Document:

exv4w110

EXHIBIT
4.110

English Translation of Original Agreement

 

ASSET PURCHASE AND SALE AGREEMENT

 

between

Telvent Outsourcing, S.A.

as the Seller

AND

Simosa I.T., S.A.

as the Buyer

Madrid, 1 February 2010

1

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	1

	 	CONTENTS, DEFINITIONS AND INTERPRETATION
	 	 	4	 
	 
	 	 	 	 	 	 
	2

	 	PURCHASE AND SALE OF THE BRANCH OF ACTIVITY TRANSFERRED
	 	 	4	 
	 
	 	 	 	 	 	 
	3

	 	ASSIGNMENT OF TRANSFERRED AGREEMENTS
	 	 	7	 
	 
	 	 	 	 	 	 
	4

	 	EXECUTION AND CLOSING
	 	 	8	 
	 
	 	 	 	 	 	 
	5

	 	PRICE AND MEANS OF PAYMENT
	 	 	9	 
	 
	 	 	 	 	 	 
	6

	 	PERSONNEL / EMPLOYEES
	 	 	10	 
	 
	 	 	 	 	 	 
	7

	 	SELLER’S STATEMENTS AND GUARANTIES
	 	 	12	 
	 
	 	 	 	 	 	 
	8

	 	BUYER’S STATEMENTS AND GUARANTIES
	 	 	17	 
	 
	 	 	 	 	 	 
	9

	 	LIABILITY AND OBLIGATION OF COMPENSATION
	 	 	17	 
	 
	 	 	 	 	 	 
	10

	 	CLAIMS PROCEDURE
	 	 	18	 
	 
	 	 	 	 	 	 
	11

	 	TERMINATION
	 	 	20	 
	 
	 	 	 	 	 	 
	12

	 	CONFIDENTIALITY
	 	 	20	 
	 
	 	 	 	 	 	 
	13

	 	COSTS, TAXES AND PAYMENTS
	 	 	21	 
	 
	 	 	 	 	 	 
	14

	 	GOVERNING LAW AND ARBITRATION
	 	 	22	 
	 
	 	 	 	 	 	 
	15

	 	NOTICES
	 	 	22	 
	 
	 	 	 	 	 	 
	16

	 	GENERAL PROVISIONS AND OTHER AGREEMENTS
	 	 	22	 

2

 

This Asset Purchase and Sale Agreement (hereinafter the “Agreement”) is entered into in Madrid
this first day of February 2010 (hereinafter the “Execution Date”) BY AND BETWEEN:

Telvent Outsourcing, S.A., an existing company validly incorporated in accordance with Spanish
Law, with registered address at Calle Tamarguillo 29 — Accesoria, Seville 41 — Seville and
duly registered at the Seville Companies Registry in Volume 2062, Folio 213, Sheet SE—20857,
holder of Tax Identification Number [***] (hereinafter “TO” or the “Seller”) and duly
represented by Mr. Raúl Infante and Mr. José Ignacio del Barrio Gómez;

AND:

Simosa I.T., an existing company validly incorporated in accordance with Spanish Law, with
registered address at Avenida de Buhaira 2, Seville, and duly registered at the Seville
Companies Registry in Volume 5,169, Folio 10, Sheet SE-84,614 holder of Tax Identification
Number [***] (hereinafter “Simosa” or the “Buyer”) and duly represented by Mr. Miguel Ángel
Jiménez-Velasco Mazarío and Mr. Luis Fernández Mateo.

(Hereinafter the Buyer and the Seller shall be individually referred to as the “Party” and
jointly as the “Parties”).

RECITALS

	 	(A)	 	WHEREAS, The Seller holds legal title to a business consisting of the
provision of IT, telecommunications and electronic services under any modality of
contracting (hereinafter the “Business”), composed of, among others, employees,
tangible and intangible assets and moveable property (including equipment, tools,
furniture, an inventory comprised of servers, computer and communications
applications and programs, Hardware, Software, Intellectual and Industrial Property
Rights and goodwill), (hereinafter the “Transferred Assets”), all of which
constitute the set of assets needed to operate the business and an independent
branch of activity belonging to the Seller as set forth in Article 7.1 of Spanish
Law on VAT (hereinafter the “Branch of Activity Transferred”). Certain assets owned
by the Seller as part of the Business shall remain under the Seller’s ownership
without being subject to the transfer to the Buyer (hereinafter the “Excluded
Assets”).
	 
	 	(B)	 	WHEREAS, the Branch of Activity Transferred shall likewise include all the
share capital of the company TELVENT IMPLANTACIÓN DE SISTEMAS, S.L., with Tax
Identification Number [***] registered address in Alcobendas in the province of
Madrid at Calle Valgrande 6 and duly registered at the Madrid Companies Registry in
Volume 26,144, Folio 168, Sheet M-471,222, Entry P, whose share capital amounting to
3,006 euros is represented by 1,000 shares having a par value of 3.006 euros each
and numbered sequentially from 1 to 1,000 both inclusive (hereinafter “TIS”). TIS is
a special purpose company whose sole activity consists of consulting, providing
business and strategic technical assistance and commercializing information
technology solutions and products, thus serving as a vehicle for the performance of
the activities carried out by TO in accordance with its corporate purpose and it
therefore forms part of the Business assigned to the Branch of Activity Transferred.
	 
	 	(C)	 	WHEREAS, the Buyer is a subsidiary of ABENGOA, S.A., which in turn holds an
indirect stake in the share capital of the Seller through its 40% shareholding in
its single shareholder, Telvent GIT, S.A.
	 
	 	(D)	 	WHEREAS, given that the Seller currently provides the aforementioned
services to ABENGOA, S.A., the Buyer and the Seller have held negotiations with a
view to carrying out the acquisition by Simosa of the Branch of Activity Transferred
(hereinafter the “Transaction”), so that the provision of intra-group services
performed by TO for ABENGOA, S.A. remains fully within its subsidiary Simosa once
the Transaction is performed.

3

 

	 	(E)	 	WHEREAS, the Parties have the intention that the effects of the assignment
and transfer of the Branch of Activity Transferred, and of the agreements and the
intellectual and industrial property transferred (hereinafter respectively the
“Transferred Agreements” and the “Intellectual and Industrial Property Transferred”)
(all of them, hereinafter the “Additional Agreements”) shall come into effect as of
the first day of January 2010 (hereinafter the “Effective Date”). Without prejudice
to the foregoing and at a time subsequent to the execution of this Agreement and, in
any event, not later than the date set forth in Clause 4.1 contained herein, the
Seller and the Buyer shall proceed to make this Purchase and Sale Agreement of the
Branch of Activity Transferred public (hereinafter the “Deed of Purchase”).

Pursuant to the foregoing, the Seller wishes to sell and the Buyer wishes to purchase the
Branch of Activity Transferred free of any type of charges and encumbrances pursuant to the
terms and conditions set forth herein and on the basis of the Statements and Guaranties.

TERMS AND CONDITIONS

1 CONTENTS, DEFINITIONS AND INTERPRETATION

1.1 Contents

This Agreement is comprised of the following Attachments and documents attached hereto,
all of which form an integral part of the Agreement:

1.2 Attachments

This Agreement includes the following Attachments:

Attachment 1 Definitions

Attachment 2 Elements Comprising the Branch of Activity Transferred1

Attachment 3 Transferred Agreements and Industrial and Intellectual Property Transferred*

Attachment 4 Excluded Assets and Associated Obligations*

Attachment 5 Accounts*

Attachment 6 Subrogated Employees*

Attachment 7 Disclosure Letter*

Attachment 8 Copy of TO’s Certificate*

On the Closing Date (as set forth in Clause 4.1), an updated version of Attachment 4
(Excluded Assets and Associated Obligations) and Attachment 5 (Accounts) shall be
provided.

1.3 Definitions

In addition to the terms defined in the body of this Agreement, Attachment 1 includes a
series of terms in capital letters that shall be construed in keeping with such
Attachment.

2 PURCHASE AND SALE OF THE BRANCH OF ACTIVITY TRANSFERRED

2.1 Purchase and Sale

Pursuant to the terms set forth herein, the Seller sells and transfers to the Buyer full
ownership over the Branch of Activity Transferred and, at the same time, the Buyer
purchases and acquires full ownership over such Branch of Activity Transferred free of
any kind of charges and encumbrances with effect from the Effective Date.

 

			
	*	 	Attachments 2 through 7 of this agreement
have not been filed with this agreement. Pursuant to Item601(b)(2) of
Regulation S-K, such documents are immaterial to an investment decision. A copy
of any of these omitted documents will be furnished to the Commission by
Telvent upon the Commission’s request.

4

 

2.2 Elements Comprising the Branch of Activity Transferred

The Branch of Activity Transferred includes the Transferred Assets set forth below (and
no others), all of which are described in further detail in Attachment 2:

	 	(i)	 	the equipment, furniture, tools, Hardware, Software, computer and
communications applications and programs, along with the elements comprising each
application, including: source code, executables, libraries, technical and user
documentation, test documentation, documentary archive of the applications,
configuration files and any others elements needed to manage, operate and maintain
the applications and other moveable property;
	 
	 	(ii)	 	the inventory of servers needed to operate the Branch of Activity
Transferred in the state in which it is found on the Effective Date (hereinafter the
“Inventories”);
	 
	 	(iii)	 	all administrative and official authorizations, licenses and permits
corresponding to the Branch of Activity Transferred (hereinafter the
“Authorizations”) that may be transferred including, among others, entries in
official registries and certificates issued by quasi-administrative bodies;
	 
	 	(iv)	 	the Transferred Agreements, along with all the Seller’s rights and claims
arising from the Transferred Agreements as regards Attachment 3;
	 
	 	(v)	 	the goodwill connected with the Branch of Activity Transferred consisting of
the customer portfolios and associated databases and subject to the consent that may
have to be obtained, the information, records and know-how described in the paragraph
(ix) hereunder, as well as the Buyer’s entitlement to continue operating the Branch
of Activity Transferred in its capacity as the Seller’s successor;
	 
	 	(vi)	 	the accounts receivable existing on the Effective Date corresponding to or
arising from the management of the ordinary course of the Branch of Activity
Transferred’s trade;
	 
	 	(vii)	 	the Subrogated Employees listed in Attachment 6;
	 
	 	(viii)	 	the Industrial and Intellectual Property Transferred shall include, among others,
the trademarks, brand names, patents, inventions, industrial designs, utility models,
Internet domain names and websites, as well as the data protection documents listed
in Attachment 3;
	 
	 	(ix)	 	any information, records and know-how connected in any way with:

	 	a)	 	the Branch of Activity Transferred;
	 
	 	b)	 	any products or services provided by the Branch of Activity
Transferred;
	 
	 	c)	 	any documents, designs, specifications, data manuals or instructions
referred to in paragraphs a) or b) above;
	 
	 	d)	 	the operations, management, administration or financial transactions of
the Branch of Activity Transferred;
	 
	 	e)	 	the sale or advertising (marketing) of any of the products manufactured
or sold or any services provided by the Branch of Activity Transferred, including
all information having to do with sales and marketing; and
	 
	 	f)	 	the Subrogated Employees listed in Attachment 6; and

	 	(x)	 	the shares representing all of TIS’s share capital; and

	 	(xi)	 	any other assets, goods or rights pertaining to the Seller concerning,
corresponding to and

5

 

	 	 	 	needed to operate the Branch of Activity Transferred and which have not been listed
above in this Clause 2.2.

As regards of any assets not listed above as Transferred Assets comprising the Branch of
Activity Transferred or that have not been mentioned in the Additional Agreements on the
Effective Date, but which are nonetheless linked to and form part of the Branch of
Activity Transferred and which do not constitute an Excluded Asset, it shall be
construed that such assets have been included in the Transaction and form part of the
Branch of Activity Transferred.

2.3 Excluded Assets and Associated Obligations

The elements set forth below shall be excluded from the purchase and sale governed by this
Agreement:

	 	(i)	 	any items listed in Attachment 4;
	 
	 	(ii)	 	any shares or stakes in companies owned by the Seller, apart
from the shares representing all of TIS’s share capital;
	 
	 	(iii)	 	any assets not having an accounting inventory on the Effective Date; and
	 
	 	(iv)	 	The Seller’s accounting books, archives and records corresponding to the
Excluded Assets and their Associated Obligations, along with the accounting books
and records of the Branch of Activity Transferred. In as much as the information
referred to in the latter cannot be easily separated from the Excluded Assets, they
shall be kept by the Seller when it is obliged to do so pursuant to prevailing
legislation. Nevertheless, the Seller hereby agrees that the Buyer shall be
entitled to inspect and make copies of such information, as long as it is limited
to the Branch of Activity Transferred and, in any event, in accordance with the
confidentiality obligations set forth in Clause 12 hereunder.

	2.4	 	Liabilities and Obligations Undertaken by the Buyer as of the Effective Date.

Pursuant to the terms set forth herein, the Buyer shall undertake, as of the Effective
Date, to pay, fulfill and satisfy any obligations corresponding to the Branch of Activity
Transferred (hereinafter the “Obligations Undertaken”). The Obligations Undertaken shall
include the following:

	 	(i)	 	all the existing liabilities and obligations connected with the Subrogated
Employees in accordance with the provisions set forth in Clause 6 hereunder, as well
as any concerning collective bargaining and, in more general terms, any labor-related,
tax and Social Security obligations as of the Effective Data, except any due prior to
the Effective Date;
	 
	 	(ii)	 	all the obligations and liabilities arising from the Transferred Agreements
and from the Industrial and Intellectual Property Transferred pursuant to the
provisions contained in Clause 3 hereunder, as long as they refer to or take effect
after such Effective Date, except any due prior to the Effective Date;
	 
	 	(iii)	 	all the liabilities and obligations arising from or concerning the
ownership of the Branch of Activity Transferred, including any tax obligations, as
long as they refer to or take effect after such Effective Date, except any due prior
to the Effective Date;
	 
	 	(iv)	 	all the liabilities and obligations concerning the ownership, possession,
operation and use of any moveable property such as, for example and not limited to,
those concerning the equipment, furniture, tools, computer and communications
programs, tools and applications, Hardware, Software and other moveable property, but
only in so far as they refer to or arise after the Effective Date, except any due
prior to the Effective Date; and

6

 

	 	(v)	 	all accounts payable concerning or incurred as a result of the operations of
the Branch of Activity Transferred and the Business existing on the Effective Date.

Without prejudice to the foregoing, any third-party liabilities transferred to the Buyer on
the Effective Date in accordance with this Clause, but which, by virtue of the provisions
set forth in governing law should be covered by the Seller up to the Execution Date or the
Closing Date, depending on the case in question, shall be paid, fulfilled and met by the
Seller up to such date, without prejudice to the Seller’s right of passing on to the Buyer
the total amount of such obligations and liabilities undertaken and satisfied on the
Buyer’s behalf pursuant to the provisions set forth in this Clause.

Notwithstanding the foregoing, the Seller shall be held liable for any steps it may have
carried out in this regard. Hence, the Buyer shall be held harmless from any Damages
that may arise as a result of the Seller’s actions in the management of such
obligations, which shall be the Seller’s sole liability, due to the provisions set forth
in the preceding paragraph.

3 ASSIGNMENT OF TRANSFERRED AGREEMENTS

	3.1	 	Unless set forth otherwise hereunder, the Seller shall assign and transfer to the Buyer all
its rights and obligations arising from the Transferred Agreements (hereinafter the
“Transferred Agreements”) listed in Attachment 3 with effect from the Effective Date.
Nonetheless, nothing set forth herein shall be effective to:

	 	(i)	 	require the Buyer to fulfill any due obligation, or any obligation that
should have been fulfilled before or on the Effective Date; or
	 
	 	(ii)	 	make the Buyer liable for any action, breach, failure or omission committed
by the Seller or on the Seller’s behalf regarding any of the Agreements Transferred
before or on the Effective Date.

	3.2	 	Should any party make any kind of payment after the Effective Date corresponding to any
amount due as a result of an Agreement Transferred — whose amount corresponds to the Seller
 — (hereinafter the “Debtor”), or should any party allege any kind of right of compensation
or file any claim as a result of any action or circumstance carried out or omitted by the
Seller on or before the Effective Date, the Seller shall, within ten (10) days of becoming
aware of such circumstance, give the Buyer written notice of:

	 	a)	 	its full agreement with the claim filed by the Debtor, in which case the
Seller shall duly credit the amount claimed within seven (7) days from such notice; or
	 
	 	b)	 	its disagreement with the claim filed by the Debtor, in which case the Seller
shall duly provide the Buyer with any justifying documents that would enable the Buyer
to contest the Debtor’s claim. Should the Buyer not be in agreement with such
documents, the Parties shall negotiate in good faith during a period of ten (10) days
counting from the date of notice in order to determine whether the Debtor’s claim is
legitimate and, should this be the case, to agree upon the amount to be paid by the
Seller to the Buyer. Should the Parties fail to reach an agreement during the period
of time set forth above, the dispute shall be resolved pursuant to the provisions
contained in Clause 14 hereunder.

The Seller failing to give notice in accordance with the terms set forth above shall be
construed as a total rejection of the Debtor’s claim and, in such a case, the provision set
forth in this paragraph b) shall apply.

	3.3	 	In the case of any Transferred Agreements that require a third-party’s consent or notice
for their assignment and such consent or notice has not come about on the Effective Date,
the assignment shall take place on the date which such consent or notice does actually comes
about. As long as such consent or notice, as appropriate, is not received the Parties hereby
agree that the Seller shall continue to be held liable before such third party by virtue of
the corresponding Transferred

7

 

	 	 	Agreements in its capacity as the Buyer’s agent and during such period:

	 	(i)	 	the Seller shall make all reasonable efforts with the Buyer’s collaboration
to attempt to achieve the Transferred Agreements’ assignment and transfer as soon as
possible;
	 
	 	(ii)	 	the Buyer shall fulfill all the obligations corresponding to Seller by
virtue of the Transferred Agreements; and
	 
	 	(iii)	 	the Seller shall give notice of and hand over to the Buyer any amounts
effectively received by virtue of the Transferred Agreements immediately after being
paid. Should the Seller be obliged to take action by virtue of any of the Transferred
Agreements during the interim period running up to the Closing Date (as set forth in
Clause 4.1), it shall refrain from proceeding with such actions without obtaining
prior specific written instructions from the Buyer in this regard.

	3.4	 	Should the relevant third-party consent not be obtained within two (2) months of the
Effective Date or should it be denied as regards any specific Transferred Agreement, the
Seller and the Buyer shall negotiate in good faith to reach a reasonable agreement that
would enable the Buyer to obtain the benefits arising from such Transferred Agreement.
Should the Parties be unable to reach an agreement concerning any specific Transferred
Agreements, the Buyer may require the Seller to give the counter-party notice of such
Transferred Agreement’s termination in due time and form. Should the Buyer require the
Seller to terminate a Transferred Agreement, the Buyer and the Seller shall equally cover
any claim, cost, demand, fine, liability or expense or any other liability whatsoever
arising from such termination or take on the costs of such Transferred Agreement.

4 EXECUTION AND CLOSING

	4.1	 	Execution Date, Effective Date and Closing Date.

This Agreement shall be executed on the Execution Date. However, the obligations set
forth herein shall take full effect as from the Effective Date.

Irrespective of the foregoing, the Parties hereby undertake to publicly record this
Agreement in a public deed before a Notary Public no later than February 28, 2010 (the
date on which this Agreement is recorded in a public deed before a Notary Public shall
hereinafter be referred to as the “Closing Date”).

4.2 Actions on the Execution Date to be Done by the Seller

	 	(i)	 	The Seller shall submit sufficient proof that it has given notice to or
requested the consent of each of the third parties that are a party to the Transferred
Agreements or, without being so, which must be informed for their prior authorization
for the purposes of the Transaction’s execution;
	 
	 	(ii)	 	The Seller shall submit sufficient proof that it has sent the mandatory
fifteen day’s (15) notice prior to the Closing Date to Subrogated Employees informing
them of their assignment to the Buyer and of the purchase and sale of the Branch of
Activity Transferred pursuant to the provisions set forth in Article 44 of the
Workers’ Statute (Estatuto de los Trabajadores); and
	 
	 	(iii)	 	The Seller shall provide the Buyer with a certificate of the resolutions
taken by the single shareholder of TO (Telvent GIT, S.A.) authorizing the purchase and
sale of the Branch of Activity Transferred in accordance with the model attached
hereto as Attachment 8 of this Agreement.

4.3 Execution Procedure

On the Execution Date, the following actions shall take place in the order set forth below:

8

 

	 	(i)	 	the Parties shall execute this Purchase and Sale Agreement on the Branch of
Activity, as well as on the assignment of the Additional Agreements;
	 
	 	(ii)	 	the Seller shall hand over to the Buyer any certificates and documents
regarding its liability pursuant to the provisions set forth in Clause 4.2 contained
herein;
	 
	 	(iii)	 	the Seller shall hand over the Branch of Activity Transferred to the
Buyer, transferring ownership and possession thereof with effect from the Effective
Date.

4.4 Actions after the Execution Date

Subsequent to the Execution Date, the following actions shall take place in the order set
forth below:

	 	(i)	 	The Buyer shall perform any actions that may be necessary in accordance with
the provisions set forth in Article 44 of the Workers’ Statute to transfer each of the
Subrogated Employees and proceed to register them with the Social Security in the name
of the Buyer. The Seller shall cooperate with the Buyer regarding any actions that may
be necessary for such purposes.

	 	(ii)	 	After the Effective Date, both Parties hereby undertake to cooperate
regarding the Buyer filing any Tax Returns concerning the period prior to the
Effective Date, the Execution Date or the Closing Date, as appropriate, pursuant to
the legislation that may apply.

	4.5	 	Actions on the Closing Date.

On the Closing Date, the following actions shall take place in the order set forth below.

	 	(i)	 	The Parties shall execute a public deed concerning this Purchase and Sale
Agreement as well as a public deed concerning the assignment of the Additional
Agreements before a Notary Public of Madrid, irrespective of the fact that the effects
thereof shall have taken effect as from the Effective Date.
	 
	 	(ii)	 	The Buyer shall pay the Seller, as set forth in Clause 5 hereunder.           

5 PRICE AND MEANS OF PAYMENT

5.1 Purchase Price

The Purchase Price for the Branch of Activity Transferred shall be FOUR MILLION EUROS
(€4,000,000).

Without prejudice to the foregoing, the Purchase Price shall be adjusted by the amount
of any Damages suffered between the Effective Date and the Closing Date under the terms
set forth for these purposes in Clauses 7, 9 and 10 of the this Agreement.

5.2 Payment of the Purchase Price

	5.2.1	 	The Purchase Price shall be paid by the Buyer prior to or on the Closing Date. Payment
shall be made by means of a banker’s draft in the name of the Seller (if payment is made on
the Closing Date) or through bank wire transfers (if payment is made prior to the Closing
Date), unless the Parties agree to any other means of payment.

5.3 Allocation of the Purchase Price

The Purchase Price shall be allocated to each of the Transferred Assets that comprise the
Branch of Activity which are detailed in Attachment 2 according to their net book value
appraised in accordance with the Balance Sheet at Year-End, including goodwill, whose
value shall be set by the difference between the net book value of the rest of the
Transferred Assets and the purchase price agreed upon. For the purposes of appraisal, the
Seller hereby states that the Transferred Assets’ book value corresponds with the real
value of each one of them, without it being necessary to declare any implicit capital
gain on the basis of each one of them.

9

 

6 PERSONNEL / EMPLOYEES

6.1 Assignment of Employees Assigned to the Branch of Activity Transferred.

Without prejudice to the provisions set forth in Article 44 of the Workers’ Statute, the
Buyer shall, with effect from the Effective Date, be subrogated to all the Seller’s rights
and obligations arising from the employment contracts, industrial relations and Collective
Bargaining Agreements of the employees assigned to the Branch of Activity Transferred. Such
employees are listed in Attachment 6, which includes their name, type of contract,
seniority, annual salary broken down by items, professional category, collective bargaining
agreement that applies and others rights (hereinafter the
“Subrogated Employees”).
Nonetheless, nothing set forth herein may serve to transfer to the Buyer or may be
construed as the Buyer’s acceptance of any liability, debt or other obligation of the
Seller arising from any action or omission that may have taken place on or before the
Effective Date as regards the Subrogated Employees. The Seller shall indemnify and hold the
Buyer harmless from any costs, claims, expenses, actions, proceedings, damages or any other
liabilities of any kind whatsoever that the Buyer may suffer or be obliged to incur due to:

	 	(i)	 	the Seller’s breach of any obligations corresponding to it in accordance
with the Workers’ Statute;

	 	(ii)	 	any claim filed for or on behalf of any of the Subrogated Employees arising
or resulting from their employment or the termination thereof prior to the Effective
Date or on such date;

	 	(iii)	 	any claim filed by any trade union, workers’ representative or group of
employees or their representatives as regards any of the Subrogated Employees
resulting or arising from any omission by the Seller prior to the Effective Date or on
such date pursuant to its legal obligations; and

	 	(iv)	 	any claim filed by any Subrogated Employee concerning the determination by
the Buyer of his/her working status after the Effective Date should such claim be
accepted and the Subrogated Employee in question shall be considered as a permanent
employee of the Buyer and not as a temporary employee.

The Seller shall transfer to the Buyer all the information on the Subrogated Employees
after the Effective Date and shall no longer be held liable for holding, processing and
being responsible for such information, tasks which the Buyer shall assume. Without
prejudice to the general nature of any provisions set forth in other parts of this
Agreement, the Buyer shall indemnify the Seller for any loss or damages the Seller may
suffer as a result of the Buyer’s breach of any regulations regarding the protection of the
Subrogated Employees’ personal data after the Effective Date.

Without prejudice to the foregoing, any third-party liabilities transferred to the Buyer on
the Effective Date in accordance with this Clause, but which, by virtue of the provisions
set forth Article 44 of the Workers’ Statute should be covered by the Seller up to the
Execution Date or the Closing Date, depending on the case in question, shall be paid,
fulfilled and met by the Seller up to such date, without prejudice to the Seller’s right of
passing on to the Buyer the total amount of such obligations and liabilities undertaken and
satisfied on the Buyer’s behalf pursuant to the provisions set forth in this Clause.

Notwithstanding the foregoing, the Seller shall be held liable for any steps it may have
carried out in this regard. Hence, the Buyer shall be held harmless from any Damages that
may arise as a result of the Seller’s actions in the management of such obligations, which
shall be the Seller’s sole liability, due to the provisions set forth in the preceding
paragraph.

6.2 Registration Obligations

The Seller and the Buyer shall collaborate so that the Social Security records
corresponding to

10

 

each of the Subrogated Employees are modified on the Closing Date and in any event no later
than the first Business Day following the Closing Date, so that they are duly registered
with the Buyer’s contribution code.

6.3 Obligations Due, Pro-rata and Reimbursement

	6.3.1	 	Any wages, salaries and Social Security obligations arising from the different employment
relationships established with the Subrogated Employees, in particular any contributions due
to the Social Security, up to the Effective Date shall be incurred by the Seller. Such
obligations shall be incurred by the Buyer as of the Effective Date.

	6.3.2	 	Should any amounts have been accrued (which nonetheless have become due) in favor of the
Subrogated Employees for salaries, bonuses or vacations and any other rights and supplements
that may have been due to the Subrogated Employees up to the Effective Date (inclusive), the
Buyer shall pay such amounts on their due date and shall proceed to require the Seller for the
proportional reimbursement thereof for any part corresponding to the period prior to the
Effective Date. The Seller shall then proceed to reimburse such amount within ten (10) days
from the date on which it receives the relevant invoice issued by the Buyer. The foregoing
shall not apply to any entitlement to compensation for dismissal or similar of the Subrogated
Employees should their working relationship be terminated by the Buyer after the Closing Date.
In such cases, the Buyer shall be obliged to make any payments in full.

	6.3.3	 	Similarly, as regards any payments to the Social Security and given that the Subrogated
Employees shall not be registered at the Social Security until the Closing Date in the way set
forth in the Clause 6.2 above, the Buyer shall reimburse the Seller for any amounts in excess
paid by the Seller corresponding to the period after the Effective Date. The Buyer shall then
proceed to reimburse such amount within ten (10) days from the date on which it receives the
relevant invoice issued by the Seller.

11

 

7 SELLER’S STATEMENTS AND GUARANTIES

Subject to the terms and conditions contained herein and, more specifically, those set
forth in Clause 9, the Seller hereby makes the following Statements and Guaranties
(hereinafter the “Statements and Guaranties”) to the Buyer with effect from the Effective
Date. The Seller hereby states and guaranties that each of the Statements and Guaranties
set forth in this Clause 7 is true, accurate and not susceptible of leading to error,
apart from the disclosures contained in Attachment 7 (hereinafter the “Disclosure
Letter”).

7.1 Legal Capacity and Legal Personality of the Seller

	 	7.1.1.	 	The Seller is an existing company duly incorporated in accordance with Spanish Law
and has the necessary legal capacity to hold legal title to the Transferred Assets that
comprise the Branch of Activity Transferred and to operate its Business in the way it
has been doing in the past.
	 
	 	7.1.2.	 	The Seller is the sole legitimate owner of the Transferred Assets and holds full
powers to sell and transfer the Transferred Assets to the Buyer.
	 
	 	7.1.3.	 	The Seller has obtained and duly observed all the corporate resolutions,
authorizations, procedures and requirements necessary to enter into this Agreement, so
that this Agreement is executed in keeping with all the requirements that apply to give
rise to the Seller’s legitimate, valid and binding obligations pursuant to all the
terms and conditions contained herein.
	 
	 	7.1.4.	 	The Seller is not subject to any kind of legal constraint that could impede this
Agreement’s execution and performance. The Seller does not require any kind of
authorization, approval, license, permit, registration, declaration or exemption by any
government, public body or public authority regarding the execution and performance
this Agreement apart from what has been set forth herein.

7.2 Transferred Assets

	 	7.2.1.	 	The Seller holds valid legal title susceptible to transfer over the Transferred
Assets, which are free from any charges and encumbrances, prohibitions of availability,
lessees, occupants and third-party rights of any kind whatsoever.
	 
	 	7.2.2.	 	Any Transferred Assets susceptible to registration are duly registered in the
Seller’s name at the relevant public registries.
	 
	 	7.2.3.	 	The Transferred Assets include all the moveable property that have been used to
operate the Business in the way it has been operated up to the Effective Date
including, but not limited to, the equipment, furniture, tools, computer and
communication applications and programs, Hardware, Software and other moveable
property. The Transferred Assets are in good working order and well maintained, and
their use is covered by the corresponding authorizations and licenses where necessary
in accordance with Spanish Law.

7.3 Litigation

There are no legal, administrative, mediation or arbitration proceedings regarding either
the Transferred Assets or the Business. The Seller has no knowledge of any existing fact or
circumstance that, to the best of its knowledge or understanding, could give rise to any
proceedings. There are no court rulings or decisions pending notice to the Seller that
affect or may affect the Transferred Assets or the Business, and the Seller has not made any
undertakings arising from any legal proceedings in favor of any court, government agency or
regulatory agency, or in favor of an third party, that may affect the Business or the
Transferred Assets.

12

 

7.4 Licenses and Authorizations

The Seller holds all the administrative permits, licenses, concessions, records and
authorizations needed to use the Transferred Assets and to operate the Business pursuant to
the prevailing legislation that applies. Such administrative permits, licenses, concessions,
records and authorizations are valid and in effect.

7.5 Subrogated Employees

	 	7.5.1.	 	Attachment 6 contains a list of the Subrogated Employees, indicating in each case
their professional category, type of employment contract, seniority and all
compensation items, along with the collective bargaining agreement that applies. The
Seller shall cover any costs concerning any employee that may file a claim against
being transferred to the Buyer as a result of the Transaction that is the subject of
this Agreement.
	 
	 	7.5.2.	 	The Seller is up to date with the payment of its Social Security obligations and the
payment of any kind of remuneration or compensation due to the Subrogated Employees. It
has likewise fulfilled all the provisions contained in the employment contracts and in
all the employment legislation and regulations that may apply, including legislation
and regulations on the prevention of occupational hazards and on occupational health
and safety.
	 
	 	7.5.3.	 	The Seller has not undertaken any kind of obligation as regards payments or
compensation in the event of the dismissal, removal from office, retirement, incapacity
or death of the Subrogated Employees, or as regards their assignment to the Buyer
pursuant to the provisions contained in Article 44 of the Workers’ Statute, apart from
any obligations imposed by mandatory regulations, nor has it undertaken any kind of
obligation as regards pensions, life insurance, medical insurance or any other kind of
social benefits in their favor.
	 
	 	7.5.4.	 	The seller has fulfilled and is currently fulfilling all aspects of the collective
bargaining agreements that apply.
	 
	 	7.5.5.	 	The Seller has not initiated any negotiations on salary increases during the current
year. During the last three (3) years, the Seller has not been affected by any strikes,
interruptions of working activity or any other kind of industrial relations conflict,
nor has it been given notice of any strike or industrial relations conflict that may
affect the Subrogated Employees, the Transferred Assets or the Business.
	 
	 	7.5.6.	 	There are no labor proceedings or claims or of any other nature, nor are there any
labor claims pending against the Seller or any events or circumstances that, to the
Seller’s best knowledge, could give rise to any kind of labor dispute, proceedings or
claim as regards the Subrogated Employees. The Seller has not undergone any labor
audits or inspections by the Labor Inspectorate over the last five years, nor is it
currently undergoing an audit or inspection by the Labor Inspectorate.
	 
	 	7.5.7.	 	The Seller has not made any employment or work offers in the Business which are
currently in effect and whose acceptance is still pending or any that have been
accepted without the job or work in question having yet to commence.
	 
	 	7.5.8.	 	None of the Subrogated Employees has resigned, applied for the indemnified
termination of their employment contract or been dismissed and, to the best of its
knowledge and understanding, no Subrogated Employee is specifically entitled to resign
or likely to be dismissed as a result of the Parties entering into this Agreement.
	 
	 	7.5.9.	 	The Seller has complied with and continues to comply with all aspects of prevailing
legislation and regulations on the processing of personal data as regards the
Subrogated Employees and other people whose personal data is subject to processing for
the

13

 

	 	 	 	purposes of the Business, and the Seller does not have any knowledge about any
pending or suspected claims in this regard.

7.6 Taxes

	 	7.6.1.	 	The Seller has duly filed all Tax Returns it is obliged or has been obliged to file
pursuant to the legislation and regulations that apply and it keeps a copy of all the
Tax Returns filed with the relevant registration stamp, along with the originals of all
the supporting documents and books required by the tax legislation and regulations that
were in force at any time corresponding to the tax years still open to inspection.
	 
	 	7.6.2.	 	All the Tax Returns filed by the Seller are truthful, accurate and complete both from
a formal as well as from a material standpoint concerning compliance with the conditions
required by the tax legislation and regulations that apply in order to determine its
taxable profits or losses, as well as any tax credit, exemption or similar benefit that
may apply or may be reimbursed. The Seller has applied tax regulations correctly as
regards the attribution, allocation and classification of the income and expenses
imputable to the Branch of Activity Transferred.
	 
	 	7.6.3.	 	The Seller has paid or made the relevant provision for any obligations and liabilities
that may turn out to be due in accordance with the prevailing laws and legislation at
any time as regards tax years still open to inspection.
	 
	 	7.6.4.	 	The Seller has not applied for the deferral or the payment in installments of any
taxes.
	 
	 	7.6.5.	 	The Seller is not nor has it been involved in any dispute with the Tax Authorities
concerning matters regarding its tax liability or any possible tax liabilities, and no
appeals have been filed by the Seller that are still pending resolution concerning any
decisions made by the Tax Authorities.
	 
	 	7.6.6.	 	The Seller has not entered into or taken part in any project or agreement that could
be construed by the Tax Authorities as a breach of the regulations concerning transfer
prices in Spain.
	 
	 	7.6.7.	 	The Seller has not engaged in any transactions within the statute of limitations
period which would have required the consent or authorization of the Tax Authorities and
whose consent or authorization (as appropriate) has been withheld.
	 
	 	7.6.8.	 	The Seller had duly responded to any notices, requests or injunctions performed by the
Tax Authorities during all the tax years that are still open to inspection.

7.7 Accounts

	 	7.7.1.	 	The Accounts:

	 	(i)	 	have been drawn up in accordance with the Law and in keeping with the
Spanish General Chart of Accounts that applied in the period to which the
Accounts refer;
	 
	 	(ii)	 	correctly reflect TO’s asset and liabilities and offer a reliable and
accurate image of the situation of TO’s businesses on the Date of the Accounts,
as well as of TO’s profit and loss corresponding to period ending on the Date of
the Accounts;
	 
	 	(iii)	 	contain suitable provisions to cover any Taxes (including deferred
Taxes) as well as complete information thereof in their notes, along with TO’s
existing and quantified liabilities on the Date of the Accounts pursuant to the
Spanish accounting standards in force on such dates;
	 
	 	(iv)	 	are not affected by any unusual or extraordinary items that are not
expressly mentioned therein as such;

14

 

	 	(v)	 	have been properly filed in the form and within the deadlines in
accordance with prevailing legislation; and
	 
	 	(vi)	 	The Accounts have been drawn up coherently using the criteria applied
to draw up TO’s Accounts in each of the preceding three (3) tax years without
making any changes to any of the accounting standards used.

	 	7.7.2.	 	Since the Date of the Accounts, TO’s Business has continued reflect all its assets,
liabilities, income and expenses in its financial statements, accounting books and Tax
Returns in accordance with the accounting standards employed to draw up the Accounts
and it has carried out its activity within the ordinary course of trade without having
executed any unusual agreements or undertakings or deviated in any way from the
ordinary course of its activities.

7.8 Agreements

	 	7.8.1.	 	All the Transferred Agreements are valid, binding, in effect and fully susceptible of
being performed under their own terms and conditions, and none of them have been
amended or assigned.
	 
	 	7.8.2.	 	The Transferred Agreements: (a) have been and are being fully fulfilled by the Seller
in all their significant aspects; (b) except where expressly set forth in this
Agreement, do not contain any early termination or expiry clauses that would apply as a
result of this Agreement’s execution; (c) do not breach or infringe any provisions set
forth by the legislation or regulations that apply to them; and (d) have been entered
into during the ordinary course of the Business.
	 
	 	7.8.3.	 	The Seller has not breached any of the Transferred Agreements, nor has it been given
notice of any alleged breach of its obligations by the parties to such Transferred
Agreements and, to the Seller’s best knowledge and understanding, there is no
circumstance that could be alleged by the other parties as a breach of such Transferred
Agreements.
	 
	 	7.8.4.	 	No events or circumstances have come about that, to the Seller’s best knowledge and
understanding, could suppose or result in a breach or in the early termination of any
of the Seller’s obligations arising from any agreements the Seller has entered into for
the purposes of its Business and its Assets by virtue of the appropriate notice and/or
the mere passage of time, or that may be used for the purpose of taking advantage of
them.

7.9 Insurance

All of the Transferred Assets are and have always been insured in accordance with normal
practice by the Seller against damages and third-party liability, and the Subrogated
Employees are covered by accident and life insurance policies. The Seller has no pending
claims under such insurance policies, which are valid and in effect on the Effective Date,
and the Seller has complied with all their terms and conditions.

7.10 Industrial and Intellectual Property

	 	7.10.1.	 	The Seller holds valid, firm and unrestricted title to the Industrial and
Intellectual Property Rights, which are free from any kind of charges, encumbrances or
any other rights in favor of third parties.
	 
	 	7.10.2.	 	The Industrial and Intellectual Property Rights set forth herein enable the Business
to be properly operated in the manner in which it has been operated up to the Effective
Date.
	 
	 	7.10.3.	 	To the Seller’s best knowledge and understanding, neither TO’s administrators nor
its executives or employees are direct or indirect holders of any industrial or
intellectual property rights, nor have they applied for the registration of such rights
or are entitled to

15

 

	 	 	 	hold such rights in any country over any elements that: (a) are entirely or partially
identical or similar to any elements protected by TO’s Industrial and Intellectual
Property Rights; (b) could give rise to confusion or be associated with TO, its
products or its activities; or (c) could in any other way hinder or restrict TO from
freely carrying out its activities in any country.
	 
	 	7.10.4.	 	The Industrial and Intellectual Property Rights have not been breached nor do they
breach any intellectual and industrial property rights belonging to third parties in
Spain or in any other country, or any other kind of rights similar to intellectual and
industrial property rights that are held by any individual or legal person.

7.11 Information Technology Systems

	 	7.11.1.	 	The normal continuation of the Business after the Year-End such as it was carried
out up to Effective Date did not require any additional Information Technology — apart
from some possible new versions or more advanced developments of the information
technology already employed — as regards the elements enumerated in Attachment 2.
	 
	 	7.11.2.	 	The information technologies used by TO are appropriate for its operating and
business needs. Suitable procedures have been implemented to make backup copies, which
are currently being followed.
	 
	 	7.11.3.	 	To the Seller’s best knowledge and understanding, there were no causes for the
termination of any of the agreements, licenses or leases regarding the Information
Technology used by TO in the Business on the Effective Date.
	 
	 	7.11.4.	 	TO is the owner or the licensee of the Industrial and Intellectual Property Rights
needed to operate the Information Technology System and the websites.
	 
	 	7.11.5.	 	TO is equipped with procedures whose aim is to prevent unauthorized access to and
the introduction of viruses into the Information Technology System. TO performs backups
of Software and significant data at least once a month and stores such copies for the
Business both on-site and outside its premises. The backup copies are stored in a
secure site which guaranties total data recovery.
	 
	 	7.11.6.	 	Should the people responsible for performing maintenance or support services for the
information technology owned by TO cease to work or be unable to provide such services,
TO holds all the necessary rights, information and capacity to continue maintaining and
providing support to the Information Technology System or to contract a third party to
carry out such tasks.

7.12 Data Protection

	 	7.12.1.	 	TO does hereby state that it fully complies with all the obligations set forth in
Organic Law 15/1999 of December 13 on the Protection of Personal Data (hereinafter the
“LOPD”, its Spanish abbreviation) and other complementary regulations that develop it
regarding the processing of personal data, and especially with Royal Decree 1720/2007
of 21 of December approving the Regulation that develops the LOPD.
	 
	 	7.12.2.	 	TO does hereby state and guaranty that it is not involved in any penalty
proceedings, nor has it been served notice of any such proceedings by the Spanish Data
Protection Agency (Agencia Española de Protección de Datos) or by similar regional
agencies and that it has not undergone any inspections conducted by such Agency or
similar regional agencies.

7.13 The Environment

The Seller has not performed or omitted any action that breaches any kind of
Environmental Legislation, nor has it been served notice of any in accordance with such
legislation requiring it to carry out or omit any action.

16

 

7.14 Sole Guaranties in Accordance with this Clause’s Contents; Lack of any Other Liability

Solely the Statements and Guaranties expressly contained in this Clause 7 shall be deemed
as guaranties granted by the Seller. Any other documents or information provided expressly
or implicitly by the Seller to the Buyer shall not be construed as guaranties for the
purposes set forth in this Agreement.

The Seller’s liability as regards carrying out the Business and/or the Branch of Activity
Transferred up to the Closing shall be limited to the Statements and Guaranties set forth
above. Consequently, except for what has been expressly set forth in the Statements and
Guaranties above as regards the Business and/or the Branch of Activity Transferred and
pursuant to the provisions set forth in Clause 9 hereunder, the Buyer shall not be entitled
to claim from the Seller in connection with any other matters, disputes, claims, losses,
proceedings, liabilities or any other issues under this Agreement and shall hold the Seller
harmless against such matters, disputes, losses, liabilities, third-party claims and
proceedings, or from any other issues.

8 BUYER’S STATEMENTS AND GUARANTIES

Subject to the terms and conditions set forth herein and more particularly to those set
forth in Clause 9, the Buyer hereby states to the Seller that it has the necessary legal
capacity to purchase the Branch of Activity Transferred, acquire title over the same,
manage it such as it has been managed up to the Effective Date, and enter into this
Agreement and carry out the legal transactions set forth herein.

9 LIABILITY AND OBLIGATION OF COMPENSATION

9.1 The Parties’ Obligation to Compensate

Subject to the exceptions and limitations set forth in this Clause 9, each of the Parties
shall be obliged to compensate and hold the other Party harmless against any loss,
liability, action, damages, cost or expenses, apart from any indirect damages, loss of
earnings and/or loss of profit, (hereinafter the “Damages”) that the latter may suffer as a
result of any error, substantial omission or inaccuracy, or any falsehood contained in the
corresponding Statements and Guaranties or from any other substantial breach of the
agreements or obligations set forth herein. More particularly, the Seller shall compensate
and maintain the Buyer completely harmless from any liabilities, obligations, suits or
claims incurred by the Seller before the Effective Date and concerning the operations of
the Branch of Activity Transferred.

9.2 Limitations to the Seller’s Liability

9.2.1 Duration

The Seller shall be exonerated from any liability arising from this Clause 9:

	 	(i)	 	in the event of any Claim for a breach of the Statements and Guaranties
concerning Taxes, Social Security, the environment, data protection, labor issue or
occupational hazard prevention once one (1) month has elapsed from the date on which
the legal statute of limitations that may apply expires; and
	 
	 	(ii)	 	in the event of any another Claim for a breach of the Statements and
Guaranties, once one (1) year from the Effective Date has elapsed;

except in the case of any Claims for a breach of the Statements and Guaranties of which the
Buyer may have given the Seller written notice before the relevant date in question. The
time limits set forth above shall take preference over and replace any other statute of
limitation limits or legal expiry limits.

9.2.2 Quantitative Limitation

The Seller’s total maximum liability arising from any Claims for a breach of the Statements
and

17

 

Guaranties shall not exceed the Purchase Price, apart from any liabilities arising from
Taxes, Social Security, labor-related or occupational hazard prevention matters, which
shall be unlimited. Consequently, the Seller shall not be obliged to compensate any Damages
once the total amount of the Claims for a breach of the Statements and Guaranties paid out
by the Seller to the Buyer has reached the Purchase Price, except when such Damages arise
from any of the matters without limitation set forth above.

9.2.3 Other Limitations

	 	(i)	 	The Seller shall not be held liable for any Claim for a breach of the
Statements and Guaranties in so far as (i) such claim makes reference to any of TO’s
liabilities or obligations that are specifically and fully provisioned for in the
Accounts and/or (ii) such claim makes reference to any Damages that are covered by
Insurance Policies and in as much as they have been effectively compensated. In this
regard, the Seller shall solely be held liable for the part of the Damages that cannot
be recovered by virtue of an Insurance Policy in the event of partial coverage.

	 	(ii)	 	The Seller shall not be held liable for any Damages in so far as such
damages may have already been subject to compensation in favor of the Buyer under any
other Claim for a breach of the Statements and Guaranties. This Clause 9.2.3(ii) shall
be construed in the sense that the Seller shall solely be obliged to compensate the
Buyer once for the same Damages.

9.3 Exclusive Procedure to Demand Compensation

The Parties hereby agree that, as of the Effective Date, the sole remedy against any
Damages caused to the Buyer shall be represented by the obligations to compensate
undertaken by the Seller in accordance with this Agreement. Consequently, the Buyer shall
expressly and irrevocably waive any action it may be entitled to in order to claim any
certain or contingent liability against the Seller, except as expressly set forth in
Clauses 7, 8 and 9 of this Agreement.

10 CLAIMS PROCEDURE

10.1 Direct Claims

Should either of the Parties (hereinafter the “Party Entitled to Compensation”) file a
claim against the other Party (hereinafter the “Party Obliged to Compensate”) in accordance
with the provisions set forth in Clause 9 of this Agreement, the Party Entitled to
Compensation shall duly give the Party Obliged to Compensate written notice the
circumstances subject to compensation (hereinafter the “Notice of Claim”) as soon as it may
be reasonably possible. The Notice of Claim shall contain a summary of the facts and
circumstances in so far as they may be known by the Party Entitled to Compensation, the
grounds underlying the claim and the amount claimed.

Within thirty (30) days of the Notice of Claim, the Parties shall negotiate in good faith
in order to determine whether the claim may be compensated under this Agreement and, if
appropriate, to reach an agreement concerning the procedure and the amount of such
compensation. Should the Parties fail to reach an agreement during the period of time set
forth above, the dispute shall be resolved pursuant to the provisions contained in Clause
14 hereunder.

10.2 Third-Party Claims

The Party Entitled to Compensation shall immediately give notice of any notice, claim or
the initiation of any proceedings by a third-party that could lead to the payment of
compensation in accordance with this Agreement (hereinafter the
“Proceedings”) within ten
days (10) of becoming aware of the existence thereof, or should the deadline for contesting
such Proceedings be shorter, it shall give the Party Obliged to Compensate notice of the
Claim’s existence before half the deadline granted in such Proceedings to contest the claim
has elapsed (hereinafter the “Notice of Third-Party Claim”). The Notice of Third-Party
Claim, in so far as it is known by the

18

 

Party Entitled to Compensation, shall contain a description of the Proceeding’s nature, the
amount of compensation sought and the reasons grounding the claim, and it shall include a
copy of any relevant documents provided by the third party involved in the Proceedings. The
failure to serve Notice of Claim within the deadline and in the way set forth herein shall
only exonerate the Party Obliged to Compensate from any liability for such claim if such
Party is able to prove that the failure to serve notice of claim has negatively and
substantially affected its defense of the claim or that it has in any other way been
substantially prejudiced by it.

	10.2.1	 	Once Notice of Claim has been served, the following rules shall apply:

	 	(i)	 	Except in the circumstance set forth in paragraph (ii) below, the Party
Obliged to Compensate shall be responsible for the defense of the Proceedings on
behalf of the Party Entitled to Compensation and shall use attorneys and other
advisers that are reasonably acceptable to the Party Entitled to Compensation. The
Party Obliged to Compensate shall give the Party Entitled to Compensation notice of
such choice within the three (3) days subsequent to receiving Notice of Claim. For the
purposes of preparing the defense, the Party Obliged to Compensate shall be given
reasonable access to the archives of Party Entitled to Compensation and the latter
shall grant as soon as possible any general powers of attorney for the purposes of
litigation that the Party Obliged to Compensate may reasonably request.
	 
	 	(ii)	 	The Party Obliged to Compensate shall not take on the defense against the
Proceedings when it is also a Party thereto and the Party Entitled to Compensation
considers that the joint representation of both Parties could lead to a conflict of
interests after having given written notice thereof to the Party Obliged to
Compensate.
	 
	 	(iii)	 	In any event, it shall be definitively construed that the Party Obliged to
Compensate shall be liable for and shall compensate the Party Entitled to Compensation
for any expenses incurred in such defense by the Party Entitled to Compensation,
including but not limited to expenses for legal advisors, research or any other kind
of advisors.
	 
	 	(iv)	 	Once the Party Obliged to Compensate has taken on the defense of the
Proceedings, the Party Entitled to Compensation shall make all reasonable efforts
needed to place at the disposal of the Party Obliged to Compensate any employees whose
cooperation, testimony or presence are reasonably necessary to assist the Party
Obliged to Compensate in assessing and contesting the claim.
	 
	 	(v)	 	Once Party Obliged to Compensate has taken on the defense of the
Proceedings: (i) it shall be definitively construed for the purposes of this Agreement
that the consequences of such Proceedings shall be subject to compensation; and (ii)
the Party Obliged to Compensate may not make any commitment or reach any agreement of
any kind without the prior consent of the Party Entitled to Compensation and such
consent may not be withheld without good reason.
	 
	 	(vi)	 	Should the Party Obliged to Compensate be unable to take on the defense in
the circumstance set forth in the paragraph (ii) above, the Party Entitled to
Compensation may direct and control the defense in the way it may deem suitable for
the defense or its own interests and it may even reach any court or out-of-court
settlements regarding the Proceedings (as long as such agreement is in good faith and
does not involve a breach of obligation of the Party Entitled to Compensation to
mitigate the damages, as set forth in Clause 10.2.2 hereunder).

In such a case, the Party Entitled to Compensation shall duly keep the Party Obliged
to Compensate informed of the Proceedings and actions effectuated during the course
of the Proceedings and it shall give notice to the Party Obliged to Compensate of any
document, claim or argument the Party Entitled to Compensation may submit. The Party
Obliged to

19

 

Compensate shall be entitled to submit its comments on such documents, as well as to
take part in any meetings, hearings or negotiations concerning the Proceedings. In so
far as it may be possible, the Party Entitled to Compensation shall take such
comments into consideration. The attorney in charge of the Proceedings shall be
informed to provide a copy of all the correspondence and information concerning
Proceedings to both the Party Entitled to Compensation as well as to the Party
Obliged to Compensate.

11 TERMINATION

11.1 Termination

The Agreement may be terminated:

	 	(i)	 	by either the Buyer or the Seller should the other Party seriously and
substantially breach this Agreement and such breach has not or may not be put right by
the Party committing the breach; or

	 	(ii)	 	by the mutual written consent of the Seller and the Buyer.

11.2 Rights in the Event of Termination

In the event of this Agreement’s termination in accordance with the provisions set forth in
Clause 11.1 above, any other obligations of the Parties arising from this Agreement shall
be resolved without any liability before the other on the understanding, nonetheless, that
the Parties’ obligations set forth Clauses 12 (Confidentiality), 13 (Costs, Taxes and
Payments), 14 (Governing Law and Jurisdiction) and 15 (Notices) shall continue after such
termination. Notwithstanding the foregoing and should this Agreement be terminated as set
forth in Clause 11.1 above by either of the Parties due to a breach of this Agreement by
the other Party, the right of the Party terminating the Agreement to receive compensation
for damages from the Party committing the breach shall continue.

12 CONFIDENTIALITY

12.1 Provisions on Confidentiality

12.1.1 Announcements

The Parties shall refrain from directly making any kind of announcement, communication or
circular regarding this Agreement or do so through third parties without the other Party’s
or Parties prior consent (which may not be delayed or withheld without good cause), except
for any announcements aimed at the employees, customers, suppliers and agents of TO and/or
of the Buyer and/or of any company forming part of the Buyer’s Group in a way that the
Seller may reasonably authorize.

12.1.2 Confidentiality

Each Party shall keep any information received or obtained as a result of entering into or
fulfilling this agreement strictly confidential and shall likewise ensure that each member
of its Group does the same regarding:

	 	(i)	 	The Agreement’s provisions or purpose.

	 	(ii)	 	Negotiations concerning this Agreement or any of the documents referred to
herein.

12.1.3 Exemptions as Regards Confidentiality

Either of the Parties may proceed to disclose the information that in any other
circumstances shall be deemed confidential in accordance with the provisions set forth in
Clause 12.1.2 above in the event of and in so far as:

20

 

	 	(i)	 	Such disclosure is required by any relevant jurisdiction or for the purposes
of any legal proceedings;
	 
	 	(ii)	 	The disclosure is requested by any organization holding competence over the
securities market or by any regulatory authority or of a governmental nature to whose
jurisdiction either of the Parties is subject, irrespective of such body’s location and
whether or not the request for information is legally binding;
	 
	 	(iii)	 	The information is confidentially disclosed solely to such Party’s
employees, advisors professionals, auditors and banking institutions that need to know
the information due to their functions. The Parties shall be held liable for such third
parties complying with their confidentiality obligation under the same terms as those
set forth in this Clause 12;
	 
	 	(iv)	 	The Seller has given prior written authorization for such a disclosure (in
the event of a disclosure by the Buyer) or if the Buyer has given prior written
authorization for such disclosure (in the event of a disclosure by the Seller), as
appropriate;
	 
	 	(v)	 	The disclosure made by the Buyer is made to a member of its Group, on the
understanding, however, that the Buyer shall continue to be held fully liable before
the other Party despite such disclosure in accordance with the provisions contained in
this Clause 12; and
	 
	 	(vi)	 	The disclosure is necessary to allow such Party to exercise any of its
rights arising from this Agreement,

	 	 	as long as the information disclosed by virtue of paragraphs (i) or (ii) above is disclosed
after having given notice thereof to either the Seller or the Buyer, as appropriate, except
where such prior notice to the other Party is not authorized by the Law.
	 
	12.1.4	 	Duration
	 
	 	 	The limitations set forth in this Clause 12 shall continue to be in effect during a period
of two (2) years from the Closing Date.
	 
	13	 	COSTS, TAXES AND PAYMENTS
	 
	13.1	 	Except where set forth otherwise in this Agreement, the Parties shall equally share the costs
and expenses arising from drawing up, executing, subscribing and fulfilling the Agreement
(including, for these purposes, both Parties’ advisors).
	 
	 	 	Any expenses, costs and taxes corresponding to the purchase and sale transaction and/or to
recording the Agreement in a public deed as set forth herein shall be incurred by the
parties pursuant to the legislation that applies.
	 
	13.2	 	Any payments that may proceed by virtue of this Agreement shall be effectuated in full
without being subject to any withholdings or deductions, except as expressly set forth herein
or where required by the legislation that applies, in which case such withholdings or
deductions may not exceed the minimum amount that the Law requires should be withheld or
deducted.
	 
	 	 	Without prejudice to the foregoing, the Parties hereby agree that any amount owed by the
Buyer and/or the Seller by virtue of this Agreement may be offset with any other amount owed
by the Buyer and/or the Seller, as appropriate, due to any reason whatsoever, as long as the
conditions set forth in Article 1,196 of the Spanish Civil Code are met.
	 
	 	 	In the event of a failure to pay any amount required by virtue of this agreement on the due
date, such amount shall accrue interest at the rate of 5% per year calculated on a daily
basis for the period running from the due date of the payment in question up to the date
(inclusive) of its effective payment, including before and after any court ruling that may
be issued on such a matter.

21

 

	 	 	Unless stated otherwise, any payments that may proceed by virtue of this Agreement shall be
paid in Euros to the creditor and into the following accounts:
	 
	 	 	To the Buyer:
	 
	 	 	Banco Popular Español

Calle Alcalá 26, Madrid.

Current Account No. [***]
	 
	 	 	To the Seller:
	 
	 	 	Banco Sabadell
	 
	 	 	Príncipe of Vergara 125, 28002 Madrid

Current Account No. [***]

IBAN [***]
	 
	14	 	GOVERNING LAW AND ARBITRATION
	 
	14.1	 	Governing Law
	 
	 	 	This Agreement shall be governed by Spanish Law and shall be construed in accordance with
it, excluding any regional autonomous law (derecho foral) or legal norms of conflict.
	 
	14.2	 	Jurisdiction
	 
	 	 	The Parties hereby waive any other jurisdictional privileges they may enjoy and
expressly agree to submit any dispute or litigation that may arise regarding this
Agreement to the Judges and Courts of Madrid.
	 
	15	 	NOTICES
	 
	 	 	Any notices or other communications that may be required or allowed under this Agreement
shall be given in writing and shall be sent by registered mail or fax with
acknowledgement of receipt in all cases. Any notices served outside the normal working
hours of the addressee’s city shall be construed to have been served on the next
Business Day in such city.

	 	 	 	 	 
	 	 	Notices shall be served to the following addresses:
	 
	 

	 	To the Buyer’s attention:
	 	Avenida of Buhaira no. 2, 41018 Seville.
	 
	 

	 	 	 	To the Attention of: Mr. Luís Fernández Mateo.
	 
	 

	 	To the Seller’s attention:
	 	Calle Valgrande 6, 28108 Alcobendas (Madrid).
	 
	 

	 	 	 	To the Attention of: Mr. José Ignacio del Barrio.

	 	 	Notice of any changes of address shall be given by the Party in question in the manner set
forth above.
	 
	16	 	GENERAL PROVISIONS AND OTHER AGREEMENTS
	 
	16.1	 	Entire Agreement
	 
	 	 	This Agreement, along with all the documents referred to herein and/or signed by the
Parties from the execution of this Agreement up to Closing Date constitute the entire
agreement between the Parties and shall replace any other agreements, either verbal or
written, reached by the Parties concerning its purpose.
	 
	16.2	 	Waiver and Severability
	 
	 	 	The waiver of any of the provisions contained herein shall not be deemed to constitute
nor shall it constitute a waiver of any another provision contained herein, nor shall
it be taken to be a permanent waiver, unless it is set forth otherwise in writing.

22

 

	 	 	Should any of the clauses of this Agreement be ruled or turn out to be either partially
or fully invalid or null and void, the rest of the Agreement shall continue to be in
force. The Parties shall negotiate in good faith in order to replace the clause that is
invalid or null and void with a valid, legal and efficient clause that is as similar as
possible to the clause that is invalid or null and void.
	 
	16.3	 	Public Announcements
	 
	 	 	The Parties shall consult with each other regarding any public announcements concerning
this Agreement or the transactions connected with it, and they shall refrain from
disclosing any information in this regard without the other Party’s prior written
consent (which may not be withheld without good cause), except when such announcement
is required by law, including but not limited to any legislation on listed companies
that may apply.
	 
	16.4	 	Assignment
	 
	 	 	The Buyer may assign this Agreement and/or any rights and obligations arising from the
same in favor of any member of the Buyer’s Group (as long as the assignee subrogates
itself to all the Buyer’s rights and obligations arising from this Agreement before the
Seller) or assign the Buyer’s rights arising from this Agreement as a guaranty for any
financing granted to the Buyer or to any member of its Group.
	 
	 	 	Likewise, the Buyer may totally or partially assign the benefits arising from the
Statements and Guaranties granted by the Seller to any third parties that may fully or
partially acquire the Branch of Activity Transferred.
	 
	 	 	Except for the exemptions set forth in this Clause, neither this Agreement nor any of
the rights or obligations arising from the same may be assigned or transferred in any
other way without the other Party’s prior written consent. Any attempted assignment
effectuated in breach of this Clause shall not be effective.
	 
	16.5	 	Amendments
	 
	 	 	This Agreement may not be amended, supplemented or altered in any way without both
Parties written agreement.

IN WITNESS WHEREOF, the Parties have hereunto set their hand in the place and on the date
first mentioned above.

	 	 	 	 	 	 	 	 
	 	THE SELLER

	 	 	 	THE BUYER	 	 
	 	 
	 	 	 	 	 	 
	 	Telvent Outsourcing, S.A.,

	 	 	 	Simosa	 	 
	 
	 	 	 	 	 	 
	 	/s/ Raúl Agüera Infante

	 	 	 	/s/ Miguel Ángel Jiménez-Velasco Mazarío	 	 
	 	 

Mr. Raúl Agüera Infante

	 	 	 	 

Mr. Miguel Ángel Jiménez-Velasco Mazarío
	 	 
	 
	 	 	 	 	 	 
	 	/s/ José Ignacio del Barrio Gómez

	 	 	 	/s/ Luis Fernández Mateo	 	 
	 	 

Mr. José Ignacio del Barrio Gómez

	 	 	 	 

Mr. Luis Fernández Mateo
	 	 

23

 

Attachment 1 — Definitions

1. The following definitions shall apply for the purposes of this Agreement:

“Accounts” shall be construed as the Balance Sheet at Year-End of TO’s Branch of Activity
Transferred closed on December 31, 2009, which shall be attached hereto as Attachment 5 on the
Closing Date.

“Additional Agreements” shall be construed in keeping with the meaning given to it in Whereas
Clause D.

“Agreement” shall be construed as this document, along with its Attachments and any other
attached documents referring to it.

“Assets Transmit” shall be construed in keeping with the meaning given to it in Whereas Clause A.

“Associated Obligations” shall be construed as set forth in Clause 2.3. (i).

“Authorizations” shall be construed as set forth in Clause 2.2. (iii).

“Balance at Year-End” shall be construed as the balance sheet of TO’s Branch of Activity
Transferred closed on December 31, 2009, which shall be attached hereto as Attachment 5 on the
Closing Date.

“Branch of Activity Transferred” shall be construed as set forth in Whereas Clause A.

“Business Day” shall be construed to mean any day (except Saturdays and Sundays) on which
banks are normally open in the city of Madrid for ordinary transactions.

“Business” shall be construed as set forth in Whereas Clause A.

“Buyer” shall be construed as “Simosa”.

“Closing Date” shall be construed as set forth in Clause 4.1.

“Closing” shall be construed as set forth in Clause 4.

“Damages” shall be construed to mean any loss, liability, obligation, damages, cost, expense,
fine, or penalty, including reasonable court-related and out-of-court fees of attorneys and
procurators, as well as reasonable defense costs, reasonable research costs or reasonable costs
to contest claims, which may be deemed as emerging damages or as a loss of profits suffered by
the Seller arising from any error, falsehood or inaccuracy of the Statements and Guaranties,
from any Claim filed by a Third Party or from any breach by the Seller of the terms and
conditions contained herein.

“Date of the Accounts:” shall be construed as December 31, 2008.

“Date of the Balance Sheet at Year-End” shall be construed as December 31, 2009.

“Debtor” shall be construed as set forth in Clause 3.

“Deed of Purchase” shall be construed as set forth in Whereas Clause D.

“Direct Claims” shall be construed as set forth in Clause 10.1.

“Domain Names” shall be construed to mean the names of Internet domains owned by TO.

“Effective Date” shall be construed to have the meaning set forth in Whereas Clause E.

“Encumbrance” shall be construed to mean any kind of encumbrance including any claims,
obligations, mortgages, liens, charges, attachments, deposits, assignments as guaranties,
sale commitments, options, rights of first refusal, property rights, life interest estates or
any other entitlement of a nature similar to the above, as well as any temporary or
definitive attachments or any other third-party interests or entitlements, or any claim that
may result as a consequence of any of the above, along with any agreements or undertakings to
constitute any of the above.

“Excluded Assets” shall be construed in keeping with the meaning given to it in Clause 2.3. (i).

24

 

“Execution Date” shall be construed to mean the date that appears in this Agreement’s header.

“Group” shall be construed to mean the group of companies to which the Buyer or the Seller
respectively belong in the sense set forth in Article 42 of the Code of Commerce.

“Hardware” shall be construed to mean the set of computer components, computers and peripheral
devices used by TO in the ordinary course of its Business.

“Industrial and Intellectual Property Rights” shall be construed to mean any trademarks, brand
names, patents, inventions, industrial designs, utility models, as well as any know-how, trade
secrets, technical manuals and instructions, databases, Internet domain names, computer programs
or logical systems and any other information or knowledge owned in any country or jurisdiction.

“Industrial and Intellectual Property Transferred” shall be construed as set forth in Clause
2.2 (viii).

“Information Technology Systems” shall be construed to mean all the Hardware, Software and
telecommunications equipment used by TO for the Business’s day-to-day management.

“Information Technology” shall be construed to mean all the technologies that allow for the
transmission, storage and management of information in any format, which are owned by TO or
regarding which TO has duly obtained a license of use.

“Internet Websites” shall be construed to mean any Internet websites and pages owned by TO, or
under the control of and used by TO.

“Inventories” shall be construed as set forth in Clause 2.2. (ii).

“Law” shall be construed to mean the law that applies in Spain.

“Legislation Environmental” shall be construed to mean any legal provision or any prevailing
legislation or proposal thereof on this date in Spain or the European Union, including
directives, treaties, circulars, regulations, codes of conduct and notes of practice drawn up
under them or concerning the Environment or any substance that is hazardous to human health,
comfort and safety or the well-being of other living organisms.

“License” shall be construed to mean any national, regional and local permits, authorizations,
licenses, concessions, assessments and certificates of a regulatory nature or of any other needed
to manage the Business in the way it has been managed to date.

“Notice of Claim” shall be construed as set forth in Clause 10.1.

“Notice of Third-Party Claim” shall be construed as set forth in Clause 10.2.

“Obligations Undertaken” shall be construed as set forth in Clause 2.4.

“Party Entitled to Compensation” shall be construed as set forth in Clause 10.1.

“Party Obliged to Compensate” shall be construed to mean as set forth in Clause 10.1.

“Party(ies)” shall be construed to mean the Seller and/or the Buyer, as appropriate.

“Proceedings” shall be construed as set forth in Clause 10.2.

“Purchase Price” shall be construed as set forth in Clause 5.1.

.“Seller” shall be construed to mean “Telvent Outsourcing, S.A.”.

“Software” shall be construed to mean all computer programs and logical equipment used by TO
during the ordinary course of its Business, whose rights belong to the Company or are the
property of a third party whose has granted a license of use to TO.

“Statements and Guaranties” shall be construed as set forth in clause 7.

“Subrogated Employees” shall be construed as set forth in Clause 6.1

25

 

“Tax Authority” shall be construed as any tax authority or other authority having the competence
to impose, manage, inspect or collect any kind of Taxes.

“Tax Return” shall be construed to mean any return, calculation, estimation, report, document,
form, reimbursement application, reimbursement, complementary or explanatory attachment, or any
other information or correspondence with any Tax Authority regarding Taxes.

“Tax”, “Taxes” or “Taxation” shall be construed to mean any kind of taxation, either direct
or indirect, and irrespective of whether the tax falls on income, profits, turnover, gains,
assets, asset values, added value, sales, goods and services, utilization, rights in rem or
personal rights, capital, licenses, branches or on any others elements, including state,
regional, provincial, local or municipal taxes, duties or contributions irrespective of the
time and place the tax is imposed, including any deductions and withholdings on account of
any Taxes as regards any tax payments that TO should make pursuant to the laws that apply;
along with any penalties, fines, charges, surcharges, costs and interest connected with the
same and also including taxes deemed as pending payment, as well as any taxes on profits,
income or gains imputable to taxpayer of the same.

“Third-Party Claims” shall be construed as set forth in Clause 10.2.

“TIS” shall be construed to mean the company TELVENT IMPLANTACIÓN DE SISTEMAS, S.L.

“TO” shall be construed to mean “Telvent Outsourcing, S.A.”

“Transaction” shall be construed as set forth in Whereas Clause C.

“Transferred Agreements” shall be construed in keeping with the meaning given to it in Clause
3.1.

	2.	 	For the purposes of this Agreement any express or implicit reference to a law (including any
legislation of any jurisdiction) shall be construed as referring to:

	 	(a)	 	such law and its subsequent amendments and extensions, as well as to its
application at any time, both before and after this Agreement’s date;
	 
	 	(b)	 	any law the former may set forth as being once again in force (irrespective
of whether it turns out to have been amended or not); and
	 
	 	(c)	 	any legislation that develops such law (including regulations) enacted (both
before and after this Agreement’s date) under the aegis of such law, and the way such
legislation developing the law may be amended, extended or applied in the way set forth
in paragraph (a) above, or as a consequence of any provisions as set forth in paragraph
(b) above,

	 	 	except in so far as any of the circumstances referred to in paragraphs (a) to (c) above
happen after this Agreement’s date and give rise to an increase or change in the Seller’s
liability arising from this Agreement.
	 
	3.	 	For the purposes of this Agreement:

	 	(a)	 	any references to a person shall also include any body, company or
associations of persons;
	 
	 	(b)	 	any references to an individual shall include a reference a his/her assets
and his/her representatives; and
	 
	 	(c)	 	any references to a Party of this Agreement shall include a reference to the
successors or assignees (immediate or of any other kind) of such Party.

	4.	 	If a provision is qualified or is formulated by reference to the ordinary course of the
business, such reference shall be construed as being made as regards the normal way a specific
business is carried out in Spain.
	 
	5.	 	The references to the “Euro” or to “€” symbol refer to the currency introduced at the
beginning of the third stage of European economic and monetary union as set forth in the
Treaty establishing the European Community, as it may be amended at any time, and which is the
legal tender
currency in Spain.

26

 

	6.	 	Should any discrepancy arise between the definition set forth in this attachment and the
definitions set forth in any clause or attachment, the definitions set forth in such clause or
attachment shall prevail for the purposes of interpreting such clause or attachment.
	 
	7.	 	The singular shall include the plural and the masculine shall include the feminine, and
vice-versa.
	 
	8.	 	All accounting concepts shall be defined and construed in accordance with prevailing
legislations that governs the “General Chart of Accounts” and in keeping with the model of
annual accounts set forth therein.

27exv4w111

EXHIBIT
4.111

English Translation to Original Agreement

Service Provision Agreement

This Service Provision Agreement is entered into in Seville on the first day of April 2009 BY AND
BETWEEN:

Mr. Miguel Ángel Jiménez-Velasco Mazarío, of legal age, domiciled in Seville, whose domicile for
the purposes of this Agreement is at Avda. de la Buhaira 2, and holder of National ID Card Number
[***], along with Mr. José Marcos Romero, of legal age, domiciled in Seville, whose domicile for
the purposes of this Agreement is at Avda. de la Buhaira 2, and holder of National ID Card Number
[***] both of which are acting on behalf and on account of the Company Abengoa, S.A. (hereinafter
referred to as “Abengoa” or the “Lessor”) with registered address and tax domicile in Seville at
Avda. de la Buhaira 2. Abengoa is duly registered at the Seville Companies Register in Sheet 2,921,
Folio 107, Volume 47 of Companies and its VAT Registration Number is [***].

AND:

Mr. Rafael Ángel Bago Sotillo, domiciled in Alcobendas, Madrid at Calle Valgrande 6 and holder of
National ID Card Number [***] in his capacity as a power of attorney holder of Telvent Git S.A.
(hereinafter “Telvent” or the Lessee), a Company duly registered at the Madrid Companies Register
in Sheet 257879, Folio 164, Volume 15370 of Companies, with VAT Registration Number [***] and
registered address in Alcobendas at Calle Valgrande 6.

Abengoa and Telvent shall hereinafter be jointly referred to as the “Parties”.

Both Parties mutually recognize they have the necessary legal capacity to enter into this Agreement
and oblige the companies they represent in the capacity with which they are acting.

RECITALS

	 	I.	 	WHEREAS, the companies comprising “Telvent” have as their main business activity the
execution of Integrated Information Technology Solutions in real time and that they need
the professional services (hereinafter referred to as the “Services”) set forth in Clause
1 contained herein to perform the aforementioned activity;
	 
	 	II.	 	WHEREAS, “Abengoa” has the means, the structure, the institutional relationships and
the resources to perform such Services;
	 
	 	III.	 	WHEREAS, “Abengoa” maintains a coordination and oversight policy with its
subsidiaries regarding the corporate strategic decisions of and in each business group in
order to integrate them within Abengoa’s Strategic Plan;
	 
	 	IV.	 	WHEREAS, within the financial policy of “Telvent” and “Abengoa”, as the parent
company, the latter provides a backup and financial assistance service through guarantying
and backing Telvent’s needs for cash and bank, working capital, lines of guaranties,
factoring, bank payments to suppliers, etc;

 

 

-2- 

	 	V.	 	WHEREAS, as a consequence of the foregoing and as a condition for maintaining such
financial assistance, “Abengoa” needs to oversee Telvent’s strategic decisions as regards
the execution of its business line in order to ensure that such decisions are carried out
in keeping with Abengoa’s strategic plan. This oversight is followed in accordance with
the Common Management Systems model that Abengoa has implemented in all its subsidiaries
and in particular the Authorizations Noc or NOC(Normas de Obligado
Cumplimiento — NOC) and the system of authorizations associated them;
	 
	 	VI.	 	WHEREAS, due to all of the above, Telvent is interested in renewing the Services
provided by Abengoa, and Abengoa in providing such Services; and
	 
	 	VII.	 	WHEREAS, as it is in both Parties’ interest to govern their mutual relationships,
they thus enter into this Service Provision Agreement (referred to hereinafter as the
“Agreement”) subject to the following:

Terms and Conditions

1.- Purpose

In accordance with what has been set forth in the Recitals above, the purpose of this Agreement is
the provision by Abengoa of collaboration and advisory services to the management and to the
different departments of the company concerning: (i) the planning of Telvent’s businesses; (ii) the
drawing up of overall policies and strategies affecting such businesses; (iii) collaborating in the
decision-making concerning the execution of such policies and strategies, along with the provision
of the necessary technical support to implement such policies and decisions with regard to the
activities Telvent performs and which have been described generically in Recitals above, so that
Telvent may perform its businesses efficiently, and to enhance and support the expansion of the
capacity of such businesses both in Spain and abroad; (iv) approving transactions that involve the
acquisition or disposal of any of Telvent’s relevant assets, as well as any significant corporate
transactions, or any other matters it may be entrusted with; and (v) more particularly, the
planning and execution of Telvent’s financing policy with Abengoa’s assistance and/or guaranty in
accordance with the terms and conditions set forth herein.

More specifically, the Services Abengoa shall provide to Telvent Departments in the performance of
this Agreement include:

	 	•	 	Overseeing and approving strategic plans and management targets, setting and
developing the overall risk policy and, specifically, the NOCs (Common Management Systems) that
define the framework for the management of the businesses in the company. The NOCs constitute a
living system that adapts itself to the reality of the businesses and therefore require constant
action as regards both contents and form.
	 
	 	•	 	Overseeing and approving the annual budget and monitoring it.
	 
	 	•	 	Providing support to the drawing up of strategic plans and budgets by
supplying the common tools and methodology used by the rest of the Group.
	 
	 	•	 	Developing common institutional and commercial policies and strategies,
especially in any countries in which Telvent lacks a presence and Abengoa is present.

 

 

-3- 

Some of the Services included under this Agreement are set forth below as an example:

1.1-Generic Services:

Financial Services:

	 	•	 	Drawing up and setting the overall financial risk policy and the
coverage of such risks by providing advice on and oversight over the financial instruments used
to cover foreign exchange risks (foreign exchange risk insurance, pre-financing and foreign
currency deposits), as well as interest rate risks (caps, swaps and other derivatives).
	 
	 	•	 	Coordinating the proposals put forward by Abengoa as a consolidated
group concerning qualitative public non-financial reporting.
	 
	 	•	 	External Financing Lines:

Negotiating with the usual credit institutions and cooperating in the management of external
financing lines:

	 
	 	•	 	Surety lines and economic guaranties.     
	 
	 	•	 	Bank payments to supplier lines.     

     Collaborating and assisting in the negotiation of:

	 	•	 	Credit lines and bridging loans as the first step towards the structured
financing of integrated products.
	 
	 	•	 	Factoring lines for both Spanish and international projects.
	 
	 	•	 	Payment deferrals, guaranties and other financial instruments.

	 	•	 	Centralized Cash and Bank Management: designing investment guidelines
for cash and bank surpluses under market conditions.
	 
	 	•	 	Establishing a line of revolving financing of up to €80 million under
market conditions.
	 
	 	•	 	Project Finance: holding weekly meetings to design possible project
finance structures and to analyze schemes that could be broached in future projects. Managing the
process of analyzing and contracting financing transactions under the Project Finance formula.
	 
	 	•	 	Cooperating and providing institutional support to negotiations with
international multilateral financing bodies (International Development Bank, World Bank, etc.)
	 
	 	•	 	Providing advice on the drawing up and submission of bids for public
tenders and competitive auctions on aspects related to the coverage of financial and business
risks.

Internal Auditing Services:

	 	•	 	Collaborating in and supervising internal auditing tasks: overseeing the
annual Internal Auditing Plan, coordinating and preparing monthly meetings to monitor work plans,
work performed, as well as policies and recommendations issued and implemented in order to set
common guidelines for Telvent’s internal auditing tasks.
	 
	 	•	 	Annual Internal Auditing workshops: training Telvent’s Internal Auditing
Department, as well as providing updates concerning new issues and technical matters as regards
internal auditing.

 

 

-4- 

	 	•	 	CDAudit Application: training, maintenance and monitoring of incidents
concerning the corporate computer tool that provides support to Telvent’s Internal Auditing
tasks.
	 
	 	•	 	Assignment of human resources to perform relevant Auditing work at
Telvent.
	 
	 	•	 	Providing assistance on the closure of critical points with External
Auditors to resolve critical/technical auditing points that may have an impact on the accounts
and financial reports.
	 
	 	•	 	Coordination of proposals put forward by Abengoa for the optimization of
auditing fees for the entire group.

Administration Services:

	 	•	 	Defining risk policies and setting forth best practices for Telvent’s tax
affairs: holding weekly meetings with the relevant services and with external attorneys to
provide advice on the handling of tax matters, especially matters arising from international
tenders.
	 
	 	•	 	Tax consultancy on complex processes (acquisitions).
	 
	 	•	 	Tax Inspections: providing Telvent with technical assistance to monitor
tax inspections. Intervening in and representing Telvent in special situations connected with
such inspections, and coordinating with third parties.
	 
	 	•	 	Overseeing and controlling the annual budget and its reviews, laying down
common criteria and guidelines of action.
	 
	 	•	 	In.Pre.So. (application used to advance the closure of accounts, budgets
and strategic plan): training, maintenance, oversight and monitoring of incidents concerning the
corporate computer tool that provides support to Telvent to draw up budgets and the strategic
plan.
	 
	 	•	 	Overseeing, approving and monitoring the Strategic Plan.

Reporting and Consolidation Services:

	 	•	 	Magnitude and ICS application: training, maintenance, oversight and
monitoring of incidents concerning the consolidation computer application, adding new companies
to the consolidation boundary, deleting companies that have been wound down or sold,
book-keeping, etc.

General Secretariat Services:

a) Legal Counseling Services:

	 	•	 	Overseeing and monitoring Telvent’s legal affairs: holding monthly
meetings to deal with any possible risks or to issue instructions about how to deal with such
issues.
	 
	 	•	 	International legal advice and support in any countries in which Telvent
currently lacks a presence.

b) Risk Management Services:

	 	•	 	Setting the area’s overall risk policy
	 
	 	•	 	Telvent’s Risk Analysis: holding monthly monitoring meetings to review
significant projects and to take out joint insurance policies for the entire Group. Negotiating
and optimizing such overall corporate insurance policies that cover Telvent’s risks. Conducting
risk analyses on Telvent’s significant projects.

 

 

-5- 

c) Communication Services:

	 	•	 	Internal advertising services, corporate image and institutional
relationships.
	 
	 	•	 	Internal Bulletin: publishing an internal bulletin on a monthly basis that
includes spaces on Telvent, as well as on the rest of Abengoa’s business units. This bulletin
constitutes a marketing instrument for Telvent, as well as being an internal information tool.
	 
	 	•	 	Contributing to decision-making concerning both the contents of press
releases as well as the medium through which the information thus chosen will be released.
	 
	 	•	 	Intranet: holding weekly meetings aimed at maintaining the Telvent
Internal Portal. Designing the strategy to disclose dynamic contents and taking part in the
analysis and updating of Telvent’s static contents.
	 
	 	•	 	Telvent Annual Report: providing advice and cooperation to draw up
Telvent’s Annual Report, mainly concerning the standardization of its contents and design.
	 
	 	•	 	Drawing up the Corporate Identity and Communications Manual and overseeing
that it is homogenously applied in collaboration with the Corporate Identity and Communications
Department.
	 
	 	•	 	Communications in Crisis Situations: holding meetings with the
Communications Department in the event of reporting crises (negative or critical news about
Telvent published in the media due to its importance regarding the possible impact on the
performance of Telvent’s businesses).

Quality Services:

	 	•	 	PRRs (Problem Resolution Reports) and IAs (Improvement Actions): jointly
with Telvent’s Quality Department, coordinating, overseeing and monitoring reviews of the Problem
Resolution Report (PRR) and Improvement Action (IA) application, whose outcome is a functional
improvement document for the relevant applications. Drawing up statistical analyses concerning
quality matters for their management and analysis by Telvent.
	 
	 	•	 	Internal Quality Audits: issuing scores and improvement recommendations
for each of the areas audited on an annual basis for all Telvent companies.
	 
	 	•	 	Providing assistance to obtain official overall assessments.

Human Resources Area Services:

	 	•	 	Counseling as regards best practices concerning matters having to do with
compensation for administrators, senior executives and employees in general. Putting forward
proposals concerning the company’s overall remuneration policy.
	 
	 	•	 	Providing advice on the setting of assessment techniques for executives
and the rest of the company’s workforce. Collaborating in the assessment process and making
appointment and promotion proposals.
	 
	 	•	 	Corporate Training: giving annual training to all of Telvent’s employees
on the contents of the company’s obligatory internal rules and guidelines.
	 
	 	•	 	Putting forward candidates for offices and jointly conducting the
assessment of potential executives: holding meetings to make decisions on the assessment of
potential
executives and the professional careers of Telvent employees.

 

 

-6- 

	 	•	 	Conducting comparative salary analyses and reports.

Other common services:

	 	•	 	Providing advice on the setting of Corporate Governance and Corporate
Social Responsibility policies.
	 
	 	•	 	Overseeing and providing assistance on the application of Telvent’s
communication and information disclosure policies within the parameters of Abengoa’s corporate
governance and corporate social responsibility, as well as on corporate identity, annual reports
and crisis management.

Common services for all Departments:

	 	•	 	Updating the NOCs that define the management of the company’s businesses,
set criteria and guidelines of action, reinforce its corporate identity, reduce risks and
optimize its management. These constitute a living system that adapts itself to the reality of
the businesses and therefore require constant action as regards both contents and form.
	 
	 	•	 	Providing ongoing advice on improving Telvent’s actions and management.
	 
	 	•	 	Other Corporate Services received: taking part in the Abengoa Focus
Foundation (Fundación Focus Abengoa), conducting functional analyses to modify computer
applications, providing educational scholarships, providing aid connected with occupational
health (collective life insurance policy), recognizing employees with a seniority of 25 years in
the company, free hospital access for employees and subsidized care services for employees at the
Antilla Residence.

1.2 — Specific On-Demand Support Services

Such services include any services not expressly set forth in the preceding point, for which
Telvent shall expressly and on a timely basis commission specific services from Abengoa, which the
latter shall provide within the overall scope of assistance and management to which this Agreement
binds the Parties.

2.- Price

2.1 — As consideration for the services set forth in Clause 1.1 in force for the period April to
December 2009, Abengoa shall receive the amount of five million nine hundred seventy-two thousand
and three euros (5,972,003 euros), upon which the VAT rate prevailing at any one time shall be
applied in accordance with prevailing legislation. Such amount shall be invoiced on a quarterly
basis in three equal parts within the first fifteen days of the corresponding quarter against the
order number issued by Telvent upon the entering into of this Agreement.

The complete annual fee for the coming years (January — December) shall be of €7,962,671.

Abengoa shall submit its invoices to Telvent to collect the price agreed upon, which shall be paid
to Abengoa by Telvent within each calendar quarter.

As regards the on-demand services set forth in Clause 1.2, the Parties shall agree upon the

 

 

-7- 

consideration, at market prices, for each specific case to be paid by Telvent to Abengoa for the
specific provision of each service requested and performed during the term of this Agreement.

2.2 — Any ordinary travel, accommodation and board expenses shall be paid by Telvent to Abengoa
upon submission of the corresponding justifying receipts up to the maximum amount that may be
agreed upon for each case.

2.3 — Any extraordinary expenses shall have to be previously approved by Telvent as a prior
condition for their reimbursement to Abengoa.

2.4 — The determination of the consideration set forth in paragraph 2.1 above has been established
in accordance with the current volume and expected growth of Telvent’s activities in the current
year. Both Parties have accepted this as the most appropriate figure of reference, as the services
are requested by the Lessee from the Lessor on the basis of such activities. Nonetheless, should
the Lessee request additional and/or special services, the Parties may agree upon a consideration
for each specific case.

3.- Term

This Agreement shall enter into effect on April 1, 2009 and shall have an initial term of nine
months. Any extension to such term for full calendar years shall be done in writing by means of a
mutual written agreement, setting forth any economic changes that may proceed, and it shall be
updated for the new period after having received the prior approval of the corresponding bodies of
corporate governance (i.e. the Audit Committee).

This Agreement sets forth the Parties’ entire agreement and shall override any prior agreements,
arrangements and communications, either verbal or in writing, between the Parties in connection
with this Agreement.

4.- Provision of the Service

In order to perform the functions it has been entrusted with, Abengoa shall provide Telvent with
all the documents that may be required and, where necessary, the assistance of its own technicians
and specialists.

For its part, Abengoa shall use all the necessary material and human means for such purposes and
may subcontract the execution of specific work to third parties. Abengoa shall, however, be held
liable by Telvent for such work and for paying for the services thereof.

The Parties shall hold meetings on a regular basis. At such meetings, Abengoa shall inform about
its management, planning, monitoring and oversight, as well as about the work performed in the
preceding period. Such meetings may either be held at Telvent’s premises or at Abengoa’s premises
and shall be held on a monthly, quarterly or other basis as agreed upon by the Parties. Abengoa
shall inform Telvent about the progress and results of the services entrusted to it in a timely
fashion.

5.- Confidentiality

Each of the Parties shall undertake to respect the confidential nature of the information received
from the other Party and may not disclose the other party’s trade knowledge and/or secrets, even
after this Agreement has terminated, and the Parties shall be held

 

 

-8- 

liable for any direct breaches of such obligation or any breaches committed by their employees.

Upon this Agreement’s termination, whatever the cause may be, Abengoa shall return all the
documents and information (technical or business-related) it may have received from Telvent.

This Agreement is based on the principle of loyalty and, hence, the Parties may deem it as having
been terminated should they consider the other Party has breached such undertakings.

6.- Ownership of Documents

Any documents that may be produced during the term of this Agreement or as a result thereof and
which have some sort of connection with its purpose shall be owned by Telvent. Hence, Abengoa shall
have to obtain Telvent’s prior authorization to make use of such documents for any purpose
whatsoever.

7.- Assignment

The Parties may not subrogate the rights and obligations arising from this Agreement to any third
parties unless a prior written agreement thereof exists.

8.- Termination

Apart from the incidents set forth herein, the following shall be a cause for this Agreement’s
termination:

a) A breach by either of the Parties of any of the Agreement’s clauses;

b) Should either of the Parties enter into a situation of insolvency, bankruptcy,
creditors’ arrangements, suspension of payments, or court or out-of-court liquidation; and

c) By the Parties’ mutual agreement and with the effects set forth therein.

Without prejudice to the foregoing, Telvent may at any time expressly reduce or eliminate any of
the services set forth above in Clause 1 by giving sixty (60) days’ written notice thereof.

9.- Governing Law

This Agreement shall be governed by Spanish Law and any disputes that may arise between the Parties
concerning its interpretation, fulfillment, performance, or its total or partial termination shall
be resolved by means of binding arbitration under the Law pursuant to Law 60/2003 of December 23,
2003 and to any complementary provisions. Such arbitration shall be held in Seville, Spain. Each
party shall appoint an arbitrator and the third arbitrator shall be appointed by the arbitrators
thus appointed, who shall act as the Chairman of the Arbitration Board. The arbitration award shall
be complied with by the Parties and shall be issued within two months of arbitration proceedings
being brought. Should the Parties fail to agree upon the appointment of arbitrators, they hereby
submit themselves to the jurisdiction of the Courts of Seville for the court appointment of such
arbitration.

IN WITNESS WHEREOF, the Parties have set their hand on two copies of this Agreement to a single
effect on the date and in the place first mentioned above.

 

 

-9- 

	 	 	 	 	 
	For

	 	 
	 	For
	Telvent Git, S.A.

	 	 	 	Abengoa, S.A.
	
/s/ Rafael Ángel Bago Sotillo

	 	 	 	
/s/ Miguel Ángel Jiménez-Velasco Mazarío
	 

	 	 	 	 
	Signed: Mr. Rafael Ángel Bago Sotillo

	 	 	 	Signed: Mr. Miguel Ángel
Jiménez-Velasco Mazarío
	 
	 	 	 	 
	 

	 	 	 	/s/ José Marcos Romero
	 

	 	 	 	 
	 

	 	 	 	Signed: Mr. José Marcos Romero

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]