Document:

Exhibit 4.7

 

CONFORMED
COPY

 

AGREEMENT

 

DATED 15th April, 2004

 

MULTICURRENCY CREDIT FACILITIES

 

FOR

 

ALFA LAVAL TREASURY INTERNATIONAL AB

 

and

 

ALFA LAVAL U.S. TREASURY INC.

 

GUARANTEED BY

 

ALFA LAVAL AB (publ)

 

and

 

THE COMPANIES

listed in Schedule 1 as Guarantors

 

LEAD ARRANGED BY

 

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA
BANKEN AB (publ)

 

 

ALLEN & OVERY

London

newchange

BK:1256760.10

 

 

INDEX

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  
	
  2.

  	
  Facilities

  	
   

  
	
  3.

  	
  Purpose

  	
   

  
	
  4.

  	
  Conditions precedent

  	
   

  
	
  5.

  	
  Utilisation

  	
   

  
	
  6.

  	
  Optional Currencies

  	
   

  
	
  7.

  	
  Repayment

  	
   

  
	
  8.

  	
  Prepayment and cancellation

  	
   

  
	
  9.

  	
  Interest

  	
   

  
	
  10.

  	
  Terms

  	
   

  
	
  11.

  	
  Market disruption

  	
   

  
	
  12.

  	
  Taxes

  	
   

  
	
  13.

  	
  Increased Costs

  	
   

  
	
  14.

  	
  Mitigation

  	
   

  
	
  15.

  	
  Payments

  	
   

  
	
  16.

  	
  Guarantee and indemnity

  	
   

  
	
  17.

  	
  Representations

  	
   

  
	
  18.

  	
  Information covenants

  	
   

  
	
  19.

  	
  Financial covenants

  	
   

  
	
  20.

  	
  General covenants

  	
   

  
	
  21.

  	
  Default

  	
   

  
	
  22.

  	
  The Administrative Parties

  	
   

  
	
  23.

  	
  Evidence and calculations

  	
   

  
	
  24.

  	
  Fees

  	
   

  
	
  25.

  	
  Indemnities and Break Costs

  	
   

  
	
  26.

  	
  Expenses

  	
   

  
	
  27.

  	
  Amendments and waivers

  	
   

  
	
  28.

  	
  Changes to the Parties

  	
   

  
	
  29.

  	
  Disclosure of information

  	
   

  
	
  30.

  	
  Set-off

  	
   

  
	
  31.

  	
  Pro rata sharing

  	
   

  
	
  32.

  	
  Severability

  	
   

  
	
  33.

  	
  Counterparts

  	
   

  
	
  34.

  	
  Notices

  	
   

  
	
  35.

  	
  Language

  	
   

  
	
  36.

  	
  Governing
  law

  	
   

  
	
  37.

  	
  Enforcement

  	
   

  
	
  38.

  	
  Complete agreement

  	
   

  
				

 

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Original
  Parties

  	
   

  
	
  2.

  	
  Conditions
  precedent documents

  	
   

  
	
  3.

  	
  Form
  of Request

  	
   

  
	
  4.

  	
  Calculation
  of the Mandatory Cost

  	
   

  
	
  5.

  	
  Form
  of Transfer Certificate

  	
   

  
	
  6.

  	
  Form
  of Compliance Certificate

  	
   

  
	
  7.

  	
  Form
  of Resignation Request

  	
   

  
	
  8.

  	
  Form
  of Legal Opinion of Allen & Overy

  	
   

  
	
   

  	
   

  	
   

  
	
  Signatories

  	
   

  

 

 

THIS AGREEMENT is dated  15th April, 2004

 

BETWEEN:

 

(1)                                  ALFA
LAVAL AB (publ) (the Parent);

 

(2)                                  ALFA
LAVAL TREASURY INTERNATIONAL AB and ALFA LAVAL
U.S. TREASURY INC. (each a Borrower, together the Borrowers);

 

(3)                                  THE
COMPANIES listed in Schedule 1 (Original
Parties) as guarantors (in this capacity the Guarantors);

 

(4)                                  SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) as mandated lead arranger  (in this capacity the Mandated Lead Arranger);

 

(5)                                  THE
FINANCIAL INSTITUTIONS listed in Schedule 1
(Original Parties) as original lenders (the Original Lenders); and

 

(6)                                  SEB MERCHANT BANKING, SKANDINAVISKA
ENSKILDA BANKEN AB (publ) as facility agent (in this capacity the Facility
Agent).

 

IT IS AGREED as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this
Agreement:

 

Administrative
Party means the Mandated Lead
Arranger or the Facility Agent.

 

Affiliate means a Subsidiary or a Holding Company of a person or any other
Subsidiary of that Holding Company.

 

Availability
Period means the period from and
including the date of this Agreement to the fifth anniversary of the date of
this Agreement.

 

Break Costs means the amount (if any) which a Lender is entitled to receive
under this Agreement as compensation if any part of a Loan or overdue amount is
prepaid.

 

Business Day means a day (other than a Saturday or a Sunday) on which banks are
open for general business in London and Stockholm and:

 

(a)                                  if on that day a payment in or a purchase of a currency (other than
euro) is to be made, the principal financial centre of the country of that
currency; or

 

(b)                                 if on that day a payment in or a purchase of euro is to be made,
which is also a TARGET Day.

 

CIBOR means for a Term of any Loan or overdue amount in Danish Kroner:

 

1

 

(a)                                  the applicable Screen Rate; or

 

(b)                                 if no Screen Rate is available for the relevant currency or Term of
that Loan or overdue amount, the arithmetic mean (rounded upwards to the
nearest 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 Copenhagen
interbank market,

 

at or about 11.00 a.m. (Copenhagen time) on
the applicable Rate Fixing Day for the offering of deposits in Danish Kroner
for a period comparable to the Term of the relevant Loan.

 

Code means the United States Internal Revenue Code of 1986, as amended.

 

Commitment means a Commitment, as so designated, of a Lender under a
particular Facility.

 

Company means Alfa Laval Treasury International AB.

 

Compliance
Certificate means a certificate
substantially in the form of Schedule 6 (Form of Compliance Certificate)
setting out, among other things, calculations of the financial covenants.

 

Danish Kroner or DKK means the lawful currency for the time being of the
Kingdom of Denmark.

 

Default means:

 

(a)                                  an Event of Default; or

 

(b)                                 an event which would be (with the expiry of a grace period, the
giving of notice or the making of any determination under the Finance Documents
or any combination of them) an Event of Default.

 

ERISA means the United States Employee Retirement Income Security Act of
1974, as amended and the regulations promulgated and rulings issued thereunder.

 

ERISA
Affiliate means any Person that for
purposes of Title IV of ERISA is a member of the controlled group of the Obligor,
or under common control with an Obligor, within the meaning of
Section 414(b) or (c) of the Code and, to the extent applicable under
ERISA or the Code, Section 414(m) or (o) of the Code.

 

EURIBOR means for a Term of any Loan or overdue amount in euro:

 

(a)                                  the applicable Screen Rate; or

 

(b)                                 if no Screen Rate is available for that Term of that Loan or overdue
amount, 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 European interbank market,

 

as of 11.00 a.m. (Brussels time) on the
Rate Fixing Day for the offering of deposits in euro for a period comparable to
that Term.

 

2

 

Existing
Facility means the euro 575,000,000
term loan and revolving credit facility dated 29th April, 2002 between, amongst
others, the Parent, the Company and SEB Merchant Banking, Skandinaviska
Enskilda Banken AB (publ) as an arranger (as amended and restated on the
terms of an amendment and restatement agreement dated 11th July,
2002 and as subsequently amended).

 

euro means the single currency of the Participating Member States.

 

Event of
Default means an event specified as
such in this Agreement.

 

Facility means a credit facility made available under this Agreement.

 

Facility
Office means the office(s) notified
by a Lender to the Facility Agent:

 

(a)                                  on or before the date it becomes a Lender; or

 

(b)                                 by not less than five Business Days’ notice,

 

as the office(s) through which it will
perform its obligations under this Agreement.

 

Fee Letter means any letter entered into by reference to this Agreement
between one or more Administrative Parties and the Parent setting out the
amount of certain fees referred to in this Agreement.

 

Final Maturity
Date means the fifth anniversary of
the date of this Agreement.

 

Finance
Document means:

 

(a)                                  this Agreement;

 

(b)                                 a Fee Letter;

 

(c)                                  a Transfer Certificate;

 

(d)                                 the Intercreditor Agreement; or

 

(e)                                  any other document designated as such by the Facility Agent and the
Company.

 

Finance Party means a Lender or an Administrative Party.

 

Financial
Indebtedness means any indebtedness
for or in respect of:

 

(a)                                  moneys borrowed;

 

(b)                                 amounts raised under any acceptance credit facility;

 

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

 

(d)                                 any redeemable preference share;

 

3

 

(e)                                  any finance or capital lease that would be treated in accordance
with GAAP as finance or capital leases;

 

(f)                                    receivables sold or discounted (otherwise than on a non-recourse
basis);

 

(g)                                 the acquisition cost of any asset to the extent payable after its
acquisition or possession by the party liable where the deferred payment is
arranged primarily as a method of raising finance or financing the acquisition
of that asset;

 

(h)                                 any derivative transaction protecting against or benefiting from
fluctuations in any rate or price (and, except for non-payment of an amount (in
which case it shall be the net amount payable), the then mark to market value
of the derivative transaction will be used to calculate its amount);

 

(i)                                     any other transaction (including any forward sale or purchase
agreement) which has the commercial effect of a borrowing;

 

(j)                                     any counter-indemnity obligation in respect of any guarantee,
indemnity, bond, letter of credit or any other instrument issued by a bank or
financial institution; or

 

(k)                                  any guarantee, indemnity or similar assurance against financial loss
of any person in respect of any item referred to in paragraphs (a) to (j)
above.

 

Funding Loan means the euro 220,000,000 intra-group funding loan made between
Alfa Laval Special Finance AB and Alfa Laval Holding AB on the terms of a
funding loan agreement dated 22nd August, 2000.

 

GAAP means generally accepted accounting principles in Sweden from time
to time.

 

Group means the Parent and its Subsidiaries.

 

Holding
Company of any other person, means a
company in respect of which that other person is a Subsidiary.

 

IBOR means LIBOR, EURIBOR, STIBOR or CIBOR.

 

Increased Cost means:

 

(a)                                  an additional or increased cost;

 

(b)                                 a reduction in the rate of return under a Finance Document or on its
overall capital; or

 

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

 

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

 

4

 

Intercreditor
Agreement means the intercreditor
agreement dated on or about the date of this Agreement between, inter alia,
Alfa Laval Special Finance AB, Alfa Laval Holding AB  and the Facility Agent.

 

Lender means:

 

(a)                                  an Original Lender; or

 

(b)                                 any person which becomes a Lender after the date of this Agreement.

 

LIBOR means for a Term of any Loan or overdue amount in any currency
other than euro, Danish Kroner or SEK:

 

(a)                                  the applicable Screen Rate; or

 

(b)                                 if no Screen Rate is available for the relevant currency or Term of
that Loan or overdue amount, 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 London interbank market,

 

as of
11.00 a.m. on the Rate Fixing Day for the offering of deposits in the
currency of that Loan or overdue amount for a period comparable to that Term.

 

Loan means, unless otherwise stated in this Agreement, the principal
amount of each borrowing under this Agreement or the principal amount
outstanding of that borrowing.

 

Majority
Lenders means, at any time, Lenders:

 

(a)                                  whose share in the outstanding Loans and whose undrawn Commitments
then aggregate 662/3 per cent. or more of the aggregate of all the
outstanding Loans and the undrawn Commitments of all the Lenders;

 

(b)                                 if there is no Loan then outstanding, whose undrawn Commitments then
aggregate 662/3 per cent. or more of the Total Commitments; or

 

(c)                                  if there is no Loan then outstanding and the Total Commitments have
been reduced to zero, whose Commitments aggregated 662/3 per cent.
or more of the Total Commitments immediately before the reduction.

 

Mandatory Cost means the cost of complying with certain regulatory requirements,
expressed as a percentage rate per annum and calculated by the Facility Agent
under Schedule 4 (Calculation of the Mandatory Cost).

 

Margin means the percentage rate per annum calculated in accordance with
Clause 9.2 (Adjustment of Margin).

 

Margin
Regulations means Regulations U and X
issued by the Board of Governors of the United Sates Federal Reserve System.

 

Margin Stock has the meaning given to it in the Margin Regulations.

 

5

 

Material
Adverse Effect means a material
adverse effect on:

 

(a)                                  the business or financial condition of the Group taken as a whole on
a consolidated basis; or

 

(b)                                 the ability of any Obligor to perform its payment obligations or any
other of its material obligations under any Finance Document taking into
account the financial resources of the Group as a whole available to that
Obligor.

 

Material
Subsidiary means a Subsidiary of the
Parent:

 

(a)                                  the total gross assets of which (or, if the Parent owns directly or
indirectly less than 100 per cent. of such Subsidiary, a proportion thereof
equal to the proportion of the share capital (or equivalent capital) owned
directly or indirectly by the Parent) represent more than three per cent. of
the total gross assets of the Group according to the latest audited
consolidated balance sheet of the Group; or

 

(b)                                 the net sales (Sw. nettoomsättning) of which (or, when
the Parent’s interest in such Subsidiary is less than 100 per cent., a
proportion thereof as determined in accordance with paragraph (a) above)
represent more than three per cent. of the total net sales of the Group
according to the latest audited consolidated profit and loss account of the
Group.

 

Multiemployer
Plan means a multiemployer plan, as
defined in Section 4001(a)(3) and Section 3(37) of ERISA, to which
the Obligor or any ERISA Affiliate is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.

 

Obligor means a Borrower or a Guarantor.

 

Original
Financial Statements means the
audited consolidated financial statements of the Parent for the year ended 31st
December, 2003.

 

Participating
Member State means a member state of
the European Communities that adopts or has adopted the euro as its lawful
currency under the legislation of the European Union for European Monetary
Union.

 

Party means a party to this Agreement.

 

Plan
means an “employee benefit plan” within the meaning of
section 3(3) of ERISA maintained by an Obligor or any ERISA Affiliate
currently or at any time within the last five years, or to which that Obligor
or any ERISA Affiliate is required to make payments or contributions or has
made payments or contributions within the past five years.

 

Pro Rata Share means:

 

(a)                                  for the purpose of determining a Lender’s share in a utilisation of
a Facility, the proportion which its Commitment under that Facility bears to
all the Commitments under that Facility; and

 

(b)                                 for any other purpose on a particular date:

 

6

 

(i)                                     the proportion which a Lender’s share of the Loans (if any) bears to
all the Loans;

 

(ii)                                  if there is no Loan outstanding on that date, the proportion which
its Commitment bears to the Total Commitments on that date;

 

(iii)                               if the Total Commitments have been cancelled, the proportion which
its Commitments bore to the Total Commitments immediately before being
cancelled; or

 

(iv)                              when the term is used in relation to a Facility, the above
proportions but applied only to the Loans and Commitments for that Facility.

 

For the
purpose of sub-paragraph (iv) above, the Facility Agent will determine, in
the case of a dispute whether the term in any case relates to a particular
Facility.

 

Rate Fixing
Day means:

 

(a)                                  the first day of a Term for a Loan denominated in Sterling;

 

(b)                                 the second Business Day before the first day of a Term for a Loan
denominated in any other currency (other than euro); or

 

(c)                                  the second TARGET Day before the first day of a Term for a Loan
denominated in euro,

 

or such other
day as the Facility Agent determines is generally treated as the rate fixing
day by market practice in the relevant interbank market.

 

Reference
Banks means the Facility Agent,
Nordea Bank AB (publ) and Svenska Handelsbanken AB (publ) and any other bank or
financial institution appointed as such by the Facility Agent under this
Agreement.

 

Repeating
Representations means the
representations which are deemed to be repeated under this Agreement.

 

Reportable
Event means any of the events set forth in
Section 4043 of ERISA unless the 30-day notice requirement with respect to
such event has been waived by the United States Pension Benefit Guaranty
Corporation or any successor.

 

Request means a request for a Loan, substantially in the form of
Schedule 3 (Form of Request).

 

Reservations means the principle that equitable remedies are remedies which may
be granted or refused at the discretion of the court, the limitation on
enforcement as a result of laws relating to bankruptcy, insolvency,
liquidation, reorganisation, court schemes, moratoria, administration and other
laws affecting the right of creditors generally, the time-barring of claims
under the Limitation Acts, steps necessary to perfect a Security Interest where
such steps are not required to be performed under the terms of a Finance
Document until a future date, rules against penalties and similar principles of
law in other jurisdictions relevant in the context of the Finance Documents.

 

7

 

Rollover Loan means one or more Loans:

 

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

 

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

 

(c)                                  in the same currency as the maturing Loan; and

 

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

 

Screen Rate means the relevant offered rate which appears on:

 

(a)                                  for LIBOR, page LIBOR 01 or LIBOR 02 (as appropriate);

 

(b)                                 for EURIBOR, page EURIBOR 01;

 

(c)                                  for STIBOR, page SIOR;

 

(d)                                 for CIBOR, page DKNA 13

 

for the
relevant currency and Term  of the
Reuters screen selected by the Facility Agent. 
If the relevant page is replaced or the service ceases to be available,
the Facility Agent (after consultation with the Company and the Lenders) may
specify another page or service displaying the appropriate rate.

 

Security
Interest means any mortgage, pledge,
lien, charge, assignment, hypothecation or security interest or any other
agreement or arrangement having a similar effect.

 

SEK means the lawful currency of the Kingdom of Sweden.

 

Senior Indebtedness has the meaning given to it in the Senior Notes.

 

Senior Notes means the euro 220,000,000 121/8 per cent.
notes due 2010 issued by Alfa Laval Special Finance AB.

 

Senior Notes Guarantee means the guarantee issued by Alfa Laval Holding AB (formerly Alfa
Laval Credit Finance AB) to the holders of the Senior Notes.

 

Sterling and £ means the lawful currency of the United Kingdom.

 

STIBOR means for a Term of any Loan or overdue amount in SEK:

 

(a)                                  the applicable Screen Rate; or

 

(b)                                 if no Screen Rate is available for the relevant currency or Term of
that Loan or overdue amount, the arithmetic mean (rounded upwards to the
nearest 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,

 

8

 

at or about
11.00 a.m. (Stockholm time) on the applicable Rate Fixing Day for the offering
of deposits in SEK for a period comparable to the Term of the relevant Loan.

 

Subsidiary means a subsidiary within the meaning of chapter 1, section 5
of the Swedish Companies Act 1975:1385.

 

TARGET Day means a day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer payment system 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 related penalty or interest).

 

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

 

Tax Payment means a payment made by an Obligor to a Finance Party in any way
relating to a Tax Deduction or under any indemnity given by that Obligor in
respect of Tax under any Finance Document.

 

Term means each period determined under this Agreement by reference to
which interest on a Loan or an overdue amount is calculated.

 

Total
Commitments means the Commitments of
all the Lenders.

 

Tranche means Tranche A or Tranche B.

 

Tranche A means the five year multicurrency revolving credit facility
specified in Clause 2.1 (Tranche A Facility).

 

Tranche A
Commitments means:

 

(a)                                  for an Original Lender, the amount set opposite its name in
Schedule 1 (Original Parties) under the heading “Tranche A Commitments” and
the amount of any other Tranche A Commitment it acquires; and

 

(b)                                 for any other Lender, the amount of any other Tranche A Commitment
it acquires,

 

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

 

Tranche A Loan
means a Loan under Tranche A and
identified as such in its Request.

 

Tranche B means the five year multicurrency revolving credit facility
specified in Clause 2.2 (Tranche B Facility).

 

Tranche B
Commitment means:

 

(a)                                  for an Original Lender, the amount set opposite its name in
Schedule 1 (Original Parties) under the heading “Tranche B Commitments” and
the amount of any other Tranche B Commitment it acquires; and

 

(b)                                 for any other Lender, the amount of any Tranche B Commitment it
acquires,

 

9

 

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

 

Tranche B Loan
means a Loan under Tranche B and
identified as such in its Request.

 

Transfer
Certificate means a certificate,
substantially in the form of Schedule 5 (Form of Transfer Certificate),
with such amendments as the Facility Agent may approve or reasonably require or
any other form agreed between the Facility Agent and the Company.

 

U.K. means the United Kingdom.

 

U.S. Bankruptcy Law means the United States Bankruptcy Code 1978 or any other United
States Federal or State bankruptcy, insolvency or similar law.

 

U.S. Borrower means a Borrower that is incorporated in or otherwise resident in
the United States for United States income tax purposes.

 

U.S.D, $ or Dollars means the lawful currency of the
United States of America.

 

Utilisation
Date means each date on which a
Facility is utilised.

 

Yen means the lawful currency of Japan.

 

1.2                               Construction

 

(a)                                  The following definitions have the meanings given to them in Clause
19 (Financial covenants):

 

(i)                                     Net Debt; and

 

(ii)                                  EBITDA.

 

(b)                                 In this Agreement, unless the contrary intention appears, a
reference to:

 

(i)                                     an amendment includes a supplement, novation, restatement or
re-enactment and amended will be construed accordingly;

 

assets includes present and future properties, revenues and rights of
every description;

 

an authorisation
includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration or notarisation;

 

disposal means a sale, transfer, grant, lease or other disposal, whether
voluntary or involuntary, and dispose will be construed accordingly;

 

including means including without limitation, and include, included and includes
shall be construed accordingly.

 

indebtedness includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of money;

 

10

 

a person
includes any individual, company, corporation, unincorporated association or
body (including a partnership, trust, joint venture or consortium), government,
state, agency, organisation or other entity whether or not having separate
legal personality;

 

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,
being of a type with which any person to which it applies is accustomed to
comply) of any governmental, inter-governmental or supranational body, agency,
department or regulatory, self-regulatory or other authority or organisation;

 

(ii)                                  a currency is a reference to the lawful currency for the time being
of the relevant country;

 

(iii)                               a Default being outstanding means that it has not been
remedied or waived;

 

(iv)                              a provision of law is a reference to that provision as extended,
applied, amended or re-enacted and includes any subordinate legislation;

 

(v)                                 a Clause, a Subclause or a Schedule is a reference to a clause
or subclause of, or a schedule to, this Agreement;

 

(vi)                              a person includes its successors in title, permitted assigns and
permitted transferees;

 

(vii)                           a Finance Document or another document is a reference to that
Finance Document or other document as amended; and

 

(viii)                        a time of day is a reference to London time.

 

(c)                                  Unless the contrary intention appears, a reference to a month
or months
is a reference to a period starting on one day in a calendar month and ending
on the numerically corresponding day in the next calendar month or the calendar
month in which it is to end, except that:

 

(i)                                     if the numerically corresponding day is not a Business Day, the
period will end on the next Business Day in that month (if there is one) or the
preceding Business Day (if there is not);

 

(ii)                                  if there is no numerically corresponding day in that month, that
period will end on the last Business Day in that month; and

 

(iii)                               notwithstanding sub-paragraph (i) above, a period which commences on
the last Business Day of a month will end on the last Business Day in the next
month or the calendar month in which it is to end, as appropriate.

 

(d)                                 Unless expressly provided to the contrary in a Finance Document, a
person who is not a party to a Finance Document may not enforce any of its
terms under the Contracts (Rights of Third Parties) Act 1999 and
notwithstanding any term of any Finance

 

11

 

Document, the consent of any third party is
not required for any variation (including any release or compromise of any
liability) or termination of that Finance Document.

 

(e)                                  Unless the contrary intention appears:

 

(i)                                     a reference to a Party will not include that Party if it has ceased
to be a Party under this Agreement;

 

(ii)                                  an amount in euro is payable only in the euro unit;

 

(iii)                               a word or expression used in any other Finance Document or in any
notice given in connection with any Finance Document has the same meaning in
that Finance Document or notice as in this Agreement; and

 

(iv)                              any obligation of an Obligor under the Finance Documents which is
not a payment obligation remains in force for so long as any payment obligation
of an Obligor is or may be outstanding under the Finance Documents.

 

(f)                                    The headings in this Agreement do not affect its interpretation.

 

2.                                      FACILITIES

 

2.1                               Tranche A Facility

 

Subject to the
terms of this Agreement, the Lenders make available to the Borrowers a
revolving credit facility in an aggregate amount equal to the Tranche A
Commitments.

 

2.2                               Tranche B Facility

 

Subject to the
terms of this Agreement, the Lenders make available to the Borrowers a
revolving credit facility in an aggregate amount equal to the Tranche B
Commitments.

 

2.3                               Nature of a Finance Party’s rights and obligations

 

Unless
otherwise agreed by all the Finance Parties:

 

(a)                                  the obligations of a Finance Party under the Finance Documents are
several;

 

(b)                                 failure by a Finance Party to perform its obligations does not
affect the obligations of any other Party under the Finance Documents;

 

(c)                                  no Finance Party is responsible for the obligations of any other
Finance Party under the Finance Documents;

 

(d)                                 the rights of a Finance Party under the Finance Documents are
separate and independent rights;

 

(e)                                  a debt arising under the Finance Documents to a Finance Party is a
separate and independent debt; and

 

12

 

(f)                                    a Finance Party may, except as otherwise stated in the Finance
Documents, separately enforce those rights.

 

3.                                      PURPOSE

 

3.1                               Loans

 

Each Loan may
only be used:

 

(a)                                  to refinance the Existing Facility; and

 

(b)                                 after the Existing Facility is refinanced, for the general corporate
purposes of the Group.

 

3.2                               No obligation to monitor

 

No Finance
Party is bound to monitor or verify the utilisation of a Facility.

 

4.                                      CONDITIONS
PRECEDENT

 

4.1                               Conditions precedent documents

 

A Request may
not be given until the Facility Agent has notified the Company and the Lenders
that it has received all of the documents and evidence set out in
Schedule 2 (Conditions precedent documents) in form and substance
reasonably satisfactory to the Facility Agent. 
The Facility Agent must give this notification to the Company and the
Lenders promptly upon being so satisfied.

 

4.2                               Further conditions precedent

 

The
obligations of each Lender to participate in any Loan are subject to the
further conditions precedent that on both the date of the Request and the
Utilisation Date for that Loan:

 

(a)                                  the Repeating Representations are correct in all material respects;
and

 

(b)                                 no Default or, in the case of a Rollover Loan, no Event of Default
is outstanding or would result from the Loan.

 

4.3                               Maximum number

 

Unless the
Facility Agent agrees, a Request may not be given if, as a result of the
proposed drawdown, there would be more than 10 Loans outstanding at any time.

 

5.                                      UTILISATION

 

5.1                               Giving of Requests

 

(a)                                  A Borrower may borrow a Loan by giving to the Facility Agent a duly
completed Request.

 

13

 

(b)                                 Unless the Facility Agent otherwise agrees, the latest time for
receipt by the Facility Agent of a duly completed Request is 11.00 a.m.
three Business Days before the Utilisation Date for the proposed borrowing.

 

(c)                                  Each Request is irrevocable.

 

5.2                               Completion of Requests

 

A Request for
a Loan will not be regarded as having been duly completed unless:

 

(a)                                  it identifies the Borrower;

 

(b)                                 it identifies whether it relates to Tranche A or Tranche B;

 

(c)                                  the Utilisation Date is a Business Day falling within the Availability
Period;

 

(d)                                 the amount of the Loan requested is:

 

(i)                                     a minimum of US$5,000,000 in respect of a Tranche A Loan or euro
5,000,000 in respect of a Tranche B Loan or its equivalent in accordance with
Clause 6 (Optional Currencies) and an integral multiple of 1,000,000 units of
that currency; or

 

(ii)                                  the maximum undrawn amount available under this Agreement for Loans
under the relevant Tranche on the proposed Utilisation Date; or

 

(iii)                               such other amount as the Facility Agent may agree; and

 

(e)                                  the proposed currency, and Term comply with this Agreement.

 

Only one Loan
may be requested in a Request, but more than one Request may be delivered on
the same day.

 

5.3                               Advance of Loan

 

(a)                                  The Facility Agent must promptly notify each Lender of the details
of the requested Loan and the amount of its share in that Loan.

 

(b)                                 The amount of each Lender’s share of the Loan will be its Pro Rata
Share on the proposed Utilisation Date.

 

(c)                                  No Lender is obliged to participate in a Loan if as a result:

 

(i)                                     its share in the Loans under a Facility would exceed its Commitment
for that Facility; or

 

(ii)                                  the Loans would exceed the Total Commitments.

 

(d)                                 If the conditions set out in this Agreement have been met, each
Lender must make its share in the Loan available to the Facility Agent for the
relevant Borrower on the Utilisation Date.

 

14

 

6.                                      OPTIONAL
CURRENCIES

 

6.1                               General

 

In this
Clause:

 

Agent’s Spot
Rate of Exchange means the Facility
Agent’s spot rate of exchange for the purchase of the relevant currency in the
London foreign exchange market with:

 

(a)                                  in relation to Tranche A, Dollars; or

 

(b)                                 in relation to Tranche B, euro,

 

at or about
11.00 a.m. on a particular day.

 

Base Currency Amount of a Loan or part of a Loan means:

 

(a)                                  with respect to a Tranche A Loan denominated in Dollars or a Tranche
B Loan denominated in euro, its amount; or

 

(b)                                 with respect to a Tranche A Loan denominated in an Optional
Currency, its equivalent in Dollars or, a Tranche B Loan denominated in an
Optional Currency, its equivalent in euro, in each case calculated on the basis
of the Agent’s Spot Rate of Exchange one Business Day before the Rate Fixing
Day for that Term.

 

Optional
Currency means any currency other
than:

 

(a)                                  Dollars, in the case of Tranche A or;

 

(b)                                 euro, in the case of Tranche B,

 

in which a
Loan may be denominated in accordance with Clause 6.3 of this Agreement.

 

6.2                               Selection

 

(a)                                  A Borrower must select the currency of a Loan in its Request.

 

(b)                                 The amount of a Loan requested in an Optional Currency must be a
minimum amount of the equivalent of US$5,000,000 in respect of a Tranche A Loan
or euro 5,000,000 in respect of a Tranche B Loan and an integral multiple of
1,000,000 units of that currency.

 

(c)                                  Unless the Facility Agent otherwise agrees

 

(d)                                 Loans may not be denominated at any one time in more than six
currencies.

 

6.3                               Conditions relating to Optional Currencies

 

(a)                                  A Tranche A Loan may be denominated in an Optional Currency for a
Term if:

 

15

 

(i)                                     that Optional Currency is readily available in the amount required
and freely convertible into Dollars in the relevant interbank market on the
Rate Fixing Day and the first day of that Term; and

 

(ii)                                  that Optional Currency is euro, Sterling, Danish Kroner, Yen or SEK
or has been previously approved by the Facility Agent (acting on the
instructions of all the Lenders).

 

(b)                                 A Tranche B Loan may be denominated in an Optional Currency for a
Term if:

 

(i)                                     that Optional Currency is readily available in the amount required
and freely convertible into euro in the relevant interbank market on the Rate
Fixing Day and the first day of that Term; and

 

(ii)                                  that Optional Currency is Dollars, Sterling, Danish Kroner, Yen or
SEK or has been previously approved by the Facility Agent (acting on the
instructions of all the Lenders).

 

(c)                                  If the Facility Agent has received a request from the Company for a
currency to be approved as an Optional Currency, the Facility Agent must,
within five Business Days, confirm to the Company:

 

(i)                                     whether or not it has given its approval; and

 

(ii)                                  if approval has been given, the minimum amount (and, if required,
integral multiples) for any Loan in that currency.

 

6.4                               Revocation of currency

 

(a)                                  Notwithstanding any other term of this Agreement, if before
9.30 a.m. on any Rate Fixing Day the Facility Agent receives notice from a
Lender that:

 

(i)                                     the Optional Currency requested is not readily available to it in
the relevant interbank market in the amount and for the period required; or

 

(ii)                                  participating in a Loan in the proposed Optional Currency might
contravene any law or regulation applicable to it,

 

the Facility
Agent must give notice to the Company to that effect promptly and in any event
before 11.00 a.m. on that day.

 

(b)                                 In this event:

 

(i)                                     that Lender must participate in the Loan in Dollars if the Loan is a
Tranche A Loan or in euro if the Loan is a Tranche B Loan; and

 

(ii)                                  the share of that Lender in the Loan and any other similarly
affected Lender(s) will be treated as a separate Loan denominated in Dollars or
euro (as the case may be) during that Term.

 

16

 

(c)                                  Any part of a Loan treated as a separate Loan under this Subclause
will not be taken into account for the purposes of any limit on the number of
Loans or currencies outstanding at any one time.

 

(d)                                 A Loan will still be treated as a Rollover Loan if it is not
denominated in the same currency as the maturing Loan by reason only of the
operation of this Subclause.

 

6.5                               Optional Currency equivalents

 

The equivalent
in Dollars (in respect of a Tranche A Loan or part of a Tranche A Loan) or euro
(in respect of a Tranche B Loan or part of a Tranche B Loan) in an Optional
Currency for the purposes of calculating:

 

(a)                                  whether any limit under this Agreement has been exceeded;

 

(b)                                 the amount of a Loan;

 

(c)                                  the share of a Lender in a Loan;

 

(d)                                 the amount of any repayment of a Loan; or

 

(e)                                  the undrawn amount of a Lender’s Commitment,

 

is its Base
Currency Amount.

 

6.6                               Notification

 

The Facility
Agent must notify the Lenders and the Company of the relevant Base Currency
Amount (and the applicable Agent’s Spot Rate of Exchange) promptly after they
are ascertained.

 

7.                                      REPAYMENT

 

(a)                                  Each Borrower must repay each Loan made to it in full on the last
day of its Term.

 

(b)                                 Subject to the other terms of this Agreement, any amounts repaid
under paragraph (a) above may be re-borrowed.

 

8.                                      PREPAYMENT
AND CANCELLATION

 

8.1                               Mandatory prepayment - illegality

 

(a)                                  A Lender must notify the Company promptly if it becomes aware that
it is unlawful in any jurisdiction for that Lender to perform any of its
obligations under a Finance Document or to fund or maintain its share in any
Loan.

 

(b)                                 After notification under paragraph (a) above:

 

(i)                                     each Borrower must repay or prepay the share of that Lender in each
Loan made to it on the date specified in paragraph (c) below; and

 

17

 

(ii)                                  the Commitments of that Lender will be immediately cancelled.

 

(c)                                  The date for repayment or prepayment of a Lender’s share in a Loan
will be:

 

(i)                                     two Business Days following receipt by the Company of notice from
the Lender under paragraph (a) above; or

 

(ii)                                  if later, the latest date allowed by the relevant law.

 

8.2                               Mandatory prepayment - change of control

 

(a)                                  The Parent must promptly notify the Facility Agent if at any time it
becomes aware of any person or group of persons (excluding:

 

(i)                                     Tetra Laval B.V. and any of its affiliates;

 

(ii)                                  Industri Kapital 2000 Limited and any subsidiary of Industri Kapital
2000 Limited (including IK 2000 Capital Limited); and

 

(iii)                               any partnership for whom Industri Kapital 2000 Limited or any
subsidiary of Industri Kapital 2000 Limited (including IK 2000 Capital Limited)
acts as a general partner (the Partnerships)),

 

acting in
concert through a single transaction or a series of transactions directly or
indirectly acquires shares in the Parent representing more than 50 per cent. of
the share capital of the Parent or more than 50 per cent. of the voting power
in relation to the shares in the Parent.

 

(b)                                 After the date of the acquisition of the shares in the Parent
referred to in paragraph (a) above, the Parent and all the Lenders shall, in
good faith, enter into negotiations for a period of 30 days concerning the
continuance of the Facility.

 

(c)                                  If at the end of such period, mutual agreement between the Parent
and all the Lenders has not been reached the Facility Agent must by notice to
the Parent:

 

(i)                                     cancel the Total Commitments; and

 

(ii)                                  declare all outstanding Loans, together with accrued interest and
all other amounts accrued under the Finance Documents, to be immediately due
and payable.

 

Any such
notice will take effect in accordance with its terms.

 

(d)                                 In paragraph (a) above acting in concert means acting together
pursuant to an agreement or understanding (whether formal or informal).

 

8.3                               Voluntary prepayment

 

(a)                                  The Company may, by giving not less than 10 Business Days’ prior
notice to the Facility Agent, prepay (or ensure that a Borrower prepays)
any  Loan at any time.

 

18

 

(b)                                 A prepayment of part of a Loan must be in a minimum amount of:

 

(i)                                     US$ 5,000,000 in respect of a Tranche A Loan (or its equivalent in
an Optional Currency) and an integral multiple of 1,000,000 units of that
currency; and

 

(ii)                                  euro 5,000,000 in respect of a Tranche B Loan (or its equivalent in
an Optional Currency) and an integral multiple of 1,000,000 units of that
currency.

 

8.4                               Automatic cancellation

 

(a)                                  The Tranche A
Commitments shall, to the extent not already voluntarily cancelled under Clause
8.5 (Voluntary cancellation), be automatically cancelled in full on the Final
Maturity Date.

 

(b)                                 The Tranche B
Commitments shall, to the extent not already voluntarily cancelled under
Clause 8.5 (Voluntary cancellation), be automatically cancelled in full on
the Final Maturity Date.

 

8.5                               Voluntary cancellation

 

(a)                                  The Company may, by giving not less than 10 Business Days’ prior
notice to the Facility Agent, cancel the unutilised amount of the Total
Commitments in whole or in part.

 

(b)                                 Partial cancellation of the Total Commitments must be in a minimum
of:

 

(i)                                     US$5,000,000 in respect of Tranche A; or

 

(ii)                                  euro 5,000,000 in respect of Tranche B,

 

and
an integral multiple of 1,000,000 units of that currency.

 

(c)                                  Any cancellation in part will be applied against the relevant
Commitment of each Lender pro rata.

 

8.6                               Involuntary  prepayment and
cancellation

 

(a)                                  If an Obligor is, or will be, required to pay to a Lender a Tax
Payment or an Increased Cost, the Company may, while the requirement continues,
give notice to the Facility Agent requesting prepayment and cancellation in
respect of that Lender.

 

(b)                                 After notification under paragraph (a) above:

 

(i)                                     each Borrower must repay or prepay that Lender’s share in each Loan
made to it on the date specified in paragraph (c) below; and

 

(ii)                                  the Commitments of that Lender will be immediately cancelled.

 

19

 

(c)                                  The date for repayment or prepayment of a Lender’s share in a Loan
will be the last day of the current Term for that Loan or, if earlier, the date
specified by the Company in its notification.

 

8.7                               Re-borrowing of Loans

 

Any voluntary
prepayment of a Loan may be re-borrowed on the terms of this Agreement.  Any mandatory or involuntary prepayment of a
Loan may not be re-borrowed.

 

8.8                               Miscellaneous provisions

 

(a)                                  Any notice of prepayment and/or cancellation under this Agreement is
irrevocable and must specify the relevant date(s) and the affected Loans and
Commitments.  The Facility Agent must
notify the Lenders promptly of receipt of any such notice.

 

(b)                                 All prepayments under this Agreement must be made with accrued
interest on the amount prepaid.  No
premium or penalty is payable in respect of any prepayment except for Break
Costs.

 

(c)                                  The Majority Lenders may agree a shorter notice period for a
voluntary prepayment or a voluntary cancellation.

 

(d)                                 No prepayment or cancellation is allowed except in accordance with
the express terms of this Agreement.

 

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

 

9.                                      INTEREST

 

9.1                               Calculation of interest

 

The rate of
interest on each Loan for each Term is the percentage rate per annum equal to
the aggregate of the applicable:

 

(a)                                  Margin;

 

(b)                                 IBOR; and

 

(c)                                  Mandatory Cost.

 

9.2                               Adjustment of Margin

 

(a)                                  In this Clause 9.2:

 

(i)                                     “Margin Reset Date” means any day upon which a Compliance
Certificate is delivered to the Facility Agent in accordance with Clause 18.3
(Compliance Certificate) which shows that there has been a change in the Net
Debt/EBITDA Ratio (as calculated in accordance with Clause 19 (Financial
covenants)), which would have an effect on the level of the Margin as
calculated in accordance with sub-paragraph (c) below; and

 

20

 

(ii)                                  “Margin Period” means the period from (and including) a Margin
Reset Date to (but excluding) the next Margin Reset Date.

 

(b)                                 For the period from (and including) the date of this Agreement
to  (but excluding) the first Margin
Reset Date, the Margin shall be calculated in accordance with the table set out
in paragraph (c) below, by reference to the Compliance Certificate delivered by
the Company pursuant to Clause 4.1 (Conditions precedent documents).

 

(c)                                  On each Margin Reset Date, the Facility Agent shall determine the
Margin which will apply to all Terms commencing during the Margin Period
commencing on or after that Margin Reset Date in accordance with the following
table:

 

 

	
  Net Debt/EBITDA Ratio

  	
   

  	
  Margin

  	
   

  
	
   

  	
   

  	
  (per cent.
  per annum)

  	
   

  
	
  > 2.50:1 < 2.75:1

  	
   

  	
  0.70

  	
   

  
	
  >2.00:1 and < 2.50:1

  	
   

  	
  0.525

  	
   

  
	
  > 1.50:1 and < 2.00:1

  	
   

  	
  0.475

  	
   

  
	
  > 1.00:1 and < 1.50:1

  	
   

  	
  0.45

  	
   

  
	
  < 1.00:1

  	
   

  	
  0.40

  	
   

  

 

9.3                               Payment of interest

 

Except where
it is provided to the contrary in this Agreement, each Borrower must pay
accrued interest on each Loan made to it on the last day of each Term and also,
if the Term is longer than six months, on the dates falling at six-monthly
intervals after the first day of that Term.

 

9.4                               Interest on overdue amounts

 

(a)                                  If an Obligor fails to pay any amount payable by it under the
Finance Documents, it must immediately on demand by the Facility Agent pay
interest on the overdue amount from its due date up to the date of actual
payment, both before, on and after judgment.

 

(b)                                 Interest on an overdue amount is payable at a rate determined by the
Facility Agent to be one per cent. per annum above the rate which would have
been payable if the overdue amount had, during the period of non-payment,
constituted a Loan in the currency of the overdue amount.  For this purpose, the Facility Agent may
(acting reasonably):

 

(i)                                     select successive Terms of any duration of up to three months; and

 

(ii)                                  determine the appropriate Rate Fixing Day for that Term.

 

21

 

(c)                                  Notwithstanding paragraph (b) above, if the overdue amount is a
principal amount of a Loan and becomes due and payable prior to the last day of
its current Term, then:

 

(i)                                     the first Term for that overdue amount will be the unexpired portion
of that Term; and

 

(ii)                                  the rate of interest on the overdue amount for that first Term will
be one per cent. per annum above the rate then payable on that Loan.

 

After the
expiry of the first Term for that overdue amount, the rate on the overdue
amount will be calculated in accordance with paragraph (b) above.

 

(d)                                 Interest (if unpaid) on an overdue amount will be compounded with
that overdue amount at the end of each of its Terms but will remain immediately
due and payable.

 

9.5                               Notification of rates of interest

 

The Facility
Agent must promptly notify each relevant Party of the determination of a rate
of interest under this Agreement.

 

10.                               TERMS

 

10.1                        Selection

 

(a)                                  Each Loan has one Term only.

 

(b)                                 A Borrower must select the Term for a Loan in the relevant Request.

 

(c)                                  Subject to the following provisions of this Clause, each Term for a
Revolving Credit Loan will be one, two, three or six months or any other period
agreed by the Company and the Lenders.

 

10.2                        No overrunning the Final Maturity Date

 

If a Term
would otherwise overrun the Final Maturity Date, it will be shortened so that
it ends on the Final Maturity Date.

 

10.3                        Notification

 

The Facility
Agent must notify the relevant Borrower and the Lenders of the duration of each
Term promptly after ascertaining its duration.

 

11.                               MARKET
DISRUPTION

 

11.1                        Failure of a Reference Bank to supply a rate

 

If IBOR is to
be calculated by reference to the Reference Banks but a Reference Bank does not
supply a rate by 12.00 noon (local time) on a Rate Fixing Day, the applicable
IBOR will, subject as provided below, be calculated on the basis of the rates
of the remaining Reference Banks.

 

22

 

11.2                        Market disruption

 

(a)                                  In this Clause, each of the following events is a market
disruption event:

 

(i)                                     IBOR is to be calculated by reference to the Reference Banks but no,
or only one, Reference Bank supplies a rate by 12.00 noon (local time) on the
Rate Fixing Day; or

 

(ii)                                  the Facility Agent receives by close of business on the Rate Fixing
Day notification from Lenders whose shares in the relevant Loan exceed
30 per cent. of that Loan that the cost to them of obtaining matching
deposits in the relevant interbank market is in excess of IBOR for the relevant
Term.

 

(b)                                 The Facility Agent must promptly notify the Company and the Lenders
of a market disruption event.

 

(c)                                  After notification under paragraph (b) above, the rate of
interest on each Lender’s share in the affected Loan for the relevant Term will
be the aggregate of the applicable:

 

(i)                                     Margin;

 

(ii)                                  rate notified to the Facility Agent by that Lender as soon as
practicable, and in any event before interest is due to be paid in respect of
that Term, to be that which expresses as a percentage rate per annum the cost
to that Lender of funding its share in that Loan from whatever source it may
reasonably select; and

 

(iii)                               Mandatory Cost.

 

11.3                        Alternative basis of interest or funding

 

(a)                                  If a market disruption event occurs and the Facility Agent or the
Company so requires, the Company and the Facility Agent must enter into
negotiations for a period of not more than 30 days with a view to agreeing an
alternative basis for determining the rate of interest and/or funding for the
affected Loan and any future Loan.

 

(b)                                 Any alternative basis agreed will be, with the prior consent of all
the Lenders, binding on all the Parties.

 

12.                               TAXES

 

12.1                        General

 

In this Clause
Tax Credit
means a credit against any Tax or any relief or remission for Tax (or its
repayment).

 

23

 

12.2                        Tax gross-up

 

(a)                                  Each Obligor must make all payments to be made by it under the
Finance Documents without any Tax Deduction, unless a Tax Deduction is required
by law.

 

(b)                                 If an Obligor or a Lender is aware that an Obligor must make a Tax
Deduction (or that there is a change in the rate or the basis of a Tax
Deduction), it must promptly notify the Facility Agent.  The Facility Agent must then promptly notify
the affected Parties.

 

(c)                                  If a Tax Deduction is required by law to be made by an Obligor or
the Facility Agent, the amount of the payment due from the Obligor will,
subject to Clause 12.3 (U.S. Taxes), be increased to a net amount which (after
making the Tax Deduction) leaves an amount equal to the payment which would
have been due if no Tax Deduction had been required.

 

(d)                                 An Obligor which is not a US Borrower is not required to make an
increased payment under paragraph (c) above to a Lender if such Obligor making
the payment is able to demonstrate that the Tax Deduction would not have been
required if the Lender had complied with its obligations under paragraph (g)
below.

 

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

 

(f)                                    Within 30 days of making either a Tax Deduction or a payment
required in connection with a Tax Deduction, the Obligor making that Tax
Deduction must deliver to the Facility Agent for the relevant Finance Party
evidence satisfactory to that Finance Party (acting reasonably) that the Tax
Deduction has been made or (as applicable) the appropriate payment has been
paid to the relevant taxing authority.

 

(g)                                 In circumstances where an Obligor, not being a US Borrower, is
required (or would in the absence of such filing be required) to make a Tax
Deduction (other than in respect of Tax imposed by the United States), that
Obligor and each relevant Finance Party shall (to the extent they are entitled
or required to do so) co-operate in completing any procedural formalities
necessary in order to enable such Obligor to make relevant payments under the
Finance Documents without a Tax Deduction.

 

12.3                        U.S. Taxes

 

(a)                                  No U.S. Borrower shall be required to pay any additional amount
pursuant to Clause 12.2 (Tax gross-up) or Clause 12.4 (Tax Indemnity) in
respect of Tax imposed by the United States with respect to a sum payable by it
to a Lender under the Finance Documents if:

 

(i)                                     on the date such Lender becomes a Party to this Agreement or has
designated a new Facility Office either:

 

(A)                              in the case of a Lender that is not a United States person (as such
term is defined in Section 7701(a)(30) of the Code), such Lender is

 

24

 

not entitled to submit a U.S. Internal
Revenue Service Form W-8BEN (relating to such Lender and claiming a complete
exemption from withholding on interest payable pursuant to this Agreement) (or
successor forms) or a Form W-8ECI (or successor forms) with respect to interest
payable pursuant to this Agreement and such Tax would not have been payable had
such Lender been entitled to provide such form; or

 

(B)                                such Lender is subject to such Tax by reason of any connection
between the jurisdiction imposing such Tax and the Lender or its Facility
Office other than a connection arising solely from this Agreement or any
transaction contemplated hereby; or

 

(ii)                                  such Lender has failed to submit any form, certificate or other
information with respect to such sum payable that it was required to submit
pursuant to sub-clauses 12.3 (b), (c) or (d) below and is entitled to submit
under applicable law.

 

(b)                                 If a Lender is not a United States person (as such term is defined
in Section 7701(a)(30) of the Code) it shall (if and to the extent that it
is entitled to do so under applicable law) submit, as soon as practicable,
after (i) it has become a Party to this Agreement or (ii) designated a new
Facility Office or, (iii) if later, the date as the case may be, after there is
any U.S. Borrower, and before any payment of interest is made under this
Agreement after an event described in (i), (ii) or (iii) of this sub-clause
12.3(b) has occurred, in duplicate to each U.S. Borrower duly completed and
signed copies of either Form W-8BEN (or successor form) of the United States
Internal Revenue Service (relating to such Lender and claiming a complete exemption
from withholding on all amounts (to which such withholding would otherwise
apply) to be received by such Lender pursuant to this Agreement in connection
with any borrowing by such U.S. Borrower as a result of a tax treaty concluded
with the United States) or Form W-8ECI (or successor form) of the United States
Internal Revenue Service (relating to all amounts (to which such withholding
would otherwise apply) to be received by such Lender pursuant to this Agreement
in connection with any borrowing by such U.S. Borrower).  Thereafter and from time to time upon the
reasonable request of a U.S. Borrower, such Lender shall (if and to the extent
that it is entitled to do so under applicable law) submit to such U.S. Borrower
such additional duly completed and signed copies of one or the other such forms
(or such successor forms as shall be adopted from time to time by the relevant
United States taxation authorities), in each case as may be required under then
current United States law or regulations to claim the inapplicability of,
exemption from, United States Federal withholding taxes on payments in respect
of all amounts (to which such withholding would otherwise apply) to be received
by such Lender pursuant to any of the Finance Documents in connection with any
borrowing by such U.S. Borrower.

 

(c)                                  If a Lender is a United States person (as such term is defined in
Section 7701(a)(30) of the Code) (other than a Lender that is a
corporation or otherwise exempt from United States Information reporting and
backup witholding tax) it shall, as soon as practicable after it has become a
Party to this Agreement or designated a new Facility Office or, as the case may
be, after there is any U.S. Borrower, and thereafter upon the reasonable
request of a U.S. Borrower, submit in duplicate to such U.S. Borrower

 

25

 

duly completed and signed copies of United
States Internal Revenue Service from W-9 (or successor form) certifying that it
is such a United States person and shall (if and to the extent that it is
entitled to do so under applicable law) upon the reasonable request of a U.S.
Borrower submit any additional information that may be necessary to avoid
United States Federal withholding taxes on all payments (to which such withholding
would otherwise apply) to be received pursuant to any of the Finance Documents
in connection with any borrowing by such U.S. Borrower.

 

(d)                                 To the extent that any U.S. Borrower becomes aware of the need for
any other such form or information it will notify the relevant Lenders as soon
as reasonably practicable thereafter and such Lender shall (if and to the
extent that it is entitled to do so under applicable law) submit as soon as
practicable in duplicate to each U.S. Borrower duly completed and signed copies
of any such form or information, provided, however, that  nothing contained in this Clause 12.3 shall
require any Lender to disclose any information relating to its affairs which
such Lender (in its sole discretion) considers confidential.

 

12.4                        Tax indemnity

 

(a)                                  Without prejudice to Clauses 12.2 (Tax gross-up) and 12.3 (U.S.
Taxes), the Company must within three Business Days of demand by the Facility
Agent or Lender indemnify a Finance Party against any loss or liability which
that Finance Party (in its absolute discretion) determines will be or has been
suffered (directly or indirectly) by that Finance Party for or on account of
Tax in relation to a payment received or receivable (or any payment deemed to
be received or receivable) under a Finance Document.

 

(b)                                 Paragraph (a) above does not apply to any Tax assessed on a
Finance Party under the laws of the jurisdiction in which:

 

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

 

(ii)                                  that Finance Party’s Facility Office is located in respect of
amounts received or receivable in that jurisdiction,

 

if that Tax is
imposed on or calculated by reference to the net income received or receivable
by that Finance Party.  However, any
payment deemed to be received or receivable, including any amount treated as
income but not actually received by the Finance Party, such as a Tax Deduction,
will not be treated as net income received or receivable for this purpose.

 

(c)                                  Paragraph (a) above also does not apply to the extent that the loss
or liability:

 

(i)                                     is compensated for by an increased payment under Clause 12.2; or

 

(ii)                                  would have been compensated for by an increased payment under Clause
12.2 but was not so compensated solely because one of the exclusions in Clause
12.2 (d) or 12.3 applied.

 

26

 

(d)                                 A Finance Party making, or intending to make, a claim under
paragraph (a) above must promptly notify the Company of the event which
will give, or has given, rise to the claim.

 

12.5                        Tax Credit

 

If an Obligor
makes a Tax Payment and the relevant Finance Party (in its absolute discretion)
determines that:

 

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

 

(b)                                 it has used and retained that Tax Credit,

 

the Finance
Party must pay an amount to the Obligor which that Finance Party determines (in
its absolute discretion) will leave it (after that payment) in the same
after-Tax position as it would have been if the Tax Payment had not been made
by the Obligor.

 

12.6                        Stamp taxes

 

The Company
must pay and within three Business Days of demand by the Facility Agent
indemnify each Finance Party against any stamp duty, registration or other
similar Tax payable in connection with the entry into, performance or
enforcement of any Finance Document, except for any such Tax payable in
connection with the entry into of a Transfer Certificate.

 

12.7                        Value added taxes

 

(a)                                  Any amount (including costs and expenses) payable under a Finance
Document by an Obligor is exclusive of any value added tax or any other similar
Tax which is chargeable in connection with that amount.  If any such Tax is so chargeable, the
Obligor must pay to the Finance Party (in addition to and at the same time as
paying that amount) an amount equal to the amount of that Tax.

 

(b)                                 The obligation of any Obligor under paragraph (a) above will be
reduced to the extent that the Finance Party determines (acting reasonably)
that it is entitled to repayment or a credit in respect of the relevant Tax.

 

13.                               INCREASED
COSTS

 

13.1                        Increased Costs

 

Except as
provided below in this Clause, the Company must pay to a Finance Party the
amount of any Increased Cost incurred by that Finance Party or any of its Affiliates
as a result of:

 

(a)                                  the introduction of, or any change in, or any change in the
interpretation or application of, any law or regulation; or

 

(b)                                 compliance with any law or regulation,

 

made after the
date of this Agreement.

 

27

 

13.2                        Exceptions

 

The Company
need not make any payment for an Increased Cost to the extent that the
Increased Cost is:

 

(a)                                  compensated for under another Clause or would have been but for an
exception to that Clause;

 

(b)                                 a tax on the overall net income of a Finance Party or any of its
Affiliates; or

 

(c)                                  attributable to a Finance Party or its Affiliate wilfully failing to
comply with any law or regulation.

 

13.3                        Claims

 

(a)                                  A Finance Party intending to make a claim for an Increased Cost must
notify the Company promptly of the circumstances giving rise to, and the amount
of, the claim.

 

(b)                                 Each Finance Party shall, as soon as practicable after a demand by
the Facility Agent, provide a certificate confirming the amount of Increased
Costs, provided that nothing in this Clause 13 shall require a Finance Party to
disclose any information relating to the manner in which it or any of its
Affiliates employs its capital or arranges its internal financial affairs.

 

14.                               MITIGATION

 

14.1                        Mitigation

 

(a)                                  Each Finance Party must, in consultation with the Company, take all
reasonable steps to mitigate any circumstances which arise and which result or
would result in:

 

(i)                                     any Tax Payment or Increased Cost being payable to that Finance Party;

 

(ii)                                  that Finance Party being able to exercise any right of prepayment
and/or cancellation under this Agreement by reason of any illegality; or

 

(iii)                               that Finance Party incurring any cost of complying with the minimum
reserve requirements of the European Central Bank,

 

including
transferring its rights and obligations under the Finance Documents to an
Affiliate or changing its Facility Office.

 

(b)                                 The Company must indemnify each Finance Party for all costs and
expenses reasonably incurred by that Finance Party as a result of any step
taken by it under this Subclause.

 

(c)                                  A Finance Party is not obliged to take any step under this Subclause
if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

 

28

 

14.2                        Conduct of business by a Finance Party

 

No term 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 in respect of Tax 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 computation in respect of Tax.

 

15.                               PAYMENTS

 

15.1                        Place

 

Unless a
Finance Document specifies that payments under it are to be made in another
manner, all payments by a Party (other than the Facility Agent) under the
Finance Documents must be made to the Facility Agent to its account at such
office or bank:

 

(a)                                  in the principal financial centre of the country of the relevant
currency; or

 

(b)                                 in the case of euro, in the principal financial centre of a
Participating Member State or London or Stockholm,

 

as it may
notify to that Party for this purpose by not less than five Business Days’
prior notice.

 

15.2                        Funds

 

Payments under
the Finance Documents to the Facility Agent must be made for value on the due
date at such times and in such funds as the Facility Agent may specify to the
Party concerned as being customary at the time for the settlement of
transactions in the relevant currency in the place for payment.

 

15.3                        Distribution

 

(a)                                  Each payment received by the Facility Agent under the Finance
Documents for another Party must, except as provided below, be made available
by the Facility Agent to that Party by payment (as soon as practicable after
receipt) to its account with such office or bank:

 

(i)                                     in the principal financial centre of the country of the relevant
currency; or

 

(ii)                                  in the case of euro, in the principal financial centre of a
Participating Member State, Stockholm or London,

 

as it may
notify to the Facility Agent for this purpose by not less than five Business
Days’ prior notice.

 

29

 

(b)                                 The Facility Agent may apply any amount received by it for an
Obligor in or towards payment (as soon as practicable after receipt) of any
amount due from that Obligor under the Finance Documents or in or towards the
purchase of any amount of any currency to be so applied.

 

(c)                                  Where a sum is paid to the Facility Agent under this Agreement for
another Party, the Facility Agent is not obliged to pay that sum to that Party
until it has established that it has actually received it.  However, the Facility Agent may assume that
the sum has been paid to it, and, in reliance on that assumption, make
available to that Party a corresponding amount.  If it transpires that the sum has not been received by the
Facility Agent, that Party must immediately on demand by the Facility Agent
refund any corresponding amount made available to it together with interest on
that amount from the date of payment to the date of receipt by the Facility
Agent at a rate calculated by the Facility Agent to reflect its cost of funds.

 

15.4                        Currency

 

(a)                                  Unless a Finance Document specifies that payments under it are to be
made in a different manner, the currency of each amount payable under the
Finance Documents is determined under this Clause.

 

(b)                                 Interest is payable in the currency in which the relevant amount in
respect of which it is payable is denominated.

 

(c)                                  A repayment or prepayment of any principal amount is payable in the
currency in which that principal amount is denominated on its due date.

 

(d)                                 Amounts payable in respect of costs and expenses are payable in the
currency in which they are incurred.

 

(e)                                  Each other amount payable under the Finance Documents is payable in
euro.

 

15.5                        No set-off or counterclaim

 

All payments
made by an Obligor under the Finance Documents must be made without set-off or
counterclaim.

 

15.6                        Business Days

 

(a)                                  If a payment under the Finance Documents is due on a day which is
not a Business Day, the due date for that payment will instead be the next
Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not) or whatever day the Facility Agent determines is
market practice.

 

(b)                                 During any extension of the due date for payment of any principal
under this Agreement interest is payable on that principal at the rate payable
on the original due date.

 

30

 

15.7                        Partial payments

 

(a)                                  If any Administrative Party receives a payment insufficient to
discharge all the amounts then due and payable by the Obligors under the
Finance Documents, the Administrative Party must 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 Administrative Parties under the Finance Documents;

 

(ii)                                  secondly, in or towards payment pro rata of any accrued interest or fee due
but unpaid under this Agreement;

 

(iii)                               thirdly, in or towards payment pro rata of any principal amount 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 must, if so directed by all the Lenders, vary the
order set out in sub-paragraphs (a)(ii) to (iv) above.

 

(c)                                  This Subclause will override any appropriation made by an Obligor.

 

15.8                        Timing of payments

 

If a Finance
Document does not provide for when a particular payment is due, that payment
will be due within three Business Days of demand by the relevant Finance Party.

 

16.                               GUARANTEE
AND INDEMNITY

 

16.1                        Guarantee and indemnity

 

Each Guarantor
jointly and severally and irrevocably and unconditionally:

 

(a)                                  guarantees to each Finance Party punctual performance by each
Borrower of all its payment obligations under the Finance Documents;

 

(b)                                 undertakes with each Finance Party that, whenever a Borrower does
not pay any amount when due under any Finance Document, it must immediately on
demand by the Facility Agent pay that amount as if it were the principal
obligor; and

 

(c)                                  indemnifies each Finance Party immediately on demand against any
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 loss
or liability under this indemnity will be equal to the amount the Finance Party
would otherwise have been entitled to recover.

 

31

 

16.2                        Continuing guarantee

 

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

 

16.3                        Reinstatement

 

(a)                                  If any discharge (whether in respect of the obligations of any
Obligor or any security for those obligations or otherwise) or arrangement is
made in whole or in part on the faith of any payment, security or other
disposition which is avoided or must be restored on insolvency, liquidation or
otherwise without limitation, the liability of each Guarantor under this
Clause  will continue as if the discharge or arrangement had not occurred.

 

(b)                                 Each Finance Party may concede or compromise any claim that any
payment, security or other disposition is liable to avoidance or restoration.

 

16.4                        Waiver of defences

 

The
obligations of each Guarantor under this Clause will not be affected by
any act, omission or thing which, but for this provision, would reduce, release
or prejudice any of its obligations under this Clause (whether or not
known to it or any Finance Party).  This
includes:

 

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

 

(b)                                 any release of any person under the terms of any composition or
arrangement;

 

(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 person;

 

(d)                                 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;

 

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

 

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

 

(g)                                 any unenforceability, illegality, invalidity or non-provability of
any obligation of any person under any Finance Document or any other document
or security.

 

16.5                        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 right
or security or claim payment from any person before claiming from that
Guarantor under this Clause.

 

32

 

16.6                        Appropriations

 

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

 

(a)                                  without affecting the liability of any Guarantor under this Clause:

 

(i)                                     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

 

(ii)                                  apply and enforce them in such manner and order as it sees fit
(whether against those amounts or otherwise); and

 

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

 

16.7                        Non-competition

 

Unless:

 

(a)                                  all amounts which may be or become payable by the Obligors under the
Finance Documents have been irrevocably paid in full; or

 

(b)                                 the Facility Agent otherwise directs,

 

no Guarantor
will, after a claim has been made or by virtue of any payment or performance by
it under this Clause:

 

(i)                                     be subrogated to any rights, security or moneys held, received or
receivable by any Finance Party (or any trustee or agent on its behalf);

 

(ii)                                  be entitled to any right of contribution or indemnity in respect of
any payment made or moneys received on account of that Guarantor’s liability
under this Clause;

 

(iii)                               claim, rank, prove or vote as a creditor of any Obligor or its
estate in competition with any Finance Party (or any trustee or agent on its
behalf); or

 

(iv)                              receive, claim or have the benefit of any payment, distribution or
security from or on account of any Obligor, or exercise any right of set-off as
against any Obligor.

 

Each Guarantor
must hold in trust for and immediately pay or transfer to the Facility Agent
for the Finance Parties any payment or distribution or benefit of security
received by it contrary to this Clause or in accordance with any directions
given by the Facility Agent under this Clause.

 

33

 

16.8                        Additional security

 

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

 

17.                               REPRESENTATIONS

 

17.1                        Representations

 

The representations set out in this
Clause are made by each Obligor or (if it so states) the Parent to each
Finance Party.

 

17.2                        Status

 

(a)                                  In the case of Alfa Laval US Treasury Inc., it
is a corporation, duly incorporated, in good standing and validly existing
under the laws of its jurisdiction of incorporation, and in the case of each
other Obligor, it is a limited liability company, duly
incorporated and validly existing under the laws of its jurisdiction of
incorporation.

 

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

 

17.3                        Powers and authority

 

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

 

17.4                        Legal validity

 

Subject to the
Reservations and any general principles of law limiting its obligations and
referred to in any legal opinion required under this Agreement, each Finance
Document to which it is a party is its legally binding, valid and enforceable
obligation (other than a Transfer Certificate which is ineffective solely due
to the Facility Agent).

 

17.5                        Non-conflict

 

The entry into
and performance by it of, and the transactions contemplated by, the Finance
Documents do not conflict with:

 

(a)                                  any law or regulation applicable to it;

 

(b)                                 its or any of its Subsidiaries’ constitutional documents; or

 

(c)                                  any document which is binding upon it or any of its Subsidiaries or
any of its or its Subsidiaries’ assets unless conflict with such document would
not be reasonably likely to have a Material Adverse Effect.

 

34

 

17.6                        No default

 

(a)                                  No Default is outstanding or will result from the execution of, or
the performance of any transaction contemplated by, any Finance Document; and

 

(b)                                 No other event is outstanding which constitutes a default under any
document which is binding on it or any of its Subsidiaries or any of its or its
Subsidiaries’ assets to an extent or in a manner which is reasonably likely to
have a Material Adverse Effect.

 

17.7                        Authorisations

 

(a)                                  All authorisations required by it in connection with the entry into,
delivery, performance, validity and enforceability of, and the transactions
contemplated by, the Finance Documents have been obtained or effected (as
appropriate) and are in full force and effect.

 

	
  (b)

  	
  (i)

  	
  subject to sub-paragraph (b)(ii) below, no
  Finance Party is or will be deemed to be resident, domiciled or carrying on
  business in its jurisdiction of incorporation by reason only of the
  execution, delivery, performance and/or enforcement of any Finance Document.

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  In relation to an Obligor incorporated in
  the State of Delaware, the representation in (b)(i) above is subject to the
  assumption that the execution, delivery, performance and/or enforcement of
  the Finance Documents by a Finance Party is the only contact that such entity
  has with or in the State of Delaware.

  

 

17.8                        Financial statements

 

Its audited
financial statements most recently delivered to the Facility Agent (which, in
the case of the Parent at the date of this Agreement, are the Original
Financial Statements):

 

(a)                                  have been prepared in accordance with accounting principles and
practices generally accepted in its jurisdiction of incorporation, consistently
applied; and

 

(b)                                 fairly represent its financial condition (consolidated, if
applicable) as at the date to which they were drawn up,

 

except, in
each case, as disclosed to the contrary in those financial statements.

 

17.9                        No material adverse change

 

In the case of
the Parent only, there has been no material adverse change in the business or
financial condition of the Group taken as a whole on a consolidated basis since
the date to which the Original Financial Statements were drawn up.

 

17.10                 Litigation

 

No litigation, arbitration or administrative
proceedings are current or, to its knowledge, pending or threatened by or
against it, which are reasonably likely to be adversely determined and, if
adversely determined, are reasonably likely to have a Material Adverse Effect.

 

35

 

17.11                 Pari
passu ranking

 

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

 

17.12                 Taxes
on payments

 

All amounts
payable by it under the Finance Documents may be made without any Tax
Deduction, and no stamp or registration duty or similar Tax or charge is
payable in its jurisdiction of incorporation in respect of any Finance
Document.

 

17.13                 Immunity

 

(a)                                  The execution by it of each Finance Document constitutes, and the
exercise by it of its rights and performance of its obligations under each
Finance Document will constitute, private and commercial acts performed for
private and commercial purposes.

 

(b)                                 It will not be entitled to claim immunity from suit, execution,
attachment or other legal process in any proceedings taken in its jurisdiction
of incorporation in relation to any Finance Document.

 

17.14                 Jurisdiction/governing
law

 

In each case
subject to the Reservations and any general principles of law limiting its
obligations and referred to in any legal opinion under this Agreement:

 

(a)                                  its:

 

(i)                                     irrevocable submission under this Agreement to the jurisdiction of
the courts of England and New York;

 

(ii)                                  agreement that this Agreement is governed by English law; and

 

(iii)                               agreement not to claim any immunity to which it or its assets may be
entitled,

 

are legal,
valid and binding under the laws of its jurisdiction of incorporation except,
with respect to (ii) above, to the extent any term of this Agreement or any
provision of English law applicable to this Agreement violates an important
public policy under the laws of its jurisdiction of incorporation; and

 

(b)                                 any judgment obtained in England or in New York will be recognised
and be enforceable by the courts of its jurisdiction of incorporation.

 

17.15                 ERISA

 

Each Plan of the Obligors and their respective ERISA Affiliates that is
intended to be qualified under section 401(a) of the Code or Title IV of ERISA
complies in all material respects with all applicable requirements of law and
regulation.  No Reportable Event has
occurred with respect to any Plan which might reasonably be expected to have a
Material

 

36

 

Adverse Effect, and no steps have been taken to terminate any Plan
which is subject to Title IV of ERISA other than a termination pursuant to
Section 4041(b) of ERISA.  No
Obligor or any Subsidiary or ERISA Affiliate of an Obligor has had a complete
or partial withdrawal from any Multiemployer Plan or initiated any steps to do
so except as would not reasonably be expected to have a Material Adverse
Effect.

 

17.16                 Investment
Company Act

 

No Obligor is an “investment company” or a company “controlled” by an
“investment company”, within the meaning of the United States Investment
Company Act of 1940, as amended.

 

17.17                 Other
regulation

 

No Obligor is subject to regulation under any United States Federal or
State law or regulation that limits its ability to incur or guarantee
indebtedness.

 

17.18                 Margin
Stock

 

(a)                                  The proceeds of the Loans have been and will be used only for the
purposes described in Clause 3 (Purpose).

 

(b)                                 No Obligor is engaged in the business of extending credit for the
purpose, directly or indirectly, of purchasing or carrying Margin Stock.

 

(c)                                  No portion of any borrowings hereunder, or the use of the proceeds
thereof, has been or will be used, directly or indirectly, to purchase or carry
any margin stock (including any Margin Stock or for any other purpose in
violation of the Margin Regulations).

 

17.19                 United
States laws

 

(a)                                  In this Subclause:

 

Anti-Terrorism Law means each of:

 

(i)                                     Executive Order No. 13224 of September 23, 2001 - Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten To
Commit, or Support Terrorism (the Executive Order);

 

(ii)                                  the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56
(commonly known as the USA Patriot Act);

 

(iii)                               the Money Laundering Control Act of 1986, Public Law 99-570; and

 

(iv)                              any similar law enacted in the United States of America subsequent
to the date of this Agreement.

 

holding company has the meaning given to it in the United States Public Utility
Holding Company Act of 1935.

 

37

 

investment company has the meaning given to it in the United States Investment Company
Act of 1940.

 

public utility has the meaning given to it in the United States Federal Power Act
of 1920.

 

Restricted Party means any person listed:

 

(i)                                     in the Annex to the Executive Order;

 

(ii)                                  on the “Specially Designated Nationals and Blocked Persons” list
maintained by the Office of Foreign Assets Control of the United States
Department of the Treasury; or

 

(iii)                               in any successor list to either of the foregoing.

 

(b)                                 It is not:

 

(i)                                     a holding company or subject to regulation under the United States
Public Utility Holding Company Act of 1935;

 

(ii)                                  a public utility or subject to regulation under the United States
Federal Power Act of 1920; or

 

(iii)                               required to be registered as an investment company or subject to
regulation under the United States Investment Company Act of 1940.

 

(c)                                  To the best of its knowledge, neither it nor any of its Affiliates:

 

(i)                                     is, or is controlled by, a Restricted Party;

 

(ii)                                  has received funds or other property from a Restricted Party; or

 

(iii)                               is in breach of or is the subject of any action or investigation
under any Anti-Terrorism Law.

 

17.20                 Senior
Indebtedness

 

All monetary
obligations under the Finance Documents constitute Senior Indebtedness under
the Senior Notes.

 

17.21                 Times
for making representations

 

(a)                                  The representations set out in this Clause are made by each
Obligor on the date of this Agreement.

 

(b)                                 Unless a representation is expressed to be given at a specific date,
each representation (other than the representation in Clause 17.12 (Taxes on
payments)) is deemed to be repeated by each Obligor on the date of each Request
and on the date of each drawing.

 

38

 

(c)                                  When a representation is repeated, it is applied to the
circumstances existing at the time of repetition.

 

18.                               INFORMATION
COVENANTS

 

18.1                        Financial statements

 

(a)                                  The Parent must supply to the Facility Agent in sufficient copies
for all the Lenders:

 

(i)                                     its audited consolidated financial statements for each of its
financial years;

 

(ii)                                  the audited unconsolidated financial statements of each Obligor for
each of its financial years; and

 

(iii)                               the quarterly reports of each Borrower and the Parent, consolidated
and unconsolidated for the Parent, unconsolidated for each Borrower and
consolidated if produced.

 

(b)                                 All financial statements must be supplied as soon as they are
available and:

 

(i)                                     in the case of the Parent’s audited consolidated financial
statements, within 120 days;

 

(ii)                                  in the case of each Obligor’s audited unconsolidated financial
statements, within 120 days; and

 

(iii)                               in the case of each Obligor’s quarterly reports, within
60 days,

 

of the end of
the relevant financial period.

 

18.2                        Form of financial statements

 

(a)                                  The Parent must ensure that each set of financial statements
supplied under this Agreement gives (if audited) a true and fair view of, or (if
unaudited) fairly represents, the financial condition (consolidated or
otherwise) of the relevant person as at the date to which those financial
statements were drawn up.

 

(b)                                 The Parent must notify the Facility Agent of any change to the basis
on which its audited consolidated financial statements are prepared.

 

(c)                                  If requested by the Facility Agent, the Parent must supply to the
Facility Agent:

 

(i)                                     a full description of any change notified under paragraph (b)
above; and

 

(ii)                                  sufficient information to enable the Finance Parties to make a
proper comparison between the financial position shown by the set of financial
statements prepared on the changed basis and its most recent audited
consolidated financial statements delivered to the Facility Agent under this
Agreement.

 

39

 

(d)                                 If requested by the Facility Agent, the Parent must enter into
discussions for a period of not more than 30 days with a view to agreeing
any amendments required to be made to this Agreement to place the Parent and
the Lenders in the same position as they would have been in if the change had
not happened.  Any agreement between the
Parent and the Facility Agent will be, with the prior consent of the Majority
Lenders, binding on all the Parties.

 

(e)                                  If no agreement is reached under paragraph (d) above on the
required amendments to this Agreement, the Parent must supply with each set of
its financial statements another set of its financial statements prepared on
the same basis as the Original Financial Statements.

 

18.3                        Compliance Certificate

 

(a)                                  The Parent must supply to the Facility Agent a Compliance
Certificate with each set of its financial statements sent to the Facility
Agent under this Agreement.

 

(b)                                 A Compliance Certificate must be signed by two authorised
signatories of the Parent and, in the case of a Compliance Certificate supplied
with its annual audited consolidated financial statements, its auditors.

 

18.4                        Information - miscellaneous

 

The Parent
must supply to the Facility Agent, in sufficient copies for all the Lenders if
the Facility Agent so requests:

 

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

 

(b)                                 promptly upon becoming aware of them, details of any litigation,
arbitration or administrative proceedings which are current, threatened or
pending and which might, if adversely determined, reasonably be expected to
have a Material Adverse Effect; and

 

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

 

18.5                        Notification of Default

 

(a)                                  Unless the Facility Agent has already been so notified by another
Obligor, each Obligor must notify the Facility Agent of any Default (and the
steps, if any, being taken to remedy it) promptly upon becoming aware of its
occurrence (unless the relevant Obligor is aware that a notification has
already been provided by another Obligor).

 

(b)                                 Promptly on request by the Facility Agent (if in the opinion of the
Facility Agent it has reasonable grounds for making such a request), the Parent
must supply to the Facility Agent a certificate, signed by two of its
authorised signatories on its behalf,

 

40

 

certifying that no Default is outstanding or,
if a Default is outstanding, specifying the Default and the steps, if any,
being taken to remedy it.

 

18.6                        Year end

 

The Parent
must not change its financial year end without the prior approval of the
Majority Lenders (such approval not to be unreasonably withheld).

 

18.7                        Use of websites

 

(a)                                  Except as provided below, the Parent may deliver any information
under this Agreement to a Lender by posting it on to an electronic website if:

 

(i)                                     the Facility Agent and the Lender agree;

 

(ii)                                  the Parent and the Facility Agent designate an electronic website
for this purpose;

 

(iii)                               the Parent notifies the Facility Agent of the address of and
password for the website; and

 

(iv)                              the information posted is in a format agreed between the Parent and
the Facility Agent.

 

The Facility
Agent must supply each relevant Lender with the address of and password for the
website.

 

(b)                                 Notwithstanding the above, the Parent must supply to the Facility
Agent in paper form a copy of any information posted on the website together
with sufficient copies for:

 

(i)                                     any Lender not agreeing to receive information via the website; and

 

(ii)                                  within ten Business Days of request any other Lender, if that Lender
so requests.

 

(c)                                  The Parent must promptly upon becoming aware of its occurrence,
notify the Facility Agent if:

 

(i)                                     the website cannot be accessed;

 

(ii)                                  the website or any information on the website is infected by any
electronic virus or similar software;

 

(iii)                               the password for the website is changed; or

 

(iv)                              any information to be supplied under this Agreement is posted on the
website or amended after being posted.

 

If the circumstances
in paragraphs (i) or (ii) above occur, the Parent must supply any information
required under this Agreement in paper form.

 

41

 

18.8                        Legal Requirements

 

Nothing in
this Clause 18 obliges the Parent or any Obligor to provide any information to
the Facility Agent or any Lender if the Parent is prevented from doing so by
law or by any rule or regulation of the Stockholm Stock Exchange or if, by
providing such information to the Facility Agent or the Lenders, the Parent
would be required by law or by any rule or regulation of the Stockholm Stock
Exchange to provide the same information to its shareholders at the same time,
which the Parent was not proposing to do.

 

18.9                        ERISA notice requirements

 

Each Obligor
will give the Facility Agent prompt notice of the occurrence of any of the
following events:

 

(a)                                  any Reportable Event;

 

(b)                                 termination of any Plan subject to Title IV of ERISA maintained or
contributed by the Obligor or any ERISA Affiliate or any action that could
reasonably be expected to result in termination of any such Plan subject to
Title IV of ERISA other than a termination under Section 4041(b) of ERISA;

 

(c)                                  complete or partial withdrawal from any Multiemployer Plan by the
Obligor or any ERISA Affiliate or any action that is reasonably expected to
result in complete or partial withdrawal in either case where it is or is
expected to result in a material liability to the Obligor or any ERISA
Affiliate; or

 

(d)                                 a claim or other written communication alleging material
non-compliance with any law or regulation relating to any Plan.

 

In each notice
delivered under this Clause, the Obligor will include reasonable details
concerning the occurrence that is the subject of the notice as well as the Obligor’s
proposed course of action, if any. 
Delivery of a notice under this Clause will not effect the Obligor’s
obligations to comply with any other provision of this Agreement.

 

18.10                 Know
your customer requirements

 

(a)                                  Each Obligor must promptly on the request of any Finance Party
supply to that Finance Party any documentation or other evidence which is
reasonably requested by that Finance Party (whether for itself, on behalf of
any Finance Party or any prospective new Lender) to enable a Finance Party or
prospective new Lender to carry out and be satisfied with the results of all
know your customer requirements.

 

(b)                                 Each Lender must promptly on the request of the Facility Agent
supply to the Facility Agent any documentation or other evidence which is
reasonably required by the Facility Agent to carry out and be satisfied with
the results of all know your customer requirements.

 

19.                               FINANCIAL
COVENANTS

 

(a)                                  In this Clause 19:

 

42

 

Balance Sheet means, at any time, the balance sheet forming part of the latest
consolidated accounts of the Group (whether audited or unaudited) delivered (or
required to be delivered) to the Facility Agent under Clause 18.1
(Financial statements) at that time.

 

Cash or cash equivalents means, at any time:

 

(i)                                     cash in hand or on deposit with a bank or post office, which, in
either case, is remittable to Sweden;

 

(ii)                                  certificates of deposit, maturing within one year after the relevant
date of calculation, issued by a bank;

 

(iii)                               any investment in marketable debt instruments issued or guaranteed
by a member state of the European Union, Norway or the United States of
America;

 

(iv)                              open market commercial paper:

 

(A)                              for which a recognised trading market exists;

 

(B)                                which is issued under a Swedish programme with a K1 rating from
Standard & Poor’s, a division of McGraw-Hill Companies, Inc or a programme
of any member state of the European Union, Norway or the United States of
America with an equivalent rating; and

 

(C)                                which matures within one year after the relevant date of
calculation; and

 

(v)                                 any other instrument, security or investment approved by the
Majority Lenders,

 

in each case,
to which any member of the Group is beneficially entitled at that time.

 

EBITDA means operating income before interest, taxes, depreciation and
amortisation.

 

EBITDA/Total Interest Expense
Ratio means EBITDA as a ratio to
Total Interest Expenses  calculated for each Test Period.

 

Equity has the meaning given to “total equity” in the latest Balance Sheet.

 

Net Debt/EBITDA Ratio means Total Interest Bearing Liabilities less Cash or cash
equivalents on the last day of a Test Period as a ratio to EBITDA for that Test
Period.

 

Net Debt/Equity Ratio means the ratio of Total Interest Bearing Liabilities less Cash or
cash equivalents to Equity plus minority interest.

 

Test Period means the preceding period of 12 months ending on 31st March, 30th
June, 30th September and 31st December, as appropriate in each year.

 

Total Interest Bearing
Liabilities means at any time the
consolidated amount of the interest bearing liabilities of the Group as
determined in accordance with GAAP (including pension liabilities (Sw. avsatt
till pensioner) and financial leases.

 

43

 

Total  Interest Expenses means, in respect of each Test Period, all
interest, acceptance commission, guarantee fees and any other costs and
expenses in the nature of interest (whether paid, payable or capitalised)
incurred by the Group in effecting, servicing or maintaining Financial
Indebtedness (including commitment fees, agency fees, repayment and prepayment
premiums incurred in repaying or prepaying financial indebtedness and interest
elements of financial leases.

 

(b)                                 (i)                                     Each calculation to be made for the purposes of this Clause 19
shall be made on the basis that figures shall be expressed in SEK and, where
any currency has to be converted into SEK for this purpose, such conversion
shall be made at the rate of exchange applied in the relevant Balance Sheet.

 

(ii)                                  Except as provided to the contrary in this Agreement, an accounting
term used in this Clause is to be construed in accordance with the principles
applied in connection with the Original Financial Statements.

 

(c)                                  The Parent shall procure that the:

 

(i)                                     Net Debt/EBITDA Ratio at the end of any Test Period does not exceed
2.75:1;

 

(ii)                                  EBITDA/Total Interest Expense Ratio at the end of each Test Period,
exceeds 3.0:1; and

 

(iii)                               Net Debt/Equity Ratio does not exceed 1.70:1.

 

(d)                                 Compliance with the financial undertakings in this Clause 19 shall
be calculated with reference to the consolidated financial statements of the
Group and supported by compliance certificates (including calculations)
delivered in accordance with Clause 18.3 (Compliance Certificate).

 

20.                               GENERAL
COVENANTS

 

20.1                        General

 

Each Obligor
agrees to be bound by the covenants set out in this Clause relating to it and,
where the covenant is expressed to apply to each member of the Group, each
Obligor must ensure that each of its Subsidiaries performs that covenant.

 

20.2                        Authorisations

 

Each Obligor
must promptly obtain, maintain and comply with the terms of any authorisation
required under any law or regulation to enable it, subject to the Reservations,
to perform its obligations under, or for the validity or enforceability of, any
Finance Document.

 

20.3                        Compliance with laws

 

Each member of
the Group must comply in all respects with all laws to which it is subject
where failure to do so is reasonably likely to have a Material Adverse Effect.

 

44

 

20.4                        Pari passu ranking

 

Each Obligor
must ensure that its payment obligations under the Finance Documents rank at
least pari passu with all its other present and future unsecured payment
obligations, except for obligations mandatorily preferred by law applying to
companies generally.

 

20.5                        Negative pledge

 

(a)                                  Except as provided below, no member of the Group may create or allow
to exist any Security Interest on any of its assets.

 

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

 

(i)                                     liens securing obligations no more than 30 days overdue, arising by
operation of law and in the ordinary course of trading;

 

(ii)                                  Security Interests over credit balances on bank accounts granted
solely for the purpose of the operation of clearing bank accounts on a gross
and net balance basis;

 

(iii)                               Security Interests over goods and documents of title to goods
arising in the ordinary course of letter of credit transactions entered into in
the ordinary course of trade;

 

(iv)                              Security Interests existing over assets (including the assets of
Subsidiaries) acquired after the date of this Agreement provided that such
Security Interests are not created in contemplation of such acquisition and are
discharged within three months of such acquisition taking place;

 

(v)                                 Security Interests arising out of title retention provisions in a
supplier’s standard conditions of supply of goods where the goods in question
are supplied on credit and are acquired by the relevant member of the Group in
the ordinary course of trading; or

 

(vi)                              any other Security Interests provided the aggregate amount of
Financial Indebtedness secured does not exceed euro 50,000,000 or its
equivalent at any time outstanding.

 

20.6                        Disposals

 

(a)                                  Except as provided below, no member of the Group may, either in a
single transaction or in a series of transactions and whether related or not,
dispose of all or any part of its 
assets.

 

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

 

(i)                                     any disposal approved by the Company and the Lenders;

 

(ii)                                  disposals of assets in the ordinary course of business;

 

45

 

(iii)                               the exchange of assets for other assets of same or superior type,
quality and value;

 

(iv)                              disposals of assets between members of the Group other than
disposals involving Alfa Laval Special Finance AB;

 

(v)                                 any disposals of assets which are obsolete or which are no longer
required for the purpose of the relevant member of the Group’s business or
operations;

 

(vi)                              dividends paid in the normal course in accordance with the
provisions of all applicable laws and regulations;

 

(vii)                           Approved Disposals;

 

(viii)                        the temporary application of funds not immediately required in the
relevant person’s business in the purchase or making of investments on arm’s
length terms, or the realisation of those investments;

 

(ix)                                the payment of cash as consideration for the acquisition of any
asset on arm’s length terms;

 

(x)                                   the application of moneys borrowed for the purposes for which the
moneys were borrowed, provided that any dealings with any other party which are
entered into in carrying out such purpose are entered into on arm’s length
terms; and

 

(xi)                                any disposal of assets on arm’s length terms where either:

 

(A)                              the book value of the assets disposed of, when aggregated with all
other disposals of assets by any member of the Group (other than those listed
in sub-paragraphs (i) to (x) above) during the life of this Agreement, does not
exceed 10 per cent. of Total Assets; or

 

(B)                                the EBITDA generated by the assets disposed of, when aggregated with
the EBITDA generated by all other assets disposed of by any member of the Group
(other than those listed in sub-paragraphs (i) to (x) above) during the life of
this Agreement, does not exceed 10 per cent. of Total EBITDA.

 

(c)                                  For the purposes of this Clause (b) above:

 

Approved
Disposal means the disposal of:

 

(A)                                                                              property located in Madrid, Spain;

 

(B)                                property located in Kenosha,Winconsin, United States of America;

 

(C)                                property located in Cwmbran, Wales, U.K.;

 

(D)                               property located in Morumbi, São Paulo, Brazil;

 

46

 

(E)                                 any company or assets located in Tri-Lad, Brentford, Ontario,
Canada; and

 

(F)                                 property located in Brussels, Belgium,

 

where all disposals referred to in (A) to (E) above having an aggregate
market value not exceeding euro 55,000,000 (or its equivalent).

 

Total
Assets means the value of the Group’s gross assets, as
shown in the financial statements upon which the latest audited financial
statements of the Group have been based.

 

Total
EBITDA means the EBITDA of the Group, as determined in
accordance with the financial statements upon which the latest audited
financial statements of the Group have been based.

 

20.7                        Financial Indebtedness

 

(a)                                  Except as provided below, no member of the Group (other than the
Company, Alfa Laval Special Finance AB, the Parent, Alfa Laval Holding AB and
Alfa Laval U.S. Treasury Inc. (each an Excepted Company)) may incur any Financial
Indebtedness.

 

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

 

(i)                                     any Financial Indebtedness of any person acquired by a member of the
Group which is incurred under arrangements in existence at the date of
acquisition, but only for a period of six months from the date of acquisition;

 

(ii)                                  any derivative transaction protecting against or benefiting from the
fluctuations in any rate or price entered into in the ordinary course of
business;

 

(iii)                               Financial Indebtedness owing by a member of the Group (other than
Alfa Laval Special Finance AB) to another member of the Group;

 

(iv)                              any Financial Indebtedness under any Finance Document;

 

(v)                                 any Financial Indebtedness incurred in relation to finance lease,
hire purchase and conditional sale arrangements entered into by any member of
the Group (in an aggregate amount of both principal and capitalised interest,
or interest that is not paid on its due date) not to exceed euro 20,000,000 or
its equivalent at any time;

 

(vi)                              counter-indemnities issued by any member of the Group (other than an
Excepted Company) in the ordinary course of business in favour of banks and
financial institutions relating to performance and like bonds, indemnities,
guarantees and assurances covering the future performance of any member of the
Group other than Alfa Laval Special Finance AB in an aggregate amount not to
exceed euro 70,000,000 or its equivalent at any time;

 

(vii)                           the sale or discounting of receivables on recourse terms by members
of the Group incorporated in Italy, Spain, Sweden or Japan, provided that the

 

47

 

aggregate market value of all such
receivables at any time so sold or discounted (and remaining unpaid) does not
exceed euro 40,000,000; or

 

(viii)                        the incurrence of other Financial Indebtedness incurred by any
member of the Group in an aggregate amount which, when aggregated with other
Financial Indebtedness incurred by all members of the Group in accordance with
this paragraph (viii) and then outstanding, does not exceed the higher of euro
60,000,000 or its equivalent or 5 per cent. of Total Interest Bearing
Liabilities of the Group or its equivalent at any time.

 

20.8                        Change of business

 

The Parent
must ensure that no material change is made to the general nature of the
business the Group from that carried on at the date of this Agreement.

 

20.9                        Mergers

 

No Obligor may enter into any amalgamation, demerger, merger or
reconstruction otherwise than:

 

(i)                                     under an intra-Group re-organisation on a solvent basis; or

 

(ii)                                  such other transaction as agreed by the Majority Lenders.

 

20.10                 Environmental
matters

 

(a)                                  In this Subclause:

 

Environmental
Approval means any authorisation
required by an Environmental Law.

 

Environmental
Claim means any claim by any person
in connection with:

 

(i)                                     a breach, or alleged breach, of an Environmental Law;

 

(ii)                                  any accident, fire, explosion or other event of any type involving
an emission or substance which is capable of causing harm to any living
organism or the environment; or

 

(iii)                               any other environmental contamination.

 

Environmental
Law means any law or regulation
concerning:

 

(i)                                     the protection of health and safety;

 

(ii)                                  the environment; or

 

(iii)                               any emission or substance which is capable of causing harm to any
living organism or the environment.

 

48

 

(b)                                 The Parent will procure that each member of the Group is, and has
been, in compliance with all Environmental Law and Environmental Approvals
applicable to it, where failure to do so is reasonably likely to have a
Material Adverse Effect.

 

(c)                                  Each Obligor must promptly upon becoming aware notify the Facility
Agent of:

 

(i)                                     any Environmental Claim current, or to its knowledge, pending or
threatened; or

 

(ii)                                  any circumstances reasonably likely to result in an Environmental
Claim,

 

which, if
substantiated, is reasonably likely to either have a Material Adverse Effect or
result in any material liability for a Finance Party.

 

20.11                 Insurance

 

The Parent
will procure that each member of the Group insures both its business and assets
with insurance companies to such an extent and against such risks as companies
engaged in a similar business normally insure.

 

20.12                 ERISA

 

No Obligor
will take any action or omit to take any action or permit any Subsidiary or
ERISA Affiliate to take any action or omit to take any action with respect to
any Plan that could reasonably be expected to result in the imposition of a
lien or other Security Interest of euro 5,000,000 or more on any property
of the Obligor or any Subsidiary or otherwise have a Material Adverse Effect.

 

20.13                 Margin
Stock

 

(a)                                  Each Borrower will use the proceeds of the Loans for the purpose
described in Clause 3 (Purpose).

 

(b)                                 No Obligor  may extend credit
for the purpose of purchasing or carrying Margin Stock.

 

(c)                                  The Obligors shall procure that none of the proceeds of the Loans
will be used directly or indirectly to purchase or carry any Margin Stock or
for any other purpose in violation of the Margin Regulations.

 

(d)                                 If requested by the Facility Agent in order to comply with
Regulation U the Company will furnish to the Facility Agent in connection with
any Loan hereunder a statement in conformity with the requirements of Federal
Reserve Form U-1 referred to in Regulation U.

 

(e)                                  No portion of any borrowings hereunder will be used to acquire any
security in a transaction that is subject to Section 13 or 14 of the
United States Exchange Act 1934 as amended.

 

20.14                 Restrictions
on Lending and giving guarantees

 

No member of
the Group shall grant or permit to subsist any guarantee or make any loan or
grant any credit other than:

 

49

 

(a)                                  any guarantee or Financial Indebtedness contemplated in the Finance
Documents; or

 

(b)                                 trade credit granted in the ordinary course of business; or

 

(c)                                  the Senior Notes Guarantee to the extent such guarantee remains
subordinated to Alfa Laval Holding AB’s obligations under this Agreement; or

 

(d)                                 guarantees (including performance and like bonds, indemnities,
guarantees and assurances covering the future performance of any member of the
Group other than Alfa Laval Special Finance AB) given in the ordinary course of
business in respect of the obligations of another member of the Group;

 

(e)                                  the granting of any other guarantee, the making of any other loan or
the granting of any other credit other than to Alfa Laval Special Finance AB
the amount of which, which aggregated with the amount of all other such
guarantees, loans or credits then outstanding, does not exceed five per cent.
of the total assets of the Group at any time.

 

21.                               DEFAULT

 

21.1                        Events of Default

 

(a)                                  Each of the events set out in this Clause is an Event of Default.

 

(b)                                 In this Clause:

 

Material Group Member means
an Obligor or a Material Subsidiary; and

 

Permitted Transaction means:

 

(i)                                     an intra-Group re-organisation of a Subsidiary on a solvent basis;
or

 

(ii)                                  any other transaction agreed by the Majority Lenders.

 

21.2                        Non-payment

 

An Obligor does not pay on the due date any
amount payable by it under the Finance Documents in the manner required under
the Finance Documents, unless the non-payment:

 

(a)                                  is caused by technical or administrative error; and

 

(b)                                 is remedied within three Business Days of the due date.

 

21.3                        Breach of other obligations

 

(a)                                  An Obligor does not comply with any term of Clauses 20.4 (Pari
passu ranking), 20.5 (Negative pledge), 20.6 (Disposals), 20.8 (Change of business)
and 20.9 (Mergers) or Clause 19 (Financial covenants); or

 

(b)                                 an Obligor does not comply with any other term of the Finance
Documents not already referred to in this Clause, unless the non-compliance:

 

50

 

(i)                                     is capable of remedy; and

 

(ii)                                  is remedied within 21 days of the earlier of the Facility Agent
giving notice and the Obligor becoming aware of the non-compliance.

 

21.4                        Misrepresentation

 

A representation made or repeated by an
Obligor in any Finance Document or in any document delivered by or on behalf of
any Obligor under any Finance Document is incorrect in any material respect
when made or deemed to be repeated, unless the circumstances giving rise to the
misrepresentation:

 

(a)                                  are capable of remedy; and

 

(b)                                 are remedied within 21 days of the earlier of the Facility Agent
giving notice and the Obligor becoming aware of the misrepresentation.

 

21.5                        Cross-default

 

Any of the following occurs in respect of a
member of the Group:

 

(a)                                  any of its Financial Indebtedness is not paid when due (after the
expiry of any originally applicable grace period);

 

(b)                                 any of its Financial Indebtedness:

 

(i)                                     becomes prematurely due and payable;

 

(ii)                                  is placed on demand; or

 

(iii)                               is capable of being declared by a creditor to be prematurely due and
payable or being placed on demand,

 

in each case, as a result of an event of
default (howsoever described); or

 

(c)                                  any commitment for its Financial Indebtedness is cancelled or
suspended as a result of an event of default (howsoever described),

 

unless the aggregate amount of Financial
Indebtedness falling within paragraphs (a)-(c) above is less than euro
10,000,000 or its equivalent.

 

21.6                        Insolvency

 

(a)                                  Any of the following occurs in respect of a member of the Group:

 

(i)                                     it is, or is deemed for the purposes of any law to be, unable to pay
its debts as they fall due or insolvent;

 

(ii)                                  it admits its inability to pay its debts as they fall due;

 

51

 

(iii)                               it suspends making payments on any of its debts or announces an
intention to do so;

 

(iv)                              by reason of actual or anticipated financial difficulties, it begins
negotiations with any creditor for the rescheduling of any of its indebtedness
in an amount of euro 1,000,000 or more or (if less) in an amount which, when
aggregated with all other amounts rescheduled by members of the Group during
the life of this Agreement, is equal to or more than euro 5,000,000; or

 

(v)                                 a moratorium is declared in respect of any of its indebtedness in an
amount of euro 1,000,000 or more or (if less) in an amount which, when
aggregated with all other indebtedness of any member of the Group in respect of
which a moratorium has been declared during the life of this Agreement, is
equal to or more than euro 5,000,000.

 

If a moratorium occurs in respect of any
member of the Group, the ending of the moratorium will not remedy any Event of
Default caused by the moratorium.

 

(b)                                 Except as provided below, any of the following occurs in respect of
a member of the Group:

 

(i)                                     any step is taken with a view to a moratorium, composition,
assignment or similar arrangement with any of its creditors;

 

(ii)                                  a meeting of its shareholders, directors or other officers is
convened for the purpose of considering any resolution for, to petition for or
to file documents with a court or any registrar for, its winding-up,
administration or dissolution or any such resolution is passed;

 

(iii)                               any person presents a petition, or files documents with a court or
any registrar for its winding-up, administration or dissolution;

 

(iv)                              an order for its winding-up, administration or dissolution is made;

 

(v)                                 any liquidator, trustee in bankruptcy, judicial custodian,
compulsory manager, receiver, administrative receiver, administrator or similar
officer is appointed in respect of it or any of its assets (or, in relation to
a member of the Group which is not an Obligor, any material part of its
assets);

 

(vi)                              its shareholders, directors or other officers request the
appointment of, or give notice of their intention to appoint, a liquidator,
trustee in bankruptcy, judicial custodian, compulsory manager, receiver,
administrative receiver, administrator or similar officer; or

 

(vii)                           any other analogous step or procedure is taken in any jurisdiction,

 

except, in the case of paragraphs (i) and
(iii) above, a petition presented by, or other step taken by, a creditor on
vexatious or frivolous grounds which is being disputed in good faith and by
appropriate means and which is struck out or dismissed, in the case of a
Material

 

52

 

Group Member, within 21 days of being served
or, in relation to any other member of the Group, within 35 days of being
served.

 

(c)                                  Paragraph (b) does not apply to:

 

(i)                                     any step or procedure which is part of a Permitted Transaction; or

 

(ii)                                  a petition for winding-up presented by a creditor which is being
contested in good faith and with due diligence and is discharged or struck out,
in the case of a Material Group Member, within 21 days or, in relation to any
other member of the Group, within 35 days, or in each case such longer period
as may be agreed by the Majority Lenders.

 

(d)                                 Any of the following occurs:

 

(i)                                     any Obligor makes a general assignment for the benefit of creditors;
or

 

(ii)                                  any Obligor commences a voluntary case or proceeding under any
United States Bankruptcy Law; or

 

(iii)                               an involuntary case under any U.S. Bankruptcy Law is commenced
against any Obligor and the petition is not controverted within 30 days or is
not dismissed or stayed within 90 days after commencement of the case; and

 

(iv)                              a custodian, conservator, receiver, liquidator, assignee, trustee,
sequestrator or other similar official is appointed under any U.S. Bankruptcy
Law for or takes charge of, all or substantial part of the property of any
Obligor.

 

21.7                        Creditors’ process

 

Any attachment, sequestration, distress,
execution or analogous event affects any asset(s) of a member of the Group,
having an aggregate value of euro 5,000,000, and is not discharged within
fourteen days.

 

21.8                        Cessation of business

 

A Material Group Member ceases, or threatens
to cease, to carry on business except:

 

(a)                                  as part of a Permitted Transaction; or

 

(b)                                 as a result of any disposal allowed under this Agreement.

 

21.9                        Effectiveness of Finance Documents

 

(a)                                  It is or becomes unlawful for any Obligor to perform any of its
obligations under the Finance Documents.

 

(b)                                 Subject to the Reservations and any general principle of law
contained in a qualification in any legal opinion delivered in accordance with
this Agreement, any Finance Document is not effective or is alleged by an
Obligor to be ineffective for any reason (other than a Transfer Certificate,
the ineffectiveness of which is caused

 

53

 

by a Lender),
or the subordination of the Senior Notes Guarantee or the Funding Loan is not
effective or is alleged by an Obligor to be ineffective for any reason.

 

(c)                                  An Obligor repudiates a Finance Document or evidences an intention
to repudiate a Finance Document.

 

21.10                 Ownership
of the Obligors

 

An Obligor (other than the Parent) ceases to
be a Subsidiary of the Parent.

 

21.11                 Material
adverse change

 

Any event or series of events occurs which
could reasonably be expected to have a Material Adverse Effect.

 

21.12                 ERISA

 

(a)                                  the occurrence of any event or existence of any condition that
presents a material risk that any Obligor or any ERISA Affiliate will incur a
material liability of euro 5,000,000 or more to a Plan or to the United
States Internal Revenue Service or to the United States Pension Benefit
Guaranty Corporation; or

 

(b)                                 an “accumulated funding deficiency” of euro 1,000,000 in any
financial year or euro 5,000,000 for all periods (as that term is defined in section 412
of the United States Internal Revenue Code of 1986 (as amended) or
section 302 of ERISA), whether or not waived, by reason of the failure of
any Obligor or any ERISA Affiliate to make a contribution to a Plan.

 

21.13                 Acceleration

 

If an Event of Default is outstanding, the
Facility Agent may, and must if so instructed by the Majority Lenders, by
notice to the Company:

 

(a)                                  cancel the Total Commitments; and/or

 

(b)                                 declare that all or part of any amounts outstanding under the
Finance Documents are:

 

(i)                                     immediately due and payable; and/or

 

(ii)                                  payable on demand by the Facility Agent acting on the instructions
of the Majority Lenders.

 

Any notice given under this Subclause will
take effect in accordance with its terms.

 

22.                               THE
ADMINISTRATIVE PARTIES

 

22.1                        Appointment and duties of the Facility Agent

 

(a)                                  Each Finance Party (other than the Facility Agent) irrevocably
appoints the Facility Agent to act as its agent under the Finance Documents.

 

54

 

(b)                                 Each Finance Party irrevocably authorises the Facility Agent to:

 

(i)                                     perform the duties and to exercise the rights, powers and
discretions that are specifically given to it under the Finance Documents,
together with any other incidental rights, powers and discretions; and

 

(ii)                                  execute each Finance Document expressed to be executed by the
Facility Agent.

 

(c)                                  The Facility Agent has only those duties which are expressly
specified in the Finance Documents. 
Those duties are solely of a mechanical and administrative nature.

 

22.2                        Role of the Mandated Lead Arranger

 

Except as specifically provided in the
Finance Documents, the Mandated Lead Arranger has no obligations of any kind to
any other Party in connection with any Finance Document.

 

22.3                        No fiduciary duties

 

Except as specifically provided in a Finance
Document, nothing in the Finance Documents makes an Administrative Party a
trustee or fiduciary for any other Party or any other person.  No Administrative Party need hold in trust
any moneys paid to it for a Party or be liable to account for interest on those
moneys.

 

22.4                        Individual position of an Administrative Party

 

(a)                                  If it is also a Lender, each Administrative Party has the same
rights and powers under the Finance Documents as any other Lender and may
exercise those rights and powers as though it were not an Administrative Party.

 

(b)                                 Each Administrative Party may:

 

(i)                                     carry on any business with any Obligor or its related entities
(including acting as an agent or a trustee for any other financing); and

 

(ii)                                  retain any profits or remuneration it receives under the Finance
Documents or in relation to any other business it carries on with any Obligor
or its related entities.

 

22.5                        Reliance

 

The Facility Agent may:

 

(a)                                  rely on any notice or document believed by it to be genuine and
correct and to have been signed by, or with the authority of, the proper
person;

 

(b)                                 rely on any statement made by any person regarding any matters which
may reasonably be assumed to be within his knowledge or within his power to
verify;

 

(c)                                  engage, pay for and rely on professional advisers selected by it
(including those representing a Party other than the Facility Agent); and

 

55

 

(d)                                 act under the Finance Documents through its personnel and agents.

 

22.6                        Majority Lenders’ instructions

 

(a)                                  The Facility Agent is fully protected if it acts on the instructions
of the Majority Lenders in the exercise of any right, power or discretion or
any matter not expressly provided for in the Finance Documents.  Any such instructions given by the Majority
Lenders will be binding on all the Lenders. 
In the absence of instructions, the Facility Agent may act as it
considers to be in the best interests of all the Lenders.

 

(b)                                 The Facility Agent is not authorised to act on behalf of a Lender
(without first obtaining that Lender’s consent) in any legal or arbitration
proceedings in connection with any Finance Document.

 

(c)                                  The Facility Agent may require the receipt of security satisfactory
to it, whether by way of payment in advance or otherwise, against any liability
or loss which it may incur in complying with the instructions of the Majority
Lenders.

 

22.7                        Responsibility

 

(a)                                  No Administrative Party is responsible to any other Finance Party for
the adequacy, accuracy or completeness of:

 

(i)                                     any Finance Document or any other document; or

 

(ii)                                  any statement or information (whether written or oral) made in or
supplied in connection with any Finance Document.

 

(b)                                 Without affecting the responsibility of any Obligor for information
supplied by it or on its behalf in connection with any Finance Document, each
Lender confirms that it:

 

(i)                                     has made, and will continue to make, its own independent appraisal
of all risks arising under or in connection with the Finance Documents
(including the financial condition and affairs of each Obligor and its related
entities and the nature and extent of any recourse against any Party or its
assets); and

 

(ii)                                  has not relied exclusively on any information provided to it by any
Administrative Party in connection with any Finance Document.

 

22.8                        Exclusion of liability

 

	
  (a)

  	
   

  	
  The Facility Agent is not liable or
  responsible to any other Finance Party for any action taken or not taken by
  it in connection with any Finance Document, unless directly caused by its
  gross negligence or wilful misconduct.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  No Party may take any proceedings against
  any officer, employee or agent of the Facility Agent in respect of any claim
  it might have against the Facility Agent or in respect of any act or omission
  of any kind by that officer, employee or agent in connection with any Finance
  Document.  Any officer, employee or
  agent of the Facility Agent may rely on this Subclause and enforce its terms
  under the Contracts (Rights of Third Parties) Act 1999.

  

 

56

 

	
  (c)

  	
   

  	
  (i)

  	
  Nothing in this Agreement will oblige any
  Administrative Party to satisfy any know your customer requirement in
  relation to the identity of any person on behalf of any Finance Party.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Each Finance Party confirms to each
  Administrative Party that it is solely responsible for any know your customer
  requirements it is required to carry out and that it may not rely on any
  statement in relation to those requirements made by any other person.

  

 

22.9                        Default

 

(a)                                  The Facility Agent is not obliged to monitor or enquire whether a
Default has occurred.  The Facility
Agent is not deemed to have knowledge of the occurrence of a Default.

 

(b)                                 If the Facility Agent:

 

(i)                                     receives notice from a Party referring to this Agreement, describing
a Default and stating that the event is a Default; or

 

(ii)                                  is aware of the non-payment of any principal or interest or any fee
payable to a Lender under this Agreement,

 

it must promptly notify the Lenders.

 

22.10                 Information

 

(a)                                  The Facility Agent must promptly forward to the person concerned the
original or a copy of any document which is delivered to the Facility Agent by
a Party for that person.

 

(b)                                 Except where a Finance Document specifically provides otherwise, the
Facility Agent is not obliged to review or check the adequacy, accuracy or
completeness of any document it forwards to another Party.

 

(c)                                  Except as provided above, the Facility Agent has no duty:

 

(i)                                     either initially or on a continuing basis to provide any Lender with
any credit or other information concerning the risks arising under or in
connection with the Finance Documents (including any information relating to
the financial condition or affairs of any Obligor or its related entities or
the nature or extent of recourse against any Party or its assets) whether
coming into its possession before, on or after the date of this Agreement; or

 

(ii)                                  unless specifically requested to do so by a Lender in accordance
with a Finance Document, to request any certificate or other document from any
Obligor.

 

(d)                                 In acting as the Facility Agent, the agency division of the Facility
Agent is treated as a separate entity from its other divisions and
departments.  Any information acquired
by the Facility Agent which, in its opinion, is acquired by it otherwise than
in its

 

57

 

capacity as
the Facility Agent may be treated as confidential by the Facility Agent and
will not be treated as information possessed by the Facility Agent in its
capacity as such.

 

(e)                                  The Facility Agent is not obliged to disclose to any person any
confidential information supplied to it by a member of the Group solely for the
purpose of evaluating whether any waiver or amendment is required to any term
of the Finance Documents.

 

(f)                                    Each Obligor irrevocably authorises the Facility Agent to disclose
to the other Finance Parties any information which, in its opinion, is received
by it in its capacity as the Facility Agent.

 

22.11                 Indemnities

 

(a)                                  Without limiting the liability of any Obligor under the Finance
Documents, each Lender must indemnify the Facility Agent for that Lender’s Pro
Rata Share of any loss or liability incurred by the Facility Agent in acting as
the Facility Agent, except to the extent that the loss or liability is caused
by the Facility Agent’s gross negligence or wilful misconduct.

 

(b)                                 The Facility Agent may deduct from any amount received by it for a
Lender any amount due to the Facility Agent from that Lender under a Finance
Document but unpaid.

 

22.12                 Compliance

 

The Facility Agent may refrain from doing
anything (including disclosing any information) which might, in its opinion,
constitute a breach of any law or regulation or be otherwise actionable at the
suit of any person, and may do anything which, in its opinion, is necessary or
desirable to comply with any law or regulation.

 

22.13                 Resignation
of the Facility Agent

 

(a)                                  The Facility Agent may resign and appoint any of its Affiliates as
successor Facility Agent by giving notice to the Lenders and the Company.

 

(b)                                 Alternatively, the Facility Agent may resign by giving notice to the
Lenders and the Company, in which case the Majority Lenders may (after
consultation with the Company) appoint a successor Facility Agent.

 

(c)                                  If no successor Facility Agent has been appointed under paragraph
(b) above within 30 days after notice of resignation was given, the
Facility Agent may (after consultation with the Company) appoint a successor
Facility Agent.

 

(d)                                 The person(s) appointing a successor Facility Agent must, if
practicable, consult with the Company prior to the appointment.

 

(e)                                  The resignation of the Facility Agent and the appointment of any
successor Facility Agent will both become effective only when the successor
Facility Agent notifies all the Parties that it accepts its appointment.  On giving the notification, the successor

 

58

 

Facility Agent
will succeed to the position of the Facility Agent and the term Facility
Agent will mean the successor Facility Agent.

 

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

 

(g)                                 Upon its resignation becoming effective, this Clause will
continue to benefit the retiring Facility Agent in respect of any action taken
or not taken by it in connection with the Finance Documents while it was the
Facility Agent, and, subject to paragraph (f) above, it will have no
further obligations under any Finance Document.

 

(h)                                 The Majority Lenders may, by notice to the Facility Agent, require
it to resign under paragraph (b) above.

 

22.14                 Relationship
with Lenders

 

(a)                                  The Facility Agent may treat each Lender as a Lender, entitled to
payments under this Agreement and as acting through its Facility Office(s)
until it has received not less than five Business Days’ prior notice from that
Lender to the contrary.

 

(b)                                 The Facility Agent may at any time, and must if requested to do so
by the Majority Lenders, convene a meeting of the Lenders.

 

(c)                                  The Facility Agent must keep a register of all the Parties and
supply any other Party with a copy of the register on request.  The register will include each Lender’s
Facility Office(s) and contact details for the purposes of this Agreement.

 

22.15                 Facility
Agent’s management time

 

If the Facility Agent requires, any amount
payable to the Facility Agent by any Party under any indemnity or in respect of
any costs or expenses incurred by the Facility Agent under the Finance
Documents after the date of this Agreement may include the cost of using its management
time or other resources and will be calculated on the basis of such reasonable
daily or hourly rates as the Facility Agent may notify to the relevant
Party.  This is in addition to any
amount in respect of fees or expenses paid or payable to the Facility Agent
under any other term of the Finance Documents.

 

22.16                 Notice
period

 

Where this Agreement specifies a minimum
period of notice to be given to the Facility Agent, the Facility Agent may, at
its discretion, accept a shorter notice period.

 

23.                               EVIDENCE
AND CALCULATIONS

 

23.1                        Accounts

 

Accounts maintained by a Finance Party in
connection with this Agreement are prima facie evidence of the matters to which
they relate for the purpose of any litigation or arbitration proceedings.

 

59

 

23.2                        Certificates and determinations

 

Any certification or determination by a
Finance Party of a rate or amount under the Finance Documents will be, in the
absence of manifest error, conclusive evidence of the matters to which it
relates.

 

23.3                        Calculations

 

Any interest, commission or fee accruing
under this Agreement accrues from day to day and is calculated on the basis of
the actual number of days elapsed and a year of 360 or 365 days or otherwise,
depending on what the Facility Agent determines is market practice.

 

24.                               FEES

 

24.1                        Facility Agent’s fee

 

The Company must pay to the Facility Agent
for its own account an agency fee in the manner agreed in the Fee Letter
between the Facility Agent and the Company.

 

24.2                        Arrangement fee

 

The Company must pay to the Mandated Lead
Arranger for their own account an arrangement fee in the manner agreed in the
Fee Letter between the Mandated Lead Arranger and the Company.

 

24.3                        Commitment fee

 

(a)                                  The Company must pay a commitment fee computed at the rate of 45 per
cent. of the applicable Margin on the undrawn, uncancelled amount of each
Lender’s Total Commitment.

 

(b)                                 Accrued commitment fee is payable quarterly in arrear.   Accrued commitment fee is also payable to
the Facility Agent for a Lender on the date its Commitment is cancelled.

 

24.4                        Utilisation fee

 

(a)                                  The Company must pay to the Facility Agent for each Lender a
utilisation fee computed at the rate of:

 

(i)                                     for each day on which the aggregate amount of Loans outstanding
equal or exceed 50 per cent. of Total Commitments but is less than or equal to
75 per cent. of Total Commitments, 0.025 per cent. per annum; and

 

(ii)                                  for each day on which the aggregate amount of Loans outstanding
equals or exceeds 75 per cent. of Total Commitments, 0.05 per cent. per annum.

 

(b)                                 Utilisation fee is payable on the amount of a Lender’s share in the
relevant Loans.

 

(c)                                  Accrued utilisation fee is payable quarterly in arrear in Dollars,
calculated at the Agent’s Spot Rate of Exchange for Dollars on the due
date.  Accrued utilisation fee is also
payable to the

 

60

 

Facility Agent
for a Lender on the date that its Commitment is cancelled and its share in the
Loans prepaid or repaid in full.

 

25.                               INDEMNITIES
AND BREAK COSTS

 

25.1                        Currency indemnity

 

(a)                                  The Company must, as an independent obligation, indemnify each
Finance Party against any loss or liability which that Finance Party incurs as
a consequence of:

 

(i)                                     that Finance Party receiving an amount in respect of an Obligor’s
liability under the Finance Documents; or

 

(ii)                                  that liability being converted into a claim, proof, judgment or
order,

 

in a currency other than the currency in
which the amount is expressed to be payable under the relevant Finance
Document.

 

(b)                                 Unless otherwise required by law, each Obligor waives any right it
may have in any jurisdiction to pay any amount under the Finance Documents in a
currency other than that in which it is expressed to be payable.

 

25.2                        Other indemnities

 

(a)                                  The Company must indemnify each Finance Party against any loss or
liability which that Finance Party incurs as a consequence of:

 

(i)                                     the occurrence of any Event of Default;

 

(ii)                                  any failure by an Obligor to pay any amount due under a Finance Document
on its due date, including any resulting from any distribution or
redistribution of any amount among the Lenders under this Agreement;

 

(iii)                               (other than by reason of negligence or default by that Finance
Party) a Loan not being made after a Request has been delivered for that Loan;
or

 

(iv)                              a Loan (or part of a Loan) not being prepaid in accordance with a
notice of prepayment.

 

The Company’s liability in each case includes
any loss or expense on account of funds borrowed, contracted for or utilised to
fund any amount payable under any Finance Document, any amount repaid or
prepaid or any Loan.

 

(b)                                 The Company must indemnify the Facility Agent against any loss or
liability reasonably incurred by the Facility Agent as a result of:

 

(i)                                     investigating any event which the Facility Agent reasonably believes
to be a Default; or

 

(ii)                                  acting or relying on any notice which the Facility Agent reasonably
believes to be genuine, correct and appropriately authorised.

 

61

 

25.3                        Break Costs

 

(a)                                  Each Borrower must pay to each Lender its Break Costs.

 

(b)                                 Break Costs are the amount (if any) determined by the relevant
Lender by which:

 

(i)                                     the interest which that Lender would have received for the period
from the date of receipt of any part of its share in a Loan or an overdue
amount to the last day of the applicable Term for that Loan or overdue amount
if the principal or overdue amount received had been paid on the last day of
that Term;

 

exceeds

 

(ii)                                  the amount which that Lender would be able to obtain by placing an
amount equal to the amount received by it on deposit with a leading bank in the
appropriate interbank market for a period starting on the Business Day
following receipt and ending on the last day of the applicable Term.

 

(c)                                  Each Lender must supply to the Facility Agent for the relevant
Borrower details of the amount of any Break Costs claimed by it under this
Subclause.

 

26.                               EXPENSES

 

26.1                        Initial costs

 

The Company must pay to each Administrative
Party the amount of all costs and expenses (including legal fees) reasonably
incurred by it in connection with the negotiation, preparation, printing,
execution and syndication of the Finance Documents as agreed in the Fee Letter
between the Mandated Lead Arranger and the Parent.

 

26.2                        Subsequent costs

 

The Company must pay to the Facility Agent
the amount of all costs and expenses (including legal fees) reasonably incurred
by it in connection with:

 

(a)                                  the negotiation, preparation, printing and execution of any Finance
Document (other than a Transfer Certificate) executed after the date of this
Agreement; and

 

(b)                                 any amendment, waiver or consent requested by or on behalf of an
Obligor or specifically allowed by this Agreement.

 

26.3                        Enforcement costs

 

The Company must pay to each Finance Party
the amount of all costs and expenses (including legal fees) incurred by it in
connection with the enforcement of, or the preservation of any rights under,
any Finance Document.

 

62

 

27.                               AMENDMENTS
AND WAIVERS

 

27.1                        Procedure

 

(a)                                  Except as provided in this Clause, any term of the Finance Documents
may be amended or waived with the agreement of the Company and the Majority
Lenders.  The Facility Agent may effect,
on behalf of any Finance Party, an amendment or waiver allowed under this
Clause.

 

(b)                                 The Facility Agent must promptly notify the other Parties of any
amendment or waiver effected by it under paragraph (a) above.  Any such amendment or waiver is binding on
all the Parties.

 

27.2                        Exceptions

 

(a)                                  An amendment or waiver which relates to:

 

(i)                                     the definition of Majority Lenders in Clause 1.1
(Definitions);

 

(ii)                                  an extension of the date of payment of any amount to a Lender under
the Finance Documents;

 

(iii)                               a reduction in the Margin or a reduction in the amount of any
payment of principal, interest, fee or other amount payable to a Lender under
the Finance Documents;

 

(iv)                              an increase in, or an extension of, a Commitment or the Total
Commitments;

 

(v)                                 a release of an Obligor;

 

(vi)                              a term of a Finance Document which expressly requires the consent of
each Lender;

 

(vii)                           the right of a Lender to assign or transfer its rights or
obligations under the Finance Documents; or

 

(viii)                        this Clause,

 

may only be made with the consent of all the
Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of
an Administrative Party may only be made with the consent of that
Administrative Party.

 

27.3                        Change of currency

 

If a change in any currency of a country
occurs (including where there is more than one currency or currency unit
recognised at the same time as the lawful currency of a country), the Finance
Documents will be amended to the extent the Facility Agent (acting reasonably
and after consultation with the Company) determines is necessary to reflect the
change.

 

63

 

27.4                        Waivers and remedies cumulative

 

The rights of each Finance Party under the
Finance Documents:

 

(a)                                  may be exercised as often as necessary;

 

(b)                                 are cumulative and not exclusive of its rights under the general
law; and

 

(c)                                  may be waived only in writing and specifically.

 

Delay in exercising or non-exercise of any
right is not a waiver of that right.

 

28.                               CHANGES
TO THE PARTIES

 

28.1                        Assignments and transfers by Obligors

 

No Obligor may assign or transfer any of its
rights and obligations under the Finance Documents without the prior consent of
all the Lenders.

 

28.2                        Assignments and transfers by Lenders

 

(a)                                  A Lender (the Existing Lender) may, subject to the
following provisions of this Subclause, at any time assign or transfer
(including by way of novation) any of its rights and obligations under this
Agreement to any other person (the New Lender).

 

(b)                                 Unless the Company and the Facility Agent otherwise agree, a
transfer of part of a Commitment or the rights and obligations under this
Agreement by the Existing Lender must be in a minimum amount of US$10,000,000
(in respect of Tranche A) or euro 10,000,000 (in respect of Tranche B) .

 

(c)                                  The consent of the Company is required for any assignment or
transfer unless:

 

(i)                                     the New Lender is another Lender or an Affiliate of a Lender; or

 

(ii)                                  an Event of Default is continuing.

 

(d)                                 The consent of the Company must not be unreasonably withheld or
delayed.  The Company will be deemed to
have given its consent five Business Days after the Company is given notice of
the request unless it is expressly refused by the Company within that time.

 

(e)                                  A transfer of obligations will be effective only if either:

 

(i)                                     the obligations are novated in accordance with the following
provisions of this Clause; or

 

(ii)                                  the New Lender confirms to the Facility Agent and the Company in
form and substance satisfactory to the Facility Agent that it is bound by the
terms of this Agreement as a Lender.  On
the transfer becoming effective in this manner the Existing Lender will be
released from its obligations under this Agreement to the extent that they are
transferred to the New Lender.

 

64

 

(f)                                    Unless the Facility Agent otherwise agrees, the New Lender must pay
to the Facility Agent for its own account, on or before the date any assignment
or transfer occurs, a fee of euro 1500.

 

(g)                                 Any reference in this Agreement to a Lender includes a New Lender
but excludes a Lender if no amount is or may be owed to or by it under this
Agreement.

 

28.3                        Procedure for transfer by way of novations

 

(a)                                  In this Subclause:

 

Transfer Date means, for a
Transfer Certificate, the later of:

 

(i)                                     the proposed Transfer Date specified in that Transfer Certificate;
and

 

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

 

(b)                                 A novation is effected if:

 

(i)                                     the Existing Lender and the New Lender deliver to the Facility Agent
a duly completed Transfer Certificate; and

 

(ii)                                  the Facility Agent executes it.

 

The Facility Agent must execute as soon as
reasonably practicable a Transfer Certificate delivered to it and which appears
on its face to be in order.

 

(c)                                  Each Party (other than the Existing Lender and the New Lender)
irrevocably authorises the Facility Agent to execute any duly completed
Transfer Certificate on its behalf.

 

(d)                                 On the Transfer Date:

 

(i)                                     the New Lender will assume the rights and obligations of the
Existing Lender expressed to be the subject of the novation in the Transfer
Certificate in substitution for the Existing Lender; and

 

(ii)                                  the Existing Lender will be released from those obligations and
cease to have those rights.

 

28.4                        Limitation of responsibility of Existing Lender

 

(a)                                  Unless expressly agreed to the contrary, an Existing Lender is not
responsible to a New Lender for the legality, validity, adequacy, accuracy,
completeness or performance of:

 

(i)                                     any Finance Document or any other document; or

 

(ii)                                  any statement or information (whether written or oral) made in or
supplied in connection with any Finance Document,

 

65

 

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 will continue to make, its own independent appraisal
of all risks arising under or in connection with the Finance Documents
(including the financial condition and affairs of each Obligor and its related
entities and the nature and extent of any recourse against any Party or its
assets) in connection with its participation in this Agreement; and

 

(ii)                                  has not relied exclusively on any information supplied to it by the
Existing Lender in connection with any Finance Document.

 

(c)                                  Nothing in any Finance Document requires 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; or

 

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

 

28.5                        Costs resulting from change of Lender or Facility Office

 

If:

 

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

 

(b)                                 as a result of circumstances existing at the date the assignment,
transfer or change occurs, an Obligor would be obliged to pay a Tax Payment or
an Increased Cost,

 

(c)                                  the Obligor need only pay that Tax Payment or Increased Cost to the
same extent that it would have been obliged to if no assignment, transfer or
change had occurred.

 

28.6                        Resignation of an Obligor (other than the Company or the Parent)

 

(a)                                  In this Subclause, Resignation Request means a letter in the
form of Schedule 8 (Form of Resignation Request), with such amendments as
the Facility Agent may approve or reasonably require.

 

(b)                                 The Company may request that an Obligor (other than the Company or the
Parent) ceases to be an Obligor by giving to the Facility Agent a duly
completed Resignation Request.

 

(c)                                  subject to paragraph (d) below, the Facility Agent must accept a
Resignation Request and notify the Company and the Lenders of its acceptance
if:

 

(i)                                     in the case of a Guarantor, the Majority Lenders have consented to
the Resignation Request;

 

66

 

(ii)                                  it is not aware that a Default is outstanding or would result from
the acceptance of the Resignation Request; and

 

(iii)                               no amount owed by that Obligor under this Agreement is still
outstanding.

 

(d)                                 If a Resignation Request relates to Alfa Laval Special Finance AB or
Alfa Laval Holding AB as Guarantors, the Facility Agent must, in addition to
the notification set out in paragraph (c), notify the Company and the Lenders
that is has received evidence in form and substance satisfactory to the
Majority Lenders that:

 

(i)                                     the Senior Notes have been irrevocably redeemed in full;

 

(ii)                                  the Senior Notes Guarantee has been irrevocably released; and

 

(iii)                               that Alfa Laval Special Finance AB and Alfa Laval Holding AB have
undertaken that they will not sell or issue any notes, bonds or similar
instruments prior to the Final Maturity Date.

 

Following
the acceptance of a Resignation Request relating to Alfa Laval Special Finance
AB or Alfa Laval Holding AB in accordance with this paragraph and paragraph
(c), references to Alfa Laval Special Finance AB or Alfa Laval Holding AB (as
the case may be) in the following clauses shall be deemed to be deleted:

 

(A)                              Clause 20.6(b)(iv) (Disposals);

 

(B)                                Clauses 20.7(a), (b)(iii) and (vi) (Financial Indebtedness); and

 

(C)                                Clauses 20.14(d) and (e) (Restrictions on Lending and giving
guarantees).

 

(e)                                  The Obligor will cease to be a Borrower and/or a Guarantor, as
appropriate, when the Facility Agent gives the notification referred to in
paragraph (c) above.

 

(f)                                    An Obligor (other than the Company or the Parent) may also cease to
be an Obligor in any other manner approved by the Majority Lenders.

 

28.7                        Changes to the 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 must (in consultation with the Company) appoint another
Lender or an Affiliate of a Lender to replace that Reference Bank.

 

28.8                        Affiliates of Lenders

 

(a)                                  Each Lender may fulfil its obligations in respect of any Loan
through an Affiliate if:

 

(i)                                     the relevant Affiliate is specified in this Agreement as a Lender or
becomes a Lender by means of a Transfer Certificate in accordance with this
Agreement; and

 

67

 

(ii)                                  the Loans in which that Affiliate will participate are specified in
this Agreement or in a notice given by that Lender to the Facility Agent and
the Company.

 

In this event, the Lender and the Affiliate
will participate in Loans in the manner provided for in sub-paragraph (ii)
above.

 

(b)                                 If paragraph (a) above applies, the Lender and its Affiliate will be
treated as having a single Commitment and a single vote, but, for all other
purposes, will be treated as separate Lenders.

 

29.                               DISCLOSURE
OF INFORMATION

 

(a)                                  Each Finance Party must keep confidential any information supplied
to it by or on behalf of any Obligor in connection with the Finance
Documents.  However, a Finance Party is
entitled to disclose information:

 

(i)                                     which is publicly available, other than as a result of a breach by
that Finance Party of this Clause;

 

(ii)                                  in connection with any legal or arbitration proceedings;

 

(iii)                               if required to do so under any law or regulation;

 

(iv)                              to a governmental, banking, taxation or other regulatory authority;

 

(v)                                 to its professional advisers;

 

(vi)                              to the extent allowed under paragraph (b) below; or

 

(vii)                           with the agreement of the relevant Obligor.

 

(b)                                 A Finance Party may disclose to an Affiliate or any person with whom
it may enter, or has entered into, any kind of transfer, participation or other
agreement in relation to this Agreement (a participant):

 

(i)                                     a copy of any Finance Document; and

 

(ii)                                  any information which that Finance Party has acquired under or in
connection with any Finance Document.

 

However, before a participant may receive any
confidential information, it must agree with the relevant Finance Party to keep
that information confidential on the terms of paragraph (a) above.

 

(c)                                  This Clause supersedes any previous confidentiality undertaking
given by a Finance Party in connection with this Agreement prior to it becoming
a Party.

 

68

 

30.                               SET-OFF

 

Following the occurrence of a Default and for
so long as it is continuing, a Finance Party may set off any matured obligation
owed to it by an Obligor under the Finance Documents (to the extent beneficially
owned by that Finance Party) against any obligation (whether or not matured)
owed by that Finance Party to that Obligor, 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.                               PRO RATA
SHARING

 

31.1                        Redistribution

 

If any amount owing by an Obligor under this
Agreement to a Lender (the recovering Lender) is discharged by
payment, set-off or any other manner other than through the Facility Agent
under this Agreement (a recovery), then:

 

(a)                                  the recovering Lender must, within three Business Days, supply
details of the recovery to the Facility Agent;

 

(b)                                 the Facility Agent must calculate whether the recovery is in excess
of the amount which the recovering Lender would have received if the recovery
had been received by the Facility Agent under this Agreement; and

 

(c)                                  the recovering Lender must pay to the Facility Agent an amount equal
to the excess (the redistribution).

 

31.2                        Effect of redistribution

 

(a)                                  The Facility Agent must treat a redistribution as if it were a
payment by the relevant Obligor under this Agreement and distribute it among
the Lenders, other than the recovering Lender, accordingly.

 

(b)                                 When the Facility Agent makes a distribution under
paragraph (a) above, the recovering Lender will be subrogated to the
rights of the Finance Parties which have shared in that redistribution.

 

(c)                                  If and to the extent that the recovering Lender is not able to rely
on any rights of subrogation under paragraph (b) above,  the relevant Obligor will owe the recovering
Lender a debt which is equal to the redistribution, immediately payable and of
the type originally discharged.

 

(d)                                 If:

 

(i)                                     a recovering Lender must subsequently return a recovery, or an
amount measured by reference to a recovery, to an Obligor; and

 

(ii)                                  the recovering Lender has paid a redistribution in relation to that
recovery,

 

69

 

each Finance Party must reimburse the
recovering Lender all or the appropriate portion of the redistribution paid to
that Finance Party, together with interest for the period while it held the re-distribution.  In this event, the subrogation in
paragraph (b) above will operate in reverse to the extent of the
reimbursement.

 

31.3                        Exceptions

 

Notwithstanding any other term of this
Clause, a recovering Lender need not pay a redistribution to the extent that:

 

(a)                                  it would not, after the payment, have a valid claim against the
relevant Obligor in the amount of the redistribution; or

 

(b)                                 it would be sharing with another Finance Party any amount which the
recovering Lender has received or recovered as a result of legal or arbitration
proceedings, where:

 

(i)                                     the recovering Lender notified the Facility Agent of those
proceedings; and

 

(ii)                                  the other Finance Party had an opportunity to participate in those
proceedings but did not do so or did not take separate legal or arbitration
proceedings as soon as reasonably practicable after receiving notice of them.

 

32.                               SEVERABILITY

 

If a term of a Finance Document is or becomes
illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

 

(a)                                  the legality, validity or enforceability in that jurisdiction of any
other term of the Finance Documents; or

 

(b)                                 the legality, validity or enforceability in other jurisdictions of
that or any other term of the Finance Documents.

 

33.                               COUNTERPARTS

 

Each Finance Document may be executed in any
number of counterparts.  This has the
same effect as if the signatures on the counterparts were on a single copy of
the Finance Document.

 

34.                               NOTICES

 

34.1                        In writing

 

(a)                                  Any communication in connection with a Finance Document must be in
writing and, unless otherwise stated, may be given in person, by post, or fax.

 

(b)                                 Unless it is agreed to the contrary, any consent or agreement
required under a Finance Document must be given in writing.

 

70

 

34.2                        Contact details

 

(a)                                  Except as provided below, the contact details of each Party for all
communications in connection with the Finance Documents are those notified by
that Party for this purpose to the Facility Agent on or before the date it
becomes a Party.

 

(b)                                 The contact details of the Company for this purpose are:

 

	
  Address:

  	
   

  	
  PO Box 73

  
	
   

  	
   

  	
  SE-221 00 Lund

  
	
   

  	
   

  	
  Sweden

  
	
   

  	
   

  	
   

  
	
  Fax number:

  	
   

  	
  +46 46 36 7184

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Group Treasurer.

  

 

(c)                                  The contact details of the Facility Agent for this purpose are:

 

	
  Address:

  	
   

  	
  SEB Merchant Banking

  
	
   

  	
   

  	
  Foreign Credit Administration

  
	
   

  	
   

  	
  Rissneleden 110

  
	
   

  	
   

  	
  106 40 Stockholm

  
	
   

  	
   

  	
  Sweden

  
	
   

  	
   

  	
   

  
	
  Fax number:

  	
   

  	
  +46 8 611 0384

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Foreign Credit Administration

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  

 

	
  Address:

  	
   

  	
  SEB Merchant Banking

  
	
   

  	
   

  	
  Loans Agency

  
	
   

  	
   

  	
  Scandinavian House

  
	
   

  	
   

  	
  2 Cannon Street

  
	
   

  	
   

  	
  London EC4M 6XX

  
	
   

  	
   

  	
   

  
	
  Fax number:

  	
   

  	
  +44 20 7329 2304

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Loans Agency

  

 

(ii)                                  for all other communications:

 

	
  Address:

  	
   

  	
  SEB Merchant Banking,

  
	
   

  	
   

  	
  Loans Agency

  
	
   

  	
   

  	
  Scandinavian House

  
	
   

  	
   

  	
  2 Cannon Street

  
	
   

  	
   

  	
  London EC4M 6XX

  
	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Fax number:

  	
   

  	
  +44 20 7329 2304

  

 

71

 

	
  Attention:

  	
   

  	
  Loans Agency.

  

 

(d)                                 Any Party may change its contact details by giving five Business
Days’ notice to the Facility Agent or (in the case of the Facility Agent) to
the other Parties.

 

(e)                                  Where a Party nominates a particular department or officer to
receive a communication, a communication will not be effective if it fails to
specify that department or officer.

 

34.3                        Effectiveness

 

(a)                                  Except as provided below, any communication in connection with a
Finance Document will be deemed to be given as follows:

 

(i)                                     if delivered in person, at the time of delivery;

 

(ii)                                  if posted, five days after being deposited in the post, postage
prepaid, in a correctly addressed envelope; and

 

(iii)                               if by fax, when received in legible form.

 

(b)                                 A communication given under paragraph (a) above but received on
a non-working day or after business hours in the place of receipt will only be
deemed to be given on the next working day in that place.

 

(c)                                  A communication to the Facility Agent will only be effective on
actual receipt by it.

 

34.4                        Obligors

 

(a)                                  All communications under the Finance Documents to or from an Obligor
must be sent through the Facility Agent.

 

(b)                                 All communications under the Finance Documents to or from an Obligor
(other than the Company) must be sent through the Company.

 

(c)                                  Each Obligor (other than the Company) irrevocably appoints the
Company to act as its agent:

 

(i)                                     to give and receive all communications under the Finance Documents;

 

(ii)                                  to supply all information concerning itself to any Finance Party;
and

 

(iii)                               to sign all documents under or in connection with the Finance
Documents.

 

(d)                                 Any communication given to the Company in connection with a Finance
Document will be deemed to have been given also to the other Obligors.

 

(e)                                  The Facility Agent may assume that any communication made by the
Company is made with the consent of each other Obligor.

 

72

 

35.                               LANGUAGE

 

(a)                                  Any notice given in connection with a Finance Document must be in
English.

 

(b)                                 Any other document provided in connection with a Finance Document
must be:

 

(i)                                     in English; or

 

(ii)                                  (unless the Facility Agent otherwise agrees) accompanied by a
certified English translation.  In this
case, the English translation prevails unless the document is a statutory or
other official document.

 

36.                               GOVERNING LAW

 

This Agreement is governed by English law.

 

37.                               ENFORCEMENT

 

37.1                        Jurisdiction

 

(a)                                  Subject to paragraph (b) below, the English courts have exclusive
jurisdiction to settle any dispute in connection with any Finance Document and
each Party accordingly submits to the jurisdiction of the English courts.

 

(b)                                 Notwithstanding paragraph (a) above, any New York State court or
Federal court sitting in New York City, State of New York also has jurisdiction
to settle any dispute in connection with any Finance Document and each Party
accordingly submits to the jurisdiction of these courts.

 

(c)                                  The English and New York courts are the most appropriate and
convenient courts to settle any such dispute and each Obligor waives objection
to those courts on the grounds of inconvenient forum or otherwise in relation
to proceedings in connection with any Finance Document.

 

(d)                                 This Clause is for the benefit of the Finance Parties only.  To the extent allowed by law, a Finance
Party may take:

 

(i)                                     proceedings in any other court; and

 

(ii)                                  concurrent proceedings in any number of jurisdictions.

 

37.2                        Service of process

 

(a)                                  Each Obligor not incorporated in England and Wales irrevocably
appoints Alfa Laval Limited of Alfa House, Doman Road, Camberley, Surrey GU15
3DN (fax no. : +44 1276 61088) as its agent under the Finance Documents for
service of process in any proceedings before the English courts in connection
with any Finance Document.

 

(b)                                 Each Obligor not incorporated or having a place of business in New
York State irrevocably appoints Alfa Laval U.S. Treasury Inc. of 5400 International Trade Drive, Richmond, VA
23231, U.S.A. as its agent for service of process in any proceedings

 

73

 

before any New
York State courts in connection with any Finance Document.  Alfa Laval U.S. Treasury Inc. by signing
this Agreement accepts and confirms its appointment as agent for service of
process for each other Obligor in any proceeding before any New York State
court in connection with any Finance Document.

 

(c)                                  Each Obligor agrees to maintain an agent for service of process in
England and the State of New York until all Commitments have terminated and the
Loans and all other amounts payable under the Finance Documents have been
finally, irrevocably and indefeasibly repaid in full.

 

(d)                                 If any person appointed as process agent is unable for any reason to
act as agent for service of process, the Company (on behalf of all the
Obligors) must immediately appoint another agent on terms acceptable to the
Facility Agent.  Failing this, the
Facility Agent may appoint another agent for this purpose.

 

(e)                                  Each Obligor agrees that failure by a process agent to notify it of
any process will not invalidate the relevant proceedings.

 

(f)                                    This Clause does not affect any other method of service allowed by
law.

 

(g)                                 Each Obligor agrees that if the appointment of any person mentioned
in paragraph (a) or (b) above ceases to be effective, the Obligor shall
immediately appoint a further person in England or in the State of New York, as
appropriate, to accept service of process on its behalf in England or in the
State of New York, as appropriate and, if the Obligor does not appoint a
process agent within 15 days, the Facility Agent is entitled and authorised to
appoint a process agent of the Obligor by notice to the Obligor.

 

37.3                        Waiver of immunity

 

Each Obligor irrevocably and unconditionally:

 

(a)                                  agrees not to claim any immunity from proceedings brought by a
Finance Party against it in relation to a Finance Document and to ensure that
no such claim is made on its behalf;

 

(b)                                 consents generally to the giving of any relief or the issue of any
process in connection with those proceedings; and

 

(c)                                  waives all rights of immunity in respect of it or its assets.

 

37.4                        Waiver of trial by jury

 

EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN CONNECTION WITH ANY FINANCE
DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE DOCUMENT.  THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO TRIAL BY COURT.

 

74

 

38.                               COMPLETE
AGREEMENT

 

The Finance Documents contain the complete
agreement between the Parties on the matters to which they relate and supersede
all prior commitments, agreements and understandings, whether written or oral,
on those matters.

 

This Agreement has been entered into on the
date stated at the beginning of this Agreement.

 

75

 

SCHEDULE 1

 

ORIGINAL PARTIES

 

	
  Name of
  Borrowers

  	
   

  	
  Registration number

  (or
  equivalent, if any)

  
	
   

  	
   

  	
   

  
	
  Alfa Laval Treasury International AB

  	
   

  	
  556432-2484

  
	
   

  	
   

  	
   

  
	
  Alfa Laval US Treasury Inc.

  	
   

  	
   

  

 

 

	
  Name of
  Guarantors

  	
   

  	
  Registration number

  (or
  equivalent, if any)

  
	
   

  	
   

  	
   

  
	
  Alfa Laval AB (publ)

  	
   

  	
  556587-8054

  
	
   

  	
   

  	
   

  
	
  Alfa Laval Special Finance AB

  	
   

  	
  556587-8062

  
	
   

  	
   

  	
   

  
	
  Alfa Laval Holding AB

  	
   

  	
  556025-2792

  

 

76

 

	
  Name of
  Original Tranche A Lenders

  	
   

  	
  Tranche A Commitments

  US$

  
	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  62,000,000

  
	
   

  	
   

  	
   

  
	
  Danske Bank A/S

  	
   

  	
  50,000,000

  
	
   

  	
   

  	
   

  
	
  ING Bank

  	
   

  	
  50,000,000

  
	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  50,000,000

  
	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken AB (publ)

  	
   

  	
  50,000,000

  
	
   

  	
   

  	
   

  
	
  HSBC Bank Plc

  	
   

  	
  27,000,000

  
	
   

  	
   

  	
   

  
	
  FIH Erhvervsbank A/S

  	
   

  	
  12,000,000

  
	
   

  	
   

  	
   

  
	
  Natexis Banques Populaires

  	
   

  	
  12,000,000

  
	
   

  	
   

  	
   

  
	
  Nykredit Bank A/S

  	
   

  	
  12,000,000

  
	
   

  	
   

  	
   

  
	
  Total Tranche A Commitments

  	
   

  	
  US$

  	
  325,000,000

  

 

 

	
  Name of
  Original Tranche B Lenders

  	
   

  	
  Tranche B Commitments

  €

  
	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  30,000,000

  
	
   

  	
   

  	
   

  
	
  Danske Bank A/S

  	
   

  	
  23,000,000

  
	
   

  	
   

  	
   

  
	
  ING Bank

  	
   

  	
  23,000,000

  
	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  23,000,000

  
	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken AB (publ)

  	
   

  	
  23,000,000

  
	
   

  	
   

  	
   

  
	
  HSBC Bank Plc

  	
   

  	
  10,000,000

  
	
   

  	
   

  	
   

  
	
  FIH Erhvervsbank A/S

  	
   

  	
  6,000,000

  
	
   

  	
   

  	
   

  
	
  Natexis Banques Populaires

  	
   

  	
  6,000,000

  
	
   

  	
   

  	
   

  
	
  Nykredit Bank A/S

  	
   

  	
  6,000,000

  
	
   

  	
   

  	
   

  
	
  Total Tranche B Commitments

  	
   

  	
  euro

  	
  150,000,000

  

 

77

 

SCHEDULE 2

 

CONDITIONS PRECEDENT DOCUMENTS

 

TO BE DELIVERED BEFORE THE FIRST REQUEST

 

Obligors

 

1.                                       A copy of the constitutional documents of each Obligor.

 

2.                                       A copy of a resolution of the board of directors of each Obligor
approving the terms of, and the transactions contemplated by, this Agreement.

 

3.                                       A specimen of the signature of each person authorised on behalf of
an Obligor to execute or witness the execution of any Finance Document or to
sign or send any document or notice in connection with any Finance Document.

 

4.                                       A certificate of an authorised signatory of the Company certifying
that each copy document specified in this Schedule is correct, complete
and in full force and effect as at a date no earlier than the date of this
Agreement.

 

5.                                       Evidence that the agent of the Obligors under the Finance Documents
for service of process in England and Wales has accepted its appointment.

 

6.                                       A certificate of the Secretary and/or or Assistant Secretary of Alfa
Laval U.S. Treasury Inc. certifying, among other things, that that the copy of
its constitutional documents and the resolution of its board of directors
specified in this Schedule are correct, complete and in full force and
effect.

 

7.                                       Evidence of good standing of Alfa Laval U.S. Treasury Inc. under the
laws of its jurisdiction of incorporation.

 

Legal opinions

 

1.                                       A legal opinion of Gernandt & Danielsson, legal advisers in
Sweden to the Mandated Lead Arranger and Facility Agent, addressed to the
Finance Parties.

 

2.                                       A legal opinion of Allen & Overy, New York, legal advisers in
the State of New York to the Mandated Lead Arranger and the Facility Agent,
addressed to the Finance Parties.

 

3.                                       A legal opinion of Allen & Overy, legal advisers in England to
the Mandated Lead Arranger and the Facility Agent, substantially in the form of
Schedule 8 (Form of legal opinion of Allen & Overy), addressed to the
Finance Parties.

 

Other
documents and evidence

 

1.                                       Evidence that the Existing Facility will be prepaid and cancelled in
full on or by the first Utilisation Date.

 

78

 

2.                                       Evidence satisfactory to the Mandated Lead Arranger that the
existing subordination arrangements in respect of the Senior Notes Guarantee
remain effective to subordinate the Senior Notes Guarantee to the Facility.

 

3.                                       A Compliance Certificate to confirm that the financial covenants
contained in Clause 19 (Financial Covenants) would be met on the date of this
Agreement and to determine the applicable Margin as at the first Utilisation
Date.

 

4.                                       Evidence satisfactory to the Mandated Lead Arranger that the Funding
Loan has been subordinated to the Facility.

 

79

 

SCHEDULE 3

 

FORM OF REQUEST

 

To:                              [SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ)] as
Facility Agent

 

From:                  [                               ]

 

Date:                    [                               ]

 

Alfa Laval Treasury International AB/

Alfa Laval U.S. Treasury Inc. - Credit Agreement

dated [          ],
2004 (the Agreement)

 

1.                                       We refer to the Agreement. 
This is a Request.

 

2.                                       We wish to borrow a Loan on the following terms:

 

(a)                                  Utilisation Date:
[                               ]

 

(b)                                 Amount/currency:
[                                         ]

 

(c)                                  Term:
[                                         ].

 

3.                                       Our payment instructions are:
[                                    ].

 

4.                                       We confirm that each condition precedent under the Agreement which
must be satisfied on the date of this Request is so satisfied.

 

5.                                       This Request is irrevocable.

 

By:

 

[                               ]

 

80

 

SCHEDULE 4

 

CALCULATION OF
THE MANDATORY COST

 

1.                                      General

 

The Mandatory Cost is the weighted average of
the rates for each Lender calculated below by the Facility Agent on the first
day of a Term.  The Facility Agent must
distribute each amount of Mandatory Cost among the Lenders on the basis of the
rate for each Lender.

 

2.                                      For a Lender lending from a Facility Office in the U.K.

 

(a)                                  The relevant rate for a Lender lending from a Facility Office in the
U.K. is calculated in accordance with the following formulae:

 

for a Loan in Sterling:

 

AB + C(B-D) + E x 0.01 per cent. per annum

100-(A + C)

 

for any other Loan:

 

E x 0.01 per cent. per annum

300

 

where on the day of application of the
formula:

 

A                                      is the percentage of that Lender’s eligible liabilities (in excess
of any stated minimum) which the Bank of England requires it to hold on a
non-interest-bearing deposit account in accordance with its cash ratio
requirements;

 

B                                        is LIBOR for that Term;

 

C                                        is the percentage of that Lender’s eligible liabilities which the
Bank of England requires it to place as a special deposit;

 

D                                       is the interest rate per annum allowed by the Bank of England on a
special deposit; and

 

E                                         is the charge payable by each Lender to the Financial Services
Authority under the fees rules (but, for this purpose, ignoring any minimum fee
required under the fees rules) and expressed in pounds per £1 million of the
tariff base of that Lender.

 

(b)                                 For the purposes of this paragraph 2:

 

(i)                                     “eligible liabilities” and “special deposit” have the meanings given
to them at the time of application of the formula by the Bank of England;

 

(ii)                                  “fees rules” means the then current rules on periodic fees in the
Supervision Manual of the FSA Handbook; and

 

81

 

(iii)                               “tariff base” has the meaning given to it in the fees rules.

 

(c)                                  (i)                                     In the application of the formulae, A, B, C and D are included as
figures and not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated
as 0.5 x 15.  A negative result obtained
by subtracting D from B is taken as zero.

 

(ii)                                  Each rate calculated in accordance with a formula is, if necessary,
rounded upward to four decimal places.

 

(d)                                 (i)                                     Each Lender must supply to the Facility Agent the information
required by it to make a calculation of the rate for that Lender.  The Facility Agent may assume that this
information is correct in all respects.

 

(ii)                                  If a Lender fails to do so, the Facility Agent may assume that the
Lender’s obligations in respect of cash ratio deposits, special deposits and
the fees rules are the same as those of a typical bank from its jurisdiction of
incorporation with a Facility Office in the same jurisdiction as its Facility
Office.

 

(iii)                               The Facility Agent has no liability to any Party if its calculation
over or under compensates any Lender.

 

3.                                      For a Lender lending from a Facility Office in a Participating
Member State

 

(a)                                  The relevant rate for a Lender lending from a Facility Office in a
Participating Member State is the percentage rate per annum notified by that
Lender to the Facility Agent as its cost of complying with the minimum reserve
requirements of the European Central Bank.

 

(b)                                 If a Lender fails to specify a rate under paragraph (a) above,
the Facility Agent will assume that the Lender has not incurred any such cost.

 

4.                                      Changes

 

The Facility Agent may, after consultation
with the Company and the Lenders, notify all the Parties of any amendment to
this Schedule which is required to reflect:

 

(a)                                  any change in law or regulation; or

 

(b)                                 any requirement imposed by the Bank of England, the Financial
Services Authority or the European Central Bank (or, in any case, any successor
authority).

 

Any notification will be, in the absence of
manifest error, conclusive and binding on all the Parties.

 

82

 

SCHEDULE 5

 

FORM OF TRANSFER CERTIFICATE

 

To:                              [ SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ)] as
Facility Agent

 

From:                  [THE EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)

 

Date:                    [                              ]

 

Alfa Laval Treasury International AB/

Alfa Laval U.S. Treasury Inc. - Credit Agreement

dated [          ],
2004 (the Agreement)

 

We refer to the Agreement.  This is a Transfer Certificate.

 

1.                                       The Existing Lender transfers by novation to the New Lender the
Existing Lender’s rights and obligations referred to in the Schedule below
in accordance with the terms of the Agreement.

 

2.                                       The proposed Transfer Date is [   
].

 

3.                                       The administrative details of the New Lender for the purposes of the
Agreement are set out in the Schedule.

 

4.                                       This Transfer Certificate is governed by English law.

 

83

 

THE SCHEDULE

 

Rights and obligations to be transferred by novation

[insert relevant details, including
applicable Commitment (or part)]

 

Administrative details of the New Lender

[insert details of Facility Office, address
for notices and payment details etc.]

 

 

	
  [EXISTING LENDER]

  	
   

  	
  [NEW LENDER]

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  The Transfer Date is confirmed by the
  Facility Agent as

  	
   

  	
   [                                   ].

  
	
   

  	
   

  	
   

  
	
  [AGENT]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  

 

84

 

SCHEDULE 6

 

FORM OF COMPLIANCE CERTIFICATE

 

To:                              [ SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ)] as
Facility Agent

 

From:                  Alfa Laval AB (publ)

 

Date:                    [                               ]

 

Alfa Laval Treasury International AB/

Alfa Laval U.S. Treasury Inc. - Credit Agreement

dated [          ], 2004 (the
Agreement)

 

1.                                       We refer to the Agreement. 
This is a Compliance Certificate.

 

2.                                       We confirm that as at [relevant testing date]:

 

(a)                                  Net Debt was
[                             ]
and EBITDA was [                       ];
therefore the ratio of Net Debt to EBITDA was
[                          ]
to 1;

 

(b)                                 EBITDA was
[                          ]
and Total Interest Expenses was
[                          ];
therefore the ratio of EBITDA to Total Interest Expenses was
[                          ];
and

 

(c)                                  Net Debt was
[                 ]
and Equity was
[                 ];
therefore the ratio of Net Debt to Equity was
[                 ].

 

3.                                       We set out below calculations establishing the figures in paragraph
2 above:

 

[                        ].

 

4.                                       [We confirm that no Default is outstanding as at [relevant testing
date].(1)

 

Alfa Laval AB (publ)

 

	
  By:

  	
   

  	
  By:

  

 

[insert applicable certification language]

 

	
  for

  	
   

  	
   

  

 

[auditors of the Parent](2)

 

(1)                                  If this statement cannot be made, the certificate should identify
any Default that is outstanding and the steps, if any, being taken to remedy
it.

(2)                                  If tested annually, only include in certificate with annual
accounts.

 

85

 

SCHEDULE 7

 

FORM OF RESIGNATION REQUEST

 

To:                              [ SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ)] as
Facility Agent

 

From:                  Alfa Laval Treasury International AB and [relevant Obligor]

 

Date:                    [                                 ]

 

Alfa Laval Treasury International AB/

Alfa Laval U.S. Treasury Inc. - Agreement

dated [          ],
2004 (the  Agreement)

 

1.                                       We refer to the Agreement. 
This is a Resignation Request.

 

2.                                       We request that [resigning Obligor] be released from its obligations
as [a/an](3) [Obligor/Borrower/Guarantor](1) under the Agreement.

 

3.                                       We confirm that no Default is outstanding or would result from the
acceptance of this Resignation Request.

 

4.                                       We confirm that as at the date of this Resignation Request no amount
owed by [resigning Obligor] under the Agreement is outstanding.

 

5.                                       This Resignation Request is governed by English law.

 

Alfa Laval Treasury International AB                                          [Relevant Obligor]

 

	
  By:

  	
   

  	
  By:

  

 

 

The Facility Agent confirms that this
resignation takes effect on
[                                 ].

 

[SEB Merchant Banking, Skandinaviska Enskilda
Banken AB (publ)]

 

By:

 

86

 

SCHEDULE 8

 

FORM OF LEGAL OPINION OF ALLEN & OVERY

 

 

To:                              The Finance Parties named as original parties

 

to the Agreement (as defined below).

 

[DATE]

 

Dear Sirs,

 

Alfa Laval Treasury International AB/

Alfa Laval U.S. Treasury Inc. - Credit Agreement

dated [          ],
2004 (the Agreement)

 

We have received instructions from the
Facility Agent in connection with the Agreement.

 

Words defined in the Agreement have the same meaning
when used in this opinion.

 

Subject to the qualifications set out below
and to any matters not disclosed to us, we are of the opinion that, so far as
the present laws of England are concerned, the Agreement constitutes a legally
binding, valid and enforceable obligation of each Obligor.

 

The qualifications to which this opinion is
subject are as follows:

 

(a)                                  We assume that the Agreement has been duly authorised and entered
into by each party to it.

 

(b)                                 This opinion is subject to all insolvency and other laws affecting
the rights of creditors generally.

 

(c)                                  We assume that no foreign law affects the conclusions stated
above.  We assume, in particular, that,
so far as the laws of the State of Delaware, the laws of Sweden and the federal
laws of the United States of America are concerned, the Agreement constitutes a
legally binding, valid and enforceable obligation of each Obligor.  In this regard we have relied on copies of
the legal opinions referred to in Schedule 2 to the Agreement.

 

(d)                                 The term enforceable means that a document is of a
type and form enforced by the English courts. 
It does not mean that each obligation will be enforced in accordance
with its terms.  Certain rights and
obligations of an Obligor may be qualified by the non-conclusivity of
certificates, doctrines of good faith and fair conduct, the availability of
equitable remedies and other matters.

 

This opinion is given for your sole benefit
and may not be relied upon by or disclosed to any other person.

 

Yours faithfully,

 

87

 

SIGNATORIES

 

 

Parent

 

	
  ALFA LAVAL AB (publ)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

Company

 

	
  ALFA LAVAL TREASURY INTERNATIONAL AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

Borrowers

 

	
  ALFA LAVAL TREASURY INTERNATIONAL AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

	
  ALFA LAVAL U.S. TREASURY INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

Guarantors

 

	
  ALFA LAVAL AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

	
  ALFA LAVAL SPECIAL FINANCE AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

88

 

	
  ALFA LAVAL HOLDING AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. NORLANDER

  	
   

  
				

 

 

Mandated Lead
Arranger

 

	
  SEB MERCHANT BANKING, SKANDINAVISKA
  ENSKILDA BANKEN AB (publ)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
   

  
				

 

 

Original
Lenders

 

	
  SKANDINAVISKA ENSKILDA BANKEN AB (publ)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
   

  
				

 

 

	
  DANSKE BANK A/S

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

	
  NORDEA BANK AB (publ)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

	
  SVENSKA HANDELSBANKEN AB (publ)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

	
  HSBC BANK PLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

	
  ING BANK

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

89

 

	
  FIH ERHVERVSBANK A/S

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

	
  NATEXIS BANQUES POPULAIRES

  
	
   

  	
   

  	
   

  
	
  By:

  	
  F. THEFO

  	
  N. HILL

  
					

 

 

	
  NYKREDIT BANK A/S

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND (by Power of Attorney)

  
				

 

 

Facility
Agent

 

	
  SEB MERCHANT BANKING, SKANDINAVISKA
  ENSKILDA BANKEN AB (publ)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  
					

 

90Exhibit 4.8

 

CONFORMED COPY

 

Dated 15 April, 2004

 

 

ALFA
LAVAL SPECIAL FINANCE AB

as Intra-Group Creditor

 

ALFA LAVAL HOLDING AB

as Intra-Group Debtor

 

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA
BANKEN AB (publ)

as Facility Agent

 

THE BANKS AND OTHER FINANCIAL INSTITUTIONS

LISTED IN SCHEDULE 1

as Lenders

 

 

 

INTERCREDITOR AGREEMENT

 

 

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  RANKING
  OF DEBT

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  FUNDING
  LOAN

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  SUBORDINATION ON INSOLVENCY

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  APPLICATION OF RECOVERIES

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  PROTECTION OF SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  CHANGES TO PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  GOVERNING LAW AND SUBMISSION TO
  JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The
  Lenders

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Form of Lender Accession Deed

  	
   

  
				

 

 

THIS AGREEMENT is
made on 15 April, 2004

 

BETWEEN:-

 

(1)                                  ALFA
LAVAL SPECIAL FINANCE AB as intra-group creditor (the “Intra-Group Creditor”);

 

(2)                                  ALFA LAVAL HOLDING AB (formerly Alfa Laval
Credit Finance AB)  as intra-group
debtor (the “Intra-Group Debtor”);

 

(3)                                  SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) as facility agent
for and on behalf of the Lenders (in this capacity, the “Facility Agent”); and

 

(4)                                  THE BANKS AND FINANCIAL INSTITUTIONS listed
in Schedule 1 (the “Lenders”)

 

NOW IT IS HEREBY AGREED
as follows:-

 

1.                                      INTERPRETATION

 

1.1                                 Definitions: In this Agreement, unless the
context otherwise requires, the following expressions have the following
meanings:-

 

“Debt” means all money and liabilities now
or in the future due, owing or incurred to any Lender by any Obligor under the
Facilities Agreement in any currency whether actual or contingent, whether
incurred solely or jointly with any other person and whether as principal or
surety together with all accruing interest and all related costs, charges and
expenses;

 

“Declared Default” means a Default which has
resulted in the Facility Agent exercising its rights under Clause 21.13(a)
and/or (b)(i) (Acceleration) of
the Facilities Agreement;

 

“Default” and “Event of Default” each having the same meaning as in the
Facilities Agreement;

 

“Discharge Date” means the date on which all
Debt has been fully and irrevocably discharged and all commitments of the
Lenders to the Obligors have come to an end in accordance with the Facilities
Agreement provided that the contingent risk of clawback flowing from a
preference or similar claim under insolvency legislation shall be disregarded
in determining whether the Debt has been so discharged;

 

“Enforcement
Actions” means any action whatsoever to:-

 

(a)                                  demand payment, declare prematurely due and payable or otherwise
seek to accelerate payment of or place on demand all or any part of the Funding
Loan;

 

(b)                                 recover all or any part of the Funding Loan (including by exercising
any right of set-off or combination of accounts);

 

(c)                                  petition for (or take any other steps which may lead to) an
Insolvency Event or the appointment of a receiver or manager or equivalent in
relation to the Intra-Group Debtor; or

 

(d)                                 commence legal proceedings against the Intra-Group Debtor.

 

“Facilities Agreement” means the credit
agreement dated on or about the date of this Agreement between among others (1)
Alfa Laval AB, (2) the Borrowers (as defined therein), (3) the Lenders and (4)
the Facility Agent (as defined therein) under which the Lenders agreed to make
available credit facilities of up to U.S.$325,000,000 and €150,000,000
respectively to the Borrowers as amended, amended and restated and/or
supplemented from time to time;

 

1

 

“Funding Loan” means the loan of
€220,000,000 made by the Intra-Group Creditor to the Intra-Group Debtor on 22nd
August, 2000;

 

“Group Company”, “Obligors” and “Majority
Lenders” each have the meaning given to it in the Facilities
Agreement;

 

“Insolvency Event” means a court making a
winding up order (other than a winding up on a solvent basis approved by the
Majority Lenders) or an order for the dissolution or liquidation of the
Intra-Group Debtor or a liquidator or administrator or equivalent is appointed
to the Intra-Group Debtor;

 

“Notes”  means
the 121/8% Senior Notes due 2010 issued by Alfa Laval
Special Finance AB;

 

“Payment Default” means a failure by an
Obligor to make payment of any sum (excluding fees, costs or expenses not
exceeding €50,000) under the Facilities Agreement on its due date (taking into
account any applicable grace period);

 

“Transferee” has the meaning given to it in
Clause 8.2(a) (Assignments and Transfers by
Lenders); and

 

“Transferor” has the meaning given to it in
Clause 8.2(a) (Assignments and Transfers by
Lenders).

 

1.2                                 Construction:  In this deed, unless a contrary intention
appears:-

 

(a)                                  a
reference to any person is, where relevant, deemed to be a reference to or to
include, as appropriate, that person’s successors and permitted assignees or
transferees;

 

(b)                                 references
to clauses and schedules are references to, respectively, clauses of and schedules
to this Agreement and references to this Agreement include its schedules;

 

(c)                                  a
reference to (or to any specified provision of) any agreement or document is to
be construed as a reference to that agreement or document (or that provision)
as it may be amended from time to time;

 

(d)                                 a
reference to a statute, statutory instrument or accounting standard or any
provision thereof is to be construed as a reference to that statute, statutory
instrument or accounting standard or such provision thereof, as it may be
amended or re-enacted from time to time;

 

(e)                                  a
time of day is a reference to London time;

 

(f)                                    the
index to and the headings in this Agreement are inserted for convenience only
and are to be ignored in construing this Agreement;

 

(g)                                 words
importing the plural shall include the singular and vice versa; and

 

(h)                                 words
and expressions defined in the Facilities Agreement shall bear the same
meanings when used in this Agreement.

 

1.3                                 Majority
consents:  Any consent
required to be given under this Agreement by the Facility Agent will only be
given upon the instructions of the Majority Lenders unless otherwise specified.

 

2.                                      RANKING OF DEBT

 

The Debt will rank for all purposes and at all time in priority to the
Funding Loan in accordance with the terms of this Agreement.

 

2

 

3.                                      FUNDING LOAN

 

3.1                                 Prohibited
payments and guarantees: Subject to Clause 3.2 (Permitted
Payments) prior to the Discharge Date:-

 

(a)                                  the
Intra-Group Debtor will not make any payments or distributions of any kind
whatsoever in respect of or on account of the Funding Loan; and

 

(b)                                 the
Intra-Group Creditor will not receive any payment or distribution of any kind
whatsoever in respect or on account of the Funding Loan

 

without the prior written consent of the Facility Agent.

 

3.2                                 Permitted
Payments: Subject to Clause 3.3 (Suspension of Permitted
Payments) the Intra-Group Debtor may:-

 

(a)                                  pay
amounts on or in respect of the Funding Loan (including interest or principal)
to enable the Intra-Group Creditor to make the following payments which fall
due under or in respect of the Notes: (i) any scheduled payments, (ii) any
payments of or in respect of principal, interest, premium, Additional Amounts
(as defined in the indenture for the Notes) and amounts payable on account of
taxes in respect of or under the Notes or the indenture for the Notes, and
(iii) any amounts payable to the trustee under the indenture for the Notes.

 

(b)                                 pay
amounts on or in respect of the Funding Loan (including interest or principal)
to enable the Intra-Group Creditor to pay dividends to, or otherwise fund Alfa
Laval AB to enable Alfa Laval AB to pay dividends or otherwise meet any
payments or other liabilities or for other corporate purposes.

 

3.3                                 Suspension
of Permitted Payments:

 

(a)                                  If
a Payment Default occurs no payment or distribution may be made in respect of
the Funding Loan unless and until the Payment Default has been remedied;

 

(b)                                 If
an Event of Default other than a Payment Default occurs, no payment may be made
in respect of the Funding Loan from the date the Facility Agent serves a notice
on the Intra-Group Creditor and the Intra-Group Debtor suspending payments
under the Funding Loan (a “Payment Blockage Notice”)
until the earliest of:

 

(i)                                     the date falling 179
days after service of the Payment Blockage Notice;

 

(ii)                                  the date the Facility
Agent notifies the Intra-Group Creditor and the Intra-Group Debtor that the
Event of Default has been waived or remedied; and

 

(iii)                               the Discharge Date;

 

(c)                                  The
Facility Agent may not serve more than one Payment Blockage Notice in any
period of 365 consecutive days.

 

3.4                                 Restrictions
on Enforcement Action: 
Subject to Clause 3.5 (Permitted Enforcement
Action), prior to the Discharge Date, the Intra-Group Creditor may
not take Enforcement Action without the prior consent of the Facility Agent.

 

3.5                                 Permitted
Enforcement Action:  The
restriction in Clause 3.4 (Restriction on Enforcement
Action) will not apply to the Intra-Group Creditor if:-

 

3

 

(a)                                  an
Insolvency Event has occurred in relation to the Intra-Group Debtor (otherwise
than as a result of action taken by the Intra-Group Creditor) for so long as it
is continuing; or

 

(b)                                 a
default has occurred under the Notes (otherwise than under a cross default
clause which is triggered as a result of a Default); and

 

(i)                                     the Intra-Group
Creditor has notified the Facility Agent in writing of such default;

 

(ii)                                  a period of not less
than 120 days has passed from the date of receipt by the Facility Agent of that
notice of default (a “Standstill Period”);
and

 

(iii)                               at the end of the
Standstill Period the relevant default is continuing and has not been waived.

 

3.6                                 Turnover:
If at any time prior to the Discharge Date:

 

(a)                                  the
Intra-Group Creditor receives or recovers a payment or distribution of any kind
whatsoever in respect of or on account of the Funding Loan which is not
permitted by Clause 3.2 (Permitted Payments);

 

(b)                                 the
Intra-Group Creditor receives or recovers proceeds pursuant to any Enforcement
Action, the Intra-Group’s Creditor will promptly pay all amounts so received
and distributions so received to the Facility Agent for application under
Clause 5.1 (Application) after
deducting therefrom the costs, liabilities and expenses (if any) reasonably
incurred in recovering or receiving such payment or distribution and, pending
such payment or handover, will hold these amounts and distributions on trust
for the Facility Agent.

 

3.7                                 Amendments
to Funding Loan Agreement etc.: Until the Discharge Date, no
amendments may be made to the Funding Loan Agreement except with the prior
consent of the Facility Agent.

 

3.8                                 No
subrogation: The Intra-Group Creditor will not in any circumstances
be subrogated to the rights of the Lenders or any guarantees arising under the
Facilities Agreement.

 

4.                                      SUBORDINATION ON INSOLVENCY

 

4.1                                 Subordination:
Upon the occurrence of an Insolvency Event in relation to the Intra-Group
Debtor, the claims against the Intra-Group Debtor in respect of the Funding
Loan will be subordinate in right of payment to the claims against the
Intra-Group Debtor in respect of the Debt.

 

4.2                                 Exercise of
rights:

 

(a)                                  Upon
the occurrence of an Insolvency Event in relation to the Intra-Group Debtor,
the Facility Agent is irrevocably authorised by the Intra-Group Creditor on its
behalf to:

 

(i)                                     demand, claim,
enforce and prove for;

 

(ii)                                  file claims and
proofs, give receipts and take all such proceedings and do all such things as
the Facility Agent considers reasonably necessary to recover;

 

(iii)                               receive distributions of
any kind whatsoever in respect or on account of;

 

the Funding Loan due from the Intra-Group
Debtor.

 

4

 

(b)                                 If,
for any reason whatsoever, the Facility Agent is not entitled to take such
action for the recovery of any of the Funding Loan, the Intra-Group Creditor
undertakes to take such action and give such notices as the Facility Agent may
reasonably require from time to time.

 

4.3                                 Voting:

 

(a)                                  Upon
the occurrence of an Insolvency Event in relation to the Intra-Group Debtor,
the Facility Agent may and is irrevocably authorised by the Intra-Group
Creditor on its behalf to exercise all powers of convening meetings, voting and
representation in respect of the Funding Loan and the Intra-Group Creditor will
provide all forms of proxy and of representation requested by the Facility
Agent for that purpose.

 

(b)                                 If,
for any reason whatsoever, the Facility Agent is not entitled to take such
action or exercise such powers, the Intra-Group Creditor undertakes to take
such action and exercise such powers as the Facility Agent may reasonably
requires from time to time.

 

4.4                                 Distribution:
Upon the occurrence of an Insolvency Event in relation to the Intra-Group
Debtor, the trustee in bankruptcy, liquidator, assignee or other person
distributing the assets of the Intra-Group Debtor or their proceeds shall be
directed by the Intra-Group Creditor to pay distributions of any kind in
relation to the Funding Loan direct to the Facility Agent until the Debt is
paid in full.

 

5.                                      APPLICATION OF RECOVERIES

 

5.1                                 Application:
All amounts paid to the Facility Agent under this Agreement whether under the
turnover provisions or otherwise shall be applied in the following order:

 

(a)                                  first,
in payment of unpaid fees, costs and expenses incurred by or on behalf of the
Facility Agent (and any adviser or agent appointed by it) and the remuneration
of the Facility Agent and its advisers and agents;

 

(b)                                 second,
in payment to the Facility Agent for application towards unpaid and outstanding
Debt under the Finance Documents;

 

(c)                                  third,
in payment to the Intra-Group Creditor for application towards unpaid and
outstanding amounts under the Funding Loan;

 

and pending such application shall be held on trust by the Facility
Agent for the beneficiaries entitled to it.

 

5.2                                 Appropriations:
Each Lender until the Discharge Date may (subject in each case to the
provisions of this Agreement and the Facilities Agreement):-

 

(a)                                  apply
any moneys received under this Agreement to any item of account or liability in
respect of the Debt in such order or manner as it may determine; and

 

(b)                                 hold
any moneys received under this Agreement in a suspense account (bearing
interest at a market rate usual for accounts of that type) unless and until
such moneys are sufficient in aggregate in order to bring about the Discharge
Date.

 

6.                                      PROTECTION OF SUBORDINATION

 

6.1                                 Continuing
subordination: The subordination provisions in this Agreement
constitute a continuing subordination and benefit to the ultimate balance of
the Debt respectively regardless of any intermediate payment or discharge of
the Debt whether in whole or in part.

 

5

 

6.2                                 Waiver of
defence: The subordination and priority provisions in this Agreement
will not be affected by any act, omission or circumstance which (but for this
provision) may operate to release or otherwise exonerate the Intra-Group Debtor
and the Intra-Group Creditor from their obligations under this Agreement or
otherwise affect such subordination and priority provisions including:

 

(a)                                  any
time or indulgence granted to or composition with the Intra-Group Debtor or any
other person; or

 

(b)                                 the
taking, amendment, compromise, renewal or release of or refusal to enforce any
rights, remedies or securities against or granted by any person; or

 

(c)                                  any
legal limitation, disability, incapacity or other circumstances relating to the
Intra-Group Creditor, Intra-Group Debtor or any other person or any amendment
to the terms of this Agreement or any other document or security (including the
Facilities Agreement); or

 

(d)                                 any
fluctuation in or partial repayment or prepayment of the Debt.

 

7.                                      NOTICES

 

7.1                                 Mode of
service:

 

(a)                                  Except
as specifically provided otherwise in this Agreement, any notice, demand,
consent, agreement or other communication (a “Notice”)
to be served under or in connection with this Agreement will be in writing and
will be made by letter or by facsimile transmission to the party to be served.

 

(b)                                 The
address and facsimile number of each party to this Agreement for the purpose of
Clause 7.1(a) are:

 

(i)                                     the address and
facsimile number shown immediately after its name on the signature pages of
this Agreement (in the case of any person who is a party as at the date of this
Agreement);

 

(ii)                                  the address and
facsimile number notified by that party for this purpose to the Facility Agent
on or before the date it becomes a party to this Agreement (in the case of any
person who becomes a party after the date of this Agreement); or

 

(iii)                               any other address and
facsimile number notified by that party for this purpose to the Facility Agent
by not less than five Business Days’ notice.

 

(c)                                  Any
Notice to be served by any party to this Agreement on a Lender will be
effective only if it is expressly marked for the attention of the department or
office (if any) specified in conjunction with the relevant address and
facsimile number referred to in Clause 7.1(b).

 

7.2                                 Deemed
Service:

 

(a)                                  Subject
to Clause 7.2(b), a Notice will be deemed to be given as follows:

 

(i)                                     if by letter, when
delivered personally or on actual receipt; and

 

(ii)                                  if by facsimile, when
delivered.

 

(b)                                 A
Notice given under Clause 7.2(a) but received on a non-working day or after
business hours in the place or receipt will only be deemed to be given on the
next working day in that place.

 

6

 

8.                                      CHANGES TO PARTIES

 

8.1                                 Assignment
and Transfers by Intra-Group Debtor or Intra-Group Creditor: The
Intra-Group Debtor and Intra-Group Creditor may not assign or transfer all or
any part of its rights, benefits or obligations under this Agreement.

 

8.2                                 Assignments
and Transfers by Lenders:

 

(a)                                  A Lender, or any
successor or assignee of a Lender, (in this capacity the “Transferor”)
may at any time assign all or any part or its rights under this Agreement or
transfer any part of its rights and obligations under this Agreement to any
person (a “Transferee”) to whom a Transferor is permitted to assign or transfer rights,
benefits and obligations under the Facilities Agreement.

 

(b)                                 Such
assignment or transfer will only be effective by the Facility Agent executing a
Lender accession deed in the form attached hereto as Schedule 2 (the “Lender Accession Deed”), duly completed and signed on behalf
of the Transferee under which the Transferee agrees to be bound by all of the
terms of this Agreement as if it had originally been party to this Agreement as
a Lender.

 

(c)                                  Each
of the parties to this Agreement (other than the Transferee) irrevocably
authorises the Facility Agent to execute on its behalf any Lender Accession
Deed which has been duly completed and executed on behalf of the Transferee.

 

(d)                                 The
Facility Agent will promptly notify the other parties to this Agreement of the
receipt and execution by it on their behalf of any Lender Accession Deed.

 

9.                                      GOVERNING LAW AND SUBMISSION TO
JURISDICTION

 

9.1                                 Governing
Law: This Agreement (and any dispute, controversy, proceedings or
claim of whatever nature arising out of or in any way relating to this
Agreement) shall be governed by, and construed in accordance with, English law.

 

9.2                                 Submission
to Jurisdiction: For the benefit of each party to this Agreement,
each other party to this Agreement irrevocably submits to the jurisdiction of
the courts in England for the purpose of hearing and determining any dispute
arising out of this Agreement and for the purpose of enforcement of any
judgement against its assets.

 

9.3                                 Freedom of
Choice: The submission to the jurisdiction of the courts referred to
in Clause 9.2 (Submission of Jurisdiction) shall
not (and shall not be construed so as to) limit the right of the Facility Agent
or any Lender to take proceedings against the Intra-Group Creditor or the
Intra-Group Debtor in any other court of competent jurisdiction nor shall the
taking of proceedings in any one or more jurisdictions preclude the taking of
proceedings in any other jurisdiction (whether concurrently or not) if and to
the extent permitted by applicable law.

 

9.4                                 Service of
Process: Without prejudice to any other permitted mode of service,
each of the Intra-Group Creditor and the Intra-Group Debtor agrees that service
of any claim form, notice or other document for the purpose of any proceedings
in such courts shall be duly served upon it if delivered or sent by registered
post to Alfa Laval Limited, Alfa Laval House, Doman Road, Camberley, Surrey
GU15 3DN or such other address in England or Wales as the relevant company may
notify from time to time to the Facility Agent.

 

7

 

10.                               MISCELLANEOUS

 

10.1                           Certificate
conclusive: A certificate, determination, notification or opinion of
the Facility Agent stipulated for in this Agreement as to any rate of interest
or any other amount payable under this Agreement will be prima facie evidence
of such matter.

 

10.2                           No implied
waivers:

 

(a)                                  No
failure or delay by any Lender in exercising any right, power or privilege
under this Agreement will operate as a waiver of that right, power or
privilege, nor will any single or partial exercise or any right, power or
privilege preclude any other or further exercise of that right, power or
privilege, or the exercise of any other right, power or privilege.

 

(b)                                 The
rights and remedies provided in this Agreement are cumulative and not exclusive
of any rights and remedies provided by law and all those rights and remedies
will, except where expressly provided otherwise in this Agreement, be available
to the Lenders severally and any Lender shall be entitled to commence proceedings
in connection with those rights and remedies in its own name.

 

(c)                                  A
waiver given or consent granted by any Lender under this Agreement will be
effective only if given in writing and then only in the instance and for the
purpose for which it is given.

 

10.3                           Invalidity
of any provision: If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect under any law, the validity,
legality and enforceability or the remaining provisions shall not be affected
or impaired in any way.

 

10.4                           Counterparts:
This Agreement may be executed in any number of counterparts and all of those
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

10.5                           Perpetuity
Period: The perpetuity period applicable to the trusts created by
this Agreement is 80 years.

 

10.6                           Failure to
execute: Failure by one or more parties (“Non-Signatories”)
to execute this Agreement on the date of this Agreement will not invalidate the
provisions of this Agreement as between the other parties who do execute this
Agreement.  Such Non-Signatories may
execute this Agreement (or counterpart of this Agreement) on a subsequent date
and will thereupon become bound by its provisions.

 

10.7                           Third party
rights: The Contracts (Rights of Third Parties) Act 1999 shall not
apply to this Agreement and no person other than the parties to this Agreement
shall have any rights under it, nor shall it be enforceable under that Act by
any person other than the parties to it.

 

10.8                           Termination:
This Agreement will terminate with effect from the earlier of the Discharge
Date and the date on which the Notes are redeemed in full in accordance with
and subject to the terms of this Agreement.

 

IN WITNESS whereof
this Agreement has been duly executed the day and year first before written.

 

8

 

SCHEDULE 1

 

The
Lenders

 

Skandinaviska Enskilda Banken AB (publ)

 

Danske Bank A/S

 

ING Bank

 

Nordea Bank AB (publ)

 

Svenska Handelsbanken AB (publ)

 

HSBC Bank Plc

 

FIH Erhvervsbank A/S

 

Natexis Banques Populaires

 

Nykredit Bank A/S

 

9

 

SCHEDULE 2

 

Form of Lender Accession Deed

 

THIS DEED is made on
[•]

 

BETWEEN:-

 

(1)                                  [!]
(the “New Lender”);

 

(2)                                  SEB Merchant Banking, Skandinaviska Enskilda Banken AB
(publ) in its capacity as Facility Agent under the Intercreditor
Agreement.

 

RECITAL:-

 

(A)                              This
Deed is supplemental to an Intercreditor Agreement dated
         , 2004  between, Alfa Laval Special Finance AB as
Intra-Group Creditor, Alfa Laval Holding AB (formerly Alfa Laval Credit Finance
AB) as Intra-Group Debtor, the Facility Agent and the Lenders (each as defined
therein) (the “Intercreditor Agreement
“).

 

(B)                                This
Deed has been entered into to record the accession of the New Lender as a
Lender under the Intercreditor Agreement pursuant to the provisions of Clause
8.2 (Assignments and Transfers by Lenders)
thereof.

 

NOW THIS DEED WITNESSES
as follows:-

 

1.                                       Definitions

 

Terms defined in the Intercreditor Agreement shall have the same meaning
when used in this Deed.

 

2.                                       Accession of New Lender

 

2.1                                 The
New Lender hereby agrees to become, with immediate effect, a Lender and agrees
to be bound by all of the terms of the Intercreditor Agreement as if it had
originally been party thereto as a Lender thereunder.

 

2.2                                 The
New Lender confirms that its
address details for notices in relation to Clause 7 (Notices) of the Intercreditor Agreement are as follows:-

 

	
  Address:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  [•]

  

 

2.3                                 By
its signature below, the Facility Agent (for itself and on behalf of the other
parties to the Intercreditor Agreement other than the New Lender) confirms the
acceptance of the New Lender as a Lender for all purposes under the
Intercreditor Agreement in accordance with Clause 8.2 (Assignments and Transfers by Lenders)
thereof.

 

3.                                       Law

 

This
Deed shall be governed by and construed in all respects in accordance with
English law.

 

10

 

4.                                       Counterparts

 

The Deed may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

5.                                       Third Party Rights

 

A person who is not a party to this Deed has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of
any terms of this Deed.

 

IN WITNESS whereof
this Deed has been duly executed the day and year first before written.

 

The New Lender

 

	
  EXECUTED as a Deed by

  	
  )

  
	
   

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
  )

  
	
   

  
	
   

  
	
  Director

  	
   

  	
   

  
	
   

  
	
   

  
	
  Director/Secretary

  	
   

  	
   

  
						

 

 

	
  The Facility Agent

  
	
   

  
	
  EXECUTED as a Deed by

  	
  )

  
	
  SEB MERCHANT BANKING, SKANDINAVISKA 

  	
  )

  
	
  ENSKILDA BANKEN AB (publ)

  	
  )

  
	
   

  	
   

  
	
  acting by

  	
  )

  
	
  and

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  Director

  	
   

  	
   

  
	
   

  
	
   

  
	
  Director/Secretary

  	
   

  	
   

  
						

 

11

 

	
  The Intra-Group Creditor

  
	
   

  
	
  ALFA LAVAL
  SPECIAL FINANCE AB

  
	
   

  
	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. AHLGREN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Intra-Group Debtor

  
	
   

  
	
  ALFA LAVAL
  HOLDING AB

  
	
   

  
	
   

  
	
  By:

  	
  T. THURESSON

  	
  J. AHLGREN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Facility Agent

  
	
   

  
	
  SEB MERCHANT
  BANKING, SKANDINAVISKA

  ENSKILDA BANKEN AB (publ)

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Lenders

  
	
   

  
	
  SKANDINAVISKA ENSKILDA BANKEN AB (publ)

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DANSKE BANK A/S

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ING BANK

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  

 

12

 

	
  NORDEA BANK AB (publ)
  

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
	
   

  	
   

  
	
   

  	
   

  
	
  SVENSKA HANDELSBANKEN AB (publ)

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  HSBC BANK Plc

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FIH ERHVERVSBANK A/S

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NATEXIS BANQUES
  POPULAIRES

  
	
   

  
	
   

  
	
  By:

  	
  F. THEFO

  	
  N. HILL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NYKREDIT BANK
  A/S

  
	
   

  
	
   

  
	
  By:

  	
  J. LUND

  	
  S. TUVLIND

  	
  (by Power of Attorney)

  
					

 

13

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