Document:

EXHIBIT 10.4

  
	
   

  	
   

  
	
  

  	
  SOCIETE D’EXERCICE
  LIBERAL D’AVOCATS A FORME ANONYME

  

 

 

SENSUS METERING SYSTEMS (LUXCO 3) S.ÀR.L.

 

as
Pledgor

 

 

and

 

 

CREDIT SUISSE FIRST BOSTON

 

as
European Collateral Agent

 

 

relating
to shares in 

SENSUS METERING SYSTEMS FRANCE HOLDINGS

 

 

 

PLEDGE
AGREEMENT

 

(ACTE DE
NANTISSEMENT DE COMPTE D’INSTRUMENTS FINANCIERS)

 

 

17
December 2003

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definition and Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Perfection of Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Undertakings

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Dividends

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Remedies upon Default

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Costs and Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Waiver – Remedies
  cumulative

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Benefit of the Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Severability of Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1
  Déclaration de gage de compte d’instruments financiers

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 2
  Attestation de constitution de gage

  	
   

  

 

 

PLEDGE
AGREEMENT

 

(ACTE DE NANTISSEMENT DE COMPTE D’INSTRUMENTS
FINANCIERS)

 

BETWEEN:

 

(1)                                  SENSUS
METERING SYSTEMS (LUXCO 3) S.ÀR.L., a company incorporated under the laws of Luxembourg, whose
registered office is at 12, rue Léon Thyes, L-2636 Luxembourg  in
the course of being registered with the Commercial and Companies Registry of
Luxembourg (the “Pledgor”),

 

OF THE FIRST PART,

 

AND

 

(2)                                  CREDIT
SUISSE FIRST BOSTON, a
credit institution incorporated under the laws of Switzerland acting through
its London branch whose registered office is at One Cabot Square, London E14
4QG, United Kingdom, as collateral agent on the terms and conditions set out in
the Credit Agreement and the European Guarantee Agreement,

 

(the “European  Collateral
Agent” which expression shall include any person for the time being
appointed as European Collateral Agent or as an additional European Collateral
Agent for the purpose of, and in accordance with the Credit Agreement or the
European Guarantee Agreement),

 

OF THE SECOND PART.

 

WHEREAS:

 

(A)                              By the
Credit Agreement, the European Lenders have agreed to make available to the
European Borrower certain facilities on the terms referred to in the Credit
Agreement and for the purposes therein mentioned.

 

(B)                                Pursuant
to the European Guarantee Agreement, the Pledgor has granted a guarantee, on
the terms and subject to the limitations referred to in the European Guarantee
Agreement.

 

(C)                                As
security for the due performance of the European Obligations, the Pledgor has
agreed to create a pledge over the financial instruments account (compte
d’instruments financiers) opened in the books of the Company.

 

IT HAS BEEN AGREED AS FOLLOWS:

 

1.                                       DEFINITION AND INTERPRETATION

 

1.1                                 Unless otherwise defined
herein, capitalised terms in this Agreement shall have the same meaning as set
out in the Credit Agreement (including in the preambule).  In this Agreement:

 

“Company” means Sensus Metering Systems France
Holdings, a French société par actions
simplifiée incorporated under the laws of France, whose registered
office is at

 

1

 

17, rue du Colisée, 75008 Paris, registered with the
Commercial and Companies Registry of Paris under number 451 149 637.

 

“Credit Agreement” means the term,
revolving, letter of credit and swingline facility agreement entered into on 17
December 2003 by Sensus Metering Systems Inc., Sensus Metering Systems
(LuxCo 2) S.ÀR.L, Sensus Metering Systems (Bermuda 2) Ltd, Credit Suisse First
Boston as General Administrative Agent, U.S. Collateral Agent, European
Administrative Agent and European Collateral Agent and the Lenders named
therein.

 

“European Guarantee Agreement” means the guarantee agreement entered into on 17 December 2003 by
Sensus Metering Systems (LuxCo 2) S.ÀR.L., the Subsidiaries of Sensus Metering
Systems (LuxCo 2) S.ÀR.L. identified therein (including the Pledgor and the
Company), Sensus Metering Systems (Bermuda 3) Ltd, Sensus Metering Systems
(LuxCo 1) S.ÀR.L. and the European Collateral Agent.

 

“European Obligations” means all obligations of the Pledgor
toward the European Collateral Agent defined under the term “European  Obligations” in the European Guarantee
Agreement pursuant to Section 4.18 (Parallel
Debt) of the European Guarantee Agreement.

 

1.2                                 Words denoting the
singular shall include the plural and vice versa, words denoting one gender
shall include the other genders and words denoting persons shall include firms
and corporations and vice versa.

 

1.3                                 References in this
Agreement to any statutory provision 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 re-enactment.

 

1.4                                 References in this
Agreement to any other agreement shall be construed as a reference to that
other agreement as the same may from time to time be amended, varied,
supplemented or novated.

 

1.5                                 References in this
Agreement to the European Collateral Agent and the Pledgor shall include their
successors and permitted assigns.

 

1.6                                 Clause headings used in
this Agreement are for convenience of reference only and shall not affect the
construction of this Agreement.

 

2

 

2.                                       THE PLEDGE

 

2.1                                 In order to secure the
full and punctual payment, performance and discharge of all of the European
Obligations, the Pledgor hereby grants a pledge over and pledges the financial
instruments account (compte d’instruments financiers) opened
and maintained by the Company in its books in the name of the Pledgor (the “Pledged
Account” or the “Collateral”),
in favour of the European Collateral Agent (the “Pledge”) in accordance with
article L.431-4 of the French Financial and Monetary Code (Code
monétaire et financier) (the “Code”).

 

2.2                                 The Pledged Account shall
be credited with 37,000 shares of a face value of EUR 1 held by the Pledgor in
the Company representing 100% of the issued capital of the Company (the “Shares”)
and with any Pledgor’s rights, title, benefit and interest in all securities
derived from the Shares or created in substitution of the Shares or any
additional securities received in respect of the Shares by way of, without
limitation, share exchange, regrouping, division, free issue, subscription by
way of cash or otherwise, or by any other means, and, except as provided below
and under Clause 6.1 of this Agreement, with any dividends or proceeds
derived therefrom (the “Additional Assets”, and the Shares and the
Additional Assets shall be collectively referred to as the “Financial Instruments”).
Such Additional Assets shall automatically be included within the scope of the
Pledge. However, as provided under Clause 6.1 of this Agreement, the
Pledged Account shall not include the cash dividends, interest and other
monetary rights (fruits et produits en toute monnaie) attached to the Shares
(the “Cash
Proceeds”).

 

2.3                                 Should the Pledgor
acquire new shares or be attributed new financial instruments in the Company
not included in the Pledge, the Pledgor shall promptly (i) cause the Company to
credit them to the Pledged Account and procure that a record be made on the
register of share transfers (registre des mouvements de titres) of the
Company, and (ii) execute and deliver to the European Collateral Agent a
“statement of pledge over a financial instruments account” (déclaration de constitution de gage), and
procure that the Company delivers to the European Collateral Agent a
“certificate of pledge” (attestation de
constitution de gage) relating to these shares or financial
instruments.

 

2.4                                 The European Collateral
Agent shall take all steps, at the request of the Pledgor, to partially release
the Pledge to ensure that directors of the Company own or are lent a number of
shares in the Company necessary to comply with applicable laws. A partial
release of the Pledge may be requested by the Pledgor only to the extent (and
over a number of shares in the Company) necessary under applicable laws.

 

3.                                       PERFECTION OF PLEDGE

 

3.1                                 The Pledgor will on the
date hereof execute a “statement of pledge over a financial instruments
account” (déclaration
de constitution de gage de compte d’instruments financiers) relating
to the Shares it holds in the Company in the form set out in Schedule 1
and shall procure the Company to deliver to the European Collateral Agent on
the date hereof a “pledge certificate” (attestation de constitution de gage) in
the form set out in Schedule 2, in compliance with article L.431-4 of
the Code.

 

3

 

 

3.2                                 The Pledgor procures that
the Shares is credited to the Pledged Account on the date hereof and that the
credit of the Shares to the Pledged Account is recorded in the register of
share transfers (registre des mouvements de titres) of the Company.

 

3.3                                 The Pledgor shall procure
that any Additional Assets shall be credited directly to the Pledged Account
immediately upon the Pledgor becoming the owner of the Additional Assets and
shall procure that the credit of such Additional Assets to the Pledged Account
is recorded in the register of share transfers (registre des mouvements de titres)
of the Company.

 

4.                                       REPRESENTATIONS AND WARRANTIES

 

The Pledgor hereby represents and warrants upon execution of
this Agreement and as long as this Agreement and the Pledge shall remain in
force, that:

 

4.1                                 it is a company duly
incorporated and validly existing in its jurisdiction of incorporation with the
power to own its assets and carry on its business in all respects as it is
being conducted;

 

4.2                                 it has the right and
power to enter into this Agreement and to grant the Pledge, and all approvals
and authorisations necessary for the Pledgor to enter into this Agreement have
been obtained and no further approvals or authorisations are necessary for the
Pledgor to perform all its obligations under this Agreement;

 

4.3                                 it is the owner of all of
the Financial Instruments which are free and clear of any lien, option, charge,
encumbrance or other third party rights, to the exception of any action that
the Company may have with respect to the representation described in paragraph
4.4 below and except with respect to Liens created under this Agreement or
permitted under Section 6.02 of the Credit Agreement;

 

4.4                                 the Financial Instruments
are half paid up;

 

4.5                                 there exists no option to
buy or right granted by the Pledgor to any person over all or part of the
Financial Instruments;

 

4.6                                 once the “statement of
pledge over a financial instruments account” (déclaration de constitution de gage)
referred to in Clause 3.1 has been signed by the Pledgor, a valid nantissement
(pledge) will be created in favour of the European Collateral Agent
over the Pledged Account to secure the European Obligations; and

 

4.7                                 the Pledgor shall pledge
at all times in favour of the European Collateral Agent 100% of its
shareholding in the Company.

 

5.                                       UNDERTAKINGS

 

The Pledgor undertakes as long as this Agreement and the
Pledge shall remain in force, that:

 

5.1                                 it will not place or
permit any Financial Instruments to be placed in an account other than the
Pledged Account;

 

4

 

5.2                                 it shall not, without the
prior consent (not to be unreasonably withheld or delayed) of the European
Collateral Agent, (i) assign, transfer, exchange or otherwise dispose of any of
the Financial Instruments or (ii) incur or create or permit to subsist any
third party interests (including encumbrances, pre-emptive rights, options and
similar arrangements) with respect to any of the Financial Instruments. If such
consent is granted, the European Collateral Agent shall promptly sign all
documents and instruments necessary for the release of the security interest
created hereunder over any Financial Instruments to be transferred or encumbered
in accordance with this Clause 5.2;

 

5.3                                 it shall take all the
reasonably necessary steps to defend its rights in respect of each of the
Financial Instruments against any claim or demand of any person in order to
safeguard the rights of the European Collateral Agent over the Pledged Account
and shall promptly keep the European Collateral Agent informed of any such
claim or demand;

 

5.4                                 it shall at all times, at
its expense, promptly approve, execute and deliver (or procure to be approved,
executed and delivered) all decisions, instruments and documents, and take (or
procure) all actions as may be reasonably necessary or appropriate, or as the
European Collateral Agent may reasonably require, to perfect or protect any
security interest granted or purported to be granted hereby or to enable the
European Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to the Pledged Account;

 

5.5                                 it shall not exercise the
voting rights attached to any of the Financial Instruments in a way which would
be likely to materially adversely affect any of the rights of the European
Collateral Agent under this Agreement or the value of the Pledge created over
the Pledged Account by virtue of this Agreement; and

 

5.6                                 it shall procure that the
Company shall provide to the European Collateral Agent, upon demand, any
information as the European Collateral Agent may reasonably require, reports
and records in respect of the Pledged Account, including a “certificate of
pledge” (attestation
de
constitution de gage) and the Pledgor shall sign all documents and
take all actions reasonably necessary in relation thereto.

 

6.                                       DIVIDENDS

 

6.1                                 Provided that no Event of
Default has occurred and is continuing, the Pledgor shall be entitled to
receive all Cash Proceeds distributed by the Company.

 

6.2                                 After an Event of Default
has occurred and as long as such Event of Default is continuing, the Pledgor
shall ensure that the Company pays all Cash Proceeds to the European Collateral
Agent. The European Collateral Agent shall retain those amount as part of its
own patrimony, as a gage-espèces,
and, upon enforcement of the Pledge in accordance with Clause 7 (Remedies upon Default) of this Agreement,
the European Collateral Agent shall apply such amount to the payment of the European
Obligations in accordance with the Credit Agreement.

 

5

 

7.                                       REMEDIES UPON DEFAULT

 

7.1                                 Upon the occurrence and
during the continuation of an Event of Default and if a notice of termination
and acceleration of the Loans then outstanding has been delivered by the
General Administrative Agent in accordance with Article VII (Events of Default) of the Credit
Agreement, the European Collateral Agent may exercise, in addition to all other
rights and remedies granted to it under any other instrument or agreement
securing, evidencing or relating to the European Obligations, all rights and
remedies available to a secured party under the laws of France in respect of
the Pledged Account; in particular, the European Collateral Agent may enforce
the Pledge by requesting either (i) the attribution by a court, in whole or in
part, of the Financial Instruments to the European Collateral Agent in
accordance with the attribution judiciaire procedure pursuant
to article 2078 of the French Civil Code or (ii) the public sale (vente
publique) of the Financial Instruments pursuant to
article L.521-3 of the French Commercial Code, as the European Collateral
Agent may choose.

 

7.2                                 Following the exercise of
any of the remedies set out in Clause 7.1, all sums (including without
limitation the Cash Proceeds) received from time to time by the European
Collateral Agent, in respect of any sale, collection, or other realisation of
all or any part of the Financial Instruments and the Cash Proceeds, shall be
applied by the European Collateral Agent to the payment of the European
Obligations in the order provided in the Credit Agreement.

 

8.                                       COSTS AND EXPENSES

 

The Pledgor undertakes, on demand of the European Collateral Agent, to
indemnify the European Collateral Agent against all reasonable and documented
costs and expenses (including legal fees) and all charges, duties or taxes
relating thereto, incurred by the European Collateral Agent in relation to the
execution and enforcement of this Agreement (except in case of gross
negligence, wilful misconduct or bad faith of the European Collateral Agent) as
provided in Section 4.06 of the European Guarantee Agreement.

 

9.                                       TERMINATION

 

This Agreement shall terminate only when the Pledgor
has no further liability in respect of the European Obligations and the
European Guarantee Agreement has terminated, notwithstanding the liquidation,
bankruptcy, insolvency or reorganisation of the Pledgor or any other fact or
contingency whatsoever but subject to applicable bankruptcy, insolvency,
reorganisation or other similar laws. 
Upon termination of this Agreement, the interest of the European
Collateral Agent over the Pledged Account shall terminate. Only once termination
has occurred, at the request of the Pledgor, accompanied by such certificates,
opinions, instruments and other documents as the European Collateral Agent may
reasonably require, the European Collateral Agent shall, at the expense of the
Pledgor, promptly execute any necessary instrument acknowledging the
satisfaction and discharge of this Agreement, and shall promptly execute and
deliver all such further instruments and documents, as may be reasonably
necessary or appropriate, including the delivery of a letter to be given by the
European

 

6

 

Collateral Agent to the Pledgor for the purpose of mainlevée,
in respect of the Pledge.

 

10.                                 WAIVER – REMEDIES CUMULATIVE

 

10.1                           No failure to exercise
nor any delay in exercising on the part of the European Collateral Agent any
right or remedy under this Agreement shall operate as a waiver thereof nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise thereof or the exercise of any other right or remedy.

 

10.2                           The rights and remedies
provided for in this Agreement are cumulative and not exclusive of any rights
or remedies provided by law.

 

11.                                 BENEFIT OF THE PLEDGE

 

11.1                           The security constituted
by this Agreement shall not be considered as satisfied or discharged or
prejudiced by any intermediate payment, satisfaction or settlement of any part
of the European Obligations.

 

11.2                           The security created by
this Agreement shall be in addition to, and shall not in any way be prejudiced
or affected by, and shall be without prejudice to, any other security or
guarantee from time to time held by the European Collateral Agent in respect of
the European Obligations or any part thereof.

 

11.3                           This Agreement shall be
binding on and inure to the benefit of the parties hereto and their respective
permitted successors, assigns and transferees under the terms of the Credit
Agreement.

 

11.4                           The Pledgor may not
assign or transfer or purport to assign or transfer any or all of its rights
and/or obligations under this Agreement without the prior written consent of
the European Collateral Agent.

 

12.                                 AMENDMENTS

 

This Agreement may not be amended, modified or waived except
with the written consent of the Pledgor and the European Collateral Agent.

 

13.                                 NOTICES

 

Any communication or document to be made or delivered
by one person to another pursuant to this Agreement shall be made or delivered
to that other person in accordance with Section 9.01  (Notices) of the Credit
Agreement.

 

14.                                 SEVERABILITY OF PROVISIONS

 

If, at any time, any provision of this Agreement is or
becomes illegal, invalid or unenforceable in any respect in any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions
nor the legality, validity or enforceability of such provision under the law of
any other jurisdiction will in any way be affected or impaired.

 

7

 

15.                                 GOVERNING LAW

 

This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of France.

 

16.                                 JURISDICTION

 

The parties hereto submit to the exclusive
jurisdiction of the Tribunal de commerce de Paris to settle
any disputes which may arise out of or in connection with this Agreement. This
choice of jurisdiction is for the benefit of the European Collateral Agent
only. The European Collateral Agent shall also be entitled to take action
against the Pledgor in any other court of competent jurisdiction.

 

 

Signed on 17
December 2003,

in three (3) original copies.

 

 

	
  SENSUS METERING SYSTEMS (LUXCO 3) S.ÀR.L.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Pledgor

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, acting

  through its London Branch

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The European
  Collateral Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
  Signature:
  

  	
   

  
							

 

8

 

SCHEDULE 1

Déclaration de gage de compte d’instruments financiers

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

1.                                      Constituant du Gage

 

Sensus Metering Systems
(LuxCo 3) S.ÀR.L., une société de droit
luxembourgeois dont le siège social est situé à 12, rue Léon Thyes, L-2636
Luxembourg en cours d’immatriculation au registre du commerce et des sociétés
de Luxembourg, constitue en gage le compte d’instruments financiers décrit
ci-dessous selon les termes et conditions de l’acte de nantissement de compte
d’instruments financiers intitulé “Pledge Agreement” signé en date de ce jour
en langue anglaise entre le Constituant du Gage et le Créancier Gagiste.

 

2.                                      Société Emettrice

 

Sensus Metering Systems
France Holdings,  une société
par actions simplifiée dont le siège social est situé 17, rue du Colisée, 75008
Paris et immatriculée au registre du commerce et des sociétés de Paris sous le
numéro 451 149 637.

 

3.                                      Eléments d’identification du compte spécial constitué en
gage prévu à l’article L.431-4 du code monétaire et financier

 

•                  Teneur
de Compte : la Société Emettrice

 

•                  Numéro
de compte : 1 bis

 

4.                                      Instruments financiers définis par l’article L.211-1
du Code monétaire et financier inscrit dans le compte spécial constitué en gage

 

•                  Nature
:             actions de valeur nominale
de EUR 1  chacune

 

•                  Forme :                                         nominative

 

•            Nombre
:             37.000

 

5.                                      Créancier Gagiste

 

Credit Suisse First
Boston, un établissement de crédit de droit suisse, agissant
par l’intermédiaire de sa succursale à Londres  dont le siège social est
situé One Cabot Square, London E14 4QG, United Kingdom, agissant en qualité
d’Agent des Sûretés (Collateral Agent),
en son nom propre au titre des stipulations de la section 4.18 (Parallel Debt) du European Guarantee Agreement, aux termes
du contrat de crédit en date de ce jour défini sous le terme “Credit Agreement” dans l’acte de
nantissement relatif à la présente déclaration de gage (ou tout autre European Collateral Agent qui lui serait
substitué).

 

9

 

6.                                      Obligations garanties

 

Toutes les obligations de paiement, quelles qu’elles
soient, du Constituant du Gage (Pledgor) envers le Créancier Gagiste (Collateral
Agent), décrites sous le terme “European Obligations” dans l’acte de
nantissement de compte d’instruments financiers intitulé “Pledge Agreement” signé en
langue anglaise en date de ce jour entre le Constituant du Gage et le Créancier
Gagiste et relatif à cette déclaration de gage.

 

le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  SENSUS METERING SYSTEMS (LUXCO 3) S.ÀR.L.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  représentée par :

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

10

 

Translation for information purposes only

 

 

Statement of Pledge over a
Financial Instruments Account

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

1.                                      Pledgor

 

Sensus Metering Systems (LuxCo 3)
S.ÀR.L., a company incorporated under
the laws of Luxembourg whose registered office is at 12, rue Léon Thyes, L-2636
Luxembourg in the course of being registered with the Commercial and Companies
Registry of Luxembourg, grants a pledge over the special account described
below under the terms and conditions of the Pledge Agreement entered into on
the date hereof between the Pledgor and the Beneficiary of the Pledge.

 

2.                                      Issuing
Company

 

Sensus Metering Systems France Holdings, a French société par
actions simplifiée whose registered office is at 17, rue du Colisée,
75008 Paris and registered with the Commercial and Companies Registry of Paris
under number 451 149 637.

 

3.                                      Details
concerning the special account required by article L.431-4 of the French
Financial and Monetary Code

 

•            Account
Holder: the Issuing Company

 

•            Account
number: 1 bis

 

4.                                      Financial
Instruments defined by article L.211-1 of the French Financial and
Monetary Code registered in the special account pledged

 

•            Nature:                                               shares with a par value of EUR 1 each

 

•            Form:                                                        registered shares

 

•            Number:                                         37,000

 

5.                                      Beneficiary
of the Pledge

 

Credit Suisse First Boston, a credit institution
incorporated under the laws of Switzerland, acting through its London branch
whose registered office is at One Cabot Square, London E14 4QG, United Kingdom,
acting as European Collateral Agent in accordance with the provisions of the Credit
Agreement as defined in the Pledge Agreement entered into on the date hereof
between the Pledgor and the Beneficiary of the Pledge.

 

11

 

6.                                      European
Obligations

 

All the payment obligations payable by the Pledgor to the
Beneficiary of the Pledge described as the “European Obligations” in the Pledge
Agreement entered into on the date hereof between the Pledgor and the
Beneficiary of the Pledge.

 

 

on 17
December 2003,

in one (1)
original copy

 

 

	
  SENSUS METERING SYSTEMS (LUXCO 3) S.ÀR.L.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  represented
  by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

12

 

SCHEDULE 2

Attestation de constitution de gage

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

Sensus Metering Systems France Holdings, certifie et atteste, par la présente,
que les 37.000 actions détenues par Sensus
Metering Systems (LuxCo 3) S.ÀR.L. (le “Constituant”) désignées dans
la déclaration de constitution de gage de compte d’instruments financiers
signée le 17 décembre 2003 par le Constituant et inscrites au compte
d’instruments financiers visé à l’article L.431-4 du Code monétaire et
financier affecté en nantissement au profit du Créancier Gagiste (European Collateral Agent), en garantie
des obligations du Constituant décrites dans l’acte de nantissement de compte
d’instruments financiers intitulé “Pledge Agreement” signé en langue anglaise
en date de ce jour entre le Constituant et le Créancier Gagiste, ont été virées
au compte spécial de nantissement n° 1 bis ouvert au nom du Constituant.

 

Une copie certifiée conforme de ce compte spécial faisant apparaître ces
virements est annexée à la présente attestation de constitution de gage.

 

 

Le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  Sensus Metering Systems France Holdings

  	
   

  
	
   

  	
   

  
	
  Teneur de Compte

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature :

  	
   

  	
   

  	
   

  
				

 

 

P.J. Copie du compte d’actionnaire spécial

 

13

 

Translation for information purposes only

 

Pledge Certificate

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

 

Sensus Metering Systems France Holdings, hereby certifies and attests that the 37,000 shares held by Sensus
Metering Systems  (LuxCo 3) S.ÀR.L.
(the “Pledgor”), referred to in
the statement of pledge over the financial instruments account signed on 17
December 2003 by the Pledgor and registered in the financial instruments
account as defined by article L.431-4 of the French Financial and Monetary
Code is pledged in favour of the European Collateral Agent as security for the
Pledgor’s obligations described in the pledge agreement entered into on the
date hereof between the Pledgor and the European Collateral Agent, have been
registered in the special account n° 1 bis opened in the name of the Pledgor.

 

A copy
certified as a true copy of the share register evidencing this transfer is
attached to the present Pledge Certificate.

 

 

on 17
December 2003,

in one (1)
original copy

 

	
  Sensus Metering Systems France Holdings

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Account
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

14EXHIBIT 10.5

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  SOCIETE D’EXERCICE
  LIBERAL D’AVOCATS A FORME ANONYME

  

 

 

 

SENSUS METERING SYSTEMS FRANCE HOLDINGS

 

as
Pledgor

 

 

and

 

 

CREDIT SUISSE FIRST BOSTON

 

as
European Collateral Agent

 

 

relating
to shares in 

FINANCIERE POLLUX

 

 

 

PLEDGE
AGREEMENT

 

(ACTE DE
NANTISSEMENT DE COMPTE D’INSTRUMENTS FINANCIERS)

 

 

 

17
December 2003 

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definition and
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Perfection
  of Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Undertakings

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Dividends

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Remedies
  upon Default

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Costs and
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Waiver – Remedies
  cumulative

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Benefit
  of the Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Severability of Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 Déclaration de gage de
  compte d’instruments financiers

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2 Attestation de constitution
  de gage

  	
   

  

 

 

PLEDGE
AGREEMENT

 

(ACTE DE NANTISSEMENT DE COMPTE D’INSTRUMENTS
FINANCIERS)

 

BETWEEN:

 

(1)                                  SENSUS METERING SYSTEMS FRANCE HOLDINGS, a
company incorporated under the laws of France, whose registered office is at
17, rue du Colisée, 75008 Paris and registered with the Commercial and
Companies Registry of Paris  under number 451 149 637 (the “Pledgor”),

 

OF THE FIRST PART,

 

AND

 

(2)                                  CREDIT SUISSE FIRST BOSTON, a credit
institution incorporated under the laws of Switzerland acting through its
London branch whose registered office is at One Cabot Square, London E14 4QG,
United Kingdom, as collateral agent on the terms and conditions set out in the
Credit Agreement and the European Guarantee Agreement,

 

(the “European  Collateral Agent” which
expression shall include any person for the time being appointed as European
Collateral Agent or as an additional European Collateral Agent for the purpose
of, and in accordance with the Credit Agreement or the European Guarantee
Agreement),

 

OF THE SECOND PART.

 

WHEREAS:

 

(A)                              By the
Credit Agreement, the European Lenders have agreed to make available to the
European Borrower certain facilities on the terms referred to in the Credit
Agreement and for the purposes therein mentioned.

 

(B)                                Pursuant
to the European Guarantee Agreement, the Pledgor has granted a guarantee, on
the terms and subject to the limitations referred to in the European Guarantee
Agreement.

 

(C)                                As
security for the due performance of the European Obligations, the Pledgor has
agreed to create a pledge over the financial instruments account (compte
d’instruments financiers) opened in the books of the Company.

 

IT HAS BEEN AGREED AS FOLLOWS:

 

1.                                       DEFINITION AND INTERPRETATION

 

1.1                                 Unless
otherwise defined herein, capitalised terms in this Agreement shall have the
same meaning as set out in the Credit Agreement (including in the
preambule).  In this Agreement:

 

“Company”
means Financière Pollux, a French société
anonyme incorporated under the laws of France, whose registered
office is at 14, rue de Moscou, 75008 Paris,

 

1

 

registered
with the Commercial and Companies Registry of Paris under number
349 007 120. 

 

“Credit
Agreement” means the term, revolving, letter of credit and swingline
facility agreement entered into on 17 December 2003 by Sensus Metering
Systems Inc., Sensus Metering Systems (LuxCo 2) S.ÀR.L, Sensus Metering Systems
(Bermuda 2) Ltd, Credit Suisse First Boston as General Administrative Agent,
U.S. Collateral Agent, European Administrative Agent and European Collateral
Agent and the Lenders named therein. 

 

“European Guarantee Agreement” means the guarantee
agreement entered into on 17 December 2003 by Sensus Metering Systems
(LuxCo 2) S.ÀR.L., the Subsidiaries of Sensus Metering Systems (LuxCo 2)
S.ÀR.L. identified therein (including the Pledgor and the Company), Sensus
Metering Systems (Bermuda 3) Ltd, Sensus Metering Systems (LuxCo 1) S.ÀR.L. and
the European Collateral Agent.

 

“European Obligations” means all obligations
of the Pledgor toward the European Collateral Agent defined under the term
“European  Obligations” in the
European Guarantee Agreement pursuant to Section 4.18 (Parallel Debt) of the European Guarantee
Agreement.

 

1.2                                 Words denoting the
singular shall include the plural and vice versa, words denoting one gender
shall include the other genders and words denoting persons shall include firms
and corporations and vice versa.

 

1.3                                 References in this
Agreement to any statutory provision 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 re-enactment.

 

1.4                                 References in this
Agreement to any other agreement shall be construed as a reference to that
other agreement as the same may from time to time be amended, varied,
supplemented or novated.

 

1.5                                 References in this
Agreement to the European Collateral Agent and the Pledgor shall include their
successors and permitted assigns.

 

1.6                                 Clause headings used in
this Agreement are for convenience of reference only and shall not affect the
construction of this Agreement.

 

2.                                       THE PLEDGE

 

2.1                                 In order to secure the
full and punctual payment, performance and discharge of all of the European
Obligations, the Pledgor hereby grants a pledge over and pledges the financial
instruments account (compte d’instruments financiers) opened
and maintained by the Company in its books in the name of the Pledgor (the “Pledged
Account” or the “Collateral”),
in favour of the European Collateral Agent (the “Pledge”) in accordance with
article L.431-4 of the French Financial and Monetary Code (Code
monétaire et financier) (the “Code”).

 

2

 

2.2                                 The Pledged Account shall
be credited with 3,335,828 shares of a face value of EUR 15,24 held by the
Pledgor in the Company representing 99,99% of the issued capital of the Company
(the “Shares”)
and with any Pledgor’s rights, title, benefit and interest in all securities
derived from the Shares or created in substitution of the Shares or any
additional securities received in respect of the Shares by way of, without
limitation, share exchange, regrouping, division, free issue, subscription by
way of cash or otherwise, or by any other means, and, except as provided below
and under Clause 6.1 of this Agreement, with any dividends or proceeds
derived therefrom (the “Additional Assets”, and the Shares and the
Additional Assets shall be collectively referred to as the “Financial Instruments”).
Such Additional Assets shall automatically be included within the scope of the
Pledge. However, as provided under Clause 6.1 of this Agreement, the Pledged
Account shall not include the cash dividends, interest and other monetary
rights (fruits
et produits en toute monnaie) attached to the Shares (the “Cash
Proceeds”). 

 

2.3                                 Should the Pledgor
acquire new shares or be attributed new financial instruments in the Company
not included in the Pledge, the Pledgor shall promptly (i) cause the Company to
credit them to the Pledged Account and procure that a record be made on the
register of share transfers (registre des mouvements de titres) of the
Company, and (ii) execute and deliver to the European Collateral Agent a
“statement of pledge over a financial instruments account” (déclaration de constitution de gage), and
procure that the Company delivers to the European Collateral Agent a
“certificate of pledge” (attestation de
constitution de gage) relating to these shares or financial
instruments.

 

2.4                                 The European Collateral
Agent shall take all steps, at the request of the Pledgor, to partially release
the Pledge to ensure that directors of the Company own or are lent a number of
shares in the Company necessary to comply with applicable laws. A partial
release of the Pledge may be requested by the Pledgor only to the extent (and
over a number of shares in the Company) necessary under applicable laws.

 

3.                                       PERFECTION OF PLEDGE

 

3.1                                 The Pledgor will on the
date hereof execute a “statement of pledge over a financial instruments
account” (déclaration
de constitution de gage de
compte d’instruments financiers) relating to the Shares it holds in
the Company in the form set out in Schedule 1 and shall procure the
Company to deliver to the European Collateral Agent on the date hereof a
“pledge certificate” (attestation de constitution de gage) in
the form set out in Schedule 2, in compliance with article L.431-4 of
the Code.

 

3.2                                 The Pledgor procures that
the Shares is credited to the Pledged Account on the date hereof and that the
credit of the Shares to the Pledged Account is recorded in the register of
share transfers (registre des mouvements de titres) of the Company.

 

3.3                                 The Pledgor shall procure
that any Additional Assets shall be credited directly to the Pledged Account
immediately upon the Pledgor becoming the owner of the Additional Assets and
shall procure that the credit of such Additional Assets to the Pledged Account
is recorded in the register of share transfers (registre des mouvements de titres)
of the Company.

 

3

 

4.                                       REPRESENTATIONS AND WARRANTIES

 

The
Pledgor hereby represents and warrants upon execution of this Agreement and as
long as this Agreement and the Pledge shall remain in force, that:

 

4.1                                 it is a company duly
incorporated and validly existing in its jurisdiction of incorporation with the
power to own its assets and carry on its business in all respects as it is
being conducted;

 

4.2                                 it has the right and
power to enter into this Agreement and to grant the Pledge, and all approvals
and authorisations necessary for the Pledgor to enter into this Agreement have
been obtained and no further approvals or authorisations are necessary for the
Pledgor to perform all its obligations under this Agreement;

 

4.3                                 it is the owner of all of
the Financial Instruments which are free and clear of any lien, option, charge,
encumbrance or other third party rights except with respect to Liens created
under this Agreement or permitted under Section 6.02 of the Credit
Agreement;

 

4.4                                 the Financial Instruments
are fully paid up;

 

4.5                                 there exists no option to
buy or right granted by the Pledgor to any person over all or part of the
Financial Instruments;

 

4.6                                 the Company has given its
consent to the Pledge and has agreed to have the European Collateral Agent as
potential shareholder, pursuant to a decision of its board of directors (conseil
d’administration);

 

4.7                                 once the “statement of
pledge over a financial instruments account” (déclaration de constitution de gage)
referred to in Clause 3.1 has been signed by the Pledgor, a valid nantissement
(pledge) will be created in favour of the European Collateral Agent
over the Pledged Account to secure the European Obligations; and

 

4.8                                 the Pledgor shall pledge
at all times in favour of the European Collateral Agent 100% of its
shareholding in the Company..

 

5.                                       UNDERTAKINGS

 

The
Pledgor undertakes as long as this Agreement and the Pledge shall remain in
force, that:

 

5.1                                 it will not place or
permit any Financial Instruments to be placed in an account other than the
Pledged Account;

 

5.2                                 it shall not, without the
prior consent (not to be unreasonably withheld or delayed) of the European Collateral
Agent, (i) assign, transfer, exchange or otherwise dispose of any of the
Financial Instruments or (ii) incur or create or permit to subsist any third
party interests (including encumbrances, pre-emptive rights, options and
similar arrangements) with respect to any of the Financial Instruments. If such
consent is granted, the European Collateral Agent shall promptly sign all
documents and instruments necessary for the release of the security interest
created hereunder over

 

4

 

any Financial Instruments to be transferred or encumbered in
accordance with this Clause 5.2;

 

5.3                                 it shall take all the
reasonably necessary steps to defend its rights in respect of each of the
Financial Instruments against any claim or demand of any person in order to
safeguard the rights of the European Collateral Agent over the Pledged Account
and shall promptly keep the European Collateral Agent informed of any such
claim or demand;

 

5.4                                 it shall at all times, at
its expense, promptly approve, execute and deliver (or procure to be approved,
executed and delivered) all decisions, instruments and documents, and take (or
procure) all actions as may be reasonably necessary or appropriate, or as the
European Collateral Agent may reasonably require, to perfect or protect any
security interest granted or purported to be granted hereby or to enable the
European Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to the Pledged Account;

 

5.5                                 it shall not exercise the
voting rights attached to any of the Financial Instruments in a way which would
be likely to materially adversely affect any of the rights of the European
Collateral Agent under this Agreement or the value of the Pledge created over
the Pledged Account by virtue of this Agreement; and

 

5.6                                 it shall procure that the
Company shall provide to the European Collateral Agent, upon demand, any
information as the European Collateral Agent may reasonably require, reports
and records in respect of the Pledged Account, including a “certificate of
pledge” (attestation
de
constitution de gage) and the Pledgor shall sign all documents and
take all actions reasonably necessary in relation thereto.

 

6.                                       DIVIDENDS

 

6.1                                 Provided that no Event of
Default has occurred and is continuing, the Pledgor shall be entitled to
receive all Cash Proceeds distributed by the Company.

 

6.2                                 After an Event of Default
has occurred and as long as such Event of Default is continuing, the Pledgor
shall ensure that the Company pays all Cash Proceeds to the European Collateral
Agent. The European Collateral Agent shall retain those amount as part of its
own patrimony, as a gage-espèces,
and, upon enforcement of the Pledge in accordance with Clause 7 (Remedies upon Default) of this Agreement,
the European Collateral Agent shall apply such amount to the payment of the
European Obligations in accordance with the Credit Agreement.

 

7.                                       REMEDIES UPON DEFAULT

 

7.1                                 Upon the occurrence and during the continuation of an Event of
Default and if a notice of termination and acceleration of the Loans then
outstanding has been delivered by the General Administrative Agent in
accordance with Article VII (Events of
Default) of the Credit Agreement, the European Collateral Agent may
exercise, in addition to all other rights and remedies granted to it under any
other instrument or agreement securing, evidencing or relating to the European
Obligations, all rights and remedies available to

 

5

 

a
secured party under the laws of France in respect of the Pledged Account; in
particular, the European Collateral Agent may enforce the Pledge by requesting
either (i) the attribution by a court, in whole or in part, of the Financial
Instruments to the European Collateral Agent in accordance with the attribution
judiciaire procedure pursuant to article 2078 of the French
Civil Code or (ii) the public sale (vente publique) of the Financial
Instruments pursuant to article L.521-3 of the French Commercial Code, as
the European Collateral Agent may choose. 

 

7.2                                 Following the exercise of
any of the remedies set out in Clause 7.1, all sums (including without
limitation the Cash Proceeds) received from time to time by the European
Collateral Agent, in respect of any sale, collection, or other realisation of
all or any part of the Financial Instruments and the Cash Proceeds, shall be
applied by the European Collateral Agent to the payment of the European
Obligations in the order provided in the Credit Agreement.

 

8.                                       COSTS AND EXPENSES

 

The Pledgor undertakes, on demand of the European
Collateral Agent, to indemnify the European Collateral Agent against all
reasonable and documented costs and expenses (including legal fees) and all
charges, duties or taxes relating thereto, incurred by the European Collateral
Agent in relation to the execution and enforcement of this Agreement (except in
case of gross negligence, wilful misconduct or bad faith of the European
Collateral Agent) as provided in Section 4.06 of the European Guarantee
Agreement.

 

9.                                       TERMINATION

 

This
Agreement shall terminate only when the Pledgor has no further liability in
respect of the European Obligations and the European Guarantee Agreement has
terminated, notwithstanding the liquidation, bankruptcy, insolvency or reorganisation
of the Pledgor or any other fact or contingency whatsoever but subject to
applicable bankruptcy, insolvency, reorganisation or other similar laws.  Upon termination of this Agreement, the
interest of the European Collateral Agent over the Pledged Account shall
terminate. Only once termination has occurred, at the request of the Pledgor,
accompanied by such certificates, opinions, instruments and other documents as
the European Collateral Agent may reasonably require, the European Collateral Agent
shall, at the expense of the Pledgor, promptly execute any necessary instrument
acknowledging the satisfaction and discharge of this Agreement, and shall
promptly execute and deliver all such further instruments and documents, as may
be reasonably necessary or appropriate, including the delivery of a letter to
be given by the European Collateral Agent to the Pledgor for the purpose of mainlevée,
in respect of the Pledge.

 

6

 

10.                                 WAIVER – REMEDIES CUMULATIVE

 

10.1                           No failure to exercise
nor any delay in exercising on the part of the European Collateral Agent any
right or remedy under this Agreement shall operate as a waiver thereof nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise thereof or the exercise of any other right or remedy.

 

10.2                           The rights and remedies
provided for in this Agreement are cumulative and not exclusive of any rights
or remedies provided by law.

 

11.                                 BENEFIT OF THE PLEDGE

 

11.1                           The security constituted
by this Agreement shall not be considered as satisfied or discharged or
prejudiced by any intermediate payment, satisfaction or settlement of any part
of the European Obligations.

 

11.2                           The security created by
this Agreement shall be in addition to, and shall not in any way be prejudiced
or affected by, and shall be without prejudice to, any other security or
guarantee from time to time held by the European Collateral Agent in respect of
the European Obligations or any part thereof.

 

11.3                           This Agreement shall be
binding on and inure to the benefit of the parties hereto and their respective
permitted successors, assigns and transferees under the terms of the Credit
Agreement.

 

11.4                           The Pledgor may not
assign or transfer or purport to assign or transfer any or all of its rights
and/or obligations under this Agreement without the prior written consent of
the European Collateral Agent.

 

12.                                 AMENDMENTS

 

This
Agreement may not be amended, modified or waived except with the written
consent of the Pledgor and the European Collateral Agent.

 

13.                                 NOTICES

 

Any
communication or document to be made or delivered by one person to another
pursuant to this Agreement shall be made or delivered to that other person in
accordance with Section 9.01  (Notices) of the Credit Agreement.

 

14.                                 SEVERABILITY
OF PROVISIONS

 

If, at any
time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect in any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality,
validity or enforceability of such provision under the law of any other
jurisdiction will in any way be affected or impaired.

 

15.                                 GOVERNING
LAW

 

This Agreement
shall be governed by, and construed and enforced in accordance with, the laws
of France.

 

7

 

16.                                 JURISDICTION

 

The
parties hereto submit to the exclusive jurisdiction of the Tribunal de commerce de Paris
to settle any disputes which may arise out of or in connection with this
Agreement. This choice of jurisdiction is for the benefit of the European
Collateral Agent only. The European Collateral Agent shall also be entitled to
take action against the Pledgor in any other court of competent jurisdiction.

 

 

Signed on 17
December 2003,

in three (3)
original copies.

 

 

	
  SENSUS METERING SYSTEMS FRANCE HOLDINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Pledgor

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, acting

  through its London Branch

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The European
  Collateral Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
  Signature:
  

  	
   

  
							

 

8

 

SCHEDULE 1

Déclaration de gage de compte d’instruments financiers

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

 

1.                                      Constituant du Gage

 

Sensus Metering Systems France Holdings, une société de droit français dont le
siège social est situé à 17, rue du Colisée, 75008 Paris et immatriculée au
registre du commerce et des sociétés de Paris  sous le numéro
451 149 637, constitue en gage le compte d’instruments financiers
décrit ci-dessous selon les termes et conditions de l’acte de nantissement de
compte d’instruments financiers intitulé “Pledge Agreement” signé en date de ce jour
en langue anglaise entre le Constituant du Gage et le Créancier Gagiste.

 

2.                                      Société Emettrice

 

Financière Pollux,  une
société anonyme dont le siège social est situé 14, rue de Moscou, 75008 Paris
et immatriculée au registre du commerce et des sociétés de Paris sous le numéro
349 007 120.

 

3.                                      Eléments d’identification du compte spécial constitué en
gage prévu à l’article L.431-4 du code monétaire et financier

 

•                      Teneur de Compte : la Société Emettrice

 

•                      Numéro de compte : 92 bis

 

4.                                      Instruments financiers définis par l’article L.211-1
du Code monétaire et financier inscrit dans le compte spécial constitué en gage

 

•                      Nature :           actions
de valeur nominale de EUR 15,24  chacune

 

•                      Forme :                                     nominative

 

•                      Nombre :         3.335.828

 

5.                                      Créancier Gagiste

 

Credit Suisse First Boston, un établissement de crédit de droit suisse,
agissant par l’intermédiaire de sa succursale à Londres  dont le siège social est
situé One Cabot Square, London E14 4QG, United Kingdom, agissant en qualité
d’Agent des Sûretés (Collateral Agent),
en son nom propre au titre des stipulations de la section 4.18 (Parallel Debt) du European Guarantee Agreement, aux termes
du contrat de crédit en date de ce jour défini sous le terme “Credit Agreement” dans l’acte de
nantissement relatif à la présente déclaration de gage (ou tout autre European Collateral Agent qui lui serait
substitué).

 

9

 

6.                                      Obligations garanties

 

Toutes les obligations de paiement, quelles qu’elles soient, du Constituant
du Gage (Pledgor)
envers le Créancier Gagiste (Collateral Agent), décrites sous le terme
“European
Obligations” dans l’acte de nantissement de compte d’instruments
financiers intitulé “Pledge Agreement” signé en langue anglaise
en date de ce jour entre le Constituant du Gage et le Créancier Gagiste et
relatif à cette déclaration de gage.

 

 

le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  SENSUS METERING SYSTEMS FRANCE HOLDINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  représentée par :

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

10

 

Translation for information purposes only

 

Statement of Pledge over a
Financial Instruments Account

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

1.                                      Pledgor

 

Sensus Metering Systems France Holdings, a company
incorporated under the laws of France whose registered office is at 17, rue du
Colisée, 75008 Paris and registered with the Commercial and Companies Registry
of Paris under number 451 149 637, grants a pledge over the special
account described below under the terms and conditions of the Pledge Agreement
entered into on the date hereof between the Pledgor and the Beneficiary of the
Pledge.

 

2.                                      Issuing Company

 

Financière Pollux, a
French société
anonyme whose registered office is at 14, rue de Moscou, 75008 Paris
and registered with the Commercial and Companies Registry of Paris under number
349 007 120.

 

3.                                      Details concerning the special account required by
article L.431-4 of the French Financial and Monetary Code

 

•                      Account Holder: the Issuing Company

 

•                      Account number: 92 bis

 

4.                                      Financial Instruments defined by article L.211-1 of the French
Financial and Monetary Code registered in the special account pledged

 

•                      Nature:                                     shares with a par value of EUR 15,24 each

 

•                      Form:                                              registered shares

 

•                      Number:                               3,335,828

 

5.                                      Beneficiary of the Pledge

 

Credit Suisse First Boston, a credit
institution incorporated under the laws of Switzerland, acting through its
London branch whose registered office is at One Cabot Square, London E14 4QG,
United Kingdom, acting as European Collateral Agent in accordance with the
provisions of the Credit Agreement as defined in the Pledge Agreement entered
into on the date hereof between the Pledgor and the Beneficiary of the Pledge.

 

11

 

6.                                      European Obligations

 

All the
payment obligations payable by the Pledgor to the Beneficiary of the Pledge
described as the “European Obligations” in the Pledge Agreement entered into on
the date hereof between the Pledgor and the Beneficiary of the Pledge.

 

 

on 17
December 2003,

in one (1)
original copy

 

 

	
  SENSUS METERING SYSTEMS FRANCE HOLDINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  represented
  by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

12

 

SCHEDULE 2

Attestation de constitution de gage

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

Financière Pollux, certifie et atteste, par la présente, que les
3.335.828 actions détenues par Sensus Metering Systems France Holdings (le “Constituant”)
désignées dans la déclaration de constitution de gage de compte d’instruments
financiers signée le 17 décembre 2003 par le Constituant et inscrites au compte
d’instruments financiers visé à l’article L.431-4 du Code monétaire et
financier affecté en nantissement au profit du Créancier Gagiste (European Collateral Agent), en garantie
des obligations du Constituant décrites dans l’acte de nantissement de compte
d’instruments financiers intitulé “Pledge Agreement” signé en langue anglaise
en date de ce jour entre le Constituant et le Créancier Gagiste, ont été virées
au compte spécial de nantissement n° 92 bis ouvert au nom du Constituant.

 

Une copie certifiée conforme de ce compte spécial faisant apparaître ces
virements est annexée à la présente attestation de constitution de gage.

 

 

Le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  Financière Pollux

  	
   

  
	
   

  	
   

  
	
  Teneur de Compte

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature :

  	
   

  	
   

  
			

 

 

P.J. Copie du compte d’actionnaire spécial

 

13

 

Translation for information purposes only

 

Pledge Certificate

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

Financière Pollux, hereby
certifies and attests that the 3,335,828 shares held by Sensus Metering Systems
France Holdings (the “Pledgor”),
referred to in the statement of pledge over the financial instruments account
signed on 17 December 2003 by the Pledgor and registered in the financial
instruments account as defined by article L.431-4 of the French Financial
and Monetary Code is pledged in favour of the European Collateral Agent as
security for the Pledgor’s obligations described in the pledge agreement
entered into on the date hereof between the Pledgor and the European Collateral
Agent, have been registered in the special account n° 92 bis opened in the name of the Pledgor.

 

A copy
certified as a true copy of the share register evidencing this transfer is
attached to the present Pledge Certificate.

 

 

on 17
December 2003,

in one (1)
original copy

 

	
  Financière Pollux

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Account
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

14

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