Document:

exv10w3

Exhibit 10.3

WAIVER AND AMENDMENT NO. 4 TO CREDIT AGREEMENT

     This WAIVER AND AMENDMENT NO. 4 (this “Amendment”), dated as of February 9, 2010, to the
Credit Agreement, dated as of October 30, 2007 (as heretofore amended, supplemented or otherwise
modified, the “Credit Agreement”), among FA SUB 3 LIMITED, a British Virgin Islands Business
Company (the “Borrower”), GLG PARTNERS, INC. (formerly known as Freedom Acquisition Holdings,
Inc.), a Delaware corporation (the “Parent”), FA SUB 1 LIMITED, a British Virgin Islands Business
Company (“Holdco I”), FA SUB 2 LIMITED, a British Virgin Islands Business Company (“Holdco II”, and
together with Holdco I, the “Holdcos”, and together with the Borrower and Parent, the “GLG
Parties”), the financial institutions and other entities from time to time party thereto
as lenders (the “Lenders”) and CITICORP USA, INC. as agent for the Lenders and as agent for the
Secured Parties under the Collateral Documents (in such capacity,  the “Administrative
Agent”).

W I T N E S S E T H:

     WHEREAS, the Parent wishes to establish a subsidiary in Hong Kong (the “Hong Kong Subsidiary”)
the Stock of which will be owned by GLG Partners Services Limited in its capacity as general
partner of GLG Partners Services LP (“GPS LP”) to engage in the business of investment advisory,
asset management and securities trading activities; and

     WHEREAS, the Parent may in the future establish one or more subsidiaries that will operate in
Switzerland, the United Arab Emirates, and the People’s Republic of China (the “Designated Future
Subsidiaries”, and, together with the Hong Kong Subsidiary, the “Designated New Subsidiaries”) to
engage in the business of investment advisory, asset management and/or securities trading
activities; and

     WHEREAS, the Lenders party to this Amendment (constituting the Requisite Lenders), the GLG
Parties and the Administrative Agent have agreed, subject to certain limitations and conditions set
forth below, to waive and amend certain provisions of the Credit Agreement in connection with the
establishment of the Designated New Subsidiaries, as more specifically set forth below;

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

     Section 1. Definitions; Rules of Construction

     Except as otherwise expressly provided herein, capitalized terms used herein shall have the
meanings set forth in the Credit Agreement, and the rules of construction set forth in Sections 1.2
through 1.5 of the Credit Agreement shall apply to this Amendment.

     Section 2. Waiver and Amendment

     Each Lender party to this Amendment (each, a “Lender Party”):

     (a) waives compliance with Section 8.9 of the Credit Agreement in connection with
any Investment by GPS LP in the Hong Kong Subsidiary;

 

 

     (b) waives compliance with Section 8.9 of the Credit Agreement in connection with
any Investment by the Group Member that owns the Stock of a Designated Future Subsidiary (each, a
“Parent Company”) in such Designated Future Subsidiary;

     (c) waives compliance with Section 8.3 of the Credit Agreement in connection with
equity Investments by GPS LP in the Hong Kong Subsidiary in an amount not to exceed U.S. $2,500,000
in the aggregate to comply with the paid-up capital and liquid capital requirements of the
Securities and Futures Commission of Hong Kong;

     (d) waives compliance with Section 8.3 of the Credit Agreement in connection with
equity Investments by each Parent Company in the Designated Future Subsidiary owned by each Parent
Company in an amount not to exceed U.S. $2,500,000 in the aggregate for each such Designated Future
Subsidiary to comply with any applicable capital requirements imposed on such Designated Future
Subsidiary by any Governmental Authority;

     (e) waives compliance with Sections 8.4 and 8.9 of the Credit Agreement in
connection with any Asset Sale by the Hong Kong Subsidiary to GPS LP of the Stock of the Hong Kong
Subsidiary; and

     (f) waives compliance with Sections 8.4 and 8.9 of the Credit Agreement in
connection with any Asset Sale by each Designated Future Subsidiary to its Parent Company of the
Stock of such Designated Future Subsidiary.

     Section 3. Additional Amendment

     (a) Section 1.1 (Defined Terms) of the Credit Agreement is hereby amended by inserting the
following definitions in its proper alphabetical order therein:

          “Amendment No. 4” means Amendment No. 4 to the Credit Agreement, dated as of February 9, 2010,
among the Administrative Agent, the Borrower, the Parent, the Holdcos, the Subsidiary Guarantors
and the Lenders party thereto.

          “Designated Future Subsidiary” means a Subsidiary of a Group Member operating in Switzerland,
the United Arab Emirates or the People’s Republic of China and designated by the Borrower as a
“Designated Future Subsidiary” pursuant to Section 8.20(d)(i) (Designated New Subsidiaries);
provided, that there shall be no more than one “Designated Future Subsidiary” in each of
Switzerland, the United Arab Emirates and the People’s Republic of China.

          “Designated New Subsidiary” means each Designated Future Subsidiary and the Hong Kong
Subsidiary.

          “Hong Kong Subsidiary” means GLG Partners Hong Kong Limited, a company incorporated under the
Companies Ordinance of Hong Kong whose company number is 24925.

          “Parent Company” means each Group Member that owns the Stock of a Designated New Subsidiary.

2

 

     (b) The definition of “Restricted Entity” set forth in Section 1.1. (Defined Terms) of the
Credit Agreement is hereby amended by deleting clause (b) through to the proviso thereof and
replacing it with the following:

     “(b) following the Closing Date, (i) any other Subsidiary of the Parent acquired or
established in connection with a Permitted Acquisition and that is or becomes regulated by
a Governmental Authority in the European Economic Area (a “Permitted Regulated Entity”),
(ii) any other Subsidiary of the Parent that is established for the purpose of becoming
regulated by a Governmental Authority that has jurisdiction over investment advisory, asset
management, securities trading or similar business activities operating in Hong Kong,
Switzerland, the United Arab Emirates or the People’s Republic of China (together with a
Permitted Regulated Entity, “Regulated Entities”) or (iii) any other Subsidiary of the
Parent that a Governmental Authority having jurisdiction over a Regulated Entity deems part
of a consolidated group for the purposes of the consolidated supervision on a quantitative
basis of one or more such Regulated Entities;”

     (c) Article VIII (Negative Covenants) of the Credit Agreement is hereby amended by inserting
the following as a new Section 8.20:

     Section 8.20 Designated New Subsidiaries

     Notwithstanding anything contained in this Agreement to the contrary:

     (a) The Fair Market Value of Investments made by Group Members in any Designated New
Subsidiary shall not at any time exceed U.S. $2,500,000 in the aggregate.

     (b) At no time shall any Parent Company cease to be a Loan Party and each Parent
Company shall comply at all times with the requirements of Section 7.11(c) (Additional
Collateral and Guaranties) with respect to the Stock and Stock Equivalents of each
Designated New Subsidiary.

     (c) In the event that either (i) the Hong Kong Subsidiary does not become regulated by
a Governmental Authority overseeing investment advisory, asset management and/or securities
trading activities on or before the date 210 days after the Hong Kong Subsidiary becomes a
Subsidiary of GLG Partners Services LP (or such later date as the Administrative Agent may
agree) or (ii) at any time following the date that is 210 days after the Hong Kong
Subsidiary becomes a Subsidiary of GLG Partners Services LP (or such later date as the
Administrative Agent may agree), it ceases to be regulated by a Governmental Authority
overseeing investment advisory, asset management and/or securities trading activities, the
Hong Kong Subsidiary shall cease to be deemed a Restricted Entity and shall be required to
fully comply with Section 7.11 (Additional Collateral and Guaranties).

     (d) Within 30 days (or such later time as may be agreed by the Administrative Agent)
of the formation of any Designated Future Subsidiary, the GLG Parties shall cause to be
delivered to the Administrative Agent: (i) a certificate of a Responsible Officer of the
Borrower designating such Designated Future Subsidiary a

3

 

“Designated Future Subsidiary”, naming the Governmental Authority by which such
Designated Future Subsidiary is, becomes, or is established for the purpose of becoming,
regulated and stating the aggregate amount of equity Investments that must be made in such
Designated Future Subsidiary by its Parent Company in order to comply with any applicable
capital requirements imposed on such Designated Future Subsidiary by any Governmental
Authority, (ii) a pledge agreement governed by the law of the jurisdiction in which such
Designated Future Subsidiary was formed, duly executed by the Parent Company of such
Designated Future Subsidiary, with respect to the Stock of such Designated Future
Subsidiary, in form and substance satisfactory to the Administrative Agent, together with
all certificates, instruments and other documents representing Pledged Stock and undated
stock powers (or instruments of transfer, as applicable), with respect to the same, (iii)
legal opinions, in form and substance satisfactory to the Administrative Agent, of counsel
to the Loan Parties in the jurisdiction of the Designated Future Subsidiary and its Parent
Company, in each case addressed to the Administrative Agent and the Lenders addressing such
matters as the Administrative Agent may reasonably request and (iv) such other information
that the Administrative Agent may request in its reasonable discretion.

     (e) If a Designated Future Subsidiary does not become regulated by a Governmental
Authority with jurisdiction over investment advisory, asset management, securities trading
or similar business activities operating in Switzerland, the United Arab Emirates or the
People’s Republic of China, as applicable, on or before the date that is 210 days after the
formation of such Designated Future Subsidiary, subject to extension by the Administrative
Agent, such Designated Future Subsidiary shall (i) be dissolved as promptly as possible or
(ii) cease to be deemed a Restricted Entity pursuant to the definition thereof (as amended)
and shall be required to fully comply with Section 7.11 (Additional Collateral and
Guaranties).

     Section 4. Conditions Precedent to Effectiveness

     This Amendment shall become effective when each of the following conditions precedent shall
have been satisfied or duly waived (the “Effective Date”):

     (a) This Amendment shall have been executed and delivered by the GLG Parties and the
Requisite Lenders.

     (b) The representations and warranties set forth in Section 5 hereof shall be true
and correct as of the Effective Date.

     (c) The GLG Parties shall have paid all Obligations due, after giving effect to this
Amendment, on or before the later of the date hereof and the Effective Date including, without
limitation, the fees set forth in Section 6 hereof and all costs and expenses of the Administrative
Agent in connection with the preparation, reproduction, execution and delivery of this Amendment
and all other Loan Documents entered into in connection herewith (including, without limitation,
the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect
thereto and with respect to all other Loan Documents) and all other costs, expenses and fees due
under any Loan Document.

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     (d) The Administrative Agent shall have received: (i) a pledge agreement, duly executed by GPS
LP, with respect to the Stock of the Hong Kong Subsidiary, in form and substance satisfactory to
the Administrative Agent, together with all certificates, instruments and other documents
representing Pledged Stock and undated stock powers (or instruments of transfer, as applicable),
with respect to the same and (ii) a favorable opinion, in form and substance satisfactory to the
Administrative Agent of counsel to the Loan Parties in the Cayman Islands and Hong Kong.

     Section 5. Representations and Warranties

     On and as of the Effective Date, after giving effect to this Amendment, the GLG Parties hereby
represent and warrant to the Administrative Agent and each Lender as follows:

     (a) this Amendment is within the power and authority of and has been duly
authorized, executed and delivered by the GLG Parties;

     (b) each of this Amendment and the Credit Agreement as amended hereby constitutes
the legal, valid and binding obligation of the GLG Parties, enforceable against the GLG Parties in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law);

     (c) each of the representations and warranties contained in Article IV
(Representations and Warranties) of the Credit Agreement, in the other Loan Documents or in any
certificate, document or financial or other statement furnished at any time under or in connection
therewith are true and correct in all material respects on and as of the Effective Date, in each
case as if made on and as of the Effective Date, except to the extent that such representations and
warranties specifically relate to a specific date, in which case such representations and
warranties shall be true and correct in all material respects as of such specific date; provided,
however, that references therein to the “Credit Agreement” shall be deemed to refer to the Credit
Agreement as amended and waived hereby;

     (d) no Default or Event of Default has occurred and is continuing or would result
therefrom;

     (e) no litigation has been commenced against any Loan Party or any of its
Subsidiaries seeking to restrain or enjoin (whether temporarily, preliminarily or permanently) the
performance of any action by any Loan Party required or contemplated by this Amendment, the Credit
Agreement or any other Loan Document, in each case as amended or waived hereby (if applicable); and

     (f) subject to the approval of a license application, the Hong Kong Subsidiary will
be regulated by the Securities and Futures Commission of Hong Kong and for this reason cannot be a
Loan Party.

5

 

     Section 6. Fees and Expenses

     (a) The GLG Parties agree to pay on demand in accordance with the terms of
Section 11.3 (Costs and Expenses) of the Credit Agreement all reasonable costs and expenses of the
Administrative Agent in connection with the preparation, execution and delivery of this Amendment
and all other Loan Documents entered into in connection herewith (including, without limitation,
the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect
thereto and with respect to all other Loan Documents).

     (b) The Borrower agrees to pay to the Administrative Agent, for the account of each Lender
consenting to this Amendment (other than the GLG Affiliate) from which the Administrative Agent
shall have received (by facsimile or otherwise) an executed copy of this Amendment by 12:00 p.m.
(New York time) on January 29, 2010 or such later date as the Administrative Agent and the Borrower
may agree (each, a “Consenting Lender”), a fee equal to 0.02% of such Consenting Lender’s
Commitment currently in effect.

     Section 7. Reference to the Effect on the Loan Documents

     (a) As of the Effective Date, each reference in the Credit Agreement to “this
Amendment,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the
other Loan Documents to the Credit Agreement (including, without limitation, by means of words like
“thereunder”, “thereof” and words of like import), shall mean and be a reference to the Credit
Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and
construed as a single instrument.

     (b) Except as expressly amended or waived hereby, all of the terms and provisions of
the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and
are hereby ratified and confirmed.

     (c) The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders,
Arranger or the Administrative Agent under any of the Loan Documents, or constitute an amendment of
any other provision of any of the Loan Documents for any purpose except as expressly set forth
herein.

     (d) This Amendment is a Loan Document.

     Section 8. Execution in Counterparts

     This Amendment may be executed in any number of counterparts and by different parties in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Signature pages may be detached
from multiple separate counterparts and attached to a single counterpart so that all signature
pages are attached to the same document. Delivery of an executed counterpart by telecopy or e-mail
shall be effective as delivery of a manually executed counterpart of this Amendment.

6

 

     Section 9. Consent of Guarantors

     Each Guarantor hereby consents to this Amendment and agrees that the terms hereof shall not
affect in any way its obligations and liabilities under the Loan Documents (as amended and
otherwise expressly modified hereby), all of which obligations and liabilities shall remain in full
force and effect and each of which is hereby reaffirmed (as amended and otherwise expressly
modified hereby).

     Section 10. Governing Law

     This Amendment shall be governed by and construed in accordance with the law of the State of
New York.

     Section 11. Section Titles

     The section titles contained in this Amendment are and shall be without substantive meaning or
content of any kind whatsoever and are not a part of the agreement between the parties hereto,
except when used to reference a section. Any reference to the number of a clause, sub-clause or
subsection of any Loan Document immediately followed by a reference in parenthesis to the title of
the section of such Loan Document containing such clause, sub-clause or subsection is a reference
to such clause, sub-clause or subsection and not to the entire section; provided, however, that, in
case of direct conflict between the reference to the title and the reference to the number of such
section, the reference to the title shall govern absent manifest error. If any reference to the
number of a section (but not to any clause, sub-clause or subsection thereof) of any Loan Document
is followed immediately by a reference in parenthesis to the title of a section of any Loan
Document, the title reference shall govern in case of direct conflict absent manifest error.

     Section 12. Notices

     All communications and notices hereunder shall be given as provided in the Credit Agreement
or, as the case may be, the Guaranty.

     Section 13. Severability

     The fact that any term or provision of this Amendment is held invalid, illegal or
unenforceable as to any person in any situation in any jurisdiction shall not affect the validity,
enforceability or legality of the remaining terms or provisions hereof or the validity,
enforceability or legality of such offending term or provision in any other situation or
jurisdiction or as applied to any person.

     Section 14. Successors

     The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the
parties hereto and their respective successors and assigns.

7

 

     Section 15. Waiver of Jury Trial

     EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH
RESPECT TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT.

[Remainder of page intentionally left blank; signature pages follow]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
authorized signatories as of the day and year first above written.

	 	 	 	 	 
	 	FA SUB 3 LIMITED, as Borrower

 	 
	 	By:  	/s/ Emmanuel Roman
 	 
	 	 	Name:  	Emmanuel Roman 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	Guarantors:

GLG PARTNERS, INC., as Parent

 	 
	 	By:  	/s/ Alejandro San Miguel
 	 
	 	 	Name:  	Alejandro San Miguel 	 
	 	 	Title:  	General Counsel & Corporate Secretary 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	FA SUB 1 LIMITED, as Holdco 1

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	FA SUB 2 LIMITED, as Holdco 2

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG FA SUB 4 LIMITED, as a Guarantor

 	 
	 	By:  	/s/ Victoria Parry
 	 
	 	 	Name:  	Victoria Parry 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	MOUNT GARNET LIMITED, as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	KNOX PINES LTD., as a Guarantor

 	 
	 	By:  	/s/ Emmanuel Roman
 	 
	 	 	Name:  	Emmanuel Roman 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS SERVICES LIMITED,

as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	BETAPOINT CORPORATION,

as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS SERVICES LIMITED,

acting as General Partner of

GLG PARTNERS SERVICES LP,

as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS INTERNATIONAL

(CAYMAN) LIMITED, as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS CORP., as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS SERVICES INTERNATIONAL

LTD., as a Guarantor

 	 
	 	By:  	/s/ Leslie J. Schreyer
 	 
	 	 	Name:  	Leslie J. Schreyer 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG HOLDINGS INC., as a Guarantor

 	 
	 	By:  	/s/ John C. Small
 	 
	 	 	Name:  	John C. Small 	 
	 	 	Title:  	President 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG INC., as a Guarantor

 	 
	 	By:  	/s/ John C. Small
 	 
	 	 	Name:  	John C. Small 	 
	 	 	Title:  	President 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS UK HOLDINGS LIMITED,

as a Guarantor

 	 
	 	By:  	/s/ Emmanuel Roman
 	 
	 	 	Name:  	Emmanuel Roman 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG PARTNERS UK GROUP LIMITED,

as a Guarantor

 	 
	 	By:  	/s/ Emmanuel Roman
 	 
	 	 	Name:  	Emmanuel Roman 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG FA SUB 5 S.À R.L, as a Guarantor

 	 
	 	By:  	/s/ Laurent Heilliger
 	 
	 	 	Name:  	Laurent Heilliger 	 
	 	 	Title:  	Manager 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	CITICORP USA, INC., as Administrative Agent

and Lender

 	 
	 	By:  	/s/ Alexander Duka
 	 
	 	 	Name:  	Alexander Duka 	 
	 	 	Title:  	Managing Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	CREDIT AGRICOLE CIB, as Lender

 	 
	 	By:  	/s/ Lee Browne
 	 
	 	 	Name:  	Lee Browne 	 
	 	 	Title:  	Head of Client Service Unit 	 
	 
	 	 	 
	 	By:  	                                                  /s/ Glen Barnes
 	 
	 	 	Name:  	Glen Barnes 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC.,

as Lender

 	 
	 	By:  	/s/ Ashim Rao
 	 
	 	 	Name:  	Ashim Rao 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	GLG FA SUB 5 S.À R.L, as Lender

 	 
	 	By:  	/s/ Laurent Heilliger
 	 
	 	 	Name:  	Laurent Heilliger 	 
	 	 	Title:  	Manager 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON

(formerly known as The Bank of New York),

as Lender

 	 
	 	By:  	/s/ David Aldrich
 	 
	 	 	Name:  	David Aldrich 	 
	 	 	Title:  	Managing Director 	 
	 

[SIGNATURE PAGE TO GLG WAIVER AND AMENDMENT #4]exv10w22

Exhibit 10.22

CONTRATO DE TRABAJO DE ALTA DIRECCIÓN

En Madrid, a 1 de Agosto de 2007.

REUNIDOS

DE UNA PARTE, D. G.G. Pique, en nombre y representación de la sociedad Energy Recovery Iberia, S.L
(en adelante la “Compañía”), con C1F no B84798347 y domicilio social en c/ Ribera del Loira, 46,
Madrid.

Y DE OTRA PARTE, D. Borja Sánchez Blanco Carvajal, mayor de edad, con D.N.I. no 5406047-N, y
domicilio en Paseo de los Parques, 26, Chalet 23, El Encinar de los Reyes, Alcobendas, 28109,
Madrid, actuando en su propio nombre y derecho (en adelante el
“Alto Ejecutivo”).

EXPONEN

1.- Que la Compañía está comenzando su negocio en España.

2.- Que la Compañía tiene interés en contratar los servicios de un alto directivo para que ejerza
las funciones de Vicepresidente y Director General, bajo una relación laboral especial de Alta
Dirección.

3.- Que, a su vez, el Alto Ejecutivo está interesado en realizar las funciones antes mencionadas
para la Compañía.

A tal fin y reuniendo las condiciones necesarias, la Compañía y el Alto Ejecutivo han convenido la
celebración del presente contrato, sujeto a las siguientes:

TOP EXECUTIVE EMPLOYMENT AGREEMENT

In Madrid on August 1, 2007

THE UNDERSIGNED

AS ONE
PARTY, Mr. G.G. Pique, in the name and on behalf of Energy Recovery Iberia, S.L.
(hereinafter, the “Company”) with Tax Identification Number B84798347 and domiciled at c/ Ribera
del Loira, 46, Madrid.

AND AS
THE OTHER PARTY, Mr. Borja Sánchez Blanco Carvajal of legal age, bearer of D.N.I. number
5406047-N, domiciled at Paseo de los Parques, 26, Chalet 23, El Encinar de los Reyes, Alcobendas,
28109, Madrid in his own name and right (hereinafter, the
“Top Executive”).

WHEREAS

1.- The Company is initiating its business in the Spanish market.

2.- The Company is willing to hire a Top Executive to perform the duties of a Vice President and
General Manager, under a Top Executive Labour Relationship.

3.- The Top Executive is willing to perform the above-mentioned duties for the
Company.

Whereas both parties meet the requirements for entering into this agreement, now therefore, the
parties hereto agree on the following:

 

 

CLAUSULAS

	1.- 	 	OBJETO/RESPONSABILIDADES/FUNCIONES
	 
	 	 	La relación laboral especial de alta dirección que en el presente contrato se regula, se basa de
manera especial en la recíproca confianza de las partes, las cuales acomodarán el ejercicio de sus
derechos y obligaciones a las exigencias de la buena fc,
comprometiéndose el Alto Ejecutivo a
cumplir con toda su dedicación y saber profesional las funciones que le encomiende la Compañía.
	 
	 	 	La Compañía contrata al Alto Ejecutivo, de acuerdo con las condiciones que se exponen a
continuación, aceptando el Alto Ejecutivo el puesto de Vicepresidente y Director General de la
Compañía.
	 
	 	 	El Alto Ejecutivo realizará sus funciones de acuerdo con los criterios e instrucciones emanadas del
Consejo de Administración de la Compañía.
	 
	 	 	El Alto Ejecutivo declara que no está sujeto a ningùn acuerdo de no competencia ni restricción
similar que le impida o dificulte la celebración del presente contrato.
	 
	2.- 	 	LUGAR DE PRESTACIÓN DE SERVICIOS
	 
	 	 	El desempeño de las funciones tendrá lugar en las instalaciones de la Compañía sitas en Madrid o en
cualquier otro lugar que la Compañía pueda designar al efecto, respetando siempre lo dispuesto en
la legislación vigente.
	 
	 	 	Como consecuencia del trabajo a desarrollar, la Compañía podrá exigir del Alto Ejecutivo la
realización de viajes

CLAUSES

	1.- 	 	PURPOSES / DUTIES
	 
	 	 	The special top executive relationship regulated by means of this agreement is specifically
based upon the mutual trust between both parties, who will follow the requirements of good
faith in the performance of their duties and rights. The Top Executive undertakes to fulfill
all the functions and tasks entrusted by the Company with dedication and professionalism.
	 
	 	 	The Company hires, on the terms set forth below, the Top Executive, who accepts the position
of Vice President and General Manager of the Company.
	 
	 	 	The Top Executive will perform his duties under the authority and following the instructions
given by the Company’s Board of Directors.
	 
	 	 	The Top Executive states in particular that he is not bound by any covenant not to compete or
any other similar restriction preventing him from entering into this contract.
	 
	2.- 	 	PLACE OF WORK
	 
	 	 	The services shall be rendered at the work sites of the Company located in Madrid or in any
other place that the Company may designate in accordance with applicable legislation.
	 
	 	 	As a result of the work to be carried out, the Company may request the Employee to travel,
whether in Spain or abroad, and the Top

 

 

	 	 	tanto dentro de España como en el extranjero, condición que el Alto Ejecutivo acepta expresamente
cumplir.
	 
	3.- 	 	DURACIÓN
	 
	 	 	El presente contrato de trabajo surtirá sus efectos a
partir del día 1 de Agosto de 2007, y se
pacta con carácter indefinido.
	 
	4.- 	 	JORNADA/HORARIO/VACACIONES
	 
	 	 	Dado su puesto de trabajo como Director General de la Compañía, la naturaleza de sus funciones y su
alto nivel de responsabilidades y remuneración, la retribución del Alto Ejecutivo no se basa en un
determinado número de horas de trabajo ni se vincula a referencias horarias.
	 
	 	 	Dentro de la flexibilidad convenida en cuanto a la jornada y el horario de trabajo, las vacaciones
anuales del Alto Ejecutivo serán de 30 días naturales, ajustándose en la medida de lo posible a las
necesidades de la Compañía, y fijándose en interés y conveniencia de la Compañía y el Alto
Ejecutivo. En cualquier caso, la Compañía queda facultada, en función de las necesidades del
servicio, para excluir o señalar ciertos periodos para el disfrute de las vacaciones.
	 
	 	 	Durante el primer año de vigencia de contrato de trabajo, y en el supuesto de que éste se extinga
con anterioridad al 31 de diciembre, el número de días de vacaciones será prorrateado sobre la
base del periodo de los servicios prestados en el año natural. El Alto Ejecutivo acepta
expresamente que de extinguirse el contrato de trabajo, la Compañía podrá compensar los días de
vacaciones no devengados y disfrutados con días de salario de su liquidación de habares.

	 	 	Executive expressly agrees to comply with these terms.
	 
	3.- 	 	DURATION
	 
	 	 	This agreement shall be effective as from August 1, 2007 and shall have an indefinite
duration.
	 
	4.- 	 	WORK SCHEDULE / HOLIDAYS
	 
	 	 	Due to the nature of his job position as General Manager of the Company, and to his high level
of responsibilities and remuneration, the Top Executive is not
compensated on the basis of any
set number or hours or hourly references.
	 
	 	 	Within the flexibility agreed upon with regard to the working hours thereof, the annual
holiday period shall be 30 calendar days, which shall conform as closely as possible to the
necessities of the Company, balancing the interests and convenience of the Company with those
of the Top Executive. In any event, the Company is empowered to exclude or state certain
holiday periods depending on the necessities of the service.
	 
	 	 	During the first year of employment, and in the event this employment contract is terminated
prior to December 31st, the number of days of vacation shall be prorated on the
basis of the actual period of services rendered in the natural year. The Top Executive
expressly accepts that, in case of termination of the contract, the Company may offset against
his liquidation payment one day of salary for each day of vacation taken in excess of his legal
entitlement.

 

 

	5.- 	 	RETRIBUCIÓN
	 
	 	 	El Alto Ejecutivo percibirá un salario fijo anual bruto
deDOS CIENTOS CINCUENTAITRES MIL EUROS
(253,000-€), cantidad que se entiende referida al periodo del
año natural, por lo que, si el Alto
Ejecutivo causase alta o baja en la Compañía en fecha
distinta al comienzo o terminación del año
natural, percibirá las cantidades efectivamente devengadas, proporcionalmente al tiempo trabajo en
el mencionado año.
	 
	 	 	En atención a la naturaleza del puesto desempeñado por el Alto Ejecutivo y el nivel de
responsabilidades atribuidas, el salario fijo bruto anual arriba mencionado se considera como un
pago global que cubre todo el tiempo de trabajo requerido por el Alto Ejecutivo para el desempeño
de sus funciones, con independencia de las horas de trabajo realmente realizadas.
	 
	 	 	La remuneración mencionada se abonará en 12 pagas, que incluirán la prorrata de las pagas
extraordinarias, aceptando expresamente el Alto Ejecutivo lo anterior al entender que el referido
cobro de su salario anual en 12 mensualidades es más beneficioso para él.
	 
	 	 	Adicionalmente, el Alto Ejecutivo podrá participar en el Plan de Incentivos de la Compañía vigente
en cada momento, devengado o no derecho a un bono en función de los términos y condiciones del
referido Plan. Durante el año 2007, el Alto Ejecutivo podrá devengar un bono de un porcentaje de
su salario fijo anual, sujeto a la discrecionalidad de la dirección de la Compañía, y previo
cumplimiento de los requisitos del plan de incentivos en vigor en el referido ejercicio y de los
objetivos actualmente en vigor, que se adjuntan como Anexo I.

	5.- 	 	REMUNERATION
	 
	 	 	The Top Executive shall receive an annual gross fixed salary of TWO HUNDRED FIFTY-THREE
THOUSAND Euro (253,000-€), which is understood to refer to the calendar year, such that, should
the Executive’s relationship commence or terminate on a date other than the beginning or end
of the calendar year, the Top Executive shall receive any amounts actually accrued,
proportional to the time worked in that year.
	 
	 	 	Considering the nature of the Top Executive’s employment and his level of responsibilities,
the gross annual fixed salary mentioned above is a global payment which covers all the working
time required by the Top Executive for the performance of his duties, irrespective of the
actual hours worked.
	 
	 	 	The afore-mentioned fixed salary shall be paid in 12 monthly installments which will include
the proportional part of the extra-payments. The Top Executive expressly agrees to being paid
in 12 monthly installments as he/she understands that this is more beneficial to him.
	 
	 	 	The Top Executive may also be entitled to receive by way of further remuneration a bonus
calculated in accordance with the Company’s Incentive Plan from time to time in force, always
in accordance with the terms and conditions set forth in such scheme. During year 2007, the Top
Executive will be eligible for a bonus of a percentage of his annual fixed salary, subject to
the management discretion, to the terms and conditions established in the incentive plan in
force for year 2007, and upon achieving the objectives currently in force, which are attached
as Annex 1.

 

 

	6.- 	 	OTROS BENEFICIOS
	 
	 	 	La Compañía correrá con el coste de un seguro
de vida a favor del Alto Ejecutivo cuya
cobertura alcance una anualidad de su salario fijo bruto con arreglo
a las condiciones de
la pó1iza de seguros de la aseguradora. Todos los beneficios y protecciones a favor del Alto
Ejecutivo seran calculados de la fecha de 1 diciembre 2005 como su cantrato original.
	 
	7.- 	 	GASTOS
	 
	 	 	La Compañía reembolsará al Alto Ejecutivo
todos los gastos razonables en que haya incurrido
durante el debido desempeño de sus funciones conforme al presente contrato. El referido
reembotso se hará efectivo previa presentación de la pertinente solicitud acompañada de los
recibos y justificantes oportunos, de conformidad con la politica existente en la Compañia a
estos efectos en cada momento.
	 
	8.- 	 	DEDUCCIONES LEGALES
	 
	 	 	De la remuneración del Alto Ejecutivo se deducirán las cantidades que por contribuciones a la
Seguridad Social, impuestos o cualquier otro tipo, establezcan las normas vigentes.
	 
	9.- 	 	SEGURIDAD E HIGIENE
	 
	 	 	El Alto Ejecutivo se compromete a cumplir y hacer cumplir todas las normas médicas y de
seguridad e higiene en el trabajo que legal o convencionalmente resulten de aplicación en cada
momento.

	6.- 	 	OTHER BENEFITS
	 
	 	 	The Company will cover the cost of life insurance in favor of the Top Executive covering up to
one time his annual fixed salary subject to the policy limitations by the carrier. All benefits
and protections for the Top Executive will be based on his initial
employment date of December
1, 2005.
	 
	7.- 	 	EXPENSES.
	 
	 	 	The Company will reimburse the Top Executive the reasonable expenses in which he could have
incurred as a result of the development of his duties under the
present contract. Reimbursement
will be made effective upon presentation of the corresponding application according to the
procedure applicable in the Company from time to time, together with the documents evidencing
the expenses to be reimbursed.
	 
	8.- 	 	LEGAL WITHHOLDINGS
	 
	 	 	The Company shall withhold from the Top Executive’s earnings any amounts established under the
laws and regulations in force as chargeable to the Top Executive, including Social Security
contributions, taxes, and any other deductions.
	 
	9.- 	 	HEALTH AND SAFETY REGULATIONS
	 
	 	 	The Top Executive agrees to comply and cause others to comply with all medical and health and
safety labour regulations, legally or conventionally applicable at any time.

 

 

	10.- 	 	PATENTES, MARCAS Y OTROS DERECHOS DE PROPIEDAD INTELECTUAL
	 
	 	 	Si en el desempeño de las funciones relacionadas con su puesto de trabajo, el Alto Ejecutivo
desarrollase invenciones, diseños industriales, obras de propiedad intelecual, topografias de
semiconductores o cualquier otro tipo de creaciones que generen derechos de propiedad
intelectual o industrial, (en adelante denominadas conjuntamente las Obras), el Alto Ejecutivo reconoce que las Obras han sido desarrolladas en el marco de una relación laboral, por lo que
pertenecen en exclusiva a la Compañia, sin que ello genere derecho económico alguno a su
favor, por considerarse que ha sido satisfecho, en virtud de la remuneración pactada en este
contrato.
	 
	 	 	El Alto Ejecutivo se compromete a colaborar con la
Compañía, o con quien ésta designe, en la
forma en que la Compañía estime pertinente, para proteger
los derechos de la Compañía sobre
las Obras, en todos los países del mundo. Los gastos en que se
incurra para la protección de
los derechos de propiedad industrial e intelectual serán de
cuenta de la Compañía. La
colaboración con la Compañía incluirá la
divulgación de toda la información y datos relacionados con las Obras, así como la
formalización de solicitudes, especificaciones, declaraciones, registros y cualquier otro
documento o acto que la Compañía considere necesario para poder solicitar, obtener y mantener
dichos derechos sobre las Obras y para que los mismos sean cedidos y transmitidos en exclusiva
y en su totalidad a favor de la Compañía, sus herederos, cesionarios o las personas que la
Compañía designe.

	10.- 	 	PATENTS, TRADEMARKS AND OTHER INTELLECTUAL PROPERTY RIGHT
	 
	 	 	Where in the rendering of the duties related to his job position, the Top Executive develops,
inventions, industrial designs, copyright works, mask work rights or any other kind of creation
from which intellectual property rights arise, (hereinafter the Works), the Top Executive
represents and acknowledges that the Works were made within the framework of an employment
contract, hence they belong exclusively to the Company. Likewise, the Top Executive represents and
acknowledges that he/she has no right to an additional remuneration for the making of such Works,
since such activity is compensated with the salary agreed.
	 
	 	 	The Top Executive agrees to assist the Company, or its designee, in every proper way to secure the
Company’s rights over the Works, at the Company’s expense, in any and all countries. The
collaboration with the Company shall include the disclosure to the Company of all pertinent
information and data with respect to the Works, the execution of all
applications, specifications,
oaths, recordation, and all other instruments which the Company will deem necessary in order to
apply for, obtain and maintain such rights and in order to assign and convey to the Company, its
successors, assignees and nominees the sole and exclusive rights, title and interest in and to such
Works.

 

 

	 	 	La obligación del Alto Ejecutivo de formalizar y firmar cualquier tipo de documento o acto
necesario para la protección de los derechos sobre las Obras,
pendurará aún después de extinguido
el presente contrato y hasta la fecha de expiración de la
vigencia de todos los derechos sobre las
Obras.
	 
	11.- 	 	DEBERES ÉTICOS FUNDAMENTALES
	 
	 	 	El Alto Ejecutivo se ajustará, en el cumplimiento de sus
cometidos y obligaciones, a los usos y
costumbres habituales de la Compañía y el sector, respetando las
normas de conducta de la Compañía,
cuyas previsiones se consideran integradas en sus obligaciones contractuales.
	 
	 	 	En cualquier caso, debido a su cargo, el Alto Ejecutivo
estará obligado a guardar estricta
confidencialidad acerca de las actividades de la Compañía, su gerencia, clientes, asesores, y
cualesquiera otras personas e instituciones que mantengan relaciones profesionales con la Compañía
y cuyo conocimiento provenga de su condición de empleado de la misma. Dicha obligación se mantendrá
en vigor tras la extinción del presente contrato, con la única excepción de aquella información que
haya llegado al dominio público a través de una divulgación autorizada.
	 
	 	 	Se estimará competencia desleal, la prestación de servicios laborales, civiles, o mercantiles para
cualquier otro empresario del sector, o para aquellas empresas cuyas
actividades pudieran en alguna
forma afectar negativamente a las propias de la Compañía.
	 
	 	 	El Alto Ejecutivo acepta expresamente que durante la vigencia
del presente contrato no prestará
servicio alguno que

	 	 	The Top Executive’s obligation to execute any such instrument or documents to secure the rights
over the Works, will continue after the termination of this Agreement and will remain valid until
the expiration of the rights over the Works in any country.
	 
	11.- 	 	FUNDAMENTAL ETHICAL DUTIES
	 
	 	 	In performing his tasks and obligations, the Top Executive shall adapt to the common uses and
customs of the Company and the sector, complying with the Company’s rules of conduct, which are
considered to form part of the Top Executive’s contractual obligations.
	 
	 	 	In any case, due to his position, the Top Executive shall be obliged to keep in strictest
confidence the Company’s activities, its management, customers, advisors and any persons and
institutions which maintain professional relations with the Company and which knowledge could come
from being employed by the Company. Said obligation will remain in force after the termination of
this contract, with the only exception of information that comes into the public domain other than
by way of unauthorised disclosure by the Top Executive.
	 
	 	 	The rendering of labour, civil or commercial services to any other employer of the sector or for
those companies whose activities could in any way negatively affect the Company’s business, shall
be considered to be unfair competition.
	 
	 	 	The Top Executive agrees not to enter into any other agreement with any other Company in
competition with the Company, nor to carry out any other

 

 

	 	 	pueda resultar concurrente con las actividades de la Compañía, salvo que obtenga autorización
expresa de la Compañía a estos efectos.
	 
	12.- 	 	DILIGENCIA
	 
	 	 	El Alto Ejecutivo realizará las funciones propias de su cometido en la forma establecida por la
Compañía, de acuerdo siempre con sus instrucciones y
comprometiéndose a prestar el máximo interés y
entrega en el desempeño de las mismas.
	 
	13.- 	 	USO DEL SISTEMA INFORMÁTICO
	 
	 	 	El Alto Ejecutivo usará el sistema informático únicamente para fines relacionados con la
actividad de la Compañía y su trabajo en la misma. Se
prohíbe expresamente el uso del sistema
informático para uso distinto de los mencionados.
	 
	 	 	El Alto Ejecutivo, con la firma del presente contrato, reconoce que, todos los archivos, informes,
correspondencia vía e-mail, sofware y, en general, cualesquiera otros datos o información de
cualquier tipo que hayan sido generados o se encuentren en el sistema informático, son propiedad de
la Compañia y podrán ser usados por la misma para cualquier
propósito dentro de los límites legalmente
permitidos. El Alto Ejecutivo autoriza expresamente a la Compañia para acceder a la información
referida.
	 
	14.- 	 	PROTECCIÓN DE DATOS
	 
	 	 	Como Alto Ejecutivo de la Compañia, determinada información relativa al Alto Ejecutivo podrá ser
enviada a las oficinas

	 	 	services for third parties if those services are in competition with the Company’s activities,
unless otherwise authorised in writing by the Company.
	 
	12.- 	 	DILIGENCE
	 
	 	 	The Top Executive shall render the services proper to his position in the manner established by the
Company, always in accordance with its instructions, and committing himself to offer his utmost
interest and dedication in carrying out the same.
	 
	13.-	 	USE OF THE MANAGEMENT INFORMATION SYSTEM (M.I.S.)
	 
	 	 	The Top Executive will restrict the use of the M.I.S. to approved business purposes. Any other use
is forbidden.
	 
	 	 	By signing this contract, the Top Executive acknowledges that all records, reports, correspondence
by e-mail, software and other data generated by or residing upon the
M.I.S. are property of the
Company and may be used by it for any purposes permitted under the law. The Top Executive expressly
authorises the Company to access to the referred information.
	 
	14.- 	 	CONSENT CLAUSE FOR PROCESSING, ASSIGNMENT AND CROSS-BORDER TRANSFER OF PERSONAL DATA
	 
	 	 	As a Top Executive of the Company, information concerning the Top Executive may be sent to the
corporate offices of the Company’s parent company

 

 

	 	 	centrales de la sociedad matriz de la Compañía, Energy Recovery Inc. (“ERI”) y/o a otras
tiliales de ERI dentro y fuera de la Unión Europea, incluyendo los Estados Unidos, algunos de los
cuales pueden no ofrecer un nivel de protección equivalente al que existe en la Unión Europea. La
lista completa de las Compañías que forman parte del grupo ERI
pueden encontrarse en la página web:
www.energyrecovery.com
www.energyrecovery.com
	 
	 	 	La información se conservará y procesarán para fines relacionados con la relación
empleador/empleado, incluyendo sin carácter limitativo: contabilidad y finanzas, administración de
beneficios (tales como planes de pensiones, acciones, planes de
opciones sobre acciones, y seguros
de vida, médico y de viajes), salario y revisiones salariales, mantenimiento de registros de baja
por enfermedad, maternidad y absentismo a los meros efectos del cumplimiento de obligaciones
laborates y de Seguridad Social, así como con el objeto de mejorar los sistemas de seguridad y
cumplimiento de obligaciones contractuales y legales (tales como retenciones de Impuesto sobre la
Renta de Personas Físicas y contribuciones a la Seguridad Social). Adicionalmente, la información
personal del Alto Ejecutivo será procesada para mantener al Alto
Ejecutivo informado en relación con
determinadas noticias del Grupo ERI así como con nuevos productos y
servicios prestados por ERI.
	 
	 	 	El Alto Ejecutivo autoriza a la Compañía a poner sus
datos personales a disposición de ERI (y de
sus contables, auditores, abogados y otros asesores externos, como por ejemplo entidades financieras
gestoras de planes de opciones sobre acciones, localizados en la
Unión Europea o en otros paises,
algunos de los cuales pueden no ofrecer un nivel de protección equivalente al que existe en la
Unión Europea) en la medida necesaria para

	 	 	Energy Recovery, Inc. (“ERI”) and/or other corporate subsidiaries of ERI located within and outside
the European Union, including the United States of America, which do not necessarily ensure an
equivalent protection of privacy with respect to personal data processing as the one which is
ensured in the European Union. The complete list of companies which form part of ERI can be seen
at: www.energyrecovery.com
	 
	 	 	The information is processed for business reasons including accounting, financial tracking,
benefits administration (such as pension, stocks, stock option plans
and medical, life and travel
insurance), maintaining sickness and absence records, exclusively for the mere accomplishment of
labor and Social Security obligations, head counting, for general management and administrative
purposes and to ensure compliance with its legal and contractual obligations such as income tax
withholdings and social security contributions. Furthermore, the Top Executive’s personal data
will be processed to keep the Top Executive informed about news within ERI and new ERI products
and services.
	 
	 	 	The Top Executive authorizes the Company to furnish ERI (and any agent of ERI administering ERI
benefits, stocks, stock option plans or providing record keeping services, which may be located in
the European Union or outside, including countries not offering an equivalent level of protection
to that applicable in the European Union) with such information and data as it shall request in
order to facilitate the grant of ERI stocks and stock options, to facilitate administration of
stock option plans, benefit plans, routine accounting, financial tracking, general management and
administrative record keeping purposes. This information includes the

 

 

	 	 	facilitar el otorgamiento al Alto Ejecutivo de acciones u opciones sobre acciones de ERI, para
facilitar la administración de los planes de opciones sobre acciones, planes de beneficios,
contabilidad rutinaria, preparación de cuentas, y para permitir el normal desarrollo de la
relación laboral (incluyendo el mantenimiento de registros administrativos). Los datos personales
incluyen, a meros efectos enunciativos, el nombre, dirección particular, fecha de nacimiento,
número de tarjeta de la seguridad social, dirección de su domicilio, nacionalidad, estado civil,
formación, currículo, historia dentro de la Compañía, puesto de trabajo, lugar de trabajo, áreas
de especialización, detalles de salario y beneficios, datos bancarios, evaluaciones de
rendimiento, revisiones salariales, dias de vacaciones e información relativa a la extinción de su
contrato.
	 
	 	 	Adicionalmente, el Alto Ejecutivo acepta que su nombre, la oficina en la que presta servicios e
información relativa a los servicios que él y sus colegas prestan para la Compañía podrán también
ser compartidos con ERI para su uso en publicaciones internas y
externas de ERI y campañías
promociónales.
	 
	 	 	Sin perjuicio de lo dispuesto anteriormente, los Datos
Personales de salud del Alto Ejecutivo
necesarios para el cumplimiento de obligaciones laborales y de Seguridad Social, no serán objeto
de cesiones ni transferencias internacionales.
	 
	 	 	Igualmente la Compañía podria procesar los datos personales de los familiares, dependientes y
conocidos del Alto Ejecutivo, para los siguientes fines: (i) aviso en situaciones de emergencia y
(ii) contratación de pólizas de seguros de vida, médicos y de viaje y planes de opciones sobre
acciones otorgados, en su caso, por ERI. Los Datos Personales de las personas designadas por el
Alto

	 	 	Top Executive’s name, address, birth date, social security number, home phone, nationality,
marital status, educational background, employment application, and history with the company, job
title, place of work, areas of expertise, details of salary and benefits, bank details,
performance appraisals, salary reviews, vacation days, information about termination.
	 
	 	 	In addition, the Top Executive agrees that his/her name, his office location or information
concerning the work he and his colleagues perform for the Company may also be shared with ERI for
use in internal and external ERI newsletters and promotional campaigns.
	 
	 	 	Without the prejudice to the foregoing, the Top Executive’s health related personal data, which
are necessary for the accomplishment of labor and Social Security obligations, may not be assigned
or transferred abroad.
	 
	 	 	Furthermore, the Top Executive notes that the Company will process personal data about his
dependants, relatives and friends for the following purposes: (i) for emergency contact and (ii)
medical, life and travel insurance contracts, and stock options plans granted, if any, by ERI. The
personal data of such persons designated by the Top Executive as his beneficiaries of the life
insurance and stock option plans that could be granted by ERI may be made available to the life
insurance companies and stock option brokers, which may be located in the European Union and
elsewhere, including countries

 

 

	 	 	Ejecutivo como beneficiarios de los seguros de vida y de los planes de opciones sobre
acciones concedidos por ERI podrán ser puestos a
disposición de compañias de seguros de vida y
entidades gestoras de planes de opciones sobre acciones que podrán estar localizados en la Unión
Europea o en otros paises, algunos de los cuales pueden no ofrecer un nivel de protección
equivalente al que existe en la Unión Europea, para contractarles en el supuesto de fallecimiento
del Alto Ejecutivo. Con la firma del presente documento el Alto Ejecutivo confirma que ha
notificado a estas personas que ha comunicado sus Dalos Personales a la Compañia y que ellos
otorgan su consentimiento para el tratamiento y transferencia (cuando sea precisa) de sus Datos
Personales para los citados propósitos.
	 
	 	 	El Alto Ejectivo acepta expresamente que esta
información será procesada, transmitida y comunicada,
como se explica en esta cláusula de consentimiento, tanto dentro como fuera de la Unión Europea,
incluyendo Estados Unidos. ERI adoptará a estos efectos las medidas de protección pertinentes de
conformidad con la legislación aplicable.
	 
	 	 	El Alto Ejecutivo tendrá derecho a revisar, cancelar o pedir la rectificación de sus datos
personales, en cualquier momento y de conformidad con la
legislación aplicable, mediante solicitud
escrita dirigida al Director/a de Recursos Humanos.
	 
	15.- 	 	EXCLUSIVIDAD
	 
	 	 	Mientras esté vigente el presente Contrato, el Alto
Ejecutivo no podrá en ningún momento (excepto
con el previo consentimiento escrito de la Compañia), ocuparse, implicarse o interesarse, ya sea
por cuenta propia o por cuenta ajena, directa o indirectamente, en
cualquier

	 	 	that may not offer an equivalent level of protection to that applicable in the European Union, for
contact purposes in case of death of the Top Executive. By signing this consent clause the Top
Executive confirms that those persons are aware that he has provided their data to the Company and
furthermore that they consent to the storing, transferring (where necessary) and use of their data
for the purposes for which the Top Executive provided such data.
	 
	 	 	The Top Executive agrees in an explicit way that this information will be processed, transmitted
and communicated, as explained in this consent clause, within and outside the European Union,
including towards the United States of America. Appropriate safeguard measures in accordance to the
applicable law will be taken by ERI.
	 
	 	 	The Top Executive is entitled to review, cancel and ask for the rectification of his personal data
as well as to object, at any time, in accordance with applicable data protection laws, without
charge, by written request in that respect ERI Human Resources Executive.
	 
	15.- 	 	EXCLUSIVITY
	 
	 	 	The Top Executive must not at any time (except with the prior written consent of the Company)
whilst employed by the Company, directly or indirectly, be engaged, concerned or interested in,
whether on his own behalf or on behalf of any person, firm or
company, any trade or business
(hereinafter, the “Other Concern”), by working for, advising or otherwise assisting the Other
Concern (whether as Top Executive or independent contractor or otherwise) or by

 

 

	 	 	negocio o sociedad (en adelante, la “Otra
Empresa”), ya sea trabajando para la misma, como asesor,
o de cualquier otro modo prestando asistencia a la Otra Empresa (ya sea como trabajador, prestador
de servicios o de cualquier otra forma), o ya sea promoviendo, financiando o invirtiendo en los
negocios o acciones/participaciones de la Otra Empresa.
	 
	16.- 	 	EXTINCIÓN DEL CONTRATO

La
presente cláusula 16 se ha pactado en el entendimiento de que la relación,
entre las partes es de alta dirección, sujeta al RD1382/85.
Si por la razón que fuera la relación existente de facto en el momento de la extinción del contrato
fuera otra(una relación mercantil o una relación laboral ordinaria), la extinción del contrato se
regularía por los términos y condiciones de la legislación aplicable (civil/mercantil o Estatuto de
los Trabajadores), quedando los términos de los apartdos 16.1 y 16.2 siguientes sin efecto alguno.

16.1 El
presente contrato podrá ser extinguido por el Alto Ejecutivo tal y como se establece a
continuación:

	(a)  	 	Sin alegar causa alguna, debiendo mediar preaviso escrito de al menos tres (3) meses. En este
caso, el Alto Ejecutivo no tendrá derecho a recibir indemnización alguna. Si el Alto Ejecutivo
incumpliera la totalidad o parte del periodo de preaviso, la
Compañía tendrá derecho a recibir del
Alto Ejecutivo una cantidad equivalente a los salarios del periodo incumplido.
	 
	(b)  	 	De conformidad con las causas establecidas en el articulo 10.3 del Real Decreto 1382/85. En
este caso el Alto Ejecutivo recibirá una indemnización equivalente a siete (7) dias del salario en
metálico por ano de servicio con el limite de seis (6) mensualidades.

	 	 	promoting, financing or investing in the business or shares of the Other Concern.
	 
	16.- 	 	TERMINATION

This
clause 16 has been agreed on the basis that the relationship between
the parties is a top
executive relationship, regulated by Royal Decree 1382/85. If for any reason the relationship
existing between the parties is the facto different (either a commercial or an ordinary employee
relationship) upon termination of the contract, then the termination of the contract shall be
regulated by the terms and conditions of applicable legislation (either commercial legislation or
the Spanish Labor Act), in which case clauses 16.1 and 16.2 below shall not be binding nor have any
effect whatsoever.

16.1. This agreement may be terminated by the Top Executive as follows:

	(a)  	 	Without stating any given cause, by providing three (3) months prior written notice. In this
case, the Top Executive will not be entitled to receive any severance
compensation. Should the
Executive fail to provide the required notice in whole or in part, the Company will be entitled to
receive from the Top Executive an amount equivalent to the salaries corresponding to the defaulted
period.
	 
	(b)  	 	Based on one of the causes set forth under section 10.3 of Royal Decree 1382/85. In this case,
the Top Executive shall receive severance compensation equivalent to seven (7) days of cash salary
per year of service, up to a maximum of six (6) months of salary.

 

 

16.2 El presente contrato podrá ser extinguido,
usando la fecha 1 Diciembre 2005 como dia de
contrato inicial con Energy Recovery, Inc, por
la Compañía tal y come se detaila a
continuación:

	(a)  	 	Sin alegar causa alguna, debiendo
mediar preaviso escrito de al menos
tres (3) meses. En este caso, el Alto
Ejecutivo tendrá derecho a recibir
indemnización equivalente a siete (7)
días del salario en metálico por año de
servicio, con el límite de seis (6)
mensualidades. Si la Compañía
incumpliera la totalidad o parte del
periodo de preaviso, el Alto Ejecutivo
tendrá derecho a recibir de la
Compañía una cantidad equivalente a
los salarios del periodo incumplido.
	 
	(b)  	 	La Compañía también podrá extinguir
el presente contrato a través del despido del Alto Ejecutivo, de conformidad con
el artículo 11.2 del Real Decreto 1382/85. En este caso no tendrá derecho a
indemnización alguna a menos que el despido sea declarado improcedente por
sentencia firme, en cuyo caso tendrá derecho a una
indemnización equivalente a veinte (20) dias de salario en metálico por año de servicio y hasta un máximo de
doce (12) mensualidades.

16.3 En el supuesto de que la extinción ocurra
por un Causa (“Termination Event”) a raíz de
un Cambio de Control (“Change of Control”)
según lo establecido en la Clausula 3.2(e) del
Contrato de Empleo para Ejecutivo suscrito
con efectos el 1 de julio de 2006, tendrá
derecho a percibir una indemnización total
equivalente al 100% de su salario fijo en
metálico en el momento de extinción. Esta
indemización sustituirá las cantidades
indicadas en las Clausulas 16.1 y 16.2, según el
caso. Dicho contrato se reconoce ser terminado
con efecto 1 de agosto de 2007 y se refiere
solamente con el propósito de definir “Change
of Control”.

16.2 This agreement may be terminated, based upon an initial employment date with Energy Recovery,
Inc of December l, 2005, by the Company as follows:

	(a)  	 	Without stating any given cause, by providing
three (3) months prior written notice. In this
case, the Top Executive will be entitled to the
severance compensation equivalent to
seven (7)
days of cash salary per year of service, up to a
maximum of six (6) months of salary. Should
the Company fail to provide the required notice
in whole or in part, the Top Executive will be
entitled to receive from the Company an
amount equivalent to the salaries corresponding
to the defaulted period.
	 
	(b)  	 	The Company may also terminate this
agreement by means of the Top Executive’s
dismissal, in accordance with section 11.2 of
Royal Decree 1382/85. In this case, no
severance compensation will be due unless the
dismissal is declared unfair by a final court
judgment, in which case he will be entitled to a
severance compensation equal to twenty (20)
days of cash salary per year of service, up to a
maximum of twelve (12) months of salary.

16.3 In the event termination occurs pursuant to a Termination Event after a Change of Control as
defined in Clause 3.2 (e) of the Executive Employment Agreement effective July 1, 2006, the Top
Executive will be entitled to a total gross severance compensation equal to 100% of his fixed cash
salary at the time of termination. This amount shall substitute the amounts indicated in Clause
16.1 and 16.2 above, as the case may be. Said Executive Employment
Agreement is acknowledged to be
cancelled effective August 1, 2007 and is referenced for definition of “Change in
Control” purposes only.

 

 

16.4 En el
momento de la extinción del contrato de trabajo, el Alto
Ejecutivo deberá devolver
inmediatamente a la Compañía todos los objetos pertenecientes a
la misma y/o a su matriz u otras
Compañías relacionadas con la Compañía, que
todavia mantenga en su poder, así como toda la
documentación correspondiente a asuntos de las mencionadas
compañías—concretamente hardware,
software, discos magnéticos, liaves, tarjetas de crédito, documentos, notas, impresos, borradores,
bocetos, muestras, así como copias, copias a carbón u otras copias. El Alto Ejecutivo no tendrá
derecho a retener estos objetos y documentos.

16.5
Asimismo, en el momento de la extinción del contrato de trabajo, el Alto Ejecutivo deberá
borrar de forma inmediata e irreversible, cualquier información relativa a la actividad de la
Compañía que tuviese almacenada en cualquier disco o
memoria magnética u óptica, así como todo
tipo de materiales que se encuentren bajo su posesión, custodia, cuidado o control, fuera de las
dependencias de la Compañía, y acreditará el cumplimiento de la referida obligación en caso de ser
requerido para ello por la Compañía.

El incumplimiento de las referidas obligaciones dará lugar a las responsabilidades legales
pertinentes.

	17. 	 	 NO COMPETENCIA DESPUÉS DE EXTINCIÓN

17.1 En base a la naturaleza de las funciones que
debe realizar y que son objeto del presente Contrato
y debido a las circunstancias especiales del sector
en el que está incluida la Compañía, ambas partes
acuerdan que el Alto Directivo no podrá prestar
servicios directa o indirectamente como empleado,
director, administrador, accionista, prestamista,
representante de ventas u otros a cualquier empresa
o negocio que compita directamente con la
Compañía en España en proveer servicios que sean
iguales o similares a los prestados por el Alto
Directivo bajo el presente Cantrato.

16.4 Upon termination of the employment agreement,
the Top Executive shall immediately return to the
Company in their entirety, all objects belonging to the
Company and/or its parent Company and/or other
enterprises related to the Company which are still in his
possession, as well as all documents concerning matters
of the aforementioned companies  —  specifically,
hardware, software, magnetic discs, keys, credit cards,
documents, printed matter, note, drafts, sketches,
samples — as well as all copies, carbon copies or other
copies. The Top Executive has no right to withhold such
objects and documents.

16.5 Additionally, upon said termination of the
employment agreement, the Top Executive shall
immediately irretrievably delete any information
relating to the business of the Company stored on any
magnetic or optical disc or memory and all matter
derived there from which is in his possession, custody,
care or control outside the premises of the Company
and shall produce such evidence of compliance with this
obligation as the Company may require.

Breach of these obligations upon termination of the employment agreement shall give rise to the
corresponding legal responsibilities.

17.-   NO COMPETE AFTER TERMINATION

17.1 Due to the nature of the duties of this Agreement and due to the special circumstances of the
Company in the market activity of the same, both parties agree that the Top Executive shall not
render services directly or indirectly as an employee, director, shareholder, lender, sales
representative or otherwise, to any company or business competing directly with the Company in
Spain in providing services which are the same as or similar to those provided by the Top
Executive under this Agreement.

 

 

17.2 La obligación de no competencia
post-contractual será aplicable durante el plazo de un año a contar desde la extinción del presente Cóntrato, cualquiera que sea la razón de
finalización del mismo, y estará limitada al territorio de la Unión Europea.

17.3 El
Alto Directivo, por cada mes que la obligación de no competencia sea efectiva, recibirá una
cantidad equivalente al 50% del salario fijo en metálico mensual bruto que viniera percibiendo al
momento de la extinción del Contrato y que será satisfecha en mensualidades mientras esté vigente
dicha obligación.

17.4 Si el Alto Directivo incumpliera las obligaciones establecidas en la presente cláusula, éste
deberá devolver a la Compañía la compensación abonada, además de las cantidades que se pudieran
derivar de los daños y perjuicios ocasionados, y que serán
establecidos por la jurisdicción
competente.

	18.-	 	OTROS ACUERDOS
	 
	 	 	El Alto Ejecutivo manifiesta expresamente que no existe
contrato ni acuerdo alguno que pudiera
impedir o dificultar su prestación de servicios a la Compañia a tiempo completo. La validez del
presente contrato se encuentra condicionada a la capacidad del Alto Ejecutivo para trabajar sin
infringir ningún pacto de no competencia o cualesquiera pactos o contratos similares.
	 
	19.-	 	 NULIDAD PARCIAL
	 
	 	 	En el supuesto de que, por cualquier razón, alguna o algunas de las cláusulas del presente contrato
resultasen inaplicables en el futuro, la invalidez repercutirá exclusivamente sobre la cláusula an
cuestión, siendo plenamente válido el resto del contrato.

17.2 The post contractual duty not to compete will be applicable for a period of one year as from
the date this Agreement is terminated, regardless of the reason for
the termination, and it will be limited to the territory of the European Union.

17.3 The Top Executive will, for each month that the non-competition is in effect, receive an
amount equal to fifty percent (50%) of the monthly gross fixed cash salary that the Top Executive
was receiving at the time the Agreement is terminated. Said amount will be paid in installments
during the period during which the non-competition is in effect.

17.4 If the Top Executive fails to comply with these provisions, he shall return any compensation
paid by the Company, as well as any amounts that could result from the damages caused, which shall
be established by the courts of jurisdiction.

	18.-	 	 OTHER AGREEMENTS
	 
	 	 	The Top Executive hereby declares that no contract or agreement currently exists that would prevent
him/her from or interfere with his/her rendering of services to the Company on a full time basis.
This contract is conditioned upon the Top Executive’s ability to perform his services without
infringing any no compete covenant or similar covenants and/or agreements.
	 
	19.-	 	 SEVERALITY
	 
	 	 	In the event that, for any reason, any one or more provisions of this agreement are found to be
unenforceable in the future, the remainder of this Agreement shall
remain fully valid and enforceable.

 

 

	20.-	 	 ÚNICO CONTRATO
	 
	 	 	El presente contrato sustituye a cualesquiera acuerdos anteriores, ya sean verbales o escritos, y constituye el único contrato
válido existente entre las partes. Para la validez de cualquier
modificación del presente contrato,
ésta deberá constar por escrito en el mismo, junto con las
firmas tanto del Alto Ejecutivo como de
la Compañía.
	 
	21.- 	 	 LEY Y JURISDICCION
	 
	 	 	El presente contrato se regirá por lo dispuesto en
él por las partes, en su defecto por el RD
1382/85, y en defecto de éste, por el Derecho Civil o Mercantil. El presente contrato puede
variarse en cualquier momento por mutuo acuerdo escrito de las partes.
	 
	 	 	Este contrato y, en particular, el salario y beneficios establecidos en el mismo, se basan en la
premisa básica de que ningún Convenio Colectivo resulta aplicable a la relación entre las partes
firmantes.
	 
	 	 	La jurisdicción española será la única
jurisdicción competente en relación con la ejecución,
interpretación y extinción  del presente contrato.

	 
	22.- 	 	 IDIOMA
	 
	 	 	Este contrato se ha firmado en inglés y en español. En el supuesto de que surja alguna discrepancia
entre ambas versiones, prevalecerá la versión en español.

	20.- 	 	 ENTIRE AGREEMENT
	 
	 	 	This agreement supersedes any prior agreements, whether oral or written, and constitutes the only
valid agreement existing between the parties. In order for any modification to this Agreement to be
valid, it must be made in writing in the same and must be signed by both the Top Executive and the
Company.
	 
	21.- 	 	 LAW AND JURISDICTION
	 
	 	 	This agreement will be regulated by its terms and conditions,
by RD 1382/85 and by Civil and Commercial Law. This agreement may be modified at any time by mutual written agreement of the
parties.
	 
	 	 	This agreement and, in particular, the salary and benefits included in the same, are based on the
understanding that no Collective Bargaining Agreement applies to the relationship between the
parties.
	 
	 	 	Spanish Jurisdiction shall be solely competent in relation with the execution, interpretation and
termination of this agreement.
	 
	22.- 	 	 LANGUAGE
	 
	 	 	This agreement has been signed in both English and Spanish. In the event any discrepancies should
arise between the two versions, the Spanish version shall prevail.

 

 

	 	 	 	 	 	 	 	 	 

	En cuyos términos ambas partes contratantes firman el presente contrato por triplicado a un solo
efecto en la ciudad y fecha arriba indicados.	 	 	 	IN WITNESS WHEREOF, the parties sign this Agreement in triplicate and to one effect in the
place and the date here-above mentioned.	 	 
	 	 	 	 	 	 	 
	LA COMPAÑÍA	 	 	 	THE COMPANY	 	 
	 	 	 	 	 	 	 
	            /s/ G.G. Pique	 	 	 	           /s/ G.G. Pique	 	 
	 
Fdo.    D. G.G. Pique
	 	 	 	By:	 	Mr.
G. G. Pique
	 	 
	 
	 	 	 	 	 	 	 	 
	EL ALTO EJECUTIVO	 	 	 	THE TOP EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	            /s/
Borja S. Blanco 
	 	 	 	 	 	/s/ Borja S. Blanco	 	 
	 

	 	 	 	 	 	 	 	 
	Fdo.:   D. Borja Sánchez Blanco Carvajal

	 	 	 	By:	 	Mr. Borja Sánchez Blanco Carvajal

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