Document:

EXHIBIT 4.3

 

	
  

  	
  LIMITED LIABILITY PARTNERSHIP

  
	
   

  	
  CONFORMED COPY

  

 

ABB LTD

 

CERTAIN SUBSIDIARIES OF ABB LTD

AS BORROWERS AND GUARANTORS

 

WITH

 

BARCLAYS CAPITAL

BAYERISCHE HYPO-UND VEREINSBANK AG

BNP PARIBAS

CITIGROUP GLOBAL MARKETS LIMITED

COMMERZBANK AKTIENGESELLSCHAFT

CREDIT SUISSE

DEUTSCHE BANK AG

DRESDNER KLEINWORT WASSERSTEIN (acting through
DRESDNER BANK AG

NIEDERLASSUNG LUXEMBURG)

HANDELSBANKEN CAPITAL MARKETS, SVENSKA HANDELSBANKEN
AB (publ)

HSBC BANK PLC

NORDEA BANK AB (publ)

 

and

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN,
AB (PUBL)

 

AS MANDATED LEAD ARRANGERS

 

with

CREDIT SUISSE

AS FACILITY AGENT, DOLLAR SWINGLINE AGENT AND EURO
SWINGLINE AGENT

 

and

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN,
AB (PUBL)

AS SEK SWINGLINE AGENT

 

 

$2,000,000,000

MULTICURRENCY REVOLVING CREDIT AGREEMENT

 

DATED 4 JULY 2005

 

 

 

	
  CONTENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions
  And Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The
  Facility

  	
  21

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Purpose

  	
  22

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Conditions
  Of Utilisation

  	
  23

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Utilisation

  	
  24

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Optional
  Currencies

  	
  27

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Repayment

  	
  28

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Prepayment
  And Cancellation

  	
  28

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Interest

  	
  31

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Interest
  Periods

  	
  32

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Changes
  To The Calculation Of Interest

  	
  33

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Fees

  	
  34

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Tax
  Gross Up And Indemnities

  	
  36

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Increased
  Costs

  	
  40

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Other
  Indemnities

  	
  41

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Mitigation
  By The Lenders

  	
  42

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Costs
  And Expenses

  	
  43

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Guarantee
  And Indemnity

  	
  44

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Representations

  	
  48

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Information
  Undertakings

  	
  51

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Financial
  Covenants

  	
  54

  
	
   

  	
   

  	
   

  
	
  22.

  	
  General
  Undertakings

  	
  57

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Events
  Of Default

  	
  60

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Changes
  To The Lenders

  	
  64

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Changes
  To The Obligors

  	
  68

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Role
  Of The Agents And The Mandated Lead Arrangers

  	
  71

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Conduct
  Of Business By The Finance Parties

  	
  76

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Sharing
  Among The Lenders

  	
  76

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Payment
  Mechanics

  	
  79

  
	
   

  	
   

  	
   

  
	
  30.

  	
  Set-Off

  	
  82

  
	
   

  	
   

  	
   

  
	
  31.

  	
  Notices

  	
  82

  

 

 

	
  32.

  	
  Calculations
  And Certificates

  	
  85

  
	
   

  	
   

  	
   

  
	
  33.

  	
  Partial
  Invalidity

  	
  85

  
	
   

  	
   

  	
   

  
	
  34.

  	
  Remedies
  And Waivers

  	
  85

  
	
   

  	
   

  	
   

  
	
  35.

  	
  Amendments
  And Waivers

  	
  86

  
	
   

  	
   

  	
   

  
	
  36.

  	
  Counterparts

  	
  86

  
	
   

  	
   

  	
   

  
	
  37.

  	
  Governing
  Law

  	
  87

  
	
   

  	
   

  	
   

  
	
  38.

  	
  Enforcement

  	
  87

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  88

  
	
   

  	
   

  
	
   

  	
  Part I
  The Original Lenders

  	
  88

  
	
   

  	
  Part II
  The Dollar Swingline Lenders

  	
  90

  
	
   

  	
  Part III
  The Euro Swingline Lenders

  	
  92

  
	
   

  	
  Part IV
  The SEK Swingline Lenders

  	
  93

  
	
   

  	
  Part V
  The Original Obligors

  	
  94

  
	
   

  	
   

  	
   

  
	
  Schedule 2
  CONDITIONS PRECEDENT

  	
  96

  
	
   

  	
   

  	
   

  
	
   

  	
  Part I
  Conditions Precedent

  	
  96

  
	
   

  	
   

  	
   

  
	
   

  	
  Part II
  Additional Obligor Conditions Precedent

  	
  98

  
	
   

  	
   

  	
   

  
	
  Schedule 3
  UTILISATION REQUEST

  	
  100

  
	
   

  	
   

  
	
  Schedule 4
  THE MARGIN

  	
  101

  
	
   

  	
   

  
	
  Schedule 5
  FORM OF TRANSFER CERTIFICATE

  	
  102

  
	
   

  	
   

  
	
  Schedule 6
  TIMETABLES

  	
  104

  
	
   

  	
   

  
	
  Schedule 7
  FORM OF ACCESSION LETTER

  	
  106

  
	
   

  	
   

  
	
  Schedule 8
  FORM OF RESIGNATION LETTER

  	
  107

  
	
   

  	
   

  
	
  Schedule 9
  MANDATORY COST

  	
  108

  
	
   

  	
   

  
	
  Schedule 10
  MATERIAL SUBSIDIARIES

  	
  110

  
	
   

  	
   

  
	
  Schedule 11
  FORM OF COVENANT COMPLIANCE CERTIFICATE

  	
  111

  

 

 

THIS AGREEMENT is dated 4 July 2005
and made between:

 

(1)                            ABB LTD, a company
incorporated in Switzerland whose registered office is at Affolternstrasse 44,
CH-8050 Zurich, Switzerland (“ABB”);

 

(2)                            THE SUBSIDIARIES OF ABB listed in Part V of Schedule 1
(The Original Obligors) as
original borrowers (the “Original Borrowers”);

 

(3)                            ABB AND THE SUBSIDIARIES OF ABB listed in Part V of Schedule 1 (The Original Obligors) as original guarantors (the “Original Guarantors”);

 

(4)                            BARCLAYS CAPITAL, BAYERISCHE HYPO-UND VEREINSBANK AG,
BNP PARIBAS, CITIGROUP GLOBAL MARKETS LIMITED, COMMERZBANK AKTIENGESELLSCHAFT, CREDIT
SUISSE, DEUTSCHE BANK AG, DRESDNER KLEINWORT WASSERSTEIN (acting through
DRESDNER BANK AG, NIEDERLASSUNG LUXEMBURG), HANDELSBANKEN CAPITAL MARKETS,
SVENSKA HANDELSBANKEN AB (publ), HSBC BANK PLC, NORDEA BANK AB (publ) and SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB (PUBL) as
mandated lead arrangers (the “Mandated Lead
Arrangers”);

 

(5)                            THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The
Original Lenders) in their respective capacities as original lenders
(the “Original Lenders”);

 

(6)                            CREDIT SUISSE in its
capacity as facility agent (the “Facility
Agent”);

 

(7)                            CREDIT SUISSE, CAYMAN ISLANDS BRANCH in its capacity as
dollar swingline agent (the “Dollar Swingline
Agent”);

 

(8)                            CREDIT SUISSE in its
capacity as euro swingline agent (the “Euro
Swingline Agent”); and

 

(9)                            SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN,
AB (PUBL) in its capacity as SEK swingline agent
(the “SEK Swingline Agent”).

 

IT IS AGREED as follows:

 

SECTION 1

INTERPRETATION

 

1.                                 DEFINITIONS AND INTERPRETATION

 

1.1                           Definitions

In this Agreement:

 

“Accession Letter” means a
Borrower Accession Letter or a Guarantor Accession Letter.

 

1

 

“Additional Borrower”
means any wholly owned Subsidiary of ABB that has become an Additional Borrower
in accordance with Clause 25.2 (Additional
Borrowers).

 

“Additional Guarantor”
means any wholly owned Subsidiary of ABB that has become an Additional
Guarantor in accordance with Clause 25.4 (Additional
Guarantors).

 

“Additional Obligor” means
an Additional Borrower or Additional Guarantor.

 

“Advance” means any
Revolving Advance and, unless the context otherwise requires, a Swingline Advance.

 

“Affiliate” means, in
relation to any person, a Subsidiary of that person or a Holding Company of
that person or any other Subsidiary of that Holding Company.

 

“Agents” means the Dollar
Swingline Agent, the Euro Swingline Agent, the SEK Swingline Agent and the
Facility Agent, and “Agent” means,
as the context may require, any of them.

 

“Agreed Jurisdiction”
means any of the United States of America, Switzerland, Guernsey, any country
that is, at the date of this Agreement, a member of the European Union and any
other country approved by all the Lenders.

 

“Authorisation” means an
authorisation, consent, approval, resolution, licence, exemption, filing or
registration.

 

“Availability Period”
means the period from the date of this Agreement up to and including the date
falling one week before the Termination Date.

 

“Available Commitment”
means a Lender’s Commitment minus:

 

(a)                                      the
Base Currency Amount of its participation in any outstanding Advances; and

 

(b)                                     in
relation to any proposed Utilisation, the Base Currency Amount of its
participation in any Advances that are due to be made on or before the proposed
Utilisation Date,

 

other than, in either case, that Lender’s participation in any Advances
that are due to be repaid or prepaid on or before the proposed Utilisation
Date.

 

“Available Dollar Swingline
Commitment” means a Dollar Swingline Lender’s Dollar Swingline
Commitment minus:

 

(a)                                      the
Base Currency Amount of its participation in any outstanding Dollar Swingline
Advances; and

 

(b)                                     in
relation to any proposed Utilisation by way of a Dollar Swingline Advance, the
Base Currency Amount of its participation in any Dollar Swingline Advances that
are due to be made on or before the proposed Utilisation Date,

 

2

 

other than, in either case, that Dollar Swingline Lender’s
participation in any Dollar Swingline Advances that are due to be repaid or
prepaid on or before the proposed Utilisation Date.

 

“Available Dollar Swingline Facility”
means the aggregate for the time being of each Dollar Swingline Lender’s
Available Dollar Swingline Commitment.

 

“Available Euro Swingline Commitment”
means a Euro Swingline Lender’s Euro Swingline Commitment minus:

 

(a)                                      the
Base Currency Amount of its participation in any outstanding Euro Swingline
Advances; and

 

(b)                                     in
relation to any proposed Utilisation by way of a Euro Swingline Advance, the
Base Currency Amount of its participation in any Euro Swingline Advances that
are due to be made on or before the proposed Utilisation Date,

 

other than, in either case, that Euro Swingline Lender’s participation
in any Euro Swingline Advances that are due to be repaid or prepaid on or
before the proposed Utilisation Date.

 

“Available Euro Swingline Facility”
means the aggregate for the time being of each Euro Swingline Lender’s
Available Euro Swingline Commitment.

 

“Available Facility” means
the aggregate for the time being of each Lender’s Available Commitment.

 

“Available SEK Swingline Commitment”
means a SEK Swingline Lender’s SEK Swingline Commitment minus:

 

(a)                                      the
Base Currency Amount of its participation in any outstanding SEK Swingline
Advances; and

 

(b)                                     in
relation to any proposed Utilisation by way of a SEK Swingline Advance, the
Base Currency Amount of its participation in any SEK Swingline Advances that
are due to be made on or before the proposed Utilisation Date,

 

other than, in either case, that SEK Swingline Lender’s participation
in any SEK Swingline Advances that are due to be repaid or prepaid on or before
the proposed Utilisation Date.

 

“Available SEK Swingline Facility”
means the aggregate for the time being of each SEK Swingline Lender’s Available
SEK Swingline Commitment.

 

“Base Currency” means
Dollars.

 

“Base Currency Amount”
means, in relation to an Advance, the amount specified in the Utilisation
Request delivered by the relevant Borrower for that Advance (or, if the amount
requested is not denominated in the Base Currency, that amount converted into
the Base Currency at the Facility Agent’s Spot Rate of Exchange on the date
which is

 

3

 

3 Business Days before the Utilisation Date or, if later, on the date
the Facility Agent receives the Utilisation Request) adjusted to reflect any
repayment or prepayment of the Advance.

 

“Borrower Accession Letter”
means a letter substantially in the form set out in Schedule 7 (Form of Accession Letter).

 

“Borrowers” means each
Original Borrower and each Additional Borrower, provided that it has not been released from its rights and
obligations under this Agreement in accordance with Clause 25.3 (Resignation of a Borrower).

 

“Break Costs” means the
amount (if any) by which:

 

(a)                                      the
interest (excluding the Margin), which a Lender should have received for the
period from the date of receipt of all or any part of its participation in
an Advance or Unpaid Sum to the last day of the current Interest Period in
respect of that Advance or Unpaid Sum, had the principal amount or Unpaid Sum
received been paid on the last day of that Interest Period;

 

exceeds:

 

(b)                                     the
amount which that Lender would be able to obtain by placing an amount equal to
the principal amount or Unpaid Sum received by it on deposit with a leading
bank in the Relevant Interbank Market for a period starting on the Business Day
following receipt or recovery and ending on the last day of the current
Interest Period.

 

“Business Day” means:

 

(a)                                      in
relation to a Dollar Swingline Advance a day (other than a Saturday or a
Sunday) on which banks are open for general business in New York;

 

(b)                                     in
relation to a SEK Swingline Advance a day (other than a Saturday or a Sunday)
on which banks are open for general business in Stockholm;

 

(c)                                      in
relation to any Advance (not being a Dollar Swingline Advance or a SEK
Swingline Advance) a day (other than a Saturday or Sunday) on which banks are
open for general business in London, and:

 

(i)                        (in relation
to any date for payment or purchase of a currency other than Euro) the
principal financial centre of the country of that currency; or

 

(ii)                     (in relation to
any date for payment or purchase of Euro) any TARGET Day; and

 

(d)                                     for
all other purposes, a day (other than a Saturday or Sunday) on which banks are
open for general business in London.

 

“Commitment” means:

 

4

 

(a)                                      in
relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Commitment”
in Part I of Schedule 1 (The
Original Lenders) and the amount of any other Commitment transferred
to it under this Agreement; and

(b)                                     in
relation to any other Lender, the amount of any Commitment transferred to it
under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this
Agreement.

 

“Covenant Compliance Certificate”
means a certificate substantially in the form set out in Schedule 11
(Form of Covenant Compliance
Certificate).

 

“Credit Rating” means the
corporate rating or, if publicly available, the specific bank loan rating in
respect of the Facility.

 

“Default” means an Event
of Default or any event or circumstance specified in Clause 23 (Events of Default) which (with the expiry
of a grace period or the giving of any notice specified in Clause 23 (Events of Default)) would be an Event of
Default.

 

“Disposal” means a sale,
transfer or other disposal (including by way of lease or loan) by a person of
all or part of its assets, whether by one transaction or a series of
transactions and whether at the same time or over a period of time.

 

“Dollar Swingline Advance”
means any advance made or to be made under the Dollar Swingline Facility
pursuant to a Utilisation Request under Clause 5.5 (Delivery of a Utilisation Request for a Swingline Advance).

 

“Dollar Swingline Commitment”
means:

 

(a)                                      in
relation to an Original Lender which is a Dollar Swingline Lender, the amount
set opposite its name under the heading “Dollar
Swingline Commitment” in Part II of Schedule 1 (The Dollar Swingline Lenders) and the
amount of any other Dollar Swingline Commitment transferred to it under this
Agreement; and

 

(b)                                     in
relation to any other Dollar Swingline Lender, the amount of any Dollar
Swingline Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this
Agreement.

 

“Dollar Swingline Facility”
means the dollar swingline facility forming part of the Facility as
described in paragraph (a)(i) of Clause 2.1 (The Facility).

 

“Dollar Swingline Lender”
means:

 

(a)                                      any
Original Lender whose name is set out in Part II of Schedule 1 (The Dollar Swingline Lenders); and

 

5

 

(b)                                     any
bank which has become a Party as a Lender in accordance with Clause 24 (Changes to the Lenders) and to whom a
Dollar Swingline Commitment has been transferred,

 

which in each case has not ceased to have a Dollar Swingline
Commitment.

 

“Dollar Swingline Rate”
means, at any time, the higher of:

 

(a)                                      the
Prime Rate; and

 

(b)                                     the
Federal Funds Effective Rate plus 0.50 per cent per annum.

 

“Dutch Borrower” means ABB
Capital B.V. and any Additional Borrower which is incorporated or established
in The Netherlands.

 

“Dutch Civil Code” means
the Dutch Civil Code (Burgerlijk Wetboek).

 

“Dutch Obligor” means each
Obligor incorporated or established in the Netherlands.

 

“Environmental Law” means
any applicable law in any jurisdiction in which any Group Company conducts
business which relates to the pollution or protection of the environment or
harm to or the protection of human health or the health of animals or plants.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974 of the United States of America and the
regulations promulgated and the rulings issued thereunder.

 

“EURIBOR” means, in
relation to any Advance (other than a Euro Swingline Advance) in Euro:

 

(a)                                      the
applicable Screen Rate; or

 

(b)                                     (if
no Screen Rate is available for the period of that Advance) the arithmetic mean
of the rates (rounded upwards to four decimal places) as supplied to the
Facility Agent at its request quoted by the Reference Banks to leading banks in
the European interbank market,

 

as of the Specified Time on the Quotation Day for the offering of
deposits in Euro for a period comparable to the Interest Period of the relevant
Advance.

 

“Euro Swingline Advance”
means any advance made or to be made under the Euro Swingline Facility pursuant
to a Utilisation Request under Clause 5.5 (Delivery
of a Utilisation Request for a Swingline Advance).

 

“Euro Swingline Commitment”
means:

 

(a)                                      in
relation to an Original Lender which is a Euro Swingline Lender, the amount (in
the Base Currency) set opposite its name under the heading “Euro Swingline Commitment” in Part III
of Schedule 1 (The Euro Swingline
Lenders) and the amount of any other Euro Swingline Commitment
transferred to it under this Agreement; and

 

6

 

(b)                                     in
relation to any other Euro Swingline Lender, the amount of any Euro Swingline
Commitment transferred to it under this Agreement, 

 

to the extent not cancelled, reduced or transferred by
it under this Agreement.

 

“Euro Swingline Facility”
means the euro swingline facility forming part of the Facility as
described in paragraph (a)(ii) of Clause 2.1 (The Facility).

 

“Euro Swingline Lender”
means:

 

(a)                                      any
Original Lender whose name is set out in Part III of Schedule 1 (The Euro Swingline Lenders); and

 

(b)                                     any
bank which has become Party as a Lender in accordance with Clause 24 (Changes to the Lenders) and to whom a Euro
Swingline Commitment has been transferred,

 

which in each case has not ceased to have a Euro Swingline Commitment.

 

“Euro Swingline Rate”
means, at any time, the aggregate of:

 

(a)                                      the
arithmetic mean of the rates per annum (rounded upwards to four decimal places)
as supplied to the Euro Swingline Agent at its request quoted by each Reference
Bank to lending banks in the European Interbank market as of 11.00 a.m.
Brussels time on the Utilisation Date for that Euro Swingline Advance for the
offering of deposits in Euro for a period comparable to the Interest Period for
the relevant Euro Swingline Loan and for settlement on that day;

 

(b)                                     the
Margin; and

 

(c)                                      the
Mandatory Cost (if any).

 

“Event of Default” means
any event or circumstance specified as such in Clause 23 (Events of Default).

 

“Exemption Regulation”
means the Dutch exemption regulation dated 26 June 2002 (Vrijstellingsregeling Wtk 1992) (as
amended from time to time) as promulgated in connection with the WTK.

 

“Existing Credit Facility”
means the US$1,000,000,000 revolving credit facility made available pursuant to
a multicurrency revolving facilities agreement dated 17 November 2003, as
amended from time to time.

 

“Existing Lender” has the
meaning given to that term in Clause 24.1 (Assignments
and Transfers by the Lenders).

 

“Facility” means the loan
facility made available under this Agreement as described in paragraph (a) of
Clause 2.1 (The Facility)
incorporating an optional dollar swingline facility, an optional euro swingline
facility and an optional SEK swingline facility.

 

7

 

“Facility Agent’s Spot Rate of
Exchange” means the Facility Agent’s Spot Rate of Exchange for the
purchase of the relevant currency with the Base Currency in the London foreign
exchange market at or about 11:00 a.m. on a particular day.

 

“Facility Office” means:

 

(a)                                      in
relation to a Lender (other than in such Lender’s capacity as a Dollar
Swingline Lender, a Euro Swingline Lender or a SEK Swingline Lender), the
office identified as such opposite such Lender’s name in Part I of Schedule 1
(The Original Lenders) (or, in
the case of a transferee, at the end of the Transfer Certificate to which it is
a party as transferee) or such other office as it may from time to time
select;

 

(b)                                     in
relation to a Dollar Swingline Lender, its office in the United States of
America in the same time zone as New York City identified as such opposite such
Dollar Swingline Lender’s name in Part II of Schedule 1 (The Dollar Swingline Lenders) (or in the
case of a transferee, at the end of the Transfer Certificate to which it is a
party as transferee), or such other office in the United States of America in
the same time zone as New York City as it may from time to time select;

 

(c)                                      in
relation to a Euro Swingline Lender, its office identified as such opposite
such Euro Swingline Lender’s name in Part III of Schedule 1 (The Euro Swingline Lenders) (or in the
case of a transferee, at the end of the Transfer Certificate to which it is a
party as transferee) or such other office as it may from time to time
select; and

 

(d)                                     in
relation to a SEK Swingline Lender, its office identified as such opposite such
SEK Swingline Lender’s name in Part IV of Schedule 1 (The SEK Swingline Lenders) (or in the case
of a transferee, at the end of the Transfer Certificate to which it is a party
as transferee) or such other office as it may from time to time select.

 

“Federal Funds Effective Rate”
shall mean, for any day, the weighted average of the rates on overnight federal
funds transactions with members of the United States Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for the day for such
transactions received by the applicable Agent from three federal funds brokers
of recognised standing selected by it.

 

“Fee Letter” means the
fees letter dated on or around the date of this Agreement from the Mandated
Lead Arrangers to ABB, the agency fees letter from the Facility Agent to ABB
and the swingline agency fees letter dated on or around the date of this
Agreement from the SEK Swingline Agent to ABB setting out the fees referred to
in Clause 12 (Fees).

 

8

 

“Finance Document” means
this Agreement, any Fee Letter, any Accession Letter, any Resignation Letter,
any other document designated as such in writing by the Facility Agent and ABB.

 

“Finance Party” means any
of the Agents, the Mandated Lead Arrangers and the Lenders.

 

“GAAP” means, in relation
to a company, generally accepted accounting principles in its jurisdiction of
incorporation or the U.S.

 

“Group” means ABB and its
Subsidiaries and “Group Company”
means any one of them.

 

“Guarantors” means each of
the Original Guarantors and each Additional Guarantor, provided that such company has not been
released from its rights and obligations hereunder in accordance with Clause
25.6 (Resignation of a Guarantor).

 

“Guarantor Accession Letter”
means a letter substantially in the form set out in Schedule 7 (Form of Accession Letter).

 

“Holding Company” means,
in relation to a company or corporation, any other company or corporation in
respect of which it is a Subsidiary.

 

“IBOR” means, as appropriate,
LIBOR, STIBOR, or EURIBOR.

 

“Indebtedness” means, in
relation to a person, its obligations (whether present or future, actual or
contingent, as principal or surety) for the payment or repayment of money
(whether in respect of interest, principal or otherwise) incurred in respect
of:

 

(a)                                      moneys
borrowed;

 

(b)                                     any
bond, note, loan stock, debenture or similar instrument;

 

(c)                                      any
acceptance credit, bill discounting, note purchase, factoring or documentary
credit facility (or dematerialised equivalent);

 

(d)                                     any
lease required under GAAP to be treated as a finance lease;

 

(e)                                      receivables
sold or discounted (other than any receivables to the extent that they are sold
on a non-recourse basis);

 

(f)                                        any guarantee, bond, stand-by letter of credit or other similar
instrument issued in connection with the performance of payment obligations;

 

(g)                                     any
interest rate or currency swap agreement or any other hedging or derivatives
instrument or agreement;

 

(h)                                     any
arrangement entered into primarily as a method of raising finance pursuant to
which any asset sold or otherwise disposed of by that person is or may be
leased to or re-acquired by a Group Company (whether following the exercise of
an option or otherwise); or

 

9

 

(i)                                         any guarantee, indemnity or similar insurance against financial loss
given in respect of the obligation of any person falling within any of
paragraphs (a) to (g) above.

 

“Information Memorandum”
means the document concerning the Group prepared by ABB in relation to the
Facility and distributed to selected banks prior to the date of this Agreement.

 

“Interest Period” means,
in relation to an Advance, each period determined in accordance with Clause 10
(Interest Periods) and, in
relation to an Unpaid Sum, each period determined in accordance with Clause 9.3
(Default interest).

 

“Investment Grade Rating”
means the Credit Rating of ABB is either:

 

(a)                                      BBB-
(or higher) and Baa3 (or higher) from both S&P and Moody’s; or

 

(b)                                     either
BBB (or higher) from S&P or Baa2 (or higher) from Moody’s.

 

“Lender” means:

 

(a)                                      any
Original Lender; and

 

(b)                                     any
bank which has become a Party as a Lender in accordance with Clause 24 (Changes to the Lenders),

 

which in each case has not ceased to be a Party in accordance with the
terms of this Agreement.

 

“LIBOR” means, in relation
to any Advance (other than an Advance in Euro or a Swingline Advance):

 

(a)                                      the
applicable Screen Rate; or

 

(b)                                     (if
no Screen Rate is available for the currency or period of that Advance) the
arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Facility Agent at its request quoted by the Reference Banks to
leading banks in the London interbank market,

 

as of the Specified Time on the Quotation Day for the offering of
deposits in the currency of that Advance and for a period comparable to the
Interest Period for that Advance.

 

“Majority Lenders” means a
Lender or Lenders:

 

(a)                                      whose
share in the outstanding Advances then aggregate more than 662/3 %
of the aggregate of all the outstanding Advances;

 

(b)                                     if
there is no Advance then outstanding, whose Commitments aggregate more than 662/3
% of the Total Commitments; or

 

10

 

(c)                                      if
there is no Advance then outstanding and the Total Commitments have been
reduced to zero, whose Commitments aggregate more than 662/3 % of
the Total Commitments immediately before the reduction.

 

“Mandatory Cost” means the
percentage rate per annum calculated by the Facility Agent in accordance with Schedule 9
(Mandatory Cost).

 

“Margin” means, at any
time in relation to an Advance (other than a Dollar Swingline Advance) the rate
per annum computed in accordance with the table set out in Schedule 4 (The Margin) provided that:

 

(a)                                      on
any day that ABB has Credit Ratings from S&P and Moody’s which are
divergent from each other, the applicable rate per annum for such day shall be
the average of the rates applicable to the two Credit Ratings;

 

(b)                                     on
any day that only one of S&P or Moody’s assigns a Credit Rating to ABB, the
applicable rate per annum for such day shall be the rate per annum for that
Credit Rating; and

 

(c)                                      on
any day that neither S&P nor Moody’s assigns a Credit Rating to ABB or if
an Event of Default has occurred that is continuing, the applicable rate for
such day shall be 70 basis points per annum.

 

“Material Adverse Effect”
means a material adverse effect on the ability of the Obligors (taken as a
whole) to (i) perform their payment obligations under the Finance
Documents or (ii) comply with their financial covenant obligations under
this Agreement.

 

“Material Subsidiary”
shall mean:

 

(a)                                      as
at the date of this Agreement, each Borrower and any Subsidiary of ABB that is
listed in Schedule 10 (Material
Subsidiaries); and

 

(b)                                     at
any time thereafter, each Borrower and any Subsidiary of ABB that:

 

(i)                        is the holding
company of a country (and not a region) that, together with its Subsidiaries,
has combined third-party revenues or assets (from non-affiliated parties),
prepared in accordance with accounting principles generally accepted in the
United States, in excess of 5 per cent. of the consolidated revenues or
consolidated total assets of the Group for the most recently completed fiscal
year;

 

(ii)                     on a
non-consolidated basis, has combined third-party revenues or assets (from
non-affiliated third parties), prepared in accordance with accounting
principles generally accepted in the United States, in excess of 10 per cent.
of the consolidated revenues or consolidated total assets of the Group for the
most recently completed fiscal year; or

 

(iii)                  has any notes,
bonds, debenture stock, loan stock or other securities outstanding to
non-affiliated third parties in respect of which a 

 

11

 

guarantee, keep-well agreement or other credit support has been
provided by ABB,

 

provided always that for purposes of this definition the term “revenues”
and “assets” shall exclude any revenues or, as the case may be, assets
attributable to activities classified by ABB as non-core or as discontinued
operations.

 

“Month” means a period
starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

 

(a)                                      (subject
to paragraph (c) below) if the numerically corresponding day is not a
Business Day, that period shall end on the next Business Day in that calendar
month in which that period is to end if there is one, or if there is not, on
the immediately preceding Business Day;

 

(b)                                     if
there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that
calendar month; and

 

(c)                                      if
an Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.

 

The above rules will only apply to the last Month of any period.

 

“Moody’s” means Moody’s
Investor Services, Inc., or any successor thereto.

 

“New Lender” has the meaning
given to that term in Clause 24.1 (Assignment
and transfers by the Lenders).

 

“Obligors” means the
Borrowers and the Guarantors.

 

“Optional Currency” means
a currency (other than the Base Currency) which complies with the conditions
set out in Clause 4.3 (Conditions relating
to Optional Currencies).

 

“Original Obligors” means
the Original Borrowers and the Original Guarantors.

 

“Original Financial Statements”
means:

 

(a)                                      in
relation to ABB, the audited consolidated financial statements of the Group for
the financial year ended 31 December 2004;

 

(b)                                     in
relation to each Original Obligor (other than ABB), its audited financial
statements for its financial year ended 31 December 2004; and

 

(c)                                      in
relation to any Additional Obligor, its audited financial statements delivered
pursuant to Part II of Schedule 2 (Additional
Obligor Conditions Precedent).

 

“Outstandings” means the
aggregate of the Base Currency Amount from time to time of each of the
Advances.

 

12

 

“Participating Member State”
means any member state of the European Communities that adopts or has adopted
the Euro as its lawful currency in accordance with legislation of the European
Union relating to European Monetary Union.

 

“Party” means a party to this
Agreement and includes its successors in title, permitted assigns and permitted
transferees.

 

“PMP” means a professional
market party (professionele marktpartij)
within the meaning of the Exemption Regulation.

 

“Policy Guidelines” means
the 2005 Dutch Central Bank’s Policy Guidelines (issued in relation to the
Exemption Regulation) dated 29 December 2004 (Beleidsregel 2005 kernbegrippen markttoetreding en handhaving Wtk 1992)
as amended from time to time.

 

“Prime Rate” means, in
respect of any Dollar Swingline Advance, for any day, the rate of interest per
annum determined from time to time by the Dollar Swingline Agent to be its
prime rate in effect at its principal office in New York City and notified to
the relevant Borrower.

 

“Project Company” means
any Subsidiary of ABB:

 

(a)                                      which
is a single purpose company whose primary purpose is to invest in, lend to or
carry out a specific project or portfolio of projects; and

 

(b)                                     none
of whose liabilities to repay Project Finance Indebtedness are the subject of
security or a guarantee, indemnity or any similar form of assurance,
undertaking or support by any Group Company save to the extent described in the
definition of Project Finance Indebtedness.

 

“Project Finance Indebtedness”
means:

 

(a)                                      any
Indebtedness of a Project Company incurred to finance the project constituted
by the assets and business of such Project Company or any Indebtedness of such
Project Company incurred to refinance any such aforementioned Indebtedness; and

 

(b)                                     where
neither the persons to whom such Indebtedness is owed (whether or not a Group
Company) nor any other person shall have any recourse whatsoever to any Group
Company (other than such Project Company) for the repayment or payment of any
sum relating to such Indebtedness other than recourse directly or indirectly to
any Group Company under any form of assurance or undertaking, which
recourse (1) is limited to the enforcement of any share pledge granted by
a Group Company over its shares in such Project Company or the enforcement of
any security granted over a shareholder loan between a Group Company and such
Project Company and/or (2) is limited to a claim for damages for breach of
an obligation (not being a payment obligation) of the person against whom that
recourse is available and/or (3) entitles the creditor for that
Indebtedness or the relevant Project Company, upon default

 

13

 

by the Project Company (or in other circumstances specified in the
documentation relating to the project) to require a payment to be made (whether
to or for the benefit of that creditor, the Project Company or another person),
provided that, in the case of (3),
where that payment is capable of being for an amount which is material either
alone or as a percentage of the Indebtedness financing that project, such
recourse is capable of being called on only during the period on or prior to
practical completion of the project or of that portion of that project being
financed by that Indebtedness; or

 

(c)                                      which
the Majority Lenders shall have agreed to treat as Project Finance Indebtedness
for the purposes of this Agreement.

 

“Qualifying Lender” has
the meaning given to such term in Clause 13.1 (Definitions).

 

“Qualifying Subsidiary”
means any Subsidiary of ABB that is incorporated in an Agreed Jurisdiction.

 

“Quotation Day” means, in
relation to any period for which an interest rate is to be determined (other
than in respect of a Swingline Advance):

 

(a)                                      (if
the currency is Sterling) the first day of that period;

 

(b)                                     (if
the currency is Euro) two TARGET Days before the first day of that period; or

 

(c)                                      (for
any other currency) two Business Days (which for these purposes only shall mean
a day on which banks are open for general business in London) before the first
day of that period,

 

unless market practice differs in the Relevant Interbank Market for a
currency, in which case the Quotation Day for that currency will be determined
by the Facility Agent in accordance with market practice in the Relevant
Interbank Market (and if quotations would normally be given by leading banks in
the Relevant Interbank Market on more than one day, the Quotation Day will be
the last of those days).

 

“Reference Banks” means,
other than in relation to STIBOR, the principal London offices of Citibank,
N.A., Credit Suisse, Barclays Bank PLC and HSBC Bank plc and, in relation to
STIBOR, the principal London offices of Nordea Bank AB (publ), Skandinaviska
Enskilda Banken AB and Svenska Handesbanken AB, or such other banks as may be
appointed by the Facility Agent in consultation with ABB.

 

“Relevant Interbank Market”
means in relation to Euro, the European interbank market and, in relation to
any other currency, the London interbank market.

 

“Reservations” means any
general principles of law which are set out as qualifications as to matters of
law in any legal opinion delivered to the Facility Agent under Schedule 2
(Conditions Precedent).

 

“Resignation Letter” means
a letter substantially in the form set out in Schedule 8 (Form of Resignation Letter).

 

14

 

“Revolving Advance” means
an advance made or to be made under the Facility (including, unless the context
otherwise requires, any Dollar Swingline Advance, Euro Swingline Advance or SEK
Swingline Advance) or the principal amount outstanding for the time being of
that advance.

 

“Rollover Advance” means
one or more Advances (other than Swingline Advances):

 

(a)                                      made
or to be made on the same day that a maturing Advance is due to be repaid;

 

(b)                                     the
aggregate amount of which is equal to or less than the maturing Advance;

 

(c)                                      in
the same currency as the maturing Advance (unless it arose as a result of the
operation of Clause 6.2 (Unavailability of a
currency)); and

 

(d)                                     made
or to be made to a Borrower for the purpose of refinancing a maturing Advance
made to such Borrower.

 

“S&P” means Standard &
Poor’s Ratings Group, a division of The McGraw-Hill Companies or any successor
thereto.

 

“Screen Rate” means:

 

(a)                                      in
relation to LIBOR, the British Bankers Association Interest Settlement Rate for
the relevant currency and period;

 

(b)                                     in
relation to EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant period; and

 

(c)                                      in
relation to STIBOR, the percentage rate per annum for the relevant period,

 

displayed on the appropriate page of the Telerate screen. If the
agreed page is replaced or service ceases to be available, the Facility
Agent may specify another page or service displaying the appropriate
rate after consultation with ABB and the Lenders.

 

“Securitisations” means:

 

(a)                                      the
securitisation programme established by various Group Companies and Toedi
Limited and currently including Credit Suisse, New York Branch as Programme
Administrator, such programme being initially established on 19 December 2000;

 

(b)                                     the
securitisation programme established by various Group Companies and arranged by
Citibank, N.A. (as operating agent) such programme being initially established
on or around 17 December 1999;

 

(c)                                      any
other local or global securitisation programme from time to time established
(including as of the date of this Agreement) by any Group Company,

 

each as may be modified, supplemented, renewed, substituted,
varied or amended.

 

15

 

“Security” means any
mortgage, charge, assignment by way of security, pledge, hypothecation, lien
and any other security interest of any kind whatsoever.

 

“SEK Swingline Advance”
means any advance made or to be made under the SEK Swingline Facility pursuant
to a Utilisation Request under Clause 5.5 (Delivery
of a Utilisation Request for a Swingline Advance).

 

“SEK Swingline Commitment”
means:

 

(a)                                      in
relation to an Original Lender which is a SEK Swingline Lender, the amount (in
the Base Currency) set opposite its name under the heading “SEK Swingline Commitment” in Part IV
of Schedule 1 (The SEK Swingline
Lenders) and the amount of any other SEK Swingline Commitment
transferred to it under this Agreement; and

 

(b)                                     in
relation to any other SEK Swingline Lender, the amount of any SEK Swingline
Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this
Agreement.

 

“SEK Swingline Facility”
means the SEK swingline facility forming part of the Facility as described
in paragraph (a)(iii) of Clause 2.1 (The
Facility).

 

“SEK Swingline Lender”
means:

 

(a)                                      any
Original Lender whose name is set out in Part IV of Schedule 1 (The SEK Swingline Lenders); and

 

(b)                                     any
bank which has become a Party as a Lender in accordance with Clause 24 (Changes to the Lenders) and to whom a SEK
Swingline Commitment has been transferred,

 

which in each case has not ceased to have a SEK Swingline Commitment.

 

“SEK Swingline Rate”
means, at any time the aggregate of the applicable:

 

(a)                                      Margin
per annum; and

 

(b)                                     the
arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the SEK Swingline Agent at its request by the Reference Banks to
leading banks in the European interbank market as of 11.00 a.m. Stockholm
time on the Utilisation Date for that SEK Swingline Loan for the offering of
deposits in SEK for a period comparable to the Interest Period for the relevant
SEK Swingline Loan and for settlement on that day; and

 

(c)                                      the
Mandatory Cost (if any).

 

“Specified Time” means a
time determined in accordance with Schedule 6 (Timetables).

 

16

 

“STIBOR” means in relation
to any Advance in SEK:

 

(a)                                      the
applicable Screen Rate; or

 

(b)                                     (if
no Screen Rate is available for the relevant currency or the period of that
Advance), the arithmetic mean (rounded upward to four decimal places) of the
rates, as supplied to the Facility Agent at its request, quoted by the
Reference Banks to leading banks in the Stockholm interbank market,

 

as of the Specified Time on the Quotation Day for the offering of
deposits in Swedish Krona for a period comparable to the Interest Period for
that Advance.

 

“Subsidiary” means a
subsidiary within the meaning of section 736 of the Companies Act 1985.

 

“Swingline Advance” means
a Dollar Swingline Advance, a Euro Swingline Advance or a SEK Swingline
Advance.

 

“Swingline Agents” means
the Dollar Swingline Agent, the Euro Swingline Agent and the SEK Swingline
Agent, and “Swingline Agent” means
any of them.

 

“Swingline Lender” means a
Dollar Swingline Lender, a Euro Swingline Lender or a SEK Swingline Lender.

 

“Swingline Rate” means the
Dollar Swingline Rate, the Euro Swingline Rate or the SEK Swingline Rate as the
context may require.

 

“TARGET” means
Trans-European Automated Real-time Gross Settlement Express Transfer payment
system.

 

“TARGET Day” means any day
on which TARGET is open for the settlement of payments in Euro.

 

“Tax” means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay
in paying any of the same).

 

“Taxes Act” means the
Income and Corporation Taxes Act 1988.

 

“Termination Date” means the
fifth anniversary of the date of this Agreement.

 

“Total Commitments” means
the aggregate Commitments of the Lenders, being $2,000,000,000 at the date of
this Agreement.

 

“Total Outstandings” means
the aggregate from time to time of the Outstandings.

 

“Total Swingline Facility Amount”
means the higher of (a) the aggregate Dollar Swingline Commitments, (b) the
aggregate Euro Swingline Commitments and (c) the aggregate SEK Swingline
Commitments, being $750,000,000 as at the date of this Agreement.

 

17

 

“Transfer Certificate”
means a certificate substantially in the form set out in Schedule 5 (Form of Transfer Certificate) or any
other form agreed between the Facility Agent and ABB.

 

“Transfer Date” means, in relation
to a transfer, the later of:

 

(a)                                      the
proposed Transfer Date specified in the Transfer Certificate; and

 

(b)                                     the
date on which the Facility Agent executes the Transfer Certificate.

 

“Trigger Date” means the
date on which ABB obtains an Investment Grade Rating.

 

“Unpaid Sum” means any sum
due and payable but unpaid by a Borrower under the Finance Documents.

 

“Utilisation” means a
utilisation of the Facility.

 

“Utilisation Date” means
the date of a Utilisation, being the date on which an Advance is to be made.

 

“Utilisation Request”
means a notice substantially in the form set out in Schedule 3 (Utilisation Request).

 

“VAT” means value added
tax as provided for in the Value Added Tax Act 1994 and any other tax of a
similar nature.

 

“Verifiable PMP” means a
PMP whose status as such may be determined on the basis of:

 

(a)                                      its
entry in Dutch public register (including on-line registers available on the
internet) as referred to in Clauses 1.e.1 through 1.e.5 of the Exemption
Regulation; or

 

(b)                                     a
public register published by a regulator of a country as referred to in Clause
1.e.11 of the Exemption Regulation exercising prudential supervision over the
PMP to the extent generally accessible via the internet.

 

“WTK” means the Dutch Act
on the Supervision of Credit Institutions 1992 (Wet toezicht kredietwezen 1992) (as amended from time to
time).

 

1.2                           Construction

 

(a)                                      Any
reference in this Agreement to:

 

(i)                        “assets” includes present and future
properties, revenues and rights of every description;

 

(ii)                     “Barclays Capital” is a reference to
Barclays Capital, the investment banking division of Barclays Bank PLC;

 

(iii)                  the “European interbank market” means the
interbank market for Euro operating in Participating Member States;

 

18

 

(iv)                a “Finance Document” or any other agreement or
instrument is a reference to that Finance Document or other agreement or
instrument as amended or novated;

 

(v)                    a “person” includes any person, firm, company,
corporation, government, state or agency of a state or any association, trust
or partnership (whether or not having separate legal personality) or two or
more of the foregoing;

 

(vi)                 a “regulation” includes any regulation, rule,
official directive, request or guideline (whether or not having the force of
law but, if not having the force of law, the compliance with which is
customary) of any governmental, intergovernmental or supranational body,
agency, department or regulatory, self-regulatory or other authority or
organisation;

 

(vii)              a “financial year” in relation to ABB, means a
period in respect of which it is required to produce annual audited financial
statements;

 

(viii)           a provision of law is a
reference to that provision as amended or re-enacted; and

 

(ix)                   unless a contrary
indication appears, a time of day is a reference to London time.

 

(b)                                     Where
there is a reference in this Agreement to any amount, limit or threshold
specified in Dollars, in ascertaining whether or not that amount, limit or
threshold has been attained, broken or achieved, as the case may be, a
non-Dollar amount shall, unless the context otherwise requires or the contrary
is indicated, be counted on the basis of the equivalent in Dollars of that
amount using the Facility Agent’s Spot Rate of Exchange.

 

(c)                                      Section,
Clause and Schedule headings are for ease of reference only.

 

(d)                                     Unless
a contrary indication appears, a term used in any other Finance Document or in
any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

 

(e)                                      A
Default is “continuing” if it has
not been remedied or waived.

 

(f)                                        For the avoidance of doubt, if Moody’s or S&P place a Credit
Rating on credit watch, that shall not (regardless of outlook) constitute a change
in such Credit Rating or be deemed to be no Credit Rating.

 

1.3                           Dutch Terms

 

In this Agreement, where it relates to a Dutch entity, a reference to:

 

(a)                                      a
necessary action to authorise where applicable, includes without limitation:

 

19

 

(i)                        any action
required to comply with the Dutch Works Councils Act (Wet op de ondernemingsraden); and

 

(ii)                     obtaining an
unconditional positive advice (advies)
from the competent works council(s);

 

(b)                                     a
winding-up, administration or dissolution includes a Dutch entity being:

 

(i)                        declared
bankrupt (failliet verklaard);

 

(ii)                     dissolved (ontbonden);

 

(c)                                      a
moratorium includes surséance van betaling and
granted a moratorium includes surséance
verleend;

 

(d)                                     a
trustee in bankruptcy includes a curator;

 

(e)                                      an
administrator includes a bewindvoerder;

 

(f)                                        a(n) (administrative) receiver does not include a curator or bewindvoerder; and

 

(g)                                     an
attachment includes a beslag.

 

1.4                           Currency Symbols and Definitions

 

“$” and “Dollars” denote the lawful currency of the
United States of America, “£” and “Sterling” denote the lawful currency of the
United Kingdom, “Euro” denotes the
single currency unit of the European Union as constituted by the Treaty of Rome
(as amended) and “SEK” denotes the
lawful currency of Sweden.

 

1.5                           Third Party Rights

 

A person who is not a Party has no right under the Contract (Rights of
Third Parties) Act 1999 to enforce any term of this Agreement.

 

20

 

SECTION 2

THE FACILITY

 

2.                                 THE FACILITY

 

2.1                           The Facility

 

(a)                                      Subject
to the terms of this Agreement, the Lenders make available to the Borrowers, a
multicurrency revolving credit facility (the “Facility”)
in a maximum aggregate amount of $2,000,000,000, including within it the
following sub-facilities:

 

(i)                        a Dollar
revolving swingline facility (the “Dollar
Swingline Facility”) in a maximum aggregate amount equal to the
aggregate Dollar Swingline Commitments;

 

(ii)                     a Euro revolving
swingline facility (the “Euro Swingline
Facility”) in a maximum Base Currency Amount equal to the aggregate
Euro Swingline Commitments; and

 

(iii)                  a SEK revolving
swingline facility (the “SEK Swingline
Facility”) in a maximum Base Currency Amount equal to the aggregate
SEK Swingline Commitments.

 

(b)                                     A
Borrower shall only be entitled to utilise the Facility for so long as it is a
Qualifying Subsidiary.

 

2.2                           Lenders’ rights and obligations

 

(a)                                      The
obligations of each Lender under the Finance Documents are several. Failure by
a Lender to perform its obligations under the Finance Documents does not
affect the obligations of any other Party under the Finance Documents. No
Finance Party is responsible for the obligations of any other Finance Party
under the Finance Documents.

 

(b)                                     The
rights of each Lender under or in connection with the Finance Documents are
separate and independent rights and any debt arising under the Finance
Documents to a Lender from any of the Obligors shall be a separate and
independent debt.

 

(c)                                      A
Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

 

2.3                           Facility Offices

 

(a)                                      Subject
to paragraph (b) below, a Lender may (i) change its Facility
Office for the purpose of this Agreement and/or (ii) nominate a different
Facility Office for the purposes of making a particular Advance or particular
type of Advance to any Borrower, in which event such Facility Office shall for
the purposes of this Agreement be its Facility Office for that Advance or that
type of Advance but not otherwise.

 

21

 

(b)                                     If
a Lender changes its Facility Office or nominates a different Facility Office, (i) that
Lender will notify the Facility Agent and ABB promptly (and, in any event,
within 5 Business Days) of such change or, as the case may be, nomination,
and until it does so, the Facility Agent and ABB will be entitled to assume
that no such change has taken place and (ii) if the country of such
Facility Office is not subject to the Financial Action Task Force any such
change or, as the case may be, nomination shall be subject to the prior
written consent of the Facility Agent.

 

2.4                           Obligors’ right and obligations hereunder

 

(a)                                      Each
Obligor (other than ABB) by its execution of this Agreement or an Accession
Letter irrevocably appoints ABB to act on its behalf as its agent in relation
to the Finance Documents (in this capacity, the “Obligors’ Agent”) and irrevocably authorises (i) ABB on
its behalf to supply all information concerning itself contemplated by this
Agreement to the Finance Parties and to give all notices and instructions
(including, in the case of a Borrower, Utilisation Requests), to execute on its
behalf any Accession Letter and to make such agreements capable of being given
or made by any Obligor notwithstanding that they may affect such Obligor,
without further reference to or the consent of such Obligor and (ii) each
Finance Party to give any notice, demand or other communication to such Obligor
pursuant to the Finance Documents to ABB on its behalf, and in each case such
Obligor shall be bound thereby as though such Obligor itself had given such
notices and instructions (including, without limitation, any Utilisation
Requests) or executed or made such agreements or received any such notice,
demand or other communication.

 

(b)                                     Every
act, omission, agreement, undertaking, settlement, waiver, notice or other
communication given or made by the Obligors’ Agent or given to the Obligors’
Agent under this Agreement, or in connection with this Agreement (whether or
not known to any other Obligor and whether occurring before or after such other
Obligor became an Obligor under this Agreement) shall be binding for all
purposes on all other Obligors as if the other Obligors had expressly made,
given or concurred with the same. In the event of any conflict between any
notices or other communications of the Obligors’ Agent and any other Obligor,
those of the Obligors’ Agent shall prevail.

 

(c)                                      An
Obligors’ Agent may resign its appointment hereunder by giving not less
than ten Business Days’ prior written notice to that effect to the Facility
Agent, provided that no such
resignation shall be effective until a successor consents in writing to the
Facility Agent to be appointed.

 

3.                                 PURPOSE

 

3.1                          Purpose

 

The Borrowers shall apply all amounts borrowed by it under the Facility
for the general corporate purposes of the Group, including, without limitation,
back-stop

 

22

 

financing for commercial paper facilities of the Group, provided that no Swingline Advance shall be
used to refinance another Swingline Advance.

 

3.2                           Monitoring

 

No Finance Party is bound to monitor or verify the application of any
amount borrowed pursuant to this Agreement.

 

4.                                 CONDITIONS OF UTILISATION

 

4.1                          Initial conditions precedent

 

(a)                                      No
Utilisation Request may be served unless the Facility Agent has received
all of the documents and other evidence listed in Part I of Schedule 2
(Conditions Precedent) in form and
substance reasonably satisfactory to the Facility Agent.

 

(b)                                     The
Facility Agent shall notify ABB and the Lenders promptly upon the conditions
set out in paragraph (a) of this Clause 4.1 being satisfied.

 

4.2                           Further conditions precedent

 

(a)                                      The
Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) and Clause 5.8 (Swingline Lenders’ Participation) if on
the date of the Utilisation Request and on the proposed Utilisation Date (in
each case other than in the case of a Rollover Advance):

 

(i)                        no Default is
continuing or would result from the proposed Advance;

 

(ii)                     the
representations to be made by ABB pursuant to Clause 19.15 (Repetition) are true in all respects; and

 

(iii)                  such proposed
Utilisation Date is not within 30 days of ABB providing notice to the Facility
Agent in accordance with paragraph (a) of Clause 8.3 (Mandatory Prepayment on Change of Control).

 

(b)                                     An
Advance will not be made if it would result in the Base Currency Amount of all
Advances exceeding the Total Commitments.

 

4.3                           Conditions relating to Optional Currencies

 

A currency will constitute an Optional Currency in relation to an
Advance if it is SEK or Euro, or it is readily available in the amount required
and freely convertible into the Base Currency in the Relevant Interbank Market
on the Quotation Day and the Utilisation Date for that Advance provided that there may not at any
time be Advances outstanding denominated in more than 5 Optional Currencies.

 

4.4                           Maximum number of Advances

 

(a)                                      No
Borrower may deliver a Utilisation Request if as a result of the proposed
Utilisation more than 10 Advances would be outstanding.

 

(b)                                     Any
Advance made by a single Lender under Clause 6.2 (Unavailability of a currency) shall not be taken into
account in this Clause 4.4.

 

23

 

SECTION 3

UTILISATION

 

5.                                 UTILISATION

 

5.1                           Delivery of a Utilisation Request

 

A Borrower may utilise the Facility (other than for the purpose of
drawing Swingline Advances, which may be drawn in accordance with Clause
5.5 (Delivery of a Utilisation Request for a
Swingline Advance) by delivery to the Facility Agent of a duly
completed Utilisation Request not later than the Specified Time.

 

5.2                           Completion of a Utilisation Request

 

(a)                                      Each
Utilisation Request delivered to the Facility Agent pursuant to Clause 5.1 (Delivery of a Utilisation Request) is
irrevocable and will not be regarded as having been duly completed unless:

 

(i)                        the proposed
Utilisation Date is a Business Day within the Availability Period;

 

(ii)                     the currency and
amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

 

(iii)                  the proposed
Interest Period complies with Clause 10 (Interest
Periods).

 

(b)                                     Only
one Advance may be requested in each Utilisation Request delivered to the
Facility Agent pursuant to Clause 5.1 (Delivery
of a Utilisation Request).

 

5.3                           Currency and amount

 

(a)                                      The
currency specified in a Utilisation Request delivered to the Facility Agent
pursuant to Clause 5.1 (Delivery of a
Utilisation Request) must, in the case of any Revolving Advance (not
being a Swingline Advance), be the Base Currency or an Optional Currency.

 

(b)                                     The
amount of the proposed Advance must be:

 

(i)                        if the
currency selected is the Base Currency, a minimum of $50,000,000 and an
integral multiple of $10,000,000; or

 

(ii)                     if the currency
selected is Euro, a minimum of Euro50,000,000 and an integral multiple of
Euro10,000,000; or

 

(iii)                  if the currency
selected is SEK, a minimum amount of SEK25,000,000 and an integral multiple of
SEK5,000,000; or

 

(iv)                 if the currency
selected is an Optional Currency (other than SEK or Euro), in such minimum
amount and multiple as the Facility Agent and ABB may agree,

 

or, in any case, the amount of the Available Facility.

 

24

 

5.4                           Lenders’ participation

 

(a)                                      Subject
to the other terms of this Agreement, each Lender shall, on the relevant
Utilisation Date, make its participation in each Advance available through its
Facility Office.

 

(b)                                     Subject
to Clause 6.2 (Unavailability of a currency),
the amount of each Lender’s participation in each Revolving Advance (not being
a Swingline Advance) will be equal to the proportion borne by its Available
Commitment to the Available Facility immediately prior to making the Advance.

 

(c)                                      The
Facility Agent shall notify each relevant Lender of the amount, currency and
the Base Currency Amount of each Advance at the Specified Time.

 

5.5                           Delivery of a Utilisation Request for a Swingline
Advance

 

The Borrowers may utilise the Dollar Swingline Facility, the Euro
Swingline Facility or the SEK Swingline Facility by delivery to the relevant
Swingline Agent (with a copy to the Facility Agent) of a duly completed
Utilisation Request not later than the Specified Time.

 

5.6                           Completion of a Utilisation Request for a Swingline
Advance

 

(a)                                      Each
Utilisation Request delivered pursuant to Clause 5.5 (Delivery of a Utilisation Request for a Swingline
Advance) is irrevocable and will not be regarded as having been duly
completed unless:

 

(i)                        it specifies
whether the Swingline Advance is to be a Dollar Swingline Advance, a Euro
Swingline Advance or a SEK Swingline Advance;

 

(ii)                     the proposed
Utilisation Date is a Business Day within the Availability Period;

 

(iii)                  the currency and
amount of the Utilisation comply with Clause 5.7 (Currency and amount); and

 

(iv)                 the proposed Interest
Period complies with Clause 10 (Interest
Periods).

 

(b)                                     Only
one Swingline Advance may be requested in each Utilisation Request
delivered pursuant to Clause 5.5 (Delivery
of a Utilisation Request for a Swingline Advance).

 

5.7                           Currency and amount

 

(a)                                      The
currency specified in a Utilisation Request delivered pursuant to Clause 5.5 (Delivery of a Utilisation Request for a Swingline
Advance) must be Dollars (in the case of a Dollar Swingline Advance)
or Euro (in the case of a Euro Swingline Advance) or SEK (in the case of a SEK
Swingline Advance).

 

(b)                                     The
amount of the proposed Swingline Advance must be:

 

(i)                        in the case of
a Dollar Swingline Advance, a minimum of $50,000,000 and an integral multiple
of $10,000,000 or, if less, the Available Dollar Swingline Facility;

 

25

 

(ii)                     in the case of a
Euro Swingline Advance, a minimum of Euro 50,000,000 and an integral multiple
of Euro 10,000,000 or, if less, the Available Euro Swingline Facility; or

 

(iii)                  in the case of a SEK
Swingline Advance, a minimum of SEK25,000,000 and an integral multiple of
SEK5,000,000 or, if less, the Available SEK Swingline Facility.

 

(c)                                      The
amount of a proposed Dollar Swingline Advance or, as the case may be, the
Base Currency Amount of a proposed Euro Swingline Advance or, as the case may be,
the Base Currency Amount of a proposed SEK Swingline Advance must not, when
aggregated with the Base Currency Amount of all outstanding Swingline Advances,
exceed the Total Swingline Facility Amount and the Base Currency Amount of a
proposed SEK Swingline Advance must not, when aggregated with the Base Currency
Amount of all outstanding SEK Swingline Advances, exceed $200,000,000.

 

5.8                           Swingline Lenders’ participation

 

(a)                                      If
the conditions set out in this Agreement have been met, each Dollar Swingline
Lender (in the case of a Dollar Swingline Advance), Euro Swingline Lender (in
the case of a Euro Swingline Advance) or SEK Swingline Lender (in the case of a
SEK Swingline Advance) shall, on the relevant Utilisation Date, make its
participation in each Dollar Swingline Advance (or Euro Swingline Advance or
SEK Swingline Advance as applicable) available through its Facility Office.

 

(b)                                     The
amount of each Swingline Lender’s participation in each Dollar Swingline
Advance, Euro Swingline Advance or SEK Swingline Advance will be equal to the
proportion borne by its Available Dollar Swingline Commitment or, as the case may be,
Available Euro Swingline Commitment or, as the case may be, Available SEK
Swingline Commitment to the Available Dollar Swingline Facility or, as the case
may be, Available Euro Swingline Facility or as the case may be,
Available SEK Swingline Facility immediately prior to making the Dollar
Swingline Advance (or Euro Swingline Advance or SEK Swingline Advance, as
applicable).

 

(c)                                      The
relevant Swingline Agent shall notify each relevant Swingline Lender of the
amount, currency and the Base Currency Amount of each Swingline Advance at the
Specified Time.

 

5.9                           Automatic Revolving Advance

 

(a)                                      In
the event that a Borrower does not repay a Swingline Advance made to it in full
on the last day of its Interest Period, on the Business Day falling 3 Business
Days prior to such day, that Borrower shall be deemed to have served a
Utilisation Request for a Revolving Advance (not being a Swingline Advance) to
be made on such day in the amount and currency of such Swingline Advance and
with an Interest Period of 1 week and such Revolving Advance shall be made on
such day in accordance with Clause 5.4 (Lenders’

 

26

 

participation) and the
proceeds thereof applied in repayment of the said Swingline Advance.

 

(b)                                     Paragraph
(a) of Clause 4.2 (Further conditions
precedent) shall not apply to any Revolving Advance to which this
Clause 5.9 refers.

 

6.                                 OPTIONAL CURRENCIES

 

6.1                           Selection of currency

 

The relevant Borrower shall select the currency of an Advance in a
Utilisation Request.

 

6.2                           Unavailability of a currency

 

If before the Specified Time on any Quotation Day:

 

(a)                                      the
Facility Agent has received notice from a Lender that the Optional Currency
(other than Euro, Sterling or SEK) requested is not readily available to it in
the amount required; or

 

(b)                                     a
Lender notifies the Facility Agent that compliance with its obligation to
participate in a Revolving Advance in the proposed Optional Currency (other
than Euro, Sterling or SEK) would contravene a law or regulation applicable to
it,

 

the Facility Agent will give notice to the relevant Borrower to that
effect by the Specified Time on that day. In this event, any Lender that gives
notice pursuant to this Clause 6.2 will be required to participate in the
Revolving Advance in the Base Currency (in an amount equal to that Lender’s
proportion of the Base Currency Amount or, in respect of a Rollover Advance, an
amount equal to that Lender’s proportion of the Base Currency Amount of the
maturing Revolving Advance that is due to be repaid) and its participation will
be treated as a separate Revolving Advance denominated in the Base Currency
during that Interest Period.

 

6.3                           Notification

 

The Facility Agent shall notify the Lenders and the relevant Borrower
of Optional Currency amounts (and the applicable Facility Agent’s Spot Rate of
Exchange) promptly after they are ascertained.

 

27

 

SECTION 4

REPAYMENT, PREPAYMENT AND
CANCELLATION

 

7.                                REPAYMENT

 

7.1                           Repayment of Revolving Advances

 

(a)                                      Each
Borrower shall repay each Revolving Advance made to it on the last day of its
Interest Period.

 

(b)                                     All
Advances must be repaid in full on the Termination Date.

 

8.                                 PREPAYMENT AND CANCELLATION

 

8.1                           Lender Illegality

 

If it becomes unlawful in any jurisdiction for a Lender to perform any
of its obligations as contemplated by this Agreement or to fund its
participation in any Advance:

 

(a)                                      that
Lender shall promptly notify the Facility Agent upon becoming aware of that
event;

 

(b)                                     unless
the repayment referred to in paragraph (c) below avoids such unlawfulness,
upon the Facility Agent notifying ABB, the Commitment of that Lender will be
immediately cancelled; and

 

(c)                                      each
Borrower shall, to the extent necessary to avoid such unlawfulness, repay that
Lender’s participation in the Advances made to it on the last day of the
Interest Period for each Advance occurring after the Facility Agent has
notified ABB or, if earlier, the date specified by the Lender in the notice
delivered to the Facility Agent (being no earlier than 5 Business Days after
receipt of such notice or, if earlier, the last day of any applicable grace
period permitted by law).

 

8.2                           Borrower Illegality

 

If it is or becomes unlawful for a Borrower to perform any of its
obligations under the Finance Documents, save where such obligations are not,
or could reasonably be considered not to be, material to the interests of the
Lenders under the Finance Documents, that Borrower shall within 15 Business
Days of being served with notice by the Facility Agent so to do, repay all
Advances, together with accrued interest and all other amounts owing by it
under the Finance Documents.

 

8.3                           Mandatory Prepayment on Change of Control

 

If any person (whether alone or together with any associated person)
becomes the beneficial owner of shares in the issued share capital of ABB
carrying the right to more than 50% of the votes exercisable at a general
meeting of ABB:

 

(a)                                      ABB
shall promptly notify the Facility Agent upon becoming aware of that event; and

 

(b)                                     if
within 15 days following such notification to the Facility Agent any Lender so
requests (by delivering a notice to ABB through the Facility Agent), each 

28

 

Borrower
shall, no later than 15 days following such request, prepay that Lender’s
portion of all outstanding Advances, together with accrued interest thereon and
all other amounts owing to such Lender hereunder and cancel that Lender’s
Commitments.

 

For the
purposes of this Clause 8.3, “associated
person” means, in relation to any person, a person who is (i) “acting in concert” (as defined in the City
Code on Takeovers and Mergers) with that person or (ii) a “connected person” (as defined in section 839
of the Income and Corporate Taxes Act 1988) of that person.

 

8.4                           Voluntary cancellation

 

ABB may, if it gives the Facility Agent not less than 5 Business Days’
(or such shorter period as the Majority Lenders may agree) prior notice,
cancel the whole or any part (being a minimum amount of $25,000,000 and an
integral multiple of $10,000,000) of the Available Facility, the Available
Dollar Swingline Facility, the Available Euro Swingline Facility or the
Available SEK Swingline Facility. Any cancellation under this Clause 8.4 shall
reduce rateably the Commitments, the Dollar Swingline Commitments, the Euro
Swingline Commitments or, as the case may be, the SEK Swingline
Commitments.

 

8.5                           Voluntary Prepayment

 

A Borrower may, if it gives the Facility Agent not less than 5 Business
Days’ (in the case of any Advance other than a Swingline Advance) or 1 Business
Day’s (in the case of any Swingline Advance) (or in either case such shorter
period as the Majority Lenders may agree) prior notice, prepay the whole
or any part of an Advance made to it (but if in part, being an amount that
reduces the Base Currency Amount of the Advance by a minimum amount of
$25,000,000 and rounded as the Facility Agent may reasonably require).

 

8.6                           Right of repayment and cancellation in relation to a
single Lender

 

(a)                                      If:

 

(i)                        any sum
payable to any Lender by ABB or an Obligor is required to be increased under
paragraph (c) of Clause 13.2 (Tax
gross-up); or

 

(ii)                     any Lender claims
indemnification from ABB or a Borrower under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs),

 

then ABB may, whilst the circumstance giving rise to the requirement or
indemnification continues, give the Facility Agent notice of cancellation of
the Commitment of that Lender and its intention to procure the repayment of
that Lender’s participation in the Advances.

 

(b)                                     On
receipt of a notice referred to in paragraph (a) above, the Commitment of
that Lender shall immediately be reduced to zero.

 

(c)                                      On
the last day of each Interest Period in respect of an Advance which ends after
ABB has given notice under paragraph (a) above (or, if earlier, the date 

 

29

 

specified
by ABB in that notice), each Borrower to whom an Advance is outstanding shall
repay that Lender’s participation in that Advance.

 

8.7                           Restrictions

 

(a)                                      Any
notice of cancellation or prepayment given by any Party under this Clause 8
shall be irrevocable and, unless a contrary indication appears in this
Agreement, shall specify the date or dates upon which the relevant cancellation
or prepayment is to be made and the amount of that cancellation or prepayment.

 

(b)                                     Any
prepayment under this Agreement shall be made together with accrued interest on
the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

(c)                                      Unless
a contrary indication appears in this Agreement, any part of the Facility
which is prepaid may be reborrowed in accordance with the terms of this
Agreement.

 

(d)                                     No
Borrower shall repay or prepay all or any part of the Advances or cancel
all or any part of the Commitments except at the times and in the manner
expressly provided for in this Agreement.

 

(e)                                      No
amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated.

 

(f)                                        If the Facility Agent receives a notice under this Clause 8 it shall
promptly forward a copy of that notice to ABB and the affected Borrower or the
affected Lender, as appropriate.

 

30

 

SECTION 5

COSTS OF
UTILISATION

 

9.                                INTEREST

 

9.1                          Calculation
of interest

 

(a)                                      The rate of interest on each Advance (other than
a Swingline Advance) for each Interest Period is the percentage rate per annum
which is the aggregate of the applicable:

 

(i)                        Margin;

 

(ii)                     IBOR; and

 

(iii)                  Mandatory Cost (if any).

 

(b)                                     The rate of interest on each Swingline Advance
for each Interest Period shall accrue from day to day and is (in the case of
any Dollar Swingline Advance) the Dollar Swingline Rate or (in the case of any
Euro Swingline Advance) the Euro Swingline Rate or (in the case of any SEK
Swingline Advance) the SEK Swingline Rate.

 

9.2                          Payment of
interest

 

Each Borrower shall pay accrued interest on
each Advance made to it on the last day of each Interest Period (and, if the
Interest Period is longer than six Months, on the dates falling at six monthly
intervals after the first day of the Interest Period).

 

9.3                          Default
interest

 

(a)                                      If an Obligor fails to pay any amount payable by
it under a Finance Document on its due date, interest shall accrue on the
overdue amount from the due date up to the date of actual payment (both before
and after judgment) at a rate 1.00 per cent higher than the rate which would
have been payable if the overdue amount had, during the period of non-payment,
constituted an Advance (not being a Swingline Advance) in the currency of the
overdue amount for successive Interest Periods, each of a duration selected by
the Facility Agent (acting reasonably). Any interest accruing under this Clause
9.3 shall be immediately payable by the relevant Obligor on demand by the
Facility Agent.

 

(b)                                     Default interest (if unpaid) arising on an
overdue amount will be compounded with the overdue amount at the end of each
Interest Period applicable to that overdue amount but will remain immediately
due and payable.

 

9.4                          Notification
of rates of interest

 

The applicable Agent shall promptly notify the
Lenders, ABB and the relevant Borrowers of the determination of a rate of
interest under this Agreement.

 

9.5                          Minimum
Interest

 

When entering into this Agreement, the Parties
have assumed that the interest payable hereunder is not and will not become
subject to Swiss withholding tax. Therefore, if a

 

31

 

Tax Deduction is required by law to be made in
one of the circumstances set out in paragraph (d) of Clause 13.2 (Tax gross-up) and if paragraph (c) of
Clause 13.2 (Tax gross-up) should
be unenforceable in respect of a Borrower incorporated in Switzerland or, if
different, resident in Switzerland for tax purposes, each Borrower acknowledges
and agrees that:

 

(a)                                      the interest rates set out in and which are
calculated in accordance with Clause 9.1 shall constitute minimum interest
rates, which, if Swiss withholding tax should apply, shall be adjusted to
ensure that any payment of interest due by a Borrower shall be increased to an
amount which (after making any deduction of Swiss withholding tax) results in a
payment to the Lender of an amount equal to the payment which would have been
due had no deduction of Swiss withholding tax been required. For this purpose, the Swiss withholding
tax shall be calculated on the full grossed-up interest amount; and

 

(b)                                     to the extent that paragraph (a) above applies,
each Borrower shall provide to the Lenders the documents required by law or
each applicable double taxation treaty for the Lenders to prepare claims for
the refund of any Swiss withholding tax so deducted.

 

10.                          INTEREST
PERIODS

 

(a)                                      The relevant Borrower may select an Interest
Period for an Advance in the Utilisation Request on 3 Business Days’ written
notice to the Facility Agent from the relevant Borrower.

 

(b)                                     Subject to this Clause 10, a Borrower may select
an Interest Period of:

 

(i)                        in relation to any Advance (other than a
Swingline Advance), 1, 2, 3 or 6 Months or any other period of less than 1
Month to end on the Termination Date or any other period agreed between the
relevant Borrower and the Facility Agent (acting on the instructions of all the
Lenders); or

 

(ii)                     in relation to any Swingline Advance, a period not exceeding
5 Business Days.

 

(c)                                      An Interest Period for an Advance shall not
extend beyond the Termination Date.

 

(d)                                     Each Revolving Advance has one Interest Period
only.

 

11.                          CHANGES TO
THE CALCULATION OF INTEREST

 

11.1                    Absence of
quotations

 

Subject to Clause 11.2 (Market disruption), if the applicable IBOR
or if applicable, the Euro Swingline Rate or the SEK Swingline Rate is to be
determined by reference to the Reference Banks but a Reference Bank does not
supply a quotation by the Specified Time on the Quotation Day, the applicable
IBOR or the Euro Swingline Rate or the

 

32

 

SEK Swingline Rate shall be determined on the
basis of the quotations of the remaining Reference Banks.

 

11.2                    Market
disruption

 

(a)                                      If a Market Disruption Event occurs in relation
to an Advance (other than a Dollar Swingline Advance) for any Interest Period,
then the rate of interest on each Lender’s share of that Advance for the
Interest Period shall be the rate per annum which is the sum of:

 

(i)                        the Margin;

 

(ii)                     the rate notified to the Facility Agent, ABB and the
relevant Borrower by that Lender in a certificate (which sets out the details
of the computation of the relevant rate and shall be prima facie non-binding
evidence of the same) as soon as practicable and in any event before interest
is due to be paid in respect of that Interest Period, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its
participation in that Advance from whatever source it may reasonably select;
and

 

(iii)                  the Mandatory Cost, if any, applicable to that Lender’s
participation in the Advance.

 

(b)                                     In this Agreement “Market Disruption Event” means:

 

(i)                        in relation to an Advance (not being a Swingline
Advance):

 

(A)                at or about noon on the Quotation Day for the relevant
Interest Period the Screen Rate is not available and none or only one of the
Reference Banks supplies a rate to the Facility Agent to determine the applicable
IBOR for the relevant currency and period; or

 

(B)                  before close of business in London on the Quotation Day for
the relevant Interest Period, the Facility Agent receives notifications from a
Lender or Lenders (whose participations in an Advance exceed 50 per cent. of
that Advance) that the cost to it or them of obtaining matching deposits in the
Relevant Interbank Market would be in excess of the applicable IBOR; or

 

(ii)                     in relation to a Euro Swingline Advance or a SEK Swingline
Advance, on the relevant Utilisation Date, none or only one of the Reference
Banks supplies a rate to the Facility Agent to determine the Euro Swingline
Rate or the SEK Swingline Rate, as the case may be.

 

11.3                    Alternative
basis of interest or funding

 

(a)                                      If a Market Disruption Event occurs and the
Facility Agent or ABB so requires, the Facility Agent and ABB shall enter into
negotiations (for a period of not more than thirty days) with a view to
agreeing a substitute basis for determining the rate of interest.

 

33

 

(b)                                     Any alternative basis agreed pursuant to
paragraph (a) above shall, with the prior consent of the Majority Lenders and
ABB, be binding on all Parties.

 

11.4                    Break Costs

 

(a)                                      The relevant Borrower shall, within three
Business Days of demand by a Finance Party, pay to that Finance Party its Break
Costs attributable to all or any part of an Advance or Unpaid Sum being paid by
that Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum.

 

(b)                                     Each Lender shall, as soon as reasonably
practicable after a demand by the Facility Agent, provide to ABB and the
relevant Borrower a certificate (which shall constitute prima facie non-binding
evidence of the matters to which it refers) addressed to the Facility Agent,
ABB and the relevant Borrower confirming the amount of its Break Costs for any
Interest Period in which they accrue and setting out the manner of computing
such Break Costs.

 

12.                          FEES

 

12.1                    Commitment
Fee

 

(a)                                      ABB shall pay to the Facility Agent (for the
account of each Lender) a commitment fee in the Base Currency computed at 35
per cent. per annum of the applicable Margin from time to time on that Lender’s
Available Commitment.

 

(b)                                     The accrued commitment fee is payable on the last
day of each successive period of three Months commencing from the date of this
Agreement and on the last day of the Availability Period and, if a Lender’s
Commitment is cancelled in full, on the amount of that Lender’s Available
Commitment immediately before the cancellation became effective.

 

12.2                    Utilisation
Fee

 

(a)                                      ABB shall pay to the Facility Agent (for the
account of the Lenders pro rata to their Commitments) a utilisation fee in
respect of the Total Outstandings computed at the rate of:

 

(i)                        0.05 per cent. per annum for each day that the
Total Outstandings are in an amount which is greater than 331/3
per cent. but is less than or equal to 662/3 per
cent. of the Total Commitments; or

 

(ii)                     0.10 per cent. per annum for each day that the Total Outstandings
are in an amount greater than 662/3 per cent. of the
Total Commitments.

 

(b)                                     The accrued utilisation fee is payable on the
last day of each successive period of three Months commencing from the date of
this Agreement and on the Termination Date.

 

12.3                    Arrangement
Fee

 

ABB shall pay to the Mandated Lead Arrangers
the fees in the amounts and at the times agreed in a Fee Letter.

 

34

 

12.4                    Agency Fee

 

ABB shall pay to each Agent (for its own
account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

35

 

SECTION 6

ADDITIONAL
PAYMENT OBLIGATIONS

 

13.                          TAX GROSS UP
AND INDEMNITIES

 

13.1                    Definitions

 

(a)                                      In this Agreement:

 

“Initial Borrower Jurisdiction” means any of The Netherlands,
the United States of America or Switzerland.

 

“Protected Party” means a Finance Party which is or will be,
for or on account of Tax, subject to any liability or required to make any
payment in relation to a sum received or receivable (or any sum deemed for the
purposes of Tax to be received or receivable) under a Finance Document.

 

“Qualifying Lender” means:

 

(i)                        in respect of a payment by a Borrower
incorporated in Switzerland, a Lender which is a bank;

 

(ii)                     in respect of a payment by a Borrower incorporated in the
United States of America, a Lender which is:

 

(A)                created or organised under the laws of the United States of
America or of any state (including the District of Columbia) thereof; or

 

(B)                  resident in a jurisdiction having and eligible for the
benefit of a double taxation agreement with the United States of America which
makes provision for full exemption from tax imposed by the United States of
America on interest and which does not carry on a business in the United States
of America through a permanent establishment with which that Lender’s
participation in the Facility is effectively connected; or

 

(C)                  entitled to receive payments under the Finance Documents
without deduction or withholding of any United States federal income taxes,

 

and which has complied with any procedural
requirements within its control necessary to receive such payment without the
imposition of United States withholding tax; or

 

(iii)                  in respect of a payment by a Borrower incorporated in any
jurisdiction except the United States of America or Switzerland, any Lender.

 

“Tax Credit” means a credit against, relief or remission for,
or repayment of any Tax.

 

36

 

“Tax Deduction” means a deduction or withholding for or on
account of Tax from a payment under a Finance Document.

 

“Tax Payment” means an increased payment made by ABB or an
Obligor to a Finance Party under Clause 9.5 (Minimum
Interest), Clause 13.2 (Tax
gross-up) or a payment made by ABB or an Obligor under Clause 13.3 (Tax indemnity).

 

(b)                                     In this Clause 13 a reference to “determines” or “determined” means, save where expressly stated to the
contrary, a determination made in the absolute discretion of the person making
the determination acting in good faith.

 

13.2                    Tax gross-up

 

(a)                                      ABB and each Obligor shall make all payments to
be made by it without any Tax Deduction, unless a Tax Deduction is required by
law.

 

(b)                                     ABB, an Obligor or a Lender shall promptly upon
becoming aware that ABB or an Obligor (as the case may be) must make a Tax
Deduction (or that there is any change in the rate or the basis of a Tax
Deduction) notify the Facility Agent accordingly. If the Facility Agent
receives such notification from a Lender it shall notify ABB and the relevant
Obligor.

 

(c)                                      If a Tax Deduction is required by law to be made
by ABB or an Obligor in one of the circumstances set out in paragraph (d)
below, the amount of the payment due from ABB or that Obligor shall be
increased to an amount which (after making any Tax Deduction) leaves an amount
equal to the payment which would have been due if no Tax Deduction had been
required.

 

(d)                                     The circumstances referred to in paragraph (c)
above are where a person entitled to the payment:

 

(i)                        is the Agent or a Mandated Lead Arranger (on its
own behalf);

 

(ii)                     is a Qualifying Lender; or

 

(iii)                  was a Qualifying Lender at the time it became a Lender but
has ceased to be a Qualifying Lender to the extent that this altered status
results from any change after the date of this Agreement in (or in the
interpretation, administration, or application of) any law or double taxation
agreement or any published practice or published concession of any relevant
taxing authority.

 

(e)                                      If ABB or an Obligor is required to make a Tax
Deduction, it shall make that Tax Deduction and any payment required in
connection with that Tax Deduction within the time allowed and in the minimum
amount required by law.

 

(f)                                        Within 30 days of making either a Tax Deduction
or any payment required in connection with that Tax Deduction, ABB or the
relevant Obligor (as the case

 

37

 

may be) shall deliver to
the Facility Agent for the Finance Party entitled to the payment evidence
reasonably satisfactory to that Finance Party that the Tax Deduction has been
made or (as applicable) any appropriate payment paid to the relevant taxing
authority.

 

(g)                                     Each Finance Party, ABB and the Obligors shall
co-operate in completing any procedural formalities necessary for ABB or an
Obligor to make a payment to which the Finance Party is entitled without a Tax
Deduction or with a reduced Tax Deduction. Each Finance Party shall on the
reasonable written request of ABB or an Obligor complete and deliver to ABB or
that Obligor all documentation reasonably required by ABB or that Obligor in
order to enable it to make such payments without a Tax Deduction or with a
reduced Tax Deduction (so long as the completion or delivery of such
documentation would not materially prejudice the legal or commercial position
of the relevant Finance Party).

 

13.3                    Tax
indemnity

 

(a)                                      ABB or the Obligors shall (within three Business
Days of written demand by the Facility Agent) pay to a Protected Party an
amount equal to the loss, liability or cost which that Protected Party
determines will be or has been (directly or indirectly) suffered for or on
account of Tax by that Protected Party.

 

(b)                                     Paragraph (a) above shall not apply with respect
to any Tax assessed on a Finance Party:

 

(i)                        under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for tax
purposes;

 

(ii)                     under the law of the jurisdiction in which that Finance Party’s
Facility Office is located in respect of amounts received or receivable in that
jurisdiction; or

 

(iii)                  arising by reason of the making of an Advance to a Borrower
in an Initial Borrower Jurisdiction under the law of such jurisdiction, except
to the extent arising by reason of a change in law or in any regulation
occurring after the date of this Agreement, provided
that this paragraph (b)(iii) shall not apply to any Tax assessed or
imposed on an Agent,

 

if that Tax is imposed on or
calculated by reference to the net income received or receivable (including any
sum deemed to be received or receivable) by that Finance Party; or

 

(iv)                 which is compensated for by Clause 9.5 (Minimum Interest) or Clause 13.2 (Tax Gross Up) (or would have been so
compensated but for an exception to those Clauses).

 

38

 

(c)                                      A Protected Party making, or intending to make a
claim pursuant to paragraph (a) above shall promptly notify the Facility Agent
of the event which will give, or has given, rise to the claim, following which
the Facility Agent shall notify ABB.

 

(d)                                     A Protected Party shall, on receiving a payment
from ABB or an Obligor under this Clause 13.3, notify the Facility Agent.

 

13.4                    Tax Credit

 

If ABB or an Obligor makes a Tax Payment and
the relevant Finance Party determines that:

 

(a)                                      a Tax Credit is attributable to that Tax
Payment; and

 

(b)                                     that Finance Party has obtained, utilised and
retained that Tax Credit,

 

the Finance Party shall pay an amount to ABB
(or as the case may be) that Obligor which that Finance Party determines,
acting in good faith, will leave that Finance Party (after that payment) in the
same after-Tax position as it would have been in had the Tax Payment not been
made by ABB or that Obligor (as the case may be). The relevant Finance Party
shall endeavour, acting in good faith, to obtain, utilise and retain the Tax
Credit save that it shall not be obliged to disclose any information relating
to its tax or other affairs or any computations in respect thereof.

 

13.5                    Qualifying
Lenders

 

Any Lender which ceases, for any reason, to be
a Qualifying Lender shall promptly notify ABB and the relevant Obligor(s) of
its change of status.

 

13.6                    Stamp taxes

 

The Borrowers shall pay and, within 3 Business
Days of demand, indemnify each Finance Party against any cost, loss or
liability such Finance Party incurs in relation to all stamp duty, registration
and other similar Taxes payable in respect of any Finance Document, but not in
respect of any assignment or transfer pursuant to Clause 24 (Changes to the Lenders).

 

13.7                    Value added
tax

 

(a)                                      All consideration payable under a Finance
Document by ABB or the Obligors to a Finance Party shall be deemed to be
exclusive of any VAT. If VAT is chargeable on any supply made by any Finance
Party to any Party in connection with a Finance Document, that Party shall pay
to the Finance Party (in addition to and at the same time as paying the
consideration) an amount equal to the amount of the VAT.

 

(b)                                     Where a Finance Document requires ABB or the
Obligors to reimburse a Finance Party for any costs or expenses, ABB or the
Obligors (as the case may be) shall also at the same time pay and indemnify
that Finance Party against all VAT directly incurred by that Finance Party in
respect of the costs or expenses save to the extent that that Finance Party is
entitled to repayment or credit in respect of the VAT.

 

39

 

14.                          INCREASED
COSTS

 

14.1                    Increased
costs

 

(a)                                      Subject to Clause 14.3 (Exceptions) ABB or the Borrowers shall,
within 3 Business Days of a demand by the Facility Agent, pay for the account
of a Finance Party the amount of any Increased Costs incurred by that Finance
Party or any of its Affiliates as a result of (i) the introduction of or any
change in (or in the interpretation or application of) any law or regulation or
(ii) compliance with any law or regulation made after the date of this
Agreement.

 

(b)                                     In this Agreement “Increased Costs” means:

 

(i)                        a reduction in the rate of return from the
Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

 

(ii)                     an additional or increased cost; or

 

(iii)                  a reduction of any amount due and payable under any Finance
Document,

 

which is incurred or suffered by a Finance
Party or any of its Affiliates to the extent that it is attributable to that
Finance Party having entered into its Commitment or funding or performing its
obligations under any Finance Document.

 

14.2                    Increased
cost claims

 

(a)                                      A Finance Party intending to make a claim
pursuant to Clause 14.1 (Increased costs)
shall promptly notify the Facility Agent of the event giving rise to the claim,
following which the Facility Agent shall promptly notify ABB.

 

(b)                                     Each Finance Party shall, as soon as practicable
after a demand by the Facility Agent provide a certificate confirming the
amount of its Increased Costs with (subject to any rights or duties of
confidentiality the relevant Finance Party has in respect of such information)
full supporting details (which certificate shall constitute prima facie
non-binding evidence of the matters to which it relates).

 

14.3                    Exceptions

 

(a)                                      Clause 14.1 (Increased
costs) does not apply to the extent any Increased Cost is:

 

(i)                        attributable to a Tax Deduction required by law
to be made by ABB or an Obligor;

 

(ii)                     compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under
Clause 13.3 (Tax indemnity) but
was not so compensated solely because one of the exclusions in paragraph (b) of
Clause 13.3 (Tax indemnity) applied);

 

(iii)                  not payable as provided in Clause 24.2 (Conditions of Assignment or Transfer);

 

40

 

(iv)                 compensated for by the payment of the Mandatory Cost;

 

(v)                    attributable to the breach by the relevant Finance Party or
its Affiliates of any law or regulation; or

 

(vi)                 not notified to ABB within 3 months of being incurred.

 

(b)                                     In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning given
to the term in Clause 13.1 (Definitions).

 

15.                          OTHER
INDEMNITIES

 

15.1                    Currency
indemnity

 

(a)                                      If any sum due from ABB or an Obligor under the
Finance Documents (a “Sum”), or
any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

 

(i)                        making or filing a claim or proof against ABB or
any of the Obligors;

 

(ii)                     obtaining or enforcing an order, judgment or award in
relation to any litigation or arbitration proceedings,

 

ABB or that Obligor (as the
case may be) shall as an independent obligation, within 3 Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost,
loss or liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the
First Currency into the Second Currency and (B) the rate or rates of exchange
available to that person at the time of its receipt of that Sum.

 

(b)                                     ABB and each Obligor waives any right it may
have in any jurisdiction to pay any amount under the Finance Documents in a
currency or currency unit other than that in which it is expressed to be
payable.

 

15.2                    Other
indemnities

 

ABB or the Obligors shall indemnify each Lender
upon presentation of duly documented evidence thereof against any cost, loss or
liability directly incurred by that Lender as a result of:

 

(a)                                      the occurrence of any Event of Default (but
excluding any costs of enforcement save as provided in Clause 17.3 (Enforcement Costs));

 

(b)                                     a failure by ABB or an Obligor to pay any amount
due under a Finance Document on its due date, including without limitation, any
cost, loss or liability arising as a result of Clause 28 (Sharing among the Lenders);

 

(c)                                      funding, or making arrangements to fund, its
participation in an Advance requested by a Borrower in a Utilisation Request
but not made by reason of

 

41

 

the operation of any one
or more of the provisions of this Agreement (other than by reason of default,
negligence or wilful misconduct by that Lender alone); or

 

(d)                                     an Advance (or part of an Advance) not being
prepaid in accordance with a notice of prepayment given by a Borrower.

 

15.3                    Indemnity to
the Facility Agent

 

ABB or the Borrowers shall promptly indemnify
the Facility Agent, upon presentation of duly documented evidence thereof,
against any reasonable cost, loss or liability properly and directly incurred
by the Facility Agent (acting reasonably) as a result of:

 

(a)                                      investigating any event which it reasonably
believes is a Default; or

 

(b)                                     entering into or performing any foreign exchange
contract for the purposes of Clause 6 (Optional
Currencies); or

 

(c)                                      acting or relying on any notice, request or
instruction which it reasonably believes (after due enquiry) to be genuine,
correct and appropriately authorised.

 

16.                          MITIGATION
BY THE LENDERS

 

16.1                    Mitigation

 

(a)                                      Each Finance Party shall, in consultation with
ABB, take all reasonable steps to mitigate any circumstances which arise and
which would result in any amount becoming payable under or pursuant to, or
cancelled pursuant to, any of Clause 8.1 (Lender
Illegality), Clause 13 (Tax
gross-up and indemnities) or Clause 14 (Increased costs) or which would result in any increased
amount being payable under this Agreement by reason of a change in the
Mandatory Cost or a change in the reserve requirements imposed by the European
Central Bank after the date of this Agreement including (but not limited to)
transferring its rights and obligations under the Finance Documents to another
Affiliate or Facility Office (in each case in accordance with the terms hereof)
and, in such circumstances a Lender will, at the request of ABB but subject to
ABB indemnifying it for the costs of so doing, transfer its rights and
obligations under the Finance Documents to another Lender.

 

(b)                                     Paragraph (a) above does not in any way limit
the obligations of the Obligors under the Finance Documents.

 

16.2                    Limitation
of liability

 

(a)                                      ABB or the Borrowers shall indemnify each
Finance Party, upon presentation of duly documented evidence thereof, for all
costs and expenses reasonably and directly incurred by that Finance Party as a
result of steps taken by it under Clause 16.1 (Mitigation).

 

(b)                                     A Finance Party is not obliged to take any steps
under Clause 16.1 (Mitigation)
(other than a transfer of its rights and obligations to another

 

42

 

Lender where ABB or a
Borrower indemnifies it for the cost of so doing) if, in the opinion of that
Finance Party (acting reasonably), to do so could reasonably be expected to be
prejudicial to it.

 

17.                          COSTS AND
EXPENSES

 

17.1                    Transaction
expenses

 

ABB or the Borrowers shall promptly on demand
pay, upon presentation of duly documented evidence thereof, the Agents and the
Mandated Lead Arrangers the amount of all costs and expenses (including legal
fees) reasonably and directly incurred by any of them in connection with the
negotiation, preparation, printing, execution and syndication of:

 

(a)                                      this Agreement and any other documents referred
to in this Agreement; and

 

(b)                                     any other Finance Documents executed after the
date of this Agreement.

 

17.2                    Amendment
costs

 

If (a) ABB requests an amendment, waiver or
consent or (b) an amendment is required pursuant to Clause 29.9 (Change of currency), ABB or the Borrowers
shall, within 3 Business Days of demand, reimburse the Facility Agent, upon
presentation of duly documented evidence thereof, for the amount of all costs
and expenses (including legal fees) reasonably and directly incurred by the
Facility Agent and which have previously been agreed with ABB in responding to,
evaluating, negotiating or complying with that request or requirement.

 

17.3                    Enforcement costs

 

ABB or the Borrowers shall, within 3 Business
Days of demand, pay to each Finance Party the amount of all costs and expenses
(including legal fees) directly incurred by that Finance Party at any time
after the service of a notice by the Facility Agent under Clause 23.11 (Acceleration) in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

 

17.4                    FSA and ECB
costs

 

(a)                                      This Clause 17.4 applies if, whether now or in
the future, either:

 

(i)                        a requirement to pay fees is imposed by the
Financial Services Authority under the Fees Rules; or

 

(ii)                     a reserve requirement is imposed by the European Central
Bank;

 

which, in either case, is applied to any Lender
(and would be applied generally to banks or financial institutions of a similar
nature to that Lender) as a consequence of its entering into and/or performing
its obligations under this Agreement and/or assuming or maintaining its
Commitment under this Agreement and/or making one or more Advances under this Agreement.
If, as a result, that Lender’s effective return on its overall capital is
reduced, ABB and the Borrowers agree to reimburse that Lender for the amount
claimed.

 

43

 

(b)                                     In the event that paragraph (a) above applies,
each Lender may submit a certificate setting out a calculation of the amount
claimed by it (and in the case of an amount claimed as a result of a reserve
requirement being imposed by the European Central Bank, certifying that such
amount has been reasonably determined) to the Facility Agent within the period
(the “Certification Period”) of 10
Business Days after the end of each Relevant Period. The Facility Agent will
notify ABB of the amount claimed by that Lender within 5 Business Days after
the end of the relevant Certification Period and ABB or the Borrowers shall
(absent manifest error in the relevant notice) reimburse that Lender for the
amount claimed within 3 Business Days after the date of such notification.

 

(c)                                      In this Clause 17.4, a “Relevant Period” is, as appropriate:

 

(i)                        the period beginning on the date of this
Agreement and ending on the 31 December 2005; and

 

(ii)                     each subsequent period of six months starting on 31 December
2005 and ending on the Termination Date,

 

and “Fees Rules”
means, as appropriate, either:

 

(i)                        the rules
on periodic fees contained in the FSA Supervision Manual; or

 

(ii)                     such other
law or regulations as may be in force from time to time relating to the payment
of fees for the acceptance of deposits.

 

18.                          GUARANTEE
AND INDEMNITY

 

18.1                    Guarantee
and indemnity

 

Subject to the provisos and confirmations
contained in Clause 18.9 (Confirmations and
Restrictions), each Guarantor irrevocably and unconditionally
jointly and severally:

 

(a)                                      guarantees to each Finance Party punctual
performance by each Borrower of all that Borrower’s obligations under the
Finance Documents;

 

(b)                                     undertakes with each Finance Party that whenever
a Borrower does not pay any amount when due under or in connection with any
Finance Document, that Guarantor shall immediately on demand pay that amount as
if it was the principal obligor; and

 

(c)                                      indemnifies each Finance Party immediately on
demand against any cost, loss or liability suffered by that Finance Party if
any obligation guaranteed by it is or becomes unenforceable, invalid or
illegal. The amount of the cost, loss or liability shall be equal to the amount
which that Finance Party would otherwise have been entitled to recover.

 

44

 

18.2                    Continuing
guarantee

 

This guarantee is a continuing guarantee and
will extend to the ultimate balance of sums payable by any Obligor under the
Finance Documents, regardless of any intermediate payment or discharge in whole
or in part.

 

18.3                    Reinstatement

 

If any payment by an Obligor or any discharge
given by a Finance Party (whether in respect of the obligations of any Obligor
or any security for those obligations or otherwise) is avoided or reduced as a
result of insolvency or any similar event:

 

(a)                                      the liability of each Obligor shall continue as
if the payment, discharge, avoidance or reduction had not occurred; and

 

(b)                                     each Finance Party shall be entitled to recover
the value or amount of that security or payment from each Obligor, as if the
payment, discharge, avoidance or reduction had not occurred.

 

18.4                    Waiver of
defences

 

The obligations of each Guarantor under this
Clause 18 will not be affected by an act, omission, matter or thing which, but
for this Clause, would reduce, release or prejudice any of its obligations
under this Clause 18 (without limitation and whether or not known to it or any
Finance Party) including:

 

(a)                                      any time, waiver or consent granted to, or
composition with, any Obligor or other person;

 

(b)                                     the release of any other Obligor or any other
person under the terms of any composition or arrangement with any creditor of
any member of the Group;

 

(c)                                      the taking, variation, compromise, exchange,
renewal or release of, or refusal or neglect to perfect, take up or enforce,
any rights against, or security over assets of, any Obligor or other person or
any non-presentation or non-observance of any formality or other requirement in
respect of any instrument or any failure to realise the full value of any
security;

 

(d)                                     any incapacity or lack of power, authority or
legal personality of or dissolution or change in the members or status of an
Obligor or any other person;

 

(e)                                      any amendment (however fundamental) or
replacement of a Finance Document or any other document or security;

 

(f)                                        any unenforceability, illegality or invalidity
of any obligation of any person under any Finance Document or any other
document or security; or

 

(g)                                     any insolvency or similar proceedings.

 

18.5                    Immediate
recourse

 

Each Guarantor waives any right it may have of first
requiring any Finance Party (or any trustee or agent on its behalf) to proceed
against or enforce any other rights or

 

45

 

security or claim payment from any person
before claiming from that Guarantor under this Clause 18. This waiver applies
irrespective of any law or any provision of a Finance Document to the contrary.

 

18.6                    Appropriations

 

Until all amounts which may be or become
payable by the Obligors under or in connection with the Finance Documents have
been irrevocably paid in full, each Finance Party (or any trustee or agent on
its behalf) may:

 

(a)                                      refrain from applying or enforcing any other
moneys, security or rights held or received by that Finance Party (or any
trustee or agent on its behalf) in respect of those amounts, or apply and
enforce the same in such manner and order as it sees fit (whether against those
amounts or otherwise) and no Guarantor shall be entitled to the benefit of the
same; and

 

(b)                                     hold in an interest-bearing suspense account any
moneys received from any Guarantor or on account of any Guarantor’s liability
under this Clause.

 

18.7                    Deferral of
Guarantors’ rights

 

Until all amounts which may be or become
payable by the Obligors under or in connection with the Finance Documents have
been irrevocably paid in full or the Facility Agent otherwise directs, no
Guarantor will exercise any rights which it may have by reason of performance
by it of its obligations under the Finance Documents:

 

(a)                                      to be indemnified by an Obligor;

 

(b)                                     to claim any contribution from any other
guarantor of any Obligor’s obligations under the Finance Documents; and/or

 

(c)                                      to take the benefit (in whole or in part and
whether by way of subrogation or otherwise) of any rights of the Finance
Parties under the Finance Documents or of any other guarantee or security taken
pursuant to, or in connection with, the Finance Documents by any Finance Party.

 

18.8                    Additional
security

 

This guarantee is in addition to and is not in
any way prejudiced by any other guarantee or security now or subsequently held
by any Finance Party.

 

18.9                    Confirmations
and Restrictions

 

(a)                                      Any term or provision of this Clause  or any other term in this Agreement or any
Finance Document notwithstanding, the maximum aggregate amount of the
obligations for which any Guarantor which is incorporated in any state of the
United States of America (a “US Guarantor”)
shall be liable shall not exceed the maximum amount for which such US Guarantor
can be liable without rendering this Agreement or any other Finance Document,
as it relates to the US Guarantor, subject to avoidance under applicable law
relating to fraudulent conveyance or fraudulent transfer (including section 548
of the Bankruptcy Code of the United States or any applicable provisions of
comparable state law) (collectively “Fraudulent
Transfer Laws”), in each

 

46

 

case after giving effect
(a) to all other liabilities of the US Guarantor, contingent or otherwise, that
are relevant under such Fraudulent Transfer Laws (specifically excluding,
however, any liabilities of the Guarantor in respect of intercompany
indebtedness to any Borrower to the extent that such indebtedness would be
discharged in an amount equal to the amount paid by the US Guarantor hereunder)
and (b) to the value as assets of the US Guarantor (as determined under the
applicable provisions of such Fraudulent Transfer Laws) of any rights to
subrogation, contribution, reimbursement, indemnity or similar rights held by
such US Guarantor pursuant to (i) applicable law or (ii) any other agreement
providing for an equitable allocation among the US Guarantor and other
Subsidiaries or affiliates of any Borrower of obligations arising under this
Agreement or any guarantees of the obligations by such parties.

 

(b)                                     The obligations and liabilities of each
Guarantor (excluding ABB) which is incorporated in Switzerland shall in respect
of all present and future conditional and unconditional claims of the Finance
Parties against any member of the Group other than that Guarantor and its
wholly owned Subsidiaries arising from time to time out of the Finance
Documents only be deemed to be undertaken or incurred to the extent and in the
maximum amount of that Guarantor’s free reserves available for distribution
(being the positive difference between the assets of that Guarantor and the
aggregate of all liabilities, the amount of the registered share capital and
the mandatory reserves at any given time, all these amounts to be established
in accordance with Swiss law), taking into account the deduction of Swiss
withholding tax at the rate of 35% (or such other rate in force from time to
time), subject to any applicable double taxation treaty, levied on any such
reserves made available for distribution.

 

47

 

SECTION 7

REPRESENTATIONS,
UNDERTAKINGS AND EVENTS OF DEFAULT

 

19.                          REPRESENTATIONS

 

ABB (in respect of itself and, where specified,
each Group Company or each Material Subsidiary) and each other Obligor (in
respect of itself) makes the representations and warranties set out in this
Clause 19 to each Finance Party on the date of this Agreement.

 

19.1                    Status

 

(a)                                      It is a corporation, duly incorporated and
validly existing under the law of its jurisdiction of incorporation.

 

(b)                                     It and each Group Company has the power to own
its assets and carry on its business as it is being conducted.

 

19.2                    Binding
obligations

 

The obligations expressed to be assumed by it
in each Finance Document are, subject to the Reservations, legal, valid,
binding and enforceable obligations.

 

19.3                    Non-conflict
with other obligations

 

The entry into and performance by it of, and
the transactions contemplated by, the Finance Documents to which it is a party
do not and will not conflict with:

 

(a)                                      any law or regulation applicable to it;

 

(b)                                     its constitutional documents; or

 

(c)                                      any agreement or instrument binding upon it or
any Group Company or any of their assets,

 

and, in the case of paragraph (c) on any
repetition after the date of this Agreement, in a manner that could reasonably
be expected to have a Material Adverse Effect.

 

19.4                    Power and
authority

 

It has the power to enter into, perform and
deliver, and has taken all necessary action to authorise its entry into,
performance and delivery of, the Finance Documents to which it is a party and
the transactions contemplated by those Finance Documents.

 

19.5                    Validity and
admissibility in evidence

 

All Authorisations required by ABB and each
other Obligor (including, in the case of any Dutch Obligor, and if applicable,
any works council advice):

 

(a)                                      to enable it lawfully to enter into, exercise
its rights and comply with its obligations in the Finance Documents to which it
is a party; and

 

(b)                                     to make the Finance Documents to which it is a
party admissible in evidence in its jurisdiction of incorporation,

 

have been obtained or effected and are in full
force and effect.

 

48

 

19.6                    Insolvency

 

Neither it nor any Material Subsidiary
(excluding to the extent relevant Combustion Engineering Inc. and ABB Lummus
Global Inc.) has taken any action nor (so far it is aware, having made all due
enquiry) have any steps been taken or legal proceedings been started against it
for winding-up, dissolution or re-organisation, the enforcement of any Security
over its assets or for the appointment of a receiver, administrative receiver,
or administrator, trustee or similar officer of it or any of its assets.

 

19.7                    No default

 

(a)                                      No Default is continuing.

 

(b)                                     No other event or circumstance is outstanding
which constitutes a default under any other agreement or instrument which is
binding on a Group Company or to which their assets are subject which has had
or could reasonably be expected to have a Material Adverse Effect.

 

19.8                    No
misleading information

 

(a)                                      Any factual information contained in the
Information Memorandum was true and accurate in all material respects as at the
date of the Information Memorandum.

 

(b)                                     Nothing has occurred or been omitted from the Information
Memorandum and no information has been given or withheld that results in the
information contained in the Information Memorandum being untrue or misleading
in any material respect as at the date of the Information Memorandum.

 

19.9                    Financial statements

 

(a)                                      The Original Financial Statements were prepared
in accordance with GAAP consistently applied.

 

(b)                                     The Original Financial Statements fairly present
in all material respects the consolidated financial condition and operations of
the Group during the relevant financial year.

 

(c)                                      Each of the latest audited consolidated
financial statements required to be delivered under paragraph (b) of Clause
20.1 (Financial Statements)
fairly presents in all material respects the financial position of the Group as
at the date to which they were prepared and for the period then ended.

 

(d)                                     Each of the latest set of consolidated financial
statements required to be delivered under paragraph (c) of Clause 20.1 (Financial Statements) fairly presents in
all material respects the financial condition of the Group as at the date to
which they were prepared and for the period then ended.

 

19.10              No Material Adverse Effect

 

Since the date of the most recent annual
audited accounts of the Group, no event or events have occurred which have had
a Material Adverse Effect.

 

49

 

19.11              Pari passu ranking

 

Its payment obligations under the Finance
Documents rank at least pari passu
with the claims of all its other unsecured and unsubordinated creditors, except
for obligations mandatorily preferred by law applying to companies generally.

 

19.12              No proceedings pending or
threatened

 

No litigation, arbitration or administrative
proceedings of or before any court, arbitral body or agency which could
reasonably be expected to have a Material Adverse Effect have (to the best of
its knowledge and belief) been started or threatened against any Group Company
save in relation to asbestos liabilities relating to the business of Combustion
Engineering Inc. and ABB Lummus Global Inc.

 

19.13              Environmental Compliance

 

Each Group Company has complied in all respects
with all Environmental Law save to the extent that non-compliance could not
reasonably be expected to have a Material Adverse Effect.

 

19.14              Dutch Borrower Regulatory
Compliance

 

Each Dutch Borrower represents, warrants and
agrees that it has the appropriate exemptive reliefs available pursuant to the
Exemption Regulation and that it complies with article 4 of the Exemption
Regulation including in particular that:

 

(a)                                      on the date of this Agreement each Dutch
Borrower has verified, to the extent reasonably possible, that each Original
Lender qualifies as a PMP in accordance with the Policy Guidelines; and

 

(b)                                     if on the date on which a New Lender becomes a
party to this Agreement, it is a requirement of Dutch law that it is a PMP and
that each Dutch Borrower must verify its PMP status in accordance with the
Policy Guidelines, on such date each Dutch Borrower has verified that such New
Lender qualifies as a PMP in accordance with the Policy Guidelines.

 

Each Lender represents and warrants to each
Obligor on the date of this Agreement that it is a PMP and each New Lender to
whom a Lender assigns or transfers any or all of its rights under this Agreement
(if on the date such assignment or transfer becomes effective it is a
requirement under Dutch law that such New Lender is a PMP) will be deemed to
have represented and warranted to each Obligor that on such date it is a PMP.

 

19.15              Repetition

 

The representations and warranties in Clause
19.1 (Status) to Clause 19.4 (Power and Authority), paragraphs (c) and
(d) of Clause 19.9 (Financial Statements)
and Clause 19.10 (No Material Adverse Effect)
are deemed to be made by each Obligor by reference to the facts and
circumstances then existing on the date of each Utilisation Request and the
first day of each Interest Period provided
that, after the Trigger Date has occurred, the representation and
warranty in Clause 19.10 (No Material
Adverse Effect) shall not be repeated.

 

50

 

20.                          INFORMATION
UNDERTAKINGS

 

The undertakings in this Clause 20 remain in
force from the date of this Agreement for so long as any amount is outstanding
under the Finance Documents or any Commitment is in force.

 

20.1                    Financial
statements

 

(a)                                      ABB and each other Obligor shall supply to the
Facility Agent in sufficient copies for all the Lenders, as soon as the same
become available, but in any event within 120 days after the end of each of its
financial years (in the case of ABB) and within 150 days (in the case of each
other Obligor), its statutory audited unconsolidated annual financial
statements for that financial year.

 

(b)                                     ABB shall supply to the Facility Agent in
sufficient copies for all the Lenders, as soon as the same become available,
but in any event before the date falling 120 days after the end of each of
its financial years, its audited consolidated annual financial statements.

 

(c)                                      ABB shall supply to the Facility Agent in sufficient
copies for all the Lenders, as soon as the same become available, but in any
event within 45 days after the end of each quarter of each of its financial
years (except the fourth quarter) its consolidated financial statements for
that quarter.

 

20.2                    Requirements
as to financial statements

 

Each Borrower shall procure that each set of
financial statements delivered by it pursuant to Clause 20.1 (Financial statements) is prepared using
GAAP.

 

20.3                    Covenant
Compliance Certificate

 

(a)                                      ABB shall supply to the Facility Agent,
semi-annually with each set of audited consolidated financial statements and
the relevant set of unaudited consolidated financial statements delivered
pursuant to Clause 20.1 (Financial
Statements), a Covenant Compliance Certificate setting out (in
reasonable detail) computations as to compliance with Clause 21.2 (Financial Condition) as at the date as at
which those financial statements were drawn up provided that, at any time on and following the occurrence of
the Trigger Date, a Covenant Compliance Certificate will not be required to be
delivered in respect of the Financial Covenant set out in paragraph (a) of
Clause 21.2 (Financial Condition).

 

(b)                                     Each Covenant Compliance Certificate shall be
signed by two officers of ABB without personal liability.

 

(c)                                      Each Covenant Compliance Certificate shall be
prepared to exclude the effect of changes in US GAAP or the application thereof
effective after 30 June 2005.

 

20.4                    Information:
miscellaneous

 

ABB shall supply to the Facility Agent (in
sufficient copies for all the Lenders, if the Facility Agent so requests):

 

51

 

(a)                                      all documents dispatched by it to its
shareholders (or any class of them) or its creditors generally at the same time
as they are dispatched;

 

(b)                                     promptly upon becoming aware of them, the
details of any litigation, arbitration or administrative proceedings which are
commenced against one or more Group Companies and which could reasonably be
expected to have a Material Adverse Effect; and

 

(c)                                      promptly, such further information regarding the
financial condition, business and operations of any Material Subsidiary as any
Finance Party (acting through the Facility Agent) may reasonably request.

 

20.5                    Notification
of default

 

ABB and each Obligor shall notify the Facility
Agent of any Default (and the steps, if any, being taken to remedy it) promptly
upon becoming aware of its occurrence.

 

20.6                    Material
Subsidiaries

 

ABB shall supply to the Facility Agent, with
each set of financial statements delivered by it pursuant to paragraph (b) of
Clause 20.1 (Financial statements),
either:

 

(a)                                      a complete
and up to date list of Material Subsidiaries at that time; or

 

(b)                                     written
confirmation that the list of Material Subsidiaries contained in Schedule 10 (Material Subsidiaries) is complete and up
to date at that time.

 

20.7                    Use of
Websites

 

(a)                                      Any Obligor may satisfy its obligation under
this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of
communication by posting this information onto an electronic website designated
by the Borrower and the Facility Agent (the “Designated
Website”) if:

 

(i)                        the Facility Agent expressly agrees (after
consultation with each of the Lenders) that it will accept communication of the
information by this method;

 

(ii)                     both ABB and the Facility Agent are aware of the address of
and any relevant password specifications for the Designated Website; and

 

(iii)                  the information is in a format previously agreed between ABB
and the Facility Agent.

 

If any Lender (a “Paper Form Lender”) does not agree to the delivery of
information electronically then the Facility Agent shall notify ABB accordingly
and ABB shall supply the information to the Facility Agent (in sufficient
copies for each Paper Form Lender) in paper form. In any event ABB shall supply
the Facility Agent with at least one copy in paper form of any information
required to be provided by it.

 

(b)                                     The Facility Agent shall supply each Website
Lender with the address of and any relevant password specifications for the
Designated Website following

 

52

 

designation of that
website by ABB and the Facility Agent. The Facility Agent shall notify each
Website Lender when any document is posted to the Designated Website.

 

(c)                                      ABB shall promptly upon becoming aware of its
occurrence notify the Facility Agent if:

 

(i)                        the Designated Website cannot be accessed due to
technical failure;

 

(ii)                     the password specifications for the Designated Website
change;

 

(iii)                  any new information which is required to be provided under
this Agreement is posted onto the Designated Website;

 

(iv)                 any existing information which has been provided under this
Agreement and posted onto the Designated Website is amended; or

 

(v)                    ABB becomes aware that the Designated Website or any
information posted onto the Designated Website is or has been infected by any
electronic virus or similar software.

 

If the Borrower notifies the Facility Agent
under paragraph (c)(i) or paragraph (c)(v) above, all information to be
provided by ABB under this Agreement after the date of that notice shall be
supplied in paper form unless and until the Facility Agent and each Website
Lender is satisfied that the circumstances giving rise to the notification are
no longer continuing.

 

(d)                                     Any Website Lender may request, through the
Facility Agent, one paper copy of any information required to be provided under
this Agreement which is posted onto the Designated Website. ABB shall comply
with any such request within ten Business Days.

 

20.8                    “Know your
customer” checks

 

(a)                                      If:

 

(i)                        the introduction of or any change in (or in the
interpretation, administration or application of) any law or regulation made
after the date of this Agreement;

 

(ii)                     any change in the status of an Obligor or the composition of
the shareholders of an Obligor after the date of this Agreement; or

 

(iii)                  a proposed assignment or transfer by a Lender of any of its
rights and/or obligations under this Agreement to a party that is not a Lender
prior to such assignment or transfer,

 

obliges any Agent or any
Lender (or, in the case of paragraph (iii) above, any prospective new Lender)
to comply with “know your customer”
or similar identification procedures in circumstances where the necessary
information is not already available to it, each Obligor shall promptly upon
the request of

 

53

 

that Agent or any Lender
supply, or procure the supply of (to the extent that the relevant information
is not already available to the applicable Agent or Lender), such documentation
and other evidence as is reasonably requested by that Agent (for itself or on
behalf of any Lender) or any Lender (for itself or, in the case of the event
described in paragraph (iii) above, on behalf of any prospective new Lender) in
order for the applicable Agent, such Lender or, in the case of the event
described in paragraph (iii) above, any prospective new Lender to carry out and
be satisfied with the results of all necessary “know your customer” or other checks in relation to any
relevant person pursuant to the transactions contemplated in the Finance
Documents.

 

(b)                                     Each Lender shall promptly upon the request of
any Agent supply, or procure the supply of, such documentation and other
evidence as is reasonably requested by that Agent (for itself) in order for
that Agent to carry out and be satisfied with the results of all necessary “know your customer” or other checks on
Lenders or prospective new Lenders pursuant to the transactions contemplated in
the Finance Documents.

 

(c)                                      ABB shall, by not less than 10 Business Days’
prior written notice to the Facility Agent, notify the Facility Agent (which
shall promptly notify the Lenders) of its intention to request that one of its
Subsidiaries becomes an Additional Obligor pursuant to Clause 25 (Changes to the Obligors).

 

(d)                                     Following the giving of any notice pursuant to
paragraph (c) above, if the accession of such Additional Obligor obliges any
Agent or any Lender to comply with “know your
customer” or similar identification procedures in circumstances
where the necessary information is not already available to it, ABB shall
promptly upon the request of that Agent or any Lender supply, or procure the supply
of, such documentation and other evidence as is reasonably requested by that
Agent (for itself or on behalf of any Lender) or any Lender (for itself or on
behalf of any prospective new Lender) in order for that Agent or such Lender or
any prospective new Lender to carry out and be satisfied with the results of
all necessary “know your customer”
or other checks in relation to any relevant person pursuant to the accession of
such Subsidiary to this Agreement as an Additional Obligor

 

21.                          FINANCIAL
COVENANTS

 

21.1                    Financial
definitions

 

In this Clause:

 

“Asbestos
Trust” means the trusts established or to be established for the
benefit of present and future claimants in the proceedings relating to
Combustion Engineering Inc. and ABB Lummus Global Inc. under Chapter 11 of the
US Bankruptcy Code.

 

“Consolidated
Profits before Interest and Tax” means, in respect of any Relevant
Period, the earnings before interest and taxes, as reflected in the ABB’s
consolidated income statement.

 

54

 

“EBITDA”
means, for any Relevant Period, Consolidated Profits before Interest and Tax
before any amount attributable to the impairment, write-off or amortisation of
any intangible assets and impairment, write-off or depreciation of tangible
assets adjusted to disregard any impact of gains or losses arising by reason of
disposals (such as the sale of businesses, long term assets and equity
investments and including the abandonment/liquidation of businesses) occurring
after 30 June 2005.

 

“Marketable
Securities and Short-Term Investments” means:

 

(a)                                      securities issued or unconditionally guaranteed
by the government of the United States, Canada, Switzerland, Japan or a member
of the European Union or by any agency of such a government having an
equivalent credit rating;

 

(b)                                     commercial paper for which a recognised trading
market exists and having a rating of at least A-2 from Standard and Poor’s or
at least P-2 from Moody’s or, if unrated, whose issuer has an equivalent rating
in respect of its long term debt obligations;

 

(c)                                      certificates of deposit or bankers’ acceptance
issued by, or term deposits made with, any bank or financial institution
maturing within one year of being acquired or placed and having a short term
unsecured debt rating of at least A-1 from Standard and Poor’s or at least P-1
from Moody’s or (if such investments become accessible no later than three
months after the date of acquisition or placement) of at least A-2 from
Standard and Poor’s or P-2 from Moody’s;

 

(d)                                     investments in money-market funds rated at least
A-2 from Standard and Poor’s or P-2 from Moody’s or equivalent fund rating;

 

(e)                                      corporate debt securities listed on a recognized
stock exchange and issued by entities rated at least A / A-2; and

 

(f)                                        any other debt security approved by the Majority
Lenders,

 

(in each case to the extent not reflected as
cash and equivalents in ABB’s consolidated balance sheet).

 

“Net Debt”
on a Relevant Date means Total Gross Debt minus Relevant Cash Equivalents.

 

“Relevant
Cash Equivalents” means, as of the last day of the Relevant Period,
the aggregate of cash and equivalents (as reflected in ABB’s consolidated
balance sheet) and Marketable Securities and Short-Term Investments minus the
amount of any such items on such date that:

 

(a)                                      are
designated for application in respect of the Group’s obligations in respect of
management incentive, pension and similar arrangements;

 

55

 

(b)                                     are
designated for application in respect of the Group’s insurance or reinsurance
arrangements; or

 

(c)                                      are
subject to a Security Interest in favour of non-Group members (other than a
Security Interest arising pursuant to netting, set-off or consolidation or
combination of accounts arising pursuant to banking arrangements entered into
in the ordinary course of business).

 

“Relevant
Date” means 30 June and 31 December in each financial year of ABB.

 

“Relevant
Period” means each period of twelve months ending on a Relevant
Date.

 

“Total Gross
Debt” means the aggregate of short-term borrowings and current
maturities on long-term borrowings and long-term borrowings in each case as
reflected in ABB’s consolidated balance sheet as of the last day of the
Relevant Period plus:

 

(a)                                      the
obligation of members of the Group to make cash payments to the Asbestos
Trusts; and

 

(b)                                     (without
double-counting) the aggregate net proceeds of any Securitisation on the last
day of the Relevant Period.

 

“Total Gross
Interest” means, in respect of any Relevant Period, the interest expense
for financial liabilities and costs of the Securitisations of the Group as
reflected in ABB’s consolidated income statement (excluding items considered as
other finance expense, such as, but not limited to, any fees, taxes or
commissions, foreign exchange gains or losses, gains or losses on marketable
securities, gains or losses on derivatives and charges or credits in relation
to management incentive plans).

 

21.2                    Financial
Condition

 

ABB shall ensure that:

 

(a)                                      until the occurrence of the Trigger Date, the
ratio of EBITDA to Total Gross Interest for each Relevant Period ending on each
30 June and 31 December in any financial year of ABB shall not be less than
3.50:1; and

 

(b)                                     the ratio of Net Debt to EBITDA for each
Relevant Period ending on each 30 June and 31 December in any financial year of
ABB shall not be more than 3.00:1.

 

All calculations will exclude the impact of
changes in US GAAP or the application thereof after 30 June 2005.

 

In relation to the ratio of Net Debt to EBITDA
referred to in paragraph (b), if any company or business is sold or acquired by
the Group during a Relevant Period, the EBITDA attributable to that company or
business shall be (if sold) deducted from EBITDA or (if acquired) added to
EBITDA for the Relevant Period, in each case on a pro forma basis assuming the
relevant acquisition or disposal to have been made at the start of such
Relevant Period, unless ABB (acting reasonably and in good faith)

 

56

 

considers such addition or deduction to be
immaterial in the context of the relevant calculation.

 

22.                          GENERAL
UNDERTAKINGS

 

The undertakings in this Clause 22 remain in
force from the date of this Agreement for so long as any amount is outstanding
under the Finance Documents or any Commitment is in force.

 

22.1                    Authorisations

 

Each Obligor shall promptly:

 

(a)                                      obtain, comply with and do all that is necessary
to maintain in full force and effect; and

 

(b)                                     supply certified copies to the Facility Agent
of,

 

any Authorisation (including, in the case of
any Dutch Obligor, any applicable works council advice) required under any law
or regulation of its jurisdiction of incorporation to enable it to perform its
obligations under the Finance Documents and to ensure the legality, validity and
subject to the Reservations enforceability or admissibility in evidence in its
jurisdiction of incorporation of any Finance Document.

 

22.2                    Compliance
with laws

 

Each Obligor shall comply in all respects with
all laws (including, without limitation, Environmental Law and ERISA) to which
it may be subject, if failure so to comply would have a Material Adverse
Effect.

 

22.3                    Negative
pledge

 

(a)                                      Neither ABB nor any Obligor shall (and ABB shall
procure that no other Group Company will) create or permit to subsist any
Security over any of its assets.

 

(b)                                     Paragraph (a) above does not apply to:

 

(i)                        any Security over any bank account in favour of
the bank with which such account is held, in each case granted by any Group
Company in the ordinary course of its banking arrangements for the purpose of
netting debit and credit balances;

 

(ii)                     any Security arising by operation of law;

 

(iii)                  any Security contained in a contract for sale or supply
entered into in the ordinary course of trading, where such Security is granted
to such seller or, as the case may be, supplier and is limited in recourse to
the asset sold or, as the case may be, supplied;

 

(iv)                 any Security over or affecting any asset acquired by a Group
Company after the date of this Agreement if:

 

57

 

(A)                the Security was not created in contemplation of the
acquisition of that asset by a Group Company; and

 

(B)                  the principal amount secured has not been increased in
contemplation of, or since the acquisition of that asset by a Group Company;

 

(v)                    any Security over or affecting any asset of a Group Company
after the date of this Agreement, where the Security is created prior to the
date on which that Company becomes a Group Company, if:

 

(A)                the Security was not created in contemplation of the
acquisition of that company; and

 

(B)                  the principal amount secured has not increased in
contemplation of or since the acquisition of that company;

 

(vi)                 any Security provided by one Group Company (not being ABB)
to another Group Company;

 

(vii)              any Security created in respect of the Securitisations provided that the amounts so secured do not
at any time exceed USD 1,500,000,000 (or its equivalent in another currency or
currencies);

 

(viii)           any Security over the assets of a Project Company, any
shareholder loan made to a Project Company or the shares in a Project Company
where such Security was created for the purpose of securing Indebtedness
incurred to acquire and/or develop the assets of such Project Company and where
such Indebtedness constitutes Project Finance Indebtedness of such Project
Company;

 

(ix)                   any Security securing Indebtedness incurred by a Group
Company to refinance Indebtedness secured by Security of the type referred to
in paragraphs (iv) or (v) above where such first-mentioned Security is over the
same asset and is of the same type as such second-mentioned Security and the
conditions referred to in paragraph (iv) or, as the case may be, (v) above
continue to be satisfied, mutatis mutandis;
and

 

(x)                      any Security not falling within any of
paragraphs (i) to (ix) above inclusive in respect of assets having an aggregate
value not exceeding 10% of the aggregate value of the gross assets of the Group
(as set out in ABB’s most recent published annual audited consolidated
financial statements).

 

22.4                    Disposals

 

Any Group Company may enter into a Disposal provided that:

 

58

 

(a)                                      a Disposal of any asset, company or business
that is a core asset or undertaking of the Group (each a “Core Undertaking”) or of any asset of a
Core Undertaking shall be made on arm’s length terms; and

 

(b)                                     upon a Disposal of any asset, company or
business (Core Undertaking or otherwise) that generates aggregate net proceeds
of more than $500,000,000, two authorised signatories of ABB shall provide a
certificate to the Facility Agent confirming projected compliance with Clause
21.2 (Financial Condition) to the
end of the then-current Relevant Period (on a pro forma basis assuming the
relevant Disposal to have been made at the start of such Relevant Period) provided that projections made for the
purposes of such certificate shall be based on assumptions which are, in the
reasonable opinion of ABB, fair and reasonable as at the date they were
supplied.

 

22.5                    Claims Pari
Passu

 

ABB shall ensure that at all times the claims
of the Finance Parties against each Obligor under the Finance Documents rank at
least pari passu with the claims
of all its other unsecured and unsubordinated creditors except for obligations
mandatorily preferred by law applying to companies generally.

 

22.6                    Merger

 

No Obligor shall enter into any amalgamation,
demerger, merger or corporate reconstruction save where the Facility Agent is
satisfied, acting reasonably, that the relevant Obligor’s obligations under the
Finance Documents will continue to be the Obligor’s legal, valid, binding and
(subject to the Reservations) enforceable obligations.

 

22.7                    Acquisitions

 

Subject to Clause 22.10 (Change of business), any Group Company may
acquire any company, business or undertaking or form or enter into any joint
venture, partnership, consortium or other like arrangement (a “Joint Venture”) provided that where the aggregate consideration for the
acquisition of an undertaking (or, in the case of a Joint Venture, investment
by Group Companies) exceeds $500,000,000, two authorised signatories of ABB
shall provide a certificate to the Facility Agent confirming projected
compliance with Clause 21.2 (Financial
Condition) to the end of the then-current Relevant Period (on a pro forma basis assuming the relevant
acquisition or investment to have been made at the start of such Relevant
Period) provided further that
projections made for the purposes of such certificate shall be based on
assumptions which are, in the reasonable opinion of ABB, fair and reasonable as
at the date they were supplied.

 

22.8                    Insurance

 

Each Obligor shall (and ABB shall ensure that
each Group Company will) maintain insurances on and in relation to its business
and assets with reputable underwriters or insurance companies against those
risks and to the extent as is usual for companies carrying on the same or
substantially similar business in the relevant jurisdiction and taking into
account the availability of insurance generally.

 

59

 

22.9                    Restriction
on Subsidiary Indebtedness

 

ABB shall ensure that the aggregate amount of
Total Gross Debt (other than:

 

(a)                                      Project Finance Indebtedness;

 

(b)                                     Indebtedness owed by one Group Company to another
Group Company;

 

(c)                                      amounts borrowed by a finance company which is a
Group Company and which are on-lent, and remain on-lent, to an Obligor;

 

(d)                                     amounts borrowed by a Group Company from a bank
to which cash-collateral (in a substantially equivalent amount) has been
granted by a Group Company in respect of the relevant Group Company’s
obligation to repay such amounts;

 

(e)                                      Indebtedness relating to ABB Credit OY Leases as
at the date of this Agreement;

 

(f)                                        any amounts borrowed by a Group Company which constitute
Total Gross Debt to the extent such amounts are borrowed for the purposes of
refinancing other borrowings constituting Total Gross Debt so long as amounts
so borrowed are promptly applied in such manner;

 

(g)                                     Indebtedness in respect of bonds and commercial
paper issued by members of the Group that are capital markets issuers; and

 

(h)                                     amounts owed to Combustion Engineering Inc., ABB
Lummus Global Inc or any trust established in connection with their Chapter 11
filings or any other Chapter 11 filing or proceedings relating thereto,

 

of Group Companies which are not Obligors shall
not at any time after the date of this Agreement exceed $1,000,000,000.

 

22.10              Change of business

 

ABB shall procure that no change is made to the
businesses of the Group which would result in the core businesses of the Group,
taken as a whole, being other than the businesses of power and automation
technology.

 

22.11              Financial Guarantees

 

ABB shall ensure that the maximum potential
payments in respect of financial guarantees (as provided for or otherwise noted
in the consolidated financial statements of ABB and which at 31 December 2004
represented maximum potential payments of $253,000,000) shall not exceed
$500,000,000 at any time.

 

23.                          EVENTS OF
DEFAULT

 

Each of the events or circumstances set out in
Clauses 23.1 (Non-payment) to
23.10 (Cessation of Business)
inclusive is an Event of Default.

 

23.1                    Non-payment

 

Any sum due from an Obligor or the Obligors
under this Agreement is not paid at the time, at the place at, and in the
currency in which, it is expressed to be payable unless

 

60

 

payment is made within 3 Business Days of its
due date and the failure to pay is due solely to administrative error or
technical delays in the transmission of funds.

 

23.2                    Financial
Covenants

 

Any requirement of Clause 21.2 (Financial Condition) is not satisfied.

 

23.3                    Other
obligations

 

An Obligor does not comply with any provision
of the Finance Documents (other than those referred to in Clause 23.1 (Non-payment) and Clause 21.2 (Financial  Condition))
and, if the failure to comply is capable of remedy, it is not remedied within
30 days of the Facility Agent giving notice to ABB of the failure to comply.

 

23.4                    Misrepresentation

 

Any representation or statement made or deemed
(by virtue of Clause 19.15 (Repetition))
to be made by ABB or any other Obligor in this Agreement is or proves to have
been incorrect or misleading in any respect when made or deemed to be made and,
where the circumstances making such representation or statement incorrect or
misleading are capable of being altered so that such representation or
statement is correct, such circumstances are not so altered within 30 days of
the Facility Agent giving notice to ABB of such representation or statement
being incorrect provided that no
Event of Default shall occur under this Clause 23.4 by reason of the
representation set out in paragraphs (a) or (b) of Clause 19.14 (Dutch Obligor Regulatory Compliance) being
untrue (but without prejudice to the rights of the Finance Parties under this
Agreement other than under this Clause 23.4 or under applicable law and without
prejudice to any other Event of Default which may occur by reason of any
representation set out in paragraphs (a) or (b) of Clause 19.14 (Dutch Obligor Regulatory Compliance) being
untrue in any material respect or otherwise by reason of a Lender not being a
PMP).

 

23.5                    Cross
default

 

(a)                                      Any Indebtedness of all or any of the Group
Companies is not paid when due nor within any originally applicable grace
period.

 

(b)                                     Any Indebtedness of all or any of the Group
Companies has (i) become capable of being declared and is declared to be or
(ii) otherwise becomes due and payable, in any case, prior to its specified
maturity as a result of a default or an event of default (however described).

 

(c)                                      Any commitment for any Indebtedness of all or
any of the Group Companies is cancelled or suspended by a creditor of all or
any of the Group Companies as a result of a default or an event of default
(however described).

 

(d)                                     Any creditor of all or any of the Group
Companies becomes entitled to declare any Indebtedness of all or any of the
Group Companies due and payable prior to its specified maturity as a result of
a default or an event of default (however described).

 

61

 

(e)                                  No Event of Default will occur under this
Clause 23.5 if (1) the Indebtedness falling within paragraphs (a) to (d) is
Project Finance Indebtedness or intra-Group Indebtedness or (2) the aggregate
amount of Indebtedness or commitment for Indebtedness falling within paragraphs
(a) to (d) (excluding any described in (1) above) above is less than
$50,000,000.

 

(f)                                    No Event of Default will occur under this
Clause 23.5 where the applicable default or relevant circumstances described in
paragraphs (a) to (d) above arise as a result of or in connection with any
bankruptcy filing under Chapter 11 of the US Bankruptcy Code in respect of ABB
Lummus Inc. or Combustion Engineering Inc. or any other related bankruptcy
filing under Chapter 11 of the US Bankruptcy Code, or any proceedings relating
to any such filing.

 

23.6                           Insolvency

 

(a)                                  Any Obligor or any Material Subsidiary is
unable or admits in writing an inability to pay its debts as they fall due,
suspends making payments on any of its debts or, by reason of actual or
anticipated financial difficulties, commences negotiations with one or more of
its creditors with a view to rescheduling any of its indebtedness.

 

(b)                                 A moratorium is declared in respect of
any indebtedness of any Obligor or any Material Subsidiary.

 

(c)                                  This Clause 23.6 shall not apply to
Combustion Engineering Inc. or ABB Lummus Global Inc.

 

23.7                           Insolvency proceedings

 

Any
corporate action, legal proceedings or other procedure or step is taken in
relation to:

 

(a)                                  the suspension of payments, a moratorium
of any indebtedness, dissolution or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of any Obligor or any Material
Subsidiary other than a solvent liquidation or reorganisation of any Material
Subsidiary (other than a Borrower);

 

(b)                                 a composition, assignment or arrangement
with any creditor of any Obligor or any Material Subsidiary;

 

(c)                                  the appointment of a liquidator (other
than (i) a winding up petition which is frivolous or vexatious and which is, in
any event, discharged within 30 days of its presentation or (ii) in respect of
a solvent liquidation of any Material Subsidiary (other than an Obligor)),
receiver, administrator, administrative receiver, compulsory manager or other
similar officer in respect of any Obligor or any Material Subsidiary or any of
its assets (having an aggregate value of at least $50,000,000); or

 

62

 

(d)                                 enforcement of any Security over any
assets (having an aggregate value of at least $50,000,000) of any Material
Subsidiary or Obligor by reason of a default or event of default (howsoever
described) occurring under the relevant agreement relating to the Indebtedness
secured by such Security,

 

or
any analogous procedure or step is taken in any jurisdiction provided that this Clause 23.7 shall not
apply to Combustion Engineering Inc. or ABB Lummus Global Inc.

 

23.8                           Repudiation

 

ABB
or an Obligor repudiates a Finance Document or evidences in writing an
intention to repudiate a Finance Document.

 

23.9                           Unlawfulness

 

Subject
to Clause 8.2 (Borrower Illegality),
it is or becomes unlawful for an Obligor to perform any of its material
obligations under the Finance Documents.

 

23.10                     Cessation of business

 

The
Group, taken as a whole, ceases or threatens to cease to do business.

 

23.11                     Acceleration

 

On
and at any time after the occurrence of an Event of Default which is continuing
the Facility Agent may, and shall if so directed by the Majority Lenders, by
notice to ABB:

 

(a)                                  cancel the Total Commitments whereupon
they shall immediately be cancelled;

 

(b)                                 declare that all or part of the Advances,
together with accrued interest, and all other amounts accrued under the Finance
Documents be immediately due and payable, whereupon they shall become immediately
due and payable; and/or

 

(c)                                  declare that all or part of the Advances
be payable on demand, whereupon they shall immediately become payable on demand
by the Facility Agent on the instructions of the Majority Lenders.

 

63

 

SECTION 8

CHANGES TO PARTIES

 

24.                           CHANGES TO THE LENDERS

 

24.1                     Assignments and
transfers by the Lenders

 

Subject
to this Clause 24, a Lender (the “Existing
Lender”) may:

 

(a)           assign any of its rights; or

 

(b)           transfer by novation any of its
rights and obligations,

 

to
another bank (the “New Lender”).

 

24.2                     Conditions of assignment
or transfer

 

(a)                                  The consent of ABB is required for an
assignment or transfer by a Lender, unless the assignment or transfer is to
another Lender or an Affiliate of a Lender that is a bank or unless an Event of
Default has occurred and is continuing.

 

(b)                                 The consent of ABB to an assignment or
transfer must not be unreasonably withheld or delayed. ABB will be deemed to
have given its consent 10 Business Days after the Lender has requested it
unless consent is expressly refused by ABB within that time.

 

(c)                                  The consent of ABB to an assignment or
transfer must not be withheld solely because the assignment or transfer may
result in an increase to the Mandatory Cost.

 

(d)                                 An assignment or transfer shall be in
respect of a Commitment of at least $10,000,000 or, if less, the whole of the
Commitment of the relevant assignor or transferor.

 

(e)                                  An assignment or transfer by a Lender
which is also a Swingline Lender of:

 

(i)             its Dollar Swingline Commitment, its Euro Swingline
Commitment or its SEK Swingline Commitment shall only be made if there is a
simultaneous assignment or transfer of an equal amount of its Commitment; or

 

(ii)          its Commitment shall only be effective if either (i)
after such assignment or transfer the aggregate of such Lender’s Dollar
Swingline Commitment, Euro Swingline Commitment and SEK Swingline Commitment
does not exceed its Commitment or (ii) it simultaneously assigns or transfers
an aggregate amount of its Dollar Swingline Commitment, Euro Swingline
Commitment and SEK Swingline Commitment equal to the amount of its Commitment
to be assigned or transferred.

 

64

 

(f)                                    An assignment will only be effective on:
(i) receipt by the Facility Agent of written confirmation from the New Lender
(in form and substance satisfactory to the Facility Agent) that the New Lender
will assume the same obligations to the other Finance Parties and the Obligors
as it would have been under if it was an Original Lender; and (ii) performance
by the Facility Agent of all “know your customer”
or other checks relating to any person that it is required to carry out in
relation to such assignment to a New Lender, the completion of which the
Facility Agent shall promptly notify to the Existing Lender and the New Lender.

 

(g)                                 A transfer will only be effective if the
procedure set out in Clause 24.5 (Procedure for transfer)
is complied with.

 

(h)                                 If:

 

(i)             a Lender assigns or transfers any of its rights or
obligations under the Finance Documents or changes its Facility Office; and

 

(ii)          as a result of circumstances existing at the date the
assignment, transfer or change occurs, an Obligor would be obliged, or at such
date it is reasonably foreseeable that an Obligor would be obliged, to make a
payment to the New Lender or Lender acting through its new Facility Office
under Clause 9.5 (Minimum Interest), Clause 13 (Tax gross-up and indemnities) or Clause 14 (Increased Costs),

 

then the New Lender or Lender acting through its new Facility Office is
only entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would
have been if the assignment, transfer or change had not occurred.

 

(i)                                         For so long as it is a requirement under
Dutch law at the time of an assignment or transfer by way of novation that the
New Lender qualifies as a PMP, a Lender may only assign or transfer by way of
novation all or any of its rights, benefits and obligations hereunder to a New
Lender if and to the extent that such new Lender qualifies as a PMP.

 

(j)                                         For so long as it is a requirement of
Dutch law that each Lender is a PMP and that the Dutch Borrower must verify the
PMP status of a New Lender, a proposed New Lender which is not a Verifiable PMP
shall provide the Dutch Borrower, through the Facility Agent, with information
in respect of itself reasonably requested by the Dutch Borrower with a view to
enabling the Dutch Borrower to verify its PMP status at least ten Business Days
prior to the proposed Transfer Date or the proposed date of assignment in
relation to any assignment or transfer pursuant to which it would become a New
Lender hereunder.

 

65

 

24.3                           Assignment or transfer
fee

 

The
New Lender shall, on the date upon which an assignment or transfer takes
effect, pay to the Facility Agent (for its own account) a fee of $1,500.

 

24.4                           Limitation of
responsibility of Existing Lenders

 

(a)                                Unless expressly agreed to the contrary,
an Existing Lender makes no representation or warranty and assumes no
responsibility to a New Lender for:

 

(i)             the legality, validity, effectiveness,
adequacy or enforceability of the Finance Documents or any other documents;

 

(ii)          the financial condition of ABB or any
Obligor;

 

(iii)       the
performance and observance by ABB or any Obligor of its obligations under the
Finance Documents or any other documents; or

 

(iv)      the accuracy of any statements (whether
written or oral) made in or in connection with any Finance Document or any
other document,

 

and
any representations or warranties implied by law are excluded.

 

(b)                               Each New Lender confirms to the Existing
Lender and the other Finance Parties that it:

 

(i)             has made (and shall continue to make) its
own independent investigation and assessment of the financial condition and
affairs of ABB and each Obligor and its related entities in connection with its
participation in this Agreement and has not relied exclusively on any information
provided to it by the Existing Lender in connection with any Finance Document;
and

 

(ii)          will continue to make its own independent
appraisal of the creditworthiness of ABB and each Obligor and its related
entities whilst any amount is or may be outstanding under the Finance Documents
or any Commitment is in force.

 

(c)                                Nothing in any Finance Document obliges
an Existing Lender to:

 

(i)             accept a re-transfer from a New Lender of
any of the rights and obligations assigned or transferred under this Clause 24;
or

 

(ii)          support any losses directly or indirectly
incurred by the New Lender by reason of the non-performance by ABB or any
Obligor of its obligations under the Finance Documents or otherwise.

 

24.5         Procedure for transfer

 

(a)                                  Subject to the conditions set out in
Clause 24.2 (Conditions of assignment or
transfer) a transfer is effected in accordance with paragraph (b)
below when the Facility Agent executes an otherwise duly completed Transfer
Certificate

 

66

 

delivered to it by the
Existing Lender and the New Lender.  The
Facility Agent shall, as soon as reasonably practicable after receipt by it of
a duly completed Transfer Certificate appearing on its face to comply with the
terms of this Agreement and delivered in accordance with the terms of this
Agreement, execute that Transfer Certificate.

 

(b)                                 The Facility Agent shall only be obliged
to execute a Transfer Certificate delivered to it by the Existing Lender and
the New Lender upon its completion of all “know your customer”
or other checks relating to any person that it is required to carry out in
relation to the transfer to such New Lender.

 

(c)                                  On the Transfer Date:

 

(i)             to the extent that in the Transfer
Certificate the Existing Lender seeks to transfer by novation its rights and
obligations under the Finance Documents each of ABB, the Obligors and the
Existing Lender shall be released from further obligations towards one another
under the Finance Documents and their respective rights against one another
shall be cancelled (being the “Discharged
Rights and Obligations”);

 

(ii)          each of ABB, the Obligors and the New
Lender shall assume obligations towards one another and/or acquire rights
against one another which differ from the Discharged Rights and Obligations
only insofar as ABB, that Obligor and the New Lender have assumed and/or
acquired the same in place of ABB, that Obligor and the Existing Lender;

 

(iii)       the
Agents, the Mandated Lead Arrangers, the New Lender and other Lenders shall
acquire the same rights and assume the same obligations between themselves as
they would have acquired and assumed had the New Lender been an Original Lender
with the rights and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Agents, the Mandated Lead Arrangers and the
Existing Lender shall each be released from further obligations to each other
under this Agreement; and

 

(iv)      the New Lender shall become a Party as a
“Lender”.

 

24.6         Disclosure of information

 

Any
Lender may disclose to any of its Affiliates and any other person:

 

(a)                                to (or through) whom that Lender assigns
or transfers (or may potentially assign or transfer) all or any of its rights
and obligations under this Agreement;

 

(b)                               with (or through) whom that Lender enters
into (or may potentially enter into) any sub-participation in relation to, or
any other transaction under which payments are to be made by reference to, this
Agreement or any Obligor; or

 

67

 

(c)                                to whom, and to the extent that,
information is required to be disclosed by any applicable law or regulation,

 

any
information about ABB, any Obligor, the Group and the Finance Documents as that
Lender shall consider appropriate if, in relation to paragraphs (a) and (b)
above, the person to whom the information is to be given has entered into a
confidentiality undertaking unless such person is any central bank or
supranational bank in which case no confidentiality undertaking will be
required.

 

Notwithstanding
any of the provisions of the Finance Documents, the Obligors and the Finance
Parties hereby agree that each Party and each employee, representative or other
agent of each Party may disclose to any and all persons, without limitation of
any kind, the “tax structure” and
“tax treatment” (in each case
within the meaning of the U.S. Treasury Regulation Section 1.6011-4) of the
Facility and any materials of any kind (including opinions or other tax
analyses) that are provided to any of the foregoing relating to such tax
structure and tax treatment.

 

25.                                 CHANGES TO THE OBLIGORS

 

25.1                           Assignments and transfer
by Obligors

 

Neither
ABB nor any Obligor may assign any of its rights or transfer any of its rights
or obligations under the Finance Documents.

 

25.2                           Additional Borrowers

 

(a)                                  Subject to compliance with paragraphs (c)
and (d) of Clause 20.8 (“Know your Customer”
checks), ABB may request by written notice that any of its wholly
owned Subsidiaries becomes an Additional Borrower.  That Subsidiary shall become an Additional
Borrower if:

 

(i)             that Subsidiary is incorporated in an
Agreed Jurisdiction or all the Lenders approve the addition of that Subsidiary;

 

(ii)          ABB delivers to the Facility Agent a duly
completed and executed Borrower Accession Letter;

 

(iii)       ABB
confirms that no Default is continuing or would occur as a result of that
Subsidiary becoming an Additional Borrower; and

 

(iv)      the Facility Agent has received all of
the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent) in relation to that Additional
Borrower, each in form and substance reasonably satisfactory to the Facility
Agent.

 

(b)                                 The Facility Agent shall notify ABB and
the Lenders promptly upon receiving (in form and substance reasonably
satisfactory to it) all the documents and other evidence listed in Part II of
Schedule 2 (Conditions precedent).

 

(c)                                  Delivery of a Borrower Accession Letter
constitutes confirmation by the relevant Subsidiary that the representations
and warranties in Clause 19.5

 

68

 

(Validity and
admissibility in evidence) and the representations and warranties
deemed to be repeated pursuant to Clause 19.15 (Repetition)
are true and correct in relation to it as at the date of delivery as if made by
reference to the facts and circumstances then existing.

 

25.3                     Resignation of a
Borrower

 

(a)                                  ABB may request that a Borrower ceases to
be a Borrower by delivering to the Facility Agent a Resignation Letter.

 

(b)                                 The Facility Agent shall accept a
Resignation Letter and notify ABB and the Lenders of its acceptance if:

 

(i)             no Default would result from the
acceptance of the Resignation Letter (and ABB has confirmed this to be the
case); and

 

(ii)          the relevant Borrower is under no actual
or contingent obligations under any Finance Documents,

 

whereupon
that company shall cease to be a Borrower and shall have no further rights or
obligations under the Finance Documents.

 

25.4                           Additional Guarantors

 

(a)                                  Subject to compliance with the provisions
of paragraphs (c) and (d) of Clause 20.8 (“Know
Your Customer” Checks), ABB may request that any of its wholly owned
Subsidiaries become an Additional Guarantor. 
That Subsidiary shall become an Additional Guarantor if:

 

(i)             that Subsidiary is incorporated in an
Agreed Jurisdiction or all the Lenders approve the addition of that Subsidiary;

 

(ii)          ABB delivers to the Facility Agent a duly
completed and executed Accession Letter;

 

(iii)       ABB
confirms that no Default is continuing or would occur as a result of that
Subsidiary becoming an Additional Guarantor; and

 

(iv)      the Facility Agent has received all of
the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent) in relation to that Additional
Guarantor, each in form and substance reasonably satisfactory to the Facility
Agent.

 

(b)                                 If legal counsel in the jurisdiction of
incorporation of the relevant Subsidiary so advise, ABB and the Lenders shall
enter into negotiations with a view to agreeing such amendments to Clause 18 (Guarantee and Indemnity) as may be necessary to enable the
Subsidiary to become an Additional Guarantor without contravening any
applicable laws.

 

(c)                                  The Facility Agent shall notify ABB and
the Lenders promptly upon receiving (in form and substance reasonably
satisfactory to it) all the documents and other evidence listed in Part II of
Schedule 2 (Conditions Precedent).

 

69

 

25.5                           Repetition of
Representation

 

Delivery
of an Accession Letter constitutes confirmation by the relevant Subsidiary that
the representations and warranties in Clause 19.5 (Validity and Admissibility in Evidence) and the
representations and warranties deemed to be repeated pursuant to Clause 19.15 (Repetition) are true and correct in
relation to it as at the date of delivery as if made by reference to the facts
and circumstances then existing.

 

25.6                           Resignation of a
Guarantor

 

(a)                                ABB may request that a Guarantor ceases
to be a Guarantor by delivering to the Facility Agent a Resignation Letter.

 

(b)                               The Facility Agent shall accept a
Resignation Letter and notify ABB and the Lenders of its acceptance if:

 

(i)             no Default would result from the
acceptance of the Resignation Letter (and ABB has confirmed this is the case);
and

 

(ii)          in the case of an Original Guarantor, all
the Lenders have consented to ABB’s request.

 

70

 

SECTION 9

THE FINANCE PARTIES

 

26.                                 ROLE OF THE AGENTS AND
THE MANDATED LEAD ARRANGERS

 

26.1                           Appointment of the
Agents

 

(a)                                Each of the Mandated Lead Arrangers and
the Lenders appoints each Agent to act as its agent under and in connection
with the Finance Documents.

 

(b)                               Each of the Mandated Lead Arrangers and
the Lenders authorises each Agent to exercise the rights, powers, authorities
and discretions specifically given to such Agent under or in connection with
the Finance Documents together with any other incidental rights, powers,
authorities and discretions.

 

(c)                                The Facility Agent and the Euro Swingline
Agent shall, unless ABB agrees otherwise, act out of an office in London.

 

(d)                               The Dollar Swingline Agent shall, unless
ABB agrees otherwise, act out of an office in New York.

 

(e)                                The SEK Swingline Agent shall, unless ABB
agrees otherwise, act out of an office in Stockholm.

 

26.2                           Duties of the Agents

 

(a)                                Each Agent shall promptly forward to a
Party the original or a copy of any document which is delivered to that Agent
for that Party by any other Party.

 

(b)                               If the Facility Agent receives notice
from a Party referring to this Agreement, describing a Default and stating that
the circumstance described is a Default, it shall promptly notify the Lenders.

 

(c)                                The Facility Agent shall promptly notify:

 

(i)             the Lenders of any Default arising under
Clause 23.1 (Non-payment); and

 

(ii)          each Swingline Agent of:

 

(A)      any assignments or transfers by a Lender pursuant to
Clause 24 (Changes to the Lenders);
and

 

(B)        any changes to the Obligors pursuant to Clause 25 (Changes to Obligors).

 

(d)                               Each Agent’s duties under the Finance
Documents are solely mechanical and administrative in nature.

 

26.3                           Role of the Mandated
Lead Arrangers

 

Except
as specifically provided in the Finance Documents, the Mandated Lead Arrangers
have no obligations of any kind to any other Party under or in connection with
any Finance Document.

 

71

 

26.4                           No fiduciary duties

 

(a)                                Nothing in this Agreement constitutes an
Agent or a Mandated Lead Arranger as a trustee or fiduciary of any other
person.

 

(b)                               No Agent nor either Mandated Lead
Arranger shall be bound to account to any Lender for any sum or the profit
element of any sum received by it for its own account.

 

26.5                           Business with the Group

 

Each
Agent and each Mandated Lead Arranger may accept deposits from, lend money to
and generally engage in any kind of banking or other business with any of the
Group Companies.

 

26.6                           Rights and discretions
of the Agents

 

(a)                                  Each Agent may rely on:

 

(i)                        any representation, notice or document
believed by it to be genuine, correct and appropriately authorised; and

 

(ii)                     any statement made by a director,
authorised signatory or employee of any person regarding any matters which may
reasonably be assumed to be within his knowledge or within his power to verify.

 

(b)                                 Each Agent may assume (unless it has
received notice to the contrary in its capacity as agent for the Lenders) that:

 

(i)                        no Default has occurred (unless it has
actual knowledge of a Default arising under Clause 23.1 (Non-payment)); and

 

(ii)                     any right, power, authority or discretion
vested in any Party or the Majority Lenders has not been exercised.

 

(c)                                  Each Agent may engage, pay for and rely
on the advice or services of any lawyers, accountants, surveyors or other
experts.

 

(d)                                 Each Agent may act in relation to the
Finance Documents through its personnel and agents.

 

26.7                     Majority Lenders’
instructions

 

(a)                                  Unless a contrary indication appears in a
Finance Document, each Agent shall (a) act in accordance with any instructions
given to it by the Majority Lenders (or, if so instructed by the Majority Lenders,
refrain from acting or exercising any right, power, authority or discretion
vested in it as Agent) and (b) not be liable for any act (or omission) if it
acts (or refrains from taking any action) in accordance with such an
instruction of the Majority Lenders.

 

(b)                                 Unless a contrary indication appears in a
Finance Document, any instructions given by the Majority Lenders will be
binding on all the Finance Parties.

 

72

 

(c)                                  Each Agent may refrain from acting in
accordance with the instructions of the Majority Lenders (or, if appropriate,
the Lenders) until it has received such security as it may require for any
cost, loss or liability (together with any associated VAT) which it may incur
in complying with the instructions.

 

(d)                                 In the absence of instructions from the
Majority Lenders, (or, if appropriate, the Lenders) each Agent may act (or
refrain from taking action) as it considers to be in the best interest of the
Lenders.

 

(e)                                  No Agent is authorised to act on behalf
of a Lender (without first obtaining that Lender’s consent) in any legal or
arbitration proceedings relating to any Finance Document.

 

26.8         Responsibility for
documentation

 

No
Agent nor either Mandated Lead Arranger:

 

(a)                                  is responsible for the adequacy, accuracy
and/or completeness of any information (whether oral or written) supplied by an
Agent, a Mandated Lead Arranger, ABB, any Obligor or any other person given in
or in connection with any Finance Document or the Information Memorandum; or

 

(b)                                 is responsible for the legality,
validity, effectiveness, adequacy or enforceability of any Finance Document or
any other agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with any Finance Document.

 

26.9                           Exclusion of liability

 

(a)                                  Without limiting paragraph (b) below, no
Agent will be liable for any action taken by it under or in connection with any
Finance Document, unless directly caused by its negligence, wilful default or
wilful misconduct.

 

(b)                                 No Party may take any proceedings against
any officer, employee or agent of an Agent in respect of any claim it might
have against such Agent or in respect of any act or omission of any kind by
that officer, employee or agent in relation to any Finance Document and any
officer, employee or agent of such Agent may rely on this Clause.

 

(c)                                  No Agent will (absent negligence, wilful
default or wilful misconduct directly giving rise to such liability) be liable
for any delay (or any related consequences) in crediting an account with an
amount required under the Finance Documents to be paid by such Agent if that
Agent has taken all necessary steps as soon as reasonably practicable to comply
with the regulations or operating procedures of any recognised clearing or settlement
system used by such Agent for that purpose.

 

(d)                                 Nothing in this Agreement shall oblige
the Facility Agent or any Mandated Lead Arranger to carry out any “know your customer” or other checks in relation to any
person on behalf of any Lender and each Lender confirms to the Facility Agent
and the Mandated Lead Arrangers that it is solely 

 

73

 

responsible for any such
checks it is required to carry out and that it may not rely on any statement in
relation to such checks made by the Facility Agent or the Mandated Lead
Arrangers.

 

26.10                     Lenders’ indemnity to
the Agents

 

The
Lenders shall (in proportion to their Commitments or, if the Total Commitments
are then zero, to their Commitments immediately prior to their reduction to
zero) severally indemnify each Agent, within three Business Days of demand,
against any cost, loss or liability incurred by such Agent (otherwise than by
reason of such Agent’s negligence or wilful misconduct) in acting as Agent under
the Finance Documents (unless such Agent has been reimbursed by ABB or the
Obligors pursuant to a Finance Document).

 

26.11                     Resignation of an Agent

 

(a)                                An Agent may resign and appoint one of
its Affiliates as successor by giving notice to the Lenders and ABB provided that such successor shall act out
of an office in (the “Required Location”):

 

(i)             in the case of the Facility Agent,
London;

 

(ii)          in the case of the Dollar Swingline
Agent, New York;

 

(iii)       in
the case of the Euro Swingline Agent, London; and

 

(iv)      in the case of the SEK Swingline Agent,
Stockholm.

 

(b)                               Alternatively an Agent may resign by
giving notice to the Lenders and ABB, in which case the Majority Lenders may
appoint a successor Agent which will act out of an office in the Required Location.

 

(c)                                If the Majority Lenders have not
appointed a successor Agent in accordance with paragraph (b) above within 30
days after notice of resignation was given, the resigning Agent may appoint a
successor Agent which will act out of an office in the Required Location.

 

(d)                               A successor Agent may only be appointed
with the prior consent of ABB (such consent not to be unreasonably withheld or
delayed).

 

(e)                                The retiring Agent shall, at its own
cost, make available to the successor Agent such documents and records and
provide such assistance as the successor Agent may reasonably request for the
purposes of performing its functions as Agent under the Finance Documents.

 

(f)                                  Such Agent’s resignation notice shall
only take effect upon the appointment of a successor as contemplated in
paragraphs (b) and (c) above.

 

(g)                               Upon the appointment of a successor, the
retiring Agent shall be discharged from any further obligation in respect of
the Finance Documents but shall remain entitled to the benefit of this Clause 26.  Its successor and each of the

 

74

 

other Parties
shall have the same rights and obligations amongst themselves as they would
have had if such successor had been an original Party.

 

(h)                               After consultation with ABB, the Majority
Lenders may, by notice to an Agent, require it to resign in accordance with
paragraph (b) above.  In this event, such
Agent shall resign in accordance with paragraph (b) above.

 

26.12                     Confidentiality

 

(a)                                In acting as agent for the Finance
Parties, each Agent shall be regarded as acting through its agency division
which shall be treated as a separate entity from any other of its divisions or
departments.

 

(b)                               If information is received by another
division or department of an Agent, it may be treated as confidential to that
division or department and such Agent shall not be deemed to have notice of it.

 

(c)                                Notwithstanding any other provision of
any Finance Document to the contrary, neither Agent nor either Mandated Lead
Arranger is obliged to disclose to any other person (i) any confidential
information or (ii) any other information if the disclosure would or might in
its reasonable opinion constitute a breach of any law or a breach of a
fiduciary duty.

 

26.13                     Relationship with the
Lenders

 

(a)                                Each Agent may treat each Lender as a
Lender, entitled to payments under this Agreement and acting through its
Facility Office unless it has received not less than 5 Business Days’ prior
notice from that Lender to the contrary in accordance with the terms of this
Agreement.

 

(b)                               Each Lender shall supply each Agent with
any information required by such Agent in order to calculate the Mandatory
Cost.

 

26.14                     Credit appraisal by the
Lenders

 

Without
affecting the responsibility of each Obligor for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms to
each Agent and each Mandated Lead Arranger that it has been, and will continue
to be, solely responsible for making its own independent appraisal and investigation
of all risks arising under or in connection with any Finance Document including
but not limited to:

 

(a)                                the financial condition, status and
nature of each Group Company;

 

(b)                               the legality, validity, effectiveness,
adequacy or enforceability of any Finance Document and any other agreement,
arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document;

 

(c)                                whether that Lender has recourse, and the
nature and extent of that recourse, against any Party or any of its respective
assets under or in connection with any Finance Document, the transactions
contemplated by the Finance 

 

75

 

Documents or any
other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and

 

(d)                               the adequacy, accuracy and/or
completeness of the Information Memorandum and any other information provided
by an Agent, any other Party or by any other person under or in connection with
any Finance Document, a Mandated Lead Arranger the transactions contemplated by
the Finance Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any
Finance Document.

 

26.15                     Reference Banks

 

If a Reference
Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Facility Agent shall (in consultation
with ABB) appoint another Lender or an Affiliate of a Lender to replace that
Reference Bank.

 

27.                                 CONDUCT OF BUSINESS BY
THE FINANCE PARTIES

 

No provision of this
Agreement will:

 

(a)                                interfere with the right of any Finance
Party to arrange its affairs (tax or otherwise) in whatever manner it thinks
fit;

 

(b)                               oblige any Finance Party to investigate
or claim any credit, relief, remission or repayment available to it or the
extent, order and manner of any claim; or

 

(c)                                oblige any Finance Party to disclose any
information relating to its affairs (tax or otherwise) or any computations in
respect of Tax.

 

28.                                 SHARING AMONG THE
LENDERS

 

28.1                           Payments to Lenders

 

If
a Lender (a “Recovering Lender”)
receives or recovers any amount from ABB or an Obligor other than in accordance
with Clause 29 (Payment mechanics)
and applies that amount to a payment due under the Finance Documents then:

 

(a)                                the Recovering Lender shall, within 3
Business Days, notify details of the receipt or recovery, to the Facility
Agent;

 

(b)                               the Facility Agent shall determine
whether the receipt or recovery is in excess of the amount the Recovering
Lender would have been paid had the receipt or recovery been received or made
by the Facility Agent and distributed in accordance with Clause 29 (Payment mechanics), without taking account
of any Tax which would be imposed on the Facility Agent in relation to the
receipt, recovery or distribution; and

 

(c)                                the Recovering Lender shall, within three
Business Days of demand by the Facility Agent, pay to the Facility Agent an
amount (the “Sharing Payment”)
equal to such receipt or recovery less any amount which the Facility Agent 

 

76

 

determines may be
retained by the Recovering Lender as its share of any payment to be made, in
accordance with Clause 29.5 (Partial
payments).

 

28.2                           Redistribution of
payments

 

The
Facility Agent shall treat the Sharing Payment as if it had been paid by ABB or
the relevant Obligor (as the case may be) and distribute it between the Finance
Parties (other than the Recovering Lender) in accordance with Clause 29.5 (Partial payments).

 

28.3                           Recovering Lender’s
rights

 

(a)                                On a distribution by the Facility Agent
under Clause 28.2 (Redistribution of
payments), the Recovering Lender will be subrogated to the rights of
the Finance Parties which have shared in the redistribution.

 

(b)                               If and to the extent that the Recovering
Lender is not able to rely on its rights under paragraph (a) above, ABB or the
relevant Obligor (as the case may be) shall be liable to the Recovering Lender
for a debt equal to the Sharing Payment which is immediately due and payable.

 

28.4                           Reversal of
redistribution

 

If
any part of the Sharing Payment received or recovered by a Recovering Lender
becomes repayable and is repaid by that Recovering Lender, then:

 

(a)                                each Lender which has received a share of
the relevant Sharing Payment pursuant to Clause 28.2 (Redistribution of payments) shall, upon
request of the Facility Agent, pay to the Facility Agent for the account of
that Recovering Lender an amount equal to its share of the Sharing Payment
(together with an amount as is necessary to reimburse that Recovering Lender
for its proportion of any interest on the Sharing Payment which that Recovering
Lender is required to pay); and

 

(b)                               that Recovering Lender’s rights of
subrogation in respect of any reimbursement shall be cancelled and ABB or the
relevant Obligor (as the case may be) will be liable to the reimbursing Lender
for the amount so reimbursed.

 

28.5                           Exceptions

 

(a)                                This Clause 28 shall not apply to the
extent that the Recovering Lender would not, after making any payment pursuant
to this Clause, have a valid and enforceable claim against ABB or the relevant
Obligor (as the case may be).

 

(b)                               A Recovering Lender is not obliged to
share with any other Lender any amount which the Recovering Lender has received
or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)             it notified the other Lenders of the
legal or arbitration proceedings; and

 

(ii)          the other Lender had an opportunity to
participate in those legal or arbitration proceedings but did not do so as soon
as reasonably

 

77

 

practicable having received notice or did not take
separate legal or arbitration proceedings.

 

78

 

SECTION 10

ADMINISTRATION

 

29.           PAYMENT MECHANICS

 

29.1         Payments to the Agents

 

(a)                                For the purpose of this Clause 29 a
reference to the “Relevant Agent”
means:

 

(i)             in relation to payments under the Dollar Swingline
Facility, the Dollar Swingline Agent;

 

(ii)          in relation to payments under the Euro
Swingline Facility, the Euro Swingline Agent;

 

(iii)       in
relation to payments under the SEK Swingline Facility, the SEK Swingline Agent;
and

 

(iv)      for all other payments, the Facility
Agent.

 

(b)                               On each date on which a Borrower or a
Lender is required to make a payment under a Finance Document, such Borrower
or, as the case may be, such Lender shall make the same available to the
Relevant Agent (unless a contrary indication appears in a Finance Document) for
value on the due date at the time and in such funds specified by the Relevant
Agent as being customary at the time for settlement of transactions in the
relevant currency in the place of payment.

 

(c)                                Payment shall be made to such account in
the principal financial centre of the country of that currency (or, in relation
to Euro, in a principal financial centre in a Participating Member State or
London) with such bank as the Relevant Agent specifies.

 

29.2                           Distributions by the
Facility Agent

 

Each
payment received by an Agent under the Finance Documents for another Party
shall, subject to Clause 29.3 (Distributions
to the Obligors) and Clause 29.4 (Clawback)
be made available by such Agent as soon as practicable after receipt to the
Party entitled to receive payment in accordance with this Agreement (in the
case of a Lender, for the account of its Facility Office), to such account as
that Party may notify to the Facility Agent by not less than 5 Business Days’
notice with a bank in the principal financial centre of the country of that
currency (or, in relation to Euro, in the principal financial centre of a
Participating Member State or London).

 

29.3                           Distributions to the
Obligors

 

An
Agent may (with the consent of ABB or the relevant Obligor (as the case may be)
or in accordance with Clause 30 (Set-off))
apply any amount received by it for ABB or that Obligor in or towards payment
(on the date and in the currency and funds of receipt) of any amount due from
ABB or that Obligor (as the case may be) under the Finance Documents or in or
towards purchase of any amount of any currency to be so applied.

 

79

 

29.4                           Clawback

 

(a)                                Where a sum is to be paid to an Agent
under the Finance Documents for another Party, such Agent is not obliged to pay
that sum to that other Party (or to enter into or perform any related exchange
contract) until it has been able to establish to its absolute satisfaction that
it has actually received that sum (and such Agent shall make such due enquiry
as a diligent agent would make in so establishing).

 

(b)                               If an Agent pays an amount to another
Party and it proves to be the case that such Agent had not actually received
that amount, then the Party to whom that amount (or the proceeds of any related
exchange contract) was paid by such Agent shall on demand refund the same to
such Agent together with interest on that amount from the date of payment to
the date of receipt by such Agent, calculated by such Agent to reflect its cost
of funds.

 

(c)                                In the event that a Lender fails to make
its participation in an Advance available to the Relevant Agent (as defined in
Clause 29.1 (Payments to the Agents))
in accordance with the terms of this Agreement, such Lender hereby indemnifies
the Relevant Agent on demand against all costs, losses and expenses that the
Relevant Agent may incur as a result of such failure (including, without
limitation, where the Relevant Agent, at its sole option, makes arrangements to
make available to the relevant Borrower an amount equal to said participation).

 

(d)                               For the purposes of paragraph (c) of this
Clause 29.4, if a Lender makes its participation available to the Relevant
Agent after 3.00 p.m. (London time) on the due date, such participation shall
be deemed to have been made available on the Business Day immediately
succeeding the said due date.

 

29.5                           Partial payments

 

(a)                                If an Agent receives a payment that is
insufficient to discharge all the amounts then due and payable by ABB or the
Obligors under the Finance Documents, such Agent shall apply that payment
towards the obligations of the Obligors under the Finance Documents in the
following order:

 

(i)             first, in or towards payment pro rata of any
unpaid fees, costs and expenses of the Agents under the Finance Documents;

 

(ii)          secondly, in or towards payment pro rata of any
accrued interest or commission due but unpaid under this Agreement;

 

(iii)       thirdly, in or towards payment pro rata of any principal due but unpaid under
this Agreement; and

 

(iv)      fourthly, in or towards payment pro rata of any
other sum due but unpaid under the Finance Documents.

 

(b)                               The Facility Agent shall, if so directed
by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv)
above.

 

80

 

(c)                                Paragraphs (a) and (b) above will
override any appropriation made by ABB or any Obligor.

 

29.6                           No set-off by Obligors

 

All
payments to be made by ABB or the Obligors under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim.

 

29.7                           Business Days

 

(a)                                Any payment which is due to be made on a
day that is not a Business Day shall be made on the next Business Day in the
same calendar month (if there is one) or the preceding Business Day (if there
is not).

 

(b)                               During any extension of the due date for
payment of any principal or an Unpaid Sum under this Agreement interest is
payable on the principal at the rate payable on the original due date.

 

29.8                           Currency of account

 

(a)                                Subject to paragraphs (b) to (e) below,
the Base Currency is the currency of account and payment for any sum due from
ABB or the Obligors under any Finance Document.

 

(b)                               A repayment of an Advance or Unpaid Sum
or a part of an Advance or Unpaid Sum shall be made in the currency in which
that Advance or Unpaid Sum is denominated on its due date.

 

(c)                                Each payment of interest shall be made in
the currency in which the sum in respect of which the interest is payable was
denominated when that interest accrued.

 

(d)                               Each payment in respect of costs,
expenses or Taxes shall be made in the currency in which the costs, expenses or
Taxes are incurred.

 

(e)                                Any amount expressed to be payable in a
currency other than the Base Currency shall be paid in that other currency.

 

29.9                           Change of currency

 

(a)                                Unless otherwise prohibited by law, if
more than one currency or currency unit are at the same time recognised by the
central bank of any country as the lawful currency of that country, then:

 

(i)             any reference in the Finance Documents
to, and any obligations arising under the Finance Documents in, the currency of
that country shall be translated into, or paid in, the currency or currency
unit of that country designated by the Facility Agent (after consultation with
ABB); and

 

(ii)          any translation from one currency or
currency unit to another shall be at the official rate of exchange recognised
by the central bank for the 

 

81

 

conversion of that
currency or currency unit into the other, rounded up or down by the Facility
Agent (acting reasonably).

 

(b)                               If a change in any currency of a country
occurs, this Agreement will, to the extent the Facility Agent (acting
reasonably and after consultation with ABB) specifies to be necessary, be
amended to comply with any generally accepted conventions and market practice
in the Relevant Interbank Market and otherwise to reflect the change in
currency.

 

30.                                 SET-OFF

 

Without
prejudice to the rights at law of each Finance Party, while an Event of Default
is continuing, a Finance Party may set off any matured obligation due from ABB
or the Obligors under the Finance Documents (to the extent beneficially owned
by that Finance Party) against any matured obligation owed by that Finance
Party to ABB or the Obligors, regardless of the place of payment, booking
branch or currency of either obligation. 
If the obligations are in different currencies, the Finance Party may
convert either obligation at a market rate of exchange in its usual course of
business for the purpose of the set-off.

 

31.                                 NOTICES

 

31.1                           Communications in
writing

 

(a)                                Any communication to be made under or in
connection with the Finance Documents shall be made in writing and, unless
otherwise stated, may be made by fax or letter.

 

(b)                               With the consent of the relevant Lender,
the Agents may serve notices and other information on a Lender by way of
electronic mail.

 

31.2                           Addresses

 

(a)                                The address and fax number (and the
department or officer, if any, for whose attention the communication is to be
made) of each Party for any communication or document to be made or delivered
under or in connection with the Finance Documents is:

 

(i)             in the case of the Original Obligors,
that identified in Part V (The Original
Obligors) of Schedule 1, with a copy to ABB and ABB Capital B.V.,
Zurich Branch;

 

(ii)          in the case of ABB, that identified in
Part V (The Original Obligors) of Schedule 1;

 

(iii)       in
the case of an Additional Obligors, that identified in the Borrower Accession
Letter relating to that Additional Obligors, with a copy to ABB and ABB Capital
B.V., Zurich Branch;

 

(iv)      in the case of ABB Capital B.V., Zurich
Branch, that identified in paragraph (b) below;

 

82

 

(v)         in the case of each Lender, that notified
in writing to the Facility Agent on or prior to the date on which it becomes a
Party; and

 

(vi)      in the case of an Agent, that identified
in paragraph (b) below,

 

or
any substitute address, fax number or department or officer as the Party may
notify to the Facility Agent (or the Facility Agent may notify to the other
Parties, if a change is made by the Facility Agent) by not less than 5 Business
Days’ notice.

(b)

 

	
   

  	
  (i)

  	
  the Facility Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse

  
	
   

  	
   

  	
  1
  Cabot Square

  
	
   

  	
   

  	
  Canary
  Wharf

  
	
   

  	
   

  	
  London
  E14 4QJ

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Loans
  Agency / Paul Ronchi, Agency department

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel:

  	
  020
  7888 8361 8362

  
	
   

  	
   

  	
  Fax:

  	
  020
  7458 8204 / 020 7888 8398

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Dollar Swingline Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse, Cayman Islands Branch

  
	
   

  	
   

  	
  Eleven
  Madison Avenue

  
	
   

  	
   

  	
  New
  York, NY 10010-3629

  
	
   

  	
   

  	
  USA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Karl
  Studer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel:

  	
  00
  212 325 9163

  
	
   

  	
   

  	
  Fax:

  	
  00
  212 325 8326

  
	
   

  	
   

  	
  E-mail:

  	
  karl.studer@csfb.com

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  the Euro Swingline Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse

  
	
   

  	
   

  	
  1
  Cabot Square

  
	
   

  	
   

  	
  Canary
  Wharf

  
	
   

  	
   

  	
  London
  E14 4QJ

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Loans
  Agency

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel:

  	
  020
  7888 8361 8362

  
	
   

  	
   

  	
  Fax:

  	
  020
  7458 8204 / 020 7888 8398

  
					

 

83

 

	
   

  	
  (iv)

  	
  the SEK Swingline Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seb Merchant Banking, Skandinaviska Enskilda Banken,
  Ab (Publ)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Rissneleden

  
	
   

  	
   

  	
  110106
  40

  
	
   

  	
   

  	
  Stockholm

  
	
   

  	
   

  	
  Sweden

  
	
   

  	
   

  	
  Attn:
  SEB Merchant Banking, Structured Finance Operations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel:
  +46 8 763 8166

  
	
   

  	
   

  	
  Fax:
  +46 8 6110384

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  ABB Capital B.V., Zurich Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Affolternstrasse
  44

  
	
   

  	
   

  	
  PO
  Box 8131

  
	
   

  	
   

  	
  CH-8050

  
	
   

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  Attn:

  	
  Head
  of GTO

  
	
   

  	
   

  	
  Fax:

  	
  +41
  43 317 7474

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Copy:

  	
  Legal
  Department

  
	
   

  	
   

  	
  Fax:

  	
  +41
  43 317 7992

  

 

31.3                           Delivery

 

(a)                                Any communication or document made or
delivered by one person to another under or in connection with the Finance
Documents will only be effective:

 

(i)             if by way of fax, when received in
legible form; or

 

(ii)          if by way of letter, when it has been
left at the relevant address or 5 (in the case of domestic mail) or 10 (in the
case of air mail) Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address; or

 

(iii)       if
by way of electronic mail, when received.

 

and,
if a particular department or officer is specified as part of its address
details provided under Clause 31.2 (Addresses),
if addressed to that department or officer, provided
that if receipt is on a day that is not a working day in the country
of receipt or is at a time outside normal business hours, such communication
shall be effective on the next succeeding working day.

 

(b)                               Any communication or document to be made
or delivered to an Agent will be effective only when actually received by such
Agent and then only if it is expressly marked for the attention of the
department or officer identified in Clause 31.2 (Addresses) (or any substitute department or officer as the
relevant Agent shall specify for this purpose).

 

(c)                                All notices from or to an Obligor shall
be sent through the Facility Agent.

 

84

 

31.4                           Notification of address
and fax number

 

Promptly
upon receipt of notification of an address, fax number or change of address or
fax number pursuant to Clause 31.2 (Addresses)
or changing its own address or fax number, the Facility Agent shall notify the
other Parties.

 

31.5                           English language

 

(a)                                Any notice given under or in connection
with any Finance Document must be in English.

 

(b)                               All other documents provided under or in
connection with any Finance Document must be:

 

(i)             in English; or

 

(ii)          if not in English, and if so required by
the Facility Agent, accompanied by a certified English translation.

 

32.                                 CALCULATIONS AND
CERTIFICATES

 

32.1                           Accounts

 

In
any litigation or arbitration proceedings arising out of or in connection with
a Finance Document, the entries made in the accounts maintained by a Finance
Party are prima facie evidence of the matters to which they relate.

 

32.2                           Certificates and
Determinations

 

Except
where otherwise indicated, any certification or determination by a Finance Party
of a rate or amount under any Finance Document is, in the absence of manifest
error, conclusive evidence of the matters to which it relates.

 

32.3                           Day count convention

 

Any
interest, commission or fee accruing under a Finance Document will accrue from day
to day and is calculated on the basis of the actual number of days elapsed and
a year of 360 days or, in any case where the practice in the Relevant Interbank
Market differs, in accordance with that market practice.

 

33.                                 PARTIAL INVALIDITY

 

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

 

34.                                 REMEDIES AND WAIVERS

 

No
failure to exercise, nor any delay in exercising, on the part of any Finance
Party, any right or remedy under the Finance Documents shall operate as a
waiver, nor shall any single or partial exercise of any right or remedy prevent
any further or other exercise or the exercise of any other right or
remedy.  The rights and remedies

 

85

 

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

 

35.                                 AMENDMENTS AND WAIVERS

 

35.1                           Required consents

 

(a)                                Subject to Clause 35.2 (Exceptions) any term of the Finance
Documents may be amended or waived only with the consent of the Majority
Lenders and ABB and any such amendment or waiver will be binding on all
Parties.

 

(b)                               The Facility Agent may effect (and is
hereby so authorised by each Finance Party), on behalf of any Finance Party,
any amendment or waiver permitted by this Clause.

 

35.2                           Exceptions

 

(a)                                An amendment or waiver that has the
effect of changing or which relates to:

 

(i)             the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(ii)          an extension to the date of payment of
any amount under the Finance Documents;

 

(iii)       a
reduction in the Margin or the amount of any payment of principal, interest,
fees or commission payable;

 

(iv)      an increase in any Commitment;

 

(v)         any provision which expressly requires
the consent of all the Lenders;

 

(vi)      Clause 2.2 (Lenders’
rights and obligations), Clause 4.2 (Further
conditions precedent), Clause 24 (Changes to
the Lenders), Clause 25 (Changes to the Obligors),
Clause 28 (Sharing among the Lenders) or this
Clause 35; or

 

(vii)   any
change to the Obligors other than in accordance with Clause 25 (Changes to the Obligors),

 

shall
not be made without the prior consent of all the Lenders.

 

(b)                               An amendment or waiver which relates to
the rights or obligations of any Agent or either Mandated Lead Arranger may not
be effected without the consent of such Agent or such Mandated Lead Arranger.

 

36.                                 COUNTERPARTS

 

Each
Finance Document may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy
of the Finance Document.

 

86

 

SECTION 11

GOVERNING LAW AND ENFORCEMENT

 

37.                                 GOVERNING LAW

 

This
Agreement is governed by English law.

 

38.                                 ENFORCEMENT

 

(a)                                       The courts of England have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Agreement (including a dispute regarding the existence, validity or termination
of this Agreement) (a “Dispute”).

 

(b)                                      The Parties agree that the courts of
England are the most appropriate  and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.

 

(c)                                       This Clause 38 is for the benefit of the
Finance Parties only.  As a result, no
Finance Party shall be prevented from taking proceedings relating to a Dispute
(“Proceedings”) in any other courts with
jurisdiction.

 

(d)                                      If ABB Capital B.V. is represented by an
attorney or attorneys in connection with the signing and/or execution and/or
delivery of this Agreement or any agreement or document referred to herein or
made pursuant hereto and the relevant power or powers of attorney is or are
expressed to be governed by the laws of a particular jurisdiction, it is hereby
expressly acknowledged and accepted by the other parties hereto that such laws shall
govern the existence and extent of such attorney’s or attorneys’ authority and
the effects of the exercise thereof.

 

(e)                                       ABB and each Obligor incorporated in a
jurisdiction other than England and Wales agree that the documents which start
any Proceedings in England and any other documents required to be served in
relation to those Proceedings may be served on ABB Limited, at Daresbury Park,
Daresbury, Warrington WA4 4BT, Cheshire, United Kingdom or, if different, its
registered office, with a copy to ABB. 
If the appointment of the person mentioned in this sub-clause (e) ceases
to be effective, ABB and each Obligor shall immediately appoint another person
in England to accept service of process on its behalf in England.  If ABB or any Obligor fails to do so (and
such failure continues for a period of not less than fourteen days), the
Facility Agent shall be entitled to appoint such a person by notice to ABB or
the relevant Obligor (as the case may be). 
Nothing contained herein shall restrict the right to serve process in
any other manner allowed by law.

 

THIS AGREEMENT has been entered into on the date stated at the beginning of this
Agreement.

 

87

 

SCHEDULE 1

 

Part I

The Original Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Commitment ($)

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  5 The North Colonnade Canary Wharf London E14 4BB

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  37 Place Du Marche Saint Honore 75 001 Paris

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank,
  N.A.

  	
   

  	
  Citigroup Centre 25 Canada Square Canary Wharf London E14 5HQ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commerzbank
  Aktiengesellschaft, Großkundencenter Region Mitte

  	
   

  	
  Neue Mainzer Landstrasse 33-35 60311 Frankfurt am Main

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit
  Suisse

  	
   

  	
  1 Cabot Square Canary Wharf London E14 4QJ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank Luxembourg S.A.

  	
   

  	
  2, boulevard Konrad Adenauer L-1115 Luxembourg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner
  Bank AG, Niederlassung Luxemburg

  	
   

  	
  26, rue du Marché-aux-Herbes L-2097 Luxembourg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank
  plc

  	
   

  	
  8 Canada Square Canary Wharf London E14 5HQ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque
  Luxembourg Société Anonyme

  	
   

  	
  4, rue Alphonse Weicker L-2721 Luxembourg-Kirchberg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank
  AB (publ)

  	
   

  	
  International Loan Services, H 352 SE-105 71 Stockholm Sweden

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska
  Enskilda Banken AB (publ)

  	
   

  	
  Rissneleden 110 106 40 Stockholm Sweden

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska
  Handelsbanken AB (publ)

  	
   

  	
  Blasieholmstorg 11 SE-10670 Stockholm Sweden

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

88

 

	
  ABN AMRO
  Bank N.V., Niederlassung Deutschland

  	
   

  	
  Theodor-Heuss-Allee 80 D-60486 Frankfurt Germany

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao
  Vizcaya Argentaria S.A.

  	
   

  	
  108 Cannon Street London EC4N 6EU

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of
  America, N.A.

  	
   

  	
  5 Canada Square London E14 5AQ

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank
  ASA

  	
   

  	
  DnB NOR Bank ASA, KKD Stranden 21, 0021 Oslo

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING
  Luxembourg S.A.

  	
   

  	
  52 route d’Esch L-2965 Luxembourg

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV
  Dublin Branch

  	
   

  	
  KBC Bank NV Dublin Branch Sandwith Street Dublin 2

  	
   

  	
  72,500,000

  	
   

  
	
  UBS Limited

  	
   

  	
  1, Finsbury Avenue, London EC2M 2PP

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banca Intesa
  SpA

  	
   

  	
  London Branch, 90 Queen St, London, EC4N 1SA

  	
   

  	
  52,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  2,000,000,000

  	
   

  

 

89

 

Part II

The Dollar Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Dollar Swingline 

  Commitment ($)

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  200 Cedar Knolls Road,Whippany, New Jersey, 07981,U.S.A

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  French American Banking Corporation PO Box 7589 FDR station, NY 10150

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank,
  N.A.

  	
   

  	
  399 Park Ave 16th floor, NY, NY 10043

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit
  Suisse, Cayman Islands Branch

  	
   

  	
  One Madison Avenue New York, NY 10010

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank Luxembourg S.A. c/o Deutsche Bank AG New York

  	
   

  	
  90 Hudson Street New Jersey NJ 07302

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner
  Bank AG,

  Niederlassung Luxemburg c/o 

  Dresdner Bank AG New York Branch

  	
   

  	
  1301 Avenue of the Americas, 10th Floor New York, NY 10019

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank
  plc

  	
   

  	
  One HSBC Centre 26th Floor, Buffalo NY 14203

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque
  Luxembourg Société Anonyme (acting through HVB New York Branch)

  	
   

  	
  150 East 42nd Street New York, NY 10017

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank
  AB (publ)

  	
   

  	
  Nordea Bank Finland PLC, New York Branch 437 Madison Avenue New York,
  NY 10022

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska
  Enskilda Banken AB (publ)

  	
   

  	
  245 Park Avenue, 42nd Floor New York, NY 10167

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska
  Handelsbanken, New York Branch

  	
   

  	
  875 Third Avenue NY 10022-7218 New York

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

90

 

	
  ABN AMRO
  Bank N.V.

  	
   

  	
  540 West Madison Street, Suite 2621 Chicago Illinois 60661

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao
  Vizcaya Argentaria S.A.

  	
   

  	
  1345 Avenue of the Americas 45th Floor, New York N.Y. 10105

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of
  America, N.A.

  	
   

  	
  Bank of America Corporate Centre 101 N. Tryon Street15th Floor
  Charlotte NC 28255

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank
  ASA

  	
   

  	
  200 Park Avenue - 31st Floor New York, NY 10166

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV
  New York Branch

  	
   

  	
  125 West 55th Street New York NY 10019

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Loan
  Finance LLC

  	
   

  	
  677 Washington Blvd. Stamford, CT 06901 USA

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  750,000,000

  	
   

  

 

91

 

Part III

The Euro Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Euro Swingline Commitment ($)

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  London
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  Paris branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank,
  N.A.

  	
   

  	
  London
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit
  Suisse

  	
   

  	
  London
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank Luxembourg S.A.

  	
   

  	
  Luxembourg
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner
  Bank AG, Niederlassung Luxemburg

  	
   

  	
  Luxembourg
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank
  plc

  	
   

  	
  London
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque
  Luxembourg Société Anonyme

  	
   

  	
  Luxembourg
  branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank
  AB (publ)

  	
   

  	
  Stockholm
  branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska
  Enskilda Banken AB (publ)

  	
   

  	
  Stockholm
  branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska
  Handelsbanken AB (publ)

  	
   

  	
  Stockholm
  branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABN AMRO
  Bank N.V., Niederlassung Deutschland

  	
   

  	
  Frankfurt
  branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao
  Vizcaya Argentaria S.A.

  	
   

  	
  London
  branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of
  America, N.A.

  	
   

  	
  London
  branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank
  ASA

  	
   

  	
  Oslo branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV
  Dublin Branch

  	
   

  	
  Dublin
  branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Limited

  	
   

  	
  London
  branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  750,000,000

  	
   

  

 

92

 

Part IV

The SEK Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  SEK Swingline

  Commitment ($)

  	
   

  
	
  Skandinaviska
  Enskilda Banken

  AB (publ)

  	
   

  	
  Rissneleden 110

  106 40 Stockholm

  Sweden

  	
   

  	
  70,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank
  AB (publ)

  	
   

  	
  International Loan Services,

  H 352

  SE-105 71 Stockholm

  Sweden

  	
   

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska
  Handelsbanken AB

  (publ)

  	
   

  	
  Blasieholmstorg 11

  SE-10670 Stockholm

  Sweden

  	
   

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  200,000,000

  	
   

  

 

93

 

Part V

The Original Obligors

 

	
  Name of Original

  Borrower

  	
   

  	
  Address

  	
   

  	
  Jurisdiction
  of

  incorporation

  
	
  ABB Capital B.V.

  	
   

  	
  Burgemeester Haspelslaan 65, 5/F

  PO Box 74690

  Amstelveen

  NL-1181 NB

  Netherlands

  	
   

  	
  Netherlands

  
	
   

  	
   

  	
  Attention:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 31 20 445 9844

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Asea Brown

  Boveri Ltd

  	
   

  	
  Affolternstrasse 44

  CH-8050 Zurich

  Switzerland

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  Attention:

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  +41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: +41 43 317 7992

  	
   

  	
   

  
									

 

	
  Name of Original

  Guarantor

  	
   

  	
  Address

  	
   

  	
  Jurisdiction
  of

  incorporation

  
	
  ABB Capital B.V.

  	
   

  	
  Burgemeester Haspelslaan 65, 5/F

  PO Box 74690

  Amstelveen

  NL-1181 NB

  Netherlands

  	
   

  	
  Netherlands

  
	
   

  	
   

  	
  Attention:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 31 20 445 9844

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Asea Brown

  Boveri Ltd

  	
   

  	
  Affolternstrasse 44

  CH-8050 Zurich

  Switzerland

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  Attention:

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  +41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  
							

 

94

 

	
  ABB Ltd

  	
   

  	
  Affolternstrasse 44

  CH-8050 Zurich

  Switzerland

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  Attention: 

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  +41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: +41 43 317 7992

  	
   

  	
   

  

 

95

 

SCHEDULE 2

CONDITIONS PRECEDENT

 

Part I

Conditions Precedent

 

1.                                 Corporate Documents

 

(a)                                      A copy of
the constitutional documents of each Obligor.

 

(b)                                     A copy of
a resolution of the board of directors of each Obligor (if applicable) or, in
the case of ABB Capital B.V., a copy of a resolution of the board of managing
directors (directie) or, in the
case of ABB, a copy of an excerpt of the minutes of the board of directors of
ABB:

 

(i)                        approving
the terms of, and the transactions contemplated by, the Finance Documents to
which it is a party and resolving that it execute the Finance Documents to
which it is a party;

 

(ii)                     (other
than in relation to ABB) authorising a specified person or persons to execute
the Finance Documents to which it is a party on its behalf; and

 

(iii)                  authorising
a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices (including, if relevant, any Utilisation Request) to be
signed and/or despatched by it under or in connection with the Finance
Documents to which it is a party.

 

(c)                                      A copy of
a shareholders resolutions of ABB Capital B.V.

 

(d)                                     A copy of
a shareholders resolution of ABB Asea Brown Boveri Ltd.

 

(e)                                      A specimen
of the signature of each person authorised by the resolution referred to in
paragraph (b) above.

 

(f)                                        A
certificate of each Obligor (signed without personal liability by an authorised
signatory of each Obligor) confirming that borrowing or guaranteeing, as
appropriate, the Total Commitments would not cause any borrowing, guaranteeing
or similar limit binding on that relevant Obligor to be exceeded.

 

(g)                                     A
certificate of an authorised signatory of the relevant Obligor, certifying
without personal liability that each copy document relating to it specified in
paragraph 1 (a) - (f) of this Schedule 2 is correct, complete and in full force
and effect as at a date no earlier than the date of this Agreement.

 

96

 

2.                                 Legal opinions

 

(a)                                      A legal
opinion of Clifford Chance Limited Liability Partnership, legal advisers to the
Mandated Lead Arrangers and the Agents in England, substantially in the form
distributed to the Original Lenders prior to signing this Agreement.

 

(b)                                     A legal
opinion of Clifford Chance Limited Liability Partnership, Amsterdam, legal
advisers to the Mandated Lead Arranger and the Agents in the Netherlands in the
form approved by the Facility Agent.

 

(c)                                      A legal
opinion of Baer & Karrer, legal advisers to the Mandated Lead Arrangers and
the Agents in Switzerland in the form approved by the Facility Agent.

 

3.                                 Other documents and evidence

 

(a)                                      Evidence
that the process agent referred to in paragraph (e) of Clause 38 (Service of process) has accepted its
appointment.

 

(b)                                     Repayment
and cancellation in full of the Existing Credit Facility.

 

(c)                                      The
Original Financial Statements of each Obligor.

 

(d)                                     Evidence
that the fees, costs and expenses then due from ABB pursuant to Clause 12 (Fees) and Clause 17 (Costs and expenses) have been paid or will
be paid by the first Utilisation Date.

 

97

 

Part II

Additional Obligor Conditions Precedent

 

1.                                 An
Accession Letter, duly executed by the Additional Obligor and ABB.

 

2.                                 A copy of
the constitutional documents of the Additional Obligor.

 

3.                                 A copy of
a resolution of the board of directors, or other suitable authority, of the
Additional Obligor:

 

(a)                                      approving
the terms of, and the transactions contemplated by, the Accession Letter and
the Finance Documents and resolving that it execute the Accession Letter;

 

(b)                                     authorising
a specified person or persons to execute the Accession Letter on its behalf;
and

 

(c)                                      authorising
a specified person or persons, on its behalf, to sign and/or despatch all other
documents and notices (including any Utilisation Request) to be signed and/or
despatched by it under or in connection with the Finance Documents.

 

4.                                 If
required under applicable law, a copy of a resolution of the Additional Obligor
as Guarantor stating that the shareholders resolve and approve the entering
into, and the terms and conditions of, this Agreement, in particular, in
relation to any Additional Obligor incorporated in Switzerland that is acceding
as a Guarantor, the guarantee to be provided by such Additional Obligor as
Guarantor for the purpose of securing the prompt and complete satisfaction of
all present and future conditional and unconditional claims of the Finance
Parties against any member of the Group other than such Additional Obligor as
Guarantor and its wholly owned subsidiaries arising from time to time out of
the Finance Documents.

 

5.                                 A specimen
of the signature of each person authorised by the resolution referred to in
paragraph 3 above.

 

6.                                 A
certificate of the Additional Obligor (signed by two duly authorised
signatories) confirming that borrowing or guaranteeing (as the case may be) the
Total Commitments would not cause any borrowing, guaranteeing or similar limit
binding on it to be exceeded.

 

7.                                 A
certificate of an authorised signatory of the Additional Obligor certifying
that each copy document listed in this Schedule 2 is correct, complete and in
full force and effect as at a date no earlier than the date of the Accession
Letter.

 

8.                                 A copy of
any other Authorisation or other document, opinion or assurance which the
Facility Agent reasonably considers to be necessary in connection with the
entry into and performance of the transactions contemplated by the Accession
Letter or for the validity and enforceability of any Finance Document.

 

98

 

9.                                 If
available, the latest audited financial statements of the Additional Obligor.

 

10.                           A legal
opinion of Clifford Chance Limited Liability Partnership, legal advisers to the
Mandated Lead Arrangers and the Facility Agent in England.

 

11.                           If the
Additional Obligor is incorporated in a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Mandated Lead Arrangers and
the Facility Agent in the jurisdiction in which the Additional Obligor is
incorporated.

 

12.                           If the
proposed Additional Obligor is incorporated in a jurisdiction other than
England and Wales, evidence that the process agent specified in paragraph (e)
of Clause 38 (Service of process),
if not an Obligor, has accepted its appointment in relation to the proposed Additional
Obligor.

 

99

 

SCHEDULE 3

UTILISATION REQUEST

 

	
  From:

  	
   

  	
  [Name
  of Borrower]

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  [Agent]

  
	
   

  	
   

  	
   

  
	
  Copied
  to:

  	
   

  	
  [Facility
  Agent]*

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  	
  [•]

  

 

Dear
Sirs

 

ABB Ltd - $2,000,000,000 Credit Agreement

dated [•] (the “Credit Agreement”)

 

1.                                 Words and
expressions defined in the Credit Agreement have the same meaning when used
herein.

 

2.                                 We wish to
borrow a [Revolving Advance/Dollar Swingline Advance/Euro Swingline Advance/SEK
Swingline Advance] on the following terms:

 

	
  Proposed Utilisation Date:

  	
   

  	
  [•] (or, if that is not a Business Day, the
  next Business Day)

  
	
   

  	
   

  	
   

  
	
  Currency of Advance:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  
	
  Amount:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  
	
  Interest Period:

  	
   

  	
  [•]

  

 

3.                                 We confirm
that each condition specified in Clause 4.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.

 

4.                                 The
proceeds of this Advance should be credited to [account].

 

5.                                 This
Utilisation Request is irrevocable.

 

	
  Yours
  faithfully

  
	
   

  
	
   

  	
   

  
	
   

  
	
  authorised
  signatory for

  
	
   

  
	
  [Name
  of Borrower]

  

 

100

 

SCHEDULE 4

THE MARGIN

 

	
   

  	
   

  	
  Credit Rating

  	
   

  
	
   

  	
   

  	
  BBB+/Baa1

  or higher

  	
   

  	
  BBB/Baa2

  	
   

  	
  BBB-/Baa3

  	
   

  	
  BB+/Ba1

  	
   

  	
  BB/Ba2 or

  lower

  	
   

  
	
  Margin

  (basis points per annum)

  	
   

  	
  25

  	
   

  	
  30

  	
   

  	
  40

  	
   

  	
  55

  	
   

  	
  70

  	
   

  

 

101

 

SCHEDULE 5

FORM OF TRANSFER CERTIFICATE

 

	
  To:

  	
   

  	
  [•] as Facility Agent

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  [The
  Existing Lender] (the “Existing Lender”)
  and [The New Lender] (the “New Lender”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  

 

ABB Ltd - $2,000,000,000 Credit Agreement

dated [•] (the “Credit Agreement”)

 

1.                                 Words and
expressions defined in the Credit Agreement have the same meaning when used
herein.

 

2.                                 We refer
to Clause 24.5 (Procedure for transfer)
of the Credit Agreement:

 

(a)                                      The
Existing Lender and the New Lender agree to the Existing Lender and the New
Lender transferring by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule in accordance
with Clause 24.5 (Procedure for transfer).

 

(b)                                     The
proposed Transfer Date is [•].

 

(c)                                      The
Facility Office and address, fax number and attention details for notices of
the New Lender for the purposes of Clause 31.2 (Addresses) are set out in the Schedule.

 

3.                                 The New
Lender expressly acknowledges the limitations on the Existing Lender’s
obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility of Existing Lenders).

 

4.                                 The New
Lender confirms on the Transfer Date that it is a PMP.(1)

 

5.                                 This
Transfer Certificate is governed by English law.

 

(1)   Only
to be included if it is a requirement under Dutch law at the time of such
assignment or transfer that the New Lender qualifies as a PMP.

 

 

 

102

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

[insert relevant details]

 

[Facility
Office address, fax number and attention details for notices and account
details for payments,]

 

	
  [Existing
  Lender]

  	
   

  	
  [New
  Lender]

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  

 

This
Transfer Certificate is accepted by the Facility Agent and the Transfer Date is
confirmed as [•].

 

[Facility
Agent]

 

By:

 

103

 

SCHEDULE 6

TIMETABLES

 

	
   

  	
   

  	
  Advances in

  Euro

  	
   

  	
  Advances in

  Dollars

  	
   

  	
  Advances in

  SEK

  	
   

  	
  Advances in

  other

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery
  of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)

  	
   

  	
  10
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  	
   

  	
  11
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  	
   

  	
  11
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  	
   

  	
  11
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility
  Agent determines (in relation to a Utilisation) the Base Currency Amount of
  the Advance, if required under Clause 5.4 (Lenders’
  participation)

  	
   

  	
  11
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  	
   

  	
  N/A

  	
   

  	
  11
  a.m. London time, 3 Business Day prior to the proposed Utilisation Date

  	
   

  	
  11
  a.m. London time, 3 Business Days prior to the proposed Utilisation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility
  Agent notifies the Lenders of the Advance in accordance with Clause 5.4 (Lenders’ participation)

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery
  of a duly completed Utilisation Request (Clause 5.5 (Delivery of a Utilisation Request for a Swingline
  Advance))

  	
   

  	
  9.30
  a.m. London time on the proposed Utilisation Date

  	
   

  	
  11
  a.m. New York time on the proposed Utilisation Date

  	
   

  	
  10.00
  a.m. Stockholm time on the proposed Utilisation Date

  	
   

  	
  N/A

  

 

104

 

	
   

  	
   

  	
  Advances in

  Euro

  	
   

  	
  Advances in

  Dollars

  	
   

  	
  Advances in

  SEK

  	
   

  	
  Advances in

  other

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swingline
  Agent notifies each Swingline Lender of the amount, currency and the Base
  Currency Amount of each Swingline Advance (paragraph (c) of Clause 5.8 (Swingline Lenders’ Participation))

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  Promptly
  upon receipt from the relevant Borrower

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility
  Agent receives a notification from a Lender under Clause 6.2 (Unavailability of a currency)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Quotation
  Day as of 9 a.m. London time

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility
  Agent gives notice in accordance with Clause 6.2 (Unavailability of a currency)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Upon
  receipt of notification from the Lenders

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR
  or EURIBOR or STIBOR is fixed

  	
   

  	
  Quotation
  Day as of 11.00 a.m. Brussels time

  	
   

  	
  Quotation
  Day as of 11.00 a.m. London time

  	
   

  	
  Quotation
  Day as of 11.00 a.m. Stockholm time

  	
   

  	
  Quotation
  Day as of 11. 00 a.m. London time

  

 

105

 

SCHEDULE 7

FORM OF ACCESSION LETTER

 

	
  To:

  	
   

  	
  Credit
  Suisse as Facility Agent

  
	
   

  
	
  From:
  [Subsidiary] and ABB Ltd

  
	
   

  
	
  Dated: [•]

  

 

Dear
Sirs

 

ABB Ltd - $2,000,000,000 Revolving Credit Agreement
dated [•]

(the “Agreement”)

 

1.                                 We refer
to the Agreement. This is an Accession Letter. Terms defined in the Agreement have
the same meaning in this Accession Letter unless given a different meaning in
this Accession Letter.

 

2.                                 [Subsidiary]
agrees to become an [Additional Borrower]/[Additional Guarantor] and to be
bound by the terms of the Agreement as an [Additional Borrower]/[Additional
Guarantor] pursuant to [Clause 25.2 (Additional
Borrowers)]/[Clause 25.4 (Additional
Guarantors)] of the Agreement.

 

3.                                 [Subsidiary]
is a company duly incorporated under the laws of [name of relevant
jurisdiction].

 

4.                                 [Subsidiary]
is a wholly owned Subsidiary of ABB Ltd.

 

5.                                 [Subsidiary’s]
administrative details are as follows:

 

Address:

 

Fax No:

 

Attention:

 

6.                                 This
Accession Letter is governed by English law.

 

[This
Guarantor Accession Letter is entered into by deed].

 

	
  ABB
  Ltd

  	
  [Subsidiary]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

106

 

SCHEDULE 8

FORM OF RESIGNATION LETTER

 

	
  To:

  	
   

  	
  Credit
  Suisse as Facility Agent

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  [resigning
  Obligor] and ABB Ltd

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated: [•]

  

 

Dear
Sirs

 

ABB Ltd - $2,000,000,000 Revolving Credit Agreement
dated [•]

(the “Agreement”)

 

1.                                 We refer
to the Agreement. This is a Resignation Letter. Terms defined in the Agreement
have the same meaning in this Resignation Letter unless given a different
meaning in this Resignation Letter.

 

2.                                 Pursuant
to [Clause 25.3 (Resignation of a Borrower)]/[Clause
25.6 (Resignation of a Guarantor)],
we request that [resigning Obligor] be released from its obligations as a [Borrower]/[Guarantor] under the Agreement.

 

3.                                 We confirm
that:

 

(a)                                      no Default
would result from the acceptance of this request; and

 

(b)                                     [resigning
Obligor] is under no actual or contingent liability under the Agreement.

 

4.                                 This
Resignation Letter is governed by English law.

 

	
  ABB Ltd

  	
  [Subsidiary]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

107

 

SCHEDULE 9

MANDATORY COST

 

The
Mandatory Cost is an addition to the interest rate on an Advance denominated in
Sterling to compensate the Lenders for the cost attributable to such Advance
resulting from the imposition from time to time under or pursuant to the Bank
of England Act 1998 (the “BoE Act”)
of a requirement to place non-interest-bearing or Special Deposits (whether
interest bearing or not) with the Bank of England calculated by reference to
liabilities used to fund the Advance.

 

The
Mandatory Cost shall be the rate determined by the Facility Agent to be equal
to the arithmetic mean (rounded upward, if necessary, to 4 decimal places) of
the respective rates notified by each Reference Bank to the Facility Agent as
the rate resulting from the application (as appropriate) of the following
formulae:

 

XL + S(L - D)

 

100 - (X + S)

 

where
on the day of application of a formula:

 

X                                                         is the percentage of Eligible Liabilities (in
excess of any stated minimum) by reference to which that Reference Bank is
required under or pursuant to the BoE Act to maintain cash ratio deposits with
the Bank of England;

 

L                                                           is LIBOR applicable to the relevant Advance;

 

S                                                           is the level of interest bearing Special
Deposits, expressed as a percentage of Eligible Liabilities, which that
Reference Bank is required to maintain by the Bank of England (or other United
Kingdom governmental authorities or agencies); and

 

D                                                         is the percentage rate per annum payable by
the Bank of England to that Reference Bank on Special Deposits.

 

(X,
L, S and D shall be expressed in the formula as numbers and not as percentages,
e.g. if X = 0.15% and L = 7%, XL will be calculated as 0.15 x 7 and not as
0.15% x 7%. A negative result obtained from subtracting D from L shall be
counted as zero.)

 

If
any Reference Bank fails to notify any such rate to the Facility Agent, the
Mandatory Cost shall be determined on the basis of the rate(s) notified to the
Facility Agent by the remaining Reference Bank(s).

 

The
Mandatory Cost attributable to an Advance or other sum for any period shall be
calculated at or about 11.00 a.m. on the first day of that period for the
duration of that period.

 

The
determination of the Mandatory Cost in relation to any period shall, in the
absence of manifest error, be conclusive and binding on the Parties.

 

108

 

If
there is any change in circumstance (including the imposition of alternative or
additional requirements) which in the reasonable opinion of the Facility Agent
renders or will render the above formula (or any element of the formula, or any
defined term used in the formula) inappropriate or inapplicable, the Facility
Agent (following consultation with ABB and the Majority Lenders) shall be
entitled to vary the same by giving notice to the Parties. Any such variation
shall, in the absence of manifest error, be conclusive and binding on the
Parties and shall apply from the date specified in such notice.

 

For
the purposes of this Schedule, “Eligible
Liabilities” and “Special
Deposits” have the meanings given to those terms under or pursuant
to the BoE Act or by the Bank of England (as may be appropriate), on the day of
the application of the formula.

 

109

 

SCHEDULE 10

MATERIAL SUBSIDIARIES

 

	
  Company Name

  	
   

  	
  Jurisdiction

  	
   

  	
  ABB Interest

  (%)

  	
   

  
	
  ABB Finance
  B.V.

  	
   

  	
  Netherlands

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Capital
  B.V.

  	
   

  	
  Netherlands

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB
  International Finance Limited

  	
   

  	
  Guernsey

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Holdings
  Inc.

  	
   

  	
  United
  States

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB AG

  	
   

  	
  Germany

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB AB

  	
   

  	
  Sweden

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB S.p.A. 

  	
   

  	
  Italy 

  	
    

  	
  100 

  	
    

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Schweiz
  AG

  	
   

  	
  Switzerland

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB (China)
  Ltd

  	
   

  	
  China

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Inc.

  	
   

  	
  United
  States

  	
   

  	
  100

  	
   

  

 

110

 

SCHEDULE 11

FORM OF COVENANT COMPLIANCE CERTIFICATE

 

	
  To:

  	
   

  	
  Credit
  Suisse as Facility Agent

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  ABB Ltd

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  

 

Dear
Sirs

 

ABB Ltd $2,000,000,000 Multicurrency Revolving Credit
Agreement dated [•] (the “Agreement”)

 

We
refer to the Agreement. This is a Covenant Compliance Certificate delivered
with the consolidated accounts of ABB dated [30 June, 31 December] [200 ] (the
“Reference Date”). Terms defined
in the Agreement have the same meaning when used in this Covenant Compliance
Certificate unless given a different meaning.

 

We
confirm that:

 

(a)                            EBITDA: Total Gross Interest

 

In respect of the Relevant Period ending on the
Reference Date:

 

(i)                                         EBITDA was
[•].

 

(ii)                                      Total
Gross Interest was [•].

 

Therefore the ratio of EBITDA to Total Gross
Interest in respect of such period was [•] : [•] and the covenant contained in paragraph (a) of Clause 21.2 (Financial Condition) [has/has not] been
complied with.(2)

 

(b)                           Net Debt : EBITDA

 

(i)                                         Net Debt
was [•].

 

(ii)                                      EBITDA was
[•].

 

Therefore
the ratio of Net Debt : EBITDA in respect of such period was [•]:[•] and the covenant contained in paragraph (b) of Clause 21.2 (Financial Condition) [has/has not] been
complied with.

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Officer
  of ABB Ltd

  	
  Officer
  of ABB Ltd

  
	
  (without
  personal liability)

  	
  (without
  personal liability)

  

 

(2)   Not
required after Trigger Date.

 

111

 

SIGNATURES

 

	
  The Original Borrowers

  
	
   

  
	
  ABB CAPITAL B.V.

  
	
   

  
	
  By:

  	
  BRIAN VAN REIJN

  	
  JOHN KRUM

  
	
   

  
	
   

  
	
  ABB ASEA BROWN BOVERI LTD

  
	
   

  
	
  By:

  	
  URS ARNOLD

  	
  ALEX HALL

  
	
   

  
	
   

  
	
  The Original Guarantors

  
	
   

  
	
  ABB LTD

  
	
   

  
	
  By:

  	
  MICHEL DEMARÉ

  	
  ALFRED STORCK

  
	
   

  
	
   

  
	
  ABB CAPITAL B.V.

  
	
   

  
	
  By:

  	
  BRIAN VAN REIJN

  	
  JOHN KRUM

  
	
   

  
	
   

  
	
  ABB ASEA BROWN BOVERI LTD

  
	
   

  
	
  By:

  	
  URS ARNOLD

  	
  ALEX HALL

  

 

112

 

	
  The Mandated Lead Arrangers

  
	
   

  
	
  BARCLAYS CAPITAL

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  BAYERISCHE HYPO-UND VEREINSBANK AG

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  COMMERZBANK AKTIENGESELLSCHAFT

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  CREDIT SUISSE

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  DEUTSCHE BANK AG

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  DRESDNER KLEINWORT WASSERSTEIN (acting through DRESDNER
  BANK AG,

  
	
  NIEDERLASSUNG LUXEMBURG)

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

113

 

	
  HANDELSBANKEN CAPITAL MARKETS, SVENSKA HANDELSBANKEN AB
  (publ)

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  HSBC BANK PLC

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  NORDEA BANK AB (publ)

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB
  (PUBL)

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

114

 

	
  The Lenders

  
	
   

  
	
  For
  the purpose of the Dutch Banking Act, each Lender expressly confirms the
  representations given by it in Clause 19.14 (Dutch Obligor Regulatory
  Compliance).

  
	
   

  
	
  BARCLAYS BANK PLC

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  BNP PARIBAS

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  CITIBANK, N.A.

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
  COMMERZBANK AKTIENGESELLSCHAFT, GROßKUNDENCENTER REGION
  MITTE

  
	
  (as
  Revolving Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  CREDIT SUISSE

  
	
  (as
  Revolving Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
				

 

115

 

	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH

  
	
  (as
  Dollar Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  DEUTSCHE BANK LUXEMBOURG S.A.

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  DRESDNER BANK AG, NIEDERLASSUNG LUXEMBURG

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  HSBC BANK PLC

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  HVB BANQUE LUXEMBOURG SOCIÉTÉ ANONYME

  
	
  (as
  Revolving Bank and Euro Swingline Bank)

  
	
   

  
	
  and

  
	
   

  
	
  HVB BANQUE LUXEMBOURG SOCIÉTÉ ANONYME (ACTING THROUGH HVB NEW
  YORK BRANCH)

  
	
  (as
  Dollar Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

116

 

	
  NORDEA BANK AB (PUBL)

  
	
  (as
  Revolving Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline
  Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

  
	
  (as
  Revolving Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline
  Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  SVENSKA HANDELSBANKEN AB (PUBL)

  
	
  (as
  Revolving Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline
  Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  ABN AMRO BANK N.V.,
  NIEDERLASSUNG DEUTSCHLAND

  
	
  (as
  Revolving Bank and Euro Swingline Bank)

  
	
   

  
	
  and

  
	
   

  
	
  ABN AMRO BANK N.V.

  
	
  (as
  Dollar Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  BANCO BILBAO VIZCAYA ARGENTARIA S.A.

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

117

 

	
  BANK OF AMERICA, N.A.

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  DNB NOR BANK ASA

  
	
  (as
  Revolving Bank, Dollar Swingline Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  ING LUXEMBOURG S.A.

  
	
  (as
  Revolving Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  KBC BANK NV DUBLIN BRANCH

  
	
  (as
  Revolving Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  KBC BANK NV NEW YORK BRANCH

  
	
  (as
  Dollar Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

118

 

	
  UBS LIMITED

  
	
  (as
  Revolving Bank and Euro Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  UBS LOAN FINANCE LLC

  
	
  (as
  Dollar Swingline Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  BANCA INTESA SPA.

  
	
  (as
  Revolving Bank)

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

119

 

	
  The Facility Agent

  
	
   

  
	
  CREDIT SUISSE

  
	
   

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  The Dollar Swingline Agent

  
	
   

  
	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  The Euro Swingline Agent

  
	
   

  
	
  CREDIT SUISSE

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  
	
   

  
	
   

  
	
  The SEK Swingline Agent

  
	
   

  
	
  SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB
  (PUBL)

  
	
   

  
	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

120Exhibit 4.15

 

[Letterhead of ABB]

 

 

Mr. Ulrich Spiesshofer 

Rebwiesstr. 17A 

8702 Zollikon

 

Dear Mr. Spiesshofer,

 

This is to confirm the terms and conditions of your
employment with ABB Ltd, Zürich (the “Company”). You will start your employment
with the Company on November 1, 2005 as the Head of Corporate Development
of the ABB Group as well as member of the Executive Committee of the ABB Group.

 

1.                                       Base
Salary. Your base salary will be specified for each year by the Nomination
and Compensation Committee of the ABB Group and communicated to you in writing.
The base salary is normally revised every year. For 2005 and 2006 it shall
amount to CHF 650,000 gross p.a. and the next revision date is March 1, 2007.

 

The base salary includes a representation allowance of
CHF 24’000 p.a. The base salary and representation allowances are paid in 12
equal monthly instalments.

 

2.                                       Incentive
Plan. In addition to the base salary, an incentive plan is part of your
remuneration package. The maximum bonus opportunity amounts to 100% of the base
salary mentioned under item 1 above. For the period of service from
November 1, 2005 to December 31, 2006, 50% of the base salary for the
period shall be guaranteed as a minimum bonus.

 

The incentive plan is revised annually and the incentive
plan parameters may be different from one year to another. The applicable
incentive for a given year will be specified by the Nomination and Compensation
Committee and communicated to you in writing.

 

3.                                       Performance
Share Plan. You are eligible to participate in the Performance Share Plan
the Company has for members of the Executive Committee in accordance with the
applicable terms and to the extent to be determined by the Nominations and
Compensation Committee.

 

 

4.                                       Health
Insurance. As regards health insurance, you are entitled to a private
patient insurance (detailed information about this plan is provided separately).
The Company will pay the insurance premiums. Family members are not covered by
this health insurance plan.

 

5.                                       Pension
and Related Benefits. Your retirement pension, disability pension, widow’s
pension, child/orphan pension and related benefits are subject to the Company’s
and its pension funds’ applicable regulations or to such other separate
agreement as you and the Company may have entered into or may in the future
enter into.

 

6.                                       Vacation.
You are entitled to a vacation of 30 working days per year. Non-used vacation
days of the last 5 years are paid out in cash at the end of employment or when
entering retirement. Such payment will be calculated including the base salary
valid at the date of discontinuation and the average incentive for the two
calendar years preceding the year during which termination occurs.

 

7.                                       School
fees – International Schools. If and to the extend your children are
eligible under the Company’s Corporate Program for International Schools, the
fees for their school will be covered by the Company.

 

8.                                       Company
Car. You are entitled to the use of a Company car according to the Company’s
Car Program as from time to time issued and applicable.

 

9.                                       Termination
of Employment. Each party may terminate the present employment relationship
with effect at the end of any calendar month by giving 12 months prior written
notice.

 

Under termination of the employment relationship, the
Company may elect to release you forthwith from fulfilling your employment
obligations. Such release will, however, not affect salary payments payable to
you during the 12-months notice period.

 

In case your employment relationship would be terminated
by the Company and if, after expiry of the 12 month notice period, you would
not have taken up employment with a third party or commenced an independent,
regularly remunerated professional activity, either of which yielding an annual
compensation of at least 70% of your last annual compensation with the Company,
the Company will continue to pay to you, for a period not exceeding 12 months,
a monthly compensation in amounts equal to your total monthly salary during
your employment relationship with the Company.

 

2

 

Remuneration for the 12 months notice period, as well
as for the additional conditional period as described above, will, in addition
to the base salary, include an incentive corresponding to the average incentive
(or pro-rata average incentive if applicable) for the two years preceding the
year during which notice of termination is given.

 

Retirement in accordance with the applicable
regulations or separate agreement (if any) will interrupt any notice period and
constitute termination of your employment relationship with the Company without
further notice; accordingly, any salary, incentive or other benefits claims
relating to the period after the date of such termination, will be fully
substituted by the retirement benefits due pursuant to the said regulations or
agreement.

 

10.                                 Non-Competition.
You have agreed, and by counter-signing the present Letter-Agreement confirm
your agreement, that you shall not, during a period of 1 (one) year after the
term of your employment relationship with the Company, operate on your own
account, work for or otherwise be directly or indirectly engaged in a business
competing with the business activities of the ABB Group. In view of item 8
above, no separate compensation will be due by the Company as consideration for
your observance of this non-competition commitment.

 

11.                                 Employment
Regulations. The general Employment Regulations, the Travel and Expense
Regulations and Car Leasing Regulations, as from time to time issued and
applicable for the Company’s employees are an integral part of your employment
conditions and supplement as to matters not specifically addressed in this
Letter-Agreement.

 

12.                                 Title
and Membership in the Executive Committee; Other Assignments. It is
understood and agreed that the title “Head of Corporate Development” as well as
your membership in the Group Executive Committee are essential parts of your
employment relationship with the Company and may not be changed or terminated
without notice and without monetary or other compensation by the Company’s
Board of Directors. Within such employment relationship, the Board Committee
may, however, assign to you areas of responsibility which differ from those
currently assigned, always provided that such other assignments do not
constitute a substantial alteration in the scope or dignity of your work.

 

13.                                 Place
of Work. For the term of employment the primary place of work will be
located in Switzerland. If the Company decided to move their global headquarters
outside of Switzerland and, thereby, the primary place of work would also move
out of Switzerland, it is at your discretion to prematurely terminate your
employment with the Company. In this event, the Company

 

3

 

would incur the same compensation consequences as
specified for premature termination in item 9 above.

 

14.                                 Supplementary
Documents. In addition you receive the following documents, whose
modification is subject to special rules:

 

•                  Regulations of the ABB Pension Fund

•                  Regulations concerning the ABB
Supplementary Insurance Plan

•                  Regulations of the “Tödi Foundation”

•                  Regulations of the Health Insurance
Aquilana

•                  Regulations on Delayed Sickness
Benefits Insurance

•                  Applicable Law and Jurisdiction.
This Letter-Agreement shall be subject to Swiss law and the parties hereby
submit to the exclusive jurisdiction of the Swiss courts. The venue shall be
Zurich, Switzerland.

 

Please confirm your understanding and acceptance of
the above terms and conditions by signing and returning to us a copy of this
Letter-Agreement.

 

Zurich, 5th September, 2005

 

ABB Ltd

 

 

	
  /s/ Fred Kindle

  	
   

  	
  /s/ Gary Steel

  	
   

  
	
  Fred Kindle

  	
   

  	
  Gary Steel

  	
   

  
	
  Chief Executive
  Officer

  	
   

  	
  Member of the Executive
  Committee

  
	
   

  	
   

  	
  Head of Human
  Resources

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted:

  	
   

  	
  /s/ Ulrich Spiesshofer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  9 September 2005

  	
   

  
					

 

4

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