Document:

Exhibit 4.10

 

EXECUTION COPY

 

This Amendment and
Acknowledgement (this “Amendment”) to the Purchase Agreement (the “Agreement”)
between Lagrummet December NR 919 AB, presently known as “Fund American
Holdings AB” (“Purchaser”), and ABB Holding AG, Zurich, a predecessor of ABB
Asea Brown Boveri Ltd. (“ABB”), is entered into as of this 14th day of April,
2004 between Purchaser and ABB. Defined terms used in this Amendment but not
otherwise defined in this Amendment shall have the meanings set forth in the
Agreement.

 

WHEREAS, the parties hereto desire to amend certain
provisions of the Agreement and enter into certain agreements in connection
with the Agreement; and

 

WHEREAS, Section 10.2.1 of the Agreement provides
that the Agreement may be amended by the parties thereto by an instrument in
writing signed on behalf of each of the parties thereto by their duly
authorized representatives.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual agreements set forth herein, the parties hereto, intending to be
legally bound, agree as follows:

 

1.             Unless
the context otherwise requires, references in the Agreement to “this shall be
deemed to be references to the Agreement as amended by this Amendment.

 

2.             Section 1.1
of the Agreement shall be amended by adding the following definition
immediately after the definition of “Belgian Tax Reassessments” and immediately
before the definition of “Branded Assets”:

 

“‘Belgian Tax Reassessments Claims’ shall have
the meaning set out in Section 9.6.4(b).”

 

3.             Section 3.4.5
of the Agreement shall be amended by deleting the first sentence of Section 3.4.5
of the Agreement in its entirety and inserting in lieu thereof the following:

 

“The Audited Closing
Financial Statements and the Audited Closing Net Equity Statement shall be
binding and conclusive upon ABB and Purchaser unless Purchaser shall have
notified ABB in writing by May 28, 2004 of any objections thereto (an “Objection
Notice”); provided, however, that no objections may be made
with respect to amounts in the income statements and statements of cash flow
contained in the Audited Closing Financial Statements other than to the extent
that such amounts affect amounts included in the Audited Closing Net Equity
Statement.”

 

4.             Section 9.1(e) of
the Agreement shall be amended by deleting Section 9.1(e) of the
Agreement in its entirety and inserting in lieu thereof the following:

 

“(e)         (i) the liabilities of Sirius
Belgium (other than liabilities incurred by Sirius Belgium after the Closing
Date as a result of actions taken after the Closing Date

 

 

by Purchaser or its
Affiliates (including any Acquired Company) and (A) not authorized in
writing by ABB or (B) which otherwise have not been reasonably taken by
Purchaser or its Affiliates (including any Acquired Company) to fulfill their
obligations under Section 9.6.4(b)) and (ii) any and all liabilities
and obligations arising from (A) any actions reasonably taken by Purchaser
or its Affiliates (including any Acquired Company) to fulfill their obligations
under Section 9.6.4(b), (B) any actions taken by Purchaser or its
Affiliates (including any Acquired Company) in connection with Section 9.6.4(b) which
have been authorized in writing by ABB or (C) any actions taken by ABB or
its Affiliates pursuant to Section 9.6.4(b);”

 

5.             Sections
9.6.4(b) and (c) of the Agreement shall be amended by deleting
Sections 9.6.4(b) and (c) of the Agreement in their entirety and
inserting in lieu thereof the following:

 

“(b)         Notwithstanding anything to the
contrary, the amount or economic benefit of (i) any refunds, credits or
offsets of Taxes (including any interest in respect thereof) attributable to or
resulting from Tax repayments claimed by Sirius Belgium with respect to
reassessments of Taxes with the Belgian tax authorities for any Pre-Measurement
Tax Period (the “Belgian Tax Reassessments”) and (ii) any claims
and rights of any Acquired Company with respect to any third parties
attributable to or resulting from the Belgian Tax Reassessments, including
indemnification claims, (a “Belgian Tax Reassessments Claim”) shall be
for the account of ABB.  ABB and
Purchaser agree that ABB shall (i) prepare and file all amended Tax
Returns with respect to the Belgian Tax Reassessments and shall control any Tax
Claim arising therefrom and (ii) be solely responsible for taking any and
all actions necessary or appropriate to recover any amounts payable to any
Acquired Company as a result of a Belgian Tax Reassessment Claim. Purchaser
shall cooperate, so long as such cooperation in Purchaser’s good faith and reasonable
judgment can be made without undue burden or expense or disruption to the
operations of the Business, with ABB’s reasonable requests for information held
by an Acquired Company, or assistance from an Acquired Company, in order to
enable ABB to take any of the actions described in the immediately preceding
sentence. Purchaser shall be under no obligation to utilize any refunds,
credits or offsets of Taxes attributable to or resulting from the liquidation
of Sirius Belgium. If Purchaser, in its sole discretion, determines that, after
first taking into account all other items of income, gain, loss, deduction,
credit or reserve (including safety reserve) that are available for the
relevant taxable period or periods, Sirius International or any affiliate or
successor thereto actually utilized any credits or offsets resulting from the
liquidation of Sirius Belgium and either (i) such utilization actually
reduces the amount of Taxes that Sirius International or any affiliate or
successor thereto otherwise would have been required to pay to a taxing
authority had it not utilized such credits or offsets or (ii) Sirius
International or any affiliate or successor thereto receives a refund or credit
against its Taxes from a taxing authority that it would not otherwise have
received had it not utilized such credits or offsets, then the amount of such
reduction of Taxes paid or the amount of such refund or credit shall be 80
percent

 

2

 

for the account of ABB
and 20 percent for the account of Purchaser, provided, however,
that ABB agrees to repay to Purchaser its 80 percent portion of the amount of
such reduction or the amount of such refund or credit (plus any penalties,
interest or other charges imposed by a taxing authority) in the event that (x)
it is determined by a taxing authority that Sirius International was not
entitled to such reduction of Taxes paid or (y) Sirius International or any
affiliate or successor thereto is required to repay such refund to a taxing
authority. ABB and Purchaser agree that (i) ABB will provide reasonable
instructions in the preparation and filing of all Tax Returns that relate to
the liquidation of Sirius Belgium and (ii) all expenses relating to (a) the
liquidation of Sirius Belgium, (b) the preparation of such Tax Returns and
(c) the recovery of any amounts payable to any Acquired Company as a
result of a Belgian Tax Reassessment Claim shall be borne solely by ABB. For
the avoidance of doubt. the amount or economic benefit of any refunds, credits
or offsets of Taxes attributable to or resulting from the Belgian Tax
Reassessments, the liquidation of Sirius Belgium and each Belgian Tax
Reassessments Claim shall not in any way increase Net Equity.

 

(c)           Each party shall forward, and shall
cause its Affiliates to forward, to the party entitled pursuant to this Section 9.6.4
to receive the amount or economic benefit of (i) a refund, credit or
offset to Tax the amount of such refund, or the economic benefit of such credit
or offset to Tax, within 10 days after such refund is received or after such
credit or offset is allowed or applied against another Tax liability, as the
case may be, and (ii) a Belgian Tax Reassessments Claim the amount of such
Belgian Tax Reassessments Claim, within 10 days after such amount is received.”

 

6.             Prior
to the Closing, ABB shall deliver to Purchaser the report attached as Exhibit A
hereto executed by the Business Auditors.

 

7.             ABB
and Purchaser hereby agree and acknowledge that (i) Purchaser has not
granted any written consents under Section 7.2.4 or 7.2.6 of the
Agreement, (ii) Purchaser has not waived any of its rights under the
Agreement, including, without limitation, any of its rights under Article 9
of the Agreement, with respect to breaches, if any, by ABB of any of its
representations, warranties, covenants and agreements contained in the
Agreement, whether asserted or unasserted or known or unknown by Purchaser as
of the date of this Amendment and in each case relating to or arising out of
the preparation, content or delivery of the Audited Closing Financial
Statements and the Audited Closing Net Equity Statement and (iii) Purchaser
shall not be deemed to have granted any such consent or made any such waiver
described in clauses (i) and (ii) by virtue of any act or failure to
act by Purchaser, including, without limitation, proceeding with the Closing,
other than, and only to the extent, as specifically set forth in a written
instrument delivered by Purchaser to ABB after the date of this Amendment; provided,
however, that this Section 7 of this Amendment shall not constitute
an amendment to the Agreement nor shall it in any way affect the rights of
Purchaser or any of its Affiliates (including any Acquired Company) arising out
of or relating to the Agreement.

 

3

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment effective as of the day and year first written above.

 

	
   

  	
  FUND AMERICAN HOLDINGS
  AB,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert L. Seelig

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert
  L. Seelig

  
	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ABB
  ASEA BROWN BOVERI LTD.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  E. Koefer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Erich
  Koefer

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  D. Schindleman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel
  Schindleman

  
	
   

  	
   

  	
  Title:QuickLinks
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Exhibit 4.16    
    

         

  

Mr. Fred
Kindle

Stadthausstr. 12

8400 Winterthur 

Dear
Mr. Kindle, 

This
is to confirm the terms and conditions of your employment with ABB Ltd, Zurich (the "Company"). You will start your employment with the Company as of September 1, 2004, as the
designated President and Chief Executive Officer of the ABB Group as well as member of the Executive Committee of the ABB Group. The Company will appoint you to President and Chief Executive Officer
and member of the Executive Committee of the ABB Group, effective January 1, 2005 (or earlier). 

	1.
	Base
Salary.    Your base salary will be specified for each year by the Board Committee and communicated to you in writing. The base salary is
normally revised every second year. For 2004 and 2005 it shall amount to CHF 1'300'000.—gross p.a. 

The
base salary includes a representation allowance of CHF 24'000.- p.a. The base salary and representation allowances are paid in 12 equal monthly installments. 

	2.
	Incentive
Plan.    In addition to the base salary, an incentive plan is part of your remuneration package. The incentive formula is predominantly
based on quantitative components, relating to the financial performance of the ABB Group. The maximum bonus opportunity amounts to 150% of the base salary mentioned under item 1 above. For the first
calendar year of service, i.e. the year 2005, the amount of CHF 1'000'000.- gross shall be guaranteed as a minimum. For the first four months of service in 2004 you will receive a fixed bonus of CHF
400'000. 

The
incentive plan is revised annually and the incentive plan parameters may be different from one year to another. The applicable incentive for a given year will be specified by the Board Committee
and communicated to you in writing. 

	3.
	Health
Insurance.    As regards health insurance, you are entitled to a private patient insurance (detailed information about this plan is
provided separately). The Company will pay the insurance premiums. Family members are not covered by this health insurance plan.

	4.
	Pension
and Related Benefits.    Your retirement pension, disability pension, widow's pension, child/orphan pension and related benefits are
subject to the Company's and its pension funds' applicable regulations or to such other separate agreement as you and the Company may have entered into or may in the future enter into.

	5.
	Vacation.    You
are entitled to a vacation of 30 working days per year. Non-used vacation days of the last 5 years are paid
out in cash at the end of employment or when entering retirement. Such payment will be calculated including the base salary valid at the date of discontinuation and the average incentive for the two
calendar years preceding the year during which termination occurs.

	6.
	Company
Car.    You are entitled to the use of a Company car according to the Company's Car Program as from time to time issued and applicable.
While you are not subject to a specific maximum purchase price limit, the proposed purchase price of your car will be recorded with the Board Committee.

	7.
	Management
Incentive Program.    In the event of the launch by the Company of a management option, share participation or similar program, you
will be eligible to participate in such program in accordance with the then applicable terms and to the extent to be determined by the Board Committee. 

 

The
Company will compensate you for the loss of outstanding share options due to resignation from your present employment at a total value of CHF 200'000.—. This amount will be paid to you
latest 30 days after having taken up your employment with the Company. 

	8.
	Termination
of Employment.    The employment is concluded for a fixed period of 40 months starting as from the effective date mentioned
above and it, therefore, expires automatically, without notice, on December 31, 2007 unless the parties hereto have agreed in writing before its expiration to extend the employment. 

In
the event of premature termination of the employment, the Company may elect to release you forthwith from fulfilling your employment obligations. In case that the premature termination of
employment is given by the Company, the total compensation for the remaining period of employment will consist of the base salary at the time of termination and the average incentive for the two
calendar years preceding the year during which termination occurs. In the event that the employment will be extended beyond December 31, 2007, the following rules for its termination will apply
thereafter: 

Each
party may terminate the present employment relationship with effect at the end of any calendar month by giving 12 months prior written notice. 

Under
termination of the employment relationship, the Company may elect to release you forthwith from fulfilling your employment obligations. Such release will, however, not affect salary payments
payable to you during the 12-months notice period. 

In
case your employment relationship would be terminated by the Company and if, after expiry of the 12 month notice period, you would not have taken up employment with a third party or
commenced an independent, regularly remunerated professional activity, either of which yielding an annual compensation of at least 70% of your last annual compensation with the Company, the Company
will continue to pay to you, for a period not exceeding 12 months, a monthly compensation in amounts equal to your total monthly salary during your employment relationship with the Company. 

Remuneration
for the 12 months notice period, as well as for the additional conditional period as described above, will, in addition to the base salary, include an incentive corresponding to
the average incentive (or pro-rata average incentive if applicable) for the two years preceding the year during which notice of termination is given. 

Retirement
in accordance with the applicable regulations or separate agreement (if any) will interrupt any notice period and constitute termination of your employment relationship with the Company
without further notice; accordingly, any salary, incentive or other benefits claims relating to the period after the date of such termination, will be fully substituted by the retirement benefits due
pursuant to the said regulations or agreement. 

	9.
	Non-Competition.    You
have agreed, and by counter-signing the present Letter-Agreement confirm your agreement, that you shall not,
during a period of 1 (one) year after the term of your employment relationship with the Company, operate on your own account, work for or otherwise be directly or indirectly engaged in a business
competing with the business activities of the ABB Group. In view of item 8 above, no separate compensation will be due by the Company as consideration for your observance of this
non-competition commitment.

	10.
	Employment
Regulations.    The general Employment Regulations, the Travel and Expense Regulations and Car Leasing Regulations, as from time to
time issued and applicable for the Company's employees are an integral part of your employment conditions and supplement as to matters not specifically addressed in this Letter-Agreement. 

2

 
	11.
	Title
and Membership in the Executive Committee; Other Assignments.    It is understood and agreed that the titles "President" and "Chief
Executive Officer" as well as your membership in the Group Executive Committee are essential parts of your employment relationship with the Company and may not be changed or terminated without notice
and without monetary or other compensation by the Company's Board of Directors. Within such employment relationship, the Board Committee may, however, assign to you areas of responsibility which
differ from those currently assigned, always provided that such other assignments do not constitute a substantial alteration in the scope or dignity of your work.

	12.
	Place
of Work.    For the fixed term of employment, i.e., until end of 2007, the primary place of work will be located in Switzerland. If the
Company decided to move their global headquarters outside of Switzerland and, thereby, the primary place of work would also move out of Switzerland, it is at your discretion to prematurely terminate
your employment with the Company. In this event, the Company would incur the same compensation consequences as specified for premature termination in item 8 above.

	13.
	Supplementary
Documents.    In addition you receive the following documents, whose modification is subject to special rules:

	•
	Regulations
of the ABB Pension Fund

	•
	Regulations
concerning the ABB Supplementary Insurance Plan

	•
	Regulations
of the "Todi Foundation"

	•
	Regulations
of the Health Insurance Aquilana

	•
	Regulations
on Delayed Sickness Benefits Insurance

	14.
	Applicable
Law and Jurisdiction.    This Letter-Agreement shall be subject to Swiss law and the parties hereby submit to the exclusive
jurisdiction of the Swiss courts. The venue shall be Zurich, Switzerland. 

Please
confirm your understanding and acceptance of the above terms and conditions by signing and returning to us a copy of this Letter-Agreement 

Zurich,
February 17, 2004 

	ABB Ltd
	

/s/  Hans-Ulrich Maerki      
 Hans-Ulrich Maerki

Chairman of the Nomination and

Compensation Committee	
 	

/s/  Gary Steel      
 Gary Steel

Group Executive Committee Member

Head of Human Resources
	

Accepted:	
 	

 
	

Date: February 21, 2004	
 	

/s/  F. Kinder      
 F. Kinder

3

QuickLinks

Exhibit 4.16

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