Document:

Exhibit 10.1

Howard M. Ehrenberg (CA Bar No. 125527)
Daniel A. Lev (CA Bar No. 129622)
Varand Gourjian (CA Bar No. 205344)
SULMEYER, KUPETZ, BAUMANN & ROTHMAN
A Professional Corporation
300 South Grand Avenue, 14th Floor
Los Angeles, California 90071
Telephone: (213) 626-2311
Facsimile: (213) 629-4520

Attorneys for Timothy J. Yoo, Chapter 7 Trustee

                         UNITED STATES BANKRUPTCY COURT

              CENTRAL DISTRICT OF CALIFORNIA, LOS ANGELES DIVISION

In re                                        CASE NO. LA 00-42737-EC

THE ENTERTAINMENT INTERNET, INC.,            (Jointly Administered with
a Nevada corporation, and                    Case No. LA 00-44137-EC)
ONLY MULTIMEDIA NETWORK, INC.,
a California  corporation,
                                             Chapter 7
                  Debtors.
                                             ORDER RE MOTION TO APPROVE SALE OF
                                             PROPERTY OF THE ESTATE  PURSUANT TO
                                             11 U.S.C.ss.363

                                             DATE:     September 19, 2001
                                             TIME:     1:30 p.m.
                                             PLACE:    Courtroom 1639
                                                       255 East Temple Street
                                                       Los Angeles, CA 90012

-----------------------------------

                  On September 19, 2001, the Motion to Approve Sale of Property
of the Estate Pursuant to 11 U.S.C. Section 363 (the "Motion") filed by Timothy
J. Yoo, the duly appointed, qualified, and acting Chapter 7 Trustee (the
"Trustee") for the estate of the debtors The Entertainment Internet, Inc.
("EINI") and Only Multimedia Network, Inc. ("OMNI") (collectively, the
"Debtors"), came on for its regularly scheduled hearing before the Honorable

<PAGE>

Ellen Carroll, United States Bankruptcy Judge, presiding. The Trustee appeared
by and through Daniel A. Lev, Sulmeyer, Kupetz, Baumann & Rothman. Other
appearances as noted on the record.

                  Based on the Notice of Motion and Motion, the memorandum of
points and authorities and declarations in support thereof, the representations
and arguments of counsel, all judicially noticeable facts, and after finding
that no overbidders were present at the date and time scheduled for the Motion,
and after further finding that the proposed sale is fair as contemplated in
Section 3(a)(7) and/or Section 3(a)(10) of the Securities Act of 1933, and after
further finding that the sale is in the best interests of the estate, and for
good cause appearing therefore,

                  IT IS HEREBY ORDERED, ADJUDGED AND DECREED as follows:

                  1. The Motion is granted.

                  2. The Trustee is authorized to sell EINI's interest in the
"corporate shell" or the corporate power and existence of EINI, including its
authorized but unissued common capital stock (collectively, the "Corporate
Assets"), for the sum of $50,000.00, to Champion Equities, LLC.

                  3. The sale of the Corporate Assets shall be free and clear of
all public and private liens, interests, judgments, obligations, and
encumbrances, and such liens, interests, judgments, obligations, and
encumbrances, if any, shall attach to the sale proceeds in the same priority and
in the same effect as under applicable law.

<PAGE>

                  4. The Trustee is authorized to execute any and all documents
as are necessary to carry out the terms of this Order.

Dated: November 27, 2001
       -----------------                      s/ ELLEN CARROLL
                                              ------------------------------
                                              Honorable Ellen Carroll
                                              United States Bankruptcy Judge

<PAGE>

Howard M. Ehrenberg (CA Bar No. 125527)
Varand Gourjian (CA Bar No. 205344)
SULMEYER, KUPETZ, BAUMANN & ROTHMAN
A Professional Corporation
300 South Grand Avenue, 14th Floor
Los Angeles, California 90071
Telephone: (213) 626-2311
Facsimile: (213) 629-4520

Attorneys for Timothy J. Yoo, Chapter 7 Trustee

                         UNITED STATES BANKRUPTCY COURT

              CENTRAL DISTRICT OF CALIFORNIA, LOS ANGELES DIVISION

In re                                        CASE NO. LA 00-42737-EC

THE ENTERTAINMENT INTERNET, INC.,            (Jointly Administered with
a Nevada corporation, and                    Case No. LA 00-44137-EC)
ONLY MULTIMEDIA NETWORK, INC.,
a California  corporation,
                                             Chapter 7
                  Debtors.
                                             MOTION TO APPROVE SALE OF PROPERTY
                                             OF THE ESTATE PURSUANT TO 11
                                             U.S.C.ss.363; MEMORANDUM OF POINTS
                                             AND AUTHORITIES  AND DECLARATION OF
                                             TIMOTHY J. YOO IN SUPPORT THEREOF

                                             DATE:     September 19, 2001
                                             TIME:     1:30 p.m.
                                             PLACE:    Courtroom 1639
                                                       255 East Temple Street
                                                       Los Angeles, CA 90012

-----------------------------------

TO THE HONORABLE ELLEN CARROLL, UNITED STATES BANKRUPTCY JUDGE, THE OFFICE OF
THE UNITED STATES TRUSTEE, THE DEBTORS, DEBTORS' COUNSEL AND OTHER PARTIES IN
INTEREST:

                  Timothy J. Yoo, the duly appointed, qualified, and acting
Chapter 7 trustee (the "Trustee"), in the bankruptcy case of The Entertainment

<PAGE>

Internet, Inc. ("EINI") and Only Multimedia Network, Inc. ("OMNI")
(collectively, the "Debtors"), hereby moves the Court, pursuant to 11 U.S.C.
Section 363, for an order approving the sale of EINI's interest in the
"corporate shell" or the corporate power and existence of EINI, including its
authorized but unissued common capital stock (collectively, the "Corporate
Assets"), for the sum of $50,000.00 (the "Purchase Price"). The buyer of the
Corporate Assets is Champion Equities, LLC (the "Buyer").

                  The sale of the Corporate Assets is subject to the Buyer's
conditions that: (1) the Trustee shall authorize and implement a three
hundred-for-one (300-for-1) reverse-split of all EINI shares, (2) the Trustee
shall cancel all preferred shares of stock, (3) the Trustee shall cancel all
common and preferred share conversion rights of any kind, including warrants,
options and convertible debt, (4) the Trustee shall issue to the new management
of the company a total of two million five hundred thousand (2,500,000)
post-split shares, (5) the Trustee shall issue to the new investors of the
company a total of five million (5,000,000) post-split shares, (6) the Trustee
shall cause a liability opinion as to the status of EINI to be delivered to the
Buyer, (7) the Trustee shall cause to be delivered to the Buyer a Certificate of
Good Standing of EINI, (8) the Court shall cause the sale to be free and clear
of all public and private liens, interests, judgments, obligations, and
encumbrances, (9) the Trustee shall make attempts to cause to be delivered to
Buyer all corporate books and records of EINI to Buyer upon closing, and (10)
the Buyer be authorized to amend the Articles of Incorporation of EINI in
accordance with the terms of this Court's order on this Motion.

<PAGE>

                  In addition to the Buyer's conditions, the Trustee requests
that the Court rule on the fairness of this sale as contemplated in Section
3(a)(7) and/or Section 3(a)(10) of the Securities Act of 1933, and also requests
that the order entered by the Court approving the sale state that the
transaction is fair and otherwise in the best interests of the Debtor and its
creditors.
                  The Debtor has no ownership interest in the Buyer. The Buyer
agrees to purchase the estate's interest in the Corporate Assets pursuant to the
terms set forth in the Letter Offer and Addendum thereto (the "Offer") attached
hereto and incorporated herein by this reference as Exhibit "1." The sale of the
Corporate Assets shall be free and clear of all liens, claims, and encumbrances
that might have been in existence as of the commencement of this bankruptcy
case.
                  The Trustee believes that the sale is in the best interests of
the estate for the following reasons:

                  1.     The Purchase Price maximizes the value of the estate's
                         interest in the Corporate Assets to the estate.

                  2.     The terms of the sale with the Buyer have been
                         negotiated at arms-length and the consideration for
                         purchase of the Corporate Assets is fair and
                         reasonable, and represents the fair market value for
                         the Corporate Assets.

                  3.     The Trustee has satisfied all procedural requisites
                         of notice of the Motion to Approve Sale of Property
                         of the Estate (the "Motion") to obtain Court approval
                         of this sale.

<PAGE>

                  In order to maximize the greatest value for this estate and
its creditors, at the hearing on this Motion, parties offering to purchase the
estate's interest in the Corporate Assets on substantially the same or better
terms as those set forth in the Offer shall have an opportunity to overbid for
the purchase of the Corporate Assets. Any initial overbid shall include a
"break-up" fee of $15,000.00 in addition to a $5,000.00 overbid amount. Thus,
the minimum initial overbid shall be in the amount of $70,000.00. All subsequent
overbids shall be in increments of $5,000.00. Any party that wishes to overbid
must bring to the hearing a cashier's check or money order made payable to
"Timothy J. Yoo, Chapter 7 Trustee" in the amount of $70,000.00.

                  In the event of additional bids in excess of $70,000.00, the
bidders must provide the Trustee with adequate proof of financial ability to
complete the transaction and a stipulation that the overbidder shall be bound by
the same terms as the Buyer. Should the overbidder be successful, the overbidder
must pay to the Trustee, at the hearing or immediately thereafter, the total
amount of the overbid in the form of a cashier's check or money order. The Buyer
shall have the right to participate in any overbids.

                  In the event of an overbid proceeding, and the Buyer
successfully overbids any overbidder, the terms of payment under the Offer are
not superseded. The Buyer shall pay to the Trustee, at the hearing or
immediately thereafter, the total amount overbid in the form of a cashier's
check or money order.

                  The motion is based upon this Motion, the concurrently filed
Notice of Motion, the attached Memorandum of Points and Authorities, the
Declaration of Timothy J. Yoo, the documents and pleadings on file herein, and

<PAGE>

upon such other evidence as may properly be presented to the Court at the
hearing.

DATED: August 6, 2001                       SULMEYER, KUPETZ, BAUMANN & ROTHMAN
                                            A Professional Corporation

                                            By:  s/ VARAND GOURJIAN
                                               ---------------------------------
                                               Varand Gourjian
                                               Attorneys for Timothy J. Yoo,
                                               Chapter 7 Trustee

<PAGE>

                      MEMORANDUM OF POINTS AND AUTHORITIES
                      ------------------------------------
                                       I.
                                       --
                                  INTRODUCTION
                                  ------------

                  Timothy J. Yoo, the duly appointed, qualified, and acting
Chapter 7 trustee (the "Trustee") in the jointly administered bankruptcy cases
of The Entertainment Internet, Inc. ("EINI") and Only Multimedia Network, Inc.
("OMNI") (the "Debtors"), seeks Court approval of the sale of the estate's
interest in the "corporate shell" or the corporate power and existence of EINI,
including its authorized but unissued common capital stock (collectively, the
"Corporate Assets"), for the sum of $50,000.00 (the "Purchase Price") subject to
certain conditions set forth below. The Trustee is confident that each of the
factors for establishing a sound business justification for the sale of the
Corporate Assets have been satisfied and the sale, therefore, should be
approved.

                                       II.
                                       ---
                        FACTUAL AND PROCEDURAL BACKGROUND
                        ---------------------------------

                  EINI filed a voluntary petition under Chapter 11 of Title 11
of the United States Code on November 22, 2000. OMNI filed a voluntary petition
under Chapter 11 of Title 11 of the United States Code on December 8, 2000. On
February 13, 2001 this Court entered an Order granting the motion for joint
administration of the estates of EINI and OMNI. Both cases were subsequently
converted to cases under Chapter 7. Pursuant to a notice of appointment, the
Trustee became the duly appointed, qualified, and acting Chapter 7 Trustee in
these jointly administered cases and continues to act in this capacity.

<PAGE>

                  EINI owns 100% of the stock of OMNI. As a result, the Debtors
are "affiliates" within the meaning of 11 U.S.C. ss.101(2). The Debtors are
engaged in the business of developing and operating a website known as
Castnet.com ("Castnet"). Castnet is a working actors' database designed for
those professionals who are pursuing on-camera work in film, TV and commercials,
as well as live theatre and other performance areas. Through its Castnet
website, the Debtors enable members of the entertainment industry, including
actors, directors and talent agents, to come together in an electronic community
which allows virtually instant response to communication and searches for
information.

                  On July 12, 2001, the managing member of the Buyer contacted
the Trustee, and made an offer to purchase the Corporate Assets of the Debtor
for the amount of $50,000.00 subject to certain terms and conditions. The
Trustee, by and through his proposed counsel, made a counteroffer to the terms
and conditions of the Buyer's offer. After further discussions, the Buyer agreed
to the terms and conditions of the Trustee's counteroffer and, as such, the
Buyer delivered a down-payment of $50,000.00 to the Trustee which is currently
being held in the Trustee's account pending final Court approval of the sale.

                  A. The Estate's Interest in the Corporate Assets.
                     ---------------------------------------------

                  The estate's interest to be sold consists of the "corporate
shell" or the corporate power and existence of EINI, including its authorized
but unissued common capital stock. The Buyer has offered to pay the Trustee the
sum of $50,000.00 to purchase the Corporate Assets.

<PAGE>

                  The Trustee has determined, in his best business judgment,
that the proposed purchase price and terms are fair and reasonable. The Trustee
believes that he will not receive a better offer on the estate's interest in the
Corporate Assets other than the offer that is the subject of this Motion. B. The
Terms of the Sale.

                  The terms of the sale are more fully set forth in the Offer
attached hereto as Exhibit "1." The following is a summary of the terms of the
sale:

                  1. The Change in Corporate Structure of EINI.
                     -----------------------------------------

                  The sale of the Corporate Assets is subject to the Buyer's
conditions that: (1) the Trustee shall authorize and implement a three
hundred-for-one (300-for-1) reverse-split of all EINI shares, (2) the Trustee
shall cancel all preferred shares of stock, (3) the Trustee shall cancel all
common and preferred share conversion rights of any kind, including warrants,
options and convertible debt, (4) the Trustee shall issue to the new management
of the company a total of two million five hundred thousand (2,500,000)
post-split shares, (5) the Trustee shall issue to the new investors of the
company a total of five million (5,000,000) post-split shares, (6) the Trustee
shall cause a liability opinion as to the status of EINI to be delivered to the
Buyer (7) the Trustee shall cause to be delivered to the Buyer a Certificate of
Good Standing of EINI (8) the Court shall cause the sale to be free and clear of
all public and private liens, interests, judgments, obligations, and
encumbrances, (9) the Trustee shall make attempts to cause to be delivered to
Buyer all corporate books and records of EINI to Buyer upon closing, and (10)
the Buyer be authorized to amend the Articles of Incorporation of EINI in
accordance with the terms of this Court's order on this Motion.

<PAGE>

                  In addition to the Buyer's conditions, the Trustee requests
that the Court rule on the fairness of this sale as contemplated in Section
3(a)(7) and/or Section 3(a)(10) of the Securities Act of 1933, and also requests
that the order entered by the Court approving the sale state that the
transaction is fair and otherwise in the best interests of the Debtor and its
creditors.

                  2. The Purchase Price and Overbid Procedure.
                     ----------------------------------------

                  As indicated earlier, the estate's interest in the Corporate
Assets is to be purchased for the sum of $50,000.00. A deposit of $5,000.00 has
already been paid to the Trustee and is currently on deposit in the Trustee's
account. Should the Court approve the terms of this sale and there be no
overbids, Buyer will pay to the Trustee, at the hearing or immediately
thereafter, the remaining $45,000.00.

                  In the event of any successful overbid of the estate's
interest in the Corporate Assets, the Trustee must receive a non-refundable
payment of $70,000.00 by cashier's check or money order at the hearing. In the
event that the Buyer successfully overbids any overbidder, the Buyer shall pay
to the Trustee, at the hearing or immediately thereafter, the total amount of
the overbid in the form of a cashier's check or money order.

                  3. Other Terms.
                     ------------

                  Under the terms of the Agreement, the deposit of $5,000.00
previously paid to the Trustee shall remain in the Trustee's account pending
consummation of the sale. In the event that the Trustee is unable to obtain and

<PAGE>

deliver the shares of stock to the Buyer or deliver the Corporate Assets free
and clear of all liens, claims or encumbrances to the Buyer, the Agreement shall
automatically be null and void and the $5,000.00 deposit shall be immediately
returned to the Buyer.

                  Further, pursuant to the Agreement, the estate's interest in
the Corporate Assets shall be sold free and clear of all encumbrances, security
interests and liens in existence as of the Petition Date. Finally, the Corporate
Assets shall be sold "AS IS" and "WHERE IS" and without any warranties as to
condition, fitness for use, and marketability except for the promises which
might be reasonably construed as a warranty (i.e., the promise that the
Corporate Assets will be delivered to Buyer free and clear of liens, claims, or
encumbrances or that the shares to be issued will be non-restricted).

                                      III.
                                      ----
                TERMS OF THE SALE ARE WITHIN THE TRUSTEE'S SOUND
                ------------------------------------------------
                    EXERCISE OF REASONABLE BUSINESS JUDGMENT
                    ----------------------------------------

                  A.   Section 363(b)(1) Permits the Sale of Property of the
                       -----------------------------------------------------
                       Debtor Outside the Ordinary Course of Business.
                       -----------------------------------------------

                  Section 363(b)(1) permits a trustee, after notice and a
hearing to "sell, other than in the ordinary course of business, property of the
estate."  Section 363(b)(1) requires the proponent of the sale to establish
that:
                  1.     a "sound business purpose" justifies the sale;
                  2.     "accurate and reasonable notice" of the sale was
provided;

<PAGE>

                  3.     "the price to be paid is adequate, i.e., fair and
reasonable"; and
                  4.     "good faith, i.e., the absence of any lucrative deals
with insiders, is present."

                  In re Industrial Valley Refrig. and Air Cond. Supplies, Inc.,
                  ------------------------------------------------------------
77 B.R. 15, 21 (Bankr. E.D. Pa. 1987).

                  As discussed below, the Trustee believes that each of the
foregoing requirements have been met. Therefore, the Court should grant the
Motion and permit the Trustee to sell the estate's interest in the Corporate
Assets to the Buyer pursuant to the terms of the Offer.

                  1.  Sound Business Justification.
                      ----------------------------

                  The Bankruptcy Appellate Panel in In re Walter, 83 B.R. 14
                                                    ------------
(9th Cir. BAP. 1988), adopted a flexible, case by case test to determine whether
the business purpose for the proposed sale justifies disposition of property of
the estate under Section 363(b).

                  In Walter, the Court adopted the reasoning of the Fifth
                     ------
Circuit in In re Continental Airlines, Inc., 780 F.2d 1223, 1226 (5th Cir.
           --------------------------------
1986), and the Second Circuit in In re Lionel Corp., 722 F.2d 1063, (2d Cir.
                                 -----------------
1983), and articulated the criteria a Bankruptcy Court should consider in
deciding whether to approve or disapprove the use or sale of estate property
under Section 363(b):

                           Whether the proffered business justification is
                  sufficient depends on the case. As the Second Circuit held in
                  Lionel, the bankruptcy judge should consider all salient
                  ------
                  factors pertaining to the proceeding and, accordingly, act to
                  further the diverse interests of the debtor, creditors and
                  equity holders alike. He might for example look to such
                  relevant facts as the proportionate value of the asset to the
                  estate as a whole, the amount of elapsed time since the

<PAGE>

                  filing, the likelihood that a plan of reorganization will be
                  proposed and confirmed in the near future, the effect of the
                  proposed disposition on future plans of reorganization, the
                  proceeds to be obtained from the disposition vis-a-vis any
                  appraisals of the property, which of the alternatives of use,
                  sale or lease the proposal environs and, most importantly
                  perhaps, whether the asset is increasing or decreasing in
                  value. The list is not intended to be exclusive, but merely to
                  provide guidance to the bankruptcy judge.

Walter, 83 B.R. at 19-20, quoting Continental Airlines, Inc., 780 F.3d at 1226.
------                    ------- --------------------------

                  The purchase price was derived through arms-length
negotiations and is a fair market price for the estate's interest in the
Corporate Assets. The Buyer's offer is the highest and best offer the Trustee
has received to date. Furthermore, the Buyer recognizes that the sale is
explicitly conditioned upon Court approval and the opportunity for overbids.

                  The facts pertaining to the sale at issue justify and
substantiate the Trustee's business decision that the contemplated sale of the
estate's interest in the Corporate Assets is in the best interest of EINI's
estate and should be approved by the Court. The Trustee has considered several
factors in determining the value of the estate's interest in the Corporate
Assets, including the sales cost and time delay associated with marketing and
selling the estate's interest in the Corporate Assets.

                  The foregoing demonstrates that the sale of the estate's
interest in the Corporate Assets is justified by sound business purpose,
satisfying the first requirement for a sale under Section 363(b).

<PAGE>

                  2. The Purchase Price for the Sale of the EINI's Corporate
                     -------------------------------------------------------
                     Assets is Fair and Reasonable.
                     ------------------------------

                  For the purposes of Section 363(b), the requirement that a
fair and reasonable price be obtained for the property has been defined as
requiring a price equaling at least 75% of the fair market value of the property
- absent extenuating circumstances. In re Abbotts Dairies of Pennsylvania, Inc.,
                                    --------------------------------------------
788 F.2d 143 (3d Cir. 1986); Willemain v. Kivitz, 764 F.2d 1019 (4th Cir. 1985);
                             --------------------
In re Karpe, 84 B.R. 926 (Bankr. M.D. Pa. 1988). The Trustee believes the offer
-----------
to be fair and reasonable in considering the nature of the Corporate Assets, the
price being received, and the ability of the Buyer to effectively consummate the
sales transaction. Thus, the Purchase Price constitutes the fair market value of
the estate's interest in the Corporate Assets and is, therefore, "fair and
reasonable."

                  3.  Good Faith.
                      -----------

                  The good faith requirement "focuses principally on the element
of special treatment of the debtor's insiders in the sale transaction . . . ."
Industrial Valley, B.R. at 17. In this case, EINI has no ownership interest in
------------------
the Buyer. The Trustee is an independent fiduciary whose obligations lie with
the estate, not EINI. As such, the sale to the Buyer has been negotiated
extensively on an arms-length basis and confers no special treatment on EINI.

                  4. Accurate and Reasonable Notice.
                     ------------------------------

                  Rule 2002(a)(2) of the Federal Rules of Bankruptcy Procedure
requires that "not less than 20 days notice by mail" be given for a "proposed
use, sale or lease of property of the estate other than in the ordinary course
of business . . ." Rule 2002(c)(1) requires the notice to "include the time and

<PAGE>

place of any public sale, the terms and conditions of any private sale and the
time fixed for filing objections." Notice of the proposed sale has been given in
accordance with these Rules, as evidenced by the Notice of Motion on file with
the court and the proof of service attached thereto.

                  In view of the compelling business reasons for the sale of the
estate's interest in the Corporate Assets, and the sale's satisfaction of the
procedural and substantive requirements of Section 363(b), the Trustee submits
that the Court should approve the sale to the Buyer.

                                       IV.
                                       ---
       EINI'S CORPORATE ASSETS SHOULD BE SOLD FREE AND CLEAR OF ALL LIENS
       ------------------------------------------------------------------

                  Section 363(f) provides that a Trustee may sell assets of the
estate "free and clear of any interest in such property of an entity other than
the estate only if - (1) applicable non-bankruptcy law permits sale of such
property free and clear of such interest; (2) such entity consents; (3) such
interest is a lien and the price at which such property is to be sold is greater
than the aggregate value of all liens on such property; (4) such interest is in
bona fide dispute; or (5) such entity could be compelled, in legal or equitable
proceedings, to accept a money satisfaction of such interest." This section of
the Bankruptcy Code has been interpreted to be in the disjunctive, rather than
the conjunctive. Thus, the Trustee need only demonstrate that one of the
elements of this section exists. In re Elliot, 94 B.R. 343, 345 (Bankr. E.D. Pa.
                                 ------------
1988). In the present case, the Trustee believes there are no liens against the
Corporate Assets.

<PAGE>

                  Furthermore, the Trustee has satisfied the requirements of
both Sections 363(f)(2) and (3). The Trustee has notified all interested parties
of the sale through the notice of motion. Any party objecting to such sale may
file their objection with the Court and be heard at the hearing on the Motion.
If there is no objection, the parties will be deemed to have consented to the
sale of the Corporate Assets. See Veltman v. Whetzal, 93 F.3d 517 (8th Cir.
                                  ------------------
1996) (failure to object to proposed sale, coupled with agreement authorizing
sale free of interest, constituted consent); In re Elliot, 94 B.R. 343 (E.D. Pa.
                                             ------------
1988) (implied consent found); In re Tabore, Inc., 175 B.R. 855 (Bankr. D.N.J.
                               ------------------
1994) (failure to object to notice of sale or attend hearing deemed consent to
sale for purposes of section 363); In re Shary, 152 B.R. 724 (Bankr. N.D. Ohio
                                   -----------
1993) (state's failure to object to transfer of liquor license constituted
consent to sale). Thus, pursuant to Section 363(f)(2), the Trustee may sell the
Corporate Assets, free and clear of any interest of entities other than the
bankruptcy estate because they will be deemed to have consented to the sale of
the Corporate Assets, if they make no objections to the sale.

                  Pursuant to Section 363(f)(3), the Trustee may sell property
of the estate free and clear of interests if the interest is a lien and the
price at which the property is to be sold is greater than the aggregate value of
all liens on that property. This provision requires the Court to look not merely
to the value of the lien of the objecting creditor, but to whether the estate
has any equity in the property. The question becomes, "what is the value of the
liens?" Early decisions held that Section 363(f)(3) required that the sales
price exceed the face amount of all lients. However, more recent decisions have

<PAGE>

held that the term "value" should be interpreted as the "secured valued of the
liens, not the face amount." See In re Beker Industries Corp., 63 B.R. 474, 477
                                 ----------------------------
(Bankr. S.D.N.Y. 1986) (actual value as distinguished from lien); In re Collins,
                                                                  --------------
180 B.R. 447, 450-01 (Bankr. E.D. Va. 1995) (actual value rather than base
amount of the lien); In re WPRV-TV, Inc., 143 B.R> 315, 320 (D.P.R.) 1991, 983
                     -------------------
F.2d 336 (1st Cir. 1993) (actual value as used inss.506(a)0; In re Milford
                                                             -------------
Group, Inc., 150 B.R. 904, 906 (Bankr. E.D. Pa. 1992) (value of collateral
-----------
rather than value of all debts against property); In re Oneida Lake Dev., Inc.,
                                                  -----------------------------
114 B.R. 352 (Bankr. N.D.N.Y. 1990) (value of creditor's interest in property
rather than face amount of lien); In re Terrace Gardens Park Partnership, 96
                                  --------------------------------------
B.R. 707 (Bankr. W.D. Tex. 1989) (debtor could sell estate property free and
clear of liens, so long as the sale price exceeded the value of the property,
even if it did not exceed the aggregate of all the debts asserted to be secured
by liens on the property).

                  In this case, the Trustee will sell the Corporate Assets,
subject only to overbids. Thus, the sale will draw buyers who are specifically
interested in the Corporate Assets. An auction setting necessarily establishes
the fair market value of the property because willing buyers are bidding against
each other. If the value of the liens is measured as the value of the
collateral, and not the face value of the lien, then an auction will ensure that
the full, fair market value of the collateral is received. Thus, the Section
363(f)(3) requirement that the price at which the property is sold is greater
than the aggregate value of all liens will be satisfied.

<PAGE>

                  Therefore, the Trustee has more than satisfied the
requirements of Section 363(f) because he has demonstrated that not one, but two
of the conditions of this Section exist in the present case. As such, based on
the foregoing reasons, the Trustee believes that the sale of the Corporate
Assets free and clear of any liens, claims or interests is proper pursuant to
Section 363(f), and the liens, claims or interests, if any, should attach to the
proceeds of the sale pursuant to Sections 363(f)(2) and 363(f)(3).

                                       V.
                                       --
                      THE BUYER IS A GOOD FAITH PURCHASER
                      -----------------------------------
                           PURSUANT TO SECTION 363(m)
                           --------------------------

                  The Court should hold that the Buyer is a good faith purchaser
entitled to the protections afforded a purchaser pursuant to Section 363(m).

            Section 363(m) provides:
            The reversal or modification on appeal of an authorization
            under subsection (b) or (c) of this section of a sale or lease
            of property does not affect the validity of a sale or lease
            under such authorization to an entity that purchased or leased
            such property in good faith, whether or not such entity knew
            of the pendency of the appeal, unless such authorization and
            such sale or lease were stayed pending appeal.

                  Pursuant to Section 363(m), a good faith purchaser is one who
buys in good faith and for value. Lack of good faith is shown by fraud,
collusion between the purchaser and the trustee, or an attempt to take grossly
unfair advantage of other bidders. In re Ewell, 958 F.2d 276, 279 (9th Cir.
                                   -----------
1992). The Buyer has agreed to pay the fair market value for the Corporate
Assets and has acted in good faith. Therefore, the Court should find that the
Buyer is a good faith purchaser pursuant to Section 363(m).

<PAGE>

                                       VI.
                                       ---
                        THE OFFER IS FAIR AS CONTEMPLATED
                       ----------------------------------
        UNDER SECTIONS 3(a)(7) OR (a) (10) OF THE SECURITIES ACT OF 1933
        ----------------------------------------------------------------

                  In the event that the Trustee is unable to issue the
post-split shares to the Buyer without restriction on their transferability, the
Trustee seeks a further finding from the Court in an abundance of caution that
the terms of the Offer for the sale of the Corporate Assets is fair as
contemplated under either Sections 3(a)(7) and/or (a)(10) of the Securities Act
of 1933 which is specifically found at 15 U.S.C. Sections 77c(a)(7) and (a)(10).

                  Section 77c exempts certain categories of securities from
registration with the Securities Exchange Commission (the "SEC") under certain
specific conditions. As securities exempt from registration with the SEC, they
may be transferable without restriction. Without the exemptions, these
securities must be registered with the SEC and would not be transferable without
restriction.

                  Section 77c(a)(7) exempts those securities from registration
with the SEC which have been "issued by a receiver or by a trustee or debtor in
possession in a case under title 11 of the United States Code, with the approval
of the court."

                  The Trustee believes that the exemption requires under Section
77c(a)(7) will be satisfied in this case. The Trustee will be issuing 2,500,000
post-split shares to the new management and 5,000,000 post-split shares to the
new investors pursuant to the terms of the Offer in a Chapter 7 case under Title
11. The Trustee is further seeking approval of the terms of the Agreement on the

<PAGE>

grounds, among others, that the terms are fair and reasonable. To the extent
that the Court approves the Trustee's motion and determines that the terms of
the sale of the Corporate Assets are fair and reasonable, the Trustee requests
that the Court further find it approves the Offer as contemplated pursuant to
Section 77c(a)(7). If the Court makes this further determination and approves
the terms as contemplated pursuant to Section 77c(a)(7), the shares issued by
the Trustee would be exempt from registration with the SEC and, pursuant to
Section 77c(a)(7), the Trustee could issue and transfer the shares without any
restrictions.

                  Further, pursuant to Section 77c(a)(7), the shares issued by
the Trustee may also be exempt from registration with the SEC and, therefore,
may be transferred without restriction. Section 77c(a)(7) provides in pertinent
part:

                   [W]ith respect to a security exchanged in a
                   -------------------------------------------
                   case under Title 11 of the United States
                   ----------------------------------------
                   Code, any securities which are issued in
                   ----
                   exchange for one or more claims or property
                   interests, or partly in such exchange and
                   partly for cash, where the terms and
                                    -------------------
                   conditions of such issuance and exchange are
                   --------------------------------------------
                   approved, after a hearing upon the fairness
                   -------------------------------------------
                   of such terms and conditions at which all
                   -----------------------------------------
                   persons to whom it is proposed to issue
                   ---------------------------------------
                   securities in such exchange shall have the
                   ------------------------------------------
                   right to appear, by any court, or by any
                   ----------------------------------------
                   official or agency of the United States, or
                   -------------------------------------------
                   by any State or Territorial banking or
                   --------------------------------------
                   insurance commission or other governmental
                   ------------------------------------------
                   authority expressly authorized by law to
                   ----------------------------------------
                   grant such approval;
                   --------------------

11 U.S.C. Section 77c(a)(10) (emphasis added).

                  The Trustee believes that the requirements of Section
77c(a)(10) will be satisfied in this case. The Trustee seeks to exchange the
shares for the purchase price of $50,000.00 in a Chapter 7 case under Title 11.

<PAGE>

The Trustee also seeks approval of the terms of the Offer at a hearing in which
the Court determines the fairness and reasonableness of the terms, including the
issuance of the shares by the Trustee. Finally, the Buyer, as the recipient of
the issued securities, will have the opportunity to appear at the hearing on the
approval of the terms of the Offer. To the extent that the Court approves the
Trustee's motion and determines that the terms of the Offer are fair and
reasonable, the Trustee requests that the Court further find it approves the
terms of the Offer as fair as contemplated under Section 77(a)(10). If the Court
makes this further determination, the shares issued by the Trustee would be
exempt from registration with the SEC and, pursuant to Section 77c(a)(10), the
Trustee could issue and transfer the shares without any restrictions.

                  Based on the foregoing, it is clear that in the event that the
Court approves the sale of the Corporate Assets and finds that the Offer is
fair, as contemplated pursuant to Sections 77c(a)(7) and (1)(10), the Trustee
may issue and transfer the shares without any restrictions given that it has
satisfied the requirements of Sections 77c(a)(7) and (a)(10).

                                      VII.
                                      ----
                                   CONCLUSION
                                   ----------

                  Based upon the foregoing, the Trustee respectfully requests
that the motion be granted in all respects, and for such other and further
relief as the Court deems just and proper.

DATED: August 6, 2001             SULMEYER, KUPETZ, BAUMANN & ROTHMAN
                                  A Professional Corporation

                                  By:  s/ VARAND GOURJIAN
                                       ---------------------------------
                                       Varand Gourjian
                                       Attorneys for Timothy J. Yoo,
                                       Chapter 7 Trustee

<PAGE>

                          DECLARATION OF TIMOTHY J. YOO
                          -----------------------------

                  I, Timothy J. Yoo, declare:

                  1. I am the duly appointed, qualified and acting Chapter 7
Trustee ("Trustee") in the bankruptcy case of The Entertainment Internet, Inc.
("EINI"), jointly administered with Only Multimedia Network, Inc. ("OMNI") (the
"Debtors"). I make this declaration in support of the Motion to Approve the Sale
of Property of the Estate (the "Motion"). The facts stated below are known to be
true of my personal knowledge, except for those stated upon information and
belief, and I believe those to be true.

                  2. EINI filed a voluntary petition under Chapter 11 of Title
11 of the United States Code on November 22, 2000. OMNI filed a voluntary
petition under Chapter 11 of Title 11 of the United States Code on December 8,
2000. On February 13, 2001 this Court entered an Order granting the motion for
joint administration of the estates of EINI and OMNI. Both cases were
subsequently converted to cases under Chapter 7.

                  3. Pursuant to a notice of appointment, I became the duly
appointed, qualified, and acting Chapter 7 Trustee in these jointly administered
cases and continue to act in this capacity.

                  4. EINI owns 100% of the stock of OMNI. As a result, the
Debtors are "affiliates" within the meaning of 11 U.S.C. ss.101(2). The Debtors
are engaged in the business of developing and operating a website known as
Castnet.com ("Castnet"). Castnet is a working actors' database designed for
those professionals who are pursuing on-camera work in film, TV and commercials,
as well as live theatre and other performance areas. Through its Castnet
website, the Debtors enable members of the entertainment industry, including

<PAGE>

actors, directors and talent agents, to come together in an electronic community
which allows virtually instant response to communication and searches for
information.

                  5. On July 12, 2001, the managing member of Champion Equities,
LLC (the "Buyer") contacted me, and made an offer to purchase the Corporate
Assets of the Debtor for the amount of $50,000.00 subject to certain terms and
conditions. I, by and through my proposed counsel, made a counteroffer to the
terms and conditions of the Buyer's offer. After further discussions, the Buyer
agreed to the terms and conditions of my counteroffer and the purchase price of
$50,000.00 and, as such, the Buyer delivered a down-payment of $5,000.00 to me
which is currently being held in my account pending final Court approval of the
sale.

                  6. This proposed sale of the Corporate Assets is subject to
the Buyer's conditions that: (1) the Trustee shall authorize and implement a
three hundred-for-one (300-for-1) reverse-split of all EINI shares, (2) the
Trustee shall cancel all preferred shares of stock, (3) the Trustee shall cancel
all common and preferred share conversion rights of any kind, including
warrants, options and convertible debt, (4) the Trustee shall issue to the new
management of the company a total of two million five hundred thousand
(2,500,000) post-split shares, (5) the Trustee shall issue to the new investors
of the company a total of five million (5,000,000) post-split shares, (6) the
Trustee shall cause a liability opinion as to the status of EINI to be delivered
to the Buyer (7) the Trustee shall cause to be delivered to the Buyer a
Certificate of Good Standing of EINI (8) the Court shall cause the sale to be
free and clear of all public and private liens, interests, judgments,

<PAGE>

obligations, and encumbrances, (9) the Trustee shall make attempts to cause to
be delivered to Buyer all corporate books and records of EINI to Champion upon
closing, and (10) the Buyer be authorized to amend the Articles of Incorporation
of EINI in accordance with the terms of this Court's order on this Motion.

                  7. In addition to the Buyer's conditions, I have requested
that the Court rule on the fairness of this sale as contemplated in Section
3(a)(7) and/or Section 3(a)(10) of the Securities Act of 1933, and have also
requested that the order entered by the Court approving the sale state that the
transaction is fair and otherwise in the best interests of the Debtor and its
creditors.

                  8. The Debtor has no ownership interest in the Buyer. The
Buyer agrees to purchase the estate's interest in the Corporate Assets pursuant
to the terms set forth in the Letter Offer and Addendum thereto (the "Offer")
attached hereto as Exhibit "1." The sale of the Corporate Assets shall be free
and clear of all liens, claims, and encumbrances in existence as of the
commencement of this bankruptcy case.

                  9.       I believe that the sale is in the best interests of
the estate for the following reasons:

                  (a) The Purchase Price maximizes the value of the estate's
                  interest in the Corporate Assets to the estate.

                  (b) The terms of the sale with the Buyer have been negotiated
                  at arms-length and the consideration for purchase of the
                  Corporate Assets is fair and reasonable, and represents the
                  fair market value for the Corporate Assets.
<PAGE>

                  (c) I have satisfied all procedural requisites of notice of
                  the Motion to Approve Sale of Property of the Estate (the
                  "Motion") to obtain Court approval of this sale.

                  10. The estate's interest in the Corporate Assets shall be
sold free and clear of all encumbrances, security interests and liens in
existence as of the Petition Date. Finally, the Corporate Assets shall be sold
"AS IS" and "WHERE IS" and without any warranties as to condition, fitness for
use, and marketability except for the promises which might be reasonably
construed as a warranty (i.e., the promise that the Corporate Assets will be
delivered to Buyer free and clear of liens, claims, or encumbrances or that the
shares to be issued will be non-restricted).

                  11. In view of the value of the Corporate Assets, I have
determined, in my best business judgment, that the proposed purchase price and
terms are fair and reasonable. I do not believe that I will receive a better
offer for the Corporate Assets than the offer that is the subject of this
Motion.

                  12. Based upon the foregoing, I request that the Court approve
the sale of the Corporate Assets free and clear of liens, claims, and
encumbrances.

                  I declare under penalty of perjury that the foregoing
statements are true and correct.

                  EXECUTED THIS 10th DAY OF AUGUST, 2001, AT LOS ANGELES,
CALIFORNIA.

                                 s/ TIMOTHY J. YOO
                                 -------------------
                                 Timothy J. Yoo

<PAGE>

Howard M. Ehrenberg (CA Bar No. 125527)
Daniel A. Lev (CA Bar No. 129622)
Varand Gourjian (CA Bar No. 205344)
SULMEYER, KUPETZ, BAUMANN & ROTHMAN
A Professional Corporation
300 South Grand Avenue, 14th Floor
Los Angeles, California 90071
Telephone: (213) 626-2311
Facsimile: (213) 629-4520

Attorneys for Timothy J. Yoo, Chapter 7 Trustee

                         UNITED STATES BANKRUPTCY COURT

              CENTRAL DISTRICT OF CALIFORNIA, LOS ANGELES DIVISION

In re                                        CASE NO. LA 00-42737-EC

THE ENTERTAINMENT INTERNET, INC.,            (Jointly Administered with
a Nevada corporation,                        Case No. LA 00-44137-EC)
and ONLY MULTIMEDIA NETWORK, INC.,
a Californiacorporation,
                                             Chapter 7
                  Debtors.
                                             SUPPLEMENTAL DECLARATION OF TIMOTHY
                                             J. YOO IN SUPPORT OF MOTION TO
                                             APPROVE SALE OF PROPERTY OF THE
                                             ESTATE PURSUANT TO 11 U.S.C.ss.363

                                             DATE:     September 19, 2001
                                             TIME:     1:30 p.m.
                                             PLACE:    Courtroom 1639
                                                       255 East Temple Street
                                                       Los Angeles, CA 90012

-----------------------------------

                  I, Timothy J. Yoo, declare:

                  1. I am an attorney at law duly admitted to practice before
this Court and the duly appointed, qualified and acting Chapter 7 Trustee for
the estate of the jointly administered estates of the debtors The Entertainment
Internet, Inc. ("EINI") and Only Multimedia Network, Inc. ("OMNI")
(collectively, the "Debtors"). I make this declaration in further support of the

<PAGE>

Motion to Approve Sale of Property of the Estate Pursuant to 11 U.S.C. Section
363 (the "Motion") which was heard and approved by the Court on September 19,
2001. Each of the facts contained in this declaration are based on my personal
knowledge, and if called as a witness I could and would competently testify
thereto.

                  2. EINI filed a voluntary petition under Chapter 11 of Title
11 of the United States Code on November 22, 2000. OMNI filed a voluntary
petition under Chapter 11 of Title 11 of the United States Code on December 8,
2000. On February 13, 2001 this Court entered an Order granting the motion for
joint administration of the estates of EINI and OMNI. Both cases were
subsequently converted to cases under Chapter 7.

                  3. Pursuant to a notice of appointment, I became the duly
appointed, qualified, and acting Chapter 7 Trustee in these jointly administered
cases and continue to act in this capacity. Subsequent to my appointment, I
conducted an examination of the Debtors pursuant to Section 341. Both prior to
and subsequent to the examination, I examined and inspected the Debtors'
schedules and books and records to determine the scope of secured and unsecured
claims against the respective estates. I also caused my proposed counsel,
Sulmeyer, Kupetz, Baumann & Rothman to conduct a UCC search in both California
and Nevada, the states where the Debtors were incorporated.

                  4. In particular, I was interested in determining what assets
could be liquidated to make a distribution to creditors of the estate.
Eventually, in July, 2001, I was contacted by the managing member of Champion
Equities, LLC (the "Buyer") who made an offer to purchase certain assets of the

<PAGE>

EINI estate consisting of EINI's interest in the "corporate shell" or the
corporate power and existence of EINI, including its authorized but unissued
common capital stock (collectively, the "Corporate Assets") for the amount of
$50,000.00. Upon acceptance of the offer, I caused my counsel to prepare, serve
and file the Motion to obtain Court approval of the sale.

                  5. My understanding is that the Court approved the sale on
September 19, 2001, subject to the submission of a supplemental declaration
attesting to (i) my diligence in determining the existence of liens against the
Corporate Assets and (ii) the necessity of a finding of fairness under Section
3(a)(7) and/or Section 3(a)(10) of the Securities Act of 1933. As detailed
earlier, I undertook all reasonable and necessary steps to determine the
existence of any liens, judgments, claims or encumbrances against the Corporate
Assets. My investigation did not reveal the existence of any such liens, claims,
or encumbrances.

                  6. I am seeking a finding of fairness of this sale as
contemplated in Section 3(a)(7) and/or Section 3(a)(10) of the Securities Act of
1933 in the event that I am unable to issue the post-split shares to the Buyer
without restriction on their transferability. Section 77c exempts certain
categories of securities from registration with the Securities Exchange
Commission (the "SEC") under certain specific conditions. As securities exempt
from registration with the SEC, they may be transferable without restriction.
Without the exemptions, these securities must be registered with the SEC and
would not be transferable by the estate without restriction. Section 77c(a)(7)
exempts those securities from registration with the SEC which have been "issued
by a receiver or by a trustee or debtor in possession in a case under title 11
of the United States Code, with the approval of the court."

<PAGE>

                  7. I believe that the exemption required under Section
77c(a)(7) will be satisfied in this case. In connection with the approved sale,
in my capacity as Trustee I intend to issue 2,500,000 post-split shares to the
new management and 5,000,000 post-split shares to the new investors pursuant to
the terms of the offer. If the Court makes this further determination and
approves the terms as contemplated pursuant to Section 77c(a)(7), the shares
issued by me in my capacity as Trustee would be exempt from registration with
the SEC and, pursuant to Section 77c(a)(7), I could issue and transfer the
shares without any restrictions which will facilitate consummation of the sale
to the Buyer.

                  I declare under penalty of perjury under the laws of the
United States of America that the foregoing is true and correct.

                  Executed this 19th day of September, 2001, at Los Angeles,
California.

                                                     s/ TIMOTHY J. YOO
                                                     -----------------
                                                     Timothy J. YooTRUST DEED

CONFORMED COPY

 

Dated 7

February 2002

 

ECOLAB INC.

 

and

 

JPMORGAN CHASE BANK, LONDON BRANCH

 

TRUST DEED

 

constituting

 

€300,000,000

5.375%

Notes due 2007

 

LINKLATERS

&

ALLIANCE

 

LINKLATERS

 

Ref :

AMS/LZH

 

 

This Trust Deed is

made on 7 February 2002 between:

 

(1)           ECOLAB

INC. (the “Issuer”) and

 

(2)                                  JPMORGAN CHASE BANK, LONDON BRANCH (the

“Trustee”,

which expression, where the context so admits, 

includes any other trustee for the time being of this Trust Deed).

 

Whereas:

 

(A)                              The Issuer, a company incorporated in the State of Delaware, has

authorised the issue of €300,000,000 5.375% Notes due 2007 to be constituted by

this Trust Deed.

 

(B)           The Trustee has agreed to act as

trustee of this Trust Deed on the following terms and conditions.

 

This Deed witnesses and it is declared as follows:

 

1              Interpretation

 

1.1          Definitions: The following expressions have the following meanings:

 

                                                “Authorised Officer” means, with respect to the Issuer, the

Chief Executive Officer, the President, the Chief Financial Officer and the

Treasurer from time to time

 

“Conditions”

means the terms and conditions set out in Schedule 1 as from time to time

modified in accordance with this Trust Deed 

and, with respect to any Notes represented by the Global Note, as

modified by the provisions of the Global Note. 

Any reference to a particularly numbered Condition shall be construed

accordingly

 

“Couponholder”

means the holder of a Coupon

 

“Coupons”

means the bearer coupons relating to the Notes or, as the context may require,

a specific number of them and 

includes any

replacement Coupons issued pursuant to the Conditions

 

“Event of

Default” means an event described in Condition 8

 

“Extraordinary

Resolution” has the meaning set out in Schedule 3

 

“Global Note”

means the Temporary Global Note and the Permanent Global Note

 

“Noteholder”

means the holder of a Note

 

“Notes”

means bearer Notes substantially in the form set out in Schedule 1 comprising

the €300,000,000 5.375% Notes due 2007 constituted by this Trust Deed and for

the time being outstanding or, as the context may require, a specific number of

them and includes any replacement Notes issued pursuant to the Conditions and

(except for the purposes of Clause 3.1) the Temporary Global Note and the

Permanent Global Note

 

“outstanding”

means, in relation to the Notes, all the Notes issued except (a) those which

have been redeemed in accordance with the 

Conditions, (b) those in respect of which the date for redemption has

occurred and the redemption moneys (including all interest accrued on such

Notes to the date for such redemption and any interest payable under the

Conditions after such date) have been duly paid to the Trustee or to the

Principal Paying Agent as provided in Clause 2 and remain available for payment

against presentation and surrender of Notes and/or Coupons, as the case may be,

(c) those which have become void, (d) those which have been purchased and

cancelled as provided in the Conditions, (e) those mutilated or defaced Notes

which have been surrendered in exchange for replacement Notes, (f) (for the

purpose only of 

 

2

 

determining

how many Notes are outstanding and without prejudice to their status for any

other purpose) those Notes alleged to have been lost, stolen or destroyed and

in respect of which replacement Notes have been issued, and (g) the Temporary

Global Note to the extent that it shall have been exchanged for the Permanent

Global Note pursuant to its provisions and the Permanent Global Note to the

extent that it shall have been exchanged for definitive Notes pursuant to its

provisions provided that for the purposes of (1) ascertaining the right to

attend and vote at any meeting of the Noteholders, (2) the determination of how

many Notes are outstanding for the purposes of Conditions 8 and 11 and Schedule

3 and (3) the exercise of any discretion, power or authority which the Trustee

is required, expressly or impliedly, to exercise in or by reference to the

interests of the Noteholders Notes which are beneficially held by or on behalf

of the Issuer or any of its Subsidiaries and not cancelled shall (unless no

longer so held) be deemed not to remain outstanding

 

“Paying

Agency Agreement” means the agreement referred to as such in the

Conditions, as altered from time to time, and includes any other agreements

approved in writing by the Trustee appointing Successor Paying Agents or

altering any such agreements

 

“Paying

Agents” means the banks (including the Principal Paying Agent)

referred to as such in the Conditions or any Successor Paying Agents in each

case at their respective specified offices

 

“Permanent

Global Note” means the permanent global Note which will represent

the Notes after exchange of the Temporary Global Note substantially in the form

set out in Part 2 of Schedule 2

 

“Potential

Event of Default” means an event or circumstance which could with

the giving of notice, lapse of time, issue of a certificate and/or fulfilment

of any other requirement provided for in Condition 8 become an Event of Default

 

“Principal

Paying Agent” means the bank named as such in the Conditions or any

Successor Principal Paying Agent

 

“specified

office” means, in relation to a Paying Agent, the office identified

with its name at the end of the Conditions or any other office approved by the

Trustee and notified to Noteholders pursuant to Clause 6.10

 

“Subsidiary”

means (except in Clause 5.3) any corporation of which the Issuer directly or

indirectly owns or controls stock which under ordinary circumstances (not

dependent upon the happening of a contingency) has the voting power to elect a

majority of the board of directors of such corporation

 

“Successor”

means, in relation to the Paying Agents, such other or further person as may

from time to time be appointed by the Issuer as a Paying Agent with the prior

written approval of, and on terms approved in writing by, the Trustee and

notice of whose appointment is given to Noteholders pursuant to Clause 6.10

 

“Temporary

Global Note” means the temporary global Note which will represent

the Notes on issue substantially in the form set out in Part 1 of Schedule 2

 

“this Trust

Deed” means this Trust Deed (as from time to time altered in

accordance with this Trust Deed) and any other document executed in accordance

with this Trust Deed (as from time to time so altered) and expressed to be

supplemental to this Trust Deed

 

“trust

corporation” means a trust corporation (as defined in the Law of

Property Act 1925) or a corporation entitled to act as a trustee pursuant to

applicable foreign legislation relating to trustees

 

3

 

1.2          Construction

of Certain References: References to:

 

1.2.1       costs,

charges, remuneration or expenses include any value added, turnover or similar

tax charged in respect thereof

 

1.2.2                     “dollars” and “U.S.$” are to the lawful currency for the

time being of the United States of America and to “euro”  and “€” are to the single currency introduced in

January 1999 pursuant to the Treaty establishing the European Community, as

amended by the Treaty on European Union and

 

1.2.3                     an action, remedy or method of judicial proceedings for the

enforcement of creditors’ rights include references to the  action, remedy or method of judicial

proceedings in jurisdictions other than England as shall most nearly

approximate thereto.

 

1.3          Headings: Headings shall be ignored in construing this Trust Deed.

 

1.4          Schedules: The Schedules are part of this Trust Deed and have effect

accordingly.

 

1.5                               Contracts (Rights of Third Parties) Act 1999: A person who is not a party to this Trust Deed has no right under

the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this

Trust Deed except and to the extent (if any) that this  Trust Deed expressly provides for such Act

to apply to any of its terms.

 

2              Amount of the Notes

and Covenant to Pay

 

2.1          Amount

of the Notes: The aggregate principal amount

of the Notes is limited to €300,000,000.

 

2.2                               Covenant to pay: The Issuer will on any

date when any Notes become due to be redeemed unconditionally pay to or to

theorder of the Trustee in euro in same day funds the principal amount of the

Notes becoming due for redemption on that date and will (subject to the

Conditions) until such payment (both before and after judgment) unconditionally

so pay to or to the order of the Trustee interest on the principal amount of

the Notes outstanding as set out in the Conditions (subject to Clause 2.5)

provided that (1) payment of any sum due in respect of the Notes made to the

Principal Paying Agent as provided in the Paying Agency Agreement shall, to

that extent, satisfy such obligation except to the extent that there is failure

in its subsequent payment to the relevant Noteholders or Couponholders under

the Conditions and (2) a payment made after the due date or pursuant to

Condition 8 will be deemed to have been made when the full amount due has been

received by the Principal Paying Agent or the Trustee and notice to that effect

has been given to the Noteholders (if required under Clause 6.8), except to the

extent that there is failure in its subsequent payment to the relevant

Noteholders or Couponholders under the Conditions.  The Trustee will hold the benefit of this covenant on trust for

the Noteholders and Couponholders.

 

2.3                               Discharge: Subject to Clause 2.4, any

payment to be made in respect of the Notes or the Coupons by the Issuer or the

Trustee may be made as provided in the Conditions and any payment so made will

(subject to Clause 2.4) to that extent be a good discharge to the Issuer or the

Trustee, as the case may be.

 

2.4                               Payment after a Default: At any time

after an Event of Default or a Potential Event of Default has occurred the

Trustee may:

 

2.4.1                     by notice in writing to the Issuer and the Paying Agents, require

the Paying Agents, until notified by the Trustee to the contrary, so far as

permitted by applicable law:

 

4

 

(i)                                     to act as Paying Agents of the Trustee under this Trust Deed and the

Notes on the terms of the Paying  Agency

Agreement (with consequential amendments as necessary and except that the

Trustee’s liability for the 

indemnification, remuneration and expenses of the Paying Agents will be

limited to the amounts for the time being 

held by the Trustee in respect of the Notes on the terms of this Trust

Deed) and thereafter to hold all Notes and 

Coupons and all moneys, documents and records held by them in respect of

Notes and Coupons to the order of the 

Trustee or

 

(ii)                                  to deliver all Notes and Coupons and all moneys, documents and

records held by them in respect of the 

Notes and Coupons to the Trustee or as the Trustee directs in such

notice and

 

2.4.2                     by notice in writing to the Issuer require it to make all subsequent

payments in respect of the Notes and Coupons to or to the order of the Trustee

and not to the Principal Paying Agent.

 

3              Form of the Notes

 

3.1                               The Global Note: The Notes will

initially be represented by the Temporary Global Note in the principal amount

of €300,000,000. Interests in the Temporary Global Note will be exchangeable

for the Permanent Global Note as set out in the Temporary Global Note. The

Permanent Global Note will be exchangeable for definitive Notes as set out in

the Permanent Global Note.

 

3.2                               The Definitive Notes: The definitive

Notes and the Coupons will be security printed in accordance with applicable

legal and stock exchange requirements substantially in the forms set out in

Schedule 1. The Notes will be endorsed with the Conditions.

 

3.3                               Signature: The Notes and the Coupons

will be signed manually or in facsimile by a duly authorised officer of the

Issuer and the Notes will be authenticated by or on behalf of the Principal

Paying Agent. The Issuer may use the facsimile signature of a person who at the

date of this Trust Deed is such a duly authorised officer of the Issuer even if

at the time of issue of any Notes or Coupons he no longer holds that office.

Notes and Coupons so executed and authenticated will be binding and valid

obligations of the Issuer.

 

4              Stamp Duties and

Taxes

 

4.1                               Stamp Duties: The Issuer will pay any

stamp, issue, documentary or other taxes and duties, including interest and

penalties, payable in the United States, Belgium, Luxembourg and the United

Kingdom in respect of the creation, issue and offering of the Notes and the

Coupons and the execution or delivery of this Trust Deed. The Issuer will also

indemnify the Trustee, the Noteholders and the Couponholders from and against

all stamp, issue, documentary or other taxes paid by any of them in any

jurisdiction in connection with any action taken by or on behalf of the Trustee

or, as the case may be, the Noteholders or the Couponholders to enforce the

Issuer’s obligations under this Trust Deed, the Notes or the Coupons.

 

4.2                               Change of Taxing Jurisdiction: If the

Issuer becomes subject generally to the taxing jurisdiction of a territory or a

taxing authority of or in that territory with power to tax other than or in

addition to the United States or any such authority of or in such territory

then the Issuer will (unless the Trustee otherwise agrees) give the Trustee an

undertaking satisfactory to the Trustee in terms corresponding to the terms of

Condition 7 with the substitution for, or (as the case may require) the

addition to, the references in that Condition to the United States of

references to that other or additional territory or authority to whose taxing

jurisdiction the Issuer 

 

5

 

has become so

subject. In such event this Trust Deed, the Notes and the Coupons will be read

accordingly.

 

5              Application of Moneys

Received by the Trustee

 

5.1                               Declaration of Trust: All moneys

received by the Trustee in respect of the Notes or amounts payable under this

Trust Deed will, despite any appropriation of all or part of them by the

Issuer, be held by the Trustee on trust to apply them (subject to Clause 5.2):

 

first, in

payment of all costs, charges, expenses and liabilities properly incurred by

the Trustee (including remuneration payable to it) in carrying out its

functions under this Trust Deed

 

secondly, in

payment of any amounts owing in respect of the Notes or Coupons pari

passu

and rateably and

 

thirdly, in

payment of any balance to the Issuer for itself.

 

If the Trustee

holds any moneys in respect of Notes or Coupons which have become void, the

Trustee will hold them on these trusts.

 

5.2                               Accumulation: If the amount of the

moneys at any time available for payment in respect of the Notes under Clause

5.1 is less than 10 per cent of the principal amount of the Notes then

outstanding, the Trustee may, at its discretion, invest such moneys. The

Trustee may retain such investments and accumulate the resulting income until

the investments and the accumulations, together with any other funds for the

time being under its control and available for such payment, amount to at least

10 per cent of the principal amount of the Notes then outstanding and then such

investments, accumulations and funds (after deduction of, or provision for, any

applicable taxes) will be applied as specified in Clause 5.1.

 

5.3                               Investment: Moneys held by the Trustee

may be invested in its name or under its control in any investments or other

assets anywhere whether or not they produce income or deposited in its name or

under its control at such bank or other financial institution in such currency

as the Trustee may, in its absolute discretion, think fit. If that bank or

institution is the Trustee or a subsidiary, holding or associated company of

the Trustee, it need only account for an amount of interest equal to the

standard amount of interest payable by it on such a deposit to an independent

customer. The Trustee may at any time vary or transpose any such investments or

assets or convert any moneys so deposited into any other currency, and will not

be responsible for any resulting loss, whether by depreciation in value, change

in exchange rates or otherwise.

 

6              Covenants

 

So long as any

Note is outstanding, the Issuer will:

 

6.1                               Books of Account: keep, and procure that

its Subsidiaries keep, proper books of account and, at any time after an Event

of Default or Potential Event of Default has occurred or if the Trustee

believes that such an event has occurred, so far as permitted by applicable

law, allow, and procure that each such subsidiary will allow, the Trustee and

anyone appointed by it to whom the Issuer and/or the relevant subsidiary has no

reasonable objection, access to its books of account at all reasonable times during

normal business hours

 

6.2                               Notice of Events of Default: notify the

Trustee in writing immediately on becoming aware of the occurrence of any Event

of Default or Potential Event of Default

 

6.3                               Information: so far as permitted by

applicable law, give the Trustee such information as it requires (having regard

to the interests of Noteholders) to perform its functions

 

6

 

6.4                               Financial Statements etc.: send to the

Trustee at the time of their issue and in the case of annual financial

statements in any event within 180 days of the end of each financial year three

copies in English of every balance sheet, profit and loss account, report or

other notice, statement or circular issued, or which legally or contractually

should be issued, to the members or creditors (or any class of them) of the

Issuer or any holding company thereof generally in their capacity as such

 

6.5                               Certificate of Authorised Officer: send

to the Trustee, within 14 days of its annual audited financial statements being

made available to its members, and also within 14 days of any request by the

Trustee a certificate of the Issuer signed by any Authorised Officer of the

Issuer that, having made all reasonable enquiries, to the best of the knowledge,

information and belief of the Issuer as at a date (the “Certification Date”) not more

than five days before the date of the certificate no Event of Default or

Potential Event of Default or other breach of this Trust Deed had occurred

since the Certification Date of the last such certificate or (if none) the date

of this Trust Deed or, if such an event had occurred, giving details of it

 

6.6                               Notices to Noteholders: send to the

Trustee the form of each notice to be given to Noteholders and, once given, two

copies of each such notice, such notice to be in a form approved by the Trustee

 

6.7                               Further Acts: so far as permitted by

applicable law, do such further things as may be necessary in the opinion of

the Trustee to give effect to this Trust Deed

 

6.8                               Notice of late payment: forthwith upon

request by the Trustee give notice to the Noteholders of any unconditional

payment to the Principal Paying Agent or the Trustee of any sum due in respect

of the Notes or Coupons made after the due date for such payment

 

6.9                               Listing: use all reasonable endeavours

to maintain the listing of the Notes on the Luxembourg Stock Exchange but, if

it is unable to do so, having used such endeavours, or if the maintenance of

such listing is agreed by the Trustee to be unduly onerous and the Trustee is

satisfied that the interests of the Noteholders would not be thereby materially

prejudiced, instead use all reasonable endeavours to obtain and maintain a

listing of the Notes on another stock exchange approved in writing by the

Trustee

 

6.10                        Change in Agents: give at least 14 days’

prior notice to the Noteholders of any future appointment, resignation or

removal of a Paying Agent or of any change by a Paying Agent of its specified

office and not make any such appointment or removal without the Trustee’s prior

written approval

 

6.11                         Notes held by Issuer etc.: send to the

Trustee as soon as practicable after being so requested by the Trustee a

certificate of the Issuer signed by any Authorised Officer of the Issuer

stating the number of Notes held at the date of such certificate by or on

behalf of the Issuer or its Subsidiaries

 

7              Remuneration and

Indemnification of the Trustee

 

7.1                               Normal Remuneration: So long as any Note

is outstanding the Issuer will pay the Trustee as remuneration for its services

as Trustee such sum on such dates in each case as they may from time to time

agree. Such remuneration will accrue from day to day from the date of this

Trust Deed. However, if any payment to a Noteholder or Couponholder of moneys

due in respect of any Note or Coupon is improperly withheld or refused, such

remuneration will again accrue as from the date of such withholding or refusal

until payment to such Noteholder or Couponholder is duly made.

 

7

 

7.2                               Extra Remuneration: If an Event of

Default or Potential Event of Default shall have occurred or if the Trustee

finds it expedient or necessary or is requested by the Issuer to undertake

duties which they both agree to be of an exceptional nature or otherwise

outside the scope of the Trustee’s normal duties under this Trust Deed, the

Issuer will pay such additional remuneration as they may agree or, failing

agreement as to any of the matters in this sub-Clause (or as to such sums

referred to in Clause 7.1), as determined by an investment bank (acting as an

expert) selected by the Trustee and approved by the Issuer or, failing such

approval, nominated by the President for the time being of The Law Society of

England and Wales. The expenses involved in such nomination and such investment

bank’s fee will be paid by the Issuer. The determination of such investment

bank will be conclusive and binding on the Issuer, the Trustee, the Noteholders

and the Couponholders.

 

7.3                               Expenses: The Issuer will also on demand

by the Trustee pay or discharge all costs, charges, liabilities and expenses

properly incurred by the Trustee in the preparation and execution of this Trust

Deed and the performance of its functions under this Trust Deed including, but

not limited to, legal and travelling expenses and any stamp, documentary or

other taxes or duties paid by the Trustee in connection with any legal

proceedings reasonably brought or contemplated by the Trustee against the

Issuer to enforce any provision of this Trust Deed, the Notes or the Coupons.

Such costs, charges, liabilities and expenses will:

 

7.3.1                     in the case of payments made by the Trustee before such demand carry

interest from the date of the demand at the 

rate of one per cent. per annum over the base rate of JPMorgan Chase

Bank on the date on which the Trustee made such payments and

 

7.3.2                     in other cases carry interest at such rate from 30 days after the

date of the demand or (where the demand specifies that payment is to be made on

an earlier date) from such earlier date.

 

7.4                               Indemnity: The Issuer will on demand by

the Trustee indemnify it in respect of Amounts or Claims paid or incurred by it

in acting as trustee under this Trust Deed (including (1) any Agent/Delegate

Liabilities and (2) in respect of disputing or defending any Amounts or Claims

made against the Trustee or any Agent/Delegate Liabilities).  The Issuer will on demand by such agent or

delegate indemnify it against such Agent/Delegate Liabilities. “Amounts or Claims” are losses,

liabilities, costs, claims, actions, demands or expenses and “Agent/Delegate Liabilities” are Amounts or

Claims which the Trustee is or would be obliged to pay or reimburse to any of

its agents or delegates appointed pursuant to this Trust Deed. The Contracts

(Rights of Third Parties) Act 1999 applies to this Clause 7.4.

 

7.5                               Continuing Effect: Clauses 7.3 and 7.4

will continue in full force and effect as regards the Trustee even if it no

longer is Trustee.

 

8              Provisions

Supplemental to the Trustee Act 1925 and the Trustee Act 2000

 

8.1                               Advice: The Trustee may act on the

opinion or advice of, or information obtained from, any expert and will not be

responsible to anyone for any loss occasioned by so acting whether such advice

is obtained or addressed to the Issuer, the Trustee or any other person. Any

such opinion, advice or information may be sent or obtained by letter, telex or

fax and the Trustee will not be liable to anyone for acting in good faith on

any opinion, advice or information purporting to be conveyed by such means even

if it contains some error or is not authentic.

 

8.2                               Trustee to Assume Performance: The

Trustee need not notify anyone of the execution of this Trust Deed or do

anything to find out if an Event of Default or Potential Event of Default has

occurred. Until it has actual knowledge or express notice to the contrary, the

Trustee may 

 

8

 

assume that no

such event has occurred and that the Issuer is performing all its obligations

under this Trust Deed, the Notes and the Coupons.

 

8.3                               Resolutions of Noteholders: The Trustee

will not be responsible for having acted in good faith on a resolution

purporting to have been passed at a meeting of Noteholders in respect of which

minutes have been made and signed even if it is later found that there was a

defect in the constitution of the meeting or the passing of the resolution or

that the resolution was not valid or binding on the Noteholders or

Couponholders.

 

8.4                               Certificate signed by an Authorised Officer: If the Trustee, in the exercise of its functions, requires to be

satisfied or to have information as to any fact or the expediency of any act,

it may call for and accept as sufficient evidence of that fact or the

expediency of that act a certificate signed by any Authorised Officer of the

Issuer as to that fact or to the effect that, in their opinion, that act is

expedient and the Trustee need not call for further evidence and will not be

responsible for any loss occasioned by acting on such a certificate.

 

8.5                               Deposit of Documents: The Trustee may appoint as custodian, on any terms, any

bank or entity whose business includes the safe custody of documents or any

lawyer or firm of lawyers believed by it to be of good repute and may deposit

this Trust Deed and any other documents with such custodian and pay all sums

due in respect thereof. The Trustee is not obliged to appoint a custodian of

securities payable to bearer.

 

8.6                               Discretion: The Trustee will have

absolute and uncontrolled discretion as to the exercise of its functions and

will not be responsible for any loss, liability, cost, claim, action, demand,

expense or inconvenience which may result from their exercise or non-exercise.

 

8.7                               Agents: Whenever it considers it

expedient in the interests of the Noteholders, the Trustee may, in the conduct

of its trust business, instead of acting personally, employ and pay an agent

selected by it, whether or not a lawyer or other professional person, to

transact or conduct, or concur in transacting or conducting, any business and

to do or concur in doing all acts required to be done by the Trustee (including

the receipt and payment of money).

 

8.8                               Delegation: Whenever it considers it

expedient in the interests of the Noteholders, the Trustee may delegate to any

person on any terms (including power to sub-delegate) all or any of its

functions.

 

8.9                               Nominees: In relation to any asset held

by it under this Trust Deed, the Trustee may appoint any person to act as its

nominee on any terms.

 

8.10                        Forged Notes: The Trustee will not be liable

to the Issuer or any Noteholder or Couponholder by reason of having accepted as

valid or not having rejected any Note or Coupon purporting to be such and later

found to be forged or not authentic.

 

8.11                         Confidentiality: Unless ordered to do so

by a court of competent jurisdiction the Trustee shall not be required to

disclose to any Noteholder or Couponholder any confidential financial or other

information made available to the Trustee by the Issuer.

 

8.12                        Determinations Conclusive: As between

itself and the Noteholders and Couponholders the Trustee may determine all

questions and doubts arising in relation to any of the provisions of this Trust

Deed. Such determinations, whether made upon such a question actually raised or

implied in the acts or proceedings of the Trustee, will be conclusive and shall

bind the Trustee, the Noteholders and the Couponholders.

 

8.13                        Currency Conversion: Where it is

necessary or desirable to convert any sum from one currency to another, it will

(unless otherwise provided hereby or required by law) be converted 

 

9

 

at such rate

or rates, in accordance with such method and as at such date as may reasonably

be specified by the Trustee but having regard to current rates of exchange, if

available. Any rate, method and date so specified will be binding on the

Issuer, the Noteholders and the Couponholders.

 

8.14                        Events of Default: The Trustee may

determine whether or not an Event of Default or Potential Event of Default is

in its opinion capable of remedy and/or materially prejudicial to the interests

of the Noteholders. Any such determination will be conclusive and binding on

the Issuer, the Noteholders and the Couponholders.

 

8.15                        Payment for and Delivery of Notes: The

Trustee will not be responsible for the receipt or application by the Issuer of

the proceeds of the issue of the Notes, any exchange of Notes or the delivery

of Notes to the persons entitled to them.

 

8.16                        Notes held by the Issuer etc.: In the

absence of knowledge or express notice to the contrary, the Trustee may assume

without enquiry (other than requesting a certificate under Clause 6.11) that no

Notes are for the time being held by or on behalf of the Issuer or its

Subsidiaries.

 

8.17                        Responsibility for agents

etc.: If

the Trustee exercises reasonable care in selecting any custodian, agent,

delegate or nominee appointed under this clause (an “Appointee”), it will not have

any obligation to supervise the Appointee or be responsible for any loss,

liability, cost, claim, action, demand or expense incurred by reason of the

Appointee’s misconduct or default or the misconduct or default of any

substitute appointed by the Appointee.

 

9              Trustee Liable for

Negligence

 

Section 1 of

the Trustee Act 2000 shall not apply to any function of the Trustee, provided

that if the Trustee fails to show the degree of care and diligence required of

it as trustee, nothing in this Trust Deed shall relieve or indemnify it from or

against any liability which would otherwise attach to it in respect of any

negligence, default, breach of duty or breach of trust of which it may be

guilty.

 

10           Waiver and Proof of

Default

 

10.1                        Waiver: The Trustee may, without the

consent of the Noteholders or Couponholders and without prejudice to its rights

in respect of any subsequent breach, from time to time and at any time, if in

its opinion the interests of the Noteholders will not be materially prejudiced

thereby, waive or authorise, on such terms as seem expedient to it, any breach

or proposed breach by the Issuer of this Trust Deed or the Conditions or

determine that an Event of Default or Potential Event of Default will not be

treated as such provided that the Trustee will not do so in contravention of an

express direction given by an Extraordinary Resolution or a request made

pursuant to Condition 8. No such direction or request will affect a previous

waiver, authorisation or determination. Any such waiver, authorisation or

determination will be binding on the Noteholders and the Couponholders and, if

the Trustee so requires, will be notified to the Noteholders as soon as

practicable.

 

10.2                        Proof of Default: Proof that the Issuer

has failed to pay a sum due to the holder of any one Note or Coupon will

(unless the contrary be proved) be sufficient evidence that it has made the

same default as regards all other Notes or Coupons which are then payable.

 

10

 

11            Trustee not Precluded

from Entering into Contracts

 

The Trustee

and any other person, whether or not acting for itself, may acquire, hold or

dispose of any Note, Coupon or other security (or any interest therein) of the

Issuer or any other person, may enter into or be interested in any contract or

transaction with any such person and may act on, or as depositary or agent for,

any committee or body of holders of any securities of any such person in each

case with the same rights as it would have had if the Trustee were not acting

as Trustee and need not account for any profit.

 

12           Modification

 

The Trustee

may agree without the consent of the Noteholders or Couponholders to any

modification to this Trust Deed of a formal, minor or technical nature or to

correct a manifest error. The Trustee may also so agree to any other

modification to this Trust Deed which is in its opinion not materially

prejudicial to the interests of the Noteholders, but such power does not extend

to any such modification as is mentioned in the proviso to paragraph 2 of

Schedule 3.

 

13           Appointment, Retirement

and Removal of the Trustee

 

13.1                        Appointment: The Issuer has the power of

appointing new trustees but no-one may be so appointed unless previously

approved by an Extraordinary Resolution. A trust corporation will at all times

be a Trustee and may be the sole Trustee. Any appointment of a new Trustee will

be notified by the Issuer to the Noteholders as soon as practicable.

 

13.2                        Retirement and Removal: Any Trustee may

retire at any time on giving at least three months’ written notice to the

Issuer without giving any reason or being responsible for any costs occasioned

by such retirement and the Noteholders may by Extraordinary Resolution remove

any Trustee provided that the retirement or removal of a sole trust corporation

will not be effective until a trust corporation is appointed as successor

Trustee. If a sole trust corporation gives notice of retirement or an

Extraordinary Resolution is passed for its removal, it will use all reasonable

endeavours to procure that another trust corporation be appointed as Trustee.

 

13.3                        Co-Trustees: The Trustee may, despite

Clause 13.1, by written notice to the Issuer appoint anyone to act as an

additional Trustee jointly with the Trustee:

 

13.3.1     if the

Trustee considers the appointment to be in the interests of the Noteholders

and/or the Couponholders

 

13.3.2              to conform with a legal requirement, restriction or condition in a

jurisdiction in which a particular act is to be performed or

 

13.3.3     to

obtain a judgment or to enforce a judgment or any provision of this Trust Deed

in any jurisdiction.

 

Subject to the

provisions of this Trust Deed the Trustee may confer on any person so appointed

such functions as it thinks fit. The Trustee may by written notice to the

Issuer and that person remove that person. At the Trustee’s request, the Issuer

will forthwith do all things as may be required to perfect such appointment or

removal and it irrevocably appoints the Trustee as its attorney in its name and

on its behalf to do so.

 

13.4                        Competence of a Majority of Trustees: If

there are more than two Trustees the majority of them will be competent to

perform the Trustee’s functions provided the majority includes a trust

corporation.

 

11

 

14           Couponholders

 

No notices

need be given to Couponholders. They will be deemed to have notice of the

contents of any notice given to Noteholders. Even if it has express notice to

the contrary, in exercising any of its functions by reference to the interests

of the Noteholders, the Trustee will assume that the holder of each Note is the

holder of all Coupons relating to it.

 

15           Currency Indemnity

 

15.1                        Currency of Account and Payment: Euro

or, in relation to Clause 7, U.S. dollars or such other currency as may be

agreed between the Issuer and the Trustee from time to time (the “Contractual

Currency”) is the sole currency of account and payment for all sums

payable by the Issuer under or in connection with this Trust Deed, the Notes

and the Coupons, including damages.

 

15.2                        Extent of discharge: An amount received

or recovered in a currency other than the Contractual Currency (whether as a

result of, or of the enforcement of, a judgment or order of a court of any

jurisdiction, in the winding-up or dissolution of the Issuer or otherwise), by

the Trustee or any Noteholder or Couponholder in respect of any sum expressed

to be due to it from the Issuer will only discharge the Issuer to the extent of

the Contractual Currency amount which the recipient is able to purchase with

the amount so received or recovered in that other currency on the date of that

receipt or recovery (or, if it is not practicable to make that purchase on that

date, on the first date on which it is practicable to do so).

 

15.3                        Indemnity: If that Contractual Currency

amount is less than the Contractual Currency amount expressed to be due to the

recipient under this Trust Deed, the Notes or the Coupons, the Issuer will

indemnify it against any loss sustained by it as a result. In any event, the

Issuer will indemnify the recipient against the cost of making any such

purchase.

 

15.4                        Indemnity separate: The indemnities in

this Clause 15 and in Clause 7.4 constitute separate and independent

obligations from the other obligations in this Trust Deed, will give rise to a

separate and independent cause of action, will apply irrespective of any indulgence

granted by the Trustee and/or any Noteholder or Couponholder and will continue

in full force and effect despite any judgment, order, claim or proof for a

liquidated amount in respect of any sum due under this Trust Deed, the Notes

and/or the Coupons or any other judgment or order.

 

16           Communications

 

Any

communication shall be by letter, telex or fax:

 

in the case of

the Issuer, to it at:

 

Ecolab Inc.

370 North

Wabasha Street 

St. Paul,

Minnesota

USA 55102-1390

 

Fax no. +1 651

293 2573

Attention General

Counsel

 

and in the

case of the Trustee, to it at:

 

JPMorgan Chase

Bank, London Branch

Trinity Tower

 

12

 

9 Thomas More

Street

London E1W 1YT

 

Telex no.

8954681 CMBG

Fax no. +44 20

7777 5410

Attention

Manager, Trust Administration

 

Communications

will take effect, in the case of delivery, when delivered or, in the case of

telex or fax, when despatched. Communications not by letter shall be confirmed

by letter but failure to send or receive that letter shall not invalidate the

original communication.

 

17           Further Issues

 

17.1                        Supplemental Trust Deed: If the Issuer

issues further securities as provided in the Conditions, the Issuer shall,

before their issue, execute and deliver to the Trustee a deed supplemental to

this Trust Deed containing such provisions (corresponding to any of the

provisions of this Trust Deed) as the Trustee may require.

 

17.2                        Meetings of Noteholders: If the Trustee

so directs, Schedule 3 shall apply equally to Noteholders and to holders of any

securities issued pursuant to the Conditions as if references in it to “Notes”

and “Noteholders” were also to such securities and their holders respectively.

 

18           Governing Law and

Jurisdiction

 

18.1        Governing

Law: This Trust Deed shall be governed by

and construed in accordance with English law.

 

18.2                        Jurisdiction: The courts of England are

to have jurisdiction to settle any disputes which may arise out of or in

connection with this Trust Deed, the Notes or the Coupons and accordingly any

legal action or proceedings arising out of or in connection with this Trust

Deed, the Notes or the Coupons (“Proceedings”) may be brought in such

courts. The Issuer irrevocably submits to the jurisdiction of such courts and

waives any objections to Proceedings in any such courts on the ground of venue

or on the ground that the Proceedings have been brought in an inconvenient

forum. This submission is for the benefit of each of the Trustee, the

Noteholders and the Couponholders and shall not limit the right of any of them

to take Proceedings in any other court of competent jurisdiction nor shall the

taking of Proceedings in any one or more jurisdictions preclude the taking of

Proceedings in any other jurisdiction (whether concurrently or not).

 

18.3                        Service of Process: The Issuer

irrevocably appoints The London Law Agency Limited of 84 Temple Chambers,

Temple Avenue, London EC4Y 0HP to receive, for it and on its behalf, service of

process in any Proceedings in England. Such service shall be deemed completed

on delivery to such process agent (whether or not it is forwarded to and

received by the Issuer). If for any reason such process agent ceases to be able

to act as such or no longer has an address in England the Issuer irrevocably

agrees to appoint a substitute process agent acceptable to the Trustee and

shall immediately notify the Trustee of such appointment. Nothing shall affect

the right to serve process in any other manner permitted by law.

 

13

 

Schedule 1

Form of Definitive Note

On the front:

 

	

  Denomination

  	

   

  	

  ISIN

  	

   

  	

  Series

  	

   

  	

  Certif. No.

  
	

  €[1,000/10,000/100,000]

  	

   

  	

  XS0142794238

  	

   

  	

   

  	

   

  	

   

  

 

ECOLAB INC.

(Incorporated in the State

of Delaware)

€300,000,000

5.375% Notes due 2007

 

This Note

forms part of a series designated as specified in the title (the “Notes”)

of Ecolab Inc. (the “Issuer”) constituted by the Trust Deed

referred to on the reverse hereof. The Notes are subject to, and have the

benefit of, that Trust Deed and the terms and conditions (the “Conditions”)

set out on the reverse hereof.

 

This is to

certify that the bearer of this Note is entitled on 7 February 2007 or on such

earlier date as the principal sum mentioned below may become repayable in

accordance with the Conditions, to the principal sum of:

 

€[1,000 (one

thousand euro) 10,000 (ten thousand euro) 100,000 (hundred thousand euro)]

together with interest on such principal sum from 7 February 2002 at the rate

of 5.375 per cent per annum payable in arrear on 7 February in each year,

subject to and in accordance with the Conditions.

 

This Note

shall not be valid or become obligatory for any purpose until authenticated by

or on behalf of the Principal Paying Agent.

 

In witness

whereof the Issuer has caused this Note to be signed in facsimile on its behalf.

 

Dated 7

February 2002

 

ECOLAB INC.

 

	

  By:

  
	

   

  
	

  [Vice

  President and Treasurer]

  

 

14

 

This Note is

authenticated by or on behalf of the Principal Paying Agent.

 

	

  By:

  
	

   

  
	

  Authorised

  Signatory

  

 

ANY UNITED

STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER

THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN

SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

15

 

On the back:

 

Terms and Conditions of the Notes

 

The issue of

the 300,000,000 5.375% Notes due 2007 (the “Notes”, which expression shall in

these Conditions, except where the context otherwise requires, include any

further series of Notes issued in accordance with Condition 14 and consolidated

and forming a single series herewith) of Ecolab Inc. (the “Issuer”) was

authorised by a resolution of the Board of Directors of the Issuer on 6th

December 2001. The Notes are constituted by a trust deed dated 7th  February

2002 (the “Trust Deed”) between the Issuer and JPMorgan Chase Bank, London

Branch as trustee, (the “Trustee”, which expression shall include all persons

for the time being the trustee or trustees under the Trust Deed) as Trustee for

the holders of the Notes (the “Noteholders”). These terms and conditions

include summaries of, and are subject to, the detailed provisions of the Trust

Deed, which includes the form of the Notes and the coupons relating to them

(the “Coupons”). Copies of the Trust Deed and of the paying agency agreement

(the “Paying Agency Agreement”) dated 7th  February 2002 between the

Issuer, the Trustee and the initial principal paying agent and the paying

agents named therein, are available for inspection during usual business hours

at the principal office of the Trustee (presently at Trinity Tower, 9 Thomas

More Street, London E1W 1YT) and at the specified offices of the principal

paying agent for the time being (the “Principal Paying Agent”) and the paying

agents for the time being (the “Paying Agents”, which expression shall include

the Principal Paying Agent). The Noteholders and the holders of the coupons

(whether or not attached to the relevant Notes) (the “Couponholders”) are

entitled to the benefit of, are bound by, and are deemed to have notice of, all

the provisions of the Trust Deed and are deemed to have notice of those

applicable to them of the Paying Agency Agreement.

 

1.             Form, Denomination

and Title

 

(a)          Form and denomination

 

The Notes are

serially numbered and in bearer form in the denominations of 1,000, 10,000 and

100,000 each with Coupons attached on issue. Notes of one denomination may not

be exchanged for Notes of any other denomination.

 

(b)          Title

 

Title to the

Notes and Coupons passes by delivery. The holder of any Note or Coupon will

(except as otherwise required by law) be treated as its absolute owner for all

purposes (whether or not it is overdue and regardless of any notice of

ownership, trust or any interest in it, any writing on it, or its theft or

loss) and no person will be liable for so treating the holder.

 

2.             Status

 

The Notes and

Coupons constitute (subject to Condition 3) unsecured and unsubordinated

obligations of the Issuer and shall at all times rank pari passu and without

any preference among themselves. The payment obligations of the Issuer under

the Notes and Coupons shall, save for such exceptions as may be provided by

applicable legislation and subject to Condition 3, at all times rank at least

equally with all its other present and future unsecured and unsubordinated

obligations.

 

3.             Negative Pledge

 

(a)          Restriction

 

So long as any

Note or Coupon remains outstanding (as defined in the Trust Deed) the Issuer

will not nor will it permit any Significant Subsidiary (as defined below) to

create, assume, incur or suffer to exist any mortgage, pledge, lien,

encumbrance, charge or security interest of any kind (each a “Lien”) on any

stock or indebtedness, whether owned on the date of the Trust Deed or

thereafter acquired, of any Significant Subsidiary to secure any Obligation (as

defined below) of the Issuer (other than the Notes), any Significant Subsidiary

or any other person, unless, at the same time or prior thereto, the Issuer’s

obligations under the Notes and the Coupons and 

 

16

 

the Trust Deed

(aa) are secured equally and rateably therewith or benefit from a guarantee or

indemnity in substantially identical terms thereto, as the case may be, in each

case to the satisfaction of the Trustee, or (bb) have the benefit of such other

security, guarantee, indemnity or other arrangement as the Trustee in its

absolute discretion shall deem to be not materially less beneficial to the

Noteholders or as shall be approved by an Extraordinary Resolution (as defined

in the Trust Deed) of the Noteholders, provided that these restrictions do not

apply to:

 

(i)            any Lien upon stock or indebtedness

of a Significant Subsidiary existing at the date of the Trust Deed;

 

(ii)           any Lien upon stock or indebtedness

of any corporation existing at the time it becomes a Significant Subsidiary;

 

(iii)                               any Lien existing or created upon stock or indebtedness of a

Significant Subsidiary at the time of the acquisition of such stock or

indebtedness; and

 

(iv)                              any extensions, renewals or replacement (or successive extensions,

renewals or replacements), in whole or in part, of any Lien referred to above,

provided that the principal amount of the Obligation secured thereby shall not

exceed the principal amount of the Obligation so secured at the time of such

extension, renewal or replacement, and provided further, that such Lien be

limited to all or such part of the stock or indebtedness which secured the Lien

so extended, renewed or replaced.

 

(b)          Definitions

 

For the

purposes of this Condition,

 

“Obligation”

means every obligation for money borrowed and every obligation evidenced by a

bond, note, debenture or other similar instrument;

 

“Significant

Subsidiary” means (1) any Subsidiary of the Issuer which has total assets that

constitute at least 10% of the Issuer’s total assets on a consolidated basis

determined as of the date of the Issuer’s most recent quarterly consolidated

balance sheet or (2) any Subsidiary of the Issuer which had net sales for the

three month period ending on the date of the most recent quarterly consolidated

statement of income of the Issuer that constituted at least 10% of the Issuer’s

net sales on a consolidated basis for such period; and

 

“Subsidiary”

means any corporation of which the Issuer directly or indirectly owns or

controls stock which under ordinary circumstances (not dependent upon the

happening of a contingency) has the voting power to elect a majority of the

board of directors of such corporation.

 

4.             Interest

 

The Notes bear

interest from 7th  February 2002 at the rate of 5.375% per annum, payable

annually in arrear on 7th  February in each year (each an “Interest

Payment Date”), commencing on 7th  February 2003. Each Note will cease to

bear interest from the due date for redemption unless, upon due presentation,

payment of principal is improperly withheld or refused. In such event it shall

continue to bear interest at such rate (both before and after judgment) until

whichever is the earlier of (a) the day on which all sums due in respect of

such Note up to that day are received by or on behalf of the relevant holder,

and (b) the day seven days after the Trustee or the Principal Paying Agent has

notified Noteholders of receipt of all sums due in respect of all the Notes up

to that seventh day (except to the extent that there is failure in the

subsequent payment to the relevant holders under these Conditions).

 

Where interest

is to be calculated in respect of a period which is equal to or shorter than an

Interest Period, the day-count fraction used will be the number of days in the

relevant period, from and including the date from which interest begins to

accrue to but excluding the date on which it falls due, divided by the number

of days in the Interest Period in which the relevant period falls (including the

first such day but excluding the last). The period beginning on 7th 

February 2002 and ending on the first Interest Payment Date and each successive

period beginning on an Interest Payment Date and ending on the next succeeding

Interest Payment Date is called an “Interest Period”.

 

17

 

5.             Redemption and

Purchase

 

(a)          Final redemption

 

Unless

previously redeemed, or purchased and cancelled, the Notes will be redeemed at

their principal amount on 7th  February 2007. The Notes may not be

redeemed at the option of the Issuer other than in accordance with this

Condition 5.

 

(b)          Redemption for

taxation reasons

 

The Notes may

be redeemed at the option of the Issuer in whole, but not in part, at any time,

on giving not less than 30 nor more than 60 days’ notice to the Noteholders

(which notice shall be irrevocable and shall be given in accordance with

Condition 15), at their principal amount (together with interest accrued to the

date fixed for redemption) if (i) the Issuer satisfies the Trustee immediately

prior to the giving of such notice that it has or will become obliged to pay

additional amounts as provided or referred to in Condition 7 as a result of any

change in, or amendment to, the laws or regulations of the United States or any

political subdivision or any authority thereof or therein having power to tax,

or any change in the application or official interpretation of such laws or

regulations, which change or amendment becomes effective on or after 6th 

February 2002, and (ii) such obligation cannot be avoided by the Issuer taking

reasonable measures available to it; provided that no such notice of redemption

shall be given earlier than 90 days prior to the earliest date on which the

Issuer would be obliged to pay such additional amounts were a payment in

respect of the Notes then due. Prior to the publication of any notice of

redemption pursuant to this paragraph, the Issuer shall deliver to the Trustee

(1) a certificate signed by an authorised officer of the Issuer stating that

the obligation referred to in (i) above cannot be avoided by the Issuer taking

reasonable measures available to it and the Trustee shall be entitled to accept

such certificate as sufficient evidence to the satisfaction of the condition

precedent set out in (ii) above, in which event it shall be conclusive and

binding on the Noteholders and the Couponholders.

 

(c)           Notice of redemption

 

All Notes in

respect of which any notice of redemption is given under this Condition shall

be redeemed on the date specified in such notice in accordance with this

Condition.

 

(d)          Purchase

 

The Issuer and

any of its Subsidiaries (as defined below) may at any time purchase Notes in

the open market or otherwise at any price (provided that they are purchased

together with all unmatured Coupons relating to them). Any purchase by tender

shall be made available to all Noteholders alike. The Notes so purchased, while

held by or on behalf of the Issuer or any such Subsidiary, shall not entitle

the holder to vote at any meetings of the Noteholders and shall not be deemed

to be outstanding for the purposes of calculating quorums at meetings of the

Noteholders or for the purposes of Condition 11(a). For the purpose of these

Conditions, “Subsidiary” shall mean any corporation of which the Issuer

directly or indirectly owns or controls stock which under ordinary

circumstances (not dependent upon the happening of a contingency) has the

voting power to elect a majority of the board of directors of such corporation.

 

(e)           Cancellation

 

All Notes so

redeemed or purchased and any unmatured Coupons attached to or surrendered with

them will be cancelled and may not be re-issued or resold.

 

6.             Payments

 

(a)          Method of Payment

 

Payments of

principal and interest will be made against presentation and surrender of Notes

or the appropriate Coupons (as the case may be and subject as provided below)

at the specified office of any Paying Agent outside the United States by Euro

cheque drawn on or (at the option of the payee) by transfer to a Euro account

outside

 

18

 

the United

States or any other account outside the United States to which Euro may be

credited or transferred maintained by the payee.

 

(b)          Payments subject to

laws

 

All payments

are subject in all cases to any applicable fiscal or other law, regulations and

directives in the place of payment, but without prejudice to the provisions of

Conditions 7 and 8. No commissions or expenses shall be charged to the

Noteholders or Couponholders in respect of such payments.

 

(c)           Surrender of

unmatured Coupons

 

Each Note

should be presented for redemption together with all unmatured Coupons relating

to it, failing which the amount of any such missing unmatured Coupon (or, in

the case of payment not being made in full, that proportion of the amount of

such missing unmatured Coupon which the sum of principal so paid bears to the

total principal amount due) will be deducted from the sum due for payment. Each

amount of principal so deducted will be paid in the manner mentioned above

against surrender of the relevant missing Coupon not later than 10 years after

the Relevant Date (as defined in Condition 7) for the relevant payment of

principal.

 

(d)          Payments on business

days

 

If the due

date for payment of any amount of principal or interest in respect of any Note

or Coupon is not at any place for payment a Business Day (as defined below),

then the holder thereof shall not be entitled to payment of the amount due at

that place of payment until the next following Business Day at that place of

payment and shall not be entitled to any further interest or other payment in

respect of any such delay.

 

(e)           Paying Agents

 

The initial

Paying Agents and their initial specified offices are listed below. The Issuer

reserves the right at any time to vary or terminate the appointment of any

Paying Agent and appoint additional or other paying agents, provided that it

will maintain (i) a Principal Paying Agent, (ii) Paying Agents having specified

offices in at least two major European cities approved by the Trustee

(including Luxembourg, so long as the Notes are listed on the Luxembourg Stock

Exchange and the rules of the Luxembourg Stock Exchange so require) and (iii) a

Paying Agent with a specified office in a European Union member state that will

not be obliged to withhold or deduct tax pursuant to any European Union

Directive on the taxation of savings implementing the conclusions of the ECOFIN

Council meeting of 26-27th November 2000 or any law implementing or complying

with, or introduced in order to conform to, such Directive. Notice of any

change in the Paying Agents or their specified offices will promptly be given

to the Noteholders in accordance with Condition 15.

 

In this

Condition,  “Business Day” means any day

(not being a Saturday or a Sunday) on which the Trans-European Automated

Real-Time Gross Settlement Express Transfer (TARGET) System is operating.

 

7.             Taxation

 

All payments

of principal and interest by or on behalf of the Issuer in respect of the Notes

and the Coupons shall be made free and clear of, and without withholding or

deduction for, any taxes, duties, assessments or governmental charges of

whatever nature imposed, levied, collected, withheld or assessed by or within

the United States or any authority therein or thereof having power to tax,

unless such withholding or deduction is required by law. In that event the

Issuer shall pay such additional amounts as will result in receipt by the

Noteholders and the Couponholders of such amounts as would have been received

by them had no such withholding or deduction been required, except that no such

additional amounts shall be payable in respect of any Note or Coupon presented

for payment:

 

(a)                                  by or on behalf of a holder who is liable to such taxes, duties,

assessments or governmental charges in respect of such Note or Coupon by reason

of his having some connection with the United States other than the mere

holding of the Note or Coupon; or

 

(b)                                 more than 30 days after the Relevant Date except to the extent that

the holder of it would have been entitled to such additional amounts on

presenting such Note or Coupon for payment on the last day of such period of 30

days; or

 

19

 

(c)                                  where such tax, duty, assessment or other governmental charge is an

estate, inheritance, gift, sales, transfer or personal property tax or any

similar tax assessment or governmental charge; or

 

(d)                                 where such tax, duty, assessment or other governmental charge would

not have been imposed but for the failure of the Noteholder or Couponholder to

comply with certification, information or other reporting requirements

concerning the nationality, residence or identity of such Noteholder or

Couponholder, if such compliance is required by statute or by regulation of the

United States or of any political subdivision or taxing authority thereof or

therein as a precondition to relief or exemption from such tax, duty,

assessment or other governmental charge; or

 

(e)                                  where such tax, duty, assessment or other governmental charge is

payable otherwise than by withholding from payments on or in respect of a Note

or Coupon; or

 

(f)                                    where such withholding or deduction is imposed on a payment to an

individual and is required to be made pursuant to any European Union Directive

on the taxation of savings implementing the conclusions of the ECOFIN Council

meeting of 26-27th November 2000 or any law implementing or complying with, or

introduced in order to conform to, such Directive; or

 

(g)                                 by or on behalf of a Noteholder or a Couponholder who would have

been able to avoid such withholding or deduction by presenting the relevant

Note or Coupon to another Paying Agent in a Member State of the European Union.

 

“Relevant

Date” means whichever is the later of (i) the date on which such payment first

becomes due and (ii) if the full amount payable has not been received by the

Principal Paying Agent or the Trustee on or prior to such due date, the date on

which, the full amount having been so received, notice to that effect shall

have been given to the Noteholders in accordance with Condition 15. Any

reference in these Conditions to principal and/or interest shall be deemed to

include any additional amounts which may be payable under this Condition or any

undertaking given in addition to or substitution for it under the Trust Deed.

 

If the Issuer

becomes subject at any time to any taxing jurisdiction other than the United

States, references in this Condition 7 to the United States shall be construed

as references to the United States and such other jurisdiction.

 

8.             Events of Default

 

If any of the

following events (each an “Event of Default”) occurs and is continuing and has

not been remedied or waived, the Trustee at its discretion may, and if so

requested by the holders of at least one-quarter in principal amount of the

Notes then outstanding or if so directed by an Extraordinary Resolution (as

defined in the Trust Deed) shall (subject in each case to it being indemnified

to its satisfaction), give notice to the Issuer that the Notes are, and they

shall immediately become, due and payable at their principal amount together

with accrued interest:

 

(a)           the Issuer fails to pay any interest

on any of the Notes when due and such failure continues for a period of 15

days; or

 

(b)                                 the Issuer does not perform or comply with any one or more of its

other obligations under the Notes or the Trust Deed which default is incapable

of remedy or, if in the opinion of the Trustee capable of remedy, is not in the

opinion of the Trustee remedied within 60 days after notice of such default

shall have been given to the Issuer by the Trustee; or

 

(c)                                  (i) any other present or future indebtedness of the Issuer or any of

its Significant Subsidiaries (as defined in Condition 3(b)) for or in respect

of moneys borrowed or raised becomes due and payable prior to its stated

maturity by reason of any actual default, event of default or the like

(howsoever described), or (ii) any such indebtedness is not paid when due or,

as the case may be, within any applicable grace period, or (iii) the Issuer or

any Significant Subsidiaries fails to pay when due (or within any applicable

grace period) any amount payable by it under any present or future guarantee

for, or indemnity in respect of, any moneys borrowed or raised, provided that

the aggregate amount of the relevant indebtedness, guarantees and indemnities

in respect of which one or more of the events mentioned above in this paragraph

(c) have occurred equals or exceeds U.S.$50,000,000 or its equivalent (as determined

by the Trustee); or

 

(d)                                 the entry by a court having jurisdiction in the premises of (i) a

decree or order for relief in respect of the Issuer in an involuntary case or

proceeding under any applicable bankruptcy, insolvency, reorganisation or other

similar law or (ii) a decree or order adjudging the Issuer a bankrupt or

insolvent, or approving as properly filed a petition seeking reorganisation,

arrangement, adjustment or composition of, or in respect 

 

20

 

of, the Issuer

under any applicable law, or appointing a custodian, receiver, liquidator,

assignee, trustee, sequestrator or other similar official of the Issuer or

substantially all of its property, or ordering the winding up or liquidation of

its affairs, and the continuance of any such decree or order for relief or any

such other decree or order unstayed and in effect for a period of 90

consecutive days; or

 

(e)                                  the commencement by the Issuer of a voluntary case or proceeding

under any applicable bankruptcy, insolvency, reorganisation or other similar

law or of any other case or proceeding to be adjudicated a bankrupt or

insolvent, or the consent by it to the entry of a decree or order for relief in

respect of the Issuer in an involuntary case or proceeding under any applicable

bankruptcy, insolvency, reorganisation or other similar law or to the

commencement of any bankruptcy or insolvency case or proceeding against it, or

the filing by it of a petition or answer or consent seeking reorganisation or relief

under any applicable law, or the consent by it to the filing of such petition

or to the appointment of or taking possession by a custodian, receiver,

liquidator, assignee, trustee, sequestrator or similar official of the Issuer

or of substantially all of its property, or the making by it of an assignment

for the benefit of creditors, or the admission by it in writing of its

inability to pay its debts generally as they become due, or the taking of

corporate action by the Issuer in furtherance of any such action,

 

provided that,

in the case of paragraph (b), the Trustee shall have certified that, in its

opinion, such event is materially prejudicial to the interests of the

Noteholders.

 

9.             Prescription

 

Claims in

respect of principal and interest will become void unless presentation for

payment is made as required by Condition 5 within a period of 10 years in the

case of principal and 5 years in the case of interest from the appropriate

Relevant Date.

 

10.          Replacement of Notes

and Coupons

 

If any Note or

Coupon is lost, stolen, mutilated, defaced or destroyed it may be replaced at

the specified office of the Principal Paying Agent subject to all applicable

laws and stock exchange or other relevant authority requirements, upon payment

by the claimant of the expenses incurred in connection with such replacement

and on such terms as to evidence, security, indemnity and otherwise as the

Issuer may require (provided that the requirement is reasonable in the light of

prevailing market practice). Mutilated or defaced Notes or Coupons must be

surrendered before replacements will be issued.

 

11.           Meetings of

Noteholders and Modification

 

(a)          Meetings of

Noteholders

 

The Trust Deed

contains provisions for convening meetings of Noteholders to consider matters

affecting their interests, including the sanctioning by Extraordinary

Resolution (as defined in the Trust Deed) of a modification of any of these

Conditions or any provisions of the Trust Deed. Such a meeting may be convened

by the Issuer and shall be convened by it upon the request in writing of

Noteholders holding not less than 10% in principal amount of the Notes for the

time being outstanding. The quorum for any meeting convened to consider an

Extraordinary Resolution will be two or more persons holding or representing a

clear majority in principal amount of the Notes for the time being outstanding,

or, at any adjourned meeting, two or more persons being or representing

Noteholders whatever the principal amount of the Notes held or represented,

unless the business of such meeting includes consideration of proposals, inter

alia, (i) to modify the maturity of the Notes or the dates on which interest is

payable in respect of the Notes, (ii) to reduce or cancel the principal amount

of or interest on or to vary the method of calculating the rate of interest on,

the Notes, (iii) to change the currency of payment of the Notes or the Coupons,

or (iv) to modify the provisions concerning the quorum required at any meeting

of Noteholders or the majority required to pass an Extraordinary Resolution in

which case the necessary quorum will be two or more persons holding or

representing not less than 75%, or at any adjourned meeting not less than 25%,

in principal amount of the Notes for the time being outstanding. Any Extraordinary

Resolution duly passed shall be binding on Noteholders (whether or not they

were present at the meeting at which such resolution was passed) and on all

Couponholders.

 

In addition, a

resolution in writing signed by or on behalf of all Noteholders who for the

time being are entitled to receive notice of a meeting of Noteholders will take

effect as if it was an Extraordinary Resolution. Such a 

 

21

 

resolution in

writing may be contained in one document or several documents in the same form,

each signed by or on behalf of one or more Noteholders.

 

(b)          Modification

 

The Trustee

may agree, without the consent of the Noteholders or Couponholders, to (i) any

modification of the Trust Deed which is of a formal, minor or technical nature

or is made to correct a manifest error, and (ii) any other modification (except

as mentioned in the Trust Deed), and any waiver or authorisation of any breach

or proposed breach, of any of the provisions of the Trust Deed which is in the

opinion of the Trustee not materially prejudicial to the interests of the

Noteholders. Any such modification, authorisation or waiver shall be binding on

the Noteholders and the Couponholders and, if the Trustee so requires, such

modification shall be notified to the Noteholders as soon as practicable.

 

(c)           Entitlement of the

Trustee

 

In connection

with the exercise of its functions (including but not limited to those referred

to in this Condition) the Trustee shall have regard to the interests of the

Noteholders as a class and shall not have regard to the consequences of such

exercise for individual Noteholders or Couponholders and the Trustee shall not

be entitled to require, nor shall any Noteholder or Couponholder be entitled to

claim, from the Issuer any indemnification or payment in respect of any tax

consequence of any such exercise upon individual Noteholders or Couponholders.

 

12.          Enforcement

 

At any time

after the Notes become due and payable, the Trustee may, at its discretion and

without further notice, institute such proceedings against the Issuer as it may

think fit to enforce the terms of the Trust Deed, the Notes and the Coupons,

but it need not take any such proceedings unless (a) it shall have been so

directed by an Extraordinary Resolution or so requested in writing by

Noteholders holding at least one-quarter in principal amount of the Notes

outstanding, and (b) it shall have been indemnified to its satisfaction. No

Noteholder or Couponholder may proceed directly against the Issuer unless the

Trustee, having become bound so to proceed, fails to do so within a reasonable

time and such failure is continuing.

 

13.          Indemnification of

Trustee

 

The Trust Deed

contains provisions for the indemnification of the Trustee and for its relief

from responsibility. The Trustee is entitled to enter into business

transactions with the Issuer and any entity related to the Issuer without

accounting for any profit.

 

14.          Further Issues

 

The Issuer may

from time to time without the consent of the Noteholders or Couponholders

create and issue further securities either having the same terms and conditions

as the Notes in all respects (or in all respects except for the first payment

of interest on them) and so that such further issue shall be consolidated and form

a single series with the outstanding securities of any series (including the

Notes) or upon such terms as the Issuer may determine at the time of their

issue. References in these Conditions to the Notes include (unless the context

requires otherwise) any other securities issued pursuant to this Condition and

forming a single series with the Notes. Any further securities forming a single

series with the outstanding securities of any series (including the Notes)

constituted by the Trust Deed or any deed supplemental to it shall, and any

other securities may (with the consent of the Trustee), be constituted by a

deed supplemental to the Trust Deed. The Trust Deed contains provisions for

convening a single meeting of the Noteholders and the holders of securities of

other series where the Trustee so decides.

 

15.          Notices

 

Notices to

Noteholders will be valid if published in a leading newspaper having general

circulation in London (which is expected to be the Financial Times) and (so

long as the Notes are listed on the Luxembourg Stock Exchange and the rules of

that stock exchange so require) in a leading newspaper having general

circulation in Luxembourg (which is expected to be the Luxemburger Wort) or, if

in the opinion of the Trustee such publication is not practicable, in an

English language newspaper of general circulation in Europe. Any such notice

shall be

 

22

 

deemed to have

been given on the date of such publication or, if published more than once or

on different dates, on the first date on which publication is made.

Couponholders will be deemed for all purposes to have notice of the contents of

any notice given to the Noteholders in accordance with this Condition.

 

16.          Contracts (Rights of

Third Parties) Act 1999

 

No person

shall have any right to enforce any term or condition of the Notes under the

Contracts (Rights of Third Parties) Act 1999.

 

17.          Governing Law

 

(a)          Governing Law

 

The Trust

Deed, the Notes and the Coupons are governed by and shall be construed in

accordance with English law.

 

(b)          Jurisdiction

 

The courts of

England are to have jurisdiction to settle any disputes which may arise out of

or in connection with the Notes the Coupons and accordingly any legal action or

proceedings arising out of or in connection with the Notes or the Coupons

(“Proceedings”) may be brought in such courts. The Issuer has in the Trust Deed

irrevocably submitted to the jurisdiction of such courts and waives any

objection to Proceedings in such courts whether on the ground of venue or on

the ground that the Proceedings have been brought in an inconvenient forum.

This submission is made for the benefit of each of the Noteholders and

Couponholders and shall not limit the right of any of them to take Proceedings

in any other court of competent jurisdiction nor shall the taking of

Proceedings in one or more jurisdictions preclude the taking of Proceedings in

any other jurisdiction (whether concurrently or not).

 

(c)           Agent for Service of

Process

 

The Issuer

irrevocably appoints The London Law Agency Limited of 84 Temple Chambers,

Temple Avenue, London EC4Y 0HP as its agent in England to receive service of

process in any Proceedings in England based on any of the Notes or the Coupons.

If for any reason the Issuer does not have such an agent in England, it will

promptly appoint a substitute process agent and notify the Noteholders of such

appointment. Nothing herein shall affect the right to serve process in any

other manner permitted by law.

 

23

 

PRINCIPAL

PAYING AGENT

JPMorgan Chase

Bank, London Branch 

at Trinity

Tower

9 Thomas More

Street

London E1W 1YT

 

PAYING AGENTS

J.P. Morgan

Bank Luxembourg S.A.

5 Rue Plaetis

L-2338

Luxembourg

Grand Duchy of

Luxembourg

 

24

 

Form of Coupon

On the front:

 

ECOLAB INC.

 

€300,000,000

5.375 per cent Notes due 2007

 

Coupon for

€[1,000,10,000,100,000].

 

This Coupon is

payable to bearer (subject to the Conditions endorsed on the Note to which this

Coupon relates, which shall be binding upon the holder of this Coupon whether

or not it is for the time being attached to such Note) at the specified offices

of the Paying Agents set out on the reverse hereof (or any further or other

Paying Agents or specified offices duly appointed or nominated and notified to

the Noteholders).

 

If the Note to

which this Coupon relates shall have become due and payable before the maturity

date of this Coupon, this Coupon shall become void and no payment shall be made

in respect of it.

 

ANY UNITED

STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER

THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN

SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

ECOLAB INC.

 

	

  By:

  
	

   

  
	

  [Vice

  President and Treasurer]

  

 

	

  Cp No.

  	

   

  	

  Denomination

  	

   

  	

  ISIN

  	

   

  	

  Series

  	

   

  	

  Certif. No.

  
	

   

  	

   

  	

  €[1,000/10,000/100,000]

  	

   

  	

  XS0142794238

  	

   

  	

   

  	

   

  	

   

  

 

On the back:

 

PRINCIPAL

PAYING AGENT

JPMorgan Chase

Bank, London Branch 

at Trinity

Tower

9 Thomas More

Street

London E1W 1YT

 

PAYING AGENTS

J.P. Morgan

Bank Luxembourg S.A.

5 Rue Plaetis

L-2338

Luxembourg

Grand Duchy of

Luxembourg

 

25

 

Schedule 2

Part 1

Form of Temporary Global Note

ISIN:

XS0142794238

 

ECOLAB INC.

(Incorporated in the state

of Delaware)

€300,000,000

5.375 per cent Notes due

2007

 

Temporary Global Note

 

This is to

certify that the bearer is entitled to the sum of

 

THREE

HUNDRED MILLION EURO (€300,000,000)

 

on 7 February

2007 (or such earlier date as such principal sum may become payable in

accordance with the Trust Deed (as defined below) and with the terms and

conditions (the “Conditions”) of the Notes designated above (the “Notes”)

set out in Schedule 1 to the trust deed dated 7 February 2002 (the “Trust Deed”)

between Ecolab Inc. (the “Issuer”) and JPMorgan Chase Bank, London

Branch as trustee) upon presentation and surrender of this Temporary Global

Note and to interest at the rate of 5.375 per cent per annum in arrear on 7

February in each year in accordance with the Conditions.

 

On or after 20

March 2002 (the “Exchange Date”) this Temporary Global Note may be exchanged in

whole or part (free of charge to the holder) by its presentation and, on

exchange in full, surrender to or to the order of the Principal Paying Agent

for interests in a permanent Global Note (the “Permanent Global Note”) in

bearer form in an aggregate principal amount equal to the principal amount of

this Temporary Global Note submitted for exchange with respect to which there

shall be presented to the Principal Paying Agent a certificate dated no earlier

than the Exchange Date from Euroclear Bank S.A./N.V. as operator of the Euroclear

System (“Euroclear”) or Clearstream Banking, société

anonyme (“Clearstream,

Luxembourg”) substantially to the following effect:

 

“CERTIFICATE

ECOLAB INC.

€300,000,000

5.375 per cent Notes due

2007

Common Code 014279423 ISIN

XS0142794238 

(the “Notes”)

 

This is to

certify that, based solely on certificates we have received in writing, by

tested telex or by electronic transmission from member organisations appearing

in our records as persons being entitled to a portion of the principal amount

set out below (our “Member Organisations”) substantially to

the effect set out in the temporary global Note in respect of the Notes, as of

the date hereof, €300,000,000 principal amount of the Notes (1) is owned by

persons that are not citizens or residents of the United States, domestic partnerships,

domestic corporations or any estate or trust the income of which is subject to

United States federal income taxation regardless of its source (“United

States persons”), (2) is owned by United States persons that (a) are

foreign branches of United States financial institutions (as defined in U.S.

Treasury Regulations Section 1.165-12(c)(1)(iv) (“financial institutions”))

purchasing for their own account or for resale, or (b) acquired the Notes

through foreign branches of United States financial institutions and who hold

the Notes through such United States financial institutions on the date hereof

(and in either case (a) or (b), each such United States financial

 

26

 

institution

has agreed, on its own behalf or through its agent, that we may advise the

Issuer or the Issuer’s agent that it will comply with the requirements of

Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as

amended, and the regulations thereunder), or (3) is owned by United States or

foreign financial institutions for purposes of resale during the restricted

period (as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7),

and to the further effect that United States or foreign financial institutions

described in clause (3) above (whether or not also described in clause (1) or

(2)) have certified that they have not acquired the Notes for purposes of

resale directly or indirectly to a United States person or to a person within

the United States or its possessions.

 

We further

certify (1) that we are not making available herewith for exchange (or, if

relevant, exercise of any rights or collection of any interest) any portion of

such temporary global Note excepted in such certificates and (2) that as of the

date hereof we have not received any notification from any of our Member

Organisations to the effect that the statements made by such Member

Organisation with respect to any portion of the part submitted herewith for

exchange (or, if relevant, exercise of any rights or collection of any

interest) are no longer true and cannot be relied upon as of the date hereof.

 

We understand

that this certificate is required in connection with certain tax laws of the

United States. In connection therewith, if administrative or legal proceedings

are commenced or threatened in connection with which this certificate is or

would be relevant, we irrevocably authorise you to produce this certificate to

any interested party in such proceedings.

 

Yours

faithfully

 

[EUROCLEAR BANK S.A./N.V. as operator of the Euroclear System]

or [CLEARSTREAM BANKING, SOCIÉTÉ ANONYME]

 

	

  By:

  	

  Dated:

  	

  "

  

 

Any person

appearing in the records of Euroclear or Clearstream, Luxembourg as entitled to

an interest in this Temporary Global Note may require the exchange of an

appropriate part of this Temporary Global Note for an equivalent interest in

the Permanent Global Note by delivering or causing to be delivered to Euroclear

or Clearstream, Luxembourg a certificate dated not more than 15 days before the

Exchange Date in substantially the following form (copies of which will be

available at the office of Euroclear in Brussels and Clearstream, Luxembourg in

Luxembourg):

 

27

 

“CERTIFICATE

ECOLAB INC.

€300,000,000

5.375 per cent Notes due

2007

Common Code 014279423 ISIN

XS0142794238 (the “Notes”)

 

To:                 Euroclear Bank S.A./N.V.

as operator of the Euroclear System or Clearstream

Banking, société anonyme

 

This is to

certify that as of the date hereof, and except as set out below, the Notes held

by you for our account (1) are owned by person(s) that are not citizens or

residents of the United States, domestic partnerships, domestic corporations or

any estate or trust the income of which is subject to United States federal

income taxation regardless of its source (“United States person(s)”), (2) are owned by

United States person(s) that (a) are foreign branches of United States

financial institutions (as defined in U.S. Treasury Regulations Section

1.165-12(c)(1)(iv) (“financial institutions”)) purchasing for

their own account or for resale, or (b) acquired the Notes through foreign

branches of United States financial institutions and who hold the Notes through

such United States financial institutions on the date hereof (and in either

case (a) or (b), each such United States financial institution hereby agrees,

on its own behalf or through its agent, that you may advise the Issuer or the

Issuer’s agent that it will comply with the requirements of Section

165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended, and

the regulations thereunder), or (3) are owned by United States or foreign

financial institution(s) for purposes of resale during the restricted period

(as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and

in addition if the owner of the Notes is a United States or foreign financial

institution described in clause (3) above (whether or not also described in

clause (1) or (2)) this is to further certify that such financial institution

has not acquired the Notes for purposes of resale directly or indirectly to a

United States person or to a person within the United States or its

possessions.

 

As used

herein, “United

States” means the United States of America (including the States and

the District of Columbia) and its “possessions” include Puerto Rico, the U.S.

Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana

Islands.

 

We undertake

to advise you promptly by tested telex on or prior to that date on which you

intend to submit your certificate relating to the Notes held by you for our

account in accordance with your documented procedures if any applicable

statement herein is not correct on such date, and in the absence of any such

notification it may be assumed that this certificate applies as of such date.

 

This

certificate excepts and does not relate to €[•] principal amount of such interest in the Notes in respect of which

we are not able to certify and as to which we understand exchange for an

equivalent interest in the Global Note (or, if relevant, exercise of any rights

or collection of any interest) cannot be made until we do so certify.

 

We understand

that this certificate is required in connection with certain tax laws of the

United States. In connection therewith, if administrative or legal proceedings

are commenced or threatened in connection with which this certificate is or

would be relevant, we irrevocably authorise you to produce this certificate to

any interested party in such proceeding.

 

Dated:

 

By:

 

28

 

[Name of

person giving certificate]

As, or as

agent for the beneficial owner(s) of the above Notes to which this certificate

relates.”

 

Upon any

exchange of a part of this Temporary Global Note for an equivalent interest in

the Permanent Global Note, the portion of the principal amount hereof so

exchanged shall be endorsed by or on behalf of the Principal Paying Agent in

the Schedule hereto, whereupon the principal amount hereof shall be reduced for

all purposes by the amount so exchanged and endorsed.

 

The Permanent

Global Note will be exchangeable in accordance with its terms for definitive

Notes (the “Definitive Notes”) in bearer form with Coupons attached.

 

This Temporary

Global Note is subject to the Conditions and the Trust Deed and until the whole

of this Temporary Global Note shall have been exchanged for equivalent

interests in the Permanent Global Note its holder shall be entitled to the same

benefits as if he were the holder of the Permanent Global Note for interests in

which it may be exchanged (or the relevant part of it as the case may be)

except that (unless exchange of this Temporary Global Note for the relevant

interest in the Permanent Global Note shall be improperly withheld or refused

by or on behalf of the Issuer) no person shall be entitled to receive any

payment on this Temporary Global Note.

 

This Temporary

Global Note shall not be valid or become obligatory for any purpose until

authenticated by or on behalf of the Principal Paying Agent.

 

This Temporary

Global Note shall be governed by and construed in accordance with English law.

In witness whereof the Issuer has caused this Temporary Global Note to be

signed on its behalf.

 

Dated 7

February 2002

 

ECOLAB INC.

 

	

  By:

  
	

   

  

This Temporary

Global Note is authenticated by or on behalf of the Principal Paying Agent.

 

	

  By:

  
	

   

  

Authorised

Signatory

 

ANY UNITED

STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER

THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN

SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

29

 

Schedule of Exchanges for

Interests in the Permanent Global Note

 

The following

exchanges of an interest in this Temporary Global Note for an interest in the

Permanent Global Note have been made:

 

	

  Date of Exchange

  	

   

  	

  Amount of decrease in principal amount of this Temporary Global Note

  	

   

  	

  Principal amount of this Temporary Global Note following such decrease

  	

   

  	

  Notation made by or on behalf of the Principal Paying Agent

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

30

 

Schedule 2

Part 2

Form of Permanent Global Note

ISIN:

XS0142794238

 

ECOLAB INC.

(Incorporated

in the state of Delaware)

€300,000,000

5.375 per cent Notes due

2007

 

Global Note

 

This is to

certify that the bearer is entitled to a principal sum not exceeding

 

THREE

HUNDRED MILLION EURO (€300,000,000)

 

On 7 February

2007 (or such earlier date as such principal sum may become payable in

accordance with the terms and conditions (the “Conditions”) of the Notes

designated above (the “Notes”) set out in Schedule 1 to the Trust

Deed dated 7 February 2002 (the “Trust Deed”) between Ecolab Inc. (the “Issuer”)

and JPMorgan Chase Bank, London Branch as trustee (the “Trustee”)) upon presentation

and surrender of this Permanent Global Note and to interest at the rate of

5.375 per cent per annum in arrear on 7 February in each year in accordance

with the Conditions.

 

The aggregate

principal amount from time to time of this Permanent Global Note shall be that

amount not exceeding €300,000,000 as shall be shown by the latest entry in the

fourth column of Schedule A hereto, which shall be completed by or on behalf of

the Principal Paying Agent upon exchange of the whole or a part of the

Temporary Global Note initially representing the Notes for a corresponding

interest herein or upon the redemption or purchase and cancellation of Notes

represented hereby or exchanged for Definitive Notes as described below.

 

This Permanent

Global Note is exchangeable in whole but not in part (free of charge to the

holder) for the Definitive Notes described below (1) if this Permanent Global

Note is held on behalf of Euroclear or Clearstream, Luxembourg or the

Alternative Clearing System (each as defined under “Notices” below) and any such

clearing system is closed for business for a continuous period of 14 days

(other than by reason of holidays, statutory or otherwise) or announces an

intention permanently to cease business or does in fact do so, (2) if any

holder of an interest in this Permanent Global Note makes a written request for

such exchange to the Principal Paying Agent or (3) if the Issuer would suffer a

material disadvantage in respect of the Notes as a result of a change in the

laws or regulations (taxation or otherwise) of any jurisdiction referred to in

Condition 7 which would not be suffered were the Notes in definitive form and a

certificate to such effect signed by an authorised officer of the Issuer is

delivered to the Trustee by the Issuer) giving notice to the Principal Paying

Agent and the Noteholders, of its intention to exchange this Permanent Global

Note for Definitive Notes on or after the Exchange Date specified in the

notice.

 

On or after

the Exchange Date (as defined below) the holder of this Permanent Global Note

may surrender this Permanent Global Note to or to the order of the Principal

Paying Agent. In exchange for this Permanent Global Note, the Issuer shall

deliver, or procure the delivery of, an equal aggregate principal amount of

duly executed and authenticated Definitive Notes (having attached to them all

Coupons in respect of interest which has not already been paid on this

Permanent Global Note) security printed in accordance with any applicable legal

and stock exchange requirements and in or substantially in the form set out in

Schedule 1 to the Trust Deed. On exchange in full of the Global 

 

31

 

Note, the

Issuer will procure that it is cancelled. Exchange will be made in accordance

with the rules and regulations of Euroclear and/or Clearstream, Luxembourg, as

applicable.

 

“Exchange

Date” means a day falling not less than 60 days after that on which

the notice requiring exchange is given and on which banks are open for business

in the city in which the specified office of the Principal Paying Agent is

located and except in the case of exchange pursuant to (1) above in the cities

in which Euroclear and Clearstream, Luxembourg or, if relevant, the Alternative

Clearing System (each as defined under “Notices” below) are located.

 

Except as

otherwise described herein, this Permanent Global Note is subject to the

Conditions and the Trust Deed and, until it is exchanged for Definitive Notes,

its holder shall be entitled to the same benefits as if it were the holder of

the Definitive Notes for which it may be exchanged and as if such Definitive

Notes had been issued on the date of this Permanent Global Note.

 

The Conditions

shall be modified with respect to Notes represented by this Permanent Global

Note by the following provisions:

 

Payments

 

Principal and

interest in respect of this Permanent Global Note shall be paid to its holder

against presentation and (if no further payment falls to be made on it)

surrender of it to or to the order of the Principal Paying Agent in respect of

the Notes (or to or to the order of such other Paying Agent as shall have been

notified to the Noteholders for this purpose) which shall endorse such payment

or cause such payment to be endorsed in the appropriate Schedule hereto (such

endorsement being prima facie evidence that the payment in question has been

made). References in the Conditions to Coupons and Couponholders shall be

construed accordingly. No person shall however be entitled to receive any

payment on this Permanent Global Note falling due after the Exchange Date,

unless exchange of this Permanent Global Note for Definitive Notes is

improperly withheld or refused by or on behalf of the Issuer.

 

Notices

 

So long as

this Permanent Global Note is held on behalf of Euroclear Bank S.A./N.V.

as operator of the Euroclear System (“Euroclear”)

or Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) or such other

clearing system as shall have been approved by the Trustee (the “Alternative

Clearing System”), notices required to be given to Noteholders may

be given by their being delivered to Euroclear and Clearstream, Luxembourg or,

as the case may be, the Alternative Clearing System, rather than by publication

as required by the Conditions, except that, so long as the Notes are listed on

the Luxembourg Stock Exchange and the rules of that exchange so require,

notices shall also be published in a leading newspaper having general

circulation in Luxembourg (which is expected to be the Luxemburger Wort).

 

Prescription

 

Claims against

the Issuer in respect of principal and interest in respect of this Permanent

Global Note will become void unless it is presented for payment within a period

of 10 years (in the case of principal) and 5 years (in the case of interest)

from the appropriate Relevant Date (as defined in Condition 7).

 

Meetings

 

The holder

hereof shall (unless this Permanent Global Note represents only one Note) be

treated as being two persons for the purposes of any quorum requirements of, or

the right to demand a poll at, a meeting of Noteholders and, at any such

meeting, as having one vote in respect of each €1,000 principal amount of Notes

for which this Permanent Global Note may be exchanged.

 

32

 

Purchase and Cancellation

 

Cancellation

of any Note represented by this Permanent Global Note which is required by the

Conditions to be cancelled will be effected by reduction in the principal

amount of this Permanent Global Note on its presentation to or to the order of

the Principal Paying Agent for notation in Schedule A. Notes may only be

purchased by the Issuer or any of its Subsidiaries if (where they should be

cancelled in accordance with the Conditions) when they are purchased together with

the right to receive interest therein.

 

Trustee’s Powers

 

In considering

the interests of Noteholders in circumstances where this Permanent Global Note

is held on behalf of any one or more of Euroclear, Clearstream, Luxembourg and

an Alternative Clearing System, the Trustee may, to the extent it considers it

appropriate to do so in the circumstances, (a) have regard to such information

as may have been made available to it by or on behalf of the relevant clearing

system or its operator as to the identity of its accountholders (either

individually or by way of category) with entitlements in respect of this

Permanent Global Note and (b) consider such interests on the basis that such

accountholders were the holder of this Permanent Global Note.

 

This Permanent

Global Note shall not be valid or become obligatory for any purpose until

authenticated by or on behalf of the Principal Paying Agent.

 

This Permanent

Global Note is governed by and shall be construed in accordance with English

law.

 

In witness

whereof the Issuer has caused this Permanent Global Note to be signed on its

behalf.

 

Dated 7

February 2002

 

ECOLAB INC.

 

	

  By:

  
	

   

  

This Permanent

Global Note is authenticated by or on behalf of the Principal Paying Agent.

 

	

  By:

  
	

   

  
	

  Authorised

  Signatory

  

 

ANY UNITED STATES

PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE

UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS

165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

33

 

Schedule A

Principal Amount of this Permanent Global Note

 

The aggregate

principal amount of this Permanent Global Note is as shown by the latest entry

made by or on behalf of the Principal Paying Agent in the fourth column below.

Increases in the principal amount of this Permanent Global Note following

exchanges of a part of the Temporary Global Note for interests in this

Permanent Global Note and reductions in the principal amount of this Permanent

Global Note following redemption or the purchase and cancellation of Notes are

entered in the second and third columns below.

 

	

  Date

  	

   

  	

  Reason for change in the principal amount of this Permanent Global Note

  	

   

  	

  Amount of such change

  	

   

  	

  Initial principal amount and principal amount of this Permanent Global

  Note following such change

  	

   

  	

  Notation made by or on behalf of the Principal Paying Agent (other than

  in respect of the initial principal amount)

  
	

  7 February

  2002

  	

   

  	

  Not

  applicable

  	

   

  	

  Not

  applicable

  	

   

  	

  € Zero

  	

   

  	

  Not

  applicable

  

 

34

 

Schedule B

Interest Payments in respect of this Permanent Global Note

 

The following

payments of interest in respect of this Permanent Global Note and the Notes

represented by this Permanent Global Note have been made:

 

	

  Date made

  	

   

  	

  Amount of interest due and payable

  	

   

  	

  Amount of interest paid

  	

   

  	

  Notation made by or on behalf of the Principal Paying Agent

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

35

 

Schedule 3

Provisions for Meetings of Noteholders

 

Interpretation

 

1              In this Schedule:

 

1.1          references to a meeting are to a meeting of Noteholders and include,

unless the context otherwise requires, any adjournment

 

1.2          “agent” means a holder of a voting certificate or a proxy for a

Noteholder

 

1.3          “block voting instruction” means an instruction issued in

accordance with paragraphs 8 to 14

 

1.4                               “Extraordinary Resolution” means a resolution passed at a

meeting duly convened and held in accordance with this Trust Deed by a majority

of at least 75 per cent of the votes cast

 

1.5          “voting certificate” means a certificate issued in accordance

with paragraphs 5, 6, 7 and 14 and

 

1.6                               references to persons representing a proportion of the Notes are to

Noteholders or agents holding or representing in the aggregate at least that

proportion in principal amount of the Notes for the time being outstanding.

 

Powers of meetings

 

2                                         A meeting shall, subject to the Conditions and without prejudice to

any powers conferred on other persons by this Trust Deed, have power by

Extraordinary Resolution:

 

2.1                               to sanction any proposal by the Issuer or the Trustee for any

modification, abrogation, variation or compromise of, or arrangement in respect

of, the rights of the Noteholders and/or the Couponholders against the Issuer,

whether or not those rights arise under this Trust Deed

 

2.2                               to sanction the exchange or substitution for the Notes of, or the

conversion of the Notes into, shares, Notes or other obligations or securities

of the Issuer or any other entity

 

2.3          to assent to any modification of this Trust Deed, the Notes or the

Coupons proposed by the Issuer or the Trustee

 

2.4          to authorise anyone to concur in and do anything necessary to carry

out and give effect to an Extraordinary Resolution

 

2.5          to give any authority, direction or sanction required to be given by

Extraordinary Resolution

 

2.6                               to appoint any persons (whether Noteholders or not) as a committee

or committees to represent the Noteholders’ interests and to confer on them any

powers or discretions which the Noteholders could themselves exercise by

Extraordinary Resolution

 

2.7          to approve a proposed new Trustee and to remove a Trustee

 

2.8                               to approve the substitution of any entity for the Issuer (or any

previous substitute) as principal debtor or guarantor under this Trust Deed and

 

2.9                               to discharge or exonerate the Trustee from any liability in respect

of any act or omission for which it may become responsible under this Trust

Deed, the Notes or the Coupons

 

provided that

the special quorum provisions in paragraph 19 shall apply to any Extraordinary

Resolution (a “special quorum resolution”) for the purpose of sub-paragraph

2.2 or 2.8 or for

 

36

 

the purpose of

making a modification to this Trust Deed, the Notes or the Coupons which would

have the effect of:

 

(i)            modifying the maturity of the Notes

or the dates on which interest is payable on them or

 

(ii)                                  reducing or cancelling the principal amount of, or interest on, or

varying the method of calculating the rate of interest on, the Notes or

 

(iii)          changing the currency of payment of

the Notes or the Coupons or

 

(iv)                              modifying the provisions in this Schedule concerning the quorum

required at any meeting of Noteholders or the majority required to pass an

Extraordinary Resolution or

 

(v)           amending this proviso.

 

Convening a meeting

 

3                                         The Issuer or the Trustee may at any time convene a meeting. If it

receives a written request by Noteholders holding at least 10 per cent in

principal amount of the Notes for the time being outstanding and is indemnified

to its satisfaction against all costs and expenses, the Trustee shall convene a

meeting. Every meeting shall be held at a time and place approved by the

Trustee.

 

4                                         At least 21 days’ notice (exclusive of the day on which the notice

is given and of the day of the meeting) shall be given to the Noteholders. A

copy of the notice shall be given by the party convening the meeting to the

other parties. The notice shall specify the day, time and place of meeting and,

unless the Trustee otherwise agrees, the nature of the resolutions to be

proposed and shall explain how Noteholders may appoint proxies or

representatives, obtain voting certificates and use block voting instructions

and the details of the time limits applicable.

 

Arrangements for voting

 

5                                         If a holder of a Note wishes to obtain a voting certificate in

respect of it for a meeting, he must deposit it for that purpose at least 48

hours before the time fixed for the meeting with a Paying Agent or to the order

of a Paying Agent with a bank or other depositary nominated by the Paying Agent

for the purpose. The Paying Agent shall then issue a voting certificate in

respect of it.

 

6              A voting certificate shall:

 

6.1          be a document in the English language

 

6.2          be dated

 

6.3          specify the meeting concerned and the serial numbers of the Notes

deposited and

 

6.4          entitle, and state that it entitles, its bearer to attend and vote

at that meeting in respect of those Notes.

 

7                                         Once a Paying Agent has issued a voting certificate for a meeting in

respect of a Note, it shall not release the Note until either:

 

7.1          the meeting has been concluded or

 

7.2          the voting certificate has been surrendered to the Paying Agent.

 

8                                         If a holder of a Note wishes the votes attributable to it to be

included in a block voting instruction for a meeting, then, at least 48 hours

before the time fixed for the meeting, (i) he must deposit the Note for that

purpose with a Paying Agent or to the order of a Paying Agent with a bank or

other depositary nominated by the Paying Agent for the purpose and (ii) he or a

duly authorised

 

37

 

person on his

behalf must direct the Paying Agent how those votes are to be cast. The Paying

Agent shall issue a block voting instruction in respect of the votes

attributable to all Notes so deposited.

 

9              A block voting instruction shall:

 

9.1          be a document in the English language

 

9.2          be dated

 

9.3          specify the meeting concerned

 

9.4                               list

the total number and serial numbers of the Notes deposited, distinguishing with

regard to each resolution between those voting for and those voting against it

 

9.5                               certify that such list is in accordance with Notes deposited and

directions received as provided in paragraphs 8, 11 and 14 and

 

9.6                               appoint a named person (a “proxy”) to vote at that meeting in respect

of those Notes and in accordance with that list. A proxy need not be a

Noteholder.

 

10                                  Once a Paying Agent has issued a block voting instruction for a

meeting in respect of the votes attributable to any Notes:

 

10.1                        it shall not release the Notes, except as provided in paragraph 11,

until the meeting has been concluded and

 

10.2                        the directions to which it gives effect may not be revoked or

altered during the 48 hours before the time fixed for the meeting.

 

11                                   If the receipt for a Note deposited with a Paying Agent in

accordance with paragraph 8 is surrendered to the Paying Agent at least 48

hours before the time fixed for the meeting, the Paying Agent shall release the

Note and exclude the votes attributable to it from the block voting

instruction.

 

12                                  Each block voting instruction shall be deposited at least 24 hours

before the time fixed for the meeting at such place as the Trustee shall

designate or approve, and in default it shall not be valid unless the chairman

of the meeting decides otherwise before the meeting proceeds to business. If

the Trustee requires, a notarially certified copy of each block voting

instruction shall be produced by the proxy at the meeting but the Trustee need

not investigate or be concerned with the validity of the proxy’s appointment.

 

13                                  A vote cast in accordance with a block voting instruction shall be

valid even if it or any of the Noteholders’ instructions pursuant to which it

was executed has previously been revoked or amended, unless written intimation

of such revocation or amendment is received from the relevant Paying Agent by

the Issuer or the Trustee at its registered office or by the chairman of the

meeting in each case at least 24 hours before the time fixed for the meeting.

 

14                                  No Note may be deposited with or to the order of a Paying Agent at

the same time for the purposes of both paragraph 5 and paragraph 8 for the same

meeting.

 

Chairman

 

15                                  The chairman of a meeting shall be such person as the Trustee may

nominate in writing, but if no such nomination is made or if the person

nominated is not present within 15 minutes after 

 

38

 

the time fixed

for the meeting the Noteholders or agents present shall choose one of their

number to be chairman, failing which the Issuer may appoint a chairman.

 

16                                  The chairman may, but need not, be a Noteholder or agent. The

chairman of an adjourned meeting need not be the same person as the chairman of

the original meeting.

 

Attendance

 

17           The following may attend and speak at a meeting:

 

17.1        Noteholders and agents

 

17.2        the chairman

 

17.3        the Issuer and the Trustee (through their respective

representatives) and their respective financial and legal advisers.

 

                No-one else may attend or speak.

 

Quorum and Adjournment

 

18                                  No business (except choosing a chairman) shall be transacted at a

meeting unless a quorum is present at the commencement of business. If a quorum

is not present within 15 minutes from the time initially fixed for the meeting,

it shall, if convened on the requisition of Noteholders or if the Issuer and

the Trustee agree, be dissolved. In any other case it shall be adjourned until

such date, not less than 14 nor more than 42 days later, and time and place as

the chairman may decide. If a quorum is not present within 15 minutes from the

time fixed for a meeting so adjourned, the meeting shall be dissolved.

 

19           Two or more Noteholders or agents present in person shall be a

quorum:

 

19.1                        in the cases marked “No minimum proportion” in the table below,

whatever the proportion of the Notes which they represent

 

19.2        in any other case, only if they represent the proportion of the

Notes shown by the table below.

 

	

  Column 1

  	

   

  	

  Column 2

  	

   

  	

  Column 3

  
	

  Purpose of meeting

  	

   

  	

  Any meeting

  except one 

  referred to in column 3

  	

   

  	

  Meeting

  previously adjourned 

  through want of a quorum

  
	

   

  	

   

  	

  Required

  proportion

  	

   

  	

  Required

  proportion

  
	

  To pass a

  special quorum resolution

  	

   

  	

  75 per cent

  	

   

  	

  25 per cent

  
	

  To pass any

  other 

  Extraordinary Resolution

  	

   

  	

  A clear

  majority

  	

   

  	

  No minimum

  proportion

  
	

  Any other

  purpose

  	

   

  	

  10 per cent

  	

   

  	

  No minimum

  proportion

  

 

20                                  The chairman may with the consent of (and shall if directed by) a

meeting adjourn the meeting from time to time and from place to place. Only

business which could have been transacted at the original meeting may be

transacted at a meeting adjourned in accordance with this paragraph or

paragraph 18.

 

39

 

21                                  At least 10 days’ notice of a meeting adjourned through want of a

quorum shall be given in the same manner as for an original meeting and that

notice shall state the quorum required at the adjourned meeting. No notice

need, however, otherwise be given of an adjourned meeting.

 

Voting

 

22                                  Each question submitted to a meeting shall be decided by a show of

hands unless a poll is (before, or on the declaration of the result of, the

show of hands) demanded by the chairman, the Issuer, the Trustee or one or more

persons representing 2 per cent of the Notes.

 

23                                  Unless a poll is demanded a declaration by the chairman that a

resolution has or has not been passed shall be conclusive evidence of the fact

without proof of the number or proportion of the votes cast in favour of or

against it.

 

24                                  If a poll is demanded, it shall be taken in such manner and (subject

as provided below) either at once or after such adjournment as the chairman

directs. The result of the poll shall be deemed to be the resolution of the

meeting at which it was demanded as at the date it was taken. A demand for a

poll shall not prevent the meeting continuing for the transaction of business

other than the question on which it has been demanded.

 

25           A poll demanded on the election of a chairman or on a question of

adjournment shall be taken at once.

 

26                                  On a show of hands every person who is present in person and who

produces a Note or a voting certificate or is a proxy has one vote. On a poll

every such person has one vote for each €1,000 principal amount of Notes so

produced or represented by the voting certificate so produced or for which he

is a proxy or representative. Without prejudice to the obligations of proxies,

a person entitled to more than one vote need not use them all or cast them all

in the same way.

 

27                                  In case of equality of votes the chairman shall both on a show of

hands and on a poll have a casting vote in addition to any other votes which he

may have.

 

Effect and Publication of an Extraordinary Resolution

 

28                                  An Extraordinary Resolution shall be binding on all the Noteholders,

whether or not present at the meeting, and on all the Couponholders and each of

them shall be bound to give effect to it accordingly. The passing of such a

resolution shall be conclusive evidence that the circumstances justify its

being passed. The Issuer shall give notice of the passing of an Extraordinary

Resolution to Noteholders within 14 days but failure to do so shall not

invalidate the resolution.

 

Minutes

 

29                                  Minutes shall be made of all resolutions and proceedings at every

meeting and, if purporting to be signed by the chairman of that meeting or of

the next succeeding meeting, shall be conclusive evidence of the matters in

them. Until the contrary is proved every meeting for which minutes have been so

made and signed shall be deemed to have been duly convened and held and all

resolutions passed or proceedings transacted at it to have been duly passed and

transacted.

 

Trustee’s Power to Prescribe Regulations

 

30                                  Subject to all other provisions in this Trust Deed the Trustee may

without the consent of the Noteholders prescribe such further regulations

regarding the holding of meetings and attendance and voting at them as it in

its sole discretion determines including (without limitation) 

 

40

 

such

requirements as the Trustee thinks reasonable to satisfy itself that the

persons who purport to make any requisition in accordance with this Trust Deed

are entitled to do so and as to the form of voting certificates or block voting

instructions so as to satisfy itself that persons who purport to attend or vote

at a meeting are entitled to do so.

 

41

 

In witness whereof

this Trust Deed has been executed as a deed on the date stated at the

beginning.

 

EXECUTED as a deed

by ECOLAB

INC. 

acting under

the authority of that company by:

 

DANIEL J. SCHMECHEL

 

	

  EXECUTED as a deed by JPMORGAN CHASE BANK, LONDON BRANCH

  By: NICOLA

  DALE

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

  [Assistant

  Trust Manager]

  
					

 

42

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