Document:

Exhibit 4.2

 

SHAREHOLDERS AGREEMENT

 

This SHAREHOLDERS AGREEMENT (the “Shareholders Agreement”),
dated as of September 15, 2005, is entered between

 

1)                                      EDF INTERNATIONAL S.A. (“EDFI”), a société anonyme organized and existing
under the laws of the Republic of France, hereby represented by Mr. Michel
Cremieux in his capacity as Deputy Managing Director;

 

2)                                      DOLPHIN ENERGIA S.A. (“Dolphin Energia”),
a sociedad anóinima organized and
existing under the laws of the Republic of Argentina, hereby represented by Mr.
Marcelo Mindlin, in his capacity as President;

 

3)                                      NEW EQUITY VENTURES LLC (“NEV”), a
limited liability company organized and existing under the laws of Delaware
USA, hereby represented by Mr. Diego Salaverri, in his capacity as attorney in
fact;

 

4)                                      IEASA S.A. (“IEASA”), a sociedad anónima organized and existing
under the laws of the Republic of Argentina, hereby represented by Mr. Marcelo
Mindlin, in his capacity as President; and

 

5)                                      ELECTRICIDAD ARGENTINA S.A. (“EASA”,
and together with Dolphin Energia, NEV, and IEASA, “Dolphin”) a sociedad anónima organized and existing
under the laws of the Republic of Argentina, hereby represented by
Mr. Marcelo Mindlin, in his capacity as President (Dolphin and EDFI shall
be collectively referred to as the “Shareholders”).

 

RECITALS:

 

(A)          EDFI and Dolphin
Energia have executed a purchase agreement, dated June 10, 2005 (the “Purchase
Agreement”), whereby EDFI shall, at Closing (as defined below), sell,
assign and transfer to Dolphin, and Dolphin shall purchase, among other things,
certain shares of EASA and Empresa Distribuidora y Comercializadora Norte
Sociedad AnOrdma (“EDENOR”).

 

(B)           Upon Closing, EDFI
will be the owner of shares representing 25% of the capital stock and voting
rights of EDENOR, the holder of a concession for the supply of the public
service of distribution and commercialization of electricity to users connected
to EDENOR’s energy distribution network, in the north area of Buenos Aires City
and of Great Buenos Aires, as granted by National Executive Branch Decree No.
714/92.

 

(C)           Dolphin Energia has
assigned to (i) IEASA, the ordinary shares representing 7,07% of the capital
stock and 10% of the voting rights of EASA; and (ii) NEV, e shares representing
14 % of the capital stock and voting rights of EDENOR.

 

(D)          Upon Closing, NEV
will be the owner of shares representing 14 % of the capital stock and voting
rights of EDENOR; Dolphin Energia will be the owner of (i) the ordinary shares
representing 69,25% of the capital stock and 90% of the voting rights of EASA

 

 

 

and (ii) Class “A” and Class “B” preferred shares
representing 23,05% of the capital stock of EASA, a company that owns shares
representing 51% of the capital stock and voting rights of DENOR; and IEASA
will be the owner of the ordinary shares representing 7,07% of the capital
stock and 10% of the voting rights of EASA.

 

(E)           The Shareholders (as
defined below) desire to set forth certain agreements among them as direct and
indirect shareholders of EDENOR, which shall become effective upon Closing.

 

NOW, THEREFORE, in consideration of the promises set forth herein, and
for the:- good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows.

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.  Definitions.  As used in this Shareholder Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

 

“Act” shall mean the Argentine Business Corporations law Nr.
19,550, as mended from time to time.

 

“Affiliate” shall mean (i) in the case of any person, including
Dolphin, any person, firm or corporation that directly or indirectly controls,
is controlled by or is under common control with such person, (ii) in the case
of Dolphin only, any Eligible Transferee, and (iii) in the case of any
Transferee (as defined in Section 6.03.(c)) only, any person with whom such
Transferee has signed a shareholders agreement, voting agreement or other
similar form of agreement in connection with its direct or indirect equity
participation in EDENOR.

 

“Argentine Pesos” or “Pesos” shall mean the lawful
currency of Argentina.

 

“Articles of Incorporation” shall mean the Estatutos of EDENOR.

 

“Auditors Committee” shall mean the Auditors Committee (Comisión
Fiscalizadora) of EDENOR.

 

“Block Trade” means a transfer by NEV of any Class B Shares to
one or more third parties (whether through brokers or otherwise) in a block
trade after a trading market for such Class B Shares has developed.

 

“Board” shall mean the Board of Directors of EDENOR.

 

“Business Day” shall mean any day other than (a) a Saturday or a
Sunday or (b) any other day on which banks located in New York, Paris or Buenos
Aires are closed for business.

 

2

 

“Cash” shall mean US Dollars or Euros or any other currency that
may replace them in the future.

 

“Class A Shares” shall mean the class A common shares of EDENOR.

 

“Class B Shares” shall mean the class B common shares of EDENOR.

 

“Closing” (as defined in Section 2.02 of the Purchase Agreement)
shall mean the act upon which the sale by EDFI and purchase by Dolphin, IEASA
and NEV of certain shares of EASA and EDENOR shall take place.

 

“Concession Contract” shall mean the contract by and between the
Argentine National Executive Branch and EDENOR, dated September 1, 1992,
whereby EDENCR has been awarded a concession for the supply of the public
service of distribution and commercialization of electricity to users connected
to EDENOR’s energy distribution network within the area specified in the
Concession Contract.

 

“EASA” shall have the meaning specified in the headings of this
Shareholder Agreement.

 

“EDENOR” shall have the meaning specified in Recital (A) hereof.

 

“Eligible Transferee” in addition to what is provided for in the
Purchase Agreement, IEASA and NEV.

 

“Excluded Dolphin Transaction” means any of the following
transactions: (i) any direct or indirect transfer by Dolphin to an Affiliate of
Dolphin; (ii) any transfer of Class B Shares in a public market sale (whether
through brokers or otherwise), provided such transfer (a) involves in any year
less than 3% of the issued and outstanding Shares and (b) is effected in a
manner designed to be widely dispersed in the market, and (iii) any transfer of
Class B Shares in a public market sale (whether through brokers or otherwise)
to be effected in a manner designed to be widely dispersed in the market
provided EDFI is given the right to participate in such transfer pro-rata for
its Class B Shares with respect to the total amount of Class B Shares of
Dolphin and its Affiliates under substantially the same terms and conditions as
those described in the Registration Agreement in Section 5.01.

 

“Marketable Securities” shall mean securities traded in the New
York, London or Paris stock exchanges.

 

“Shareholders Agreement” shall mean this Shareholders Agreement,
together with the Exhibits attached hereto, as the same may be amended from
time to time in accordance with the terms hereof.

 

“Shares” shall mean the Class A Shares, the Class B Shares, the
Class C Shares and other type of security, derivative or convertible instrument
that results or could result in a beneficial equity ownership in EDENOR.

 

3

 

“Stand-by Letter of Credit” shall mean a letter of credit issued
by a AAA financial institution acceptable to EDFI.

 

SECTION 1.02.  Interpretation.  (a) Any capitalized term used herein that is
not defined in this Shareholders Agreement shall have the meaning ascribed to
it in the Purchase Agreement.  All terms
defined in this Shareholder Agreement in the singular shall have the same
meaning when used in the plural and vice versa. 
The words “hereof’, “herein” and “hereunder”, and words of similar
import when used in the Shareholder Agreement shall refer to the Shareholder
Agreement as a whole and not to any particular provision of this Shareholder
Agreement; and “section”,” subsection”, “schedule” and “exhibit” references are
to this Shareholder Agreement unless otherwise specified.

 

(b)           Notwithstanding anything herein to
the contrary, any reference in this Agreement to Dolphin “causing” (or any
similar word or phrase) EDENOR to do an act or thing shall apply only to the
extent that Dolphin (either directly or indirectly through any Affiliate) (i)
owns a majority of the voting securities of EDENOR or (ii) has the right to
appoint a majority of the Board of EDENOR.

 

ARTICLE II

PURPOSE AND EFFECTIVENESS

 

SECTION 2.01.  Purpose.  The purpose of this Shareholder Agreement is
to regulate the relationship of the parties as direct and indirect shareholders
of EDENOR (“Shareholders”), and to record the guidelines that will lead
the parties’ action in their task of conducting and managing EDENOR, trying to
minimize the causes of potential conflicts and to provide for mechanisms to
resolve conflicts, if any, as fairly as possible.  Except to the extent otherwise provided, the
liability of Dolphin Energia, EASA, NEV and IEASA regarding the compliance of
this Shareholder Agreement will be joint and several.

 

SECTION 2.02.  Effectiveness.  All of the provisions of this Shareholders
Agreement shall become effective on the date hereof.

 

SECTION 2.03.  Transfers.  All transferees of rights and obligations
under this Shareholders Agreement pursuant to the terms of this Shareholders
Agreement must agree in writing to be bound by the provisions and obligations
of this Agreement.

 

ARTICLE III

CORPORATE GOVERNANCE

 

SECTION 3.01.  Undertaking of the Shareholders.  Each of the Shareholders covenants and agrees
with each other to do and to cause to be done all such acts and things,
including voting its Shares and causing its appointed members of the Board
and/or nominees to do or cause to be done all such acts and things (to the
maximum extent permitted by law), notwithstanding any conflicting provision in
the Articles of Incorporation.  In the
case of any conflict between the provisions of this Shareholders Agreement and
the provisions of the Articles of Incorporation, the Shareholders shall do such
things as are necessary to amend such

 

4

 

Articles of Incorporation
to resolve such conflict so that the provisions hereinafter se; forth shall, to
the maximum extent permitted by law, at all times prevail.

 

SECTION 3.02.  Directors.  EDFI shall have the right to nominate 2
members to the Board, provided, however, that in the event that
EDFI holds less than 15% but at least 7.5% of the issued and outstanding shares
of EDENOR, EDFI shall have the right to nominate 1 member to the Board.  In case that EDFI’s beneficial economic
ownership in EDENOR is reduced below 7.5% of its issued and outstanding shares,
EDFI shall no longer have the right to nominate any member to the Board, except
to the extent Argentine law entitles it to nominate and elect such member.  In the event that a vacancy in the Board
arises for any reason whatsoever, it shall be filled by the election or
appointment of a director nominated by the Shareholder that nominated its
predecessor in accordance with the provision of this Shareholders Agreement.

 

SECTION 3.03.  Auditors Committee.  For as long as EDFI holds at least 7.5% of
the issued and outstanding shares of EDENOR, EDFI shall have the right to
nominate 1 member of the Auditors Committee. 
In case that EDFI’s beneficial economic ownership in EDENOR is reduced
below 7.5% of its issued and outstanding shares, EDFI shall no longer have the
right to nominate any member to the Auditors Committee, except to the extent
Argentine law entitles it to nominate and elect such member.  In the event that a vacancy in the Auditors
Committee arises for any reason whatsoever, it shall be filled by the election
or appointment of an auditor nominated by the Shareholder that nominated its
predecessor in accordance with the provision of this Shareholders Agreement.

 

SECTION 3.04.  Shareholders Meetings.  (a) Each of the Shareholders agrees to vote
its Shares for the election, as members of the Board and of the Auditors
Committee, of candidates nominated in accordance with Sections 3.02 and 3.03.

 

(b)           So long as EDFI maintains a
beneficial economic interest in EDENOR of at least 15% and except as otherwise
permitted or contemplated in this Shareholders Agreement, the taking of any of
the following actions or implementation of any of the following matters by
EDENOR, or by Dolphin as shareholder of EDENOR, shall: require the prior
written approval of EDFI:

 

(i)            any issue of Shares, or any other
type of security or derivative or convertible instruments that could imply or
result in a beneficial equity ownership in EDENOR, or any amalgamation,
arrangement, continuance, winding-up, dissolution, liquidation, merger,
acquisition or joint venture or any other transaction or scheme that would
dilute EDFI’s beneficial economic ownership in EDENOR at the time of such
issuance, acknowledging both EDFI and Dolphin that this provision was specially
considered by EDFI in order to enter into the Purchase Agreement and into this
Shareholders Agreement;

 

(ii)           any transaction between EDENOR and
Dolphin or an Affiliate of Dolphin (other than dividends paid to all
shareholders of EDENOR, customary director fees and other customary
arrangements in Argentina provided to all directors of EDENOR), unless Dolphin
provides evidence reasonably satisfactory to EDFI that any such transaction is
on an arm’s length

 

5

 

basis, provided, that,
EDENOR shall be allowed to transfer to EASA up to US$2,000,000 per annum in accordance
with Argentine law and proper practice;

 

(iii)          any amendments to the Articles of
Incorporation that could adversely affect EDFI’s beneficial economic ownership
in EDENOR;

 

(iv)          any proposed sale, lease, exchange or
other similar disposition of: f assets of EDENOR for a value below their fair
or book value, and any agreement or undertaking with respect thereto;

 

(v)           the sale of all or a significant
portion of the property, assets or undertakings of EDENOR;

 

(vi)          any purchase or redemption of Shares
by EDENOR or any other return of capital, except on a pro-rata basis;

 

(vii)         any voluntary bankruptcy declaration or
initiation of any voluntary insolvency proceeding, except for any
reorganization structure that EDFI, Dolphin Energia and EASA have agreed within
the Indicative Debt Restructuring Agreement;

 

(viii)        any merger, acquisition or entry into
new lines of business not related to the energy distribution business, the
establishment of a business other than that currently carried on by EDENOR or
any material change in the existing business of EDENOR;

 

(ix)           any declaration or payment of
dividends;

 

(x)            any single transaction or series of
related transactions that would (i) involve the receipt of, or (ii) involve the
disbursement by EDENOR of, amounts in excess of US$50,000,000 (other than
payments to be made in connection with the restructuring of EDENOR’s
indebtedness to be made in accordance with the Indicative Debt Restructuring
Agreement) ; or

 

(xi)           any single transaction or series of
related transactions that would imply the incurrence of indebtedness and/or
guarantees in excess of US$50,000,000 over the outstanding amount nominal total
debt in EDENOR after completion of the debt restructuring to be conducted in
the terms set forth in the Indicative Debt Restructuring Agreement.

 

(c)           EDFI shall have the right to cause
EDENOR to challenge any local legislation that could materially and negatively
affect EDENOR’s business or EDFI’s economic ownership in EDENOR or EDFI’s
rights under the Related Agreements, provided, that neither
EDENOR nor Dolphin shall be held liable for any failure to effect a change in
the subject legislation as a result of its challenge, provided, further,
that, EDENOR shall not be obliged to challenge any legislation affecting
EDFI’s investment or rights in the Purchase Agreement, this Agreement or any
other Related Agreement to the extent such challenge may materially and
negatively affect the situation of EDENOR’s Concession Contract or its business
taken as a whole.

 

6

 

SECTION 3.05.  External Auditors.  Dolphin shall cause EDENOR to have at all
times one of the following firms: PriceWaterhouseCoopers, Ernst & Young,
Deloitte & Touche and KPMG as its external auditor, unless none of such
firms is available, in which case the Shareholders shall agree on which
international firm shall be EDENOR’s external auditor.  To the extent permitted by Argentine law,
EDFI shall have the right through its directors in EDENOR to make inquiries to
the statutory auditor.  Upon request of
EDFI to EDENOR, EDFI shall have the right through any of the directors
appointed by it, to have access to EDENOR’s external auditor without the
presence of management of Dolphin or EDENOR and may request to have access to
all documents and communications in relation to internal audits, to the extent
permitted, and in compliance with, Argentine law.

 

SECTION 3.06.  Duty to Inform Bankruptcy Petitions.  So long as EDFI shall have the right to
nominate one director of EDENOR, Dolphin shall (i) immediately inform EDFI of
the filing (or threatened filing in writing) of any bankruptcy petition filed
by a third party; (ii) deliver to EDFI all the documentation necessary for EDFI
to adequately assess the terms and grounds of any such bankruptcy petition (or
threat thereof) and (iii) use its best efforts to take into account any
comments provided by EDFI to such bankruptcy petition in EDENOR’s response to
any such petition (or threat thereof), provided such comments are furnished to
Dolphin and EDENOR within 2 court days of Dolphin’s notification of such
petition to EDFI.

 

SECTION 3.07.  Indemnity.  Dolphin shall cause EDENOR to hold any
director nominated by EDFI in accordance with the terms and conditions of this
Agreement, as well as the member of the Auditors Committee nominated by EDFI,
harmless from and against any claim, demand, cost, damages, expenses and/or
liabilities of any nature incurred or sustained by them as a result of or in
connection with their position held in EDENOR, including reasonable fees of the
legal counsel to be selected by EDFI, except in case of willful misconduct of
any of such directors or member of the Auditors Committee.  In addition, Dolphin shall cause EDENOR to
bear reasonable fees of legal counsel selected by EDFI to defend former
directors, officers and members of the Auditors Committee of EDENOR in
connection with any claim they may suffer as a result of actions taken prior to
the Closing, except in case of willful misconduct of any of such former
directors, officers or members of the Auditors Committee.  Dolphin shall refrain from, and cause EASA
and EDENOR to refrain from, filing any claim of any nature against any former
director, officer or member of the Auditors Committee of EDENOR arising from or
in connection with their position held in EDENOR, except in case of willful
misconduct of any of such directors, officers or member of the Auditors
Committee.

 

SECTION 3.08.  Commitment of EDFI.  EDFI commits to (i) instruct the directors of
EDENOR nominated by it to vote favourably any board decision regarding the
restructuring of EDENOR’s indebtedness, (ii) vote favourably as a shareholder
of EDENOR any shareholders decision regarding the restructuring of EDENOR’s
indebtedness and (iii) vote favourably, or cause any affiliated party to vote,
any indebtedness of EDENOR held by EDF: or such other affiliated party,
regarding any restructuring proposal made by EDENOR to its creditors.  In all these cases, this commitment applies
to the extent any such decision or proposal is in agreement with the Indicative
Debt Restructuring Agreement.

 

7

 

ARTICLE IV

RELATED AGREEMENTS

 

SECTION 4.01.  Execution of Related Agreements.  (a) Prior to the execution of this Shareholders
Agreement the parties hereof (or any Affiliate or permitted assignee thereof)
have entered into the following Agreements:

 

(i)            Purchase
Agreement.  Purchase Agreement
entered into between EDFI and Dolphin Energia whereby the parties agree to the
purchase by Dolphin Energia and IEASA of 216,965,889 shares representing 100%
of the capital stock and voting rights of EASA, and by NEV of 116,425,420
shares representing 14% of the capital stock and voting rights of EDENOR, as
amended as of the date hereof.

 

(ii)           Commitment
Agreement to Execute a Technical Assistance Agreement.  Agreement to Execute a Technical Assistance
Agreement entered into between Dolphin Energia and EDF:.

 

(b)           On or before Closing, the parties
hereof (and/or their Affiliates), will have entered into the other Related
Agreements referred to in Section 2.04(vii) of the Purchase Agreement, and such
other agreements as they may agree.

 

ARTICLE V

REGISTRATION RIGHTS

 

SECTION 5.01.  Registration Rights.  Simultaneously with the Closing of the
transaction pursuant to the Purchase Agreement, Dolphin shall sign and shall
cause EDENOR to sign, a registration rights agreement among Dolphin Energia,
EDENOR and EDFI (the “Registration Agreement”).  Under such Registration Agreement, EDFI shall
have the right to request in writing that EDENOR register and/or list the Class
B Shares (a “Request”) (which Request shall indicate the intended method
or methods of disposition thereof) by filing with the relevant authorities
either in (i) New York, (ii) London or (iii) Paris, as determined by EDENOR, a
registration statement or other applicable required listing document of EDENOR
that covers the Class B Shares requested to be included therein pursuant to the
Request.  The parties agree that EDENOR
shall not be obligated to effect a demand registration unless a minimum of 10%
of EDENOR’s capital stock provide notice of such demand and such 10% is to be
offered under the correspondent registration statement.

 

ARTICLE VI

TRANSFER OF SHARES RESTRICTIONS AND UNDERTAKINGS

 

SECTION 6.01.  Tag-Along Right.  (a) With respect to any proposed direct or
indirect transfer by Dolphin of its Shares (other than an Excluded Dolphin
Transaction and subject to Section 6.01(e)) including any proposed transfer by
EASA of its Class A Shares, to any person, whether pursuant to a stock sale, a
tender or exchange offer or any other sale transaction (any such transaction, a
“Dolphin Sale”), Dolphin will have the obligation, and EDFI

 

8

 

will have the right, to
require the proposed transferee (a “Proposed Transferee”) to purchase
from EDFI a pro-rata number of Shares upon the same terms and conditions
(including time of payment and form of consideration) as to be paid and given
to Dolphin; provided, that EDFI shall not be required to make representations,
warranties or covenants or provide indemnification with respect to any matter
other than its ownership of the Shares transferred, its ability to transfer
such Shares free and clear of all encumbrances and its authority and due
authorization to transfer such shares. 
Each party will be responsible for its pro-rata share of the costs
incurred in connection with the Dolphin Sale to the extent not paid or
reimbursed by the Proposed Transferee, except for the investment banking fees
provided for in Section 6.01(c) below which shall be borne by the parties as
provided therein.  For purposes of this
Shareholders Agreement, a party’s “pro-rata share” of its Shares shall be
determined by reference to the aggregate percentage of Shares being offered for
sale by the person proposing to transfer such Shares with respect to such
person’s aggregate holdings of all Shares at the time of such sale under this
Article VI.

 

(b)           Dolphin will give notice to EDFI of
each proposed Dolphin Sale at least 30 days prior to the proposed consummation
of such Dolphin Sale (other than in the case of an Excluded Dolphin Transaction
or an auction pursuant to the culmination of a “Periodo de Gestión” under the
Concession Contract), setting forth the number of Shares proposed to be so
transferred, the name and address of the Proposed Transferee, the proposed
amount, form of consideration and other terms and conditions, including, but
not limited to, conditions of payment, offered by the Proposed Transferee and a
representation that the Proposed Transferee has been informed of the tag-along
rights provided for in this Section 6.01. 
Dolphin will deliver or cause to be delivered to EDFI copies of all
transaction documents relating to the proposed Dolphin Sale as the same become
available.  The tag-along rights provided
by this Section 6.01 must be exercised by EDFI within 25 days following receipt
of (i) the notice required by the preceding sentence or (ii) the notice to be
given to Dolphin and EDFI in accordance with Section 6.01(c) below, as the case
may be, by delivery of a written notice to Dolphin indicating its desire to
exercise its rights and specifying the number of Shares it desires to sell.  EDFI will be entitled under this Section 6.01
to transfer to the Proposed Transferee only the number of Shares calculated in
accordance with Section 6.01(a).

 

(c)           In case that the consideration
offered to Dolphin by the Proposed Transferee were other than Cash or
Marketable Securities (“In-Kind Consideration”), Dolphin and EDFI shall
agree on the valuation of the In-Kind Consideration to be received from the
Proposed Transferee.  In case that an
agreement were not reached within 10 days as from receipt by EDFI of the notice
referred to in Section 6.01(b) above, EDFI and Dolphin shall select and hire a
first rate investment bank from those identified in the list of institutions
included in Exhibit A in order to provide a Cash value of the In-Kind
Consideration so offered.  Such investment
bank shall provide its valuation to EDFI and Dolphin within 30 days.  Dolphin and EDFI shall share the costs
incurred in connection with this valuation, to the extent not paid or
reimbursed by the Proposed Transferee.

 

(d)           If EDFI exercises its rights under
Section 6.01, the closing of the purchase of the Shares with respect to which
such rights have been exercised will take place concurrently with the closing
of the sale of Shares to be transferred by Dolphin to the Proposed Transferee,
provided that in the event the sale involves In-Kind Consideration as provided
in Section 6.01(c),

 

9

 

Dolphin shall receive the
In-Kind Consideration that otherwise would have been paid to EDFI from the
purchase of the Shares and pay EDFI in exchange for such In-Kind Consideration
at Closing the Cash value of such In-Kind Consideration as determined pursuant
to Section 6.01(c).

 

(e)           In case of a Block Trade, Dolphin
shall be required to notify EDFI in writing of the occurrence of such Block
Trade upon settlement of such Block Trade. 
Such notice shall include the number of Shares transferred and the price
paid to Dolphin per share (net of expenses). 
EDFI shall have 15 days from the receipt of Dolphin’s notice to decide
whether to require Dolphin to acquire from EDFI EDFI’s pro rata share that, had
Section 6.01(a) and (b) applied, been subject to such tag-along
provisions.  If EDFI indicates its desire
to sell such shares to Dolphin, Dolphin shall have 10 days to effect such acquisition
paying the same per share consideration (and on the same terms) received (or to
be received by it) in connection with such Block Trade (net of expenses).

 

(f)            In the case of an auction of A
shares pursuant to the Concession Contract at the end of a “Periodo de Gestión” where Dolphin is not
the winner, Dolphin shall be required to promptly notify EDFI in writing of the
terms of such sale.  EDFI shall have 15
days from the receipt of Dolphin’s notice to decide whether to require Dolphin
to acquire from EDFI a corresponding pro rata portion of EDFI Shares calculated
according to Section 6.01(a).  If EDFI
indicates its desire to sell such Shares to Dolphin, Dolphin shall have 10 days
to effect such acquisition paying the same per Share consideration (and in the
same terms) received (or to be received by it) in connection with such auction
of Class A shares.

 

SECTION 6.02.  Drag-Along Right.  (a) (i) In case that Dolphin or any of its
Affiliates do not pay the Put Option (as such term is defined below) within 90
days of its exercise by EDFI, or (ii) in case EDENOR defaults in the payment of
any fees due under the Technical Assistance Agreement and any such default
under the Technical Assistance Agreement is not remedied within 45 days of
EDENOR and Dolphin having received a written default notice from EDFI, EDFI
shall have, for a period of 12 months from the last date in which Dolphin could
have paid the Put Option in case (i), and for a period of 12 months from the
date of such payment default in case (ii), a right to sell to a bona fide third
party all of NEV’s Shares, Dolphin Energia’s shares in EASA, and IEASA’s shares
in EASA (the “Drag-Along Right”). 
Dolphin hereby agrees and Dolphin shall cause EASA to agree (and by
executing this Shareholders Agreement irrevocably grants to EDFI the required
powers of attorney, in the form attached hereto as Exhibit B, Exhibit C and
Exhibit D respectively) that, if requested by EDFI pursuant to this Section
6.02(a), Dolphin and EASA will transfer to such bona fide third party, all of
NEV’s Shares, Dolphin Energy’s shares in EASA and IEASA’s shares in EASA
receiving the same terms and conditions (including time of payment and form of
consideration) as to be paid and given to EDFI, provided that the price of
Dolphin’s EASA shares shall be adjusted if applicable based on any net debt
that EASA may have.  Upon completion of
such transfer all rights and obligations of the parties under the Put Option
shall be extinguished.

 

(b)           In connection with the Drag-Along
Right, EDFI shall have the right to cause EDENOR, EASA and NEV to provide EDFI’s
legal and financial advisors and any potential buyers with reasonable access
subject to a Confidentiality Agreement; to EDENOR’s, EASA’s and NEV’s officers,
advisors, auditors, legal counsel, operations and books and records

 

10

 

of the companies in order
to consummate a sale process of its Shares subject to the Drag-Along Right.

 

(c)           EDFI will give notice (the “Drag-Along
Notice”) to Dolphin Energia and/or EASA and/or NEV and/or IEASA as the case
may be, of any proposed transfer giving rise to the tights of EDFI set forth in
Section 6.02(a).  The Drag-Along Notice
will set forth, the name and address of the third party and the proposed amount
and form of consideration.  EDFI will
notify Dolphin at least 30 days in advance of entering into a definitive
agreement in connection with such offer. 
In any such agreement, Dolphin will be required to pay its proportionate
share of the costs incurred in connection with such transfer to the extent not
paid or reimbursed by the third party. 
Such Drag-Along Notice may be amended at any time by EDFI and shall
remain valid for the 12-month time-period contemplated in Section 6.02(a),
subject to Section 6.02(d).

 

(d)           Notwithstanding the above, in case
that the Drag-Along Right is exercised pursuant to Section 6.02(a) above and
the consideration for the Shares offered by the third party were less than the
Put Option Exercise Price (as such term is defined below), then the Drag-Along
Notice shall also constitute an irrevocable offer to sell EDFI’s Shares (the “Offered
Equity”) for the same consideration and on the same terms and conditions
set forth by the third party.  In such
case, Dolphin shall have the right, for a period of 25 days after the
Drag-Along Notice is given (the “Response Period”) to purchase, pursuant
to the Drag-Along Notice, in whole but not in part, the Offered Equity,
exercisable by delivering (i) a written notice to EDFI, within the Response
Period, stating therein that all of the Offered Equity will be purchased and
(ii) a Stand-By Letter of Credit supporting the obligation of Dolphin to pay in
full the purchase price for the Offered Equity. 
If Dolphin exercises such a right, the Drag Along right will no longer
be exercised and all right and obligations of the parties under the Put Option
shall be extinguished.

 

SECTION 6.03.  Put Option.  (a) Dolphin hereby grants to EDFI the right
and option to require Dolphin, at any time between April 1, 2013 and April 30,
2013 and between April 1, 2014 and April 30, 2014 (the “Put Option Exercise
Period”), subject to the procedure set out in Section 6.03(b), to purchase,
or cause Dolphin’s Affiliates to purchase for Dolphin, all, but not less than
all, of the Shares beneficially owned by EDFI at that time upon the terms and
conditions set forth in this Shareholders Agreement (the “Put Option”)
for the amount calculated pursuant to the following formula (the “Put Option
Exercise Price”):

 

(EBITDA x Multiple — Net Debt) x Percentage — PCB Penalties,

 

whereby:

 

(i)            EBITDA is equal to the operating
profit, excluding non-recurrent and extraordinary items, plus depreciation and
amortization of EDENOR, based on the consolidated audited financial statements
for the twelve-month period ending on December 31 of the year preceding the Put
Option Exercise Period;

 

(ii)           Multiple is equal to 6;

 

11

 

(iii)          Net Debt is equal to the financial
liabilities (other than financial liabilities arising out of PCB Penalties)
minus cash, cash equivalents and unconsolidated investments of EDENOR (adding
to this cash amount any payment made, cost incurred or consideration given in
relation to the PCB Penalties), based on the consolidated audited financial
statements for the twelve-month period ending on December 31 of the year
preceding the Put Option Exercise Period;

 

(iv)          Percentage is equal to the Shares of
EDFI divided by the total issued and outstanding shares of EDENOR;

 

(v)           PCB Penalties equals without any
double counting (a) 50% of all legal expenses, fines, penalties and losses
incurred by EDENOR as from Closing arising specifically as a consequence of the
case referred to in Schedule 6.03(a)(v) minus (b) 50% of any insurance proceeds
paid to, and any tax benefits, if any, effectively obtained by EDENOR arising
from the case referred to in Schedule 6.03(a)(v); and

 

(vi)          For purposes of interpretation of this
Section 6.03(a), all terms used herein shall be interpreted in accordance with
Argentine GAAP.

 

(b)           EDFI may exercise the Put Option by
delivering an irrevocable written notice (the “Put Notice”) to Dolphin
of its determination to exercise the Put Option and indicating the Put Option
Exercise Price.  EDFI may deliver the Put
Notice at any time during the Put Option Exercise Period.  The Put Option Exercise Period shall be
automatically extended in the case that the audited consolidated financial
statements have not been approved by EDENOR, issued and delivered to EDFI by
March 10, 2013 (for the Put Option Exercise Period commencing on April 1, 2013
and ending on April 30, 2013) and by March 1C, 2014 (for the Put Option
Exercise Period commencing on April 1, 2014 and ending on April 30, 2014).  Upon receipt of the Put Notice, Dolphin shall
have 90 days to purchase, or cause its Affiliates to purchase, all the Shares
owned by EDFI or its Affiliates in cash upon the terms and conditions set forth
in this Shareholders Agreement or otherwise be subject to the Drag-Along Right
described in Section 6.02.

 

(c)           The Put Option shall terminate upon a
sale by Dolphin or any of its Affiliates to a new third party transferee (a “Transferee”)
of a direct or indirect equity participation in EDENOR in accordance with the
terms and conditions of this Shareholders Agreements if (i) after the
consummation of such sale Dolphin either directly or indirectly through any of
its Affiliates (a) would hold less than a majority of the voting securities of
EDENOR, or (b) would not have the right to appoint a majority of the Board of
Directors of EDENOR; and (ii) the terms of such sale imply that (a) the
consideration to be received by EDFI upon its exercise of the Tag-Along Right
is higher than the Put Option Exercise Price (calculated using the formula
provided for in Section 6.03(a) and the audited consolidated financial
statements of EDENOR for the fiscal year immediately prior to the date in which
Dolphin wishes to sell its direct and indirect equity participation in EDENOR)
to be received by EDFI by exercising the Put Option at such point in time, and
(b) EDFI having the opportunity to exercise its Tag-Along Right decided not to
do so.

 

12

 

SECTION 6.04.  Call Option.  (a) EDFI hereby grants to Dolphin the right and
option to require EDFI, at any one time between April 1, 2015 and April 30,
2015 and between April 1, 2016 and April 30, 2016 (the “Call Option Exercise
Period”), subject to the procedure set out in Section 6.04(b), to sell, or
cause EDFI’s Affiliates to sell, all, but not less than all, of the Shares
beneficially owned by EDFI to Dolphin, upon the terms and conditions set forth
in this Shareholders Agreement (the “Call Option”) for the amount
calculated pursuant to the following formula (the “Call Option Exercise
Price”):

 

(EBITDA x Multiple – Net Debt) x Percentage – PCB Penalties,

 

whereby:

 

(i)            EBITDA is equal to the operating
profit, excluding non-recurrent and extraordinary items, plus depreciation and
amortization of EDENOR, based on the consolidated audited financial statements
for the twelve-month period ending on December 31 of the year preceding the
Call Option Exercise Period;

 

(ii)           Multiple is equal to 6;

 

(iii)          Net Debt is equal to the financial
liabilities (other than financial liabilities arising out of PCB Penalties)
minus cash, cash equivalents and unconsolidated investments of EDENOR (adding
to this cash amount any payment made, cost incurred or consideration given in
relation to the PCB Penalties), based on the consolidated audited financial
statements for the twelve-month period ending on December 31 of the year
preceding the Call Option Exercise Period;

 

(iv)          Percentage is equal to the Shares of
EDFI divided by the total issued and outstanding shares of EDENOR;

 

(v)           PCB Penalties equals without any
double counting (a) 50% of all legal expenses, fines, penalties and losses
incurred by EDENOR as from Closing arising specifically as a consequence of the
case referred to in Schedule 6.03(a)(v) minus (b) 50% of any insurance proceeds
paid to, and any tax benefits, if any, effectively obtained by EDENOR arising
from the case referred to in Schedule 6.03(a)(v);

 

(vi)          For purposes of interpretation of this
Section 6.04(a), all terms used herein shall be interpreted in accordance with
Argentine GAAP.

 

(b)           Dolphin may exercise the Call Option
by delivering an irrevocable written notice (the “Call Notice”) to EDFI
of its determination to exercise the Call Option and indicating the Call Option
Exercise Price.  Dolphin may deliver the
Call Notice at any time during the Call Option Exercise Period.  Upon receipt of the Call Notice, EDFI shall
be obligated for a time period not to exceed 90 days, to sell, or cause its
Affiliates to sell, to Dolphin, for cash, all the Shares owned by EDFI or its
Affiliates upon the terms and conditions set forth in this Shareholders
Agreement.

 

SECTION 6.05.  Right of First Offer.  Except in the case of a transfer to an EDFI’s
Transferee, as provided for in Section 9.05(a):

 

13

 

(a)           If EDFI desires to directly or
indirectly (including by transferring equity in an entity that owns the Shares
except as set forth in clause (d) below) transfer any Shares, EDFI shall, prior
to consummating any such transfer, deliver a notice to Dolphin stating the
number of Shares to be directly sold or in the case of indirect transfers; the
number of shares to be sold of the entity that owns the Shares, the requested
consideration and other relevant terms and conditions.  Such delivery shall constitute an irrevocable
offer to sell (the “Sale Offer”) the relevant Shares or shares of the
entity that owns the Shares, as the case may be (the “Offered  Equity”). 
Dolphin shall have the right, for a period of 30 days after the Sale
Offer is given (the “Response Period”) to purchase pursuant to the Sale
Offer, in whole but not in part, the Offered Equity, exercisable by delivering
(i) a written notice to EDFI (the “Acceptance Letter”), within the
Response Period, stating therein that all of the Offered Equity will be
purchased and (ii) a Stand-By Letter of Credit supporting the obligation of
Dolphin to pay in full the purchase price for the Offered Equity.

 

(b)           If Dolphin shall have notified EDFI
within the Response Period that Dolphin desires to purchase all, and not less
than all, of such Offered Equity and shall have delivered a Stand-By Letter of
Credit supporting the obligation of Dolphin to pay in full the purchase price
for the Offered Equity, Dolphin shall have 60 calendar days from the Response
Period to complete such purchase.

 

(c)           If Dolphin shall (i) not have
delivered the Acceptance Letter and an acceptable Stand-By Letter of Credit
within the Response Period, or (ii) not have completed such purchase within
such 90-calendar-day period, then EDFI shall have the right, but not the
obligation, to sell its Offered Equity to any person at the price and on the
terms and conditions at least as favorable as those set forth in the Sale
Offer, provided, that, if such sale of the Offered Equity is not closed by EDFI
within one calendar year following expiration of the Response Period, then EDFI
shall again be obliged to make to Dolphin a Sale Offer upon determining EDFI’s
desire to consummate a transaction to transfer any Shares of EDENOR held by it.

 

(d)           The first offer right contemplated
hereunder shall not apply (i) in case of indirect sales of Shares if the
indirect transfer of Shares is effected through the sale of equity of an EDFI
Affiliate whose primary assets are not the Shares, (ii) any transfer of Class B
Shares in a public market sale (whether through brokers or otherwise), provided
such transfer (a) involves in any year less than 3% of the issued and
outstanding Shares and (b) is effected in a manner designed to be widely
dispersed in the market, or (iii) in cases of sales through a public offering
pursuant to the exercise of the rights provided under Section 5.01.

 

SECTION 6.06.  Unpaid Management Fee.  Each of the parties agrees bat the unpaid
Management Fee owed to EDF pursuant to the Management, Supervision and
Technical Assistance Agreement dated as of March 9, 1993 (the “MTA”) shall, on
the Closing Date, be reduced to US$ 5,200,000 and is payable upon Closing or
immediately thereafter.  EDFI shall take
all acts necessary to assign to Dolphin all of its rights to payment of such
annual installments al Closing.  All fees
under the MTA shall stop accruing and cease to become due and payable as of
April 1st, 2005.

 

14

 

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

 

SECTION 7.01.  Representations and Warranties of the
parties.  Each party hereby
represents and warrants to each party as follows and acknowledges that each
other party is relying upon such representations and warranties in entering
into this Shareholder Agreement, which representations and warranties shall
remain true and in effect as of Closing:

 

(a)           Authority.  Each Shareholder has all the necessary legal
power, authority and capacity to enter into this Shareholder Agreement and
perform its obligations hereunder;

 

(b)           No Violation.  Neither the execution and delivery of this
Shareholder Agreement by each Shareholder nor the performance by each
Shareholder of such Shareholder’s obligations hereunder will conflict with or
result in the violation of any of the terms and provisions of any agreement,
obligation, contract or commitment to which such Shareholder is a party to and
by which such Shareholder is bound; and

 

(c)           Legal, Binding Obligation.  All necessary actions have been taken by such
Shareholder to authorize execution and delivery of this Shareholder Agreement
by such Shareholder and the performance by such Shareholder of its obligations
hereunder, and this Shareholder Agreement has been duly executed and delivered
by such Shareholder and constitutes the legal, valid and binding obligation of
such Shareholder, enforceable against such Shareholder in accordance with its
terms.

 

ARTICLE VIII

SPECIFIC PERFORMANCE

 

SECTION 8.01.  Specific Performance.  The parties agree that irreparable damage would
occur in the event that any of the provisions of this Shareholder Agreement
were not performed in accordance with their specific terms or were otherwise
breached.  Accordingly, the parties shall
be entitled to an injunction or injunctions to prevent breaches of this
Shareholder Agreement, without any bond or other security being required, and
to enforce specifically the terms and provisions of this Shareholder Agreement;
this being in addition to any other remedy to which they are entitled at law or
in equity.  Upon the occurrence of
default, late-payment interest will accrue on all unpaid amounts at an interest
rate of LIBOR plus 3%, compounded quarterly, from the date the obligation is
due to the date of actual payment.

 

ARTICLE IX

MISCELLANEOUS

 

SECTION 9.01.  Confidentiality.  Neither Shareholder nor any of its officers,
directors and/or employees shall make any public announcement, press release,
or disclosure to any third party of the terms and conditions of this
Shareholder Agreement without the prior written consent of the other
Shareholder.  Any information expressly
required by their legal or contractual obligations is excepted from this
limitation.

 

15

 

SECTION 9.02.  Governing Law.  This Shareholder Agreement shall be governed
by and interpreted in accordance with the law of New York (without regard to
conflicts of laws principles).  EDFI and
Dolphin agree not to assert any claim against each other or any of their
respective directors, officers, employees, attorneys and agents, on any theory
of liability, for special, indirect, consequential or punitive damages arising
out of or otherwise relating to this Shareholder Agreement.

 

SECTION 9.03.  Arbitration.  Any dispute arising out of or in connection
with this Shareholder Agreement shall, in addition to the rights of the parties
under Section 8.01, be finally settled under the Rules of Arbitration of the
International Chamber of Commerce by three arbitrators, appointed in accordance
with the said Rules.  The arbitration
procedure shall be conducted in English and located in Geneva,
Switzerland.  Each party hereby waives
any and all rights to contest the execution of any arbitral decision arising
from this Section 9.03 in any proceeding whatsoever.  For purposes of the arbitration procedure
agreed upon hereby, Dolphin Energia, EASA, NEV, IEASA and Eligible Transferee
shall be considered, and shall act as, a single party, represented by unified
counsel.

 

SECTION 9.04.  Prohibition to assign.  The Shareholders may not assign or transfer
this Shareholder Agreement under any circumstance, except as stipulated in
Section 9.05.

 

SECTION 9.05.  Non-Termination upon Transfer.  (a) (i) EDFI and Dolphin shall have the
right, at any time during the term of this Shareholder Agreement, to assign a
portion or all of its rights and obligations in this Shareholder Agreement to
an Affiliate.  In order for a sale (and
transfer of rights and/or obligations) of either EDFI or Dolphin to an
Affiliate to be effective, the transferee must adhere to the terms and
conditions of this Shareholder Agreement and assume in writing pursuant to
Section 2.03 hereof all rights and obligations of the transferor to the extent
of its equity participation, directly or indirectly, in EDENOR.  In any case and notwithstanding anything to
the contrary above, each of EDFI and Dolphin shall remain liable for the
obligations of its transferee pursuant to this Agreement so long as the
transferee is controlled by, or is in common control with, such party.

 

(ii)           Except for the rights and obligations
of EDFI under Articles III and IV and, to the extent provided below, Sections
6.01 to 6.03 of this Shareholder Agreement, all other rights and obligations of
EDFI under this Shareholder Agreement shall be effectively transferred upon a
partial or total sale by EDFI or its Affiliate (an “EDFI Transferee”) of
its direct and indirect equity participation in EDENOR, in accordance with the
terms and conditions of this Shareholders Agreement, to a new third-party transferee
(a “Third-Party Transferee”).  In
order for a sale of EDFI’s Transferee of its direct and indirect equity
participation in EDENOR to be effective, the Third-Party Transferee must adhere
to the terms and conditions of this Shareholder Agreement and assume all rights
and obligations of EDFI or EDFI’s Transferee to the extent of its equity
participation, directly or indirectly in EDENOR.

 

(b)           The rights and obligations of Dolphin
in this Shareholder Agreement shall be effectively transferred upon a partial
or total sale of their direct and indirect equity participation in EDENOR to a
Transferee and, if applicable, any Affiliate of such Transferee (provided that
such sale is not considered an Excluded Dolphin Transaction under section (ii)

 

16

 

and (iii) of such
definition) if after consummation of such sale (i) Dolphin either directly or
indirectly through any Affiliate (a) would hold less than a majority of the
voting securities of Edenor, or (b) would not have the right to appoint a
majority of the Board of Directors of EDENOR, or (ii) such Transferee, together
with any Affiliate of such Transferee, would effectively hold an equity
participation directly or indirectly of at least 20% of the Shares of EDENOR.  In order for such sale of its direct and
indirect equity participation in EDENOR to be effective, the Transferee and any
Affiliate of such Transferee must adhere to the terms and conditions of this
Shareholder Agreement and assume all rights and obligations of Dolphin and EASA
to the extent of its equity participation, directly or indirectly, in EDENOR.

 

(c)           Notwithstanding anything to the
contrary, any transfer of EDFI’s rights with regards to Sections 6.01 to 6.03
hereof shall be limited as follows: (a) these rights may be transferred to no
more than two Third Party Transferees, provided that any such Third Party
Transferee shall hold at least 5% of the Shares of EDENOR; and (b) if at any
time either EDFI and one Third Party Transferee or two Third Party Transferees
maintain the right to exercise the Put Option and one such party exercises the
Put Option, only the party that exercised the Put Option will be accordingly
entitled to exercise the Drag-Along Right provided in Section 6.02 and the
second party shall be prohibited from exercising its rights under the Put
Option until the expiration of the Drag-Along Right period provided for in
Section 6.02 so long as the second party is given a full Tag-Along Right in
connection with such Drag-Along Right.

 

SECTION 9.06.  Severability.  If any provision of this Shareholder
Agreement becomes illegal, invalid, null or otherwise nonenforceable, the
remaining sections and provisions hereof shall remain in full force and effect,
and the Shareholders agree to negotiate in good faith another legally binding
clause equivalent to that clause declared to be illegal, invalid, null or
otherwise nonenforceable, thereby overcoming the legal defect that rendered it
invalid.

 

SECTION 9.07.  Fees and Expenses.  The Shareholders agree to bear their own fees
and expenses in connection with the preparation and negotiation of this
Shareholder Agreement and that such fees and expenses shall not be the
responsibility or obligation 3f any other Shareholder hereto, including, without
limitation, the fees and expenses of any lawyers, accountants or investment
banking firms retained in connection herewith.

 

SECTION 9.08.  Domiciles and Notices.  (a) For all legal purposes of this
Shareholder Agreement, the Shareholders establish their respective domiciles as
set forth below, where all notices to be given hereunder shall be deemed valid:

 

	
  If to EDFI:

  
	
  Direction
  Générale

  
	
  20 place de la
  Défense

  
	
  TOUR EDF

  
	
  92050 Paris la
  Défense

  
	
  FRANCE

  
	
  Fax number:  00.33.1.56.65.22.31

  

 

17

 

	
  If to Dolphin Energía:

  
	
  Bouchard 547, 26th Floor

  
	
  Buenos Aires

  
	
  ARGENTINA

  
	
  Fax Number:  (54-11) 4510-9555

  
	
   

  
	
  If to IEASA:

  
	
  Bouchard 547,
  26th Floor

  
	
  Buenos Aires

  
	
  ARGENTINA

  
	
  Fax Number:  (54-11) 4510-9555

  
	
   

  
	
  If to EASA:

  
	
  Bouchard 547,
  26th Floor

  
	
  Buenos Aires

  
	
  ARGENTINA

  
	
  Fax Number:  (54-11) 4510-9555

  
	
   

  
	
  If to NEV

  
	
  Bouchard 680,
  14th Floor

  
	
  Buenos Aires

  
	
  ARGENTINA

  
	
  Fax Number:  (54-11) 5236-4401

  

 

(b)           Notices, which must be in writing,
may be given personally, by fax or private courier, return receipt requested,
or by certified letter, addressed to the foregoing domiciles.  The addresses set forth above may be changed
at any time by giving due notice thereof to the other Shareholder.

 

IN WITNESS WHEREOF, this Purchase Agreement is executed in Buenos
Aires, as of the date first above written, in 5 counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute
one and the same instrument.

 

	
   

  	
  EDF INTERNATIONAL S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

18

 

	
   

  	
  DOLPHIN ENERGIA S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ELECTRICIDAD ARGENTINA S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW EQUITY VENTURES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IEASA S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

19Exhibit
4.3

 

EXECUTION
COPY

 

REGISTRATION RIGHTS AGREEMENT

 

dated as of September 15, 2005

 

between

 

EMPRESA DISTRIBUIDORA y
COMERCIALIZADORA NORTE S.A.,

 

DOLPHIN ENERGÍA S.A.

 

and

 

EDF INTERNATIONAL S.A.

 

 

REGISTRATION RIGHTS
AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (“Agreement”),
dated as of September 15, 2005, between Empresa Distribuidora y
Comercializadora Norte S.A., a sociedad
anómima organized under the laws of Argentina (the “Company”),
Dolphin Energia S.A., a sociedad anómima
organized under the laws of Argentina (“Dolphin”) and EDF International
S.A., a société anonyme organized
under the laws of the Republic of France (“EDFI”). Each of the Company,
EDFI and Dolphin may be referred to as a “Party” and collectively they
may be referred to as the “Parties”.

 

WITNESSETH:

 

WHEREAS, the Company, Dolphin and EDFI and have
entered into a purchase agreement, dated as of June 10, 2005 (the “Purchase
Agreement”), pursuant to which, upon the closing of the transactions
contemplated thereunder, Dolphin and certain other parties, directly and
indirectly, will have acquired, from EDFI among other things, 14% of the issued
and outstanding Class B Shares of the Company, and EDFI will retain ownership
of 25% of the Class B Shares of the Company;

 

WHEREAS, as an inducement to EDFI entering into the
Purchase Agreement, EDFI and Dolphin have required that the Company agree, and
the Company has agreed, to provide the rights set forth in this Agreement; and

 

WHEREAS, the consummation of the Closing (as such term
is defined in the Purchase Agreement) is conditioned upon, among other things,
the execution and delivery of this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual premises, covenants and agreements of the parties hereto, and for
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto agree as follows:

 

SECTION 1. DEFINITIONS.

 

1.1.                              Capitalized Terms. Capitalized terms used but not defined
herein shall have the respective meanings assigned to such terms in the
Purchase Agreement.

 

1.2.                              Defined Terms. As used in this Agreement, the
following terms shall have the following meanings:

 

“Adverse Disclosure” means public disclosure of
material non-public information, disclosure of which, in the Board’s good faith
judgment, after consultation with independent outside counsel to the Company,
(i) would be required to be made in any Registration Statement filed by the
Company so that such Registration Statement would not be false or misleading in
any material respect and would comply with English Law (including so that it
would contain all necessary information as defined in Section 87A of the FSMA)
or French Law, as applicable; (ii) would not be required to be made at such
time but for the filing or

 

1

 

publication of such Registration Statement; and (iii)
would have a material adverse effect on the financial condition, results of
operations, business or prospects of the Company and its subsidiaries, taken as
a whole.

 

“Affiliates” has the meaning set forth in the
Shareholders Agreement dated the date hereof among Dolphin, Electricidad
Argentina S.A. and EDFI.

 

“Agreement” has the meaning set forth in the
preamble hereto.

 

“AMF” means the French Autorité des marchés financiers or any
successor thereto.

 

“Argentina” means the Republic of Argentina.

 

“Board” means the Board of Directors or other
supervisory committee or body of the Company or any other entity, as
applicable.

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which banking institutions in New York, Buenos
Aires, Paris or London are authorized or obligated to be closed.

 

“Capital Stock” means at any time all of the
issued and outstanding capital stock of the Company, which as of the date
hereof is composed of class A shares, Class B Shares, and class C shares.

 

“Class B Shares” has the meaning set forth in
the recitals hereto.

 

“Company” has the meaning set forth in the
preamble hereto.

 

“Company Sale” has the meaning set forth in
Section 2.2(a).

 

“Demand Notice” has the meaning set forth in
Section 2.1(c).

 

“Demand Period” has the meaning set forth in
Section 2.1(d).

 

“Demand Registration” has the meaning set forth
in Section 2.1(a).

 

“Demand Registration Statement” has the meaning
set forth in Section 2.1(a).

 

“Demand Suspension” has the meaning set forth
in Section 2.1(c).

 

“Depositary Shares” means American Depositary
Shares, Global Depositary Shares or other securities representing Ordinary
Shares.

 

“English Law” means any Statute, Act, Order,
rule or regulation enacted by any English governmental authority or agency or
stock exchange, including, without limitation, FSMA and the rules of the
Financial Services Authority, whether in its capacity as the UK Listing
Authority or otherwise, and the rules of the LSE and the Admission and
Disclosure Standards.

 

2

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and any successor thereto, and any rules and
regulations promulgated thereunder, all as the same shall be in effect from
time to time.

 

“French Law” means any Statute, Act, Order,
rule or regulation enacted by any French governmental authority or agency,
including, without limitation, the rules of the French Listing Authority as
well as any rules and regulations of the European Union applicable to the
listing of securities in France, including, but not limited to, the 2005
European Union Prospectus Directive.

 

“French Listing Authority” means Euronext Paris
S.A. or any successor thereto.

 

“French Offer” means an offer or invitation to
persons in France to acquire Registrable Securities.

 

“FSMA” means the Financial Services and Markets
Act 2000 of the United Kingdom as amended, and any successor thereto, and any
rules and regulations promulgated thereunder, all as the same shall be in
effect from time to time.

 

“FSE” means the French Stock Exchange.

 

“Holder” means any of EDFI, Electricidad
Argentina S.A. (“EASA”) or Dolphin or any of their respective
Affiliates, assigns, designees or transferees, in each case to the extent they
beneficially own Registrable Securities.

 

“IPO” means the initial public offering to the
general public of equity securities (a) issued by the Company or a Subsidiary Registrant,
(b) registered in Argentina, the United States, or any other recognized
international securities exchange designated by the Company and (c)
underwritten on a firm or best efforts basis by an institution recognized in
the market or markets in which the offering is registered.

 

“Law” means, as applicable, any and all (i)
U.S. and foreign (including, without limitation, France and the United Kingdom)
laws, ordinances, regulations, whether federal, provincial, state or local,
(ii) codes, standards, rules, requirements and criteria issued under any U.S.
or foreign (including, without limitation, France and the United Kingdom) laws,
ordinances or regulations, whether federal, provincial, state or local, (iii)
Judgments and, for the avoidance of doubt, English Law and French Law.

 

“Listing Rules” means the rules and regulations
made from time to time by the UK Listing Authority for the purposes of Part VI
of the FSMA, including without limitation the listing rules, the prospectus
rules and the disclosure rules published by the UK Listing Authority.

 

“LSE” means the London Stock Exchange plc.

 

“NASD” means the National Association of
Securities Dealers, Inc.

 

“Party” and “Parties” have the meaning
set forth in the recitals.

 

3

 

“Person” means any individual, corporation,
limited liability company, trust, joint venture, association, company,
partnership or other legal entity or a government or any department or agency
thereof or self-regulatory organization.

 

“Piggyback Registration” has the meaning set
forth in Section 2.2(a).

 

“POS Regulations” means the Public Offers of
Securities Regulations 1995 of the United Kingdom, as amended, and any
successor thereto, as the same shall be in effect from time to time.

 

“Prospectus” means, in relation to a US Offer,
the prospectus included in any Registration Statement, including any
preliminary Prospectus, all amendments and supplements to such prospectus,
including post-effective amendments, all related stock exchange listing
materials and all other material incorporated by reference in such prospectus,
or, in relation to a UK Offer, a prospectus (including any supplementary
prospectus) published in accordance with Part VI of the FSMA and the Listing
Rules (and if published prior to the implementation of the Prospectus
Directive, the POS Regulations) or, in relation to a French Offer, a prospectus consisting of a document de
base registered with the AMF and a note
d’operation on which the AMF will grant a visa (or any successor
format for a French public offering prospectus that may in the future be
adopted by the AMF).

 

“Purchase Agreement” has the meaning set forth
in the recitals hereto.

 

“Registrable Securities” means any Series B
Common Shares of the Company held by a Person and any securities that may be
issued or distributed or be issuable in respect of any Registrable Securities
by way of conversion, dividend, stock split or other distribution, merger,
consolidation, exchange, recapitalization or reclassification or similar
transaction; provided, however, that any particular Registrable
Securities shall cease to be Registrable Securities to the extent (i) a
Registration Statement with respect to the sale of such Registrable Securities
has been declared effective under the Securities Act or declared effective or
approved and published, as applicable, under the applicable Law of the relevant
jurisdiction and such Registrable Securities have been disposed of in
accordance with the plan of distribution set forth in such Registration
Statement and/or Prospectus in each case in accordance with applicable laws,
(ii) such Registrable Securities have been distributed pursuant to Rule 144 (or
any similar provisions then in force) under the Securities Act or any other
exemption from registration under applicable Law or (iii) such Registrable
Securities shall have been otherwise transferred and, if applicable, new
certificates for them not bearing a legend restricting transfer shall have been
delivered by the Company and such securities may be publicly resold without
Registration or qualification under the Securities Act or any similar law then
in force or under the applicable Law of the relevant jurisdiction. For purposes
of this Agreement, a “class” of Registrable Securities shall mean the class of
Class B Shares of the Company and a “percentage” (or a “majority”) of the
Registrable Securities (or, where applicable, of any other securities) shall be
determined based on the number of Class B Shares.

 

“Registration” means, in the case of a US
Offer, registration with the SEC, in the case of a UK Offer, the approval and
publication of a Prospectus in accordance with FSMA, in each case with respect
to the Company’s securities for offer and sale to the public under a

 

4

 

Registration Statement and, in the case of a French
Offer, the publication of a Prospectus in France in accordance with the rules
and regulations of the AMF, and the listing of the Registrable Securities on
Eurolist by Euronext (or any successor as the principal securities trading
market in France). The term “Register” shall have a correlative meaning.

 

“Registration Expenses” has the meaning set
forth in Section 2.7.

 

“Registration Statement” means (i) any
registration statement of the Company filed with, or to be filed with, the SEC
under the rules and regulations promulgated under the Securities Act, including
the related Prospectus, amendments and supplements to such registration
statement, including post-effective amendments, and all exhibits and all
material incorporated by reference in such registration statement (ii) a
Prospectus approved and published under applicable English Law or (iii) a
Prospectus approved and published under applicable French Law.

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities Act” means the Securities Act of
1933, as amended, and any successor thereto, and any rules and regulations
promulgated thereunder, all as the same shall be in effect from time to time.

 

“UK Listing Authority” means the competent
authority for the purposes of Part VI of the FSMA.

 

“UK Offer” means a public offer to persons in
the United Kingdom to acquire Registrable Securities that would require the
publication of a prospectus under Part VI of the FSMA, or, if prior to the
implementation of the Prospectus Directive, the POS Regulations.

 

“Underwritten Offering” means a Registration in
which Registrable Securities of the Company are sold to an underwriter or
underwriters for reoffering to the public or in which an underwriter or
underwriters commit to acquire such securities if and to the extent they are
not acquired by third parties.

 

“US Offer” means an offer to persons in the
United States to acquire Registrable Securities.

 

1.3.                              General Interpretive Principles. Whenever used in this Agreement, except
as otherwise expressly provided or unless the context otherwise requires, any
noun or pronoun shall be deemed to include the plural as well as the singular
and to cover all genders. The name assigned this Agreement and the section
captions used herein are for convenience of reference only and shall not be
construed to affect the meaning, construction or effect hereof. Unless
otherwise specified, the terms “hereof,” “herein” and similar terms refer to
this Agreement as a whole (including the exhibits, schedules and disclosure
statements hereto), and references herein to Sections refer to Sections of this
Agreement.

 

5

 

SECTION 2. REGISTRATION RIGHTS.

 

2.1.                              Demand Registrations.

 

(a)                                  Demand by EDFI. At any time, or from time to time,
following the earlier of (i) the 18-month anniversary of the date hereof and
(ii) the 6-month anniversary of the date of the closing of the restructuring of
the outstanding debt of the Company and of EASA, subject to the limitations set
forth in Section 2.1(b) below, and so long as it is a holder of Registrable
Securities, EDFI may make a written request to the Company for Registration of
all or part of the outstanding shares of Registrable Securities held by EDFI. Any
such requested Registration shall hereinafter be referred to as a “Demand
Registration.”  A request for a
Demand Registration shall specify the aggregate amount of Registrable
Securities to be Registered. The Company shall have the right in its sole
discretion to determine whether to effect such Registration in either New York,
Paris or London and may, in any event, effect such Registration in Argentina as
well. The Company shall file as expeditiously as possible a Registration Statement
relating to such Demand Registration (a “Demand Registration Statement”),
and shall use its best efforts to file and effect the registration under
applicable Law. In addition, if such Registration is effected in France, the
Company shall request authorization from the French Ministry of Economy and
Finance for the offering of its securities to the public in France, in
accordance with applicable Law.

 

(b)                                 Limitation on Demand Registrations. In no event shall the Company be
required to effect and complete a Demand Registration pursuant to Section
2.1(a) if, at the time of such request, EDFI is not requesting and subsequently
registering at least 10% of the outstanding Capital Stock of the Company.

 

(c)                                  Demand Notice. Promptly upon receipt of any request
for a Demand Registration pursuant to Section 2.1(a) (but in no event more than
30 business days thereafter), the Company shall deliver a written notice (a “Demand
Notice”) of any such Registration request to all other Holders of
Registrable Securities, and the Company shall include in such Demand
Registration all such Registrable Securities with respect to which the Company
has received written requests for inclusion therein within 20 days after the
date that the Demand Notice has been delivered. All requests made pursuant to
this Section 2.1(c) shall specify the class and aggregate amount of Registrable
Securities to be registered and the intended method of distribution of such
securities.

 

(d)                                 Delay in Filing; Suspension of
Registration. If
the filing, initial effectiveness, publication or continued use of a Demand
Registration Statement at any time would require the Company to make an Adverse
Disclosure or to utilize financial statements that, in the reasonable opinion
of the independent public accountants of the Company, do not comply with
requirements of applicable law (“Financial Statement Considerations”),
the Company may, upon giving prompt written notice of such action to the
Holders, delay the filing, publication or initial effectiveness of, or suspend
use of, the Demand Registration Statement (a “Demand Suspension”); provided,
however, that the Company shall not be permitted to exercise a Demand
Suspension (A) in the case of an Adverse Disclosure, (i) more than three times
during any 24-month period, or (ii) for a period exceeding 60 days on any one
occasion and (B) in the case of Financial Statement Considerations, (i) if the
Company is not using its best efforts to

 

6

 

prepare financial statements for the Company that do
comply with requirements of applicable Law, (ii) if, despite such best efforts,
the financial statements do not so comply for a period of greater than 90 days,
or (iii) more than once with respect to a Demand Registration in each of
France, the UK and the United States. In the case of a Demand Suspension, the
Holders agree to suspend use of the applicable Prospectus in connection with
any sale or purchase, or offer to sell or purchase, Registrable Securities,
upon receipt of the notice referred to above. The Company shall immediately
notify the Holders upon the termination of any Demand Suspension, amend or
supplement the Prospectus, if necessary, so it does not contain any untrue
statement of a material fact or omission necessary to be included therein to
make the statements, in light of the circumstances in which they were made, not
misleading and furnish to the Holders such numbers of copies of the Prospectus
as so amended or supplemented as the Holders may reasonably request. The Company
represents that, as of the date hereof, it has no knowledge of any circumstance
that would reasonably be expected to cause it to exercise its rights under this
Section 2.1(d). If a Holder is required to suspend the use of a Prospectus
pursuant to this Section 2.1(d), the applicable Demand Period shall be extended
by the same number of days as the days such use is suspended.

 

(e)                                  Underwritten
Offering. If
the Company or EDFI so elects, the offering of Registrable Securities pursuant
to a Demand Registration shall be in the form of an Underwritten Offering. If
any offering pursuant to a Demand Registration involves an Underwritten
Offering, EDFI shall have the right to select the underwriter or underwriters
to administer the offering, subject to the consent of the Company, which
consent shall not be unreasonably withheld or delayed. No Holder may
participate in any Underwritten Offering hereunder unless such Holder (i)
agrees to sell such Holder’s securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires, powers of
attorney, custody agreements, indemnities, underwriting agreements and other
documents required under the terms of such Underwritten Offering.

 

(f)                                    Priority of Securities Registered
Pursuant to Demand Registrations. If the managing underwriter or underwriters of a
proposed Underwritten Offering of Registrable Securities included in a Demand
Registration (or, in the case of a Demand Registration not being underwritten,
the Company), informs the Holders of such Registrable Securities in writing
that, in its or their opinion, the number of securities requested to be
included in such Demand Registration exceeds the number which can be sold in
(or during the time of) such offering within a price range acceptable to EDFI,
then the number of Registrable Securities to be included in such Demand
Registration shall be determined pro rata
among the Holders participating in such registration on the basis of the number
of Registrable Securities requested to be included by such Holders.

 

(g)                                 Registration Statement Form. Registrations under this Section 2.1
shall be on such appropriate form of the SEC or other appropriate foreign regulatory
authorities, in the case of a French Offer or a UK Offer, (i) as shall be
selected by the Company and as shall be reasonably acceptable to EDFI and (ii)
as shall permit the disposition of such Registrable Securities in accordance
with the intended and customary method or methods of disposition specified in
such Holders’ requests for such Registration. Notwithstanding the foregoing,
if, pursuant to a Demand Registration, (x) in respect of a U.S. Offer, the
Company proposes to effect Registration by filing a Registration Statement on
Form F-3 (or any successor or similar

 

7

 

short-form registration statement), (y) such
Registration is in connection with an Underwritten Offering and (z) the
managing underwriter or underwriters shall advise the Company in writing that,
in its or their opinion, the use of another form of registration statement is
of material importance to the success of such proposed offering, then such
Registration shall be effected on such other form.

 

(h)                                 Maintenance of Effectiveness. For any Demand Registration Statement
prepared and filed pursuant to Section 2(a)(i), the Company shall use its best
efforts (i) to have such Demand Registration Statement declared effective by
the SEC, or other applicable French or English authority, as soon as
practicable after the filing of such Demand Registration Statement and (ii) to
keep such Demand Registration Statement continuously effective for a period
(the “Demand Period”) of at least 120 days following the date on which
such Demand Registration Statement is declared effective (or such shorter
period which will terminate when all of the Registrable Securities covered by
such Demand Registration Statement have been sold pursuant thereto), including,
if necessary, by filing with the SEC, or other applicable French or English
authority, a post-effective amendment or a supplement to the Demand
Registration Statement or the related Prospectus or any document incorporated
therein by reference or by filing any other required document or otherwise
supplementing or amending the Demand Registration Statement, if required by the
rules, regulations or instructions applicable to the registration form used by
the Company for such Demand Registration Statement or by the Securities Act,
the Exchange Act, any state securities or blue sky laws, any applicable French
or English securities Laws, or any rules and regulations thereunder.

 

(i)                                     Effective Registration Statement;
Suspension. Subject
to Section 2.1(h) above, a Demand Registration Statement will not be deemed to
have become effective (and the related registration will not be deemed to have
been effected) unless it has been declared effective by the SEC, or other
applicable French or English authority, prior to a request by the Holders of a
majority of the Registrable Securities included in such registration that such
Registration Statement be withdrawn; provided, however, that if, within
20 Business Days after it has been declared effective, the offering of any Registrable
Securities pursuant to such Registration Statement is directly interfered with
by any stop order of the SEC or similar order of any applicable English or
French governmental authority under English Law or French Law, such
Registration Statement will be deemed not to have become effective and the
related registration will not be deemed to have been effected.

 

2.2.                              Piggy-back Registrations.

 

(a)                                  Participation. If the Company at any time proposes to
file or publish a Registration Statement under the Securities Act or applicable
Argentine, French or English Law, respectively, with respect to any offering of
its securities for its own account or for the account of any other Persons
(other than (i) a Registration under Section 2.1 or (ii) a Registration on Form
S-4 or S-8 or any similar or successor form to such Forms or a document
referred to in Article 4.1(e) or 4.2(f) of the Prospectus Directive (such
registration pursuant to clause (ii), a “Company Sale”)), then, as soon
as practicable (but in no event less than 45 days prior to the proposed date of
filing or publishing, as the case may be, such Registration Statement), the
Company shall give written notice of such proposed filing to all Holders of
Registrable Securities and such notice shall offer the Holders of such
Registrable Securities the opportunity,

 

8

 

subject to Section 2.2(b), to Register (or, in the
case of a French or a UK Offer, to offer Registrable Securities in association
with the Company’s own offering) under such Registration Statement such number
of Registrable Securities as each such Holder may request in writing (a “Piggyback
Registration”). Pursuant and subject to Section 2.2(b), the Company shall
include in such Registration Statement all such Registrable Securities which
are requested to be included therein within 21 days after the receipt by such
Holder of any such notice; including, if necessary, filing with the SEC, or
other relevant French or English authority, a post-effective amendment or a
supplement to such Registration Statement or the related Prospectus or any
document incorporated therein by reference or filing any other required
document or otherwise supplementing or amending such Registration Statement, if
required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Registration Statement or by the
Securities Act, any state securities or blue sky laws, any applicable French or
English securities Laws or any rules and regulations thereunder; provided,
however, that if at any time after giving written notice of its
intention to Register any securities and, in the case of a US Offer, prior to
the effective date of the Registration Statement filed in connection with such
Registration, the Company shall determine for any reason not to Register or to
delay Registration of such securities, the Company may, at its election, give
written notice of such determination to each Holder of Registrable Securities
and, thereupon, (i) in the case of a determination not to Register, shall be
relieved of its obligation to Register any Registrable Securities in connection
with such Registration (but not from its obligation to pay the Registration
Expenses in connection therewith) and (ii) in the case of a determination to
delay Registering, shall be permitted to delay Registering any Registrable
Securities, for the same period as the delay in Registering such other
securities. If the offering pursuant to such Registration Statement is to be
underwritten, then each Holder making a request for a Piggyback Registration
pursuant to this Section 2.2(a) must, and the Company shall make such
arrangements with the underwriters so that each such Holder may, participate,
subject to Section 2.2(b), in such Underwritten Offering. If the offering
pursuant to such Registration Statement is to be on any other basis, then each
Holder making a request for a Piggyback Registration pursuant to this Section
2.2(a) must, and the Company will make such arrangements so that each such
Holder may, participate, subject to Section 2.2(b), in such offering on such
basis. Each Holder of Registrable Securities shall be permitted to withdraw all
or part of such Holder’s Registrable Securities from a Piggyback Registration
at any time prior to the effective date thereof.

 

(b)                                 Priority of Piggyback Registration. If the managing underwriter or
underwriters of any proposed Underwritten Offering of a class of Registrable
Securities included in a Piggyback Registration informs the Company and the
Holders of such class of Registrable Securities in writing that, in its or
their opinion, the number of securities of such class which such Holders and
any other Persons intend to include in such offering exceeds the number which
can be sold in such offering without being likely to have a significant adverse
effect on the price, timing or distribution of the securities offered or the
market for the securities offered, then the securities to be included in such
Registration as so determined by the managing underwriter or underwriters (the
“Included Securities”) shall be allocated as follows:  (i) first, 50% of the aggregate number of
securities that the Company proposes to sell; and (ii) second, pro  rata
among the remaining 50% of the aggregate number of securities that the Company
proposes to sell and the number of shares held by Holders requesting to be
included in a Piggy-back Registration.

 

9

 

2.3.                              Holdbacks and Black-out Periods.

 

(a)                                  Holdbacks and Black-out Periods for
Holders. (i)  In the event of a Company Sale of the
Company’s equity securities in an Underwritten Offering, the Holders of
Registrable Securities agree, if requested by the managing underwriter or
underwriters in such Underwritten Offering, not to effect any public sale or
distribution of any securities (except, in each case, as part of the applicable
Registration, if permitted) that are the same as or similar to those being
Registered in connection with such Company Sale, or any securities convertible
into or exchangeable or exercisable for such securities, during the period
beginning 7 days before, and ending 120 days (or such lesser period as may be
permitted by the Company or such managing underwriter or underwriters) after, the
effective date of the Registration Statement filed in connection with such
Registration, to the extent timely notified in writing by the Company or the
managing underwriter or underwriters.

 

(ii)                                  The Company shall not be obligated to
file any Registration Statement pursuant to Section 2.1 during the period (A)
commencing with the date on which either (1) the Company previously received a
request to file a Registration Statement pursuant to Section 2.1 from EDF:  or (2) the Company, pursuant to Section 2.2,
previously or simultaneously notified the Holders of Registrable Securities of
its intention to file a Registration Statement (in either case, such
Registration Statement being hereinafter referred to as the “Preceding
Registration Statement”) and (B) ending with the earliest of (1) if such
Preceding Registration Statement has been filed but has not become effective or
approved and published in the case of a US Offer, French Offer or UK Offer,
respectively, 180 days following the filing of such Preceding Registration
Statement, (2) if such Preceding Registration Statement has not been filed, 270
days after notification of intention to file, (3) if such Preceding
Registration Statement has become effective or has been approved and published,
180 days after such Preceding Registration Statement has become effective or
has been approved and published (subject to any period (which shall not exceed
120 days) after such Preceding Registration Statement becomes effective, which
the managing Underwriter has designated as the minimum period during which the
Company and the Holders shall not engage in any new registered offerings) and
(4) the date of abandonment by the Company of its intention to file such
Preceding Registration Statement or the date of withdrawal of the request under
Section 2.1 by EDFI.

 

2.4.                              Registration Procedures.

 

(a)                                  In connection with the Company’s
Registration obligations under Sections 2.1 and 2.2 hereof, the Company will
use its best efforts to effect such Registration to permit the sale of such
Registrable Securities by the Holders in accordance with the intended method or
methods of distribution thereof under the Securities Act, or other applicable
French or English law, as expeditiously as reasonably practicable, and in
connection therewith the Company will:

 

(i)                                     (A) prepare the required Registration
Statement, Prospectus or other applicable required registration and/or listing
documents including all exhibits and financial statements required under
applicable law to be filed therewith (such documents, collectively “Registration
Documents”), and such Registration Documents shall comply as to form with
the requirements of the applicable form and include all financial statements
required by the SEC, or other relevant French or English authority, to be filed
therewith and all information reasonably

 

10

 

requested by the lead managing Underwriter or sole
Underwriter, if applicable, to be included therein, (B) use its best efforts to
cause such Registration Statement to become effective and remain effective in
accordance with Section 2, (C) use its best efforts to not take any action that
would cause a Registration Statement to contain a material misstatement or
omission necessary to be included therein to make the statements, in light of
the circumstances under which they were made, not misleading or to be not
effective and usable for resale of Registrable Securities during the period
that such Registration Statement is required to be effective and usable, and
(D) cause each Registration Statement and the related Prospectus and any
amendment or supplement thereto, as of the effective date of such Registration
Statement, amendment or supplement (x) to comply in all material respects with
any requirements of the Securities Act, any applicable French or English
securities Laws, and the rules and regulations thereunder and (y) not to
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. Before
filing a Registration Statement or publishing a Prospectus or any other
applicable registration documents, or any amendments or supplements thereto,
furnish to the underwriters, if any, and to the Holders of the Registrable
Securities covered by such Registration Statement, copies of all documents
filed with an applicable regulatory authority in conformity with the
requirements of the Securities Act or any other applicable Law;

 

(ii)                                  prepare and file with the SEC or prepare
and publish in accordance with English Law or French Law, as and if applicable,
such amendments and post-effective amendments to such Registration Statement
and supplements to the Prospectus as may be necessary to keep such Registration
effective for the period of time required by this Agreement; cause each such
Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act (or any
similar rule then in force), or any applicable French or English securities
Laws or the rules and regulations thereunder, and comply with the provisions of
the Securities Act with respect to the disposition of ail securities covered by
each Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the selling Holders thereof, as
set forth in such Registration Statement;

 

(iii)                               notify the participating Holders of Registrable
Securities and the managing underwriter or underwriters, if any, and furnish to
each Holder of Registrable Securities and to each underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as
many copies of the relevant documents, including the Prospectus, any amendment
or supplement thereto and such other documents as such Holder or underwriter
may reasonably request in order to facilitate the public sale or other
disposition of the Registrable Securities; the Company hereby consents to the
use of the Prospectus, including each preliminary Prospectus, by each Holder of
Registrable Securities and each underwriter of an Underwritten Offering of
Registrable Securities, if any, in connection with the offering and sale of the
Registrable Securities covered by the Prospectus or the preliminary Prospectus,
as soon as reasonably practicable after notice thereof is received by the
Company (i) when the applicable Registration Statement or any amendment thereto
has been filed or becomes effective, when the applicable Prospectus or any
amendment or supplement to such Prospectus has approved and been published,
(ii) of any written comments by the SEC, the UK Listing Authority or the AMF or
any request by the SEC, the UK Listing Authority or the AMF or any other
federal or state

 

11

 

governmental authority for amendments or supplements
to such Registration Statement or such Prospectus or for additional
information, (iii) of the issuance by the SEC, the UK Listing Authority or the
AMF of any stop order suspending the effectiveness of such Registration
Statement or any order preventing or suspending the use of any preliminary or
final Prospectus or the initiation or threatening of any proceedings for such
purposes, (iv) if, at any time, any of the representations and warranties of
the Company in any applicable underwriting agreement cease to be true and
correct in any material respect and (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable
Securities for offering or sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose;

 

(iv)                              notify each selling Holder of Registrable
Securities and the managing underwriter or underwriters, if any, when the
Company becomes aware of the happening of any event as a result of which the
applicable Registration Statement or the Prospectus included in such
Registration Statement (as then in effect) contains any untrue statement of a
material fact or omits to state a material fact necessary to make the
statements therein (in the case of such Prospectus and any preliminary
Prospectus, in light of the circumstances under which they were made) not misleading
or, if for any other reason it shall be necessary during such time period to
amend or supplement such Registration Statement or Prospectus in order to
comply with the Securities Act, French Law or English Law and, in any case as
promptly as reasonably practicable thereafter, prepare and file with the SEC,
the UK Listing Authority or the AMF, as applicable, and furnish without charge
to the selling Holders and the managing underwriter or underwriters, if any, an
amendment or supplement to such Registration Statement or Prospectus which will
correct such statement or omission or effect such compliance;

 

(v)                                 use its best efforts to prevent or obtain
the withdrawal of any stop order or other order suspending the use of any
preliminary or final Prospectus;

 

(vi)                              on or prior to the date on which the
applicable Registration Statement is declared effective or is published, use
its reasonable best efforts to register or qualify, and cooperate with the
selling Holders of Registrable Securities, the managing underwriter or
underwriters, if any, and their respective counsel, in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or “Blue Sky” laws of each state of the United States and
other jurisdiction as any such selling Holder or managing underwriter or
underwriters, if any, or their respective counsel reasonably request in writing
and do any and all other acts or things reasonably necessary or advisable to
keep such registration or qualification in effect for so long as such
Registration Statement remains in effect and so as to permit the continuance of
sales and dealings in such jurisdictions for as long as may be necessary to
complete the distribution of the Registrable Securities covered by the
Registration Statement, provided that the Company will not be required
to qualify generally to do business in any jurisdiction where it is not then so
qualified or to take any action which would subject it to taxation or general
service of process in any such jurisdiction where it is not then so subject;

 

(vii)                           cooperate with the selling Holders of Registrable
Securities and the managing underwriter or underwriters, if any, to facilitate
the timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends;

 

12

 

(viii)                        use its best efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof or the underwriter or
underwriters, if any, to consummate the disposition of such Registrable
Securities;

 

(ix)                                obtain for delivery to the Holders of
Registrable Securities being registered and to the underwriter or underwriters,
if any, an opinion or opinions from counsel for the Company dated the effective
date of the Registration Statement or, in the event of an Underwritten Offering,
the date of the closing under the underwriting agreement, in customary form,
scope and substance, which counsel and opinions shall be reasonably
satisfactory to such Holders or underwriters, as the case may be, and their
respective counsel;

 

(x)                                   in the case of an Underwritten Offering,
obtain for delivery to the Company and the managing underwriter or
underwriters, with copies to the Holders of Registrable Securities included in
such Registration, a comfort letter from the Company’s independent certified
public accountants in customary form and covering such matters of the type
customarily covered by cold comfort letters as the managing underwriter or
underwriters reasonably request, dated the date of execution of the
underwriting agreement and brought down to the closing under the underwriting
agreement;

 

(xi)                                cooperate with each seller of Registrable
Securities and each underwriter, if any, participating in the disposition of
such Registrable Securities and their respective counsel in connection with any
filings required to be made with the NASD, the UK Listing Authority or the AMF;

 

(xii)                             provide and cause to be maintained in the United
States, the UK, France or Argentina, as applicable, a transfer agent and
registrar for all Registrable Securities covered by the applicable Registration
Statement from and after a date not later than the effective date of such
Registration Statement;

 

(xiii)                          cause all Registrable Securities covered by the
applicable Registration Statement to be listed on each securities exchange on
which any of the Company’s securities are then listed or quoted and on each
inter-dealer quotation system on which any of the Company’s securities are then
quoted;

 

(xiv)                         make available upon reasonable notice at reasonable
times and for reasonable periods for inspection by a representative appointed
by the majority of the Holders of each class of Registrable Securities covered
by the applicable Registration Statement, by any underwriter participating in
any disposition to be effected pursuant to such Registration Statement and by
any attorney, accountant or other agent retained by such Holders or any such
underwriter, all pertinent financial and other records, pertinent corporate
documents and properties of the Company, and cause all of the Company’s
officers, directors and employees and the independent public accountants who
have certified its financial statements to make themselves available to discuss
the business of the Company and to supply all information reasonably requested
by any such Person in connection with such Registration Statement as shall be
necessary to enable them to exercise their due diligence responsibility
pursuant to the requirements of applicable Law; and

 

13

 

(xv)                            Within a reasonable time prior to the
filing of any Registration Statement, any Prospectus, any amendment to a
Registration Statement or amendment or supplement to a Prospectus, provide
copies of such document to the Holders of Registrable Securities and to counsel
to such Holders and to the underwriter or underwriters of an Underwritten
Offering of Registrable Securities, if any, and fairly consider such reasonable
changes in any such document prior to the filing thereof as the counsel to the
Holders or the underwriter or the underwriters may timely request.

 

(b)                                 The Company may require each seller of
Registrable Securities as to which any Registration is being effected to
furnish to the Company such information regarding the distribution of such
securities and such other information relating to such Holder and its ownership
of Registrable Securities as the Company may from time to time reasonably
request in writing. Each Holder of Registrable Securities agrees to furnish
such information to the Company and to cooperate with the Company as reasonably
necessary to enable the Company to comply with the provisions of this
Agreement.

 

(c)                                  Each Holder of Registrable Securities
agrees by acquisition of such Registrable Securities that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 2.4(a)(iv) hereof, such Holder will forthwith discontinue disposition
of Registrable Securities pursuant to such Registration Statement until such
Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 2.4(a)(iv) hereof, or until such Holder is advised in
writing by the Company that the use of the Prospectus may be resumed, and if so
directed by the Company, such Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such
Holder’s possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice. In the event the Company shall
give any such notice, the period during which the applicable Registration
Statement is required to be maintained effective shall be extended by the
number of days during the period from and including the date of the giving of
such notice to and including the date when each seller of Registrable
Securities covered by such Registration Statement either receives the copies of
the supplemented or amended Prospectus contemplated by Section 2.4(a)(iv)
hereof or is advised in writing by the Company that the use of the Prospectus may
be resumed.

 

2.5.                              Underwritten Offerings.

 

(a)                                  Underwriting Agreements. If requested by the underwriters for
any Underwritten Offering, the Company shall enter into an underwriting
agreement with such underwriters for such offering, such agreement to be
reasonably satisfactory in substance and form to the Company, and the
underwriters. Such agreement shall contain such representations and warranties
by the Company and such other terms as are generally prevailing in agreements
of that type, including, without limitation, indemnities generally to the
effect and to the extent of those provided in Section 2.8. The Holders of any
Registrable Securities to be included in any Underwritten Offering by such
underwriters shall enter into such underwriting agreement at the request of the
Company. The Holders of Registrable Securities to be distributed by such
Underwriters shall be parties to such Underwriting Agreement and may, at their
option, require that all of the representations and warranties by, and the
other agreements on the part of, the Company to and for the benefit of such
underwriters also be made to and for the benefit of such

 

14

 

Holders and any or all of the conditions precedent to
the obligations of such underwriters under such underwriting agreement be
conditions precedent to the obligations of such Holders. No Holder shall be
required in any such underwriting agreement to make any representations or
warranties to, or agreements with, the Company or the underwriters other than
representations, warranties or agreements regarding such Holder, such Holder’s
Registrable Securities, such Holder’s intended method of distribution and any
representations required by law.

 

(b)                                 Participation in Underwritten Registrations. No Person may participate in any
Underwritten Offering hereunder unless such Person (i) agrees to sell such
Person’s securities on the basis provided in any underwriting arrangements
approved by the Persons entitled to approve such arrangements and (ii)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

 

(c)                                  Piggyback by Holders in Underwritten
Primary Offerings.
If the Company at any time proposes to register any of its securities under the
Securities Act or other applicable foreign securities Laws as contemplated by
Section 2.2 and such securities are to be distributed by or through one or more
Underwriters, then the Holders of Registrable Securities to be distributed by
such Underwriters pursuant to Piggyback Rights shall be parties to the
Underwriting Agreement between the Company and such Underwriters and may, at
their option, require that any or all of the representations and warranties by,
and the other agreements on the part of, the Company to and for the benefit of
such Underwriters shall also be made to and for the benefit of such holders of
Registrable Securities and that any or all of the conditions precedent to the
obligations of such Underwriters under such underwriting agreement be
conditions precedent to the obligations of such holders of Registrable
Securities. Any such Holder of Registrable Securities shall not be required to
make any representations or warranties to or agreements with the Company or the
Underwriters other than representations, warranties or agreements regarding
such Holder, such Holder’s Registrable Securities and such Holder’s intended
method of distribution and any other representation required by law.

 

(d)                                 Holdback Agreements. (i) 
Each Holder of Registrable Securities agrees, if so required by the
managing Underwriter, that it would agree to “Holdbacks” to the extent that (A)
such Holdbacks applied to the Company and holders of all other securities of
the Company on terms equal to or less favorable than the terms applicable to
the holders of Registrable Securities and (B) such Holdbacks were limited to
one hundred eighty (180) days after any underwritten registration pursuant to
Section 2.1 or 2.2 has become effective. For the purpose of this Agreement, to
“Holdback” is to refrain from selling, making any short sale of,
loaning, granting any option for the purchase of, effecting any public sale or
distribution of or otherwise disposing of any securities of the Company, except
as part of such underwritten registration, whether or not such holder
participates in such registration. Notwithstanding the foregoing sentence, each
holder of Registrable Securities subject to the foregoing sentence shall be
entitled to sell during the foregoing period securities in a private sale to
the extent permitted pursuant to the Shareholders’ Agreement. Each Holder of
Registrable Securities agrees that the Company may instruct its transfer agent
to place stop transfer notations in its records to enforce such Holdbacks. (ii)
The Company agrees (A) if so required by the managing Underwriter, that it
would be subject to the same Holdbacks as the holders of Registrable
Securities, except pursuant to registrations on Form F-4, S-8, S-14 or S-15 or
any successor or similar forms thereto, and (B)

 

15

 

to cause each holder of its securities or any
securities convertible into or exchangeable or exercisable for any of such securities,
in each case purchased from the Company at any time after the date of this
Agreement (other than in a public offering) to agree to such Holdbacks.

 

2.6.                              No Inconsistent Agreements. The Company is not currently a party to
any agreement with respect to its securities which is inconsistent with the
rights granted to the Holders of Registrable Securities by this Agreement.

 

2.7.                              Registration Expenses. All expenses incident to the Company’s
performance of or compliance with this Agreement will be paid by, in the case
of a Demand Registration or a Piggy-Back registration, ratably by all Holders
(including EDFI and the Company) in proportion to the number of their
respective Registrable Securities that are included in such registration
including, without limitation, (i) all registration and filing fees, and any
other fees and expenses associated with filings required to be made with the
SEC, the NASD, the UK Listing Authority, the AMF or Euronext Paris (ii) all
fees and expenses in connection with compliance with state securities or “Blue
Sky” laws, (iii) all translating, printing, duplicating, word processing,
messenger, telephone, facsimile and delivery expenses (including expenses of
printing certificates for the Registrable Securities in a form eligible for
deposit with The Depository Trust Company, Euroclear, Clearstream or other
similar depository institution and of printing prospectuses), (iv) Securities
Act or French or English Law liability insurance or similar insurance if the
Company so desires or the underwriters so require in accordance with
then-customary underwriting practice, (v) all fees and expenses incurred in
connection with the listing of the Registrable Securities on any securities
exchange or quotation of the Registrable Securities on any inter-dealer
quotation system, (vi) all applicable rating agency fees with respect to the
Registrable Securities, (vii) all reasonable fees and disbursements of one law
firm or other counsel selected by the Holders of a majority of the Registrable
Securities being registered and (viii) any reasonable fees and disbursements of
underwriters (including transfer taxes, if any, attributable to the site) and
(ix) all fees and expenses of any special experts or other Persons retained by
the Company in connection with any Registration; provided that the
Company shall pay for all fees and disbursements of counsel for the Company and
of all independent certified public accountants of the Company (including the
expenses of any special audit and cold comfort letters required by or incident
to such performance), which are incident to the preparation of the Registration
Statement and related documents.

 

2.8.                              Indemnification.

 

(a)                                  Indemnification by Company. The Company agrees to indemnify and
hold harmless, to the full extent permitted by law, each Holder of Registrable
Securities, its Affiliates and their respective partners, officers, directors,
shareholders, employees, advisors, and agents and each Person who controls
(within the meaning of the Securities Act or the Exchange Act or English or
French Law) such Persons from and against any and all losses, claims, damages,
liabilities, judgments (or actions or proceedings in respect thereof, whether
or not such indemnified party is a party thereto) and expenses, joint or several
(including reasonable costs of investigation and legal expenses) (each, a “Loss”
and collectively “Losses”) arising out of or based upon (A) any untrue
or alleged untrue statement of a material fact contained in any Registration
Statement under which such Registrable Securities were Registered under the
Securities Act or under the FSMA, under the rules and regulations of the AMF,
or under

 

16

 

Argentine Law (including any final, preliminary or
summary Prospectus contained therein or any amendment thereof or supplement
thereto or any documents incorporated by reference therein), or (B) any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of a
Prospectus or preliminary Prospectus, in light of the circumstances under which
they were made) not misleading; provided, however, that the
Company shall not be liable to any particular indemnified party in any such case
to the extent that any such Loss arises out of or is based upon an untrue
statement or alleged untrue statement of a material fact or omission or alleged
omission of a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, in any
such case, made in any such Registration Statement in reliance upon and in
conformity with written information furnished to the Company by such
indemnified party expressly for use in the preparation thereof and provided
further that the Company shall not be liable to any Person who participates as
an Underwriter in the offering or sale of Registrable Securities or to any
other Person, if any, who controls such Underwriter within the meaning of the
Securities Act, in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense
arises out of such Person’s failure to send or give a copy of the final
Offering Document, as the same may be then supplemented or amended, within the
time required by the Securities Act or other applicable foreign securities Laws
to the Person asserting the existence of an untrue statement or alleged untrue
statement or omission or alleged omission at or prior to the written
confirmation of the sale of Registrable Securities to such Person if such
statement or omission was corrected in such final Offering Document. This
indemnity shall be in addition to any liability the Company may otherwise have.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Holder or any indemnified party and
shall survive the transfer of such securities by such Holder.

 

(b)                                 Indemnification by the Selling Holder of
Registrable Securities. Each selling Holder of Registrable Securities agrees (severally and
not jointly) to indemnify and hold harmless, to the full extent permitted by
law, the Company, its directors and officers and each Person who controls the
Company (within the meaning of the Securities Act and the Exchange Act or
English Law) from and against any Losses resulting from any untrue statement of
a material fact or any omission of a material fact required to be stated in the
Registration Statement under which such Registrable Securities were Registered
under the Securities Act (including any final, preliminary or summary
Prospectus contained therein or any amendment thereof or supplement thereto or
any documents incorporated by reference therein), or necessary :o make the
statements therein (in the case of a Prospectus or preliminary Prospectus, in
light of the circumstances under which they were made) not misleading, to the
extent, but only to the extent, that such untrue statement or omission is made
in reliance upon and in conformity with information furnished in writing by
such selling Holder to the Company specifically for inclusion in such
Registration Statement and has not been corrected in a subsequent writing prior
to or concurrently with the sale of the Registrable Securities to the Person
asserting such loss, claim, damage, liability or expense. In no event shall the
liability of any selling Holder of Registrable Securities hereunder be greater
in amount than the dollar amount of the proceeds received by such Holder under
the sale of the Registrable Securities giving rise to such indemnification
obligation. Each Holder also shall indemnify any underwriters of the
Registrable Securities, their officers and directors and each person who
controls such underwriters (within the meaning of the Securities Act or English
Law) to the same extent as provided above with respect to the indemnification
of the Company.

 

17

 

(c)                                  Conduct of Indemnification Proceedings. Any Person entitled to indemnification
hereunder will (i) give prompt written notice to the indemnifying party of any
claim with respect to which it seeks indemnification (provided, that any
delay or failure to so notify the indemnifying party shall relieve the
indemnifying party of its obligations hereunder only to the extent, if at all,
that it is actually and materially prejudiced by reason of such delay or
failure) and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided,
however, that any Person entitled to indemnification hereunder shall
have the right to select and employ separate counsel and to participate in the
defense of such claim, but the fees and expenses of such counsel shall be at
the expense of such Person unless (i) the indemnifying party has agreed in
writing to pay such fees or expenses, (ii) the indemnifying party shall have
failed to assume the defense of such claim within a reasonable time after
receipt of notice of such claim from the Person entitled to indemnification
hereunder and employ counsel reasonably satisfactory to such Person, (iii) the
indemnified party has reasonably concluded (based on advice of counsel) that
there may be legal defenses available to it or other indemnified parties that
are different from or in addition to those available to the indemnifying party,
or (iv) in the reasonable judgment of any such Person, based upon advice of its
counsel, a conflict of interest may exist between such Person and the
indemnifying party with respect to such claims (in which case, if the Person
notifies the indemnifying party in writing that such Person elects to employ
separate counsel at the expense of the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such claim on behalf of
such Person). If such defense is not assumed by the indemnifying party, the
indemnifying party will not be subject to any liability for any settlement made
without its consent, but such consent may not be unreasonably withheld; provided,
that an indemnifying party shall not be required to consent to any settlement
involving the imposition of equitable remedies or involving the imposition of
any material obligations on such indemnifying party other than financial
obligations for which such indemnified party will be indemnified hereunder. If
the indemnifying party assumes the defense, the indemnifying party shall not
have the right to settle such action without the consent of the indemnified party.
No indemnifying party shall consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such indemnified party of an unconditional
release from all liability in respect to such claim or litigation. It is
understood that the indemnifying party or parties shall not, in connection with
any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees, disbursements and other charges of more than one separate
firm admitted to practice in such jurisdiction at any one time from all such
indemnified party or parties unless (x) the employment of more than one counsel
has been authorized in writing by the indemnified party or parties, (y) an
indemnified party has reasonably concluded (based on advice of counsel) that
there may be legal defenses available to it that are different from or in
addition to those available to the other indemnified parties or (z) a conflict
or potential conflict exists or may exist (based on advice of counsel to an
indemnified party) between such indemnified party and the other indemnified
parties, in each of which cases the indemnifying party shall be obligated to
pay the reasonable fees and expenses of such additional counsel or counsels.

 

(d)                                 Contribution. The indemnification provided for under
this Agreement shall remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and shall survive the
transfer of securities. If for any reason the indemnification provided for in

 

18

 

paragraphs (a) and (b) of this Section 2.8 is
unavailable to an indemnified party or insufficient to hold it harmless as
contemplated by paragraphs (a) and (b) of this Section 2.8, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such Loss in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and the
indemnified party on the other. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the indemnifying party or the indemnified
party and the parties’ relative intent, knowledge, access to information
concerning the matter with respect to which the claim was asserted and
opportunity to correct or prevent such untrue statement or omission. Notwithstanding
anything in this Section 2.8(d) to the contrary, no indemnifying party (other
than the Company) shall be required pursuant to this Section 2.8(d) to
contribute any amount in excess of the amount by which the net proceeds
received by such indemnifying party from the sale of Registrable Securities in
the offering to which the Losses of the indemnified parties relate exceeds the amount
of any damages which such indemnifying party has otherwise been required to pay
by reason of such untrue statement or omission. The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section
2.8(d) were determined by pro  rata allocation or by any other
method of allocation that does not take account of the equitable considerations
referred to in the immediately preceding paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. If indemnification is available
under this Section 2.8, the indemnifying parties shall indemnify each
indemnified party to the full extent provided in Sections 2.8(a) and 2.8(b)
hereof without regard to the relative fault of said indemnifying parties or
indemnified party.

 

2.9.                              Rules 144 and 144A. (a) 
So long as the Company shall not have filed a Registration Statement pursuant
to Section 12 of the Exchange Act or a Registration Statement pursuant to the
requirements of the Securities Act, the Company shall, at any time and from
time to time, upon the request of any holder of Registrable Securities and upon
the request of any Person designated by such holder as a prospective purchaser
of any Registrable Securities, furnish in writing to such holder or such
prospective purchaser, as the case may be, a statement as of a date not earlier
than twelve (12) months prior to the date of such request of the nature of the
business of the Company and the products and services it offers and copies of
the Company’s most recent balance sheet and profit and loss and retained
earnings statements, together with similar financial statements for such part
of the two preceding fiscal years as the Company shall have been in operation,
all such financial statements to be audited to the extent audited statements
are reasonably available, provided that, in any event the most recent
financial statements so furnished shall include a balance sheet as of a date
less than twelve (12) months prior to the date of such request, statements of
profit and loss and retained earnings for the twelve (12) months preceding the
date of such balance sheet, and, if such balance sheet is not as of a date less
than six (6) months prior to the date of such request, additional statements of
profit and loss and retained earnings for the period from the date of such
balance sheet to a date less than 6 months prior to the date of such request.

 

(b)                                 If the Company shall have filed a
Registration Statement pursuant to the requirements of Section 12 of the
Exchange Act or a Registration Statement pursuant to the

 

19

 

requirements of the Securities Act, the Company shall
timely file the reports required to be filed by it under the Securities Act and
the Exchange Act (including but not limited to the reports under Sections 13
and 15(d) of the Exchange Act referred to in subparagraph (c) of Rule 144
adopted by the Commission under the Securities Act) and the rules and
regulations adopted by the Commission thereunder (or, if the Company is not
required to file such reports, will, upon the request of any holder of
Registrable Securities, make publicly available other information) and will
take such further action as any holder of Registrable Securities may reasonably
request, all to the extent required from time to time to enable such holder to
sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the Commission. Upon the request
of any holder of Registrable Securities, the Company will deliver to such
holder a written statement as to whether it has complied with the requirements
of this Section 2.9.

 

SECTION 3. MISCELLANEOUS.

 

3.1                                 Obligations of Dolphin under this
Agreement. Dolphin
hereby agrees, so long as it is, directly or indirectly, a controlling
shareholder of the Company, to use commercially reasonable efforts to cause the
Company to comply with the Company’s obligations under this Agreement.

 

3.2.                              Injunctive Relief. It is hereby agreed and acknowledged
that it will be impossible to measure in money the damage that would be
suffered if the parties fail to comply with any of the obligations herein
imposed on them and that in the event of any such failure, an aggrieved Person
will be irreparably damaged and will not have an adequate remedy at law. Any
such Person shall, therefore, be entitled (in addition to any other remedy to
which it may be entitled in law or in equity) to injunctive relief, including,
without limitation, specific performance, to enforce such obligations, and if
any action should be brought in equity to enforce any of the provisions of this
Agreement, none of the parties hereto shall raise the defense that there is an
adequate remedy at law.

 

3.3.                              Notices. All notices, other communications or documents
provided for or permitted to be given hereunder, shall be made in writing and
shall be given either personally by hand-delivery, by facsimile transmission or
by air courier guaranteeing overnight delivery:

 

(a)                                  if to the Company to:

 

Edenor S.A.

c/o Dolphin Energia S.A.

Bouchard 547, Fl. 26

C1106ABH Buenos Aires

Argentina

Attention:  Marcelo Mindlin

 

20

 

with copies to:

 

Errecondo, Salaverri, Delatorre,
Gonzalez & Burgio

Bouchard 680

Buenos Aires, Argentina

Facsimile:  (54-11) 5236-4401

Attention:  Diego M. Salaverri, Esq.

 

and to:

 

Cleary Gottlieb Steen &
Hamilton LLP

One Liberty Plaza

New York, New York  10006-1470

Facsimile:  (212) 225-3999

Attention:  Richard J. Cooper, Esq.

 

(b)                                 if to EDFI to:

 

EDF International S.A:

Direction Generale

20, place de la Defense

TOUR EDF

92050 Paris la Defense

France

Fax number:  00.33.1.56.65.22.31

 

with copies to:

 

Estudio Beccar Varela

Cerrito 740 Piso 16 - C1010AAP

Buenos Aires

ARGENTINA

Fax:  (54 - 11) 4379-6860

Attention:  Roberto H. Crouzel, Esq.

 

and to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York  10017

Fax:  (212) 455-2502

Attention:  David L. Williams, Esq.

 

Each Holder, by written notice given to the Company in
accordance with this Section 3.2 may change the address to which notices, other
communications or documents are to be sent to such Holder. All notices, other
communications or documents shall be deemed to have been duly given:  (i) at the time delivered by hand, if
personally delivered; (ii) when receipt is acknowledged in writing by
addressee, if by facsimile transmission; and (iii) on the first business

 

21

 

day with respect to which a reputable air courier
guarantees delivery; provided, however, that notices of a change
of address shall be effective only upon receipt.

 

3.4.                              Successors, Assigns and Transferees. (a) 
The rights of any Holder under this Agreement with respect to any
Registrable Securities may be transferred and assigned (in whole or in part) to
the transferees of the Class B shares (if and to the extent permitted by the
Shareholders Agreement), provided that no such assignment shall be
binding upon or obligate the Company to any such assignee unless and until the
Company shall have received notice of such assignment as herein provided and a
written agreement of the assignee to be bound by the provisions of this
Agreement.

 

(b)                                 This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Whether or not any express assignment shall
have been made, the provisions of this Agreement which are for the benefit of
the parties hereto other than the Company shall also be for the benefit of and
enforceable by any subsequent Holder of Registrable Securities, subject to the
provisions contained herein.

 

3.5                                 Recapitalizations, Exchanges, etc.,
Affecting Registrable Securities. The provisions of this Agreement shall apply, to the
full extent set forth herein with respect to the Registrable Securities, to any
and all securities or capital stock of the Company or any successor or assign
of the Company (whether by merger, consolidation, sale of assets or otherwise)
that may be issued in respect of, in exchange for, or in substitution of such
Registrable Securities, by reason of any dividend, split, issuance, reverse
split, combination, recapitalization, reclassification, merger, consolidation
or otherwise.

 

3.6                                 Governing Law:  Arbitration. (a)  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO 3E PERFORMED WITHIN THE
STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS.

 

(b)                                 (i) 
Any controversy, dispute or question which may at any time in the future
arise between the parties, which relates to the correct interpretation of this
Agreement or the fulfillment of this Agreement or the rights and obligations of
the parties arising out of this Agreement shall be settled exclusively and
finally by arbitration. The arbitration shall be conducted and settled by 3
arbitrators in accordance with the Rules of Arbitration of the International
Chamber of Commerce (the “ICC Rules”). Each of EDFI and the Company
shall select an arbitrator in accordance with the ICC Rules. The arbitrators so
nominated shall then agree within 7 days from the date of their confirmation by
the Court of Arbitration of the ICC on a third arbitrator to serve as Chairman.
If a Chairman is not selected within such 7-day period, the Chairman shall be
appointed by the Court of Arbitration of the International Chamber of Commerce.

 

(ii)                                  The arbitration proceedings shall be held
in New York and shall be conducted in the English language.

 

22

 

(iii)                               Any decision or award of the arbitral tribunal (or the
arbitrator) shall be final and binding upon the parties. Judgment for execution
of any award rendered by the arbitral tribunal (or the arbitrator) may be
entered by any court of competent jurisdiction. To the extent permitted by law,
any rights to appeal from or cause review of any such award by any court or
tribunal are hereby waived by the parties.

 

(iv)                              The arbitrator will have the power to
issue interim orders and to award fees to the prevailing party and will not be
bound by the rules of evidence.

 

(v)                                 For the purposes of the arbitration
procedures contemplated in this section 3.6, Dolphin and the Company agree
that, in the case of a proceeding initiated by EDFI naming each of Dolphin and
the Company as defendants, Dolphin and the Company shall together submit to a
single arbitration procedure, with unified counsel, to resolve the controversy,
dispute or question at issue and shall act in a unified manner with respect to
the selection of arbitrators for such procedures as set forth in Sections
3.6(i) through (iv) above.

 

3.7.                              Headings. The section and paragraph headings contained in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

 

3.8.                              Severability. Whenever possible, each provision or
portion of any provision of this Agreement will be interpreted in such manner
as to be effective and valid under applicable law but if any provision or
portion of any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or portion of any provision in such jurisdiction, and this agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision or portion of any provision had never been
contained therein.

 

3.9.                              Amendment; Waiver.

 

(a)                                  This Agreement may not be amended or
modified and waivers and consents to departures from the provisions hereof may
not be given, except by an instrument or instruments in writing making specific
reference to this Agreement and signed by the Company, the Holders of a
majority of Registrable Securities then outstanding and, so long as it is a
Holder, EDFI. Each Holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by any amendment, modification, waiver or
consent authorized by this Section 3.8(a), whether or not such Registrable
Securities shall have been marked accordingly.

 

(b)                                 The waiver by any party hereto of a
breach of any provision of this Agreement shall not operate or be construed as
a further or continuing waiver of such breach or as a waiver of any other or
subsequent breach. Except as otherwise expressly provided herein, no failure on
the part of any party to exercise, and no delay in exercising, any right, power
or remedy hereunder, or otherwise available in respect hereof at law or in
equity, shall operate as a waiver thereof, nor shall any single or partial
exercise of such right, power or remedy by such party preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.

 

23

 

3.10.                        Counterparts. This Agreement may be executed in any number of
separate counterparts and by the parties hereto in separate counterparts each
of which when so executed shall be deemed to be an original and all of which
together shall constitute one and the same agreement.

 

3.10.                        Effectiveness. The provisions of this Agreement shall take effect
upon the occurrence of the Closing without further action by or on behalf of
any party hereto and, other than this Section 3.10, shall have no force or
effect prior to the Closing.

 

24

 

IN WITNESS WHEREOF, the parties hereto have caused
this instrument to be duly executed as of the date first written above.

 

	
   

  	
  EDF INTERNATIONAL S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DOLPHIN ENERGIA S.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDENOR S.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]