Document:

PAYING AGENCY AGREEMENT

Dated 7

February 2002

 

ECOLAB INC.

 

and

 

JPMORGAN CHASE BANK, LONDON BRANCH

 

and

 

J.P. MORGAN BANK LUXEMBOURG S.A.

and

OTHERS

 

PAYING AGENCY AGREEMENT

 

relating to

 

€300,000,000

5.375% Notes due 2007

 

LINKLATERS

&

ALLIANCE

 

LINKLATERS

 

Ref:

NJP/TSYJ/HVSA

 

 

This Agreement is

made on 7 February 2002 between:

 

(1)           ECOLAB

INC. (the “Issuer”);

 

(2)           JPMORGAN

CHASE BANK, LONDON BRANCH as principal

paying agent (the “Principal Paying Agent”);

 

(3)           J.P.

MORGAN BANK LUXEMBOURG S.A. as paying agent

(the “Paying

Agent”); and

 

(4)                                JPMORGAN CHASE BANK, LONDON BRANCH (the

“Trustee”,

which expression includes any other trustee for the time being of the Trust

Deed referred to below).

 

                Whereas:

 

(A)                              The Issuer proposes to issue €300,000,000 principal amount of Notes

to be known as its 5.375% Notes due 2007 (the “Notes”).

 

(B)                                The definitive Notes for which the Permanent Global Note referred to

below may be exchanged (subject to its provisions) will be in bearer form in

the denominations of €1,000,10,000 and 100,000 each with Coupons attached.

 

(C)                                The Notes will be constituted by a Trust Deed (the “Trust Deed”)

dated 7 February 2002 between the Issuer and the Trustee.

 

(D)                               This is the Paying Agency Agreement defined in the Trust Deed.

 

1              Interpretation

 

1.1                               Definitions: Terms defined in the Trust

Deed have the same meanings in this Agreement except where otherwise defined in

this Agreement. In addition:

 

“Agents”

means the Principal Paying Agent and the Paying Agent or any of them.

 

“Business Day”

means any day (not being a Saturday or a Sunday) on which the Trans European

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

operating.

 

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

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

Agreement.

 

2              Appointment

 

The Issuer

appoints the Agents as its agents in respect of the Notes in accordance with

the Conditions at their respective specified offices referred to in the Notes.

Except in Clause 14, references to the Agents are to them acting solely through

such specified offices. Each Agent shall perform the duties required of it by

the Conditions. The obligations of the Agents are several and not joint.

 

3              Authentication and

Exchange of the Notes

 

3.1                               The Temporary Global Note and the Permanent Global Note: Immediately before issue, the Issuer shall deliver the duly

executed Temporary Global Note and Permanent Global Note to the Principal

Paying Agent. The Principal Paying Agent (or its agent on its behalf) shall

authenticate the Temporary Global Note and the Permanent Global Note and return

the Temporary Global Note and the Permanent Global Note to or to the order of

the Issuer for delivery to a depositary

 

1

 

common to Euroclear Bank S.A./N.V.

as operator of the Euroclear System and Clearstream

Banking, société anonyme.

 

3.2                               Exchange of Temporary Global Note for Permanent Global Note: On and after the Exchange Date (as defined in the Temporary Global

Note), the Principal Paying Agent shall, on presentation to it or to its order

of the Temporary Global Note and the Permanent Global Note, procure the

exchange of interests in the Temporary Global Note for interests of an equal

principal amount in the Permanent Global Note in accordance with the Temporary

Global Note. On exchange in full of the Temporary Global Note the Principal

Paying Agent shall cancel it.

 

3.2          Exchange

of Permanent Global Note:

 

3.2.1                     Notification of request for definitive Notes: The Principal Paying Agent, on receiving notice in accordance with

the terms of the Permanent Global Note that its holder requires to exchange the

Permanent Global Note, or an interest in it, for definitive Notes, shall

forthwith notify the Issuer of such request.

 

3.2.2                     Authentication and exchange: At least 14

days before the Exchange Date (as defined in the Permanent Global Note), the

Issuer will deliver or procure the delivery of definitive Notes in an aggregate

principal amount equal to the outstanding principal amount of the Permanent

Global Note to or to the order of the Principal Paying Agent. Such definitive

Notes shall have attached all Coupons in respect of interest which has not

already been paid against presentation of the Permanent Global Note. The

Principal Paying Agent (or its agent on its behalf) shall authenticate such

definitive Notes and shall make them and the Coupons available for exchange

against the Permanent Global Note in accordance with the Permanent Global Note.

On exchange in full of the Permanent Global Note the Principal Paying Agent

shall cancel it.

 

4              The Trustee

 

4.1                               Agents to act for Trustee: The Agents

shall, on demand in writing by the Trustee made at any time after an Event of

Default or a Potential Event of Default has occurred and until notified in

writing by the Trustee to the contrary, so far as permitted by applicable law:

 

4.1.1                     act as Agents of the Trustee under the Trust Deed and the Notes on

the terms of this Agreement (with consequential amendments as necessary and

except that the Trustee’s liability under this Agreement for the

indemnification, remuneration and expenses of the Agents will be limited to the

amounts for the time being held by the Trustee in respect of the Notes on the

terms of the Trust Deed) and thereafter to hold all Notes and Coupons and all

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

the order of the Trustee; or

 

4.1.2                     deliver all Notes and Coupons and all moneys, documents and records

held by them in respect of the Notes and Coupons to the Trustee or as the

Trustee directs in such demand.

 

4.2                               Notices of change of the Trustee: The

Issuer shall forthwith notify the Principal Paying Agent of any change in the

person or persons comprising the Trustee.

 

5              Payment

 

5.1                               Payment to Principal Paying Agent: The

Issuer will, one Business Day before each date on which any payment in respect

of the Notes becomes due, transfer to the Principal Paying Agent such amount as

may be required for the purposes of such payment. The Issuer will procure that

 

2

 

the bank

through which such payment is to be made will supply to the Principal Paying

Agent by 3.00 p.m. (local time in the city of the Principal Paying Agent’s

specified office) on the business day in the city of the Principal Paying

Agent’s specified office before the due date for any such payment an

irrevocable confirmation (by tested telex or authenticated SWIFT message) of

its intention to make such payment. In this Clause, the date on which a payment

in respect of the Notes becomes due means the first date on which the holder of

a Note or Coupon could claim the relevant payment by transfer to an account

under the Conditions, but disregarding the necessity for it to be a business

day in any particular place of presentation.

 

5.2                               Condition to payment by Paying Agents:

The Principal Paying Agent will forthwith notify by telex each of the other

Paying Agents, the Trustee and the Issuer if it has not by the due date for any

payment due in respect of the Notes received the full amount so payable on such

date by the time specified for its receipt received the amount referred to in

sub-Clause 5.1.

 

5.3                               Payment by Paying Agents: Unless they

receive a notification from the Principal Paying Agent under sub-Clause 5.2 (or

they are notified by the Principal Paying Agent that it has not received

payment) the Paying Agents will, subject to and in accordance with the

Conditions, pay or cause to be paid on behalf of the Issuer on and after each

due date therefor the amounts due in respect of the Notes and Coupons and will

be entitled to claim any amounts so paid from the Principal Paying Agent. If

any payment provided for in sub-Clause 5.1 is made late but otherwise in

accordance with this Agreement the Paying Agents will nevertheless make such

payments in respect of the Notes and Coupons. However, unless and until the

full amount of any such payment has been made to the Principal Paying Agent

none of the Paying Agents will be bound but shall be entitled to make such

payments. No payment shall be made by transfer of funds into an account

maintained by the payee in the United States or by mail to an address in the

United States.

 

5.4                               Reimbursement by the Issuer: If the

Principal Paying Agent pays out on or after the due date therefor, or becomes

liable to pay out funds on the assumption that the corresponding payment by the

Issuer has been or will be made and such payment has in fact not been so made

by the Issuer, then the Issuer shall on demand reimburse the Principal Paying

Agent for the relevant amount and pay interest to the Principal Paying Agent on

such amount from the date on which it is paid out to the date of reimbursement at

a rate per annum equal to the cost to the Principal Paying Agent of funding the

amount paid out, as certified by the Principal Paying Agent and expressed as a

rate per annum.

 

5.5                               Reimbursement of Paying Agents: The

Principal Paying Agent will on demand promptly reimburse each Paying Agent for

payments in respect of the Notes and Coupons properly made by it in accordance

with the Conditions and this Agreement.

 

5.6                               Late Payment: If the Principal Paying

Agent has not by the due date for any payment in respect of the Notes received

the full amount payable on such date but receives it later, it will forthwith

give notice to the other Paying Agents, the Trustee and, if requested by the

Trustee, the Noteholders that it has received such full amount.

 

5.7                               Method of payment to Principal Paying Agent: All sums payable to the Principal Paying Agent hereunder will be

paid in euro and in immediately available or same day funds to such account

with such bank as the Principal Paying Agent may from time to time notify to the

Issuer.

 

5.8                               Moneys held by Principal Paying Agent:

The Principal Paying Agent may deal with moneys paid to it under this Agreement

in the same manner as other moneys paid to it as a banker by its customers

except that (1) it may not exercise any lien, right of set-off or similar claim

in respect 

 

3

 

of them

and (2) it shall not be liable to anyone for interest on any sums held by it

under this Agreement.

 

5.9                               Partial Payments: If on presentation of

a Note or Coupon only part of the amount payable in respect of it is paid

(except as a result of a deduction of tax permitted by the Conditions), the

Paying Agent to whom the Note or Coupon is presented shall procure that such

Note or Coupon is enfaced with a memorandum of the amount paid and the date of

payment.

 

6              Repayment

If claims in

respect of any principal, premium or interest become void under the Conditions,

the Principal Paying Agent shall (subject to Clause 4.1) forthwith repay to the

Issuer the amount which would have been due if presentations for payment had

been made before such claims became void. The Principal Paying Agent shall not

however be otherwise required or entitled to repay any sums received by it

under this Agreement.

 

7              Early Redemption

 

7.1                               Notice of Redemption: If the Issuer

intends to redeem all or any of the Notes under Condition 5, otherwise than

under Condition 5(d), before their stated maturity date it shall, at least 14

days before the latest date for the publication of the notice of redemption

required to be given to Noteholders, give notice of its intention to the

Principal Paying Agent and the Trustee stating the date on which such Notes are

to be redeemed and the principal amount of Notes to be redeemed.

 

7.2                               Redemption Notice: The Principal Paying

Agent shall publish the notice required in connection with such redemption.

Such notice shall specify the date fixed for redemption, the redemption price

and the manner in which redemption will be effected.

 

8              Cancellation,

Destruction and Records

 

8.1                               Cancellation by Paying Agents: All Notes

which are redeemed (together with such unmatured Coupons as are attached to or

are surrendered with them at the time of such redemption), and all Coupons

which are paid, shall be cancelled forthwith by the Paying Agent by or through

which they are redeemed or paid. Such Paying Agent shall send to the Principal

Paying Agent the details required by the Principal Paying Agent for the

purposes of this Clause and the cancelled Notes and Coupons.

 

8.2                               Cancellation by Issuer: If the Issuer or

any of its Subsidiaries purchases any Notes or Coupons which are required by

the Conditions to be cancelled after such purchase, the Issuer shall forthwith

cancel them or procure their cancellation and send them (if in definitive form)

to the Principal Paying Agent.

 

8.3                               Certification of Payment Details: The

Principal Paying Agent shall within four months after the date of any such

redemption or payment send to the Issuer and the Trustee a certificate stating

(1) the aggregate principal amount of Notes which have been redeemed and

cancelled and the aggregate amount paid in respect of Coupons which have been

paid and cancelled or in respect of interest paid on the Temporary Global Note

and the Permanent Global Note, (2) the certificate numbers of such Notes, (3)

the total numbers by maturity date of such Coupons and (4) the total number and

the maturity dates of unmatured Coupons not surrendered with Notes redeemed, in

each case distinguishing between Notes and Coupons of different denominations.

 

4

 

8.4                               Destruction: Unless otherwise instructed

by the Issuer, the Principal Paying Agent shall destroy the cancelled Notes and

Coupons in its possession and send the Issuer and the Trustee a certificate

giving the certificate numbers of such Notes in numerical sequence, the total

numbers by maturity date and the aggregate amount paid in respect of such

Coupons and particulars of the Coupons attached to or surrendered with such Notes

in each case distinguishing between Notes and Coupons of different

denominations.

 

8.5                               Records: The Principal Paying Agent

shall keep a record of the payment, redemption, replacement, cancellation and

destruction of all Notes and Coupons (but need not record the certificate

numbers of Coupons). It shall make such record available at all reasonable

times to the Issuer and the Trustee.

 

9              Replacement Notes and

Coupons

 

9.1                               Stocks of Notes and Coupons: The Issuer

shall, if definitive Notes are issued, cause a sufficient quantity of

additional forms of Notes and Coupons to be made available, upon request, to

the Paying Agent for the time being in the Grand Duchy of Luxembourg (in such

capacity the “Replacement Agent”) for the purpose of issuing replacement Notes

and Coupons.

 

9.2                               Replacement: The Replacement Agent shall

issue replacement Notes and Coupons in accordance with the Conditions.

 

9.3                               Coupons on replacement Notes: In the

case of a mutilated or defaced Note, the Replacement Agent shall ensure that (unless

such indemnity as the Issuer may require is given) any replacement Note only

has attached to it Coupons corresponding to those attached to the Note which it

replaces.

 

9.4                               Cancellation: The Replacement Agent

shall cancel and, unless otherwise instructed by the Issuer, destroy any

mutilated or defaced Notes or Coupons replaced by it and shall send the Issuer,

the Principal Paying Agent and the Trustee a certificate giving the information

specified in Clause 8.4.

 

9.5                               Notification: The Replacement Agent

shall, on issuing a replacement Note or Coupon, forthwith inform the other

Paying Agents of the certificate numbers of the replacement Note or Coupon and

of the Note or Coupon which it replaces.

 

9.6                               Presentation of replaced Note or Coupon:

If a Note or Coupon which has been replaced is presented to a Paying Agent for

payment, that Paying Agent shall forthwith inform the Principal Paying Agent,

which shall inform the Issuer.

 

10           Notices

 

10.1                        Publication: At the request and expense

of the Issuer, the Principal Paying Agent shall arrange for the publication of

all notices to Noteholders. Notices to Noteholders shall be published in

accordance with the Conditions having previously, unless the Trustee otherwise

directs, been approved by the Trustee.

 

10.2                        Copies to the Trustee: The Principal

Paying Agent shall promptly send to the Trustee two copies of the form of every

notice to be given to Noteholders for approval and of every such notice once

published.

 

5

 

11            Documents and Forms

 

The

Issuer shall send to the Paying Agents:

 

11.1        specimen Notes (but only if definitive Notes are issued)

 

11.2                         sufficient copies of all documents required by the Notes, the

Offering Circular relating to the Notes or any Stock Exchange on which the

Notes are listed from time to time to be available for issue or inspection (and

the Paying Agents shall make them so available to Noteholders) and

 

11.3                         as required, forms of voting certificates and block voting

instructions, together with instructions as to how to complete, deal with and

record the issue of such forms (and the Paying Agents shall make such documents

available to Noteholders and perform their other functions as set out in

Schedule 3 of the Trust Deed).

 

12           Indemnity

 

12.1                        By Issuer: The Issuer will indemnify

each Agent against any loss, liability, cost, claim, action, demand or expense

(including, but not limited to, all costs, charges and expenses properly paid

or incurred in disputing or defending any of the foregoing) which it may incur

or which may be made against it arising out of or in relation to or in

connection with its appointment or the exercise of its functions, except such

as may result from a breach by it of this Agreement or its wilful default,

negligence or bad faith or that of its officers or employees.

 

12.2                        By Agents: Each Agent shall indemnify

the Issuer against any loss, liability, cost, claim, action, demand or expense

(including, but not limited to, all costs, charges and expenses properly paid

or incurred in disputing or defending any of the foregoing) which the Issuer

may incur or which may be made against it as a result of a breach by that Agent

of this Agreement or its wilful default, negligence or bad faith or that of its

officers or employees.

 

13           General

 

13.1                        No agency or trust: In acting under this

Agreement the Agents shall, except as provided in Clause 5.7; have no

obligation towards or relationship of agency or trust with any Noteholder or

Couponholder and need only perform the duties set out specifically in this

Agreement and the Conditions and any duties necessarily incidental to them.

 

13.2                        Holder to be treated as owner: Except as

otherwise required by law, each Agent will treat the holder of a Note or Coupon

as its absolute owner as provided in the Conditions and will not be liable for

doing so.

 

13.3                        No lien: No Paying Agent shall exercise

any lien, right of set-off or similar claim against any Noteholder or

Couponholder in respect of moneys payable by it under this Agreement.

 

13.4                        Legal advice: Each Agent may consult on

any legal matter any legal adviser selected by it, who may be an employee of or

adviser to the Issuer and it shall not be liable in respect of anything done,

or omitted to be done, relating to that matter in good faith in accordance with

that adviser’s opinion.

 

13.5                        Reliance on documents etc.: No Agent

shall be liable in respect of anything done or suffered by it in reliance on a

Note, Coupon or other document reasonably believed by it to be genuine and to

have been signed by the proper parties.

 

13.6                        Other relationships: Any Agent and any

other person, whether or not acting for itself, may acquire, hold or dispose of

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

 

6

 

Issuer or any

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

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

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

with the same rights as it would have had if that Agent were not an Agent and

need not account for any profit.

 

14           Changes in Agents

 

14.1                        Appointment and Termination: The Issuer

may at any time, with the prior written approval of the Trustee, appoint additional

Paying Agents and/or terminate the appointment of any Agent by giving to the

Principal Paying Agent and the Agent concerned at least 60 days’ notice to that

effect, which notice shall expire at least 30 days before or after any due date

for payment of any Notes or Coupons.

 

14.2                        Resignation: Any Agent may resign its

appointment at any time by giving the Issuer and the Principal Paying Agent at

least 60 days’ notice to that effect, which notice shall expire at least 30

days before or after any due date for payment of any Notes or Coupons.

 

14.3                        Condition to Resignation or Termination:

No resignation or (subject to sub-Clause 14.5) termination of the appointment

of the Principal Paying Agent shall, however, take effect until a new Principal

Paying Agent (which shall be a bank or trust company) has been appointed, with

the prior written approval of the Trustee, and no resignation or termination of

the appointment of a Paying Agent shall take effect if there would not then be

Paying Agents as required by the Conditions. If the Issuer shall have failed to

appoint a successor Agent by the 10th day prior to the expiry of the relevant

notice period, the relevant Agent may appoint a successor, provided that such

successor shall be a reputable bank or trust company of good standing and

previously approved by the Issuer and the Trustee (such approval not to be

unreasonably withheld or delayed).

 

14.4                        Change of Office: If an Agent changes

the address of its specified office in a city it shall give the Issuer, the Trustee

and the Principal Paying Agent at least 60 days’ notice of the change, giving

the new address and the date on which the change takes effect.

 

14.5                        Automatic Termination: The appointment

of any Agent shall forthwith terminate if such Agent becomes incapable of

acting, is adjudged bankrupt or insolvent, files a voluntary petition in

bankruptcy, makes an assignment for the benefit of its creditors, consents to

the appointment of a receiver, administrator or other similar official of all

or a substantial part of its property or admits in writing its inability to pay

or meet its debts as they mature or suspends payment thereof, or if a

resolution is passed or an order made for the winding up or dissolution of such

Agent, a receiver, administrator or other similar official of such Agent or all

or a substantial part of its property is appointed, a court order is entered

approving a petition filed by or against it under applicable bankruptcy or

insolvency law or a public officer takes charge or control of such Agent or its

property or affairs for the purpose of rehabilitation, conservation or

liquidation.

 

14.6                        Delivery of records: If the Principal

Paying Agent resigns or its appointment is terminated, it shall on the date the

resignation or termination takes effect pay to the new Principal Paying Agent

any amount held by it for payment of the Notes or Coupons and deliver to the

new Principal Paying Agent the records kept by it and all Notes and Coupons

held by it pursuant to this Agreement.

 

14.7                        Successor Corporations: A corporation

into which an Agent is merged or converted or with which it is consolidated or

which results from a merger, conversion or consolidation to which it is a party

shall, to the extent permitted by applicable law, be the successor Agent under

this

 

7

 

Agreement

without further formality. The Agent concerned shall forthwith notify such an

event to the other parties to this Agreement.

 

14.8                        Notices: The Principal Paying Agent

shall give Noteholders and the Trustee at least 30 days’ notice of any proposed

appointment, termination, resignation or change under sub-Clauses 14.1 to 14.4

of which it is aware, and, as soon as practicable, notice of any succession

under sub-Clause 14.7 of which it is aware. The Issuer shall give Noteholders

and the Trustee, as soon as practicable, notice of any termination under

sub-Clause 14.5 of which it is aware.

 

15           Commissions, Fees and

Expenses

 

15.1                        Fees: The Issuer will pay to the

Principal Paying Agent the commissions, fees and expenses in respect of the

Agents’ services as separately agreed with the Principal Paying Agent and the

Issuer need not concern itself with their apportionment between the Agents.

 

15.2                        Costs: The Issuer will also pay on

demand all reasonable out-of-pocket expenses (including legal, advertising,

telex and postage expenses) properly incurred by the Agents in connection with

their services together with any applicable value added tax and stamp, issue,

documentary or other taxes and duties.

 

16           Communications

 

16.1        Notices: Any communication shall be by letter, telex or fax:

 

in the case of

the Issuer, to it at:

 

Ecolab Inc.

370 North

Wabasha Street

St. Paul,

Minnesota

USA 55102-1390

 

Fax no. +1 651

293 2573

Attention

General Counsel

 

in the case of

the Trustee, to it at:

 

JPMorgan Chase

Bank, London Branch

Trinity Tower

9 Thomas More

Street

London E1W 1YT

 

Telex no.

8954681 CMBG

Fax no. +44 20

7777 5410

Attention

Manager, Trust Administration

 

and, in the

case of any of the Agents, to it care of:

 

JPMorgan Chase

Bank, London Branch

Trinity Tower

9 Thomas More

Street

London E1W 1YT

 

Telex no.

8954681 CMBG

Fax no. +44

1202 347 601

Attention

Manager, Institutional Trust Services

 

8

 

or any other address

of which written notice has been given to the parties in accordance with this

Clause. Such communications will take effect, in the case of a letter, when

delivered or, in the case of telex or fax, when despatched. Communications not

by letter shall be confirmed by letter but failure to send or receive the

letter of confirmation shall not invalidate the original communication.

 

16.2                        Notices through Principal Paying Agent:

All communications relating to this Agreement between (1) the Issuer and the Trustee

and (2) any of the Agents or between the Agents themselves shall be made

(except where otherwise expressly provided) through the Principal Paying Agent.

 

17           Governing Law and

Submission

 

17.1        Governing

Law: This Agreement shall be governed by and

construed in accordance with English law.

 

17.2                        Jurisdiction: The courts of England are

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

connection with this Agreement and accordingly any legal action or proceedings

arising out of or in connection with this Agreement (“Proceedings”) may be brought

in such courts. Each of the Issuer and the Agents irrevocably submits to the

jurisdiction of such courts and waives any objection to Proceedings in any such

courts whether on the ground of venue or on the ground that the Proceedings

have been brought in an inconvenient forum. These submissions are for the

benefit of the Agents and the Trustee and shall not limit the right of any of

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

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

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

 

17.3                        Service of Process: The Issuer

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

Temple Avenue, London EC4Y 0HP 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 deliver to the Principal Paying Agent a copy of the

new agent’s acceptance of that appointment within 30 days. Nothing shall affect

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

 

9

 

This Agreement

has been entered into on the date stated at the beginning.

 

	

  ECOLAB INC.

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ Daniel

  J. Schmechel

  
			

 

	

  JPMORGAN CHASE BANK, LONDON BRANCH as Principal Paying Agent

  
	

   

  	

   

  
	

  By:

  	

  /s/ Nicola

  Dale

  
			

 

	

  J.P. MORGAN BANK LUXEMBOURG

  S.A.

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ Nicola

  Dale

  
			

 

	

  JPMORGAN CHASE BANK, LONDON BRANCH as Trustee

  
	

   

  	

   

  
	

  By:

  	

  /s/ Nicola

  Dale

  
			

 

For the

purposes of Article I of the Protocol annexed to the Convention on jurisdiction

and the enforcement of judgments in civil and commercial matters signed at

Brussels on 27 September 1968 we hereby expressly and specifically accept the

jurisdiction of the courts of England.

 

	

  J.P. MORGAN BANK LUXEMBOURG

  S.A.

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ Nicola

  Dale

  
			

 

10ECOLAB

ECOLAB

SUPPLEMENTAL

EXECUTIVE RETIREMENT PLAN

 

Fourth

Declaration of Amendment

 

Pursuant to Section 1.3 of the Ecolab Supplemental

Executive Retirement Plan (“Plan”) and Section 5.1 of the Ecolab Inc.

Administrative Document for Non-Qualified Benefit Plans which is incorporated

into the Plan by reference (“Administrative Document”), the Company amends the

Plan as set forth below.  Except as

otherwise specifically provided herein, the terms of this Amendment shall be effective

on February 22, 2002:

 

1.         Section 3.4(2)(c) of the Plan is

hereby amended by deleting the phrase “does not exceed $5,000” therefrom and

replacing it with the phrase “does not exceed $25,000” therein.

 

2.         Section 5.1(1) of the

Plan is hereby amended by deleting the phrase “Except as provided in Subsection

(2) of this Section” therefrom and replacing it with the phrase “Except as

provided in Subsections (2) and (3) of this Section” therein.

 

3.         Section 5.1(2) of the

Plan is hereby amended in its entirety to read as follows:

 

“(2)  Forfeiture

Provision.

 

(a) 

Notwithstanding the provisions of Subsection (1) hereof, but subject to

the requirements of clause (b) of this Subsection, the Employers shall be

relieved of any obligation to pay or provide any future SERP Benefits or SERP

Pre-Retirement Benefits under this Plan and shall be entitled to recover

amounts already distributed if,  without

the written consent of the Company, the Executive, whether before or after

termination with the Controlled Group (i) participates in dishonesty , fraud, misrepresentation,

embezzlement or deliberate injury or attempted injury, in each case related to

the Company or a Controlled Group member, (ii) commits any unlawful or criminal

activity of a serious nature, (iii) commits any intentional and deliberate breach

of a duty or duties that, individually or in the aggregate, are material in

relation to the Executive’s overall duties or (iv) materially breaches any

confidentiality or noncompete agreement entered into with the Company or a

Controlled Group member.  The Employers

shall have the burden of proving that one of the foregoing events have

occurred.  Notwithstanding the

foregoing, the provisions of Subsection (2)(a) shall not apply to the

Executive’s Minimum Benefit.

 

(b) 

Notwithstanding the foregoing, an Executive shall not forfeit any

portion of his SERP Benefits or SERP Pre-Retirement Benefits under clause (a)

of this Subsection unless (i) the Executive receives reasonable notice in

writing setting forth the grounds for the forfeiture, (ii) if requested by the

Executive, the Executive (and/or the Executive’s counsel or other

representative) is granted a hearing before the full Board of Directors of the

Company (the “Board”) and (iii) a majority of the members of the full Board

determine that the Executive violated one or more of the provisions of clause

(a) of this Subsection.”

 

4.         Section 5.1 of the

Plan is hereby amended by adding the following new Subsection (3) to the end

thereof, to read as follows:

 

“(3)  Acceleration

of Vesting.  Notwithstanding the provisions

of Subsection (1) hereof, the SERP 

Benefits of the Executives (a) who are employed by the Controlled Group

on the date of a Change in Control or (b) whose employment with the Company was

terminated prior to a Change in Control but the Executive reasonably

demonstrates that the termination occurred at the request of a third party who

has

 

 

taken steps reasonably calculated to effect the Change in Control,

shall become immediately 100% vested upon the occurrence of such Change in

Control.”

 

5.         Article VI of the

Plan is hereby amended by adding the following new Sections to the end thereof,

to read as follows:

 

"SECTION 6.3.                         Limitation on

Payments and Benefits. 

Notwithstanding any provision of this Plan to the contrary, if any

amount or benefit to be paid or provided under this Plan or any other plan or

agreement between the Executive and a Controlled Group member would be an

"Excess Parachute Payment", within the meaning of Section 280G of the

Code, or any successor provision thereto, but for the application of this

sentence, then the payments and benefits to be paid or provided under this Plan

shall be reduced to the minimum extent necessary (but in no event to less than

zero) so that no portion of any such payment or benefit, as so reduced, constitutes

an Excess Parachute Payment; provided, however, that the foregoing reduction

shall be made only if and to the extent that such reduction would result

in an increase in the aggregate payment and benefits to be provided to the

Executive, determined on an after-tax basis (taking into account the excise tax

imposed pursuant to Section 4999 of the Code, or any successor provision

thereto, any tax imposed by any comparable provision of state law, and any

applicable federal, state and local income taxes).  If requested by the Executive or the Company, the determination of

whether any reduction in such payments or benefits to be provided under this

Plan or otherwise is required pursuant to the preceding sentence shall be made

by the Company's independent accountants, at the expense of the Company, and

the determination of the Company's independent accounts shall be final and

binding on all persons.  The fact that

the Executive's right to payments or benefits may be reduced by reason of the

limitations contained in this Section 6.3 shall not of itself limit or

otherwise affect any other rights of the Executive pursuant to this Plan.  In the event that any payment or benefit

intended to be provided under this Plan or otherwise is required to be reduced

pursuant to this Section, the Executive (in his or her sole discretion) shall

be entitled to designate the payments and/or benefits to be so reduced in order

to give effect to this Section.  The

Company shall provide the Executive with all information reasonably requested

by the Executive to permit the Executive to make such designation.  In the event that the Executive fails to

make such designation within ten (10) business days or receiving such

information, the Company may effect such reduction in any manner it deems

appropriate.

 

SECTION 6.4.                           Estrablishment of

Trust Funds

 

(1)        In General.  The Plan is intended to be an unfunded,

non-qualified retirement plan.  However,

the Company may enter into a trust agreement with a trustee to establish a

trust fund (the “Trust Fund”) and to transfer assets thereto (or cause assets

to be transferred thereto), subject to the claims of the creditors of the

Employers, pursuant to which some or all of the SERP Benefits and SERP

Pre-Retirement  Benefits shall be

paid.  Payments from the Trust Fund

shall discharge the Employers’ obligation to make payments under the Plan to

the extent that Trust Fund assets are used to satisfy such obligations.

 

(2)        Upon a Change in Control.

 

(a)        Within thirty (30) business days of the

occurrence of a Change in Control, to the extent it has not already done so,

the Company shall be required to establish an irrevocable Trust Fund for the

purpose of paying SERP Benefits and SERP Pre-Retirement Benefits.  Except as described in the following

sentence, all contributions to the Trust Fund shall be irrevocable and the

Company shall not have the right to direct the trustee to return to the

Employers, or divert to others, any of the 

assets of the Trust Fund until after satisfaction of all liabilities to

all of the Executives and their Death Beneficiaries under the Plan.  Any assets deposited in the Trust Fund shall

be subject to the claims of the creditors of the 

 

2

 

Employers and any excess assets remaining in the

Trust Fund after satisfaction of all liabilities shall revert to the Company.

 

(b)        In addition to the requirements

described in Subsection (a) above, the Trust Fund which becomes effective on

the Change in Control shall be subject to the following additional

requirements:

 

(i)         the trustee of the Trust Fund shall be

a third party corporate or institutional trustee;

 

(ii)        the Trust Fund shall satisfy the

requirements of a grantor trust under the Code; and

 

(iii)                      the Trust Fund shall automatically terminate (A)

in the event that it is determined by a final decision of the United Stated

Department of Labor (or, if an appeal is taken therefrom, by a court of

competent jurisdiction) that by reason of the creation of, and a transfer of

assets to, the Trust, the Trust is considered “funded” for purposes of Title I

of ERISA or (B) in the event that it is determined by a final decision of the

Internal Revenue Service (or, if an appeal is taken therefrom, by a court of

competent jurisdiction) that (I) a transfer of assets to the Trust is

considered a transfer of property for purposes of Code Section 83 or any

successor provision thereto, or (II) pursuant to Code Section 451 or any

successor provision thereto, amounts are includable as compensation in the

gross income of a Trust Fund beneficiary in a taxable year that is prior to the

taxable year or years in which such amounts would otherwise actually be

distributed or made available to such beneficiary by the trustee.  Upon such a termination of the Trust, all of

the assets in the Trust Fund attributable to the accrued SERP Benefits and SERP

Pre-Retirement Benefits shall be immediately distributed to the Executives and

the remaining assets, if any, shall revert to the Company.

 

(c)        Within five (5) days following establishment

of the Trust Fund, the Company shall transfer (or cause the Employers to

transfer) to the trustee of such Trust Fund an amount equal to the equivalent

actuarial present value of the SERP Benefits and SERP Pre-Retirement Benefits

which have been accrued as of the date of the Change in Control on behalf of

all of the Executives under the Plan (using the Actuarial Factors specified in

Exhibit A for this purpose).

 

(d)        In January of each year following a

funding of the Trust Fund pursuant to clause (c) above, the Company shall cause

to be deposited in the Trust Fund such additional amount (if any) by which the

aggregate equivalent actuarial present value (determined using the Actuarial

Factors specified in Exhibit A) of the sum of the SERP Benefits and SERP  Pre-Retirement Benefits for all Executives

under the Plan as of December 31 of the preceding year exceeds the fair market

value of the assets of the Trust Fund as of such date.

 

(e)        Notwithstanding the foregoing, an

Employer shall not be required to make any contributions to the Trust Fund if

the Employer is insolvent at the time such contribution is required.

 

(f)         The Administrator shall notify the

trustee of the amount of SERP Pension Benefits and SERP Pre-Retirement Pension

Benefits to be paid to or on behalf of the Executive from the Trust Fund and

shall assist the trustee in making distribution thereof in accordance with the

terms of the Plan.

 

3

 

(g)        Notwithstanding any provision of the

Plan or the Administrative Document to the contrary, the provisions of this

Section 6.4(2) hereof (i) may not be amended following a Change in Control and

(ii) prior to a Change in Control may only be amended (A) with the written

consent of each of the Executives or (B) if the effective date of such

Amendment is at least two years following the date the Executives were given

written notice of the adoption of such amendment.”

 

IN WITNESS WHEREOF, the Company has caused this instrument to be

executed by its duly authorized officer and its corporate seal affixed, this 27

day of February, 2002.

 

	

   

  	

   

  
	

   

  	

  ECOLAB, INC.

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Steven L. Fritze

  
	

   

  	

  Title: Senior Vice President – Finance and

  Controller

  

 

(Seal)

 

Attest: /s/ Kenneth A. Iverson

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]