Document:

exv10w11

 

EXHIBIT
10.11

Transferable

Irrevocable Direct Pay

Letter Of Credit

Irrevocable Letter of Credit No. 3084750

Date: 11 October 2006

Nuclear Energy Holdings L.L.C.

Corporation Trust Centre

1209 Orange Street

Wilmington

Delaware, 19801

Attn: Gary Graphia

Ladies and Gentlemen:

We (the “Interest Letter of Credit Bank”) hereby issue in favor of Nuclear
Energy Holdings, L.L.C. (the “Beneficiary”), this irrevocable direct pay letter
of credit (this “Letter of Credit), effective October 13, 2006. This Letter of
Credit has a maximum aggregate amount available for drawing on any date up to
and including the Stated Expiration Date (as defined below) equal to JPY
13,546,173,000 (the “Maximum Amount”). Upon any payment pursuant to a
Certificate (as defined below), the Maximum Amount shall automatically be
reduced by the amount of such drawing. This Letter of Credit is issued for the
account and by order of The Shaw Group Inc. (the “Account Party”).

Funds under this Letter of Credit are available to the Beneficiary against a
written certificate (each a “Certificate”) signed by an authorized officer of
the Beneficiary, appropriately completed, in the form of Annex A hereto, as
indicated below, presented to us during the period commencing on the date hereof
and up to and including the Stated Expiration Date. Presentation of such
Certificates shall either:

(i) be made in person at our office located at:

Bank of America, N.A.

1000 West Temple Street, 7th Floor

Mail Code: CA9-705-07-05

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

or at any other office
which may be designated by us by written notice delivered to you; or

(ii) be sent to the Interest Letter of Credit Bank by facsimile transmission to
facsimile telephone number (213) 240-6989, with oral confirmation of receipt by
the Interest Letter of Credit BanK of such facsimile transmission by telephone
call to (213) 240-3986; provided, however, that the absence of such confirmation
shall not affect our obligation to honor any drawing.

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

More than one demand for payment may be made under this Letter of Credit.

The expiry date of this Letter of Credit shall be the earliest of: (i) 13 October 2007 (the “Stated
Expiration Date”); (ii) the date on which the Interest Letter of Credit Bank has received written
notification from the Beneficiary stating that all amounts owing under the Bond Trust Deed dated as
of 13 October, 2006 among Nuclear Energy Holdings, L.L.C., Bank of New York, acting in its capacity
as trustee (the “Trustee”) and other parties thereto (the “Bond Trust Deed”) and all fees and
expenses incurred by Nuclear Energy Holdings, L.L.C. have been paid in full and (iii) the date on
which the Interest Letter of Credit Bank has received written notification from the Beneficiary
stating that the Account Party has replaced this Letter of Credit with a new letter of credit
pursuant to the terms of the Bond Trust Deed. The Stated Expiration Date shall be automatically
extended by successive one-year periods unless the Interest Letter of Credit Bank, in its sole
discretion, shall have notified the Beneficiary in writing (such notice, a “Non-extension Notice”)
not later than 90 days prior to such Stated Expiration Date that the Letter of Credit will not be
extended beyond the current Stated Expiration Date.

Presentations made by you which comply with the terms and conditions of this Letter of Credit will
be honored no later than on the second business day following the date of your presentation, in
the amount of the draw in immediately available funds in accordance with the payment instructions
set forth in the accompanying Certificate, if made by 9:00 a.m. Los Angeles, California time, on
any business day (or, if made after 9:00 a.m. Los Angeles, California time, on the third
succeeding business day). A failure by the Beneficiary to make a draw or make a complying draw
hereunder shall not prejudice the right of the Beneficiary to make any other draw.

Any and all payments made to you hereunder shall be made in Japanese Yen and shall be without any
deduction for any charges.

Notwithstanding Article 48 of the Uniform Customs (defined below), this Letter of Credit may be
successively transferable in its entirety (but not in part) upon receipt by the Interest Letter of
Credit Bank of the Beneficiary’s Instructions in the form attached hereto as Annex B, accompanied
by this original Letter of Credit, and amendments, if any. Costs or expenses of Such transfer
shall be for the account of the Account Party.

The Interest Letter of Credit Bank acknowledges and agrees that this Letter of Credit is in all
respects an obligation of the Interest Letter of Credit Bank, All payments made by the Interest
Letter of Credit Bank under this Letter of Credit shall be made from the Interest Letter of Credit
Bank’s own funds and not with funds received directly or indirectly from the Account Party.

EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE,
PUBLICATION NO. 500 (THE “UNIFORM CUSTOMS”), AND SHALL, AS TO MATTERS NOT GOVERNED BY THE UNIFORM
CUSTOMS, BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ARTICLE 17 OF THE UNIFORM CUSTOMS, IF THIS
LETTER OF CREDIT EXPIRES DURING AN

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

INTERRUPTION OF BUSINESS AS DESCRIBED IN SAID ARTICLE 17, THE INTEREST LETTER OF CREDIT BANK WILL
HONOR DRAWS UNDER THIS LETTER OF CREDIT THAT ARE MADE WITHIN TEN (10) DAYS AFTER THE RESUMPTION OF
BUSINESS BY THE INTEREST LETTER OF CREDIT BANK.

This Letter of Credit sets forth in full the terms of our undertaking to you. Our undertaking
to you shall not in any way be modified, amended or amplified by reference to any document,
instrument or agreement referred to in this Letter of Credit or to which this Letter of Credit
relates, and any such reference shall not be deemed to incorporate herein by reference or
otherwise any document, instrument or agreement.

Very truly yours,

BANK OF AMERICA, N.A.

	 	 	 	 	 
	By:

	 	/s/ Sandra Leon
 

	 	 
	Name: Sandra Leon	 	 
	Title: Vice President	 	 

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

ANNEX A

to

TRANSFERABLE IRREVOCABLE

DIRECT PAY LETTER OF CREDIT

ISSUED BY BANK OF AMERICA, N.A.

FORM OF DRAW CERTIFICATE

*[                                        , 2                    ]

BANK OF AMERICA, N.A.

1000 West Temple Street, 7th Floor

Mail Code: CA9-705-07-05

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

Ladies and Gentlemen:

We refer to Transferable Irrevocable Direct Pay Letter of Credit No. 3084750 (the “Letter of
Credit”). Definitions of terms in the Letter of Credit shall apply to all terms used but not
otherwise defined herein.

We hereby make demand under the Letter of Credit for payment of JPY[          ], which is not in excess
of the Maximum Amount.

Please wire the amount demanded hereunder to our account no. [                    ] at
[                    ] in [                    ].1 Such payment is due no later than                     , [  
                  ]
time, on [                    ]2, in accordance with the provisions of the Letter of Credit.

	 	 	 	 	 
	[

	 	               ]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

			
	1	 	Insert details of IBeneficiary Account
	 
	2	 	Insert appropriate payment date.

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

ANNEX B

to

TRANSFERABLE IRREVOCABLE

DIRECT PAY LETTER OF CREDIT

ISSUED BY BANK OF AMERICA, N.A.

TRANSFER FORM

                                        , 200

Bank of America, N.A.

Mail Code: CA9-705-07-05

1000 W Temple St.

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

Re:
Irrevocable Direct Pay Letter of Credit No. 3084750 (the “Letter of Credit”)

We request that you transfer all of our rights as beneficiary under the Letter of Credit to the
transferee, named below (the “Transferee”):

 

Name of Transferee

 

Address

By this transfer for value received, the Transferor, as beneficiary under the Letter of Credit,
hereby irrevocably transfers to the Transferee all rights of the Transferor, including, without
limitation, all rights to make drawings, under the Letter of Credit. The Transferee shall have sold
rights as beneficiary under the Letter of Credit, whether existing now or in the future, including,
without limitation, sole rights to agree to any amendments thereof, including, without limitation,
increases or extensions or other changes and all notices under the Letter of Credit. All amendments
to the Letter of Credit are to be consented to by the Transferee without the necessity of consent
by or notice to the Transferor.

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

We enclose the original of the Letter of Credit and any amendments. Please indicate your acceptance
of our request for the transfer by endorsing the letter of credit and sending it to the Transferee
with your customary notice of transfer.

The signature and title at the right conform with those shown in our files as authorized to
sign for the beneficiary. Policies governing signature authorization as required for withdrawals
from customer accounts shall also be applied to the authorization of signatures on this form. The
authorization of the Beneficiary’s signature and title on this form also acts to certify that the
authorizing financial institution (i) is regulated by a U.S. federal banking agency; (ii) has
implemented anti-money laundering policies and procedures that comply with applicable requirements
of law, including a Customer Identification Program (CIP) in accordance with Section 326 of the USA
PATRIOT Act; (iii) has approved the Beneficiary under its anti-money laundering compliance program;
and (iv) acknowledges that Bank of America, N.A. is relying on the foregoing certifications
pursuant to 31 C.F.R. Section 103.121 (b)(6).

 

NAME OF TRANSFEROR

 

NAME OF AUTHORIZED SIGNER AND TITLE

 

NAME OF BANK

 

AUTHORIZED SIGNATURE AND TITLE

 

PHONE NUMBER

 

AUTHORIZED SIGNATURE

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

October 13, 2006

The Bank of New York

Corporate Trust Services

One Canada Square

London

E14 5AL

Attn: Peter Malcom/Peter Howard

	 	 	 	 	 
	 

	 	Subject:
	 	Letter of Credit No. 3084750
	 

	 	Beneficiary:
	 	Nuclear Energy Holdings, L.L.C.
	 

	 	Applicant:
	 	The Shaw Group Inc.
	 

	 	Amount:
	 	JPY13,546,173,000

Gentlemen:

At the request of the above-mentioned beneficiary, we hereby irrevocably transfer to you all rights
under this Letter of Credit. You shall have the sole rights as the Beneficiary under and as defined
in this Letter of Credit, including sole rights to agree to any amendments, including increases or
extensions or other changes or to serve notice under this Letter of
Credit. All amendments will be
sent directly to you.

Enclosed is the original Letter of Credit duly endorsed.

Sincerely
yours, 

Bank of America, N.A.

	 	 	 	 	 
	BY:

	 	/s/ Sandra Leon
 

	 	 
	Name: Sandra Leon	 	 
	Title: Vice President	 	 

Bank of America, N.A. Trade Operations

CA9-705-07-05

1000 W. Temple St. Los Angeles, CA 90012-15140

00-35-0201NSB 10-2005

 

 

October 13, 2006

ALL RIGHTS AS BENEFICIARY UNDER THIS LETTER OF CREDIT INCLUDING WITHOUT LIMITATION, THE SOLE RIGHT
TO DRAW AND TO APPROVE ANY AMENDMENTS, ARE IRREVOCABLY TRANSFERRED TO THE BANK OF NEW YORK WHO ARE
RECOGNIZED AS THE SOLE BENEFICIARY UNDER THIS LETTER OF CREDIT IN ALL RESPECTS AND WITH THE SAME
FORCE AND EFFECT AS THOUGH IT HAD BEEN NAMED AS THE ORIGINAL BENEFICIARY.

The Bank of New York

Corporate Trust Services

One Canada Square

London

E14 5AL

Ann. Peter
Malcom/Peter Howard

AMOUNT: JPY13,546,173,000

	 	 	 	 	 
	BY:

	 	/s/ Sandra Leon
 

	 	 
	Name: Sandra Leon	 	 
	Title: Vice President	 	 

 

 

TRANSFER FORM

13 October 2006

Bank of America, N.A.

Mail Code: CA9-705-07-05

1000 W Temple St.

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

Re:
Irrevocable Direct Pay Letter of Credit No. 3084750 (the “Letter of Credit”)

We request
that you transfer all of our rights as beneficiary under the Letter of Credit to the
transferee, named below (the “Transferee”):

 

Name of Transferee: Bank of New York, Corporate Trust Services

 

Address: One Canada Square, London, E14 5AL

Attn: Peter Malcolm/Peter Howard

By this transfer for value received, the Transferor, as beneficiary under the Letter of Credit,
hereby Irrevocably transfers to the Transferee all rights of the Transferor, including, without
limitation, all rights to make drawings, under the Letter of Credit. The Transferee shall have sole
rights as beneficiary under the Letter of Credit, whether existing now or in the future, including,
without limitation, sole rights to agree to any amendments thereof, including, without limitation,
increases or extensions or other changes and all notices under the
Letter of Credit. All amendments
to the Letter of Credit are to be consented to by the Transferee without the necessity of consent by
or notice to the Transferor.

We enclose the original of the Letter of Credit and any amendments. Please indicate your
acceptance of our request for the transfer by endorsing the letter of credit and sending it to the
Transferee with your customary notice of transfer.

 

 

The
signature and title at the right conform with those shown in our files as authorized to
sign for the beneficiary. Policies governing signature authorization as required for withdrawals
from customer accounts shall also be applied to the authorization of signatures on this form. The
authorization of the Beneficiary’s signature and title on this form also acts to certify that the
authorizing financial institution (i) is regulated by a U.S. federal banking agency; (ii) has
implemented anti-money laundering policies and procedures that comply with applicable
requirements of law, including a Customer Identification Program (CIP) in accordance with Section
326 of the USA PATRIOT Act; (iii) has approved the Beneficiary under its anti-money laundering
compliance program; and (iv) acknowledges that Bank of America, N.A. is relying on the foregoing
certifications pursuant to 31 C.F.R. Section 103.121 (b)(B).

Nuclear Energy Holdings L.L.C.

Corporation Trust Centre

1209 Orange Street

Wilmington

Delaware, 19801

	 	 	 	 	 	 	 
	 	 	 

NAME OF TRANSFEROR

	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Gary P. Graphia
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Vice President, Secretary
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

NAME OF AUTHORIZED SIGNER AND
TITLE

	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	  

NAME
OF BANK

	 	/s/ [ILLEGIBLE]
 

AUTHORIZED SIGNATURE
	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ HARRIS N.A.
 

AUTHORIZED SIGNATURE AND TITLE

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ [ILLEGIBLE]	 	 	 	 	 	 
	MANAGING DIRECTOR	 	 	 	 	 	 
	PHONE NUMBER
	 	 	 	 	 	 
	 
	312-293-8353exv10w12

 

Exhibit 10.12

REIMBURSEMENT AGREEMENT

     This REIMBURSEMENT AGREEMENT (this “Agreement”) is made and entered into on October 13, 2006
(the “Effective Date”), between The Shaw Group Inc., a Louisiana corporation (“Shaw”), and Toshiba
Corporation, a Japanese corporation (“Toshiba”). Shaw and Toshiba are also referred to herein
together as the “Parties” and individually as a “Party”.

RECITALS

     A. On the terms and subject to the conditions set forth in the Investment Agreement, dated as
of October 4, 2006, among Toshiba, Nuclear Energy Holdings, L.L.C., a Delaware limited liability
company (“NEH”), Toshiba Nuclear Energy Holdings (US) Inc., a Delaware corporation (“US Holdco”),
and Shaw, NEH has directly agreed to acquire 800 shares of Class A Stock of US Holdco for a
consideration of $800,000,000 and representing, as of the Closing Date (as defined in such
Investment Agreement), twenty percent (20.0%) of the outstanding capital stock thereof
(collectively, the “US Shares”). On the terms and subject to the conditions set forth in the
Investment Agreement, dated as of October 4, 2006, among Toshiba, NEH, Toshiba Nuclear Energy
Holdings (UK) Limited, a company incorporated in England (“UK Holdco” and, together with US Holdco,
the “Holdcos”), and Shaw, NEH has directly agreed to acquire 280 Class A Shares in the capital of
UK Holdco for a consideration of $280,000,000 and representing, as of the Closing Date (as defined
in such Investment Agreement), twenty percent (20.0%) of the outstanding capital stock thereof
(collectively, the “UK Shares”; and, together with the US Shares, the “Shares”).

     B. On even date herewith, Toshiba and NEH have entered into two Put Option Agreements (the
“Put Option Agreements”) pursuant to which Toshiba provides to NEH put options with respect to the
Shares, on the terms and conditions set forth therein.

     C. As a condition to Toshiba entering into the Put Option Agreements, Toshiba has requested
that Shaw, and Shaw has agreed to, reimburse Toshiba for certain amounts paid by Toshiba in
connection with stamp or transfer taxes, tax withholdings or deduction in connection with any
exercise by NEH of the put rights under the Put Option Agreements on the terms and subject to the
conditions set forth in this Agreement.

     NOW, THEREFORE, the Parties, in consideration of the premises and the terms, covenants and
conditions set forth below, hereby agree as follows:

AGREEMENT

1. DEFINITIONS; INTERPRETATION.

     1.1 Terms Not Defined in this Agreement. Term used but not otherwise defined herein
shall have the meanings given to such terms in the Put Option Agreement.

     1.2 Interpretation.

 

 

     (a) Certain Terms. The words “hereof,” “herein,” “hereunder” and similar words refer
to this Agreement as a whole and not to any particular provision of this Agreement. The term
“including” is not limited and means “including without limitation.”

     (b) Section References; Titles and Subtitles. Unless otherwise noted, all references
to Sections herein are to Sections of this Agreement. The titles, captions and headings of this
Agreement are inserted for convenience of reference only and are not intended to be a part of or to
affect the meaning or interpretation of this Agreement.

2. REIMBURSEMENT OBLIGATION.

     2.1 Reimbursement by Shaw. (a) If and to the extent that, (i) in connection with the
transfer of Shares pursuant to the Put Option Agreements, Toshiba or its subsidiaries are required
to pay any stamp duty, stamp duty reserve tax, transfer tax or other similar tax or duty (“Transfer
Taxes”) or (ii) in accordance with Section 3.2 either of the Put Option Agreement, Toshiba (or its
permitted designee under a Put Option Agreement) (A) is required under applicable law to withhold
or deduct from the Put Price any taxes, duties, assessments or governmental charges of whatever
nature imposed, levied, collected, withheld or assessed by or within Japan or any authority therein
or thereof having power to tax (“Taxes”) and (B) pays to NEH any additional amounts as will result
in the receipt by NEH of such amounts as would have been received by NEH had no withholding or
deduction been required (“Tax Gross-Up Amounts”), Shaw shall reimburse Toshiba for (x) all such Tax
Gross-Up Amounts, (y) all such Transfer Taxes and (z) additional Taxes paid or payable by Toshiba
in respect of the amounts reimbursed under the preceding clauses (x) and (y) (collectively, the
“Put Loss Amounts”) within two Business Days after receipt from Toshiba of a written request for
payment thereof (together with substantiating documentation).

     (b) In addition, Shaw agrees to pay on demand any and all costs, including reasonable legal
fees and expenses, and other expenses incurred by Toshiba in enforcing Shaw’s payment obligations
under this Section 2.1; provided that Shaw shall not be liable for any such costs and
expenses if no payment under this Section 2.1 is due (such amounts, together with the Put Loss
Amounts, the “Reimbursable Amounts”).

     2.2 Nature of Obligations. The obligations of Shaw hereunder are primary and
unconditional, and Toshiba shall not be required to bring an action against NEH to enforce its
rights against Shaw with respect to any Reimbursable Amounts. Until payment in full of
Reimbursable Amounts, Shaw expressly waives, on behalf of itself and NEH, any and all rights of
subrogation, reimbursement, indemnity, exoneration, contribution or any other claim which Shaw or
NEH may now or hereafter have against Toshiba arising from the existence or performance of this
Agreement or any other agreement.

     2.3 Dividend. Upon receipt by Shaw of a written request for payment as contemplated
by Section 2.1, Shaw shall cause NEH (subject to any restrictions in NEH’s financing documentation)
to assign and pay over to Toshiba all Dividends that NEH receives after exercise of the Put Right
up to an amount, when combined with any payments made by or on behalf of Shaw in respect of its
obligations under Section 2.1, equal to the full amount of all Reimbursable Amounts (“Assigned
Dividends”), and all such rights shall thereupon become

2

 

vested in Toshiba, which shall have the sole and exclusive right and authority to receive and
retain any such Assigned Dividends. In such event, Shaw shall cause NEH to promptly notify (or if
NEH does not do so promptly, shall allow Toshiba to notify) the applicable HoldCo and instruct such
HoldCo to pay any and all such Assigned Dividends directly to Toshiba 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 any Government Authority having
power to tax, unless such withholding or deduction is required by law. All Assigned Dividends
received by Shaw or its Subsidiaries contrary to the provisions of this Section 2.3 shall be held
in trust for the benefit of Toshiba, shall be segregated from other property or funds of Shaw and
such Subsidiaries and upon receipt shall be forthwith delivered to Toshiba in the same form as so
received (with any necessary endorsement), 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 any Government Authority having power to tax, unless such
withholding or deduction is required by law. For the purposes of this Section 2.3, the term
“Dividends” shall mean any dividends, interest, cash, instruments and other property distributed
from time to time by the applicable HoldCo in respect of the Shares or any shares, interests or
other securities issued or distributed by the applicable HoldCo with respect thereto.

3. RANKING, PAYMENTS AND SET-OFF.

     3.1 Ranking. The payment obligations of Shaw under this Agreement shall, save for such
exceptions as may be provided in applicable bankruptcy Law, at all times rank pari passu with all
of Shaw’s other present and future unsecured and unsubordinated obligations.

     3.2 Withholding. All payments made by or on behalf of Shaw under this Agreement 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 any
Government Authority having power to tax, unless such withholding or deduction is required by law,
in which event Shaw shall pay such additional amounts as will result in receipt by Toshiba of the
full amount of Reimbursable Amounts it would have received had no such withholding or deduction
been required.

     3.3 Set-off. Toshiba shall be absolutely entitled to receive all amounts payable in
respect of this Agreement, and Shaw hereby waives, on behalf of itself and NEH, as against Toshiba,
all rights of set-off or counterclaim that would or might otherwise be available to Shaw or NEH.

4. REPRESENTATIONS AND WARRANTIES.

     4.1 Toshiba. Toshiba represents and warrants to Shaw, as of the Effective Date, that:

     (a) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereunder to be carried out by it have been duly
authorized by all necessary corporate action on the part of Toshiba. This Agreement, and all
agreements and documents executed and delivered pursuant to this Agreement, constitute valid and
binding obligations of Toshiba, enforceable against Toshiba in accordance with its terms,

3

 

subject to applicable bankruptcy Laws and other laws or equitable principles of general
application affecting the rights of creditors generally.

     (b) No Conflicts. Neither the execution or delivery of this Agreement by Toshiba nor
the fulfillment or compliance by Toshiba with any of the terms hereof shall, with or without the
giving of notice and/or the passage of time, (i) conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default under, (A) the organizational or charter
documents of Toshiba or (B) any contract or any judgment, decree or order to which Toshiba is
subject or by which it is bound, or (ii) require any consent, license, permit, authorization,
approval or other action by any Person or Government Authority which has not yet been obtained or
received. The execution, delivery and performance of this Agreement by Toshiba and compliance with
the provisions hereof by Toshiba shall not violate any provision of any Law to which Toshiba is
subject or by which it is bound.

     (c) No Actions. There are no lawsuits, actions (or to the best knowledge of Toshiba,
investigations), claims or demands or other proceedings pending or, to the best of the knowledge of
Toshiba, threatened against Toshiba or any of its Subsidiaries which, if resolved in a manner
adverse to Toshiba or such Subsidiaries, would adversely affect the right or ability of Toshiba to
carry out its obligations set forth in this Agreement.

     4.2 Shaw. Shaw represents and warrants to Toshiba, as of the Effective Date, that:

     (a) Due Authorization. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereunder to be carried out by it have been duly
authorized by all necessary corporate action on the part of Shaw. This Agreement, and all
agreements and documents executed and delivered pursuant to this Agreement, constitute valid and
binding obligations of Shaw, enforceable against Shaw in accordance with its terms, subject to
applicable bankruptcy Laws and other laws or equitable principles of general application affecting
the rights of creditors generally.

     (b) No Conflicts. Neither the execution or delivery of this Agreement by Shaw nor the
fulfillment or compliance by Shaw with any of the terms hereof shall, with or without the giving of
notice and/or the passage of time, (i) conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default under, (A) the organizational or charter
documents of Shaw or (B) any contract or any judgment, decree or order to which Shaw is subject or
by which it is bound, or (ii) require any consent, license, permit, authorization, approval or
other action by any Person or Government Authority which has not yet been obtained or received.
The execution, delivery and performance of this Agreement by Shaw and compliance with the
provisions hereof by Shaw shall not violate any provision of any Law to which Shaw is subject or by
which it is bound.

     (c) No Actions. There are no lawsuits, actions (or to the best knowledge of Shaw,
investigations), claims or demands or other proceedings pending or, to the best of the knowledge of
Shaw, threatened against Shaw or any of its Subsidiaries which, if resolved in a manner adverse to
Shaw or such Subsidiaries, would adversely affect the right or ability of Shaw to carry out its
obligations set forth in this Agreement.

4

 

5. MISCELLANEOUS.

     5.1 Governing Law. This Agreement, as to which time is of the essence, shall be
construed according to, and the rights of the Parties shall be governed by, the laws of the State
of New York. In the event of any dispute between the Parties arising out of or in connection with
this Agreement, the Parties shall use good faith efforts to resolve such dispute amicably. If the
Parties cannot resolve such dispute amicably after a period of 60 days, such dispute shall be
finally settled by arbitration in London, England, conducted in English and in accordance with the
Rules of Arbitration of the International Chamber of Commerce by three arbitrators. One arbitrator
shall be appointed by Toshiba, one arbitrator shall be appointed by Shaw and the third arbitrator,
who shall serve as the Chair of the tribunal, shall be selected by the first two. If the third
arbitrator is not chosen and nominated to the ICC for appointment within 30 days of the date of
confirmation by the ICC of the later of the two party-appointed arbitrators to be confirmed, he
shall be chosen by the ICC. Any award rendered thereby shall be final and binding on the Parties,
and fully enforceable in a court of law. The award may include an award of costs, including
reasonable attorneys fees and disbursements.

     5.2 Successors and Assigns. The rights and obligations of neither Party hereunder may
be assigned or delegated without the prior written consent of the other Party. Any purported
assignment or delegation in violation of this Section 5.2 shall be void ab initio and have no force
or effect. The provisions hereof shall inure to the benefit of, and be binding upon, the successors
and permitted assigns of the Parties.

     5.3 Entire Agreement; Amendment. This Agreement constitutes the full and entire
understanding and agreement between the Parties with regard to the subject matter hereof. Any term
of this Agreement may be amended only with the written consent of each Party.

     5.4 Notices and Other Communications. Any and all notices, requests, demands and
other communications required or otherwise contemplated to be made under this Agreement shall be in
writing and in English and shall be provided by one or more of the following means and shall be
deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by
facsimile, on the date of transmission with receipt of a transmittal confirmation, or (c) if by a
nationally or internationally recognized courier service, on the third (3rd) day following the date
of deposit with such courier service, or such earlier delivery date as may be confirmed in writing
to the sender by such courier service. All such notices, requests, demands and other
communications shall be addressed as follows:

To Shaw at:

The Shaw Group Inc.

4171 Essen Lane

Baton Rouge, Louisiana 70809

Attention: Gary Graphia, Secretary and General Counsel

Facsimile No.: + 1-225-925-9146

Email: gary.graphia@shawgrp.com

5

 

with a copy, which shall not constitute notice, to:

Vinson & Elkins L.L.P.

1001 Fannin Street, Suite 2300

Houston, TX 77002

Attention: Clifton S. Rankin, Partner

Facsimile No.: + 1-713-615-5162

To Toshiba at:

Toshiba Corporation

Toshiba Building 31B

1-1-1, Shibaura, Minato-ku, Tokyo 105-8001, Japan

Attention: General Manager Legal Affairs Department, Power Systems

and Services Company

Facsimile No.: + 81-3-5444-9183

with a copy, which shall not constitute notice, to:

Skadden, Arps, Slate, Meagher & Flom LLP

Izumi Garden Tower 21st Floor

1-6-1 Roppongi Minato-ku, Tokyo, 106-6021, Japan

Attention: Mitsuhiro Kamiya, Partner

Facsimile No.: + 81-3-3568-2626

or to such other address or facsimile number as a Party may have specified to the other Party in
writing delivered in accordance with this Section 5.4.

     5.5 Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any Person hereunder, upon any breach or default under this Agreement, shall impair any
such right, power or remedy nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any Person hereunder of any breach or default under this Agreement, or any
waiver on the part of any Person of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such writing and signed
by the waiving or consenting Person.

     5.6 Severability. If any provision of this Agreement is found to be invalid or
unenforceable, then such provision shall be construed, to the extent feasible, so as to render the
provision enforceable and to provide for the consummation of the transactions contemplated hereby
on substantially the same terms as originally set forth herein, and if no feasible interpretation
would save such provision, it shall be severed from the remainder of this Agreement, which shall
remain in full force and effect unless the severed provision is essential to the rights or benefits
intended by the Parties. In such event, the Parties shall use best efforts to

6

 

negotiate, in good faith, a substitute, valid and enforceable provision or agreement which
most nearly effects the Parties’ intent in entering into this Agreement.

     5.7 Further Assurances. The Parties shall perform such acts, execute and deliver such
instruments and documents and do all other such things as may be reasonably necessary to effect the
transactions contemplated hereby.

     5.8 Costs and Expenses. The Parties shall each bear their own legal and other costs
and out-of-pocket expenses arising out of the negotiation, preparation and execution of this
Agreement.

     5.9 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall constitute one instrument.
Execution and delivery of this Agreement by exchange of facsimile copies bearing the facsimile
signature of a Party shall constitute a valid and binding execution and delivery of this Agreement
by such Party.

[Remainder of page intentionally blank.]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 
	THE SHAW GROUP INC.	 	TOSHIBA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Name: J.M Bernhard, Jr.
	 	 	 	 

Masao Niwano
	 	 
	 

	 	Title: Chairman of the Board and
	 	 	 	Director, Corporate Senior Executive	 	 
	 

	 	Chief Executive Officer
	 	 	 	Vice President	 	 

8

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