all other respects (including in respect of 
	  	  	the non affected shares or assets). 

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	9.	 	CLOSING	 	 
	 
	9.1	 	Date and Place of Closing
	 
	 	 	The Closing shall take place in Madrid at or around 12:00 noon local time on the
	 	 	Closing Date, or at such other place, date and time as the Parties may hereafter agree in
	 	 	writing.	 	 	 	 
	 
	9.2	 	Deliveries at Closing
	 
	9.2.1	 	In addition to any other action to be taken and to any other instrument to be executed
	 	 	and/or delivered pursuant to this Agreement at the Closing:
	 
	 	 	(a)	 	E.ON shall:
	 
	 	 	 	 	(i)	 	pay or cause to be paid to Endesa the Provisional Price for the Endesa
	 	 	 	 	 	 	Europa Shares and the Price for the Additional Assets and pay or cause
	 	 	 	 	 	 	to be paid to Enel and its Affiliates the Provisional  Price for the Viesgo Shares;
	 
	 	 	 	 	(ii)	 	execute and deliver or cause to be executed and delivered such transfer
	 	 	 	 	 	 	or other instruments in respect of the purchase and sale of the Endesa
	 	 	 	 	 	 	Europa Shares and the Additional Assets contemplated hereunder as
	 	 	 	 	 	 	may be necessary, under applicable Law, to properly effect the
	 	 	 	 	 	 	purposes of this Agreement and comply with applicable Law; and
	 
	 	 	 	 	(iii)	 	deliver to the Investors all other previously undelivered items required
	 	 	 	 	 	 	to be delivered pursuant to this Agreement or in connection herewith;
	 
	 	 	(b)	 	simultaneously with the receipt by the Investors of satisfactory evidence that
	 	 	 	 	the Provisional Price for the Endesa Europa Shares and the Price for the
	 	 	 	 	Additional Assets have been credited to the bank account of Endesa to be
	 	 	 	 	indicated by the Investors in accordance with section 16.6, the Investors shall cause Endesa to: 
	 
	 	 	 	 	(i)	 	execute and deliver such transfer and other instruments as may be necessary, under
	 	 	 	 	 	 	applicable Law, to vest in E.ON marketable title to the Endesa Europa
	 	 	 	 	 	 	Shares and the Additional Assets and to otherwise properly effect the
	 	 	 	 	 	 	purposes of this Agreement or comply with any applicable Law; and
	 
	 	 	 	 	(ii)	 	deliver to E.ON all other previously undelivered items required to be
	 	 	 	 	 	 	delivered pursuant to this Agreement or in connection herewith.
	 
	9.2.2	 	On the Closing Date simultaneously with the receipt by Enel and its relevant Affiliates
	 	 	satisfactory evidence that the Provisional Price for the Viesgo Shares has been credited
	 	 	to the bank account of Enel and its relevant Affiliates:
	 	 	 
	 	 	(a)  Enel and E.ON shall jointly instruct the Escrow Agent to release the Escrow Documents and transfer to E.ON
			title to the Viesgo Shares; and
			
			(b) upon such joint instructions, the Escrow Agent shall release the Escrow Documents (as defined in the Escrow
			Agreement) and transfer to E.ON title to the Viesgo Shares in accordance with the Escrow Agreement.
	 

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	9.3 	  	Remedies 
	  
	9.3.1 	  	If the respective obligations of the Investors or E.ON under section 9.2 are not 
	  	  	complied with on the Closing Date, the non-defaulting Party may, without prejudice to 
	  	  	any other right and remedy under this Agreement and applicable Law: 
	  
	  	  	(a) 	  	defer the Closing (in which case this article 9 shall apply to the Closing as so 
	  	  	  	  	deferred); or 
	  
	  	  	(b) 	  	proceed with the Closing as far as practicable and waive all or any such act or 
	  	  	  	  	obligation; or 
	  
	  	  	(c) 	  	proceed with the Closing as far as practicable and reserve the right to ask 
	  	  	  	  	specific performance of all or any such act or obligation; or 
	  
	  	  	(d) 	  	forthwith terminate this Agreement by giving a notice in writing to the 
	  	  	  	  	defaulting Party but only in circumstances where such defaulting Party has not 
	  	  	  	  	complied with its obligations under sections 9.2.1(a)(i) and 9.2.1(b)(i) (as the 
	  	  	  	  	case may be) and the non compliance has not been cured within 15 (fifteen) 
	  	  	  	  	Business Days of such notice. 
	  
	9.3.2 	  	For the avoidance of doubt, E.ON will not be obliged to purchase the Viesgo Shares if 
	  	  	the Additional Assets are not transferred simultaneously, and viceversa. 
	  
	9.4 	  	One Transaction 
	  
	9.4.1 	  	Without prejudice to the provisions of section 9.3, all actions and transactions 
	  	  	constituting the Closing pursuant to section 9.2 shall be regarded as one single 
	  	  	transaction so that, at the option of the Party having interest in the performance of the 
	  	  	relevant specific action or transaction, no action or transaction constituting the Closing 
	  	  	shall be deemed to have taken place if and until all other actions and transactions 
	  	  	constituting the Closing shall have been properly performed in accordance with the 
	  	  	provisions of this Agreement. 
	  
	9.4.2 	  	If the Conditions Precedent set out in sections 8.1.1(b), 8.1.1(c) and 8.1.1(d) are 
	  	  	satisfied or waived in respect of the Endesa Europa Shares but not the Viesgo Shares 
	  	  	and the Additional Assets (or viceversa), then the Parties shall proceed with the Closing 
	  	  	in respect of the Endesa Europa Shares and the Agreement shall remain in force in 
	  	  	other respect of the Viesgo Shares and the Additional Assets (and viceversa). In case of 
	  	  	a Closing with respect to only part of the transactions that whould have occurred in a 
	  	  	comprehensive Closing, the Parties shall amend the Agreement as appropriate. 

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	10. 	  	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS OF THE INVESTORS 
	  
	10.1 	  	Undertakings of Enel 
	  
	  	  	Enel hereby makes the following representations and warranties to E.ON. 
	  
	10.1.1 	  	Organization and Standing 
	  
	  	  	Enel is a corporation duly incorporated, validly existing and in good standing under the 
	  	  	Law of its jurisdiction of incorporation. 
	  
	10.1.2 	  	Authorization 
	  
	  	  	(a) 	  	All corporate and other actions required to be taken by, or on behalf of, Enel 
	  	  	  	  	to authorize Enel to enter into this Agreement have been duly and properly 
	  	  	  	  	taken, and this Agreement has been duly executed and delivered by Enel and 
	  	  	  	  	constitutes valid and binding obligations of Enel, enforceable against it in 
	  	  	  	  	accordance with its terms. 
	  
	  	  	(b) 	  	Except as otherwise provided in section 8.1.1, no application to, or filing with, 
	  	  	  	  	or consent, authorization or approval of, or license, permit, registration, 
	  	  	  	  	declaration or exemption by, any supranational or Governmental Body is 
	  	  	  	  	required of Enel in connection with the execution and performance of this 
	  	  	  	  	Agreement. 
	  
	10.1.3 	  	No Conflict 
	  
	  	  	The execution and delivery of this Agreement, and the consummation of the 
	  	  	transactions contemplated hereby, will not result in a breach of, or constitute a default 
	  	  	under the articles of association or the by-laws of Enel, or of any material agreement or 
	  	  	instrument by which Enel is bound, or violate any Law applicable to Enel. 
	  
	10.1.4 	  	Share Capital of the Viesgo Companies 
	  
	  	  	(a) 	  	The Viesgo Shares will be fully paid up and collectively constitute 100% of the 
	  	  	  	  	issued and outstanding capital of the Viesgo Companies. 
	  
	  	  	(b) 	  	There will be no options, warrants, conversion or subscription rights, 
	  	  	  	  	agreements, contracts or commitments of any kind obligating the Viesgo 
	  	  	  	  	Companies, conditionally or otherwise, to issue or sell any new share, or any 
	  	  	  	  	instrument convertible into or exchangeable for any such share, or to 
	  	  	  	  	repurchase or redeem any of the shares. 
	  
	10.1.5 	  	Ownership 
	  
	  	  	The Affiliates of Enel have marketable title to the Viesgo Shares, free and clear of any 
	  	  	encumbrance, lien, claim, charge, security, mortgage, pledge, easement, conditional sale 
	  	  	or other title retention agreement, or other similar restriction or third-party rights, as 

24

	  	  	well as full right, power and authority to sell, assign, transfer and deliver the Viesgo 
	  	  	Shares in accordance with the terms of this Agreement. 
	  
	10.1.6 	  	Viesgo Companies Financial Statements 
	  
	  	  	The financial statements of the Viesgo Companies relating to the financial year ending 
	  	  	on 31 December 2006, attached hereto as schedule 10.1.6, have been prepared in 
	  	  	accordance with the Accounting Principles applied on a consistent basis and give a true 
	  	  	and fair representation (in accordance with such accounting principles) of the assets, 
	  	  	liabilities and net worth of the Viesgo Companies as of the reference date thereof, its 
	  	  	revenues and expenses and the result of their operations for the period indicated. 
	  
	10.1.7 	  	No Brokers 
	  
	  	  	Enel has not incurred any liability for any brokerage, finder's or similar fees or 
	  	  	commissions in connection with the transactions contemplated hereby, the payment of 
	  	  	which could be validly claimed from E.ON, any Affiliate of E.ON, the Viesgo 
	  	  	Companies or Endesa Europa. 
	  
	10.2 	  	Undertakings of Acciona 
	  
	  	  	Acciona hereby makes the following representations and warranties to E.ON. 
	  
	10.2.1 	  	Organization and Standing 
	  
	  	  	Acciona is a corporation duly incorporated, validly existing and in good standing under 
	  	  	the Law of its jurisdiction of incorporation. 
	  
	10.2.2 	  	Authorization 
	  
	  	  	(a) 	  	All corporate and other actions required to be taken by, or on behalf of, 
	  	  	  	  	Acciona to authorize Acciona to enter into this Agreement have been duly and 
	  	  	  	  	properly taken, and this Agreement has been duly executed and delivered by 
	  	  	  	  	Acciona and constitutes valid and binding obligations of Acciona, enforceable 
	  	  	  	  	against them in accordance with its terms. 
	  
	  	  	(b) 	  	Except as otherwise provided in section 8.1.1, no application to, or filing with, 
	  	  	  	  	or consent, authorization or approval of, or license, permit, registration, 
	  	  	  	  	declaration or exemption by, any supranational or Governmental Body is 
	  	  	  	  	required of Acciona in connection with the execution and performance of this 
	  	  	  	  	Agreement. 
	  
	10.2.3 	  	No Conflict 
	  
	  	  	The execution and delivery of this Agreement, and the consummation of the 
	  	  	transactions contemplated hereby, will not result in a breach of, or constitute a default 
	  	  	under the articles of association or the by-laws of Acciona, or of any material 
	  	  	agreement or instrument by which Acciona is bound, or violate any Law applicable to 

25

	  	  	Acciona. 
	  
	10.2.4 	  	No Brokers 
	  
	  	  	Acciona has not incurred any liability for any brokerage, finder's or similar fees or 
	  	  	commissions in connection with the transactions contemplated hereby, the payment of 
	  	  	which could be validly claimed from E.ON, any Affiliate of E.ON, the Viesgo 
	  	  	Companies or Endesa Europa. 
	  
	10.3 	  	Undertakings of the Investors 
	  
	  	  	The Investors hereby undertake that, for the period from the Effective Date until the 
	  	  	Closing Date, they shall not take any action which may materially and adversly affect 
	  	  	Endesa Europa and its Affiliates, or the Additional Assets, or the ability by Endesa to 
	  	  	transfer the Endesa Europa Shares and the Additional Assets in conformity with this 
	  	  	Agreement. 
	  
	10.4 	  	Accuracy as at the Closing Date 
	  
	  	  	The representations and warranties of Enel and Acciona contained herein shall be true 
	  	  	and correct in all material respects as of, and as though made on, the Closing Date, 
	  	  	except for those representations and warranties that are given as of a certain date or for 
	  	  	a certain period, in which case such representations and warranties shall be true and 
	  	  	correct in all material respects as of such date or for such period, and except as affected 
	  	  	by actions or transactions (i) contemplated herein or otherwise approved in writing by 
	  	  	E.ON or (ii) taken or made in accordance with article 7. 
	  
	10.5 	  	No other representations and warranties. No inducement or reliance 
	  
	10.5.1 	  	The representations and warranties of the Investors contained in this article 10 are in 
	  	  	lieu of all other representations and warranties however provided under applicable Law 
	  	  	and constitute all of the representations and warranties made by the Investors in 
	  	  	connection with the purchase and sale of the Viesgo Shares, the Endesa Europa Shares 
	  	  	and the Additional Assets and any other transactions contemplated by this Agreement 
	  	  	(as the case may be). In particular, except for the representations and warranties 
	  	  	contained in this article 10, the Investors do not make any representations or 
	  	  	warranties, and the Investors hereby disclaim any other representations or warranties, 
	  	  	whether made by the Investors, any of their Affiliates, or any of their respective 
	  	  	officers, directors, employees, agents, advisors or representatives or by any other 
	  	  	Person representing or purporting to represent the Investors, with respect to the 
	  	  	execution and delivery of this Agreement or the transactions contemplated hereby, 
	  	  	notwithstanding the delivery or disclosure to E.ON or its representatives of any 
	  	  	documentation or other information with respect to any one or more of the foregoing. 
	  	  	Without limiting the generality of the foregoing, the Investors make no representation 
	  	  	and give no warranty to E.ON with respect to financial projections, budgets or 
	  	  	management analyses and to the future profitability and financial performance of the 
	  	  	Viesgo Companies, Endesa Europa and the Additional Assets. 

26

	10.5.2 	  	E.ON declares and states that it has not been induced by and has not relied upon any 
	  	  	representations, warranties or statements, whether express or implied, made by the 
	  	  	Investors, any of their Affiliates, or any of their respective officers, directors, 
	  	  	employees, agents, advisors or representatives or by any other Person representing or 
	  	  	purporting to represent the Investors, that are not expressly set forth in this 
	  	  	Agreement, whether or not any such representations, warranties or statements were 
	  	  	made in writing or orally. 
	  
	11. 	  	REPRESENTATIONS AND WARRANTIES OF E.ON 
	  
	11.1 	  	Undertaking of E.ON 
	  
	  	  	E.ON hereby makes the following representations and warranties to the Investors. 
	  
	11.1.1 	  	Organization and Standing 
	  
	  	  	E.ON is a corporation duly incorporated, validly existing and in good standing under 
	  	  	the Law of its jurisdiction of incorporation. 
	  
	11.1.2 	  	Authorization 
	  
	  	  	(a) 	  	All corporate and other actions required to be taken by, or on behalf of, E.ON 
	  	  	  	  	to authorize E.ON to enter into and to perform this Agreement have been duly 
	  	  	  	  	and properly taken, and this Agreement has been duly executed and delivered 
	  	  	  	  	by E.ON and constitutes the valid and binding obligations of E.ON, 
	  	  	  	  	enforceable against it in accordance with its terms. 
	  
	  	  	(b) 	  	Except as otherwise provided in section 8.1.1, no application to, or filing with, 
	  	  	  	  	or consent, authorization or approval of, or license, permit, registration, 
	  	  	  	  	declaration or exemption granted by, any supranational or Governmental Body 
	  	  	  	  	is required of E.ON in connection with the execution and performance of this 
	  	  	  	  	Agreement. 
	  
	11.1.3 	  	No Conflict 
	  
	  	  	The execution and delivery of this Agreement, and the consummation of the 
	  	  	transactions contemplated hereby, will not conflict with, result in a breach of, 
	  	  	constitute a default under, or give rise to a right of termination, cancellation or 
	  	  	acceleration of, the articles of association or the by-laws of E.ON, or any material 
	  	  	agreement or instrument by which it is bound, or violate any Law applicable to it. 
	  
	11.1.4 	  	No Brokers 
	  
	  	  	E.ON has not incurred any liability for any brokerage, finder's or similar fees or 
	  	  	commissions in connection with the transactions contemplated hereby the payment of 
	  	  	which could be validly claimed from the Investors, Endesa or any of their Affiliates. 

27

	11.2 	  	Accuracy as of the Closing Date 
	  
	  	  	The representations and warranties of E.ON contained herein shall be true and correct 
	  	  	in all material respects as of, and as though made on, the Closing Date, except for 
	  	  	those representations and warranties that are given as of a certain date or for a certain 
	  	  	period, in which case such representations and warranties shall be true and correct in all 
	  	  	material respects as of such date or for such period, and except as affected by actions 
	  	  	or transactions contemplated herein or otherwise approved in writing by the Investors. 
	  
	11.3 	  	No other representations and warranties. No inducement or reliance 
	  
	11.3.1 	  	The representations and warranties of E.ON contained in this article 11 are in lieu of 
	  	  	all other representations and warranties however provided under applicable Law and 
	  	  	constitute all of the representations and warranties made by E.ON in connection with 
	  	  	the transactions contemplated by this Agreement (as the case may be). In particular, 
	  	  	except for the representations and warranties contained in this article 11, E.ON does 
	  	  	not make any representations or warranties, and E.ON hereby disclaims any other 
	  	  	representations or warranties, whether made by E.ON, any of its Affiliates, or any of 
	  	  	their respective officers, directors, employees, agents, advisors or representatives or by 
	  	  	any other Person representing or purporting to represent E.ON, with respect to the 
	  	  	execution and delivery of this Agreement or the transactions contemplated hereby, 
	  	  	notwithstanding the delivery or disclosure to the Investors or their representatives of 
	  	  	any documentation or other information with respect to any one or more of the 
	  	  	foregoing. 
	  
	11.3.2 	  	The Investors declare and state that they have not been induced by and have not relied 
	  	  	upon any representations, warranties or statements, whether express or implied, made 
	  	  	by E.ON, any of its Affiliates, or any of their respective officers, directors, employees, 
	  	  	agents, advisors or representatives or by any other Person representing or purporting 
	  	  	to represent E.ON, that are not expressly set forth in this Agreement, whether or not 
	  	  	any such representations, warranties or statements were made in writing or orally. 
	  
	12. 	  	INDEMNITY OBLIGATIONS 
	  
	12.1 	  	Indemnity Obligation of the Investors 
	  
	12.1.1 	  	Subject to the provisions of this article 12: 
	  
	  	  	(a) 	  	Enel shall indemnify and hold E.ON harmless in respect of any and all direct 
	  	  	  	  	damages suffered by E.ON arising out or as a result of any breach of the 
	  	  	  	  	representations and warranties contained in section 10.1 and the undertakings 
	  	  	  	  	or covenants of Enel contained in this Agreement; 
	  
	  	  	(b) 	  	Acciona shall indemnify and hold E.ON harmless in respect of any and all 
	  	  	  	  	direct damages suffered by E.ON arising out or as a result of any breach of the 
	  	  	  	  	representations and warranties contained in section 10.2 and the undertakings 
	  	  	  	  	or covenants of Acciona contained in this Agreement; and 

28

	  	  	(c) 	  	In case of joint actions or omissions, and only in case none of the preceding 
	  	  	  	  	paragraphs (a) and (b) applies, the Investors shall indemnify and hold E.ON 
	  	  	  	  	harmless in respect of any and all direct damages suffered by E.ON arising out 
	  	  	  	  	or as a result of any breach of the undertakings or covenants of the Investors 
	  	  	  	  	contained in this Agreement. 
	  
	12.1.2 	  	Anything in applicable Law to the contrary notwithstanding, the Parties agree as 
	  	  	follows: 	  	  
	  
	  	  	(a) 	  	the Investors shall be severally (and not jointly) (mancomunadamente) liable for all 
	  	  	  	  	purposes of this Agreement; 
	  
	  	  	(b) 	  	the Investors shall be severally (and not jointly) (mancomunadamente) liable in 
	  	  	  	  	proportion to their respective, direct and indirect, shareholdings in Endesa as a 
	  	  	  	  	result of the Investors Tender Offer in case of breach of any obligation, 
					provision or covenant hereunder attributable to both Investors;
	  
	  	  	(c) 	  	either Investor shall be liable on an exclusive basis in case of breach of any 
	  	  	  	  	obligation, provision or covenant hereunder attributable exclusively to that 
	  	  	  	  	Investor; 
	  
	  	  	(d) 	  	either Investor shall not guarantee or otherwise secure the performance of any 
	  	  	  	  	obligation, provision or covenant hereunder of the other Investor; 
	  
	  	  	(e) 	  	in no circumstance the breach of any obligation, provision or covenant 
	  	  	  	  	hereunder by an Investor (including without limitation the transfer of the 
	  	  	  	  	Viesgo Shares) shall entitle E.ON to refuse or delay the performance of any of 
	  	  	  	  	its obligation, provision or covenant hereunder vis-à-vis the non-breaching 
	  	  	  	  	Investor. 
	  
	12.1.3 	  	Anything in any applicable Law to the contrary notwithstanding, the Parties agree that 
	  	  	in no event shall any of the Investors be liable to E.ON under section 12.1.1 in respect 
	  	  	of any actual or alleged breach of the representations and warranties which is notified 
	  	  	to the relevant Investor later than 12 (twelve) after the Closing Date (it being 
	  	  	understood that any claim made during such period which is unresolved at the end of 
	  	  	such period shall have continuing effect until resolved to the extent an arbitration 
	  	  	proceedings pursuant to article 17 is initiated within 6 (six) months from the end of 
	  	  	such period). 
	  
	12.2 	  	Exclusive Remedy for breach of Reprentations and Warranties 
	  
	12.2.1 	  	The rights and remedies provided in this article 12 shall be exclusive and in lieu of any 
	  	  	other right, action, defence, claim or remedy of E.ON, provided by applicable Law or 
	  	  	otherwise, however arising in connection with, or by virtue of, any breach of the 
	  	  	representations and warranties of the Investors contained in this Agreement. In 
	  	  	particular, but without limitation, no breach or inaccuracy, even if material, of any 
	  	  	representations and warranties of the Investors will give rise to any right on the part of 
	  	  	E.ON to rescind or terminate this Agreement or to refuse to effect the Closing or to 
	  	  	perform its obligations set forth in this Agreement, prior to, on or after the Closing 

29

	  	  	Date. 
	  
	12.2.2 	  	E.ON acknowledges that the Investors have been induced to enter into this Agreement 
	  	  	by making full reliance on the provisions of sections 12.2.1 and 12.1.2 and that such 
	  	  	provisions have been essential in determining the consent of the Investors to execute 
	  	  	this Agreement. 
	  
	12.3 	  	Indemnity Obligation of E.ON 
	  
	12.3.1 	  	E.ON shall indemnify and hold the Investors harmless from, against and with respect 
	  	  	to any and all direct damages suffered by the Investors arising out, or as a result, of any 
	  	  	inaccuracy or breach of any representation or warranty made by, or any breach of any 
	  	  	covenant, undertaking or obligation undertaken by, E.ON in this Agreement. 
	  
	12.3.2 	  	The provisions of sections 12.1.3 and 12.2 shall apply, mutatis mutandis, to the indemnity 
	  	  	obligation of E.ON referred to in section 12.3.1. 
	  
	13. 	  	LITIGATION WITHDRAWAL, RELEASE OF CLAIMS 
	  
	  	  	By executing this Agreement, and effective as of the date of this Agreement, each of 
	  	  	E.ON, on the one hand, and Acciona and Enel, on the other hand (each, a Litigation 
	  	  	Party), agrees as follows: 
	  
	  	  	(a) 	  	such Litigation Party does hereby, on behalf of its Affiliates, its and their respective 
	  	  	  	  	directors, officers, employees, representatives, attorneys, agents, successors and 
	  	  	  	  	assigns (Affiliated Parties) release, remise, acquit, and forever discharge the other 
	  	  	  	  	Litigation Parties and any of their Affiliated Parties of and from all past, present, 
	  	  	  	  	and future claims, counterclaims, complaints, actions, causes of action, promises, 
	  	  	  	  	covenants, duties, damages, rights of set-off, indemnity, right or interest of any 
	  	  	  	  	kind or nature whatsoever, (whether compensatory, consequential, punitive, or 
	  	  	  	  	exemplary, and whether known or unknown, suspected or unsuspected, 
	  	  	  	  	foreseen or unforeseen, direct or indirect, contingent or actual, present or 
	  	  	  	  	future, however and whenever arising and in whatever capacity and 
	  	  	  	  	jurisdiction) and any and all suits of law, or in equity, and any liability of any 
	  	  	  	  	kind of nature whatsoever (each, a Claim) arising from or relating to Endesa 
	  	  	  	  	Shares, the transactions carried out to acquire Endesa Shares or control of 
	  	  	  	  	Endesa or the litigation between the parties in the U.S. District Court for the 
	  	  	  	  	Southern District of New York or elsewhere relating to Endesa, including, but 
	  	  	  	  	not limited to, the E.On Tender Offer, the Parties’ acquisition of Endesa 
	  	  	  	  	Shares, the equity swap and derivative transactions entered by any Party with 
	  	  	  	  	respect to Endesa Shares, any Party’s discussion with current or potential 
	  	  	  	  	shareholders, any agreement between Acciona and Enel, any order, ruling or 
	  	  	  	  	decision of the U.S. District Court for the District of New York or elsewhere, 
	  	  	  	  	and any disclosure or public or regulatory communication relating to any of the 
	  	  	  	  	foregoing (collectively, the Matters); provided, however, that the foregoing 
	  	  	  	  	provisions of this paragraph (a) shall not prohibit a claim for breach of this 
	  	  	  	  	Agreement; and 

30

	  	  	(b) 	  	such Litigation Party undertakes to promptly withdraw any Claim existing as of 
	  	  	  	  	the date of this Agreement relating to or arising from the Matters, including the 
	  	  	  	  	claims in the U.S. District Court for the Southern District of New York. 
	  
	14. 	  	OTHER COVENANTS AND UNDERTAKINGS 
	  
	14.1 	  	Indemnity of Directors 
	  
	14.1.1 	  	E.ON undertakes to hold harmless and indemnify the directors of the Viesgo 
	  	  	Companies and Endesa Europa appointed by the Investors against any and all 
	  	  	liabilities, costs (including legal fees) and damages that may arise as a consequence of 
	  	  	any action, suit, claim or litigation brought against them by E.ON and any of its 
	  	  	Affiliates under applicable Law relating to their offices as directors of such companies 
	  	  	prior to the Closing Date. 
	  
	14.1.2 	  	The undertakings of E.ON set out in section 14.1.1 above shall be irrevocable and shall 
	  	  	remain in full force and effect until such time when any claim against such directors is 
	  	  	barred by virtue of the expiration of the applicable statute of limitations. 
	  
	14.2 	  	Absence of Non Competition Covenants 
	  
	  	  	Anything in this Agreement or in any applicable law to the contrary notwithstanding, 
	  	  	the Parties agree that neither Party nor any of its Affiliates shall be bound, or deemed 
	  	  	to be bound, by any covenant, undertaking or other obligation not to compete with any 
	  	  	of the other Parties and their respective Affiliates, whether prior to or after the Closing. 
	  
	14.3 	  	Sharing of Liabilities 
	  
	14.3.1 	  	The Parties agree that any and all Liabilities arising from claims, actions, proceedings 
	  	  	made or asserted by third parties in connection with, or as a result of, the transactions 
	  	  	contemplated in articles 4 and 5, shall be borne in equal proportion by E.ON, on the 
	  	  	one part, and by the Investors, on the other. The Investors’ Liability will be borne in 
	  	  	proportion to their respective, direct and indirect, shareholdings in Endesa as a result 
	  	  	of the Investors Tender Offer. For the avoidance of doubt, any liability of any of the 
	  	  	Parties deriving from actions or communications taken or made by the Parties prior to 
	  	  	the date hereof is not covered by this section 14.3.1. 
	  
	14.3.2 	  	The Parties will coordinate their defences, will consider in good faith the appointment 
	  	  	of joint counsel representing all the Parties if deemed possible and convenient, will 
	  	  	only follow different defence strategies in case of clearly conflicting interests, and will 
	  	  	bear any common costs, including jointly appointed counsel, in the proportion set 
	  	  	forth in section 14.3.1. 

	31 

	15. 	  	CONFIDENTIALITY 
	  
	15.1 	  	Confidential Information 
	  
	  	  	The Parties hereby agree that, without the prior written consent of the other Parties, 
	  	  	for a period of 2 (two) years after the Closing Date, they shall keep, and shall cause 
	  	  	their Affiliates and their directors and employees to keep, secret and confidential all 
	  	  	information in their respective possession relating to Endesa, with the exception of 
	  	  	information that: (a) is, or subsequently becomes, available to the public, or is 
	  	  	otherwise disclosed to third parties, through no fault of the Parties, their Affiliates or 
	  	  	their respective directors or employees, (b) is independently developed by each party, 
	  	  	its Affiliates or their respective directors or employees, or (c) must be released or 
	  	  	disclosed pursuant to the provisions or requirements of any Law enacted or rule issued 
	  	  	by any Governmental Body or other regulatory or stock exchange authority having 
	  	  	jurisdiction on any of the latter. 
	  
	15.2 	  	Announcements 
	  
	  	  	The Parties shall coordinate the publicity, release and announcement concerning the 
	  	  	execution of this Agreement. 
	  
	16. 	  	MISCELLANEOUS PROVISIONS 
	  
	16.1 	  	Compliance by the Affiliates 
	  
	  	  	The Parties shall cause their respective (current and future) Affiliates to comply with 
	  	  	the provisions of this Agreement. 
	  
	16.2 	  	Survival 
	  
	  	  	Except as otherwise provided in other clauses of this Agreement and without prejudice 
	  	  	to the representations and warranties of the Parties contained in articles 10 and 11, the 
	  	  	provisions of article 12 and, in general, all other clauses of this Agreement providing 
	  	  	for any obligation of the Parties to be performed after the Closing Date shall remain in 
	  	  	full force and effect after the Closing, without the necessity for either of the Parties to 
	  	  	reiterate or otherwise confirm its commitment with respect thereto. 
	  
	16.3 	  	Changes in Writing 
	  
	  	  	This Agreement: 
	  
	  	  	(a) 	  	constitutes the entire agreement between the Parties with respect to the subject 
	  	  	  	  	matter hereof and supersedes all prior agreements (if any) relating to the same 
	  	  	  	  	subject matter hereof; 
	  
	  	  	(b) 	  	may not be waived, changed, modified or discharged orally, but only by an 
	  	  	  	  	agreement in writing signed by the Party against whom enforcement of any 
	  	  	  	  	such waiver, change, modification or discharge is sought. 

32

	16.4	 	Assignment; No Third Party Beneficiaries
	 
	16.4.1	 	This Agreement and all of the provisions hereof shall be binding upon and inure to the
	 	 	benefit of each of the Parties hereto and their respective successors, and such
	 	 	successors shall have the benefit of the indemnities set forth in article 12 hereof.
	 
	16.4.2	 	Neither Party may assign any of its rights interests or obligations hereunder without the
	 	 	prior written consent of the other Party and any attempt to assign this Agreement
	 	 	without such consent shall be void and of no effect.
	 
	16.4.3	 	Except as otherwise expressly provided for herein, nothing in this Agreement shall
	 	 	confer any rights upon any Person which is not a Party or a successor of any Party to
	 	 	this Agreement.
	 
	16.5	 	Notices
	 
	 	 	Any communication or notice required or permitted to be given under this Agreement
	 	 	shall be made in writing by fax or registered mail, return receipt requested, in English
	 	 	and shall be deemed to have been duly and validly given (i) in the case of notice sent by
	 	 	letter, upon execution of the return receipt by the recipients, and (ii) in the case of
	 	 	notice sent by telefax, upon receipt by the sender of a positive transmission report,
	 	 	addressed, in each case, as follows:
	 
	 	 	(a)	 	if to Enel, to it at:
	 
	 	 	 	 	Viale Regina Margherita, 137
	 	 	 	 	Rome (Italy)
	 	 	 	 	Attention: Mr. Fulvio Conti
	 	 	 	 	Fax: +39 0683053472
	 	 	 	 	and
					Attention: Mr. Andrea Brentan
	 	 	 	 	Fax: +39 0683059275
	 
	 	 	 	 	With copy to:
	 
	 	 	 	 	Bonelli Erede Pappalardo
	 	 	 	 	Via Barozzi, 1
	 	 	 	 	20122 Milan (Italy)
	 	 	 	 	Attention: Mr. Sergio Erede/Luca Picone
	 	 	 	 	Fax: +39 02 77113260
	 
	 	 	(b)	 	if to Acciona, to it at:
	 	 	 	 	Avenida de Europa, 18
	 	 	 	 	Alcobendas, Madrid (Spain)
	 	 	 	 	Attention: Mr. Juan Gallardo Cruces,
	 	 	 	 	Fax: +34 91 6632929
	 	 	 	 	and to
	 	 	 	 	Attention: Mr. Jorge Vega-Penichet López
	 	 	 	 	Fax: +34 91 6632884
	 
	 	 	 	 	With copy to:

33

	  	  	  	  	Uría Menéndez 
	  	  	  	  	Príncipe de Vergara, 187 
	  	  	  	  	Madrid (Spain) 
	  	  	  	  	Attention: Mr. Juan Miguel Goenechea 
	  	  	  	  	Fax: +34 91 5860471 
	  
	  	  	(c) 	  	if to E.ON, to it at: 
	  
	  	  	  	  	E.ON AG 
	  	  	  	  	E.ON-Platz, 1, D-40479 
	  	  	  	  	Düsseldorf, Germany 
	  	  	  	  	Attention: Mr. Karl-Heinz Feldmann 
	  	  	  	  	Fax: +49 2 11 - 45 79 - 5 01 
	  
	  	  	  	  	With copy to: 
	  
	  	  	  	  	Perez-Llorca 
	  	  	  	  	C/ Alcalá 61 
	  	  	  	  	28014 Madrid 
	  	  	  	  	Attention: Mr. D. Pedro Pérez-Llorca Zamora 
	  	  	  	  	Fax: +34 91 436 04 30 
	  
	  	  	or at such other address and/or telefax number as either Party may hereafter furnish to 
	  	  	the other by written notice, as herein provided. 
	  
	16.6 	  	Payments 
	  
	16.6.1 	  	Unless otherwise provided for in this Agreement, any payment due by any Party to the 
	  	  	other Party, according to the provisions of this Agreement, including the payment of 
	  	  	the Price, shall be made on the due date thereof, with value at such date, in immediately 
	  	  	available funds by wire transfer to the bank account designated by the payee at least 3 
	  	  	(three) Business Days prior to the date on which the payment is due (which transfer 
	  	  	shall be confirmed in writing to the payee by a primary credit institution reasonably 
	  	  	acceptable to the same) or by such other method as the payee may reasonably request 
	  	  	at least 3 (three) Business Days prior to the date on which the payment is due. 
	  
	16.6.2 	  	It is hereby expressly agreed that any indemnity payments made by a Party to the other 
	  	  	Party shall be made in Euro. If any cost or damage giving right to an indemnity 
	  	  	obligation arises in any currency other than Euro, in order to determine the amount 
	  	  	payable by a Party, the Parties agree that the relevant foreign currency amount shall be 
	  	  	converted into Euro by using the daily mean exchange rate published by the Central 
	  	  	Bank of Europe as at 15:30 CET time on the 1st (first) Business Day following the date 
	  	  	on which the Party suffers the relevant damage. 
	  
	16.7 	  	Delayed Payments and Interest 
	  
	  	  	Unless otherwise provided for in this Agreement, without prejudice to any other right 
	  	  	or remedy provided by applicable Law or otherwise, in the event of a delay (including 
	  	  	any delay due to causes of force majeure) in the payment of any amount to be paid 
	  	  	under this Agreement, interest shall be due, for the period of such delay, at a rate per 

34

	  	  	annum equal to 250 (two hundred and fifty) basis points over the Agreed Rate. 
	  
	16.8 	  	Right to Designate 
	  
	  	  	E.ON may designate one or more Person(s) to become a Party to this Agreement and 
	  	  	to purchase and pay for the Endesa Europa Shares, the Additional Assets and/or the 
	  	  	Viesgo Shares in accordance with the terms hereof, provided that such designation is 
	  	  	made in compliance with the following provisions: 
	  
	  	  	(a) 	  	each designation will be sufficiently made if notified in writing to the Investors 
	  	  	  	  	together with the written acceptance of the Person(s) so designated; 
	  
	  	  	(b) 	  	any designation pursuant hereto may be notified to the Investors (under 
	  	  	  	  	penalty of forfeiture) not later than 3 (three) Business Days prior to the Closing 
	  	  	  	  	Date; 
	  
	  	  	(c) 	  	each designee will be a Person wholly owned, directly or indirectly, by E.ON; 
	  	  	  	  	and 
	  
	  	  	(d) 	  	E.ON will be jointly and severally liable with any Person(s) designated pursuant 
	  	  	  	  	to this section 16.8 in respect of the punctual and exact performance by such 
	  	  	  	  	Person(s) of the duties and obligations arising under or in connection with this 
	  	  	  	  	Agreement. 
	  
	16.9 	  	Language 
	  
	  	  	Except for certain documents contained in the schedules hereto, which are in languages 
	  	  	other than English, this Agreement shall be executed in English, which shall be the 
	  	  	only language governing this Agreement. 
	  
	16.10 	  	Taxes and Other Expenses 
	  
	  	  	Except as otherwise expressly provided in other clauses of this Agreement, any cost, 
	  	  	tax, impost, duty or charge arising in connection with the transactions contemplated by 
	  	  	this Agreement, shall be borne and paid as follows: 
	  
	  	  	(a) 	  	any income, capital gain and other direct taxes due as a consequence of the sale 
	  	  	  	  	and purchase of the Viesgo Shares shall be borne and paid for by the relevant 
	  	  	  	  	seller; 
	  
	  	  	(b) 	  	any income, capital gain and other direct taxes due as a consequence of the sale 
	  	  	  	  	and purchase of the Endesa Europa Shares and the Additional Assets shall be 
	  	  	  	  	borne and paid for pursuant to the following proportions: E.ON 50% (fifty 
	  	  	  	  	percent) and Endesa 50% (fifty percent); 
	  
	  	  	(c) 	  	any stamp, transfer or similar indirect taxes or charges however levied by any 
	  	  	  	  	Governmental Body on the transfer of the Endesa Europa Shares, the 
	  	  	  	  	Additional Assets and the Viesgo Shares, other than value added tax which will 
	  	  	  	  	be paid as provided for in applicable Law, shall be borne pursuant to the 

35

	  	  	  	  	following proportions: E.ON (fifty percent) 50% and the transferor 50% (fifty percent); 
	  
	  	  	(d) 	  	the Investors shall use their best efforts to exercise their rights as shareholders in Endesa to cause 
	  	  	  	  	Endesa to bear a taxation of 18% (eighteen percent) on the capital gain referred 
	  	  	  	  	to in paragraph (b) above, while such taxation is available in consideration of 
	  	  	  	  	reinvestments by Endesa; 
	  
	  	  	(e) 	  	the Parties shall each pay for the own fees, expenses and disbursements 
	  	  	  	  	incurred by it in connection with the negotiation, preparation and 
	  	  	  	  	implementation of this Agreement, including (without limitation) any fees and 
	  	  	  	  	disbursements owing to their respective auditors, advisors and legal counsel; 
	  
	  	  	(f) 	  	the fees and costs of the Escrow Agent shall be borne on a 50/50 basis by Enel 
	  	  	  	  	and E.ON; 
	  
	  	  	(g) 	  	all other costs, expenses, duties or charges (including the notarial or
	  	  	  	  	authorized intermediary fees) shall be borne and paid for by E.ON.
	  
	16.11 	  	Severability 
	  
	  	  	If any of the provisions of this Agreement is or becomes invalid, illegal or 
	  	  	unenforceable under the laws of any jurisdiction, the validity, legality or enforceability 
	  	  	of the remaining provisions shall not in any way be affected or impaired. The Parties 
	  	  	shall nevertheless negotiate in good faith in order to agree the terms of mutually 
	  	  	satisfactory provisions, achieving as closely as possible the same commercial effect, to 
	  	  	be substituted for the provisions so found to be void or unenforceable. 
	  
	16.12 	  	Further Assurances 
	  
	16.12.1    Each Party to this Agreement covenants and agrees that it will, at the request and 
	  	  	expense of the requesting Party, execute and deliver such documents, including, 
	  	  	without limitation, all such additional conveyances, transfers, consents and other 
	  	  	assurances and do all such other acts and things as the other Party hereto, acting 
	  	  	reasonably, may from time to time request to be executed or done in order to evidence 
	  	  	better or perfect or effectuate any provision of this Agreement or of any agreement or 
	  	  	other document executed pursuant to this Agreement or any of the respective 
	  	  	obligations intended to be created hereby or thereby. 
	  
	16.12.2    The Parties agree to take all actions, and to do all things necessary, proper or advisable 
	  	  	to consummate and make effective, in the most expeditious practicable manner, the 
	  	  	transactions contemplated hereby, including the defending of any lawsuits or other 
	  	  	legal proceedings, whether judicial or administrative, challenging this Agreement or the 
	  	  	consummation of the transactions contemplated hereby, including seeking to have any 
	  	  	stay or temporary restraining order entered by any court or other competent authorities 
	  	  	vacated or reversed. 

36

	16.13 	  	Applicable Law 
	  
	  	  	This Agreement shall be governed by, and construed and interpreted in accordance 
	  	  	with, the Laws of Spain. 
	  
	17. 	  	ARBITRATION 
	  
	17.1 	  	Appointment of Arbitrators 
	  
	  	  	All disputes arising out of or in connection with this Agreement shall be finally settled 
	  	  	under the Rules of Arbitration of the International Chamber of Commerce by three 
	  	  	arbitrators appointed in accordance with such Rules. The place of arbitration shall be 
	  	  	Paris. The language to be used in the arbitral proceedings shall be English. 
	  
	17.2 	  	Arbitration Expenses 
	  
	  	  	The expenses of the arbitration proceedings referred to in section 17.1 shall be borne 
	  	  	by the Parties in accordance with the applicable determinations of the arbitration panel. 
	  
	17.3 	  	Election of Domicile 
	  
	  	  	The Parties hereby designate their respective addresses for the giving of notice, as set 
	  	  	forth in section 16.5, as their respective domiciles at which service of process may be 
	  	  	made in any arbitration, legal action or proceeding arising hereunder. The Parties may 
	  	  	change such address, except that each such address shall always be, as to Enel, within 
	  	  	the geographical area encompassed (as of the date of this Agreement) by the 
	  	  	boundaries of Italy, as to Acciona, within the geographical area encompassed (as of the 
	  	  	same date) by the boundaries of Spain and, as to E.ON, within the geographical area 
	  	  	encompassed (as of the same date) by the boundaries of Germany. 
	  
	17.4 	  	Interim Measures 
	  
	  	  	Anything in section 17.1 to the contrary notwithstanding, any of the Parties may bring 
	  	  	an action or otherwise commence proceedings for injunctive relief or any other 
	  	  	available temporary or interim measures under this Agreement in any court of 
	  	  	competent jurisdiction. 

	

37

IN WITNESS WHEREOF, the Parties hereto have executed or caused this Agreement to be executed by their respective officers or representatives duly authorized, all in the place and as at the date first above written.

	ENEL S.p.A.
	 
	 
	By : /s/ Fulvio Conti
	Name: Fulvio Conti
	Title : Chief Executive Officer
	 
	 
	 
	ACCIONA, S.A.
	 
	 
	By : /s/ José Manuel Entrecanales
	Name: José Manuel Entrecanales
	Title : Chairman
	 
	 
	 
	E.ON A.G.
	 
	 
	By : /s/ Wulf H. Bernotat
	Name: Wulf H. Bernotat
	Title : Chief Executive Officer

38exhibit1018.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.18

	
AMENDMENT TO THE AGREEMENT

CONCERNING SHARES IN ENDESA, S.A.

In Madrid, on April 2, 2007

APPEAR

	ON ONE HAND:	 	MR. JOSÉ MANUEL ENTRECANALES
	 	 	DOMECQ, of legal age, of Spanish nationality, with
	 	 	address for these purposes in Alcobendas (Madrid), at
	 	 	Parque Empresarial de la Moraleja, Avenida de
	 	 	Europa 18, holding Spanish Identity Card number
	 	 	5,381,412-X.
	 
	ON THE OTHER HAND:	 	MR. VALENTÍN MONTOYA MOYA, of legal
	 	 	age, of Spanish nationality, with address for these
	 	 	purposes in Alcobendas (Madrid), at Parque
	 	 	Empresarial de la Moraleja, Avenida de Europa 18,
	 	 	holding Spanish Identity Card number 50,539,787-R.
	 
	ON THE OTHER HAND:	 	MR. JORGE VEGA-PENICHET LÓPEZ, of legal
	 	 	age, of Spanish nationality, with address for these
	 	 	purposes in Alcobendas (Madrid), at Parque
	 	 	Empresarial de la Moraleja, Avenida de Europa 18,
	 	 	holding Spanish Identity Card number 02195235-T.
	 
	AND ON THE OTHER	 	MR. FULVIO CONTI, of legal age, of Italian
	HAND:	 	nationality, with professional address in Viale Regina
	 	 	Margherita 137, Rome (Italy), holding Italian tax
	 	 	identification number CNT FLV 47R28H501X.

	ACTING

Mr. José Manuel Entrecanales Domecq, in the name and on behalf of the Spanish company ACCIONA, S.A. (hereinafter, “ACCIONA”), with corporate address in Alcobendas (Madrid), Avenida de Europa 18, incorporated for an unlimited term as “Cubiertas y Tejas, S.A.” pursuant to a public deed granted before the Notary of Barcelona, Mr. Pedro Arnau Ribas, on June 17, 1916; the company changed its corporate name to “ACCIONA, S.A.” pursuant to a resolution passed by the General Shareholders Meeting on June 19, 1998, as entered on a public deed granted before the Notary of Madrid Mr. Gabriel Baleriola Lucas on July 6, 1998 with number 2,643 of his public records and registered with the Commercial Registry of Madrid at Volume

13,351, Book 0, Folio 9, Page Number M-216,384. ACCIONA’s tax identification number is A-08001851. 

Mr. José Manuel Entrecanales Domecq acts pursuant to his authority as Executive Chairman by virtue of a public deed recording corporate resolutions by ACCIONA granted before the Notary of Alcobendas (Madrid) Mr. Manuel Rodríguez Marín on May 5, 2004 with number 1,547 of his public records, and registered with the Commercial Registry of Madrid at Volume 13,351, Book 0, Folio 71, Page Number M-216,384, 50th entry. 

Mr. Valentín Montoya Moya and Mr. Jorge Vega-Penichet López, in the name and on behalf of the Spanish company FINANZAS DOS, S.A. (hereinafter, “FINANZAS DOS”), with corporate address in Madrid, Juan de Mena 8, incorporated for an unlimited term pursuant to a public deed granted before the Notary of Madrid Mr. Rafael Ruiz Gallardón on May 29, 1991 with number 1,959 of his public records and registered with the Commercial Registry of Madrid at Volume 1,529, Folio 37, Page Number M-28,200, 1st entry. FINANZAS DOS’s tax identification number is A-80062755. 

Mr. Valentín Montoya Moya and Mr. Jorge Vega-Penichet López act pursuant to their authority as joint proxyholders by virtue of a public deed recording corporate resolutions by FINANZAS DOS granted before the Notary of Alcobendas (Madrid) Mr. Manuel Rodríguez Marín on September 20, 2006 with number 2,932 of his public records, and registered with the Commercial Registry of Madrid at Volume 1,529, Folio 47, Page Number M-28,200, 11th entry. 

Mr. Fulvio Conti, in the name and on behalf of: 

	(i)      	the Italian entity ENEL S.p.A (hereinafter, “ENEL”), with registered office in Viale Regina Margherita 137, Rome (Italy), incorporated for an limited term finishing on December 31, 2100 by Italian Act 1643 dated December 6, 1962, and made into a company (società per azioni) pursuant to Decree Law n. 333 dated July 11, 1992 (thereafter Italian Act n. 359 dated August 8, 1992), registered with the Chamber of Commerce (Camera di Commercio Industria Artigianato Agricoltura) in Rome under n. 00811720580. ENEL’s Italian tax identification number is also 00811720580. 
	 
	 	Mr. Conti acts pursuant to his authority as joint and several special proxyholder under the resolutions passed by ENEL’s Board of Directors on March 22, 2007 and April 2, 2007, as evidenced by extracts from the Minutes for such meetings copied from the Minutes Book of the company and signed by the Company Secretary Mr. Claudio Sartorelli. 
	 
	(ii)      	the Italian entity ENEL ENERGY EUROPE, S.r.l. (hereinafter, “ENEL ENERGY EUROPE”), with registered office in Viale Regina Margherita 137, Rome (Italy), incorporated for a limited term finishing on December 31, 2100 as a limited-liability company (società a responsabilità limitata) pursuant to a public deed granted before the Notary of Rome (Italy) Ms. Matilde Atlante on March 22, 2006 with number 12,032 of her public records and registered with the Chamber of Commerce (Camera di Commercio Industria Artigianato 
	 

2

Agricoltura) in Rome under n. 08933321005. ENEL ENERGY EUROPE’s Italian tax identification number is also 08933321005. 

Mr. Conti acts pursuant to his authority as joint and several special proxyholder under the resolutions passed by ENEL’s Board of Directors on March 22, 2007 and April 2, 2007, as evidenced by extracts from the Minutes for such meetings copied from the Minutes Book of the company and signed by the Company Secretary Mr. Claudio Sartorelli. 

The parties above shall hereinafter be jointly referred to as the “Parties”. Likewise, any references to ACCIONA and ENEL shall be deemed made, where appropriate, to ACCIONA, S.A. and to the companies within its Group and to ENEL SpA and the companies within its Group, respectively, except where otherwise expressly noted. 

The Parties acknowledge each other’s authority and capacity to enter into this amendment and, for these purposes, state as follows: 

	RECITALS

First.- On March 26, 2007, the Parties entered into an agreement in respect of a joint management project for Endesa, S.A. (the “Agreement”), pursuant to which, among other things, the Parties agreed that the business currently performed by ENEL VIESGO (as defined in the Agreement) would be integrated into Endesa; 

Second.- On the date hereof ACCIONA, ENEL and E.ON have entered into an agreement (the “Settlement Agreement”) whereby the parties have resolved and settled their conflicts in connection with Endesa, S.A.; 

Third.- In the Settlement Agreement, ENEL has agreed to sell to E.ON its stake in ENEL VIESGO (as defined in the Agreement);

Fourth.- The Parties hereto desire to amend the Agreement to eliminate the provisions providing for the integration of the businesses currently performed by ENEL VIESGO into Endesa, so that they may comply with their obligations under the Settlement Agreement. 

	CLAUSES

FIRST.- AMENDMENT TO AGREEMENT 

The Parties hereby agree to amend the Agreement to eliminate Section Eight (and the related part of Recital Tenth) of the Agreement. 

SEGUNDO.- NOTICES TO ACCIONA AND FINANZAS DOS 

The Parties acknowledge that the address and fax number of ACCIONA and FINANZAS DOS indicated in Section Nineteenth of the Agreement shall be, effective as of today, the following: 

	“To ACCIONA y FINANZAS DOS:

3

-        Address: Avenida de Europa, 18, “Parque Empresarial de la Moraleja”, Alcobendas (Madrid). 

-        Fax: + 34 91 663 28 84 

-        Representative: D. José Manuel Entrecanales Domecq

-        With a copy to: D. Jorge Vega-Penichet López”

THIRD.- NO FURTHER AMENDMENT

Except as expressly modified by this amendment, the Agreement shall remain unmodified and in full force and effect and the Parties hereby ratify their respective obligations thereunder.

In witness whereof, the Parties have executed two copies of this agreement, to the same effect.

	ACCIONA, S.A.	 	ENEL, SpA
			 
	Authorized signatory	 	Authorized signatory
	 		 
			 
	/s/ José Manuel Entrecanales Domecq		/s/ Fulvio Conti
	Mr. José Manuel Entrecanales Domecq	 	Mr. Fulvio Conti
			 
			 
	 	 	ENEL ENERGY EUROPE, SrL
	 
	 	 	Authorized signatory
			 
			 
			/s/ Fulvio Conti
	 	 	Mr. Fulvio Conti
			 
			 
	FINANZAS DOS, S.A.	 	FINANZAS DOS, S.A.
			 
	Authorized signatory	 	Authorized signatory
	 		
	 		
	/s/ Valentín Montoya Moya		/s/ Jorge Vega-Penichet López
	Mr. Valentín Montoya Moya	 	Mr. Jorge Vega-Penichet López

4

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