Document:

exv10w9

 

EXHIBIT 10.9

Dated 13 October 2006

NUCLEAR ENERGY HOLDINGS, L.L.C.

(the Issuer)

 

and

 

THE BANK OF NEW YORK

(the Trustee)

 

and

 

THE BANK OF NEW YORK

(the Account Bank, Cash Manager, Principal Paying Agent and Calculation Agent)

 

and

 

MORGAN STANLEY CAPITAL SERVICES INC.

(the Swap Counterparty)

DEED OF CHARGE

Linklaters

Ref: 01/210/E.Hickman/ANXJ

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	Heading	 	Page	 
	1
	 	Definitions and Interpretation	 	 	1	 
	2
	 	Security Trust	 	 	8	 
	3
	 	Creation of Security	 	 	8	 
	4
	 	Restriction on Exercise of Certain Rights	 	 	12	 
	5
	 	Release of Charged Property	 	 	12	 
	6
	 	Prior to service of a Bond Enforcement Notice	 	 	12	 
	7
	 	Following Service of a Bond Enforcement Notice	 	 	12	 
	8
	 	Acknowledgement of Secured Creditors	 	 	12	 
	9
	 	The Trustee’s Powers	 	 	12	 
	10
	 	Receiver	 	 	12	 
	11
	 	Protection of Third Parties	 	 	12	 
	12
	 	Protection of Trustee and Receiver	 	 	12	 
	13
	 	Expenses and Indemnity	 	 	12	 
	14
	 	Protection of Security	 	 	12	 
	15
	 	Crystallisation	 	 	12	 
	16
	 	Issuer Power of Attorney	 	 	12	 
	17
	 	Other Security	 	 	12	 
	18
	 	Avoidance of Payments	 	 	12	 
	19
	 	Set-off	 	 	12	 
	20
	 	Execution of Documents	 	 	12	 
	21
	 	Exercise of Certain Rights	 	 	12	 
	22
	 	Covenants, Representations and Warranties	 	 	12	 
	23
	 	Additional Provisions Regarding the Trustee	 	 	12	 
	24
	 	Further Provisions	 	 	12	 
	25
	 	Governing Law and Jurisdiction	 	 	12	 
	26
	 	Limited Recourse and Non Petition	 	 	12	 

i

 

 

 

THIS DEED OF CHARGE is made on 13 October 2006 between:

	(1)	 	NUCLEAR ENERGY HOLDINGS, L.L.C., a company with limited liability organised under the laws of
the State of Delaware, United States of America, whose registered office is c/o Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801-1120 (the “Issuer”);

	(2)	 	THE BANK OF NEW YORK, having its principal office at One Canada Square, London E14 5AL (in
its capacity as “Trustee” under the Bond Trust Deed and this Deed);

	(3)	 	THE BANK OF NEW YORK, having its principal office at One Canada Square, London E14 5AL (the
“Account Bank”, the “Cash Manager”, the “Principal Paying Agent” and the “Calculation Agent”);
and

	(4)	 	MORGAN STANLEY CAPITAL SERVICES INC. (the “Swap Counterparty”).

Background:

	(A)	 	This Deed secures and will secure the Issuer Obligations.
	 
	(B)	 	This Deed is supplemental to and should be read in conjunction with the Bond Trust Deed.
	 
	(C)	 	The Issuer will on the date of this Deed issue the Bonds.
	 
	(D)	 	By the Accounts Bank Agreement, the Account Bank has agreed to open and maintain certain
accounts in the name of the Issuer and to provide certain banking services to the Issuer and
the Trustee.
	 
	(E)	 	By the Cash Management Agreement, the Cash Manager has agreed to provide cash management
services to the Issuer and the Trustee.
	 
	(F)	 	By the Agency Agreement, the Principal Paying Agent has agreed to provide certain agency
services for the benefit of the Bondholders.
	 
	(G)	 	By the Swap Agreement, the Swap Counterparty has agreed to provide certain financial exchange
services (guaranteed by Morgan Stanley (the “Swap Guarantor”)) for the benefit of the
Bondholders.

This Deed witnesses as follows:

	1	 	Definitions and Interpretation
	 
	1.1	 	Definitions
	 
	 	 	The following expressions shall have the following meanings:
	 
	 	 	“Accounts Bank Agreement” means the accounts bank agreement dated on or about the date
hereof between the Account Bank, the Issuer, the Cash Manager and the Trustee;
	 
	 	 	“Acquisition Adjustment Amounts” has the meaning ascribed thereto in the Conditions;
	 
	 	 	“Administrative Services Agreement” means the administrative services agreement dated on or
about the date hereof between the Issuer and the Servicer;
	 
	 	 	“Agency Agreement” means the agency agreement dated on or about the date hereof between the
Issuer, the Trustee, the Principal Paying Agent, the Calculation Agent and the Cash Manager;

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“Bond Documents” mean all of the Transaction Documents other than the Shareholders
Agreements, the Investment Agreements and the Put Option Agreements;

“Bond Enforcement Notice” means notice given by the Trustee to the Issuer, with a copy to
the Secured Creditors, to the effect that the Trustee will enforce the Security (or any part
thereof) pursuant to this Deed, the Parent Pledge or the Issuer Pledge Agreement (as the
case may be);

“Bondholders” has the meaning ascribed thereto in the Bond Trust Deed;

“Bonds” means the JPY50,980,000,000 fixed rate bearer bonds of the Issuer due 2013 and
JPY78,000,000,000 floating rate bearer bonds of the Issuer due 2013 both constituted under
the Bond Trust Deed;

“Bond Trust Deed” means the bond trust deed dated on or about the date hereof between the
Trustee and the Issuer;

“Business Day” means a day (other than Saturday and Sunday) on which commercial banks in
London and Tokyo are open for business;

“Call Option” means the call option as described in the Shareholder Agreements;

“Call Premium” has the meaning ascribed thereto in the Conditions;

“Cash Collateral Account” means the JPY denominated bank account held by the Issuer with the
Account Bank into which cash collateral is posted by the Swap Counterparty under the Swap
Agreement;

“Cash Management Agreement” means the cash management agreement dated on or about the date
hereof between the Issuer, the Cash Manager and the Trustee;

“Charged Property” means collectively:

	(a)	 	the whole of the right, title, benefit and interest of the Issuer in the
property, assets and rights of the Issuer described in Clauses 3.1 to 3.6 (inclusive)
(Creation of Security) of this Deed;
	 
	(b)	 	the whole of the right, title, benefit and interest of the Parent in the
membership interests of the Issuer described in the Parent Pledge Agreement;
	 
	(c)	 	the whole of the right, title, benefit and interest of the Issuer in the US
Shares described in the Issuer Pledge Agreement; and
	 
	(d)	 	all other property, assets and rights whatsoever of the Issuer and wheresoever
situate, present and future;

“Collateral Accounts” means the Cash Collateral Account and the Custody Collateral Account;

“Conditions” means the terms and conditions of the Bonds set out in Schedule 4 of the Bond
Trust Deed;

“Custody Collateral Account” means the custody account held by the Issuer with the Account
Bank into which JGB’s (as defined in the Swap Agreement) are posted by the Swap Counterparty
under the Swap Agreement;

“Eligible Dividends” has the meaning ascribed thereto in the Conditions;

“Eligible Investment” means:

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(a) demand or time deposits, certificates of deposit and short-term debt obligations
(including commercial paper); provided that in all cases such investments will mature at
least one Business Day prior to the next following Interest Payment Date and the short-term
unsecured, unsubordinated and unguaranteed debt obligations of the issuing or guaranteeing
entity or the entity with which the demand or time deposits are made (being a bank or
licensed EU credit institution) are rated at least A-1+ by S&P F1+ by Moody’s and
equivalent by R&I (or in the case of longer dated securities AAA by S&P, Aaa by Moody’s and
equivalent by R&I) or are otherwise acceptable to Moody’s and R&I; and

(b) a fund which is rated at least AAA by Moody’s and equivalent by R&I;

in each case denominated and repayable in Japanese Yen, with maturity dates that are no
later than the next Interest Payment Date;

“Event of Default” means the occurrence of any of the events set out in Condition 9 (Events
of Default);

“Fixed Amounts” has the meaning ascribed thereto in the Swap Agreement;

“HoldCo Shares” means, collectively, the UK Shares and the US Shares;

“HoldCos” means, collectively, UK HoldCo and US HoldCo;

“Interest Letter of Credit” means an irrevocable letter of credit dated on or about the date
hereof issued by the Interest Letter of Credit Bank (as defined therein) with respect to
payments of interest due on the Bonds and certain other amounts;

“Interest Payment Date” has the meaning ascribed thereto in the Bond Trust Deed;

“Issuer Accounts” means the Issuer Revenue Account, the Issuer UK Dividend Account, the
Issuer US Dividend Account (each as defined in the Accounts Bank Agreement) and the
Collateral Accounts and any other account or accounts held by the Issuer from time to time;

“Issuer Obligations” means the aggregate of all monies and other liabilities whether actual
or contingent for the time being due or owing by the Issuer:

	(a)	 	to or to the order of the Trustee and/or any receiver under the Deed of Charge,
the Bond Trust Deed and any other Bond Document at the times and in the manner provided
therein;
	 
	(b)	 	to the Agents under or in respect of the Agency Agreement and the Deed of
Charge;
	 
	(c)	 	to the Account Bank under or in respect of the Accounts Bank Agreement and the
Deed of Charge;
	 
	(d)	 	to the Cash Manager under or in respect of the Cash Management Agreement and
the Deed of Charge;
	 
	(e)	 	to the Bondholders under or in respect of the Bond Trust Deed; and
	 
	(f)	 	to the Swap Counterparty under or in respect of the Swap Agreement;

“Issuer Pledge Agreement” means a pledge by the Issuer of the US Shares in favour of the
Trustee dated on or about the date of this Deed;

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“Letter of Credit Bank” means the Interest Letter of Credit Bank, the Principal Letter of
Credit Bank or the Put Substitution Letter of Credit Bank;

“Letters of Credit” means, collectively, the Interest Letter of Credit, the Principal Letter
of Credit and any Put Substitution Letter of Credit;

“Liability” means any loss, damage, cost, charge, claim, demand, expense, judgement, decree,
action, proceeding, or other liability whatsoever (including, without limitation, in respect
of taxes, duties, levies and other charges) and including any value added tax or similar tax
charged or chargeable thereon and legal fees and expenses on a full indemnity basis;

“LLC Agreement” means the LLC agreement dated on or about the date hereof in respect of the
Issuer;

“Moody’s” means Moody’s Investor Services Inc.;

“Offering Circular” means the offering circular dated 12 October 2006 in respect of the
Bonds;

“Parent” means The Shaw Group Inc., a Louisiana corporation;

“Parent Pledge Agreement” means a pledge by the Parent of its membership interests in the
Issuer in favour of the Trustee dated on or about the date of this Deed;

“Potential Event of Default” means any condition, event or act which, with the lapse of time
and/or the issue, making or giving of any notice, certification, declaration, demand,
determination and/or request and/or the taking of any similar action and/or the fulfilment
of any similar condition, would, if not waived or remedied, constitute an Event of Default;

“Pre-Enforcement Priority of Payments” means the following order of priority (and, in each
case, only if and to the extent that payments or provisions of a higher order of priority
have been made in full):

	(a)	 	first, pro rata and pari passu, in or towards payment of all fees, costs,
charges, expenses, liabilities and all other amounts due and payable to the Trustee
under the Deed of Charge and under the Bond Trust Deed (including the Trustee’s
remuneration) which have not been paid by the Issuer;

	(b)	 	second, pro rata and pari passu in or towards payment of any amounts due and
payable to the Principal Paying Agent, the Paying Agents and the Calculation Agent
under the Agency Agreement, to the Account Bank under the Accounts Bank Agreement and
to the Cash Manager under the Cash Management Agreement;

	(c)	 	third, pro rata and pari passu, in or towards payment or discharge of any
amounts due to third parties (other than amounts described in items (a), (b), (d), (e),
(f), (g), (h) and (i)) under obligations incurred in the course of the Issuer’s
business (and only as permitted or contemplated by the terms of the Transaction
Documents), including payment of the Issuer’s liability (if any) to tax;

	(d)	 	fourth, in or towards payment of any Fixed Amounts due to the Swap Counterparty
under the Swap Agreement;

	(e)	 	fifth, in or towards payment of due but unpaid interest (including gross-up
payments to the Bondholders under Condition 8 (Taxation) and Default Interest) under
the Bonds;

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	(f)	 	sixth, in or towards payment of the Principal Amount Outstanding under the
Bonds and any Call Premium;

	(g)	 	seventh, in or towards payment of any amounts due to the Swap Counterparty
under the Swap Agreement and which are not paid either under paragraph (d) above or
from the Swap Draw Amount (as defined below);

	(h)	 	eighth, to pay any amounts due to the Servicer under the Administrative
Services Agreement; and

	(i)	 	ninth, to pay the surplus (if any) to the Issuer.

“Principal Amount Outstanding” has the meaning ascribed thereto in the Bond Trust Deed;

“Principal Letter of Credit” means a irrevocable letter of credit dated on or about the date
hereof issued by the Letter of Credit Bank with respect to payments of principal and certain
other amounts due on the Bonds;

“Put Option Agreements” means, collectively, the UK Put Option Agreement and the US Put
Option Agreement;

“Put Right” shall have the meaning ascribed to it in the UK Put Option Agreement and the US
Put Option Agreement;

“Put Substitution Letter of Credit Bank” has the meaning ascribed thereto in the Bond Trust
Deed;

“R&I” means Rating and Investment Information Inc.;

“Rating Agencies” means R&I and Moody’s;

“Receiver” means any receiver or analogous officer (including an administrative receiver)
appointed by the Trustee under this Deed;

“S&P” means Standard and Poor’s Rating Services, a division of the McGraw-Hill Companies,
Inc.;

“Secured Creditors” means the Bondholders, the Trustee, the Swap Counterparty, the
Calculation Agent, the Account Bank, the Paying Agents and the Cash Manager;

“Security” means the security created by the Issuer in favour of the Trustee by and pursuant
to this Deed, the Issuer Pledge Agreement and the Parent Pledge Agreement;

“Security Interest” means any mortgage, standard security, pledge (including any pledge
operating by law), lien, charge, assignment, assignation, hypothecation or security interest
or other agreement or arrangement having the effect of conferring security;

“Servicer” means The Shaw Group Inc. or any other replacement servicer of the Issuer
appointed pursuant to the Administrative Services Agreement;

“Shareholders Agreements” means, collectively, the US Shareholder Agreement and the UK
Shareholder Agreement;

“Subscription Agreement” means the subscription agreement dated on or about 10 October 2006
between the Issuer, the Parent and Morgan Stanley & Co. International Limited;

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“Swap Agreement” means the ISDA Master Agreement and the related schedule, confirmation and
credit support annex between the Issuer, the Swap Counterparty and the Swap Guarantor dated
on or about the date of this Deed;

“Swap Guarantee” means the swap guarantee issued by the Swap Guarantor in favour of the
Issuer dated on or about the date of this Deed;

“Taxes” means any or all present and future taxes, levies, imposts, duties, charges, fees,
deductions and withholdings imposed or required by any governmental, fiscal or other
competent authority in any jurisdiction (including, without limitation, any interest or
penalty payable in connection with any failure to pay or any delay in paying any of them)
and “Tax” shall be construed accordingly;

“this Deed” means this Deed, its schedules, and any deed executed in accordance with, or
expressed to be supplemental to, this Deed;

“Toshiba” means Toshiba Corporation, a company incorporated in Japan;

“Transaction Documents” means each of the following documents:

	(a)	 	Accounts Bank Agreement
	 
	(b)	 	Agency Agreement
	 
	(c)	 	Bond Trust Deed
	 
	(d)	 	Cash Management Agreement
	 
	(e)	 	Deed of Charge
	 
	(f)	 	Interest Letter of Credit
	 
	(g)	 	Principal Letter of Credit
	 
	(h)	 	Put Substitution Letter of Credit, if any
	 
	(i)	 	UK Investment Agreement
	 
	(j)	 	US Investment Agreement
	 
	(k)	 	US Put Option Agreement
	 
	(l)	 	UK Put Option Agreement
	 
	(m)	 	LLC Agreement
	 
	(n)	 	UK Shareholders Agreement
	 
	(o)	 	US Shareholders Agreement
	 
	(p)	 	Administrative Services Agreement
	 
	(q)	 	Issuer Pledge Agreement
	 
	(r)	 	Parent Pledge Agreement
	 
	(s)	 	Swap Agreement
	 
	(t)	 	Swap Guarantee

together with any other document designated as such by the Issuer and the Trustee;

“UK HoldCo” means Toshiba Nuclear Energy Holdings (U.K.) Limited, a company incorporated in
England;

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“UK Investment Agreement” means the investment agreement between, inter alia, the Issuer and
UK Holdco dated 4 October 2006 whereby the Issuer will acquire the UK Shares.

“UK Put Option Agreement” means the put option agreement dated on or about the date hereof
between the Issuer and Toshiba, whereby, inter alia, Toshiba grants the Issuer a Put Right
in respect of the UK Shares (as defined therein);

“UK Shareholders Agreement” means the shareholders agreement dated on or about the date
hereof between Toshiba, the UK HoldCo, the Issuer and other shareholders of UK Holdco;

“UK Shares” means 280 shares of Class A Stock of Toshiba Nuclear Energy Holdings (UK)
Limited;

“US HoldCo” means Toshiba Nuclear Energy Holdings (US) Inc., a Delaware corporation;

“US Investment Agreement” means the investment agreement between, inter alia, the Issuer and
US HoldCo dated 4 October 2006 whereby the Issuer will acquire the US Shares;

“US Put Option Agreement” means the put option agreement dated on or about the date hereof
between the Issuer and Toshiba, whereby, inter alia, Toshiba grants the Issuer a Put Right
in respect of the US Shares (as defined therein);

“US Shareholders Agreement” means the shareholders agreement dated on or about the date
hereof between Toshiba, the US HoldCo, the Issuer and other shareholders of US HoldCo;

“US Shares” means 800 shares of Class A Stock of Toshiba Nuclear Energy Holdings (US) Inc.;
and

“VAT” means value added tax and any other tax of a similar nature.

	1.2	 	Interpretation

	 	(a)	 	Words denoting the singular shall include the plural and vice versa.
	 
	 	(b)	 	Words denoting one gender only shall include the other genders.
	 
	 	(c)	 	Words denoting persons only shall include firms and corporations and vice
versa.
	 
	 	(d)	 	All references herein to a “party” shall be deemed to include references to its
successors and assigns and persons deriving title under or through them respectively.
	 
	 	(e)	 	All references herein to any statute or any provision of any statute shall be
deemed also to refer to any statutory modification or re-enactment thereof or any
statutory instrument, order or regulation made thereunder or under any such
modification or re-enactment.
	 
	 	(f)	 	All references herein to guarantees or to an obligation being guaranteed shall
be deemed to include respectively references to indemnities or to an indemnity being
given in respect thereof.
	 
	 	(g)	 	All references herein to any action, remedy or method of proceeding for the
enforcement of the rights of creditors shall be deemed to include, in respect of any
jurisdiction other than England, references to such action, remedy or method of

7

 

	 	 	 	proceeding for the enforcement of the rights of creditors available or appropriate in
such jurisdiction as shall most nearly approximate to such action, remedy or method of
proceeding described or referred to in these presents.
	 
	 	(h)	 	All references herein to taking proceedings against the Issuer shall be deemed
to include references to proving in the winding up of the Issuer.
	 
	 	(i)	 	Unless the context otherwise requires, words or expressions used in these
presents shall bear the same meanings as in the Companies Act 1985 of Great Britain.
	 
	 	(j)	 	All references herein to “Yen” or to “JPY” shall be construed as references to
the lawful currency for the time being of Japan.
	 
	 	(k)	 	In this Deed, references to Schedules, Clauses, paragraphs and sub-paragraphs
shall be construed as references to the Schedules to this Deed and to the Clauses,
paragraphs and sub-paragraphs of this Deed respectively.
	 
	 	(l)	 	In this Deed, tables of contents and Clause headings are included for ease of
reference and shall not affect the construction hereof.

	2	 	Security Trust
	 
	2.1	 	Appointment of Trustee
	 
	 	 	Each of the Secured Creditors (other than the Trustee) appoints the Trustee to act as
trustee of all the covenants, undertakings and Security Interests made or given under this
Deed and the other Transaction Documents.
	 
	2.2	 	Declaration of Security Trust
	 
	 	 	The Trustee shall hold all the covenants, undertakings, charges, assignments, Security
Interests and other rights and benefits made or given or to be made or given under or
pursuant to the terms of this Deed, the Bond Trust Deed and the other Transaction Documents
to which it is a party or which are granted in its favour on trust for the Secured Creditors
in respect of the Issuer Obligations owed to each of them respectively upon and subject to
the terms and conditions of this Deed and the Bond Trust Deed. For the avoidance of doubt,
the Trustee shall not be required to have regard to the interest of the Issuer in the
exercise or non-exercise of any such rights, powers, authorities, discretions and remedies
or to comply with any direction given by the Issuer in relation thereto. Furthermore, the
Trustee shall have regard to the interest of all the Bondholders equally as regards all
powers, trusts, authorities, duties and discretions of the Trustee. Except where expressly
provided otherwise, and except in respect of the Swap Counterparty, so long as any of the
Bonds remain outstanding, the Trustee is not required to have regard to the interests of any
other person entitled to the benefit of the Security.
	 
	3	 	Creation of Security
	 
	3.1	 	General

	 	(a)	 	All the Security:

	 	(i)	 	is created in favour of the Trustee;
	 
	 	(ii)	 	is created over the present and future assets of the Issuer;

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	 	(iii)	 	is security for the payment or discharge of the Issuer Obligations; and
	 
	 	(iv)	 	is made with full title guarantee.

	 	(b)	 	The term “all of its rights” as used in this Clause 3 includes, unless the
context requires otherwise:

	 	(i)	 	the benefit of all covenants, undertakings, representations,
warranties and indemnities;
	 
	 	(ii)	 	all powers and remedies of enforcement and/or protection;
	 
	 	(iii)	 	all rights to receive payment of all amounts assured or
payable (or to become payable) and all rights to take such steps as are
required to cause payment to become due and payable; and
	 
	 	(iv)	 	all causes and rights of action,

in each case, in respect of the relevant Charged Property.

	3.2	 	Contractual rights
	 
	 	 	The Issuer, by way of first fixed security for the payment or discharge of the Issuer
Obligations, subject to Clause 5, HEREBY ASSIGNS (or, to the extent not assignable, charges)
by way of security to the Trustee all of its right, title, interest and benefit, present and
future, in, to and under the Bond Trust Deed, the Swap Agreement, the Cash Management
Agreement, the Agency Agreement and the Accounts Bank Agreement and all rights to receive
payment of any amounts which may become payable to the Issuer thereunder and all payments
received by the Issuer thereunder including, without limitation, all rights to serve notices
and/or make demands thereunder and/or to take such steps as are required to cause payments
to become due and payable thereunder and all rights of action in respect of any breach
thereof and all rights to receive damages or obtain other relief in respect thereof.
	 
	3.3	 	Issuer Accounts
	 
	 	 	The Issuer, by way of first fixed security for the payment or discharge of the Issuer
Obligations, subject to Clause 5, HEREBY CHARGES in favour of the Trustee all its right,
title, interest and benefit, present and future, in and to all moneys now or at any time
hereafter standing to the credit of the Issuer Accounts, together with all interest accruing
from time to time thereon and the debts represented thereby.
	 
	3.4	 	Eligible Investments
	 
	 	 	The Issuer, by way of first fixed security for the payment or discharge of the Issuer
Obligations, subject to Clause 5, HEREBY CHARGES in favour of the Trustee all its right,
title, interest and benefit, present and future, in and to such Eligible Investments to be
made from time to time by or on behalf of the Issuer using moneys standing to the credit of
the Issuer Accounts and all moneys, income and proceeds payable thereunder or accrued
thereon and the benefit of all covenants relating thereto and all rights and remedies for
enforcing the same.
	 
	3.5	 	UK Shares
	 
	 	 	The Issuer, by way of first fixed security for the payment or discharge of the Issuer
Obligations, subject to Clause 5, HEREBY CHARGES by way of a first fixed charge in favour of
the Trustee all its right, title, interest and benefit, present and future, in and to the

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	 	 	UK Shares and all dividends or any right, money, property accruing or offered at any time in
relation thereto by way of redemption, substitution, exchange, bonus or preference, under
option rights or otherwise, all covenants relating thereto and all rights and remedies for
enforcing the same.
	 
	3.6	 	Floating charge

	 	(a)	 	The Issuer, by way of security for the payment or discharge of the Issuer
Obligations, subject to Clause 5, HEREBY CHARGES to the Trustee by way of first
floating charge the whole of its undertaking and all its property and assets whatsoever
and wheresoever, present and future other than any property or assets from time to time
or for the time being effectively charged or otherwise effectively assigned as security
by Clauses 3.2 to 3.5 (inclusive).
	 
	 	(b)	 	The floating charge created by paragraph (a) above may not be converted into a
fixed charge solely by reason of:

	 	(i)	 	the obtaining of a moratorium; or
	 
	 	(ii)	 	anything done with a view to obtaining a moratorium,

under the Insolvency Act 2000.

	 	(c)	 	The floating charge created by paragraph (a) above is a qualifying floating
charge for the purpose of paragraph 14 of Schedule B1 of the Insolvency Act 1986.

	3.7	 	Acknowledgements and undertakings

	 	(a)	 	The execution of this Deed by each of the Parties shall constitute:

	 	(i)	 	notice to each of them of the assignment of all the Issuer’s
right, title, interest and benefit, present and future, in, to and under the
agreements referred to in Clause 3.2; and
	 
	 	(ii)	 	an express acknowledgement by each of them of such assignments,
charges and other Security Interests made or granted by the foregoing
provisions of this Clause 3.

	 	(b)	 	Each of the Secured Creditors (other than the Trustee) undertakes to the
Trustee not to do anything inconsistent with the Security or anything otherwise
inconsistent with the terms of this Deed, or the Transaction Documents or to knowingly
prejudice the security granted to the Trustee pursuant to this Clause 3 or the Charged
Property or the Trustee’s interest therein provided that, without prejudice to Clause
21, nothing herein shall be construed as limiting the rights exercisable by the
aforesaid parties in accordance with the terms of their respective agreements with the
Issuer.
	 
	 	(c)	 	Each of the Secured Creditors shall be bound by, and deemed to have notice of,
all of the provisions of the Transaction Documents as if they were parties to each
Transaction Document.

	3.8	 	Trustee
	 
	 	 	Notwithstanding anything else in this Deed, it is hereby agreed that the Trustee does not
assume, nor shall the Trustee be obliged to perform, any obligations of any other Party and
nothing herein shall be construed so as to transfer any such obligations to the Trustee.

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	3.9	 	Exercise of certain discretions
	 
	 	 	Without prejudice to the rights of the Trustee after the Security has become enforceable,
the Issuer hereby authorises the Trustee to exercise, or refrain from exercising, all its
rights, powers, authorities, discretions and remedies under or in respect of the agreements
referred to in Clause 3.2 in such manner as in its absolute discretion it shall think fit.
	 
	3.10	 	Ineffective Security
	 
	 	 	If, for any reason, the purported assignment or charge by way of security of any of the
Charged Property is found to be ineffective, the Issuer will hold the benefit of such
Charged Property and any sums received in respect of such Charged Property or any Security
Interest, guarantee or indemnity or undertaking of whatever nature given to secure the
Charged Property on trust for the Trustee until such time as the Issuer Obligations are
fully paid and discharged and will (a) account to the Trustee for or otherwise apply all
such sums as the Trustee may direct, (b) exercise any rights it may have in respect of the
Charged Property at the direction of the Trustee and (c) at its own cost take such action
and execute such documents in connection with the foregoing as the Trustee may in its sole
discretion require.
	 
	3.11	 	Continuing security
	 
	 	 	Without prejudice to the generality of Clauses 3.2, 3.3, 3.4 and 3.6, the security contained
in or granted pursuant to this Deed shall remain in force as continuing security for the
Issuer Obligations notwithstanding any settlement of account or the existence at any time of
a credit balance on any current or other account or any other act, event or matter
whatsoever.
	 
	3.12	 	Provisions with respect to the Issuer Accounts

	 	(a)	 	The Issuer Accounts must be maintained at a branch of the Account Bank approved
by the Trustee. The initial Account Bank is The Bank of New York.
	 
	 	(b)	 	The Account Bank may be changed to another bank or financial institution if the
Trustee so requires.
	 
	 	(c)	 	A change of Account Bank only becomes effective when the proposed new Account
Bank agrees with the Trustee and the Issuer, in a manner satisfactory to the Trustee,
to fulfil the role of the Account Bank under this Deed.
	 
	 	(d)	 	If there is a change of Account Bank, the amount (if any) standing to the
credit of the Issuer Accounts maintained with the old Account Bank shall be transferred
to the corresponding Issuer Accounts maintained with the new Account Bank immediately
upon appointment of the new Account Bank taking effect.
	 
	 	(e)	 	The Issuer shall take any action which the Trustee may require to facilitate a
change of Account Bank and any transfer of credit balances (including the execution of
bank mandate forms) to a new Account Bank.

3.13 Provisions with respect UK Shares and Eligible Investments

	 	(a)	 	The Issuer shall pay for all calls and other payments (if any) due and payable
in respect of the UK Shares or any Eligible Investment.
	 
	 	(b)	 	The Issuer shall promptly copy to the Trustee and comply with all requests for
information which is within its knowledge and which are made under section 212 of

11

 

	 	 	 	the Companies Act 1985 or any similar provision contained in any articles of association or
other constitutional document relating to the UK Shares or, to the extent applicable,
any Eligible Investment.
	 
	 	(c)	 	The Issuer shall comply with all conditions and obligations assumed by it in
respect of any Eligible Investments.
	 
	 	(d)	 	Prior to the delivery of a Bond Enforcement Notice:

	 	(i)	 	the voting rights, powers and other rights in respect of the UK
Shares and, to the extent applicable, the Eligible Investments shall (if
exercisable by the Trustee) be exercised in any manner which the Issuer may
direct in writing; and
	 
	 	(ii)	 	all dividends or other income paid or payable in relation to
the UK Shares and, to the extent applicable, any Eligible Investments shall be
paid directly to the Issuer.

	 	(e)	 	After the delivery of a Bond Enforcement Notice, the Trustee may exercise (in
the name of the Trustee and without any further consent or authority on the part of the
Issuer) any voting rights and any powers or rights which may be exercised by the legal
or beneficial owner of the UK Shares or any Eligible Investment, any person who is the
holder of the UK Shares or any Eligible Investment or otherwise.

	4	 	Restriction on Exercise of Certain Rights
	 
	4.1	 	Payments to Issuer Accounts
	 
	 	 	At all times prior to the release, re-assignment and/or discharge under Clause 5 of the
Security, the Issuer will, save as otherwise provided in the Transaction Documents or unless
the Trustee otherwise agrees in writing, procure that all amounts received by the Issuer
under or in respect of the Transaction Documents will be credited to the Issuer Accounts in
accordance with the terms of the Transaction Documents.
	 
	4.2	 	No withdrawal from the Issuer Accounts
	 
	 	 	At all times during the subsistence of the Security, the Issuer shall not be entitled to
withdraw or transfer from the Issuer Accounts any monies or securities standing to the
credit thereof or direct any payment to be made therefrom to any person save to the extent
expressly permitted under the Transaction Documents, without the Trustee’s prior written
consent.
	 
	5	 	Release of Charged Property
	 
	5.1	 	Upon proof being given to the satisfaction of the Trustee of the irrevocable and
unconditional payment or discharge by the Issuer of all the Issuer Obligations, the Trustee
shall, at the request and cost of the Issuer, release, reassign or discharge the Charged
Property to, or to the order of, the Issuer.
	 
	5.2	 	Upon the Issuer (or the Cash Manager on its behalf) making a disposal of an
Eligible Investment charged pursuant to Clause 3.4, the Trustee shall, if so requested in
writing by and at the sole cost and expense of the Issuer, but without being responsible for
any Liability whatsoever occasioned by so acting upon such written request, release, reassign
or discharge from the Security Interests constituted by or pursuant to this Deed the relevant
Charged Property to the Issuer or to the order of the Issuer provided that the

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	 	 	proceeds of
such disposal are paid into an account charged pursuant to Clause 3.3 in accordance with the
relevant provisions of the Cash Management Agreement.
	 
	5.3	 	From time to time, for the avoidance of doubt, there shall be deemed to be released
from the Security Interests constituted by this Deed all amounts which the Issuer (in respect
of the Dividend Accounts but only in accordance with Condition 4) and the Cash Manager on
behalf of the Issuer (in respect of all Issuer Accounts), is permitted to withdraw from the
Issuer Accounts, any such release to take effect immediately upon the relevant withdrawal
being made provided that where the relevant amount is transferred to another Issuer Account,
it shall thereupon become subject to the Security Interests constituted by this Deed in
respect of such Issuer Account.
	 
	5.4	 	The Secured Creditors authorise the Trustee to release or reassign (as the case may
be) on their behalf any charge created over any Eligible Investment or any assignment of a
buy/sell back agreement or repurchase agreement under this Deed in order to allow the Cash
Manager to liquidate the Eligible Investments free of any Security Interests.
	 
	6	 	Prior to service of a Bond Enforcement Notice
	 
	6.1	 	Application
	 
	 	 	No payment, transfer or withdrawal from any of the Issuer Accounts may be made under this
Clause 6 at any time after a Bond Enforcement Notice has been served except with the prior
written consent of the Trustee.
	 
	6.2	 	Priority of payments prior to service of a Bond Enforcement Notice
	 
	 	 	Notwithstanding the Security Interests created by or pursuant to Clause 3, and provided that
no Bond Enforcement Notice has been served and the Trustee has not taken any steps to
enforce the Security, the Cash Manager (on behalf of the Issuer and the Trustee) shall apply
all of the Issuer’s funds (except (i) any amounts and JGB’s posted as collateral under the
Swap Agreement and standing to the credit of the Collateral Accounts (ii) Eligible Dividends
and (iii) other than on the date on which the Bonds are redeemable, Acquisition Adjustment
Amounts) in accordance with the Pre-Enforcement Priority of Payments and shall instruct the
Account Bank, or cause the Account Bank to be instructed, to withdraw (unless the intended
recipient of the relevant payment agrees otherwise) monies from the Issuer Accounts to be
applied in accordance with the Pre-Enforcement Priority of Payments.
	 
	 	 	The Interest Letter of Credit shall be drawn for an amount equal to all payments outlined in
paragraphs (a), (b), (c), (d), (e) and (h) of the Pre-Enforcement Priority of Payments (the
“Pre-Enforcement Permitted Expenses Draw Amount”). Any such Pre-Enforcement Permitted
Expenses Draw Amount shall form part of the funds of the Issuer to be applied in accordance
with the Pre-Enforcement Priority of Payments.
	 
	 	 	After the Pre-Enforcement Permitted Expenses Draw Amount has been drawn, separately, the
Interest Letter of Credit shall be drawn for an amount equal to the Swap Termination Payment
due from the Issuer to the Swap Counterparty (if any) and gross-up payments due to the Swap
Counterparty under Section 2(d) of the Swap Agreement (if any) (the “Swap Draw Amount”), and
such amount shall be paid to the Swap Counterparty. Any such Swap Draw Amount shall not form
part of the funds of the Issuer to be applied in accordance with the Pre-Enforcement
Priority of Payments.

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	 	 	Eligible Dividends (as defined in the Conditions) shall not form a part of the funds of the
Issuer to be applied in accordance with the Pre-Enforcement Priority of Payments. Provided
no Bond Enforcement Notice has been served, Eligible Dividends may be distributed to the
Parent. Acquisition Adjustment Amounts shall remain in the Issuer Revenue Account until such
date on which the Bonds are redeemable in full, whereupon such amounts shall be applied in
accordance with the Pre-Enforcement Priority of Payments or, after a Bond Enforcement Notice
is served by the Trustee, whereupon such amounts shall be applied in accordance with the
Post-Enforcement Priority of Payments.
	 
	6.3	 	Eligible Investments
	 
	 	 	Notwithstanding the Security Interests created by or pursuant to Clause 3, Eligible
Investments may, on any Business Day, be sold or redeemed or disposed of or realised or
otherwise deposited subject always to the other provisions of this Deed (including without
limitation Clause 3.3) and to the provisions of Clause 5 (Investments) of Schedule 1 of the
Cash Management Agreement.
	 
	6.4	 	VAT
	 
	 	 	If any sums which are payable by the Issuer under Clauses 6.2 or 7.2 are subject to VAT, the
Issuer shall make payment of the amount in respect of VAT against production of a valid VAT
invoice to the relevant person in accordance with the order of priorities set out in those
Clauses.
	 
	6.5	 	Management and Application of Funds
	 
	 	 	The Issuer shall take or cause to be taken such action as may from time to time be necessary
on its part to ensure that the relevant Issuer Accounts (as applicable, excluding the
Collateral Accounts) shall from time to time be credited with all amounts received by the
Issuer, including, without limitation, amounts falling within any of the following
categories (but excluding cash collateral and JGBs governed by Clause 6.6):

	 	(a)	 	dividends or other amounts received by the Issuer from the HoldCos;
	 
	 	(b)	 	amounts received by the Issuer from Toshiba or other stockholders of US HoldCo
or UK HoldCo under the Investment Agreements, the Put Option Agreements or the
Shareholders Agreements, as applicable;
	 
	 	(c)	 	interest received on the Issuer Accounts;
	 
	 	(d)	 	the proceeds arising from the disposal of any Eligible Investments and any and
all income or other distributions received by the Issuer in respect thereof or arising
from the proceeds of any Eligible Investments;
	 
	 	(e)	 	amounts drawn under the Letters of Credit; and
	 
	 	(f)	 	such other payments received by the Issuer as are, or ought in accordance with
this Deed to be, comprised in the Charged Property and which are not otherwise paid
into the Issuer Accounts.

	6.6	 	Collateral Accounts

The Collateral Accounts are established and may only be used for the following purposes:

	 	6.6.1	 	Receiving

On any Business Day (as defined in the Conditions):

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	 	(i)	 	the deposit of any cash collateral and/or JGBs (as defined in
the Swap Agreement) received from the Swap Counterparty under the Swap
Agreement (in an amount notified to the Cash Manager and Trustee 1 Business Day
prior to such deposit); and
	 
	 	(ii)	 	interest on the Collateral Accounts and interest under the JGBs.

	 	6.6.2	 	Paying

On any Business Day:

	 	(i)	 	to the Swap Counterparty, cash collateral and/or JGB’s (in an
amount notified at least three Business Days prior to the requested date for
payment and/or transfer to the Cash Manager by the Swap Counterparty) required
to be repaid under the Swap Agreement; and
	 
	 	(ii)	 	following the termination of the Swap Agreement, to the Issuer
Revenue Account, all amounts standing to the credit of the Collateral Accounts
which are not required to be paid to the Swap Counterparty under paragraph (i)
above.

	7	 	Following Service of a Bond Enforcement Notice

	7.1	 	Bond Enforcement Notice
	 
	 	 	From and including the time when the Trustee serves a Bond Enforcement Notice on the
Issuer:

	 	(a)	 	no amount may be withdrawn from the Issuer Accounts without the prior written
consent of the Trustee; and
	 
	 	(b)	 	if not already crystallised, any charge created under or pursuant to this Deed,
which is a floating charge, shall immediately and without further action on the part of
the Trustee, crystallise and become a fixed charge.

	7.2	 	Priority of payments upon service of a Bond Enforcement Notice
	 
	 	 	Upon and after the service of a Bond Enforcement Notice, all funds (except any Return
Amounts payable to the Swap Counterparty and standing to the credit of the Collateral
Accounts) received by the Issuer or recovered by or on behalf of the Trustee or any Receiver
for the benefit of the Secured Creditors (including funds recovered as a result of
enforcement of the Security, Acquisition Adjustment Amounts and Eligible Dividends) shall be
held by the Trustee on trust to be applied in the following order of priority (the
“Post-Enforcement Priority of Payment”) (and, in each case, only if and to the extent that
payments or provisions of a higher order of priority have been made in full):

	 	(a)	 	first, pro rata and pari passu, in or towards payment of all fees, costs,
charges, expenses, liabilities and all other amounts due and payable to the Trustee
under the Deed of Charge and under the Bond Trust Deed or any receiver appointed by the
Trustee (including any taxes required to be paid, the costs of realising any Security
and the Trustee’s remuneration) which have not been paid by the Issuer;
	 
	 	(b)	 	second, pro rata and pari passu in or towards payment of any amounts due and
payable to the Principal Paying Agent, the Paying Agents and the Calculation Agent
under the Agency Agreement, to the Account Bank under the Accounts Bank Agreement and
to the Cash Manager under the Cash Management Agreement;

15

 

	 	(c)	 	third, in or towards payment of any Fixed Amounts due to the Swap Counterparty
under the Swap Agreement;
	 
	 	(d)	 	fourth, in or towards payment of due but unpaid interest under the Bonds
(including gross-up payments to the Bondholders under Condition 8 (Taxation) and
Default Interest);
	 
	 	(e)	 	fifth, in or towards payment of the Principal Amount Outstanding under the
Bonds and any Call Premium;
	 
	 	(f)	 	sixth, in or towards payment of any amounts due to the Swap Counterparty under
the Swap Agreement and which are not paid either under paragraph (c) above or from the
Swap Draw Amount;
	 
	 	(g)	 	seventh, to pay any amounts due to the Servicer under the Administrative
Services Agreement; and
	 
	 	(h)	 	eighth, to pay the surplus (if any) to the Issuer.

The Interest Letter of Credit shall be drawn for an amount equal to all payments outlined in
paragraphs (a), (b), (c), (d) and (g) of the Post-Enforcement Priority of Payments above
(the “Post-Enforcement Permitted Expenses Draw Amount”). Any such Post-Enforcement Permitted
Expenses Draw Amount shall form part of the funds of the Issuer to be applied in accordance
with the Post-Enforcement Priority of Payments.

After the Post-Enforcement Permitted Expenses Draw Amount is drawn, separately, from any
remaining amounts available to be drawn under the Interest Letter of Credit, an amount equal
to the Swap Draw Amount (if any) shall be drawn and paid to the Swap Counterparty. Any such
Swap Draw Amount shall not form part of the funds of the Issuer to be applied in accordance
with the Post-Enforcement Priority of Payments.

Eligible Dividends and Acquisition Adjustment Amounts shall form part of the funds of the
Issuer to be applied in accordance with the Post-Enforcement Priority of Payments.

Upon an Event of Default and/or Termination Event occurring (each term as defined in the
Swap Agreement) in respect of the Issuer, the Trustee shall, but without any liability,
personal or otherwise, in respect thereof to the Swap Counterparty or any other person,
direct the Cash Manager to pay, as soon as reasonably practicable, any Return Amount (as
such term is defined in the Credit Support Annex attached to the Swap Agreement) to the Swap
Counterparty (the “Return Amount”) out of the amounts and JGB’s posted as collateral (the
“Posted Collateral”) under the Swap Agreement. The Swap Counterparty agrees that it shall
give 5 clear Business Days’ notice to the Trustee and Cash Manager of the quantum of the
Return Amount and such information to the Trustee and Cash Manager’s satisfaction concerning
the account to which the Return Amount shall be remitted. The Issuer undertakes (i) to
deposit all Posted Collateral into the relevant Collateral Account and (ii) to only pay out
amounts standing to the credit of the Collateral Accounts in respect of Posted Collateral,
either to pay the Return Amount payable to the Swap Counterparty when due or to transfer the
Posted Collateral less the Return Amount to the Issuer Revenue Account following any
termination of the Swap Agreement. For the avoidance of doubt, nothing in this Clause 7.2 is
intended to, nor shall, create a trust. The parties agree that the Trustee and the Cash
Manager shall be entitled to deduct any direct or indirect costs and expenses they incur in
carrying out the actions described in this paragraph. In their sole discretion, the Trustee
and Cash Manager shall be entitled to

16

 

require satisfactory indemnity and/or security before
they carry out any action contemplated in this paragraph.

	8	 	Acknowledgement of Secured Creditors
	 
	8.1	 	Each of the Secured Creditors (other than the Trustee and the Bondholders) hereby
acknowledges and concurs with all the provisions of the Bond Trust Deed and acknowledges that
the Trustee shall not have regard to the interests of the other Secured Creditors and each of
them agrees that it shall have no claim against the Trustee as a result of the application
thereof.
	 
	8.2	 	Without prejudice to Clause 8.1 above, the Issuer hereby gives notice to each of
the other parties to this Deed, and each of the parties to this Deed (other than the Issuer)
acknowledges receipt of such notice, that the Issuer has made the assignment to the Trustee
pursuant to Clause 3.2 and in accordance with the terms hereof.
	 
	8.3	 	Each of the Secured Creditors (other than the Bondholders) hereby acknowledges that
no amendment may be made to a Transaction Document without the consent of all parties to such
Transaction Document unless the Trustee is of the opinion that such modification is of a
formal, minor or technical nature or, is to correct a manifest error.
	 
	9	 	The Trustee’s Powers
	 
	9.1	 	Enforceability and Bond Enforcement Notice

	 	(a)	 	The security created under and pursuant to this Deed shall become immediately
enforceable and the power of sale and other powers conferred by section 101 of the Law
of Property Act 1925 (the “1925 Act”), as varied or amended by this Deed, shall be
exercisable by the Trustee forthwith upon the occurrence of an Event of Default.
	 
	 	(b)	 	The Trustee will as soon as practicable notify each Secured Creditor of any
enforcement of the Security.
	 
	 	(c)	 	Without prejudice to the effectiveness of any service of a Bond Enforcement
Notice by the Trustee in accordance with Condition 9 (Events of Default), the Issuer
shall provide copies of any Bond Enforcement Notice to each Secured Creditor.

	9.2	 	Amounts due
	 
	 	 	The Issuer Obligations shall become due for the purposes of section 101 of the 1925 Act and
the statutory power of sale and of appointing a Receiver which are conferred on the Trustee
under the 1925 Act (as varied or extended by this Deed) and all other powers shall be deemed
to arise immediately after execution of this Deed.
	 
	9.3	 	Power of sale
	 
	 	 	Section 103 of the Law of Property Act 1925 Act shall not apply in relation to any of the
charges contained in this Deed and the statutory power of sale (as extended by this Deed)
and all other powers shall be exercisable at any time after the occurrence of an Event of
Default.

17

 

	9.4	 	Extension of Law of Property Act 1925

The provisions of the 1925 Act (to the extent applicable) relating to the power of sale and
the other powers conferred by sections 101(1) and (2) are hereby extended in relation to the
Issuer (as if such extensions were contained therein) to authorise the Trustee, and the
Trustee is hereby authorised, at its absolute discretion at any time following the
occurrence of an Event of Default and subject to the Trustee being satisfied as to the
indemnification available to it in relation to the exercise of such powers:

	 	(a)	 	to make demands in the name of the Secured Creditors or in its own right for
any moneys and liabilities in respect of the Charged Property;
	 
	 	(b)	 	to sell, transfer, convey, vary or otherwise dispose of the Issuer’s title to
or interest in the Charged Property, and to do so for any shares, debentures or other
securities whatsoever, or in consideration of an agreement to pay all or part of the
purchase price at a later date or dates, or an agreement to make periodical payments,
whether or not the agreement is subject to a Security Interest or a guarantee, or for
such other consideration whatsoever as the Trustee may think fit, and also to grant any
option to purchase, and to effect exchanges of, any of the Charged Property;
	 
	 	(c)	 	with a view to, or in connection with, selling the Charged Property (or
offering it for sale) to repair, replace and develop the Charged Property and to apply
for any appropriate permission, licence, registration or approval;
	 
	 	(d)	 	to sever any fixtures and to sell them apart from the land or buildings on or
to which they are affixed, and also to apportion any rent affecting the property sold,
to charge such rent upon the property sold or retained and to agree to indemnify by any
means any purchaser in respect of such rent or any covenants or undertakings, or to
take an indemnity or reserve powers of entry in respect of the property sold or
retained;
	 
	 	(e)	 	with a view to or in connection with the sale of the Charged Property, to carry
out any transaction, scheme or arrangement which the Trustee may, in its absolute
discretion, consider appropriate;
	 
	 	(f)	 	to insure the Charged Property against such risks and for such amounts as the
Trustee may consider prudent; and
	 
	 	(g)	 	to do all or any of the things or exercise all or any of the powers which are
mentioned or referred to in Clause 10.6 as if each of them was expressly conferred on
the Trustee by this Deed and which may not be included in paragraphs (a) to (f) above.

9.5 Additional powers

The Trustee shall have the power to insure against any liabilities or obligations arising:

	 	(a)	 	as a result of the Trustee acting or
failing to act in a certain way (other
than as provided in Clause 17 of the Bond Trust Deed);
	 
	 	(b)	 	as a result of any act or failure to act by the Receiver or any person or
persons to whom the Trustee has delegated any of its trusts, rights, powers, duties,
authorities or discretions, or appointed as its agent;
	 
	 	(c)	 	in connection with the Charged Property; or
	 
	 	(d)	 	in connection with or arising from the enforcement of the Security.

18

 

	 	 	The Trustee shall not be under any obligation to insure in respect of such liabilities
and/or obligations, but to the extent that it does so, the Issuer shall on written request
pay all insurance premiums and expenses which the Trustee may properly incur in relation to
such insurance. If the Issuer fails to reimburse the Trustee, the Trustee shall be entitled
to be indemnified out of the Charged Property in respect thereof, and in the case of a Bond
Enforcement Notice having been served, the indemnification of all such insurance premiums
and expenses shall be payable in priority to payments to the Bondholders and all other
Secured Creditors and otherwise in accordance with this Deed.
	 
	9.6	 	The Trustee may at any time after the occurrence of an Event of Default apply to a
court of competent jurisdiction (the “Court”) for an order that the powers and trusts of this
Deed be exercised or carried into execution under the direction of the Court and for the
appointment of a Receiver of the Charged Property or any part thereof and for any other order
in relation to the execution and administration of the powers and trusts hereof as the Trustee
shall deem expedient, and it may assent to or approve any application to the Court made at the
instance of any of the Bondholders.
	 
	9.7	 	If, after the service of a Bond Enforcement Notice, the amount of the moneys at any
time available for payment of principal and interest in respect of any class of Bonds under
Clause 7.2 shall be less than one-tenth of the Principal Amount Outstanding of all the Bonds
of the relevant class then outstanding, the Trustee may, at its absolute discretion and
without incurring any liability therefor, invest such moneys in any investments for the time
being authorised by English law for the investment by trustees of trust monies or in any other
investments which may be selected by the Trustee or by placing the same on deposit in the name
or under the control of the Trustee with such bank or financial institution as the Trustee may
think fit. The Trustee may at any time vary or transfer any of such investments for or into
other such investments or convert any monies into any other currency as the Trustee at its
absolute discretion may determine; and such investments or deposits with the resulting income
thereof may be accumulated until the accumulations, together with any other funds for the time
being under the control of the Trustee and applicable for the purpose, shall amount to a sum
equal to at least one-tenth of the Principal Amount Outstanding of all the Bonds then
outstanding and such accumulations and funds shall then be applied in accordance with Clause
7.2.
	 
	10	 	Receiver
	 
	10.1	 	Appointment
	 
	 	 	At any time following occurrence of an Event of Default, the Trustee may, at its absolute
discretion, appoint, by writing or by deed, such person or persons (including an officer or
officers of the Trustee) as the Trustee thinks fit, to be Receiver, of the Charged Property
or any part thereof and, in the case of an appointment of more than one person, to act
together or independently of the other or others.
	 
	10.2	 	Removal and replacement
	 
	 	 	Except as otherwise required by statute, the Trustee may by writing or by deed remove a
Receiver and appoint another in his place or to act with a Receiver and the Trustee may
apply to the court for an order removing an administrative receiver.

19

 

	10.3	 	Extent of appointment
	 
	 	 	The exclusion of any part of the Charged Property from the appointment of the Receiver shall
not preclude the Trustee from subsequently extending his or their appointment (or that of
the Receiver replacing him or them) to that part of the Charged Property or appointing
another Receiver over any other part of the Charged Property.
	 
	10.4	 	Agent of the Issuer
	 
	 	 	The Receiver shall be the agent of the Issuer and the Issuer alone shall be responsible for
the Receiver’s contracts, engagements, acts, omissions, misconduct, negligence or default
and for liabilities incurred by him and in no circumstances whatsoever shall the Trustee be
in any way responsible for or incur any liability in connection with his contracts,
engagements, acts, omissions, misconduct, negligence or default, and if a liquidator of the
Issuer shall be appointed, the Receiver shall act as principal and not as agent for the
Trustee.
	 
	10.5	 	Remuneration
	 
	 	 	The remuneration of the Receiver shall be fixed by the Trustee and may be or include a
commission calculated by reference to the gross amount of all moneys received or otherwise
and may include remuneration in connection with claims, actions or proceedings made or
brought against the Receiver by the Issuer or any other person or the performance or
discharge of any obligation imposed upon him by statute or otherwise, but subject to Clause
7.2 (as applicable), such remuneration shall be payable hereunder by the Issuer alone. The
amount of such remuneration shall be paid in accordance with the terms and conditions and in
the manner agreed from time to time between the Receiver and the Trustee.
	 
	10.6	 	Powers
	 
	 	 	The Receiver, in addition to any powers conferred on a receiver by statute or common law,
shall have the following powers:

	 	(a)	 	to enter upon, take possession of, get in and collect the Charged Property (or
such part thereof in respect of which he may be appointed) or any part thereof
including income whether accrued before or after the date of his appointment;
	 
	 	(b)	 	to sell, exchange, license, surrender, release, disclaim, abandon, return or
otherwise dispose of or in any way whatsoever deal with the Charged Property or any
interest in the Charged Property or any part thereof for such consideration (if any)
and upon such terms (including by deferred payment or payment by instalments) as he may
think fit and to concur in any such transaction;
	 
	 	(c)	 	to sell or concur in selling the whole or any part of the Issuer’s business
whether as a going concern or otherwise;
	 
	 	(d)	 	in connection with the exercise or the proposed exercise of any of his powers
or in order to obtain payment of his remuneration (whether or not it is already
payable), to borrow or raise money from any person without security or on the security
of any of the Charged Property and generally in such manner and on such terms as he may
think fit;
	 
	 	(e)	 	to bring, defend, submit to arbitration, negotiate, compromise, abandon and
settle any claims, disputes and proceedings concerning the Charged Property or any part
thereof;

20

 

	 	(f)	 	to transfer all or any of the Charged Property and/or any of the liabilities of
the Issuer to any other company or body corporate, whether or not formed or acquired
for the purpose and to form a subsidiary or subsidiaries of the Issuer;
	 
	 	(g)	 	to redeem, discharge or compromise any Security Interests from time to time
having priority to or ranking pari passu with this Deed;
	 
	 	(h)	 	to effect or maintain indemnity insurance and other insurance and obtain bonds
and performance guarantees;
	 
	 	(i)	 	in connection with the exercise of any of his powers, to execute or do, or
cause or authorise to be executed or done, on behalf of or in the name of the Issuer or
otherwise, as he may think fit, all documents, receipts, registrations, acts or things
which he may consider appropriate;
	 
	 	(j)	 	to exercise any powers, discretions, voting, conversion or other rights or
entitlements in relation to any of the Charged Property or incidental to the ownership
of or rights in or to any of the Charged Property and to complete or effect any
transaction entered into by the Issuer and complete, disclaim, abandon or modify all or
any of the outstanding contracts or arrangements of the Issuer relating to or affecting
the Charged Property;
	 
	 	(k)	 	to exercise all powers (as applicable) as are described in Schedule 1 to the
Insolvency Act 1986, whether or not the Receiver is an “administrative receiver” as
defined in that Act;
	 
	 	(l)	 	to delegate its powers by way of power of attorney or in any other manner to
any person any right, power or discretion exercisable by it under this Deed on the
terms (including the power to sub-delegate) and subject to any regulations which such
Receiver may think fit and such Receiver shall not be liable or responsible in any way
to the Issuer or the Trustee for any loss or liability arising from any act, default,
omission or misconduct on the part of any such delegate or sub-delegate;
	 
	 	(m)	 	generally to carry out, or cause or authorise to be carried out, any
transaction, scheme or arrangement whatsoever, whether similar or not to any of the
foregoing, in relation to the Charged Property which he may consider expedient as
effectually as if he were solely and absolutely entitled to the Charged Property;

	(n)	(i)	 	to do all other acts and things which he may consider desirable or
necessary for realising any Charged Property or incidental or conducive to any of the
rights, powers or discretions conferred on a Receiver under or by virtue of this Deed;
and
	 
	 	(ii)	 	to exercise in relation to any Charged Property all the powers,
authorities and things which he would be capable of exercising if he were the
absolute beneficial owner of the same,

	 	 	 	and may use the name of the Issuer for any of the above purposes; and
	 
	 	(o)	 	to pay and discharge out of the profits, dividends and income of the relevant
Charged Property and the moneys to be made by it in carrying on the business of the
Issuer the expenses incurred in and about the carrying on and management of the
business or in the exercise of any of the powers conferred by this Clause 10.6 or
otherwise in respect of such Charged Property and all outgoings which it shall

21

 

	 	 	 	think fit to pay and to apply the residue of the said profits, income or moneys in
the manner provided by Clause 7.2.

	 	 	The Trustee may pay over to the Receiver any moneys constituting part of the Charged
Property to the extent that the same may be applied for the purposes referred to in Clause
7.2 (as applicable) by such Receiver and the Trustee may from time to time determine what
funds the Receiver shall be at liberty to keep in hand with a view to the performance of his
duties as such Receiver.
	 
	11	 	Protection of Third Parties
	 
	11.1	 	Enquiry
	 
	 	 	No person (including a purchaser) dealing with the Trustee or any Receiver or its or his
agents will be concerned to enquire:

	 	(a)	 	whether any power which the Trustee or a Receiver is purporting to exercise has
become exercisable or is being properly exercised;
	 
	 	(b)	 	whether the Issuer Obligations remain outstanding or have become payable;
	 
	 	(c)	 	whether any money remains due under the Transaction Documents; or
	 
	 	(d)	 	how any money paid to the Trustee or to that Receiver is to be applied, and

	 	 	the protections afforded to purchasers from a mortgagee by sections 104 to 107 of the 1925
Act and to persons dealing with an administrative receiver by section 42(3) of the
Insolvency Act 1986 will apply.
	 
	11.2	 	Receipts
	 
	 	 	The receipt of the Trustee or the Receiver shall be an absolute and a conclusive discharge
to a purchaser and shall relieve him of any obligation to see to the application of any
moneys paid to or by the direction of the Trustee or the Receiver.
	 
	12	 	Protection of Trustee and Receiver
	 
	12.1	 	Liability
	 
	 	 	The Receiver of the Issuer shall not be liable to the Issuer in the absence of wilful
default, fraud or gross negligence or breach of trust on its part or that of its officers,
employees or agents in respect of any loss or damage which arises out of the exercise or the
attempted or purported exercise of or failure to exercise any of their respective powers.
	 
	12.2	 	Possession
	 
	 	 	Without prejudice to the generality of Clause 12.3, entry into possession of the Charged
Property shall not render the Trustee or the Receiver of that company liable to account as
mortgagee in possession. If and whenever the Trustee or the Receiver enters into possession
of the Charged Property, it shall be entitled at any time to go out of such possession.
	 
	12.3	 	Mortgagee in possession
	 
	 	 	Neither the Trustee nor the Secured Creditors shall, by reason of any assignment or other
security made under or pursuant to this Deed, be or be deemed to be a mortgagee or in
possession nor shall they take any action (other than, in the case of the Secured Creditors,

22

 

	 	 	with the Trustee’s prior written consent) which would be likely to lead to the Secured
Creditors or the Trustee becoming a mortgagee in possession in respect of any property
referred to in this Deed. The Trustee, in its absolute discretion, may at any time, serve a
written notice on the Secured Creditors requiring the Secured Creditors from the date such
notice is served to obtain the Trustee’s prior written consent before taking any action
which would be likely to lead to the Secured Creditors or the Trustee becoming a mortgagee
in possession in respect of any property referred to in this Deed.
	 
	12.4	 	Additional protection

	 	12.4.1	 	The Trustee shall have no responsibility whatsoever to any Secured
Creditor as regards any deficiency or additional payment, as the case may be, which
might arise because the Trustee is subject to any Tax in respect of the Charged
Property or any part thereof or any income therefrom or any proceeds thereof.
	 
	 	12.4.2	 	The Trustee shall not be bound to give notice to any person of the
execution of the this Deed nor shall it be liable for any failure, omission or defect
in perfecting the Security intended to be constituted by this Deed including, without
prejudice to the generality of the foregoing:

	 	(a)	 	failure to obtain any licence, consent or other authority for
the execution of the same;
	 
	 	(b)	 	failure to register the same in accordance with the provisions
of any of the documents of title of the Issuer to any of the Charged Property;
and
	 
	 	(c)	 	failure to effect or procure registration of or otherwise
protect this Deed, the Issuer Pledge Agreement, Parent Pledge Agreement or any
other documents entered into in connection therewith or any Security created
thereby or otherwise by registering the same under any registration laws in any
territory, or by registering any notice, caution or other entry prescribed by
or pursuant to the provisions of the said laws.

	 	12.4.3	 	The Trustee shall not be responsible for the genuineness, validity,
adequateness or effectiveness of this Deed or any other documents entered into in
connection therewith or any other document or any obligations or rights created or
purported to be created thereby or pursuant thereto or any Security or the priority
thereof constituted or purported to be constituted by or pursuant to this Deed or any
of the other Transaction Documents, nor shall it be responsible or liable to any person
because of any invalidity of any provision of such documents or the unenforceability
thereof, whether arising from statute, law or decisions of any court and, without
prejudice to the generality of the foregoing, the Trustee shall not have any
responsibility for or have any duty to make any investigation in respect of or in any
way be liable whatsoever for:

	 	(a)	 	the nature, status, creditworthiness or solvency of the Issuer;
	 
	 	(b)	 	the execution, legality, validity, adequacy, admissibility in
evidence or enforceability of this Deed or any other documents comprised within
the Charged Property or any other document entered into in connection
therewith;
	 
	 	(c)	 	the registration, filing, protection or perfection of any
Security created pursuant to this Deed, the Issuer Pledge Agreement, Parent
Pledge

23

 

	 	 	 	Agreement or any other documents comprised within the Charged Property or
the priority of the Security thereby created whether in respect of any
initial advance or any subsequent advance or any other sums or liabilities;

	 	(d)	 	the scope or accuracy of any representations, warranties or
statements made by or on behalf of the Issuer or any other person or entity who
has at any time provided in this Deed or any documents comprised within the
Charged Property or in any document entered into in connection therewith;
	 
	 	(e)	 	the performance or observance by the Issuer or any other person
of any provisions of this Deed or any other documents comprised within the
Charged Property or in any document entered into in connection therewith or the
fulfilment or satisfaction of any conditions contained therein or relating
thereto or as to the existence or occurrence at any time of any default, event
of default or similar event contained therein or any waiver or consent which
has at any time been granted in relation to any of the foregoing;
	 
	 	(f)	 	the existence, accuracy or sufficiency of any legal or other
opinions, searches, reports, certificates, valuations or investigations
delivered or obtained or required to be delivered or obtained at any time in
connection with the Charged Property;
	 
	 	(g)	 	the title of the Issuer to any of the Charged Property;
	 
	 	(h)	 	the failure to call for delivery of documents of title to or
require any transfers, mortgages, charges or other further assurances in
relation to any of the assets the subject matter of this Deed or any other
documents entered into in connection therewith; or
	 
	 	(i)	 	any other matter or thing relating to or in any way connected
with this Deed or the Charged Property or any document entered into in
connection therewith whether or not similar to the foregoing.

	13	 	Expenses and Indemnity
	 
	13.1	 	Expenses
	 
	 	 	The Issuer covenants with and undertakes to the Trustee to reimburse or pay to the Trustee
or the Receiver (on the basis of a full indemnity) the amount of all properly incurred costs
(including properly incurred legal costs), charges and expenses (including insurance
premiums) properly incurred or sustained by the Trustee or the Receiver (including, for the
avoidance of doubt, any such costs, charges and expenses arising from any act or omission
of, or proceedings involving, any third person) in connection with:

	 	(a)	 	any investigation of title to or any survey, inspection or valuation of any of
the Charged Property or under or in connection with this Deed, and the preparation,
registration, recording or perfecting of this Deed (or any of the charges contained in
or granted pursuant to it), or any other document entered into between the Issuer and
the Trustee (amongst others);
	 
	 	(b)	 	the exercise or the attempted exercise, or the consideration of the exercise by
or on behalf of the Trustee or the Receiver of any of the powers of the Trustee or the
Receiver, and the enforcement, preservation or attempted preservation of this

24

 

	 	 	 	Deed (or any of the charges contained in or granted pursuant to it) or any of the
Charged Property or any other action taken by or on behalf of the Trustee or the
Receiver with a view to or in connection with the recovery by the Trustee or the
Receiver of the Issuer Obligations from the Issuer or any other person; or
	 
	 	(c)	 	the carrying out of any other act or matter which the Trustee or the Receiver
may reasonably consider to be for the preservation, improvement or benefit of the
Charged Property.

	13.2	 	Indemnity
	 
	 	 	The Issuer agrees to indemnify the Trustee and the Receiver, on an after-Tax basis, from and
against all losses, actions, claims, costs (including legal costs on a full indemnity
basis), expenses (including insurance premiums), demands and liabilities whether in
contract, tort, delict or otherwise now or hereafter sustained or incurred by the Trustee or
the Receiver or by any person for whose liability, act or omission the Trustee or the
Receiver may be answerable, in connection with anything done or omitted to be done under or
pursuant to this Deed or any other Transaction Document to which such entity is a party, or
in the exercise or purported exercise of the powers herein contained, or occasioned by any
breach by the Issuer of any of its covenants or other obligations to the Trustee, or in
consequence of any payment in respect of the Issuer Obligations (whether made by the Issuer
or a third person) being declared void or impeached for any reason whatsoever (other than as
provided in Clause 17 of the Bond Trust Deed).
	 
	13.3	 	Taxes
	 
	 	 	All sums of whatsoever nature (including, without limitation, remuneration and other fees)
which are payable by the Issuer under this Deed and which are now or at any time hereafter
become subject to VAT or similar Tax shall be deemed to be exclusive of VAT or similar Tax
and the Issuer in addition to such sums will indemnify the Trustee and/or the Receiver from
and against all claims and liabilities whatsoever in respect thereof.
	 
	 	 	If the Trustee or any Receiver shall make any payment for a taxable or deemed taxable supply
to it pursuant to or in connection with this Deed and any such payment shall bear VAT which
is irrecoverable VAT the Issuer shall indemnify the Trustee or such Receiver (as the case
may be) on demand for an amount equal to such irrecoverable VAT so far as it has not been
taken into account in computing the amount of any payment made by the Issuer to the Trustee
or such Receiver under any other indemnity contained in this Deed.
	 
	13.4	 	Stamp duties
	 
	 	 	The Issuer shall, to the extent permitted by applicable law, pay all stamp duties and other
duties or similar Taxes including any interest and penalties arising in connection with such
payment (if any) on or arising out of or in consequence of:

	 	(a)	 	the creation of the security constituted by or pursuant to this Deed, the
Issuer Pledge Agreement and the Parent Pledge Agreement ; and
	 
	 	(b)	 	the execution and delivery of this Deed and documents executed pursuant hereto
and the other Transaction Documents.

	14	 	Protection of Security
	 
	 	 	The Issuer covenants with and undertakes to the Trustee from time to time (and, for the
purposes mentioned in paragraph (a) below, notwithstanding that the Trustee may not

25

 

have served a demand for payment of the Issuer Obligations) upon demand to execute, at the
Issuer’s own cost, any document or do any act or thing (other than any amendment hereto)
which:

	 	(a)	 	the Trustee may specify with a view to registering or perfecting any charge or
other security created or intended to be created by or pursuant to this Deed (including
the perfecting of the conversion of any floating charge to a fixed charge pursuant to
Clause 15.1 or 15.2), the Issuer Pledge Agreement, Parent Pledge Agreement; or
	 
	 	(b)	 	the Trustee or the Receiver may specify with a view to facilitating the
exercise or the proposed exercise of any of their powers or the realisation of any of
the Charged Property; or
	 
	 	(c)	 	the Trustee or the Receiver may specify with a view to protecting the Security
Interests created by or pursuant to this Deed, the Issuer Pledge Agreement or the
Parent Pledge Agreement

provided that the Issuer shall not be obliged to execute any further documentation or take
any other action or steps to the extent that it would breach a restriction in any such
agreement (including any Transaction Documents) to which it is a party relating to
assignment, transferring, charging or sharing of possession or rights or such benefit which
would constitute a violation of any laws to which it is subject.

	15	 	Crystallisation
	 
	15.1	 	Notice
	 
	 	 	In addition and without prejudice to any other event resulting in a crystallisation of the
floating charge created by this Deed or any other right the Trustee may have, the Trustee
may, at any time:

	 	(a)	 	whilst a Potential Event of Default is subsisting; or
	 
	 	(b)	 	the Trustee believes that the Charged Property or any part thereof is in danger
of being seized or sold under any form of distress, diligence or execution levied or
threatened or is otherwise in jeopardy or imperilled; or
	 
	 	(c)	 	if any circumstance shall occur which in the opinion of the Trustee prejudices,
imperils or threatens or is likely to do any of the foregoing in respect of the
security created by this Deed, the Issuer Pledge Agreement or the Parent Pledge
Agreement,

	 	 	by notice in writing to the Issuer, declare that the floating charge hereby created shall be
converted into a first specific fixed charge as to all of the undertaking, property and
assets or such of them as may be specified in the notice, and by way of further assurance,
the Issuer, at its own expense, shall execute all documents in such form as the Trustee
shall require and shall deliver to the Trustee all conveyances, deeds, certificates and
documents which may be necessary for perfecting the aforesaid floating charge.
	 
	15.2	 	Automatic crystallisation
	 
	 	 	In addition to and without prejudice to any other event resulting in a crystallisation of
the floating charge, the floating charge contained herein shall automatically be converted
into a fixed charge over all property, assets or undertaking of the Issuer subject to the
floating charge, if and when an Event of Default occurs.

26

 

	16	 	Issuer Power of Attorney
	 
	16.1	 	Execution of Issuer Power of Attorney
	 
	 	 	Immediately upon execution of this Deed, the Issuer shall execute and deliver to the Trustee
a power of attorney in or substantially in the form set out in Schedule 1 (the “Issuer Power
of Attorney”). For the avoidance of doubt, the Trustee confirms that it may only exercise
the powers conferred under the Issuer Power of Attorney in the circumstances set out in
paragraph 1 of the Issuer Power of Attorney.
	 
	16.2	 	Charged Property on trust
	 
	 	 	To the extent permitted to do so under the Transaction Documents, for the purpose of giving
effect to this Deed, the Issuer hereby declares that, after the occurrence of an Event of
Default, it will hold all of the Charged Property (subject to the right of redemption) on
trust to convey, assign or otherwise deal with such Charged Property in such manner and to
such person as the Trustee shall direct, and declares that it shall be lawful for the
Trustee to appoint a new trustee or trustees of the Charged Property in place of the Issuer.
	 
	17	 	Other Security
	 
	17.1	 	No merger
	 
	 	 	The charges contained in or created pursuant to this Deed are in addition to, and shall
neither be merged in, nor in any way exclude or prejudice any other Security Interest, right
of recourse, set-off or other right whatsoever which the Trustee or any Secured Creditor may
now or at any time hereafter hold or have (or would apart from this Deed or any charge
contained or created pursuant to this Deed hold or have) as regards the Issuer or any other
person in respect of the Issuer Obligations, and neither the Trustee nor any Secured
Creditor shall be under any obligation to take any steps to call in or to enforce any
security for the Issuer Obligations, and shall not be liable to the Issuer for any loss
arising from any omission on the part of the Trustee or any Secured Creditor to take any
such steps or for the manner in which the Trustee or any Secured Creditor shall enforce or
refrain from enforcing any such security.
	 
	17.2	 	Consolidation
	 
	 	 	Section 93 of the 1925 Act shall not apply in relation to any of the charges contained in
this Deed.
	 
	17.3	 	Ruling off
	 
	 	 	If the Trustee receives notice of any Security Interest affecting the Charged Property in
contravention of the provisions of this Deed:

	 	(a)	 	the Trustee may open a new account in respect of the Issuer and, if it does
not, it shall nevertheless be deemed to have done so at the time it receives such
notice; and
	 
	 	(b)	 	all payments made by the Issuer to the Trustee after the Trustee receives such
notice shall be credited or deemed to have been credited to the new account, and in no
circumstances whatsoever shall operate to reduce the Issuer Obligations as at the time
the Trustee receives such notice.

27

 

	17.4	 	Change of name, etc.

	 	 	This Deed shall remain valid and enforceable notwithstanding any change in the name,
composition or constitution of the Trustee or the Issuer or any merger, amalgamation or
consolidation by the Trustee or the Issuer with any other corporation.
	 
	18	 	Avoidance of Payments
	 
	18.1	 	No release
	 
	 	 	No assurance, security or payment which may be avoided or adjusted under the law, including
under any enactment relating to bankruptcy or insolvency and no release, settlement or
discharge given or made by the Trustee or any Secured Creditor on the faith of any such
assurance, security or payment, shall prejudice or affect the right of the Trustee or any
Secured Creditor to recover the Issuer Obligations from the Issuer or to enforce the
security contained in, or granted pursuant to, this Deed to the full extent of the Issuer
Obligations.
	 
	18.2	 	Retention of security
	 
	 	 	If the Trustee shall have reasonable grounds for believing that the Issuer may be unable to
pay its debts as they fall due as at the date of any payment made by the Issuer to the
Trustee, the Trustee shall be at liberty to retain the Security until the expiry of a period
of one month plus such statutory period within which any assurance, security, guarantee or
payment can be avoided or invalidated after the payment and discharge in full of all Issuer
Obligations notwithstanding any release, settlement, discharge or arrangement which may be
given or made by the Trustee on, or as a consequence of, such payment or discharge of
liability provided that, if at any time within such period, a petition shall be presented to
a competent court for an order for the winding up or the making of an administration order
in respect of the Issuer or the Issuer shall commence to be wound up or to go into
administration or any analogous proceedings shall be commenced by or against the Issuer, the
Trustee shall be at liberty to continue to retain such security for such further period as
the Trustee may determine and such security shall be deemed to continue to have been held as
security for the payment and discharge to the Trustee of all Issuer Obligations.
	 
	19	 	Set-off
	 
	 	 	The Trustee may at any time following an Event of Default (without notice and
notwithstanding any settlement of account or other matter whatsoever) combine or consolidate
all or any existing accounts of the Issuer whether in its own name or jointly with others
and held by it or any Secured Creditor and may set off or transfer all or any part of any
credit balance or any sum standing to the credit of any such account (whether or not the
same is due to the Issuer from the Trustee or relevant Secured Creditor and whether or not
the credit balance and the account in debit or the Issuer Obligations are expressed in the
same currency in which case the Trustee is hereby authorised to effect any necessary
conversions at its prevailing rates of exchange) in or towards satisfaction of any of the
Issuer Obligations and may in its absolute discretion estimate the amount of any liability
of the Issuer which is contingent or unascertained and thereafter set off such estimated
amount and no amount shall be payable by the Trustee to the Issuer unless and until all
Issuer Obligations have been ascertained and fully repaid or discharged.

28

 

	20	 	Execution of Documents
	 
	 	 	Any document required to be executed as a deed by the Trustee under or in connection
with this Deed shall be validly executed if executed as a deed by a duly authorised attorney
of the Trustee.
	 
	21	 	Exercise of Certain Rights
	 
	21.1	 	Except as provided below, each of the Secured Creditors agrees with the Issuer and
the Trustee that:

	 	(a)	 	only the Trustee may enforce the Security in accordance with the terms and
conditions of this Deed, the Issuer Pledge Agreement or the Parent Pledge Agreement (as
the case may be); and
	 
	 	(b)	 	it will not take any steps for the purpose of recovering any of the Issuer
Obligations (including by exercising any rights of set-off) or enforcing any rights
arising out of the Transaction Documents against the Issuer or procuring the winding
up, administration or liquidation of the Issuer.

	21.2	 	If the Trustee has failed to serve a Bond Enforcement Notice and/or take any steps
or proceedings to enforce the Security pursuant to this Deed, the Issuer Pledge Agreement or
the Parent Pledge Agreement (as the case may be), in each case, within a reasonable time of
becoming bound under the terms of this Deed so to do and that failure is continuing, then each
of the Secured Creditors will be entitled to take any steps and proceedings as it considers
necessary other than any steps or proceedings which would result in the breach by it of this
Clause 21.2, Clause 6 and/or Clause 7 and/or any term of the other Transaction Documents.
	 
	21.3	 	Subject to the provisions of this Deed, the Trustee may at any time, at its
discretion and without notice, take such proceedings and/or other action as it may think fit
against, or in relation to, the Issuer or any other party to any of the Transaction Documents
to enforce its obligations under any of the Transaction Documents. Subject to the provisions
of this Deed, the Issuer Pledge Agreement or the Parent Pledge Agreement (as the case may be),
at any time after the Security has become enforceable, the Trustee may, at its discretion and
without notice, take such steps as it may think fit to enforce such Security.
	 
	21.4	 	The Trustee shall not be bound to take any steps or institute any proceedings or
to take any other action under or in connection with any of the Transaction Documents
(including, without limitation, enforcing the Security) unless the Trustee:

	 	(a)	 	so long as any Bonds are outstanding, shall have been (i) directed to do so in
writing pursuant to an Extraordinary Resolution of the holders of the Bonds
outstanding, or (ii) requested to do so in writing by the holders of at least 75 per
cent. in aggregate of the Principal Amount Outstanding of the Bonds outstanding; and
	 
	 	(b)	 	in either case, shall have been indemnified and/or secured to its satisfaction
against all Liabilities to which it may thereby render itself liable or which it may
incur by so doing.

	21.5	 	Following an Event of Default, the Trustee shall have the right to exercise the
Put Right.

29

 

	22	 	Covenants, Representations and Warranties
	 
	22.1	 	Positive Covenants: So long as any of the Issuer Obligations remain outstanding,
the Issuer shall:

	 	(a)	 	duly perform its obligations, and diligently pursue its rights, under each
Transaction Document to which it is a party;
	 
	 	(b)	 	supply the Trustee and any Receiver with copies of each Transaction Document
and any information and documentation relating to any such Transaction Document
requested by the Trustee or any Receiver;
	 
	 	(c)	 	immediately deposit with the Trustee (or as the Trustee may otherwise direct),
all certificates and other documents of title or evidence of ownership in relation to
the UK Shares and to any of its Eligible Investments; and
	 
	 	(d)	 	promptly execute and deliver to the Trustee all share transfers and other
documents which may be requested by the Trustee in order to enable the Trustee or its
nominees to be the registered owner or otherwise obtain a legal title to any of the UK
Shares or, to the extent applicable, any Eligible Investment.

	22.2	 	Negative Covenants: So long as any of the Issuer Obligations remain outstanding,
the Issuer shall not, save to the extent permitted by or provided for in the Transaction
Documents or with the prior written consent of the Trustee:

	 	(a)	 	create or permit to subsist any Security Interest of any kind (unless arising
by operation of law) over the Charged Property;

	 	(b)	 	(i) engage in any activity which is not incidental to or necessary in
connection with any of the activities in which the Transaction Documents provide or
envisage that the Issuer will engage;

	 	(ii)	 	have any subsidiaries (other than the HoldCos and their
respective subsidiaries) or any employees;
	 
	 	(iii)	 	own or lease any premises; or
	 
	 	(iv)	 	act as director of any company;

	 	(c)	 	except as otherwise permitted or required by Clause 14.1 of the Bond Trust
Deed, transfer, sell, lend, part with, convey, assign or otherwise dispose of, or deal
with, or grant any option or present or future right to acquire the Charged Property or
any part thereof or any interest, estate, right, title or benefit therein;
	 
	 	(d)	 	pay any dividend or make any other distribution to its shareholders or issue
any further shares except in accordance with Condition 4 (Covenants of and Restrictions
on the Issuer);
	 
	 	(e)	 	incur any financial indebtedness (other than indebtedness permitted to be
incurred pursuant to, or as contemplated, in any of the Transaction Documents) or give
any guarantee in respect of financial indebtedness or of any other obligation of any
person;
	 
	 	(f)	 	consolidate or merge with any other person or, except as otherwise permitted or
required by Clause 14.1 of the Bond Trust Deed, convey or transfer its properties or
assets substantially or as an entirety to any other person;

30

 

	 	(g)	 	to the extent it has a Material Adverse Effect (as defined in the Conditions),
permit the validity or effectiveness of any of the Transaction Documents, or the
priority of the security interests created thereby, to be amended, terminated,
postponed or discharged, or consent to any variation of, or exercise any powers of
consent or waiver pursuant to the terms of, or amend any term or condition of the Bonds
(save in accordance with the Conditions and the Bond Trust Deed) or any of the
Transaction Documents or permit any party to any of the Transaction Documents or the
Security (as defined in the Conditions) or any other person whose obligations form part
of the Security to be released from such obligations or dispose of all or any part of
the Security;
	 
	 	(h)	 	to the extent it has a Material Adverse Effect, take or allow the taking of any
action on its behalf which may result in the rights attaching to the UK Shares or any
Eligible Investment being altered, provided that, notwithstanding Clauses 3.2 and 3.5,
the Issuer shall be entitled to exercise its rights under the Put Option Agreement in
accordance with the Conditions;
	 
	 	(i)	 	have an interest in any bank account whatsoever other than the Issuer Accounts
and an account into which subscription monies in respect of the shares in the Issuer
are paid, unless such account or interest therein is charged to the Trustee on terms
acceptable to it; or
	 
	 	(j)	 	purchase or otherwise acquire any Bond or Bonds.

	 	 	In giving any consent to the foregoing, the Trustee may require the Issuer to make such
modifications or additions to the provisions of any of the Transaction Documents or may
impose such other conditions or requirements as the Trustee may deem expedient in the
interests of the Secured Creditors, provided that such modifications or additions are
notified by the Issuer to the Rating Agencies and such Rating Agencies do not cause any
downgrade in the then current rating (assigned by such Rating Agencies) of the Bonds.
	 
	22.3	 	Representations and Warranties: The Issuer represents and warrants to the Trustee
that, as at the Closing Date:

	 	(a)	 	the Charged Property is not subject to any restriction (whether contractual or
otherwise) that may render the Security Interests granted by the Issuer under or
pursuant to this Deed, the Issuer Pledge Agreement or the Parent Pledge Agreement (as
the case may be) ineffective or which otherwise prohibits the grant of such Security
Interests;
	 
	 	(b)	 	all payments to the Issuer by any other party to a Transaction Document to
which the Issuer is a party are not subject to any right of set-off or similar right;
	 
	 	(c)	 	each Transaction Document to which the Issuer is a party is a legally binding,
valid and enforceable obligation of the Issuer (subject to bankruptcy, civil
rehabilitation, corporate reorganisation and similar laws of general applicability
relating to or affecting creditors’ rights and to general principles of equity);
	 
	 	(d)	 	the Issuer is not in default of any of its obligations under any Transaction
Document to which it is a party;
	 
	 	(e)	 	the entry into and performance of this Deed by the Issuer will not conflict
with any term of any Transaction Document; and
	 
	 	(f)	 	the UK Shares are fully paid.

31

 

	22.4	 	Warranties: The Issuer warrants to the Trustee that (i) it has taken all necessary
steps to enable it to charge or assign as security the Charged
Property in accordance with Clause 3 , Issuer Pledge Agreement or Parent Pledge Agreement (as the
case may be), and that it has taken no action nor steps to prejudice its
right, title and interest in and to the Charged Property and (ii) the
Issuer shall conduct its business and affairs such that, at all times,
its centre of main interests for the purpose of EU Insolvency Regulation
EC No. 1346/2000 of 29 May, 2000 and the Cross Border Insolvency
Regulations 2006 shall be and remains outside the European Economic Area,
and that it shall not have any establishment other than in the United
States of America.
	 
	23	 	Additional Provisions Regarding the Trustee
	 
	23.1	 	Incorporation of Bond Trust Deed provisions

	 	(a)	 	Without prejudice to the other provisions of this Deed and except as set out
below, the following clauses of the Bond Trust Deed are incorporated in and will apply,
mutatis mutandis, to this Deed (and for that purpose references in the Bond Trust Deed
to “these presents” or to “this Deed” will be construed as references to this Deed of
Charge):

	 	(i)	 	Clause 12 (Investment by Trustee);
	 
	 	(ii)	 	Clause 15 (Remuneration and indemnification of the Trustee);
	 
	 	(iii)	 	Clause 16 (Supplement to Trustee Acts);
	 
	 	(iv)	 	Clause 17 (Trustee’s liability);
	 
	 	(v)	 	Clause 18 (Trustee contracting with Issuer and others);
	 
	 	(vi)	 	Clause 22 (New Trustee);
	 
	 	(vii)	 	Clause 23 (Trustee’s retirement and removal); and
	 
	 	(viii)	 	Clause 24 (Trustee’s powers to be additional).

	 	 	 	Clause 15 (Remuneration and indemnification of the Trustee) of the Bond Trust Deed
will be amended so that each of the references to the Trustee in Clauses 15.5 and
15.6 shall include a reference to any Receiver appointed by the Trustee.
	 
	 	(b)	 	For the purposes of Clause 16(n)(ii) (Supplement to Trustee Acts) of the Bond
Trust Deed, at any time after the redemption in full of the Bonds, the Trustee will
have regard to the interests of the Secured Creditor which ranks next highest in the
order of the priority of payments set out in Clause 7.2 of this Deed.
	 
	 	(c)	 	If the Trustee retires or is removed in accordance with Clause 23 (Trustee’s
Retirement and Removal) of the Bond Trust Deed, then the Trustee will retire from its
capacity as Trustee pursuant to this Deed at the same time in accordance with the terms
and conditions of this Deed. If the Trustee retires or is removed in accordance with
the terms and conditions of this Deed, then the Trustee will retire at the same time in
accordance with Clause 23 of the Bond Trust Deed.

	24	 	Further Provisions
	 
	24.1	 	Evidence of indebtedness

32

 

	 	 	In any action, proceedings or claim relating to this Deed or the charges contained in this
Deed, a statement as to any amount due to any Secured Creditor or of the Issuer Obligations
or any part thereof or a statement of any amounts which have been notified to the Trustee as
being amounts due to any Secured Creditor which is certified as being correct by an officer
of the Trustee or an officer of the relevant Secured Creditor shall, save in the case of
manifest error, be conclusive evidence that such amount is in fact due and payable.
	 
	24.2	 	Rights cumulative, waivers
	 
	 	 	The respective rights of the Trustee, the Secured Creditors and any Receiver are cumulative,
and may be exercised as often as they consider appropriate and are in addition to their
respective rights under the general law. The respective rights of the Trustee, the Secured
Creditors and any Receiver in relation to this Deed (whether arising under this Deed or
under the general law) shall not be capable of being waived or varied otherwise than by
express waiver or variation in writing; and, in particular, any failure to exercise or any
delay in exercising any such rights shall not operate as a variation or waiver of that or
any other such right; any defective or partial exercise of such rights shall not preclude
any other or further exercise of that or any other such right; and no act or course of
conduct or negotiation on their part or on their behalf shall in any way preclude them from
exercising any such right or constitute a suspension or any variation of any such right.
	 
	24.3	 	Notices
	 
	 	 	Any notice, communication or demand to the one or more parties hereto to be given, made or
served for any purposes under these presents shall be given, made or served by sending the
same by pre-paid post (first class if inland, first class airmail if overseas) or facsimile
transmission or by delivering it by hand as follows:
	 
	 	 	to the Issuer:
	 
	 	 	4171 Essen Lane

Baton Rouge, Louisiana 70809

(Attention: Vice President and Secretary)

Facsimile: +1-225-925-9146

	 
	 	 	to the Trustee:
	 
	 	 	The Bank of New York

Corporate Trust Services

One Canada Square

London

E14 5AL
	 
	 	 	(Attention: Peter Malcom/Peter Howard)

Facsimile: 020 7964 6399
	 
	 	 	to the Account Bank:
	 
	 	 	The Bank of New York

Corporate Trust Services

One Canada Square

33

 

	 	 	London

E14 5AL
	 
	 	 	(Attention: Peter Malcom/Peter Howard)

Facsimile: 020 7964 6399
	 
	 	 	to the Cash Manager:
	 
	 	 	The Bank of New York

Corporate Trust Services

One Canada Square

London

E14 5AL
	 
	 	 	(Attention: Peter Malcom/Peter Howard)

Facsimile: 020 7964 6399
	 
	 	 	to the Principal Paying Agent:
	 
	 	 	The Bank of New York

Corporate Trust Services

One Canada Square

London

E14 5AL
	 
	 	 	(Attention: Peter Malcom/Peter Howard)

Facsimile: 020 7964 6399
	 
	 	 	or to such other address or facsimile number as shall have been notified (in accordance with
this Clause 24) to the other parties hereto and any notice or demand sent by post as
aforesaid shall be deemed to have been given, made or served two days in the case of inland
post or seven days in the case of overseas post after despatch and any notice or demand sent
by facsimile transmission as aforesaid shall be deemed to have been given, made or served at
the time of despatch provided that in the case of a notice or demand given by facsimile
transmission a confirmation of transmission is received by the sending party and such notice
or demand shall forthwith be confirmed by post. The failure of the addressee to receive such
confirmation shall not invalidate the relevant notice or demand given by facsimile
transmission.
	 
	24.4	 	Severability
	 
	 	 	If a provision of this Deed is or becomes illegal, invalid or unenforceable in any
jurisdiction that shall not affect:

	 	(a)	 	the validity or enforceability in that jurisdiction of this Deed; or
	 
	 	(b)	 	the validity or enforceability in other jurisdictions of that or any other
provision of this Deed.

	24.5	 	Counterparts
	 
	 	 	This Deed may be executed in any number of counterparts and this has the same effect as if
the parties to this Deed had executed a single copy of this Deed.

34

 

	24.6	 	Parties
	 
	 	 	When any party hereto acts in more than one capacity, the provisions of this Deed shall
apply to such party as though it were a separate party in each such capacity, except to the
extent that such party is required in one capacity to give any notice or information to
itself in another capacity.
	 
	24.7	 	Third Party Rights
	 
	 	 	A person who is not a party hereto has no rights under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Deed, but this does not affect any right or
remedy of a third party which exists or is available apart from the Contracts (Rights of
Third Parties) Act 1999.
	 
	24.8	 	Bond Trust Deed
	 
	 	 	This Deed is supplemental to and shall be read and construed together as one document with
the Bond Trust Deed.
	 
	25	 	Governing Law and Jurisdiction
	 
	25.1	 	Governing Law
	 
	 	 	This Deed is governed by, and shall be construed in accordance with, English law.
	 
	25.2	 	Submission to Jurisdiction
	 
	 	 	Each party to this Deed (other than the Trustee) hereby irrevocably submits to the
non-exclusive jurisdiction of the English courts in any action or proceeding arising out of
or relating to this Deed, and hereby irrevocably agrees that all claims in respect of such
action or proceeding may be heard and determined by such courts. Each party to this Deed
hereby irrevocably waives, to the fullest extent it may possibly do so, any defence or claim
that the English courts are an inconvenient forum for the maintenance or hearing of such
action or proceeding.
	 
	25.3	 	Service of Process
	 
	 	 	The Issuer irrevocably appoints Law Debenture Corporate Services Limited (at Fifth Floor,
100 Wood Street, London EC2V 7EX) as its authorised agent for service of process in England.
If for any reason such agent shall cease to be such agent for the service of process, the
Issuer shall forthwith appoint a new agent for service of process in England and shall
immediately notify each of the other parties to this Deed of such appointment. Nothing shall
affect the right to serve process in any other manner permitted by law.
	 
	26	 	Limited Recourse and Non Petition
	 
	26.1	 	The obligations of the Issuer under the Bonds and the Transaction Documents will
not be obligations or responsibilities of, or guaranteed by, Shaw Group or any other person or
entity, and the Secured Creditors shall have no recourse to Shaw Group beyond the pledge by
The Shaw Group Inc. of its membership interests in the Issuer pursuant to the Parent Pledge
Agreement.
	 
	26.2	 	Having realised the Security and distributed the net proceeds in accordance with
the terms of the Deed of Charge, neither the Trustee nor any other Secured Creditor may take
any

35

 

	 	 	further steps against the Issuer to recover any sum still unpaid and the Issuer’s liability
for any sum still unpaid shall be extinguished.

	26.3	 	In particular, none of the Trustee or any other Secured Creditor may take any
corporate action or other steps or legal proceedings for the dissolution, liquidation or
reorganisation of, or for the appointment of a receiver, administrator, trustee, liquidator or
similar official for, the Issuer under any bankruptcy, insolvency, receivership or similar
law.

36

 

SCHEDULE 1

Issuer Power of Attorney

THIS POWER OF ATTORNEY is made as a deed on 13 October 2006 by Nuclear Energy Holdings,
L.L.C., a company with limited liability organised under the laws of the State of Delaware, United
States of America, whose registered office is at c/o Corporation Trust Center, 1209 Orange Street,
Wilmington, Delaware 19801-1120 (the “Company”).

BACKGROUND:

Pursuant to the Deed of Charge, provision was made for the execution by the Company of this Power
of Attorney.

THEREFORE:

	1	 	Appointment
	 
	 	 	The Company, as security for the continuing performance of the undertakings and
covenants on the part of the Company contained in the Transaction Documents to which it is
or may become party, hereby irrevocably appoints The Bank of New York and its successors as
Trustee to be its true and lawful attorney (the “Attorney”, which expression includes any
additional or substitute attorney appointed pursuant to paragraph (c) below) with the full
power and authority of the Company in its name, and on its behalf, to do the following acts
and things:

	 	(a)	 	every act or thing which the Attorney may deem to be necessary, proper or
expedient for fully and effectually vesting, transferring or assigning the Security
and/or the Charged Property or any part thereof and/or the Company’s estate, right,
title, benefit and/or interest therein or thereto in or to the Attorney and its
successors in title or other person or persons entitled to the benefit thereof in the
same manner and as fully and effectually in all respects as the Company could have
done;
	 
	 	(b)	 	every act or thing which the Attorney considers in each case bona fide
necessary for the protection or preservation of the Attorney’s interests and rights in
and to the Charged Property or which ought to be done under the covenants, undertakings
and provisions contained in the Transaction Documents or any documents executed
pursuant thereto on or at any time after the occurrence of an Event of Default or in
any other circumstances where the Attorney has become entitled to take the steps
referred to in clauses 9.4 to 9.6 (inclusive) of the Deed of Charge; and
	 
	 	(c)	 	to appoint, from time to time, such of its officers, employees and authorised
agents to be an additional or substitute Attorney or Attorneys (with power to act alone
or together with any other such appointee) for all or any of the purposes stated above.

	2	 	Undertaking
	 
	 	 	The Company undertakes to ratify whatever the Attorney may do in the name, or on behalf
of, the Company in exercising the powers contained in this document and to indemnify the
Attorney against any loss incurred by it in connection with anything lawfully done by it in
the exercise or the purported exercise of the powers contained in this document, save for

37

 

	 	 	any loss which would not have arisen but for the gross negligence, wilful default or fraud
of the Attorney.

	3	 	Duration
	 
	 	 	This Power of Attorney, having been given as security for the continuing performance by
the Company of the undertakings and covenants on the part of the Company contained in the
Transaction Documents and to protect the interests of the Attorney in respect thereof, shall
not be revoked without the express written consent of the Attorney, notwithstanding the
bankruptcy, insolvency, receivership, liquidation or administration or similar proceeding in
respect of the Company.
	 
	4	 	Miscellaneous

	 	(a)	 	Terms used, but not defined, in this Power of Attorney have the meaning given to
them in the Deed of Charge.
	 
	 	(b)	 	This Power of Attorney is governed by, and shall be construed in accordance
with, English law.

This Power of Attorney has been executed and been delivered as a deed on the date stated at the
beginning of this Power of Attorney.

	EXECUTED as a DEED by	 	}	 
	NUCLEAR ENERGY HOLDINGS, L.L.C.

acting by	 	}

}	 

Officer

Officer

38

 

This Deed has been executed and delivered as a deed on the date stated at the beginning of this
Deed.

Issuer

	
EXECUTED as a DEED by

NUCLEAR ENERGY HOLDINGS, L.L.C.

acting by	 	}

}

}	 

Officer

Officer

Trustee

	EXECUTED as a DEED by

THE BANK OF NEW YORK             
   

acting by
	 	}

}

}	 

Authorised Signatory

Account Bank

 
	EXECUTED as a DEED by

THE BANK OF NEW YORK             
   

acting by
	 	}

}

}	 

Authorised Signatory

Cash Manager

	EXECUTED as a DEED by

THE BANK OF NEW YORK             
   

acting by
	 	}

}

}	 

Authorised Signatory

39

 

Principal Paying Agent and

Calculation Agent

	EXECUTED as a DEED by

THE BANK OF NEW YORK

acting by
	 	}

}

}	 

Authorised Signatory

Swap Counterparty

	EXECUTED as a DEED by

MORGAN STANLEY CAPITAL
SERVICES INC.

acting by
	 	}

}

}	 

Authorised Signatory

40exv10w10

 

EXHIBIT
10.10

Transferable

Irrevocable Direct Pay

Letter of Credit

Irrevocable Letter of Credit No. 3084749

Date: 11 October 2006

Nuclear Energy Holdings, L.L.C.

Corporation Trust Center

1209 Orange Street

Wilmington,

Delaware

19801

Attn: Gary Graphia

Ladies and Gentlemen:

We (the “Principal Letter of Credit Bank”) hereby issue in favor of Nuclear Energy Holdings, L.L.C.
(the “Beneficiary”) this irrevocable direct pay letter of credit (this “Letter of Credit),
effective October 13, 2006. This Letter of Credit has a maximum amount available for drawing on any
date up to and including the Stated Expiration Date (as defined below) equal to JPY4,299,333,000
(the “Maximum Amount”). This Letter of Credit is issued for the account and by order of The Shaw
Group Inc. (the “Account Party”).

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

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

Bank of America, N.A.

1000 West Temple Street, 7th Floor

Mail Code: CA9-705-07-05

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

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

(ii) be sent to the Principal Letter of Credit Bank by facsimile transmission to facsimile
telephone number (213) 240-6989, with oral confirmation of receipt by the Principal Letter of
Credit Bank of such facsimile transmission by telephone call to (213) 240-6986; provided, however,
that the absence of such confirmation shall not affect our obligation to honor any drawing.

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

00-35-0201NSB
10-2005

 

 

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

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

Presentations made by you which comply with the terms and conditions of this Letter of Credit will
be honored on the second business day following the date of your presentation, in the amount of the
draw in immediately available funds in accordance with the payment instructions set forth in the
accompanying Certificate, if made by 9:00 a.m. Los Angeles, California time, on any business day
(or, if made after 9:00 a.m. Los Angeles, California time, On the third succeeding business day).

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

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

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

EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE,
PUBLICATION NO. 500 (THE “UNIFORM CUSTOMS”) AND SHALL, AS TO MATTERS NOT GOVERNED BY THE UNIFORM
CUSTOMS, BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ARTICLE 17 OF THE UNIFORM CUSTOMS, IF THIS
LETTER OF CREDIT EXPIRES DURING AN INTERRUPTION OF BUSINESS AS DESCRIBED IN SAID ARTICLE 17, THE
PRINCIPAL LETTER OF CREDIT BANK WILL HONOR DRAWS UNDER THIS LETTER OF CREDIT THAT ARE MADE WITHIN
TEN (10) DAYS AFTER THE RESUMPTION OF BUSINESS BY THE PRINCIPAL LETTER OF CREDIT BANK.

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

00-35-0201NSB
10-2005

 

 

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

Very truly yours,

BANK OF AMERICA, N.A.

	 	 	 	 	 
	By:

	 	/s/ Sandra Leon	 	 
	Name:

	 	 

Sandra Leon
	 	 
	Title:

	 	Vice President	 	 

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

 00-35-0201NSB
10-2005

 

 

ANNEX A

to

TRANSFERABLE IRREVOCABLE

DIRECT PAY LETTER OF CREDIT

ISSUED BY BANK OF AMERICA, N.A.

*[                    ,
2                    ]

BANK OF AMERICA, N.A.

1000 West Temple Street, 7th Floor

Mall Code: CA9-705-07-05

Los Angeles, CA 90012-1514

Attention:
Standby Letter of Credit Dept.

Ladies and Gentlemen:

We refer to Transferable Irrevocable Direct Pay Letter of Credit No. 3084749 (the “Letter of
Credit”), Definitions of terms in the Letter of Credit shall apply to all terms used but not
otherwise defined herein.

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

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

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

			
	1	 	Insert details of Beneficiary’s Account
	 
	2	 	Insert appropriate payment date.

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

00-35-0201NSB
10-2005

 

 

ANNEX B

to

TRANSFERABLE IRREVOCABLE

DIRECT PAY LETTER OF CREDIT

ISSUED BY BANK OF AMERICA, N.A.

TRANSFER FORM

                                        ,
200

Bank of America, N.A.

Mail Code: CA9-705-07-05

1000 W Temple St.

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

Re: Irrevocable Direct Pay Letter of Credit No. 3084749 (the “Letter of Credit”)

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

 

Name of Transferee

 

Address

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

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

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

00-35-0201NSB
10-2005

 

 

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

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

	 	 	 	 	 
	 	 	 

NAME OF TRANSFEROR

	 	 
	 
	 	 	 	 
	 	 	 

NAME OF AUTHORIZED
SIGNER AND TITLE

	 	 
	 
	 	 	 	 
	 
NAME OF BANK

	 	 
AUTHORIZED SIGNATURE	 	 
	 
	 	 	 	 
	 

AUTHORIZED SIGNATURE AND TITLE

	 	 	 	 
	 
	 	 	 	 
	 

PHONE NUMBER

	 	 	 	 

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

 00-35-0201NSB
10-2005

 

 

October 13, 2006

The Bank of New York

Corporate Trust Services

One Canada Square

London

E145AL

Attn: Peter Malcom/Peter Howard

	 	 	 	 	 
	 

	 	Subject:
	 	Letter of Credit No. 3084749
	 

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

	 	Applicant:
	 	The Shaw Group Inc.
	 

	 	Amount:
	 	JPY4,299,333,000

Gentlemen:

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

Enclosed is the original Letter of Credit duly endorsed.

Sincerely yours,

Bank of America, N.A.

	 	 	 	 	 
	By:

	 	/s/ Sandra Leon	 	 
	Name:

	 	 

Sandra Leon
	 	 
	Title:

	 	Vice President	 	 

Bank of
America, N.A. Trade Operations

CA9-705-07-05

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

00-35-0201NSB
10-2005

 

 

October 13, 2006

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

The Bank of New York

Corporate Trust Services

One Canada Square

London

E145AL

Attn. Peter Malcom/Peter Howard

AMOUNT:
JPY4,299,333,000

	 	 	 	 	 
	By :

	 	/s/ Sandra Leon	 	 
	Name:

	 	 

Sandra Leon
	 	 
	Title:

	 	Vice President	 	 

 

 

TRANSFER FORM

13 October 2006

Bank of America, N.A.

Mail Code: CA9-705-07-05

1000 W Temple St.

Los Angeles, CA 90012-1514

Attention: Standby Letter of Credit Dept.

Re:
Irrevocable Direct Pay Letter of Credit No. 3034749 (the
“Letter of Credit”)

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

 

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

 

Address: One Canada Square, London, E14 5AL

Attn:
Peter Malcolm/Peter Howard

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

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

 

 

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

Nuclear Energy Holdings L.L.C.

Corporation Trust Centre

1209 Orange Street

Wilmington

Delaware, 19801

	 	 	 	 	 	 	 
	 	 	 

NAME OF TRANSFEROR

	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Gary P. Graphia
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Vice President, Secretary
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

NAME OF AUTHORIZED SIGNER AND
TITLE

	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	  

NAME
OF BANK

	 	/s/ Gary P. Graphia
 

AUTHORIZED SIGNATURE
	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ HARRIS N.A.
 

AUTHORIZED SIGNATURE AND TITLE

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/
Shahrokh Shah	 	 	 	 	 	 
	MANAGING DIRECTOR	 	 	 	 	 	 
	PHONE NUMBER
	 	 	 	 	 	 
	 
	312-293-8353

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