Document:

Exhibit
4.3

 

CONFORMED COPY

 

THIS AMENDMENT AND
RESTATEMENT AGREEMENT is dated 27 June 2007 and made between:

 

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

 

(2)                               ABB AND THE SUBSIDIARIES OF ABB listed in Schedule 1 (The
Obligors) as borrowers and guarantors (the Obligors);

 

(3)                               CREDIT SUISSE in
its capacity as facility agent and for and on behalf of the Finance Parties
(the Facility Agent);

 

IT IS AGREED as follows:

 

1.                                      INTERPRETATION

 

1.1                               In this Agreement:

 

Amendment Fee Letter means the fee letter dated on or around
the date hereof from ABB to the Facility Agent relating to the fee referred to
in Clause 6(b).

 

Effective Date means the date of this
Agreement.

 

Facilities Agreement means the multicurrency revolving credit
agreement dated 4 July 2005 between among others, ABB, the Facility Agent, and the financial institutions named therein
as lenders as amended from time to time.

 

Unless
otherwise defined herein, words and expressions defined in the Facilities
Agreement (in its form set out in Schedule 2 (Amended and
Restated Facilities Agreement)) shall have the same meanings in this
Agreement and the principles of construction set out in the Facilities
Agreement (in its form set out in Schedule 2 (Amended and
Restated Facilities Agreement)) shall be deemed incorporated in this
Agreement as if set out in full herein save that references to the Facilities
Agreement shall be construed as references to this Agreement.

 

2.                                      RESTATEMENT

 

With effect from the Effective Date, the
Facilities Agreement shall be amended and restated so that it shall be read and
construed for all purposes as set out in Schedule 2 (Amended and Restated Facilities Agreement).

 

3.                                      REPRESENTATIONS &
WARRANTIES

 

ABB (in respect of itself and, where specified, each Group Company or
each Material Subsidiary) and each other Obligor (in respect of itself) makes
the repeating representations and warranties set out in Clause 19.15 (Repetition) and the representation set out
in Clause 19.7 (No Default) of
the Facilities Agreement (in its form set out in Schedule 2 (Amended and Restated Facilities Agreement)).  For the avoidance of doubt, for this purpose,
references in Clause 19 of the Facilities Agreement to the Finance Documents
shall be construed so as to include a reference to this Agreement and the
Amendment Fee Letter.

 

4.                                      CONTINUITY

 

The provisions of the Facilities Agreement
shall, save as amended by this Agreement, continue in full force and effect.
Each Guarantor confirms its obligations under Clause 18 

 

 

(Guarantee
and Indemnity) of the Facilities Agreement in respect of the
Facilities Agreement as amended and restated pursuant to this Agreement.

 

5.                                      FURTHER
ASSURANCE

 

ABB shall, at the request of the Facility
Agent and at its own expense, do all such acts and things necessary to give
effect to the amendments effected or to be effected pursuant to this Agreement.

 

6.                                      FEES,
COSTS AND EXPENSES

 

(a)                                 ABB shall and promptly on
demand pay, upon presentation of duly documented evidence thereof, to the
Facility Agent the amount of all costs and expenses (including but not limited
to, legal fees) reasonably and directly incurred by the Facility Agent in
connection with the negotiation, preparation and execution of this Agreement.

 

(b)                                 On the date of this Agreement,
ABB shall pay to the Facility Agent, on behalf of the Lenders, the fees in the
amount specified in the Amendment Fee Letter.

 

7.                                      FINANCE
DOCUMENT

 

Each of this Agreement and the Amendment
Fee Letter is a Finance Document.

 

8.                                      COUNTERPARTS

 

This Agreement 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.

 

9.                                      THIRD
PARTY RIGHTS

 

A person who is not a party to this
Agreement has no right under the Contracts (Rights of Third Parties) Act 1999
to enforce or enjoy the benefit of any term of this Agreement.

 

10.                               MISCELLANEOUS

 

The provisions of Clause 34 (Remedies and waivers), Clause 33 (Partial Invalidity), and Clause 38 (Enforcement) of the Facilities Agreement
shall be incorporated into this Agreement as if set out in full in this
Agreement and as if references in those clauses to “this Agreement” or “the
Finance Documents” were references to this Agreement.

 

11.                               GOVERNING
LAW AND JURISDICTION

 

This Agreement shall be governed by, and
construed in accordance with, English law.

 

2

 

SCHEDULE 1

 

THE OBLIGORS

 

	
   

  	
   

  	
   

  	
   

  	
  Jurisdiction
  of

  
	
  Name of Obligor

  	
   

  	
  Address

  	
   

  	
  incorporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Capital
  B.V.

  	
   

  	
  Burgemeester
  Haspelslaan 65, 5/F

  	
   

  	
  Netherlands

  
	
   

  	
   

  	
  PO Box 74690

  	
   

  	
   

  
	
   

  	
   

  	
  Amstelveen

  	
   

  	
   

  
	
   

  	
   

  	
  NL-1181 NB

  	
   

  	
   

  
	
   

  	
   

  	
  Netherlands

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Managing
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 31 20 445
  9844

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal
  Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43
  317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Asea Brown
  Boveri Ltd

  	
   

  	
  Affolternstrasse
  44

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  CH-8050 Zurich

  	
   

  	
   

  
	
   

  	
   

  	
  Switzerland

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  +41 43 317
  3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal
  Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43
  317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Ltd

  	
   

  	
  Affolternstrasse
  44

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  CH-8050 Zurich

  	
   

  	
   

  
	
   

  	
   

  	
  Switzerland

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  +41 43 317
  3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal
  Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: +41 43
  317 7992

  	
   

  	
   

  

 

3

 

SCHEDULE 2

 

AMENDED AND RESTATED FACILITIES AGREEMENT

 

Follows this page

 

4

 

	
  

  	
   

  	
  LIMITED LIABILITY PARTNERSHIP

  

 

 

ABB LTD

 

CERTAIN
SUBSIDIARIES OF ABB LTD

AS
BORROWERS AND GUARANTORS

 

WITH

 

BARCLAYS
CAPITAL

BAYERISCHE
HYPO-UND VEREINSBANK AG

BNP
PARIBAS

CITIGROUP
GLOBAL MARKETS LIMITED

COMMERZBANK
AKTIENGESELLSCHAFT

CREDIT
SUISSE

DEUTSCHE
BANK AG

DRESDNER
KLEINWORT – THE INVESTMENT BANKING DIVISION OF DRESDNER BANK AG (acting 

through DRESDNER BANK AG, NIEDERLASSUNG LUXEMBURG)

HANDELSBANKEN
CAPITAL MARKETS, SVENSKA HANDELSBANKEN AB (publ)

HSBC
BANK PLC

NORDEA
BANK AB (publ)

and

MERCHANT
BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB (PUBL)

 

AS
MANDATED LEAD ARRANGERS

 

with

CREDIT
SUISSE

AS
FACILITY AGENT, DOLLAR SWINGLINE AGENT AND EURO SWINGLINE AGENT

and

MERCHANT
BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB (PUBL)

AS SEK
SWINGLINE AGENT

 

 

$2,000,000,000

MULTICURRENCY
REVOLVING CREDIT AGREEMENT

 

DATED 4
JULY 2005

AS
AMENDED AND RESTATED ON 27 JUNE 2007

 

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions
  And Interpretation

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The
  Facility

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Purpose

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Conditions
  Of Utilisation

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Utilisation

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Optional
  Currencies

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Repayment

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Prepayment
  And Cancellation

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Interest

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Interest
  Periods

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Changes
  To The Calculation Of Interest

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Fees

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Tax
  Gross Up And Indemnities

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Increased
  Costs

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Other
  Indemnities

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Mitigation
  By The Lenders

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Costs
  And Expenses

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Guarantee
  And Indemnity

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Representations

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Information
  Undertakings

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  General
  Undertakings

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Events
  Of Default

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Changes
  To The Lenders

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Changes
  To The Obligors

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Role
  Of The Agents And The Mandated Lead Arrangers

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Conduct
  Of Business By The Finance Parties

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Sharing
  Among The Lenders

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Payment
  Mechanics

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Set-Off

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  Notices

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Calculations
  And Certificates

  	
  79

  

 

 

	
  32.

  	
   

  	
  Partial
  Invalidity

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Remedies
  And Waivers

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Amendments
  And Waivers

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Counterparts

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Governing
  Law

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  Enforcement

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Part
  I The Original Lenders

  	
  82

  
	
   

  	
   

  	
  Part
  Ii The Dollar Swingline Lenders

  	
  84

  
	
   

  	
   

  	
  Part
  Iii The Euro Swingline Lenders

  	
  86

  
	
   

  	
   

  	
  Part
  Iv The Sek Swingline Lenders

  	
  87

  
	
   

  	
   

  	
  Part
  V The Original Obligors

  	
  88

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  2 CONDITIONS PRECEDENT

  	
  90

  
	
   

  	
   

  
	
   

  	
   

  	
  Part
  I Conditions Precedent

  	
  90

  
	
   

  	
   

  	
  Part
  Ii Additional Obligor Conditions Precedent

  	
  92

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  3 UTILISATION REQUEST

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  4 FORM OF TRANSFER CERTIFICATE

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  5 TIMETABLES

  	
  98

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  6 FORM OF ACCESSION LETTER

  	
  100

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  7 FORM OF RESIGNATION LETTER

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  8 MANDATORY COST

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  9 MATERIAL SUBSIDIARIES

  	
  104

  
						

 

 

THIS AGREEMENT is dated 4 July 2005
(as amended and restated by the terms of an amendment and restatement agreement
dated 27 June 2007) and made between:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

IT IS AGREED as follows:

 

SECTION 1

INTERPRETATION

 

1.                                 DEFINITIONS AND INTERPRETATION

 

1.1                           Definitions

 

In this
Agreement:

 

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

 

1

 

“Additional Borrower” means any wholly owned
Subsidiary of ABB that has become an Additional Borrower in accordance with
Clause 24.2 (Additional Borrowers).

 

“Additional Guarantor” means any wholly
owned Subsidiary of ABB that has become an Additional Guarantor in accordance
with Clause 24.4 (Additional Guarantors).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Base Currency” means Dollars.

 

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

 

3

 

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

 

“Borrower Accession Letter” means a letter
substantially in the form set out in Schedule 6 (Form of Accession Letter).

 

“Borrowers” means each Original Borrower and
each Additional Borrower, provided that
it has not been released from its rights and obligations under this Agreement
in accordance with Clause 24.3 (Resignation
of a Borrower).

 

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

 

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

 

exceeds:

 

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

 

“Business Day”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

“Commitment” means:

 

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

 

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

 

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

 

“Default” means an Event of Default or any
event or circumstance specified in Clause 22 (Events
of Default) which (with the expiry of a grace period or the giving
of any notice specified in Clause 22 (Events
of Default)) would be an Event of Default.

 

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

 

“Dollar Swingline Commitment” means:

 

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

 

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

 

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

 

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

 

“Dollar Swingline Lender” means:

 

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

 

(b)                                     any bank which has become a Party as a Lender in accordance with
Clause 23 (Changes to the Lenders)
and to whom a Dollar Swingline Commitment has been transferred,

 

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

 

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

 

(a)                                      the Prime Rate; and

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)                                      the applicable Screen Rate; or

 

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

 

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

 

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

 

“Euro Swingline
Commitment” means:

 

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

 

(b)                                     in relation to any other Euro Swingline Lender, the amount of any
Euro Swingline Commitment transferred to it under this Agreement, to the extent
not cancelled, reduced or transferred by it under this Agreement.

 

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

 

6

 

“Euro Swingline
Lender” means:

 

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

 

(b)                                     any bank which has become Party as a Lender in accordance with
Clause 23 (Changes to the Lenders)
and to whom a Euro Swingline Commitment has been transferred,

 

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

 

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

 

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

 

(b)                                     the Margin; and

 

(c)                                      the Mandatory Cost (if any).

 

“Event of Default” means any event or circumstance
specified as such in Clause 22 (Events of
Default).

 

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

 

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

 

“Existing Lender” has the meaning given to
that term in Clause 23.1 (Assignments and
Transfers by the Lenders).

 

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

 

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

 

“Facility Office”
means:

 

(a)                                      in relation to a Lender (other than in such Lender’s capacity as a
Dollar Swingline Lender, a Euro Swingline Lender or a SEK Swingline Lender),
the 

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)             moneys borrowed;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

“Lender” means:

 

(a)             any Original Lender; and

 

(b)            any bank which has become a Party as a Lender in
accordance with Clause 23 (Changes to the
Lenders),

 

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

 

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

 

(a)             the applicable Screen Rate; or

 

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

 

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

 

“Majority Lenders”
means a Lender or Lenders:

 

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

 

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

 

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

 

“Mandatory Cost”
means the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 8 (Mandatory Cost).

 

“Margin” means, at any time in relation to
an Advance (other than a Dollar Swingline Advance) 17.5 basis points per annum.

 

10

 

“Material Adverse Effect”
means a material adverse effect on the ability of the Obligors (taken as a
whole) to perform their payment obligations under the Finance Documents.

 

“Material Subsidiary”
shall mean:

 

(a)             as at the date of this Agreement, each Borrower
and any Subsidiary of ABB that is listed in Schedule 9 (Material Subsidiaries); and

 

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

 

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

 

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

 

(iii)      has any notes, bonds, debenture stock, loan
stock or other securities outstanding to non-affiliated third parties in
respect of which a guarantee, keep-well agreement or other credit support has
been provided by ABB,

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

“New Lender”
has the meaning given to that term in Clause 23.1 (Assignment and transfers by the Lenders).

 

“Obligors”
means the Borrowers and the Guarantors.

 

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

 

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

 

“Original Financial
Statements” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Project Company”
means any Subsidiary of ABB:

 

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

 

12

 

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

 

“Project Finance
Indebtedness” means:

 

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

 

(b)            where neither the persons to whom such
Indebtedness is owed (whether or not a Group Company) nor any other person
shall have any recourse whatsoever to any Group Company (other than such
Project Company) for the repayment or payment of any sum relating to such Indebtedness
other than recourse directly or indirectly to any Group Company under any form
of assurance or undertaking, which recourse (1) is limited to the
enforcement of any share pledge granted by a Group Company over its shares in
such Project Company or the enforcement of any security granted over a
shareholder loan between a Group Company and such Project Company and/or (2) is
limited to a claim for damages for breach of an obligation (not being a payment
obligation) of the person against whom that recourse is available and/or (3) entitles
the creditor for that Indebtedness or the relevant Project Company, upon
default by the Project Company (or in other circumstances specified in the
documentation relating to the project) to require a payment to be made (whether
to or for the benefit of that creditor, the Project Company or another person),
provided that, in the case of (3),
where that payment is capable of being for an amount which is material either
alone or as a percentage of the Indebtedness financing that project, such
recourse is capable of being called on only during the period on or prior to
practical completion of the project or of that portion of that project being
financed by that Indebtedness; or

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Screen Rate”
means:

 

14

 

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

 

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

 

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

 

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

 

“Securitisations”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

“SEK Swingline Commitment”
means:

 

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

 

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

 

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

 

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

 

15

 

“SEK Swingline Lender”
means:

 

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

 

(b)            any bank which has become a Party as a Lender in
accordance with Clause 23 (Changes to the
Lenders) and to whom a SEK Swingline Commitment has been
transferred,

 

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

 

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

 

(a)             Margin per annum; and

 

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

 

(c)             the Mandatory Cost (if any).

 

“Specified Time”
means a time determined in accordance with Schedule 5 (Timetables).

 

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

 

(a)             the applicable Screen Rate; or

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Transfer Certificate”
means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any
other form agreed between the Facility Agent and ABB.

 

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

 

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

 

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

 

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

 

“Utilisation”
means a utilisation of the Facility.

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

1.2         Construction

 

(a)             Any reference in this Agreement to:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

1.3         Dutch Terms

 

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

 

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

 

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

 

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

 

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

 

(i)        declared bankrupt (failliet
verklaard);

 

(ii)       dissolved (ontbonden);

 

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

 

(d)            a trustee in bankruptcy includes a curator;

 

(e)             an administrator includes a bewindvoerder;

 

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

 

(g)            an attachment includes a beslag.

 

1.4         Currency
Symbols and Definitions

 

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

 

19

 

1.5         Third Party Rights

 

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

 

20

 

SECTION 2

THE FACILITY

 

 

2.                                 THE FACILITY

 

2.1                           The Facility

 

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

 

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

 

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

 

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

 

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

 

2.2                           Lenders’ rights and obligations

 

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

 

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

 

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

 

2.3                           Facility Offices

 

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

 

21

 

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

 

2.4                           Obligors’ right and obligations hereunder

 

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

 

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

 

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

 

3.                                 PURPOSE

 

3.1                           Purpose

 

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

 

22

 

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

 

3.2                           Monitoring

 

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

 

4.                                 CONDITIONS OF UTILISATION

 

4.1                           Initial conditions precedent

 

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

 

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

 

4.2                           Further conditions precedent

 

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

 

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

 

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

 

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

 

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

 

4.3                           Conditions relating to Optional Currencies

 

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

 

4.4                           Maximum number of Advances

 

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

 

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

 

23

 

SECTION 3

UTILISATION

 

5.                                 UTILISATION

 

5.1                           Delivery of a Utilisation Request

 

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

 

5.2                           Completion of a Utilisation Request

 

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

 

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

 

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

 

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

 

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

 

5.3                           Currency and amount

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

24

 

5.4                           Lenders’ participation

 

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

 

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

 

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

 

5.5                           Delivery of a Utilisation Request for a
Swingline Advance

 

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

 

5.6                           Completion of a Utilisation Request for a
Swingline Advance

 

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

 

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

 

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

 

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

 

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

 

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

 

5.7                           Currency and amount

 

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

 

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

 

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

 

25

 

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

 

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

 

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

 

5.8                           Swingline Lenders’ participation

 

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

 

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

 

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

 

5.9                           Automatic Revolving Advance

 

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

 

26

 

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

 

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

 

6.                                 OPTIONAL CURRENCIES

 

6.1                           Selection of currency

 

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

 

6.2                           Unavailability of a currency

 

If before the Specified Time on any Quotation Day:

 

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

 

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

 

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

 

6.3                           Notification

 

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

 

27

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

 

7.                                 REPAYMENT

 

7.1                           Repayment of Revolving Advances

 

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

 

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

 

8.                                 PREPAYMENT AND CANCELLATION

 

8.1                           Lender Illegality

 

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

 

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

 

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

 

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

 

8.2                           Borrower Illegality

 

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

 

8.3                           Mandatory Prepayment on Change of Control

 

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

 

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

 

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

 

28

 

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

 

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

 

8.4                           Voluntary cancellation

 

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

 

8.5                           Voluntary Prepayment

 

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

 

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

 

(a)                                      If:

 

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

 

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

 

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

 

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

 

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

 

29

 

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

 

8.7                           Restrictions

 

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

 

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

 

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

 

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

 

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

 

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

 

30

 

SECTION 5

COSTS
OF UTILISATION

 

9.           INTEREST

 

9.1         Calculation of interest

 

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

 

(i)        Margin;

 

(ii)       IBOR; and

 

(iii)      Mandatory Cost (if any).

 

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

 

9.2        Payment of interest

 

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

 

9.3        Default interest

 

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

 

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

 

9.4         Notification of rates of interest

 

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

 

9.5         Minimum Interest

 

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

 

31

 

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

 

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

 

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

 

10.         INTEREST PERIODS

 

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

 

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

 

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

 

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

 

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

 

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

 

11.        CHANGES TO THE CALCULATION OF INTEREST

 

11.1      Absence of quotations

 

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

 

32

 

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

 

11.2      Market disruption

 

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

 

(i)        the Margin;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.3      Alternative basis of interest or funding

 

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

 

33

 

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

 

11.4      Break Costs

 

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

 

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

 

12.        FEES

 

12.1      Commitment Fee

 

(a)             ABB shall pay to the Facility Agent (for the account of each
Lender) a commitment fee in the Base Currency computed at 30 per cent. per
annum of the applicable Margin from time to time on that Lender’s Available
Commitment.

 

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

 

12.2      Utilisation Fee

 

(a)             ABB shall pay to the Facility Agent (for the account of the
Lenders pro rata to their Commitments) a utilisation fee in respect of the
Total Outstandings computed at the rate of 0.05 per cent. per annum for each
day that the Total Outstandings are in an amount which is greater than 50 per
cent. of the Total Commitments.  For the
avoidance of doubt, no utilisation fee is payable while the Total Outstandings
are in an amount which is less than or equal to 50 per cent of the Total
Commitments.

 

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

 

12.3      Arrangement Fee

 

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

 

34

 

12.4      Agency Fee

 

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

 

12.5      Amendment Fee

 

ABB shall pay to the Facility Agent (for the
account of each Lender) an amendment fee in the amount and at the times agreed
in a Fee Letter.

 

35

 

SECTION 6

ADDITIONAL
PAYMENT OBLIGATIONS

 

13.        TAX GROSS UP AND INDEMNITIES

 

13.1      Definitions

 

(a)             In this Agreement:

 

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

 

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

 

“Qualifying Lender”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

36

 

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

 

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

 

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

 

13.2      Tax gross-up

 

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

 

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

 

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

 

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

 

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

 

(ii)       is a Qualifying Lender; or

 

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

 

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

 

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

 

37

 

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

 

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

 

13.3      Tax indemnity

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38

 

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

 

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

 

13.4      Tax Credit

 

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

 

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

 

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

 

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

 

13.5      Qualifying Lenders

 

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

 

13.6      Stamp taxes

 

The Borrowers shall pay and, within 3 Business
Days of demand, indemnify each Finance Party against any cost, loss or
liability such Finance Party incurs in relation to all stamp duty, registration
and other similar Taxes payable in respect of any Finance Document, but not in
respect of any assignment or transfer pursuant to Clause 23 (Changes to the Lenders).

 

13.7      Value added tax

 

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

 

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

 

39

 

14.        INCREASED COSTS

 

14.1      Increased costs

 

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

 

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

 

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

 

(ii)       an additional or increased cost; or

 

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

 

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

 

14.2      Increased cost claims

 

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

 

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

 

14.3      Exceptions

 

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

 

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

 

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

 

(iii)      not payable as provided in Clause 23.2 (Conditions of Assignment or Transfer);

 

40

 

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

 

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

 

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

 

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

 

15.        OTHER INDEMNITIES

 

15.1      Currency indemnity

 

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

 

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

 

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

 

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

 

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

 

15.2      Other indemnities

 

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

 

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

 

(b)            a failure by ABB or an Obligor to pay any amount due under a
Finance Document on its due date, including without limitation, any cost, loss
or liability arising as a result of Clause 27 (Sharing
among the Lenders);

 

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

 

41

 

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

 

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

 

15.3      Indemnity to the Facility Agent

 

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

 

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

 

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

 

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

 

16.        MITIGATION BY THE LENDERS

 

16.1      Mitigation

 

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

 

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

 

16.2      Limitation of liability

 

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

 

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

 

42

 

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

 

17.        COSTS AND EXPENSES

 

17.1      Transaction expenses

 

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

 

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

 

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

 

17.2      Amendment costs

 

If (a) ABB requests an amendment, waiver or
consent or (b) an amendment is required pursuant to Clause 28.9 (Change of currency), ABB or the Borrowers
shall, within 3 Business Days of demand, reimburse the Facility Agent, upon
presentation of duly documented evidence thereof, for the amount of all costs
and expenses (including legal fees) reasonably and directly incurred by the
Facility Agent and which have previously been agreed with ABB in responding to,
evaluating, negotiating or complying with that request or requirement.

 

17.3      Enforcement costs

 

ABB or the Borrowers shall, within 3 Business
Days of demand, pay to each Finance Party the amount of all costs and expenses
(including legal fees) directly incurred by that Finance Party at any time
after the service of a notice by the Facility Agent under Clause 22.10 (Acceleration) in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

 

17.4      FSA and ECB costs

 

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

 

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

 

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

 

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

 

43

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18.        GUARANTEE AND INDEMNITY

 

18.1      Guarantee and indemnity

 

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

 

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

 

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

 

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

 

44

 

18.2      Continuing guarantee

 

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

 

18.3      Reinstatement

 

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

 

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

 

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

 

18.4      Waiver of defences

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)                                     any insolvency or similar proceedings.

 

18.5                   Immediate
recourse

 

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

 

45

 

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

 

18.6                   Appropriations

 

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

 

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

 

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

 

18.7                   Deferral
of Guarantors’ rights

 

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

 

(a)                                      to be indemnified by an Obligor;

 

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

 

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

 

18.8                   Additional
security

 

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

 

18.9                   Confirmations
and Restrictions

 

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

 

46

 

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

 

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

 

47

 

SECTION 7

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF
DEFAULT

 

19.                         REPRESENTATIONS

 

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

 

19.1                   Status

 

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

 

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

 

19.2                   Binding
obligations

 

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

 

19.3                   Non-conflict
with other obligations

 

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

 

(a)                                      any law or regulation applicable to it;

 

(b)                                     its constitutional documents; or

 

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

 

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

 

19.4                   Power
and authority

 

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

 

19.5                   Validity
and admissibility in evidence

 

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

 

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

 

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

 

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

 

48

 

19.6                   Insolvency

 

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

 

19.7                   No
default

 

(a)                                      No Default is continuing.

 

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

 

19.8                   No
misleading information

 

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

 

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

 

19.9                   Financial
statements

 

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

 

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

 

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

 

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

 

19.10             No
Material Adverse Effect

 

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

 

49

 

19.11             Pari
passu ranking

 

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

 

19.12             No
proceedings pending or threatened

 

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

 

19.13             Environmental
Compliance

 

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

 

19.14             Dutch
Borrower Regulatory Compliance

 

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

 

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

 

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

 

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

 

19.15             Repetition

 

The representations and warranties in Clause 19.1 (Status) to Clause 19.4 (Power and Authority) and paragraphs (c) and
(d) of Clause 19.9 (Financial
Statements) are deemed to be made by each Obligor by reference to
the facts and circumstances then existing on the date of each Utilisation
Request and the first day of each Interest Period.

 

50

 

20.                         INFORMATION UNDERTAKINGS

 

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

 

20.1                   Financial
statements

 

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

 

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

 

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

 

20.2                   Requirements
as to financial statements

 

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

 

20.3                   Information:
miscellaneous

 

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

 

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

 

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

 

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

 

20.4                   Notification
of default

 

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

 

51

 

20.5                   Material
Subsidiaries

 

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

 

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

 

(b)                                     written confirmation that the list of Material
Subsidiaries contained in Schedule 9 (Material
Subsidiaries) is complete and up to date at that time.

 

20.6                   Use
of Websites

 

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

 

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

 

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

 

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

 

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

 

(b)                                     The Facility Agent shall supply each Website
Lender with the address of and any relevant password specifications for the
Designated Website following designation of that website by ABB and the
Facility Agent.  The Facility Agent shall
notify each Website Lender when any document is posted to the Designated
Website.

 

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

 

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

 

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

 

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

 

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

 

52

 

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

 

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

 

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

 

20.7                   “Know
your customer” checks

 

(a)                                      If:

 

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

 

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

 

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

 

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

 

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

 

53

 

checks on
Lenders or prospective new Lenders pursuant to the transactions contemplated in
the Finance Documents.

 

(c)                                      ABB shall, by not less than 10 Business Days’
prior written notice to the Facility Agent, notify the Facility Agent (which
shall promptly notify the Lenders) of its intention to request that one of its
Subsidiaries becomes an Additional Obligor pursuant to Clause 24 (Changes to the Obligors).

 

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

 

21.                         GENERAL UNDERTAKINGS

 

The undertakings in this Clause 21 remain in force from the
date of this Agreement for so long as any amount is outstanding under the
Finance Documents or any Commitment is in force.

 

21.1                   Authorisations

 

Each Obligor shall promptly:

 

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

 

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

 

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

 

21.2                   Compliance
with laws

 

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

 

54

 

21.3       Negative pledge

 

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

 

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

 

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

 

(ii)       any Security arising by operation of law;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

55

 

and where such Indebtedness constitutes Project
Finance Indebtedness of such Project Company;

 

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

 

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

 

21.4       Claims Pari Passu

 

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

 

21.5       Merger

 

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

 

21.6       Insurance

 

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

 

21.7       Restriction on Subsidiary Indebtedness

 

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

 

(a)             Project Finance Indebtedness;

 

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

 

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

 

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

 

56

 

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

 

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

 

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

 

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

 

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

 

21.8       Change of business

 

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

 

21.9       Financial Guarantees

 

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

 

22.         EVENTS OF DEFAULT

 

Each of the events or circumstances set out in Clauses 22.1
(Non-payment) to 22.9 (Cessation of Business) inclusive is an
Event of Default.

 

22.1       Non-payment

 

Any sum due from an Obligor or the Obligors under this
Agreement is not paid at the time, at the place at, and in the currency in
which, it is expressed to be payable unless payment is made within 3 Business
Days of its due date and the failure to pay is due solely to administrative
error or technical delays in the transmission of funds.

 

22.2       Other obligations

 

An Obligor does not comply with any provision of the Finance
Documents (other than those referred to in Clause 22.1 (Non-payment) and, if the failure to comply
is capable of remedy, it is not remedied within 30 days of the Facility Agent
giving notice to ABB of the failure to comply.

 

22.3       Misrepresentation

 

Any representation or statement made or deemed (by virtue of
Clause 19.15 (Repetition)) to be
made by ABB or any other Obligor in this Agreement is or proves to have been
incorrect or misleading in any respect when made or deemed to be made 

 

57

 

and, where the circumstances making such representation or
statement incorrect or misleading are capable of being altered so that such
representation or statement is correct, such circumstances are not so altered
within 30 days of the Facility Agent giving notice to ABB of such
representation or statement being incorrect provided
that no Event of Default shall occur under this Clause 22.3 by
reason of the representation set out in paragraphs (a) or (b) of
Clause 19.14 (Dutch Obligor Regulatory
Compliance) being untrue (but without prejudice to the rights of the
Finance Parties under this Agreement other than under this Clause 22.3 or under
applicable law and without prejudice to any other Event of Default which may
occur by reason of any representation set out in paragraphs (a) or (b) of
Clause 19.14 (Dutch Obligor Regulatory
Compliance) being untrue in any material respect or otherwise by
reason of a Lender not being a PMP).

 

22.4       Cross default

 

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

 

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

 

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

 

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

 

(e)             No Event of Default will occur under this Clause 22.4 if (1) the
Indebtedness falling within paragraphs (a) to (d) is Project Finance
Indebtedness or intra-Group Indebtedness or (2) the aggregate amount of
Indebtedness or commitment for Indebtedness falling within paragraphs (a) to
(d) (excluding any described in (1) above) above is less than
$50,000,000.

 

(f)             No Event of Default will occur under this Clause 22.4 where
the applicable default or relevant circumstances described in paragraphs (a) to
(d) above arise as a result of or in connection with any bankruptcy filing
under Chapter 11 of the US Bankruptcy Code in respect of ABB Lummus Inc. or
Combustion Engineering Inc. or any other related bankruptcy filing under
Chapter 11 of the US Bankruptcy Code, or any proceedings relating to any such
filing.

 

22.5       Insolvency

 

(a)             Any Obligor or any Material Subsidiary is unable or admits
in writing an inability to pay its debts as they fall due, suspends making
payments on any of

 

58

 

its debts or,
by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any
of its indebtedness.

 

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

 

(c)             This Clause 22.5 shall not apply to Combustion Engineering
Inc. or ABB Lummus Global Inc.

 

22.6       Insolvency proceedings

 

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

 

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

 

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

 

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

 

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

 

or any analogous procedure or step is taken in any
jurisdiction provided that this
Clause 22.6 shall not apply to Combustion Engineering Inc. or ABB Lummus Global
Inc.

 

22.7       Repudiation

 

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

 

22.8       Unlawfulness

 

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

 

59

 

22.9       Cessation of business

 

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

 

22.10     Acceleration

 

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

 

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

 

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

 

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

 

60

 

SECTION 8

CHANGES TO PARTIES

 

23.         CHANGES TO THE LENDERS

 

23.1       Assignments and transfers by the Lenders

 

Subject to this Clause 23, a Lender (the “Existing Lender”) may:

 

(a)             assign any of its rights; or

 

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

 

to another bank (the “New
Lender”).

 

23.2       Conditions of assignment or transfer

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

61

 

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

 

(g)            A transfer will only be effective if the procedure set out
in Clause 23.5 (Procedure for transfer)
is complied with.

 

(h)            If:

 

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

 

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

 

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

 

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

 

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

 

62

 

23.3       Assignment or transfer fee

 

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

 

23.4       Limitation of responsibility of Existing Lenders

 

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

 

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

 

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

 

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

 

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

 

and any representations or warranties implied by law are
excluded.

 

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

 

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

 

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

 

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

 

(i)        accept a re-transfer from a New Lender of any of the rights
and obligations assigned or transferred under this Clause 23; or

 

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

 

23.5       Procedure for transfer

 

(a)             Subject to the conditions set out in Clause 23.2 (Conditions of assignment or transfer) a transfer
is effected in accordance with paragraph (b) below when the Facility Agent
executes an otherwise duly completed Transfer Certificate

 

63

 

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

 

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

 

(c)             On the Transfer Date:

 

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

 

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

 

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

 

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

 

23.6       Disclosure of information

 

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

 

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

 

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

 

64

 

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

 

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

 

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

 

24.         CHANGES TO THE OBLIGORS

 

24.1       Assignments and transfer by Obligors

 

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

 

24.2       Additional Borrowers

 

(a)             Subject to compliance with paragraphs (c) and (d) of
Clause 20.7 (“Know your Customer” checks),
ABB may request by written notice that any of its wholly owned Subsidiaries
becomes an Additional Borrower.  That
Subsidiary shall become an Additional Borrower if:

 

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

 

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

 

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

 

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

 

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

 

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

 

65

 

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

 

24.3       Resignation of a Borrower

 

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

 

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

 

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

 

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

 

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

 

24.4       Additional Guarantors

 

(a)             Subject to compliance with the provisions of paragraphs (c) and
(d) of Clause 20.7 (“Know Your Customer”
Checks), ABB may request that any of its wholly owned Subsidiaries
become an Additional Guarantor.  That
Subsidiary shall become an Additional Guarantor if:

 

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

 

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

 

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

 

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

 

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

 

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

 

66

 

24.5       Repetition of Representation

 

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

 

24.6       Resignation of a Guarantor

 

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

 

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

 

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

 

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

 

67

 

SECTION 9

THE FINANCE PARTIES

 

25.         ROLE OF THE AGENTS AND THE MANDATED LEAD ARRANGERS

 

25.1       Appointment of the Agents

 

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

 

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

 

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

 

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

 

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

 

25.2       Duties of the Agents

 

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

 

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

 

(c)             The Facility Agent shall promptly notify:

 

(i)        the Lenders of any Default arising under Clause 22.1 (Non-payment); and

 

(ii)       each Swingline Agent of:

 

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

 

(B)      any changes to the Obligors pursuant to Clause 24 (Changes to Obligors).

 

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

 

25.3       Role of the Mandated Lead Arrangers

 

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

 

68

 

25.4       No fiduciary duties

 

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

 

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

 

25.5       Business with the Group

 

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

 

25.6       Rights and discretions of the Agents

 

(a)             Each Agent may rely on:

 

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

 

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

 

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

 

(i)        no Default has occurred (unless it has actual knowledge of a
Default arising under Clause 22.1 (Non-payment));
and

 

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

 

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

 

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

 

25.7       Majority Lenders’ instructions

 

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

 

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

 

69

 

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

 

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

 

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

 

25.8       Responsibility for documentation

 

No Agent nor either Mandated Lead Arranger:

 

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

 

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

 

25.9       Exclusion of liability

 

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

 

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

 

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

 

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

 

70

 

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

 

25.10     Lenders’ indemnity to the Agents

 

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

 

25.11     Resignation of an Agent

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)            Upon the appointment of a successor, the retiring Agent
shall be discharged from any further obligation in respect of the Finance
Documents but shall remain entitled to the benefit of this Clause 25.  Its successor and each of the 

 

71

 

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

 

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

 

25.12     Confidentiality

 

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

 

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

 

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

 

25.13     Relationship with the Lenders

 

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

 

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

 

25.14     Credit appraisal by the Lenders

 

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

 

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

 

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

 

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

 

72

 

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

 

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

 

25.15     Reference Banks

 

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

 

26.         CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

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

 

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

 

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

 

27.         SHARING AMONG THE LENDERS

 

27.1       Payments to Lenders

 

If a Lender (a “Recovering
Lender”) receives or recovers any amount from ABB or an Obligor
other than in accordance with Clause 28 (Payment
mechanics) and applies that amount to a payment due under the
Finance Documents then:

 

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

 

(b)            the Facility Agent shall determine whether the receipt or
recovery is in excess of the amount the Recovering Lender would have been paid
had the receipt or recovery been received or made by the Facility Agent and
distributed in accordance with Clause 28 (Payment
mechanics), without taking account of any Tax which would be imposed
on the Facility Agent in relation to the receipt, recovery or distribution; and

 

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

 

73

 

determines
may be retained by the Recovering Lender as its share of any payment to be
made, in accordance with Clause 28.5 (Partial
payments).

 

27.2       Redistribution of payments

 

The Facility Agent shall treat the Sharing Payment as if it
had been paid by ABB or the relevant Obligor (as the case may be) and
distribute it between the Finance Parties (other than the Recovering Lender) in
accordance with Clause 28.5 (Partial
payments).

 

27.3       Recovering Lender’s rights

 

(a)             On a distribution by the Facility Agent under Clause 27.2 (Redistribution of payments), the
Recovering Lender will be subrogated to the rights of the Finance Parties which
have shared in the redistribution.

 

(b)            If and to the extent that the Recovering Lender is not able
to rely on its rights under paragraph (a) above, ABB or the relevant
Obligor (as the case may be) shall be liable to the Recovering Lender for a
debt equal to the Sharing Payment which is immediately due and payable.

 

27.4       Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by
a Recovering Lender becomes repayable and is repaid by that Recovering Lender,
then:

 

(a)             each Lender which has received a share of the relevant
Sharing Payment pursuant to Clause 27.2 (Redistribution
of payments) shall, upon request of the Facility Agent, pay to the
Facility Agent for the account of that Recovering Lender an amount equal to its
share of the Sharing Payment (together with an amount as is necessary to reimburse
that Recovering Lender for its proportion of any interest on the Sharing
Payment which that Recovering Lender is required to pay); and

 

(b)            that Recovering Lender’s rights of subrogation in respect of
any reimbursement shall be cancelled and ABB or the relevant Obligor (as the
case may be) will be liable to the reimbursing Lender for the amount so
reimbursed.

 

27.5       Exceptions

 

(a)             This Clause 27 shall not apply to the extent that the
Recovering Lender would not, after making any payment pursuant to this Clause,
have a valid and enforceable claim against ABB or the relevant Obligor (as the
case may be).

 

(b)            A Recovering Lender is not obliged to share with any other
Lender any amount which the Recovering Lender has received or recovered as a
result of taking legal or arbitration proceedings, if:

 

(i)        it notified the other Lenders of the legal or arbitration
proceedings; and

 

(ii)       the other Lender had an opportunity to participate in those
legal or arbitration proceedings but did not do so as soon as reasonably 

 

74

 

practicable
having received notice or did not take separate legal or arbitration
proceedings.

 

75

 

SECTION 10

ADMINISTRATION

 

28.         PAYMENT MECHANICS

 

28.1       Payments to the Agents

 

(a)             For the purpose of this Clause 28 a reference to the “Relevant Agent” means:

 

(i)        in relation to payments under the Dollar Swingline Facility,
the Dollar Swingline Agent;

 

(ii)       in relation to payments under the Euro Swingline Facility,
the Euro Swingline Agent;

 

(iii)      in relation to payments under the SEK Swingline Facility,
the SEK Swingline Agent; and

 

(iv)      for all other payments, the Facility Agent.

 

(b)            On each date on which a Borrower or a Lender is required to
make a payment under a Finance Document, such Borrower or, as the case may be,
such Lender shall make the same available to the Relevant Agent (unless a
contrary indication appears in a Finance Document) for value on the due date at
the time and in such funds specified by the Relevant Agent as being customary
at the time for settlement of transactions in the relevant currency in the
place of payment.

 

(c)             Payment shall be made to such account in the principal
financial centre of the country of that currency (or, in relation to Euro, in a
principal financial centre in a Participating Member State or London) with such
bank as the Relevant Agent specifies.

 

28.2       Distributions by the Facility Agent

 

Each payment received by an Agent under the Finance
Documents for another Party shall, subject to Clause 28.3 (Distributions to the Obligors) and Clause
28.4 (Clawback) be made available
by such Agent as soon as practicable after receipt to the Party entitled to
receive payment in accordance with this Agreement (in the case of a Lender, for
the account of its Facility Office), to such account as that Party may notify
to the Facility Agent by not less than 5 Business Days’ notice with a bank in
the principal financial centre of the country of that currency (or, in relation
to Euro, in the principal financial centre of a Participating Member State or
London).

 

28.3       Distributions to the Obligors

 

An Agent may (with the consent of ABB or the relevant
Obligor (as the case may be) or in accordance with Clause 29 (Set-off)) apply any amount received by it
for ABB or that Obligor in or towards payment (on the date and in the currency
and funds of receipt) of any amount due from ABB or that Obligor (as the case
may be) under the Finance Documents or in or towards purchase of any amount of
any currency to be so applied.

 

76

 

28.4       Clawback

 

(a)             Where a sum is to be paid to an Agent under the Finance
Documents for another Party, such Agent is not obliged to pay that sum to that
other Party (or to enter into or perform any related exchange contract) until
it has been able to establish to its absolute satisfaction that it has actually
received that sum (and such Agent shall make such due enquiry as a diligent
agent would make in so establishing).

 

(b)            If an Agent pays an amount to another Party and it proves to
be the case that such Agent had not actually received that amount, then the
Party to whom that amount (or the proceeds of any related exchange contract)
was paid by such Agent shall on demand refund the same to such Agent together
with interest on that amount from the date of payment to the date of receipt by
such Agent, calculated by such Agent to reflect its cost of funds.

 

(c)             In the event that a Lender fails to make its participation in
an Advance available to the Relevant Agent (as defined in Clause 28.1 (Payments to the Agents)) in accordance
with the terms of this Agreement, such Lender hereby indemnifies the Relevant
Agent on demand against all costs, losses and expenses that the Relevant Agent
may incur as a result of such failure (including, without limitation, where the
Relevant Agent, at its sole option, makes arrangements to make available to the
relevant Borrower an amount equal to said participation).

 

(d)                                     For the purposes of paragraph (c) of this
Clause 28.4, if a Lender makes its participation available to the Relevant
Agent after 3.00 p.m. (London time) on the due date, such participation
shall be deemed to have been made available on the Business Day immediately
succeeding the said due date.

 

28.5       Partial payments

 

(a)             If an Agent receives a payment that is insufficient to
discharge all the amounts then due and payable by ABB or the Obligors under the
Finance Documents, such Agent shall apply that payment towards the obligations
of the Obligors under the Finance Documents in the following order:

 

(i)        first, in or towards payment pro rata of any unpaid fees, costs
and expenses of the Agents under the Finance Documents;

 

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

 

(iii)      thirdly, in or towards payment pro rata of any principal due but
unpaid under this Agreement; and

 

(iv)      fourthly, in or towards payment pro rata of any other sum due but
unpaid under the Finance Documents.

 

(b)            The
Facility  Agent  shall,
if  so  directed
by  the  Majority
Lenders,  vary  the
order  set  out
in  paragraphs  (a)(ii)
to  (iv)  above.

 

77

 

(c)             Paragraphs (a) and (b) above will override any appropriation
made by ABB or any Obligor.

 

28.6       No set-off by Obligors

 

All payments to be made by ABB or the Obligors under the
Finance Documents shall be calculated and be made without (and free and clear
of any deduction for) set-off or counterclaim.

 

28.7       Business Days

 

(a)                                      Any payment which is due to be made on a day
that is not a Business Day shall be made on the next Business Day in the same
calendar month (if there is one) or the preceding Business Day (if there is
not).

 

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

 

28.8       Currency of account

 

(a)                                      Subject to paragraphs (b) to (e) below,
the Base Currency is the currency of account and payment for any sum due from
ABB or the Obligors under any Finance Document.

 

(b)                                     A repayment of an Advance or Unpaid Sum or a
part of an Advance or Unpaid Sum shall be made in the currency in which that
Advance or Unpaid Sum is denominated on its due date.

 

(c)                                      Each payment of interest shall be made in the
currency in which the sum in respect of which the interest is payable was
denominated when that interest accrued.

 

(d)                                     Each payment in respect of costs, expenses or
Taxes shall be made in the currency in which the costs, expenses or Taxes are
incurred.

 

(e)                                      Any amount expressed to be payable in a currency
other than the Base Currency shall be paid in that other currency.

 

28.9       Change of currency

 

(a)                                      Unless otherwise prohibited by law, if more than
one currency or currency unit are at the same time recognised by the central
bank of any country as the lawful currency of that country, then:

 

(i)        any reference in the Finance Documents to, and any
obligations arising under the Finance Documents in, the currency of that
country shall be translated into, or paid in, the currency or currency unit of
that country designated by the Facility Agent (after consultation with ABB);
and

 

(ii)       any translation from one currency or currency unit to
another shall be at the official rate of exchange recognised by the central
bank for the 

 

78

 

conversion of
that currency or currency unit into the other, rounded up or down by the
Facility Agent (acting reasonably).

 

(b)                                     If a change in any currency of a country occurs,
this Agreement will, to the extent the Facility Agent (acting reasonably and
after consultation with ABB) specifies to be necessary, be amended to comply
with any generally accepted conventions and market practice in the Relevant
Interbank Market and otherwise to reflect the change in currency.

 

29.         SET-OFF

 

Without prejudice to the rights at law of each Finance
Party, while an Event of Default is continuing, a Finance Party may set off any
matured obligation due from ABB or the Obligors under the Finance Documents (to
the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to ABB or the Obligors, regardless of the
place of payment, booking branch or currency of either obligation.  If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.

 

30.         NOTICES

 

30.1       Communications in writing

 

(a)             Any communication to be made under or in connection with the
Finance Documents shall be made in writing and, unless otherwise stated, may be
made by fax or letter.

 

(b)                                     With the consent of the relevant Lender, the
Agents may serve notices and other information on a Lender by way of electronic
mail.

 

30.2       Addresses

 

(a)             The address and fax number (and the department or officer,
if any, for whose attention the communication is to be made) of each Party for
any communication or document to be made or delivered under or in connection
with the Finance Documents is:

 

(i)        in the case of the Original Obligors, that identified in Part V
(The Original Obligors) of
Schedule 1, with a copy to ABB and ABB Capital B.V., Zurich Branch;

 

(ii)       in the case of ABB, that identified in Part V (The Original Obligors) of Schedule 1;

 

(iii)      in the case of an Additional Obligors, that identified in
the Borrower Accession Letter relating to that Additional Obligors, with a copy
to ABB and ABB Capital B.V., Zurich Branch;

 

(iv)      in the case of ABB Capital B.V., Zurich Branch, that
identified in paragraph (b) below;

 

79

 

(v)       in the case of each Lender, that notified in writing to the
Facility Agent on or prior to the date on which it becomes a Party; and

 

(vi)      in the case of an Agent, that identified in paragraph (b) below,

 

or any substitute address, fax number or department or
officer as the Party may notify to the Facility Agent (or the Facility Agent
may notify to the other Parties, if a change is made by the Facility Agent) by
not less than 5 Business Days’ notice.

 

(b)

 

(i)                        the Facility Agent:

 

Credit Suisse

1 Cabot Square

Canary Wharf

London  E14 4QJ

Attn:  Loans Agency / Paul Ronchi, Agency
department

 

Tel:    020 7888 8361 8362

Fax:   020 7458 8204 / 020 7888 8398

 

(ii)                     the Dollar Swingline Agent:

 

Credit Suisse, Cayman Islands Branch

Eleven Madison Avenue

New York, NY 10010-3629

USA

 

Attn:  Karl Studer

 

Tel:    00 212 325 9163

Fax:   00 212 325 8326

E-mail:         karl.studer@csfb.com

 

(iii)                  the Euro Swingline Agent

 

Credit Suisse

1 Cabot Square

Canary Wharf

London  E14 4QJ

 

Attn:  Loans Agency

 

Tel:    020 7888 8361 8362

Fax:   020 7458 8204 / 020 7888 8398

 

(iv)                 the SEK Swingline Agent

 

Merchant Banking, Skandinaviska Enskilda Banken, Ab (Publ)

 

80

 

Rissneleden

110106 40

Stockholm

Sweden

Attn: Merchant Banking, Structured Finance Operations

 

Tel:  +46 8 763 8166

Fax:  +46 8 6110384

 

(v)       ABB Capital B.V., Zurich Branch

Affolternstrasse 44

PO Box 8131

CH-8050

Switzerland

Attn:  Head of GTO

Fax:   +41 43 317 7474

 

Copy: Legal Department

Fax:    +41 43 317 7992

 

30.3                     Delivery

 

(a)             Any communication or document made or delivered by one
person to another under or in connection with the Finance Documents will only
be effective:

 

(i)        if by way of fax, when received in legible form; or

 

(ii)       if by way of letter, when it has been left at the relevant
address or 5 (in the case of domestic mail) or 10 (in the case of air mail)
Business Days after being deposited in the post postage prepaid in an envelope
addressed to it at that address; or

 

(iii)      if by way of electronic mail, when received.

 

and, if a particular department or officer is specified as
part of its address details provided under Clause 30.2 (Addresses), if addressed to that
department or officer, provided that
if receipt is on a day that is not a working day in the country of receipt or
is at a time outside normal business hours, such communication shall be
effective on the next succeeding working day.

 

(b)                                     Any communication or document to be made or
delivered to an Agent will be effective only when actually received by such
Agent and then only if it is expressly marked for the attention of the
department or officer identified in Clause 30.2 (Addresses) (or any substitute department or officer as the
relevant Agent shall specify for this purpose).

 

(c)             All notices from or to an Obligor shall be
sent through the Facility Agent.

 

81

 

30.4       Notification of address and fax number

 

Promptly upon
receipt of notification of an address, fax number or change of address or fax
number pursuant to Clause 30.2 (Addresses)
or changing its own address or fax number, the Facility Agent shall notify the
other Parties.

 

30.5       English language

 

(a)            Any notice given under or in connection with any Finance
Document must be in English.

 

(b)           All other documents provided under or in connection with any
Finance Document must be:

 

(i)        in English; or

 

(ii)       if not in English, and if so required by the Facility Agent,
accompanied by a certified English translation.

 

31.         CALCULATIONS AND CERTIFICATES

 

31.1       Accounts

 

In any
litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance
Party are prima facie evidence of the matters to which they relate.

 

31.2       Certificates and Determinations

 

Except where
otherwise indicated, any certification or determination by a Finance Party of a
rate or amount under any Finance Document is, in the absence of manifest error,
conclusive evidence of the matters to which it relates.

 

31.3       Day count convention

 

Any interest,
commission or fee accruing under a Finance Document will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year
of 360 days or, in any case where the practice in the Relevant Interbank Market
differs, in accordance with that market practice.

 

32.         PARTIAL INVALIDITY

 

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

 

33.         REMEDIES AND WAIVERS

 

No failure to
exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Finance Documents shall operate as a waiver, nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise or the exercise of any other right or remedy.  The rights and remedies 

 

82

 

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

 

34.         AMENDMENTS AND WAIVERS

 

34.1       Required consents

 

(a)               Subject to Clause 34.2 (Exceptions)
any term of the Finance Documents may be amended or waived only with the
consent of the Majority Lenders and ABB and any such amendment or waiver will
be binding on all Parties.

 

(b)               The Facility Agent may effect (and is hereby so authorised
by each Finance Party), on behalf of any Finance Party, any amendment or waiver
permitted by this Clause.

 

34.2       Exceptions

 

(a)               An amendment or waiver that has the effect of changing or
which relates to:

 

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

 

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

 

(iii)     a reduction in the Margin or the amount of any payment of
principal, interest, fees or commission payable;

 

(iv)    an increase in any Commitment;

 

(v)     any provision which expressly requires the consent of all
the Lenders;

 

(vi)    Clause 2.2 (Lenders’
rights and obligations), Clause 4.2 (Further conditions precedent), Clause 23 (Changes to the Lenders), Clause 24 (Changes to the Obligors), Clause 27 (Sharing among the Lenders) or this Clause
34; or

 

(vii)     any change to the Obligors other than in accordance with
Clause 24 (Changes to the Obligors),

 

shall not be
made without the prior consent of all the Lenders.

 

(b)            An amendment or waiver which relates to the rights or
obligations of any Agent or either Mandated Lead Arranger may not be effected
without the consent of such Agent or such Mandated Lead Arranger.

 

35.         COUNTERPARTS

 

Each Finance
Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the
Finance Document.

 

83

 

SECTION 11

GOVERNING LAW AND ENFORCEMENT

 

36.         GOVERNING LAW

 

This
Agreement is governed by English law.

 

37.         ENFORCEMENT

 

(a)             The courts of England have exclusive jurisdiction to settle
any dispute arising out of or in connection with this Agreement (including a
dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”).

 

(b)            The Parties agree that the courts of England are the most
appropriate  and convenient courts to
settle Disputes and accordingly no Party will argue to the contrary.

 

(c)             This Clause 37 is for the benefit of the Finance Parties
only.  As a result, no Finance Party
shall be prevented from taking proceedings relating to a Dispute (“Proceedings”) in any other courts with
jurisdiction.

 

(d)             If ABB Capital B.V. is represented by an attorney or
attorneys in connection with the signing and/or execution and/or delivery of
this Agreement or any agreement or document referred to herein or made pursuant
hereto and the relevant power or powers of attorney is or are expressed to be
governed by the laws of a particular jurisdiction, it is hereby expressly
acknowledged and accepted by the other parties hereto that such laws shall
govern the existence and extent of such attorney’s or attorneys’ authority and
the effects of the exercise thereof.

 

(e)             ABB and each Obligor incorporated in a jurisdiction other
than England and Wales agree that the documents which start any Proceedings in
England and any other documents required to be served in relation to those
Proceedings may be served on ABB Limited, at Daresbury Park, Daresbury,
Warrington WA4 4BT, Cheshire, United Kingdom or, if different, its registered
office, with a copy to ABB.  If the
appointment of the person mentioned in this sub-clause (e) ceases to be
effective, ABB and each Obligor shall immediately appoint another person in
England to accept service of process on its behalf in England.  If ABB or any Obligor fails to do so (and
such failure continues for a period of not less than fourteen days), the
Facility Agent shall be entitled to appoint such a person by notice to ABB or
the relevant Obligor (as the case may be). 
Nothing contained herein shall restrict the right to serve process in
any other manner allowed by law.

 

THIS
AGREEMENT has been entered into on the date stated at
the beginning of this Agreement.

 

84

 

SCHEDULE 1

 

Part I

The Original Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Commitment ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  5 The North Colonnade

  Canary Wharf 

  London E14 4BB

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  37 Place Du Marche Saint Honore 

  75 001 Paris

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank,
  N.A.

  	
   

  	
  Citigroup Centre 

  25 Canada Square 

  Canary Wharf

  London E14 5HQ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commerzbank
  Aktiengesellschaft,

  Großkundencenter Region Mitte

  	
   

  	
  Neue Mainzer Landstrasse 33-35 

  60311 Frankfurt am Main

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit
  Suisse

  	
   

  	
  1 Cabot Square 

  Canary Wharf 

  London E14 4QJ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank Luxembourg S.A.

  	
   

  	
  2, boulevard Konrad Adenauer 

  L-1115 Luxembourg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner
  Bank AG, Niederlassung 

  Luxemburg

  	
   

  	
  6A, route de Trèves 

  2633 Senningerberg 

  Luxembourg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank
  plc

  	
   

  	
  8 Canada Square 

  Canary Wharf 

  London E14 5HQ

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque
  Luxembourg Société 

  Anonyme

  	
   

  	
  4, rue Alphonse Weicker 

  L-2721 Luxembourg-Kirchberg

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank
  AB (publ)

  	
   

  	
  International Loan Services, 

  H 352 

  SE-105 71 Stockholm 

  Sweden

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska
  Enskilda Banken AB (publ)

  	
   

  	
  Rissneleden 110 

  106 40 Stockholm 

  Sweden

  	
   

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska
  Handelsbanken AB (publ)

  	
   

  	
  Blasieholmstorg 11 

  SE-10670 Stockholm 

  Sweden

  	
   

  	
  120,000,000

  	
   

  

 

85

 

	
  ABN AMRO Bank N.V., 

  Niederlassung Deutschland

  	
   

  	
  Theodor-Heuss-Allee 80 

  D-60486 Frankfurt 

  Germany

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao Vizcaya Argentaria S.A.

  	
   

  	
  108 Cannon Street 

  London EC4N 6EU

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  5 Canada Square 

  London E14 5AQ

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank ASA

  	
   

  	
  DnB NOR Bank ASA, KKD 

  Stranden 21, 0021 Oslo

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Luxembourg S.A.

  	
   

  	
  52 route d’Esch 

  L-2965 Luxembourg

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV Dublin Branch

  	
   

  	
  KBC Bank NV Dublin Branch 

  Sandwith Street 

  Dublin 2

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Limited

  	
   

  	
  1, Finsbury Avenue, 

  London EC2M 2PP

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banca Intesa SpA

  	
   

  	
  London Branch, 90 Queen St, 

  London, EC4N 1SA

  	
   

  	
  52,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  2,000,000,000

  	
   

  

 

86

 

Part II

The Dollar Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Dollar Swingline 

  Commitment ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  200
  Cedar Knolls 

  Road,Whippany, New Jersey, 

  07981,U.S.A

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  French American Banking 

  Corporation 

  PO Box 7589 

  FDR station, NY 10150

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  399 Park Ave 16th floor, NY, 

  NY 10043

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse, Cayman Islands Branch

  	
   

  	
  One Madison Avenue 

  New York, NY 10010

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank Luxembourg S.A. 

  c/o Deutsche Bank AG 

  New York

  	
   

  	
  90 Hudson Street 

  New Jersey 

  NJ 07302

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner Bank AG, 

  Niederlassung Luxemburg c/o 

  Dresdner Bank AG New York Branch

  	
   

  	
  1301 Avenue of the Americas, 

  10th Floor 

  New York, NY 10019

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank plc

  	
   

  	
  One HSBC Centre 

  26th Floor, Buffalo NY 14203

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque Luxembourg 

  Société Anonyme (acting through HVB New York Branch)

  	
   

  	
  150
  East 42nd Street 

  New York, NY 10017

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  Nordea Bank Finland PLC, 

  New York Branch 

  437 Madison Avenue 

  New York, NY 10022

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  245 Park Avenue, 42nd Floor 

  New York, NY 10167

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken, New York Branch

  	
   

  	
  875 Third Avenue 

  NY 10022-7218 

  New York

  	
   

  	
  50,000,000

  	
   

  

 

87

 

	
  ABN AMRO Bank N.V.

  	
   

  	
  540 West Madison Street, Suite 

  2621 Chicago 

  Illinois 60661

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao Vizcaya 

  Argentaria S.A.

  	
   

  	
  1345 Avenue of the Americas 

  45th Floor, New York 

  N.Y. 10105

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  Bank of America Corporate 

  Centre 

  101 N. Tryon Street15th Floor 

  Charlotte NC 28255

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank ASA

  	
   

  	
  200 Park Avenue - 31st Floor 

  New York, NY 10166

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV New York Branch

  	
   

  	
  125 West 55th Street 

  New York NY 10019

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Loan Finance LLC

  	
   

  	
  677 Washington Blvd. 

  Stamford, CT 06901 

  USA

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  750,000,000

  	
   

  

 

88

 

Part III

The Euro Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  Euro Swingline Commitment ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  London branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas 

  	
   

  	
  Paris branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  London branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse

  	
   

  	
  London branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank Luxembourg
  S.A.

  	
   

  	
  Luxembourg branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dresdner Bank AG, 

  Niederlassung Luxemburg

  	
   

  	
  Luxembourg branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC Bank plc

  	
   

  	
  London branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Banque Luxembourg 

  Société Anonyme

  	
   

  	
  Luxembourg branch

  	
   

  	
  55,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  Stockholm branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda
  Banken AB 

  (publ)

  	
   

  	
  Stockholm branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken AB
  (publ)

  	
   

  	
  Stockholm branch

  	
   

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABN AMRO Bank N.V., 

  Niederlassung Deutschland

  	
   

  	
  Frankfurt branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banco Bilbao Vizcaya
  Argentaria S.A.

  	
   

  	
  London branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  London branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DnB Nor Bank ASA

  	
   

  	
  Oslo branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBC Bank NV Dublin Branch

  	
   

  	
  Dublin branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Limited

  	
   

  	
  London branch

  	
   

  	
  26,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
  750,000,000

  	
   

  
							

 

89

 

Part IV

The SEK Swingline Lenders

 

	
  Name

  	
   

  	
  Facility Office

  	
   

  	
  SEK Swingline

  Commitment ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda
  Banken AB (publ)

  	
   

  	
  Rissneleden
  110

  106 40 Stockholm

  Sweden

  	
   

  	
  70,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank AB (publ)

  	
   

  	
  International
  Loan Services,

  H 352

  SE-105 71 Stockholm

  Sweden

  	
   

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken AB
  (publ)

  	
   

  	
  Blasieholmstorg
  11

  SE-10670 Stockholm

  Sweden

  	
   

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  200,000,000

  	
   

  

 

90

 

Part V

The Original Obligors

 

	
  Name of Original

  Borrower

  	
   

  	
  Address

  	
   

  	
  Jurisdiction of

  incorporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Capital B.V.

  	
   

  	
  Burgemeester Haspelslaan 65, 5/F

  	
   

  	
  Netherlands

  
	
   

  	
   

  	
  PO Box 74690

  	
   

  	
   

  
	
   

  	
   

  	
  Amstelveen

  	
   

  	
   

  
	
   

  	
   

  	
  NL-1181 NB

  	
   

  	
   

  
	
   

  	
   

  	
  Netherlands

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 31 20 445 9844

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Asea Brown Boveri Ltd

  	
   

  	
  Affolternstrasse 44

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  CH-8050 Zurich

  	
   

  	
   

  
	
   

  	
   

  	
  Switzerland

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  

 

	
  Name of Original

  Guarantor

  	
   

  	
  Address

  	
   

  	
  Jurisdiction of

  incorporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Capital B.V.

  	
   

  	
  Burgemeester Haspelslaan 65, 5/F

  	
   

  	
  Netherlands

  
	
   

  	
   

  	
  PO Box 74690

  	
   

  	
   

  
	
   

  	
   

  	
  Amstelveen

  	
   

  	
   

  
	
   

  	
   

  	
  NL-1181 NB

  	
   

  	
   

  
	
   

  	
   

  	
  Netherlands

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 31 20 445 9844

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Asea Brown Boveri Ltd

  	
   

  	
  Affolternstrasse 44

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  CH-8050 Zurich

  	
   

  	
   

  
	
   

  	
   

  	
  Switzerland

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  

 

91

 

	
  ABB Ltd

  	
   

  	
  Affolternstrasse 44

  	
   

  	
  Switzerland

  
	
   

  	
   

  	
  CH-8050 Zurich

  	
   

  	
   

  
	
   

  	
   

  	
  Switzerland

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 

  	
  Deputy CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
  + 41 43 317 3929

  	
   

  	
   

  
	
   

  	
   

  	
  Copy: Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Fax: + 41 43 317 7992

  	
   

  	
   

  

 

92

 

SCHEDULE 2

CONDITIONS
PRECEDENT

 

Part I

Conditions Precedent

 

1.                                 Corporate Documents

 

(a)                                      A copy of the constitutional documents of each
Obligor.

 

(b)                                     A copy of a resolution of the board of directors
of each Obligor (if applicable) or, in the case of ABB Capital B.V., a copy of a resolution of the board of managing
directors (directie) or, in the
case of ABB, a copy of an excerpt of the minutes of the board of directors of
ABB:

 

(i)        approving the terms of, and the transactions contemplated
by, the Finance Documents to which it is a party and resolving that it execute
the Finance Documents to which it is a party;

 

(ii)       (other than in relation to ABB) authorising a
specified person or persons to execute the Finance Documents to which it is a
party on its behalf; and

 

(iii)      authorising a specified person or persons, on its behalf, to
sign and/or despatch all documents and notices (including, if relevant, any
Utilisation Request) to be signed and/or despatched by it under or in
connection with the Finance Documents to which it is a party.

 

(c)                                      A copy of a shareholders resolutions of ABB Capital B.V.

 

(d)                                     A copy of a shareholders resolution of ABB Asea
Brown Boveri Ltd.

 

(e)                                      A specimen of the signature of each person
authorised by the resolution referred to in paragraph (b) above.

 

(f)                                        A certificate of each Obligor (signed without
personal liability by an authorised signatory of each Obligor) confirming that
borrowing or guaranteeing, as appropriate, the Total Commitments would not
cause any borrowing, guaranteeing or similar limit binding on that relevant
Obligor to be exceeded.

 

(g)                                       A certificate of an authorised signatory of the relevant Obligor,
certifying without personal liability that each copy document relating to it
specified in paragraph 1 (a) - (f) of this Schedule 2 is correct,
complete and in full force and effect as at a date no earlier than the date of
this Agreement.

 

93

 

2.                                 Legal opinions

 

(a)                                        A legal opinion of Clifford Chance Limited
Liability Partnership, legal advisers to the Mandated Lead Arrangers and the
Agents in England, substantially in the form distributed to the Original
Lenders prior to signing this Agreement.

 

(b)                                      A legal opinion of Clifford Chance Limited
Liability Partnership, Amsterdam, legal advisers to the Mandated Lead Arranger
and the Agents in the Netherlands in the form approved by the Facility Agent.

 

(c)                                       A legal opinion of Baer & Karrer, legal
advisers to the Mandated Lead Arrangers and the Agents in Switzerland in the
form approved by the Facility Agent.

 

3.                                 Other documents and evidence

 

(a)                                        Evidence that the process agent referred to in
paragraph (e) of Clause 37 (Service of
process) has accepted its appointment.

 

(b)                                      Repayment and cancellation in full of the
Existing Credit Facility.

 

(c)                                       The Original Financial Statements of each
Obligor.

 

(d)                                      Evidence that the fees, costs and expenses then
due from ABB pursuant to Clause 12 (Fees)
and Clause 17 (Costs and expenses)
have been paid or will be paid by the first Utilisation Date.

 

94

 

Part II

Additional Obligor Conditions Precedent

 

1.                                 An Accession Letter, duly executed by the
Additional Obligor and ABB.

 

2.                                 A copy of the constitutional documents of the
Additional Obligor.

 

3.                                 A copy of a resolution of the board of
directors, or other suitable authority, of the Additional Obligor:

 

(a)                                  approving the terms of, and the transactions
contemplated by, the Accession Letter and the Finance Documents and resolving
that it execute the Accession Letter;

 

(b)                                 authorising a specified person or persons to
execute the Accession Letter on its behalf; and

 

(c)                                  authorising a specified person or persons, on
its behalf, to sign and/or despatch all other documents and notices (including
any Utilisation Request) to be signed and/or despatched by it under or in
connection with the Finance Documents.

 

4.                                 If required under applicable law, a copy of a
resolution of the Additional Obligor as Guarantor stating that the shareholders
resolve and approve the entering into, and the terms and conditions of, this
Agreement, in particular, in relation to any Additional Obligor incorporated in
Switzerland that is acceding as a Guarantor, the guarantee to be provided by
such Additional Obligor as Guarantor for the purpose of securing the prompt and
complete satisfaction of all present and future conditional and unconditional
claims of the Finance Parties against any member of the Group other than such
Additional Obligor as Guarantor and its wholly owned subsidiaries arising from
time to time out of the Finance Documents.

 

5.                                 A specimen of the signature of each person
authorised by the resolution referred to in paragraph 3 above.

 

6.                                 A certificate of the Additional Obligor (signed
by two duly authorised signatories) confirming that borrowing or guaranteeing
(as the case may be) the Total Commitments would not cause any borrowing,
guaranteeing or similar limit binding on it to be exceeded.

 

7.                                 A certificate of an authorised signatory of the
Additional Obligor certifying that each copy document listed in this Schedule 2
is correct, complete and in full force and effect as at a date no earlier than
the date of the Accession Letter.

 

8.                                 A copy of any other Authorisation or other
document, opinion or assurance which the Facility Agent reasonably considers to
be necessary in connection with the entry into and performance of the
transactions contemplated by the Accession Letter or for the validity and
enforceability of any Finance Document.

 

95

 

9.                                   If available, the latest audited financial
statements of the Additional Obligor.

 

10.                             A legal opinion of Clifford Chance Limited
Liability Partnership, legal advisers to the Mandated Lead Arrangers and the
Facility Agent in England.

 

11.                             If the Additional Obligor is incorporated in a
jurisdiction other than England and Wales, a legal opinion of the legal
advisers to the Mandated Lead Arrangers and the Facility Agent in the
jurisdiction in which the Additional Obligor is incorporated.

 

12.                             If the proposed Additional Obligor is
incorporated in a jurisdiction other than England and Wales, evidence that the
process agent specified in paragraph (e) of Clause 37 (Service of process), if not an Obligor,
has accepted its appointment in relation to the proposed Additional Obligor.

 

96

 

SCHEDULE 3

UTILISATION
REQUEST

 

	
  From:

  	
  [Name of Borrower]

  
	
   

  	
   

  
	
  To:

  	
  [Agent]

  
	
   

  	
   

  
	
  Copied to:

  	
  [Facility Agent]*

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
  [·]

  

 

Dear Sirs

 

ABB Ltd - $2,000,000,000 Credit Agreement

dated [ · ] (the “Credit Agreement”)

 

1.             Words and expressions defined in the Credit Agreement have
the same meaning when used herein.

 

2.             We wish to borrow a [Revolving Advance/Dollar Swingline Advance/Euro
Swingline Advance/SEK Swingline Advance] on the following terms:

 

	
   

  	
  Proposed Utilisation Date:

  	
  [  ·  ] (or,
  if that is not a Business Day, the next Business Day)

  
	
   

  	
   

  	
   

  
	
   

  	
  Currency of Advance:

  	
  [  ·  ]

  
	
   

  	
   

  	
   

  
	
   

  	
  Amount:

  	
  [  ·  ]

  
	
   

  	
   

  	
   

  
	
   

  	
  Interest Period:

  	
  [  ·  ]

  

 

3.             We
confirm that each condition specified in Clause 4.2 (Further conditions
precedent) is satisfied on the date of this Utilisation Request.

 

4.             The
proceeds of this Advance should be credited to [account].

 

5.             This
Utilisation Request is irrevocable.

 

Yours faithfully

 

	
   

  	
   

  

 

authorised signatory for

 

[Name of Borrower]

 

97

 

SCHEDULE 4

FORM OF
TRANSFER CERTIFICATE

 

	
  To:

  	
  [  ·  ] as Facility Agent

  
	
   

  	
   

  
	
  From:

  	
  [The Existing Lender] (the “Existing
  Lender”) and [The New Lender] (the “New Lender”)

  
	
   

  	
   

  
	
   

  	
  Dated:

  

 

ABB Ltd - $2,000,000,000 Credit Agreement

dated [  ·  ] (the “Credit
Agreement”)

 

1.                               Words and expressions defined in the Credit
Agreement have the same meaning when used herein.

 

2.                               We refer to Clause 23.5 (Procedure for transfer) of the Credit
Agreement:

 

(a)                                      The Existing Lender and the New Lender agree to
the Existing Lender and the New Lender transferring by novation all or part of
the Existing Lender’s Commitment, rights and obligations referred to in the
Schedule in accordance with Clause 23.5 (Procedure
for transfer).

 

(b)                                     The proposed Transfer Date is [·].

 

(c)                                      The Facility Office and address, fax number and
attention details for notices of the New Lender for the purposes of Clause 30.2
(Addresses) are set out in the
Schedule.

 

3.                               The New Lender expressly acknowledges the
limitations on the Existing Lender’s obligations set out in paragraph (c) of
Clause 23.4 (Limitation of responsibility of
Existing Lenders).

 

4.                               The New Lender confirms on the Transfer Date
that it is a PMP.(1)

 

5.                               This Transfer Certificate is governed by English
law.

 

(1) Only to be included if it is a requirement under
Dutch law at the time of such assignment or transfer that the New Lender
qualifies as a PMP.

 

98

 

THE SCHEDULE

 

Commitment/rights and obligations to be
transferred

[insert relevant details]

[Facility Office address, fax number and
attention details for notices and account details for payments,]

 

	
  [Existing Lender]

  	
  [New Lender]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

This Transfer Certificate is accepted by the Facility Agent and the
Transfer Date is confirmed as [·].

 

[Facility Agent]

 

By:

 

99

 

SCHEDULE 5

TIMETABLES

 

	
   

  	
   

  	
  Advances in 

  Euro

  	
   

  	
  Advances in 

  Dollars

  	
   

  	
  Advances in 

  SEK

  	
   

  	
  Advances in 

  other 

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)

  	
   

  	
  10 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  	
   

  	
  11 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  	
   

  	
  11 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  	
   

  	
  11 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent determines (in relation to a Utilisation) the Base
  Currency Amount of the Advance, if required under Clause 5.4 (Lenders’ participation)

  	
   

  	
  11 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  	
   

  	
  N/A

  	
   

  	
  11 a.m. London time, 3 Business Day prior to the proposed
  Utilisation Date

  	
   

  	
  11 a.m. London time, 3 Business Days prior to the proposed
  Utilisation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent notifies the Lenders of the Advance in accordance with
  Clause 5.4 (Lenders’ participation)

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation Request (Clause 5.5 (Delivery of a Utilisation Request for a Swingline
  Advance))

  	
   

  	
  9.30 a.m. London time on the proposed Utilisation Date

  	
   

  	
  11 a.m. New York time on the proposed Utilisation Date

  	
   

  	
  10.00 a.m. Stockholm time on the proposed Utilisation Date

  	
   

  	
  N/A

  

 

100

 

	
   

  	
   

  	
  Advances in 

  Euro

  	
   

  	
  Advances in 

  Dollars

  	
   

  	
  Advances in 

  SEK

  	
   

  	
  Advances in 

  other 

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swingline Agent notifies each Swingline Lender of the amount,
  currency and the Base Currency Amount of each Swingline Advance (paragraph
  (c) of Clause 5.8 (Swingline Lenders’
  Participation))

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  Promptly upon receipt from the relevant Borrower

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent receives a notification from a Lender under Clause 6.2
  (Unavailability of a currency)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Quotation Day as of 9 a.m. London time

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent gives notice in accordance with Clause 6.2 (Unavailability of a currency)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Upon receipt of notification from the Lenders

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR or EURIBOR or STIBOR is fixed

  	
   

  	
  Quotation Day as of 11.00 a.m. Brussels time

  	
   

  	
  Quotation Day as of 11.00 a.m. London time

  	
   

  	
  Quotation Day as of 11.00 a.m. Stockholm time

  	
   

  	
  Quotation Day as of 11. 00 a.m. London time

  

 

101

 

SCHEDULE 6

FORM OF ACCESSION LETTER

 

	
  To:

  	
  Credit
  Suisse as Facility Agent

  

 

From: [Subsidiary]
and ABB Ltd

 

Dated: [·]

 

Dear Sirs

 

ABB Ltd - $2,000,000,000 Revolving Credit Agreement dated [·]

(the “Agreement”)

 

1.           We
refer to the Agreement.  This is an Accession
Letter.  Terms defined in the Agreement
have the same meaning in this Accession Letter unless given a different meaning
in this Accession Letter.

 

2.           [Subsidiary]
agrees to become an [Additional Borrower]/[Additional Guarantor] and to be
bound by the terms of the Agreement as an [Additional Borrower]/[Additional
Guarantor] pursuant to [Clause 24.2 (Additional
Borrowers)]/[Clause 24.2 (Additional
Guarantors)] of the Agreement.

 

3.           [Subsidiary]
is a company duly incorporated under the laws of [name of relevant
jurisdiction].

 

4.           [Subsidiary]
is a wholly owned Subsidiary of ABB Ltd.

 

5.           [Subsidiary’s]
administrative details are as follows:

 

Address:

 

Fax No:

 

Attention:

 

6.           This
Accession Letter is governed by English law.

 

[This
Guarantor Accession Letter is entered into by deed].

 

	
  ABB Ltd

  	
  [Subsidiary]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

102

 

SCHEDULE 7

FORM OF RESIGNATION LETTER

 

	
  To:

  	
  Credit
  Suisse as Facility Agent

  
	
   

  	
   

  
	
  From:

  	
  [resigning
  Obligor] and ABB Ltd

  

 

Dated: [·]

 

Dear Sirs

 

ABB Ltd - $2,000,000,000 Revolving Credit Agreement dated [·]

(the “Agreement”)

 

1.           We
refer to the Agreement.  This is a
Resignation Letter.  Terms defined in the
Agreement have the same meaning in this Resignation Letter unless given a different
meaning in this Resignation Letter.

 

2.           Pursuant
to [Clause 24.6 (Resignation of a Borrower)]/[Clause
24.6 (Resignation of a Guarantor)],
we request that [resigning Obligor] be released from its obligations as a [Borrower]/[Guarantor] under the Agreement.

 

3.           We
confirm that:

 

(a)            no Default would result from the acceptance of this request; and

 

(b)           [resigning
Obligor] is under no actual or contingent liability under the Agreement.

 

4.           This
Resignation Letter is governed by English law.

 

	
  ABB
  Ltd

  	
  [Subsidiary]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

103

 

SCHEDULE 8

MANDATORY COST

 

The Mandatory
Cost is an addition to the interest rate on an Advance denominated in Sterling
to compensate the Lenders for the cost attributable to such Advance resulting
from the imposition from time to time under or pursuant to the Bank of England
Act 1998 (the “BoE Act”) of a requirement to
place non-interest-bearing or Special Deposits (whether interest bearing or
not) with the Bank of England calculated by reference to liabilities used to
fund the Advance.

 

The Mandatory
Cost shall be the rate determined by the Facility Agent to be equal to the
arithmetic mean (rounded upward, if necessary, to 4 decimal places) of the
respective rates notified by each Reference Bank to the Facility Agent as the
rate resulting from the application (as appropriate) of the following formulae:

 

XL +
S(L - D)

 

100 -
(X + S)

 

where on the
day of application of a formula:

 

X                                               is the percentage of Eligible Liabilities (in excess of any stated
minimum) by reference to which that Reference Bank is required under or
pursuant to the BoE Act to maintain cash ratio deposits with the Bank of
England;

 

L                                                 is LIBOR applicable to the relevant Advance;

 

S                                                 is the level of interest bearing Special Deposits, expressed as a
percentage of Eligible Liabilities, which that Reference Bank is required to
maintain by the Bank of England (or other United Kingdom governmental
authorities or agencies); and

 

D                                               is the percentage rate per annum payable by the Bank of England to
that Reference Bank on Special Deposits.

 

(X, L, S and D
shall be expressed in the formula as numbers and not as percentages, e.g. if X
= 0.15% and L = 7%, XL will be calculated as 0.15 x 7 and not as 0.15% x
7%.  A negative result obtained from
subtracting D from L shall be counted as zero.)

 

If any
Reference Bank fails to notify any such rate to the Facility Agent, the
Mandatory Cost shall be determined on the basis of the rate(s) notified to
the Facility Agent by the remaining Reference Bank(s).

 

The Mandatory
Cost attributable to an Advance or other sum for any period shall be calculated
at or about 11.00 a.m. on the first day of that period for the duration of
that period.

 

The
determination of the Mandatory Cost in relation to any period shall, in the
absence of manifest error, be conclusive and binding on the Parties.

 

104

 

If there is
any change in circumstance (including the imposition of alternative or
additional requirements) which in the reasonable opinion of the Facility Agent
renders or will render the above formula (or any element of the formula, or any
defined term used in the formula) inappropriate or inapplicable, the Facility
Agent (following consultation with ABB and the Majority Lenders) shall be
entitled to vary the same by giving notice to the Parties.  Any such variation shall, in the absence of
manifest error, be conclusive and binding on the Parties and shall apply from
the date specified in such notice.

 

For the purposes
of this Schedule, “Eligible Liabilities”
and “Special Deposits” have the meanings
given to those terms under or pursuant to the BoE Act or by the Bank of England
(as may be appropriate), on the day of the application of the formula.

 

105

 

SCHEDULE 9

MATERIAL SUBSIDIARIES

 

	
  Company Name

  	
   

  	
  Jurisdiction

  	
   

  	
  ABB Interest

  (%)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Finance B.V.

  	
   

  	
  Netherlands

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Capital B.V.

  	
   

  	
  Netherlands

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB International Finance Limited

  	
   

  	
  Guernsey

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Holdings Inc.

  	
   

  	
  United
  States

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB AG

  	
   

  	
  Germany

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB AB

  	
   

  	
  Sweden

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB S.p.A.

  	
   

  	
  Italy

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Schweiz AG

  	
   

  	
  Switzerland

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB (China) Ltd

  	
   

  	
  China

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABB Inc.

  	
   

  	
  United
  States

  	
   

  	
  100

  	
   

  

 

106

 

SIGNATURES

 

The Original Borrowers

 

ABB CAPITAL B.V.

 

	
  By:

  	
  BRIAN VAN REIJN

  	
  JOHN KRUM

  

 

 

ABB
ASEA BROWN BOVERI LTD

 

	
  By:

  	
  URS ARNOLD

  	
  ALEX HALL

  

 

 

The Original Guarantors

 

ABB
LTD

 

	
  By:

  	
  MICHEL DEMARÉ

  	
  ALFRED STORCK

  

 

 

ABB CAPITAL B.V.

 

	
  By:

  	
  BRIAN VAN REIJN

  	
  JOHN KRUM

  

 

 

ABB ASEA BROWN BOVERI LTD

 

	
  By:

  	
  URS ARNOLD

  	
  ALEX HALL

  

 

107

 

The Mandated Lead Arrangers

 

BARCLAYS CAPITAL

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

BAYERISCHE HYPO-UND VEREINSBANK AG

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

BNP PARIBAS

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

CITIGROUP GLOBAL MARKETS LIMITED

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

COMMERZBANK AKTIENGESELLSCHAFT

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

CREDIT SUISSE

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

DEUTSCHE BANK AG

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

DRESDNER KLEINWORT  -  THE INVESTMENT BANKING DIVISION OF DRESDNER
BANK AG (acting through DRESDNER BANK AG, NIEDERLASSUNG LUXEMBURG

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

108

 

HANDELSBANKEN CAPITAL MARKETS, SVENSKA HANDELSBANKEN AB (publ)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

HSBC BANK PLC

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

NORDEA BANK AB (publ)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB (PUBL)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

109

 

The Lenders

 

For the
purpose of the Dutch Banking Act, each Lender expressly confirms the
representations given by it in Clause 19.4 (Dutch Obligor Regulatory
Compliance).

 

 

BARCLAYS BANK PLC

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

BNP PARIBAS

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

 

CITIBANK, N.A.

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

COMMERZBANK AKTIENGESELLSCHAFT, GROßKUNDENCENTER REGION 

MITTE

(as Revolving
Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

CREDIT SUISSE

(as Revolving
Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

110

 

CREDIT SUISSE, CAYMAN ISLANDS BRANCH

(as Dollar
Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

DEUTSCHE BANK LUXEMBOURG S.A.

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

DRESDNER BANK AG, NIEDERLASSUNG LUXEMBURG

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

HSBC BANK PLC

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

HVB BANQUE LUXEMBOURG SOCIÉTÉ ANONYME

(as Revolving
Bank and Euro Swingline Bank)

 

and

 

HVB BANQUE LUXEMBOURG SOCIÉTÉ ANONYME (ACTING THROUGH HVB NEW YORK
BRANCH)

(as Dollar
Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

111

 

NORDEA BANK AB (PUBL)

(as Revolving
Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

(as Revolving
Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

SVENSKA HANDELSBANKEN AB (PUBL)

(as Revolving
Bank, Dollar Swingline Bank, Euro Swingline Bank and SEK Swingline Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

ABN AMRO BANK N.V., NIEDERLASSUNG DEUTSCHLAND

(as Revolving
Bank and Euro Swingline Bank)

 

and

 

ABN AMRO BANK N.V.

(as Dollar
Swingline Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

BANCO BILBAO VIZCAYA ARGENTARIA S.A.

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

112

 

BANK OF AMERICA, N.A.

 

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of attorney)

  

 

 

DNB NOR BANK ASA

(as Revolving
Bank, Dollar Swingline Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

ING LUXEMBOURG S.A.

(as Revolving
Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

KBC BANK NV DUBLIN BRANCH

(as Revolving
Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

KBC BANK NV NEW YORK BRANCH

(as Dollar
Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

113

 

UBS LIMITED

(as Revolving
Bank and Euro Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

UBS LOAN FINANCE LLC

(as Dollar
Swingline Bank)

 

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

BANCA INTESA SPA.

(as Revolving
Bank)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

114

 

The Facility Agent

 

CREDIT SUISSE

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

The Dollar Swingline Agent

 

CREDIT SUISSE, CAYMAN ISLANDS BRANCH

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

The Euro Swingline Agent

 

CREDIT SUISSE

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

 

The SEK Swingline Agent

 

MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN, AB (PUBL)

 

	
  By:

  	
  MELISSA BACANI (under power of
  attorney)

  

 

115

 

SIGNATORIES

 

THE OBLIGORS

 

 

ABB CAPITAL B.V.

 

 

	
  By:

  	
  STORCK

  	
  JOHN KRUM

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
  DIRECTOR

  	
  MANAGING DIRECTOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  

 

 

ABB ASEA BROWN BOVERI LTD

 

 

	
  By:

  	
  ALEX HALL

  	
  RICHARD A. BROWN

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
  GROUP VICE PRESIDENT

  	
  ASSISTANT GENERAL COUNSEL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  

 

 

ABB LTD

 

 

	
  By:

  	
  URS ARNOLD

  	
  RICHARD A. BROWN

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
  GROUP VICE PRESIDENT

  	
  ASSISTANT GENERAL COUNSEL

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  

 

 

THE FACILITY AGENT

 

CREDIT SUISSE  

for and on behalf of itself, in its capacity as agent and for and on behalf of
the Finance Parties under the Credit Agreement

 

 

	
  By:

  	
  GARRETT LYNSKEY

  	
  SIOBHAN MCGRADY

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
  DIRECTOR

  	
  VICE-PRESIDENT

  

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  RESTATEMENT

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS &
  WARRANTIES

  	
  1

  
	
   

  	
   

  	
   

  
	
  4.

  	
  CONTINUITY

  	
  1

  
	
   

  	
   

  	
   

  
	
  5.

  	
  FURTHER
  ASSURANCE

  	
  2

  
	
   

  	
   

  	
   

  
	
  6.

  	
  FEES,
  COSTS AND EXPENSES

  	
  2

  
	
   

  	
   

  	
   

  
	
  7.

  	
  FINANCE
  DOCUMENT

  	
  2

  
	
   

  	
   

  	
   

  
	
  8.

  	
  COUNTERPARTS

  	
  2

  
	
   

  	
   

  	
   

  
	
  9.

  	
  THIRD
  PARTY RIGHTS

  	
  2

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
  2

  
	
   

  	
   

  	
   

  
	
  11.

  	
  GOVERNING
  LAW AND JURISDICTION

  	
  2

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1
  THE OBLIGORS

  	
  3

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2
  AMENDED AND RESTATED FACILITIES AGREEMENT

  	
  4

  

 

 

CONFORMED COPY

 

DATED  27 JUNE 2007

 

 

ABB LTD

and

THE
COMPANIES LISTED IN SCHEDULE 1

as the Obligors

 

CREDIT
SUISSE

as Facility Agent 

 

 

AMENDMENT
AND RESTATEMENT

AGREEMENT 
 in respect of a

MULTICURRENCY REVOLVING
CREDIT

AGREEMENT DATED 4 JULY 2005Exhibit 4.14

 

EXECUTION COPY

 

 

 

Dated          August 2007

 

SHARE SALE AND PURCHASE
AGREEMENT

 

relating
to the sale and purchase of all outstanding shares of

 

ABB
Lummus Global Inc. and ABB Oil & Gas Europe B.V.

 

between

 

ABB
HOLDINGS INC.

 

ABB
HOLDINGS B.V.

 

ABB
ASEA BROWN BOVERI LTD.

 

CHICAGO
BRIDGE & IRON COMPANY

 

CHICAGO
BRIDGE & IRON COMPANY B.V.

 

and

 

CHICAGO
BRIDGE & IRON COMPANY N.V.

 

 

 

White &
Case LLP

5 Old Broad
Street

London  EC2N 1DW

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  2

  
	
  2.

  	
   

  	
  SALE AND PURCHASE

  	
   

  	
  2

  
	
  3.

  	
   

  	
  CONSIDERATION

  	
   

  	
  2

  
	
  4.

  	
   

  	
  CONDITIONS TO COMPLETION

  	
   

  	
  5

  
	
  5.

  	
   

  	
  TERMINATION RIGHT

  	
   

  	
  9

  
	
  6.

  	
   

  	
  CERTAIN PRE-COMPLETION
  UNDERTAKINGS

  	
   

  	
  10

  
	
  7.

  	
   

  	
  COMPLETION AND RELATED MATTERS

  	
   

  	
  16

  
	
  8.

  	
   

  	
  THE SELLERS’ WARRANTIES

  	
   

  	
  18

  
	
  9.

  	
   

  	
  CB&I’S WARRANTIES

  	
   

  	
  20

  
	
  10.

  	
   

  	
  THE SELLERS’ LIMITATIONS OF
  LIABILITY

  	
   

  	
  20

  
	
  11.

  	
   

  	
  OTHER POST-COMPLETION
  UNDERTAKINGS

  	
   

  	
  21

  
	
  12.

  	
   

  	
  COVENANTS

  	
   

  	
  31

  
	
  13.

  	
   

  	
  GUARANTEES

  	
   

  	
  31

  
	
  14.

  	
   

  	
  COST-SHARING

  	
   

  	
  33

  
	
  15.

  	
   

  	
  OTHER PROVISIONS

  	
   

  	
  34

  
	
  SCHEDULE 1 DEFINITIONS AND
  INTERPRETATION

  	
   

  	
  40

  
	
  SCHEDULE 2 THE ACQUIRED GROUP

  	
   

  	
  51

  
	
  SCHEDULE 3 REGULATORY CONDITION

  	
   

  	
  63

  
	
  SCHEDULE 4 COMPLETION
  ARRANGEMENTS

  	
   

  	
  64

  
	
  SCHEDULE 5 THE SELLERS’
  WARRANTIES

  	
   

  	
  66

  
	
  SCHEDULE 6 CB&I’S WARRANTIES

  	
   

  	
  78

  
	
  SCHEDULE 7 THE SELLERS’
  LIMITATIONS OF LIABILITY

  	
   

  	
  80

  
	
  SCHEDULE 8 TAX COVENANT

  	
   

  	
  85

  
	
  SCHEDULE 9 ADDITIONAL COVENANT

  	
   

  	
  100

  

 

i

 

THIS SHARE SALE AND
PURCHASE AGREEMENT is made on          August 2007

 

BETWEEN:

 

(1)                                                         ABB HOLDINGS INC., a Delaware corporation
whose principal place of business is at 501 Merritt 7, 6th Floor, PO Box 5308,
Norwalk, CT 06856-5308, USA (the “US Seller”);

 

(2)                                                         ABB HOLDINGS B.V., a company organised under
the laws of The Netherlands whose principal place of business is at
Burgemeester Haspelslaan 65 5/F, 1181 NB Amstelveen, The Netherlands (the “NL Seller”, and together with
the US Seller, each a “Seller” and
collectively, the “Sellers”);

 

(3)                                                         ABB ASEA BROWN BOVERI LTD., a company
organised under the laws of Switzerland whose principal place of business is at
Affolternstrasse 44, CH-8050 Zurich, Switzerland (“ABB”);

 

(4)                                                         CHICAGO BRIDGE & IRON COMPANY, a Delaware
corporation whose principal place of business is at One CB&I Plaza, 2103
Research Forest, The Woodlands, TX 77380, USA (the “US Purchaser”);

 

(5)                                                         CHICAGO BRIDGE & IRON COMPANY B.V., a
company organised under the laws of The Netherlands whose principal place of
business is at Polarisavenue 31, 2132 JH Hoofddorp, The Netherlands (the “NL Purchaser”, and together
with the US Purchaser, each, a “Purchaser”
and collectively, the “Purchasers”);
and

 

(6)                                                         CHICAGO BRIDGE & IRON COMPANY N.V., a
company organised under the laws of The Netherlands whose principal place of
business is at Polarisavenue 31, 2132 JH Hoofddorp, The Netherlands (“CB&I”).

 

WHEREAS:

 

(A)                                                       The
US Seller is the legal and beneficial owner of 61,160 shares of
common stock, with no par value, of ABB Lummus Global Inc. (the “Existing US Shares”), a
Delaware corporation whose principal place of business is at 1515 Broad Street,
Bloomfield NJ 07003, USA (the “US Company”),
such Existing US Shares being all of the outstanding shares of capital
stock of the US Company as at the date of this Agreement.

 

(B)                                                       The
NL Seller is the legal and beneficial owner of 225 shares, with a
nominal value of one hundred euros (€100) per share, in the share capital of
ABB Oil & Gas Europe B.V. (the “Existing NL Shares”
and together with the Existing US Shares, the “Existing
Shares”), a company organised under the laws of The Netherlands
whose principal place of business is at Oostduinlaan 75, 2596 JJ The
Hague, The Netherlands (the “NL Company”
and together with the US Company, each, a “Company”
and collectively, the “Companies”),
such Existing NL Shares being all of the issued shares in the capital of
the NL Company as at the date of this Agreement.

 

(C)                                                       The
Sellers desire to sell, and the Purchasers desire to purchase, the Shares (as
defined below), in each case on the terms and subject to the conditions of this
Agreement.

 

 

IT
IS AGREED as follows:

 

1.                                                              DEFINITIONS
AND INTERPRETATION

 

1.1                                                       The terms and expressions used in this Agreement
shall have the respective meanings set out in Schedule 1 (Definitions and Interpretation).

 

1.2                                                       In this Agreement, unless the context otherwise
requires, references to Clauses and Schedules are references to Clauses of, and
Schedules to, this Agreement and references to paragraphs and Parts are
references to paragraphs and Parts of the Schedules.  The Schedules are incorporated into and form
an integral part of this Agreement.

 

1.3                                                       The table of contents and headings are inserted for
convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

2.                                                              SALE
AND PURCHASE

 

2.1                                                       Subject to the terms and conditions of this
Agreement:

 

(a)                                 the
US Seller agrees to sell the US Shares to the US Purchaser, and
the US Purchaser agrees to purchase the US Shares from the
US Seller; and

 

(b)                                 the
NL Seller agrees to sell the NL Shares to the NL Purchaser, and
the NL Purchaser agrees to purchase the NL Shares from the
NL Seller,

 

in each case at Completion.

 

2.2                                                       The Shares shall be sold by the Sellers free from
all Encumbrances, other than Encumbrances arising pursuant to this Agreement,
and together with all rights attaching to the Shares as at Completion
(including the right to receive and retain all dividends or distributions
declared, made or paid on or after Completion).

 

2.3                                                       None of the Sellers and the Purchasers shall be
obliged to complete the sale and purchase of any of the Shares unless the sale
and purchase of all the Shares is completed simultaneously.

 

3.                                                              CONSIDERATION

 

3.1                                                       Purchase Price

 

3.1.1                                             The
consideration for the sale of the US Shares (the “US Purchase Price”) shall be the
sum of:

 

(a)                                 two
hundred and thirteen million dollars ($213,000,000) (the “US Base Equity Price”); plus

 

(b)                                 interest
to be paid in dollars on the US Base Equity Price at the rate of eight
per cent. (8%) per annum for the period commencing on, and including,
1 January 2007 up to, and including, the Completion Date; plus

 

2

 

(c)                                  an
amount to be paid in dollars which is equal to the aggregate amount of all
Inter-Company Debt owed by any US Acquired Company that is converted into
equity or capital of such US Acquired Company (whether or not shares of,
or other equity interests in, such US Acquired Company are issued in
connection therewith):

 

(i)                                     during
the period commencing on, and including, 1 January 2007 up to, and
including, the day immediately prior to the date of this Agreement as set out
in Schedule 3.1.1(c)(i) to the Sellers’ Disclosure Letter; or

 

(ii)                                  during
the period commencing on, and including, the date of this Agreement up to, and
including, the Completion Date to the extent that the same are approved by the
Purchasers as required pursuant to Clause 6.2.2,

 

(each such amount thus converted, a “US Debt Conversion Amount”);
plus

 

(d)                                 an
amount to be paid in dollars which is equal to the aggregate amount of all
amounts paid, subscribed, injected or contributed to the capital of, or
otherwise provided by way of equity to, any US Acquired Company (whether
or not shares of, or other equity interests in, such US Acquired Company
are issued in connection therewith) by members of the ABB Group:

 

(i)                                     during
the period commencing on, and including, 1 January 2007 up to, and
including, the day immediately prior to the date of this Agreement, as set out
in Schedule 3.1.1(d)(i) to the Sellers’ Disclosure Letter; or

 

(ii)                                  during
the period commencing on, and including, the date of this Agreement up to, and
including, the Completion Date, to the extent that the same are approved by the
Purchasers as required pursuant to Clause 6.2.2,

 

(each such amount, a “US Capital
Increase Amount”); plus

 

(e)                                  interest
to be paid in dollars on each US Debt Conversion Amount and each US Capital
Increase Amount at the rate of eight per cent. (8%) per annum for the
period commencing on, and including the relevant date of the event giving rise
to such US Debt Conversion Amount or US Capital Increase Amount, as
the case may be, up to, and including, the Completion Date.

 

3.1.2                                             The
consideration for the sale of the NL Shares (the “NL Purchase Price”, and together
with the US Purchase Price, the “Purchase
Price”) shall be the sum of:

 

(a)                                 two
hundred and twenty million seven hundred and eighty three thousand and forty
four euros (€220,783,044) (the “NL Base
Equity Price”); plus

 

(b)                                 interest
to be paid in euros on the NL Base Equity Price at the rate of eight
per cent. (8%) per annum for the period commencing on, and including,
1 January 2007 up to, and including, the Completion Date; plus

 

(c)                                  an
amount to be paid in euros which is equal to the aggregate amount of all
Inter-Company Debt owed by any NL Acquired Company that is converted into
equity or capital of such NL Acquired Company (whether or not shares of,
or other equity interests in, such NL Acquired Company are issued in
connection therewith):

 

3

 

(i)                                     during
the period commencing on, and including, 1 January 2007 up to, and
including, the day immediately prior to the date of this Agreement as set out
in Schedule 3.1.2(c)(i) to the Sellers’ Disclosure Letter; or

 

(ii)                                  during
the period commencing on, and including, the date of this Agreement up to, and
including, the Completion Date to the extent that the same are approved by the
Purchasers as required pursuant to Clause 6.2.2,

 

(each such amount thus converted, an “NL Debt Conversion Amount”);
plus

 

(d)                                 an
amount to be paid in euros which is equal to the aggregate amount of all
amounts paid, subscribed, injected or contributed to the capital of, or
otherwise provided by way of equity to, any NL Acquired Company (whether
or not shares of, or other equity interests in, such NL Acquired Company
are issued in connection therewith) by members of the ABB Group:

 

(i)                                     during
the period commencing on, and including, 1 January 2007 up to, and
including, the day immediately prior to the date of this Agreement as set out
in Schedule 3.1.2(d)(i)to the Sellers’ Disclosure Letter; or

 

(ii)                                  during
the period commencing on, and including, the date of this Agreement up to, and
including, the Completion Date to the extent that the same are approved by the
Purchasers as required pursuant to Clause 6.2.2,

 

(each such amount an “NL Capital
Increase Amount”); plus

 

(e)                                  interest
to be paid in euros on each NL Debt Conversion Amount and NL Capital
Increase Amount at the rate of eight per cent. (8%) per annum for the
period commencing on, and including, the relevant date of the event giving rise
to such NL Debt Conversion Amount or NL Capital Increase Amount, as
the case may be, up to, and including, the Completion Date.

 

3.1.3                                             Save
as provided in Clause 3.1.6, the Purchase Price shall not be subject to
any adjustment.

 

3.1.4                                             The
Purchase Price shall be paid at Completion in accordance with Clause 7.4.2
and Part 2 of Schedule 4 (Completion Arrangements).

 

3.1.5                                             The
Purchase Price shall be allocated as follows:

 

(a)                                 the
US Purchase Price shall be allocated to the US Shares; and

 

(b)                                 the
NL Purchase Price shall be allocated to the NL Shares.

 

The Sellers and
the Purchasers shall, and shall use all reasonable endeavours to ensure that
their respective Affiliates will, adopt and utilise the agreed allocation for
all purposes (including for Tax purposes). 
None of the Sellers and the Purchasers, nor any of their respective
Affiliates, shall file any Tax Return or other document or otherwise take any
position which is inconsistent with the allocation set out in this
Clause 3.1.5, except to the extent that such position is required to
comply with Applicable Law (in which case the relevant Party shall give
reasonable advance notice in writing to the other Party prior to any such
inconsistent Tax Return or document being filed, or such inconsistent position
otherwise being taken).

 

4

 

3.1.6                                             Any
amount paid by the Sellers to, or at the direction of, the Purchasers in
respect of any claim for any breach of this Agreement shall, to the extent
permitted by Applicable Law, be deemed to be a reduction of the Purchase Price.

 

3.2                                                       Inter-Company Debt

 

3.2.1                                             The
Sellers shall procure that the Inter-Company Debt owed by any member of the ABB
Group as at the Completion Date is, at the direction of the Acquired Company to
whom the monies are owed, paid to the account of the member(s) of the ABB
Group to which any Acquired Company owes any Inter-Company Debt in settlement
(full or partial, as the case may be) of such Inter-Company Debt in accordance
with Clause 7.4.1 and Part 1 of Schedule 4 (Completion Arrangements).

 

3.2.2                                             The
Purchasers shall procure that the Inter-Company Debt owed by any Acquired
Company as at the Completion Date as set out in the Inter-Company Debt
Statement (less the amount, if any, of Inter-Company Debt owed to such Acquired
Company that such Acquired Company has directed, as provided in
Clause 3.2.1, be paid to any member of the ABB Group) is paid to the
account notified by the US Seller to the Purchasers in accordance with
Clause 7.2.1 on behalf of the relevant members of the ABB Group at
Completion in accordance with Clause 7.4.2 and Part 2 of Schedule 4 (Completion Arrangements). 
The receipt of such monies shall be a complete discharge to the relevant
Acquired Companies, and the US Seller shall indemnify each Acquired
Company against any liability it may suffer, and all costs and expenses it may
reasonably incur, as a result of any failure on the part of the US Seller
to account to the relevant members of the ABB Group for the monies paid by the
Acquired Companies in accordance with this Clause 3.2.2.

 

3.2.3                                             All
payments or repayments in accordance with this Clause 3.2 shall be made in
dollars.  Inter-Company Debt that is
expressed in a currency other than dollars shall, for the purposes of
determining the amount of such Inter-Company Debt in dollars, be converted into
dollars at:

 

(a)                                 the
rate which appears on the Reuters Screen FXBLFIX01 at 11:00 a.m. (London
time) on the Completion Date;

 

(b)                                 if
no such rate is quoted on the Reuters Screen FXBLFIX01 at such time, the rate
which appears on the Reuters Screen FXFIX at 11:00 a.m. (London time) on
the Completion Date; or

 

(c)                                  if
no such rate is quoted on the Reuters Screen FXFIX at such time, the mid-point
closing rate quoted in the Financial Times for the Business Day immediately preceding
the Completion Date.

 

4.                                                              CONDITIONS
TO COMPLETION

 

4.1                                                       Conditions and Waiver

 

4.1.1                                             The
sale and purchase of the Shares and the obligations of the Sellers and the
Purchasers to effect Completion are in all respects conditional upon the
following (the “Conditions to Completion”):

 

(a)                                 the
consents and authorisations by or of, and filings with and notifications to,
the relevant Competition Authorities under the Competition Laws set out in
Schedule 3 (Regulatory Condition) shall have been
obtained or effected, and all applicable

 

5

 

waiting periods under such Competition Laws shall
have expired or been terminated and, where applicable, all such consents and
authorisations shall be in full force and effect (the “Regulatory Condition”);

 

(b)                                 the
approval of the shareholders of CB&I given by way of ordinary resolution
passed in general meeting (the “Shareholder
Approval Condition”);

 

(c)                                  the
consummation of the Transactions shall not be restrained, enjoined or otherwise
prohibited by any Order and there shall not have been any Applicable Law
enacted, promulgated or deemed applicable to the Transactions after the date of
this Agreement by any Governmental Entity that prevents the consummation of the
Transactions or has the effect of making such consummation illegal; and

 

(d)                                 a
member of the ABB Group shall have paid two hundred and four million dollars
($204,000,000) to the CE Asbestos PI Trust, on terms that no member of the
Acquired Group is under any liability to reimburse all or any of such sum (the “Asbestos Condition”).

 

4.1.2                                             Condition 4.1.1(c) will
be deemed to be satisfied if no such Order or Applicable Law as is referred to
in Clause 4.1.1(c) has been issued or enacted, promulgated or deemed
applicable by the date scheduled for Completion in accordance with
Clause 7.3.

 

4.1.3                                             The
Conditions to Completion may only be waived by the written agreement of the
Sellers and the Purchasers.

 

4.2                                                       Endeavours to Fulfil
Regulatory Condition

 

4.2.1                                             Each
of the Parties shall take all reasonable steps necessary to ensure that the
Regulatory Condition is fulfilled as promptly as practicable, and in any event
prior to the Long-Stop Date.

 

4.2.2                                             In
particular, each Party acknowledges and agrees that it shall, at its own cost:

 

(a)                                 as
promptly as practicable, but in no event later than the
tenth (10th) Business Day following the date of this Agreement, take
all actions necessary to make or file, or cause to be made or filed, all
submissions, notifications or filings required to be made or filed by it or any
of its Affiliates in connection with the Transactions to or with those
Competition Authorities having jurisdiction under the Competition Laws referred
to in Schedule 3 (Regulatory Condition);

 

(b)                                 at
the earliest practicable date comply with any formal or informal request for
additional information or documentary material (or any properly reduced scope
of any such formal or informal request) received by it or any of its Affiliates
from any such Competition Authority in connection with the Transactions;

 

(c)                                  consult
and cooperate with the other Party, and consider in good faith the views of the
other Party, in connection with any analyses, appearances, presentations,
memoranda, briefs, arguments, opinions and proposals made or submitted by or on
behalf of it or any of its Affiliates to any such Competition Authority in
connection with the Transactions;

 

(d)                                 promptly
notify the other Party of any written communication made to or received by it
from any such Competition Authority in connection with the Transactions; and

 

6

 

(e)                                  subject
to Applicable Law and to the extent reasonably practicable:

 

(i)                                     permit
the other Party to review in advance any proposed written communication to any such
Competition Authority and incorporate the other Party’s reasonable comments;
and

 

(ii)                                  not
agree to participate in any substantive meeting or discussion with any such
Competition Authority in respect of any filing, investigation or inquiry
concerning this Agreement or the Transactions unless it has consulted with the
other Party in advance and given the other Party the opportunity to attend; and

 

(iii)                               furnish
the other Party with copies of all correspondence, filings and written
communications between it and its Affiliates, and their respective
Representatives, on one hand, and any such Competition Authority or its
respective staff, on the other hand, with respect to this Agreement or the
Transactions,

 

provided that the
Purchasers shall be responsible for the payment of all filing or similar fees
required by any relevant Competition Authority for the purposes of securing
satisfaction of the Regulatory Condition.

 

4.2.3                                             The
Purchasers shall not, and shall cause their Affiliates not to, acquire or agree
to acquire (directly or indirectly and whether by merger, consolidation,
purchase or otherwise) any business, any corporation, company, partnership,
association or other business organisation or division thereof or any assets if
the entering into of a definitive agreement relating to, or the consummation
of, such transaction or arrangement would reasonably be expected to result in
any delay in the Regulatory Condition being satisfied, or increase the risk of
the Regulatory Condition not being satisfied prior to the Long-Stop Date.

 

4.2.4                                             The
Purchasers shall take all actions requested by any Competition Authority, or as
necessary to resolve any objections that may be asserted by any Competition
Authority, with respect to this Agreement or the Transactions.  Without limiting the generality of the
foregoing, the Purchasers shall:

 

(a)                                 at
the Purchasers’ sole cost, comply with all restrictions and conditions, if any,
imposed by any Competition Authority as a requirement for granting any
necessary clearance or terminating any applicable waiting period in connection
with the Transactions, including agreeing to sell, divest, hold separate,
license, cause a third party to acquire, or otherwise dispose of, any
subsidiary, operations, businesses or assets of the Purchasers or any of their
Affiliates, or of any Acquired Company, contemporaneously with or after
Completion and regardless as to whether a third party purchaser has been
identified or approved prior to Completion (a “Divestiture”) and entering into any Order or other
agreement to effectuate any of the foregoing;

 

(b)                                 terminate
any Contract or other business relationship as may be required to obtain any
necessary clearance of any Competition Authority or to obtain termination of
any applicable waiting period under any Competition Laws;

 

(c)                                  not
extend any waiting period or enter into any agreement or understanding with any
Competition Authority, except with the prior written consent of the Sellers;
and

 

7

 

(d)                                 oppose
fully and vigorously any Action, including appealing properly any adverse
decision or order by any Competition Authority, or, if requested by the
Sellers, commence or threaten to commence and pursue vigorously any Action
reasonably believed to be helpful in obtaining authorisation from Competition
Authorities or in terminating any outstanding Action, it being understood that
the costs and expenses of all such Actions (including the costs and legal fees
of the Sellers) shall be borne by the Purchasers.

 

4.2.5                                             In
furtherance of the foregoing, the Purchasers shall negotiate in good faith with
all Competition Authorities and all third parties in connection with a
Divestiture or any other matter referred to in Clause 4.2.4 with a view to
entering into definitive agreements with all such Persons within
sixty (60) days of receipt by the Purchasers of any request for
additional documents and information or the commencement of a second-phase
investigation by any Competition Authority.

 

4.2.6                                             Notwithstanding
anything in this Clause 4.2 to the contrary, the Purchasers shall not be
obliged to take any step which would be materially to the detriment of the
CB&I Group or the Acquired Group (in either case taken as a whole), and in
particular shall not be obliged to make any Divestiture if such Divestiture
concerns assets, subsidiaries or businesses of the Acquired Group that, in the
most recently completed fiscal year, had sales that, when combined with the
sales in such fiscal year of all other assets, subsidiaries or businesses of
the Acquired Group the subject of a Divestiture, exceeded one hundred million
dollars ($100,000,000).

 

4.3                                                       Endeavours to Fulfil
Shareholder Approval Condition

 

4.3.1                                             CB&I
shall, at its own cost, use all reasonable endeavours to procure the satisfaction
of the Shareholder Approval Condition as promptly as practicable following the
date of this Agreement (allowing for any restrictions on the dissemination of
information imposed by any Competition Authority, should such be the case).

 

4.3.2                                             If
the Shareholder Approval Condition has not been satisfied on or prior to the
Long-Stop Date, CB&I shall pay to the Sellers a break fee (the “Break Fee”) of twenty five million
dollars ($25,000,000).  The Break Fee
shall be paid in full by telegraphic transfer in immediately available cleared
funds to the account nominated by the Sellers to CB&I within three (3) Business
Days of the failure by CB&I to satisfy the Shareholder Approval Condition.

 

4.3.3                                             The
Parties agree that the Break Fee is a genuine pre-estimate of the loss and
damage (including the fees, costs and expenses incurred by the Sellers in
respect of this Agreement) which would be suffered by the Sellers in connection
with the termination of this Agreement.

 

4.3.4                                             The
Sellers undertake to provide to CB&I, in a timely manner, all such
information and assistance as CB&I may reasonably require for the purposes
of enabling CB&I to prepare and file proxy statements and otherwise to
enable CB&I to fulfil its obligations under this Clause 4.3; provided
that neither the Sellers nor any member of the ABB Group shall be liable for
any liability suffered or any damage, cost or expense incurred by CB&I in
connection with such proxy statement or in respect of any information or
assistance provided by the Sellers in accordance with this
Clause 4.3.4.  CB&I shall bear
the reasonable costs of Ernst & Young for this purpose.

 

8

 

4.4                                                         Obligation to Fulfil
Asbestos Condition

 

ABB undertakes to
CB&I that it will procure that the Asbestos Condition is satisfied by no
later than the third (3rd) Business Day following the satisfaction of the
Regulatory Condition and the Shareholder Approval Condition.

 

4.5                                                         Termination

 

4.5.1                                                If
Completion has not occurred by 5:00 p.m. (London time) on 28 February 2008
or, if notice is served in accordance with Clause 5.1 after 31 January 2008,
by 5:00 p.m. (London time) on 31 March 2008 (the “Long-Stop Date”), either Party may, in
its sole discretion, at any time thereafter, terminate this Agreement (other
than the Surviving Provisions) by giving written notice to that effect to the
other Party, upon receipt of which this Agreement (other than the Surviving
Provisions) shall terminate. 
Notwithstanding the foregoing, the right to terminate this Agreement
under this Clause 4.5.1 shall not be available to any Party whose failure
to perform any of its obligations under this Agreement has been the cause of,
or resulted in, the failure of Completion to occur on or before the Long-Stop
Date.

 

4.5.2                                                In
the event that this Agreement is terminated in accordance with
Clause 4.5.1, neither Party shall have any claim under this Agreement of
any nature whatsoever against the other Party (except in respect of any rights
and liabilities which have accrued before termination in relation to antecedent
breaches and except in relation to any of the Surviving Provisions).

 

5.                                                              TERMINATION
RIGHT

 

5.1                                                         If at any time after the date of this Agreement and
prior to Completion the Purchasers (or either of them) become aware of any
breach(es) of the Sellers’ Warranties and/or any breach(es) by the Sellers of
their obligations under Clause 6.2 such that, if Completion were to have
occurred, the Purchasers (or either of them) would have been entitled to
recover from the Sellers, by way of damages for breach of the Sellers’
Warranties and/or Clause 6.2 (as applicable), an amount in excess of fifty
million dollars ($50,000,000) (ignoring for this purpose the effect of
paragraph 3.1 of Schedule 7 (The
Sellers’ Limitations of Liability)), then the Purchasers may, by
notice in writing to the Sellers, inform the Sellers of such breach(es),
specifying in reasonable detail the alleged breach(es), including the amount(s) of
the claim(s) arising from such breach(es).

 

5.2                                                         Upon receipt of notice in accordance with Clause
5.1, the Sellers shall have fifteen (15) Business Days to rectify the
breach(es) specified in such notice.  If
the Sellers fail to rectify such breach(es) to the reasonable satisfaction of
the Purchasers within such period, or if rectification of a breach is not
possible, then the Sellers may, in their sole discretion, elect:

 

(a)                                  in
the case of each claim for breach of Clause 6.2 specified in such notice, to
waive the provisions of paragraph 3.1 of Schedule 7 (The Sellers’
Limitations of Liability) such that such paragraph 3.1 shall be read
as if to exclude such claim from the fifty million dollar ($50,000,000)
limitation of liability referred to therein; and

 

(b)                                 in
the case of claims for breach of any of the Sellers’ Warranties specified in
such notice:

 

9

 

(i)                                     if
the aggregate amount of all such claims, when substantiated, equals or exceeds
forty million dollars ($40,000,000), that the maximum aggregate liability of
the Sellers set out in paragraph 3.1 of Schedule 7 (The Sellers’ Limitations of
Liability) shall be equal to the aggregate amount of all such claims when
substantiated plus ten million dollars ($10,000,000); or

 

(ii)                                  if
the aggregate amount of all such claims, when substantiated, is less than forty
million dollars ($40,000,000), that the maximum aggregate liability of the
Sellers set out in paragraph 3.1 of Schedule 7 (The Sellers’ Limitations of Liability) shall be fifty
million dollars ($50,000,000),

 

provided
that, for the avoidance of doubt, any such election must be made in respect of
all claims notified under Clause 5.1, and not just some only.

 

5.3                                                         For the avoidance of doubt, the Purchasers shall be
permitted to update any notice served under Clause 5.1 to include details of
any further breach(es) of the Sellers’ Warranties and/or by the Sellers of
their obligations under Clause 6.2, and the provisions of Clause 5.2 shall
apply in relation to the original (or previously updated) notice as so updated,
save that the fifteen (15) days shall run from the date of the updated notice,
rather than from the date of the original (or previously updated) notice.

 

5.4                                                         If the Sellers do not make an election in accordance
with Clause 5.2 within twenty (20) Business Days of receipt of notice in
accordance with Clause 5.1, the Purchasers shall not be obliged to
complete the purchase of the Shares, and shall have the right to terminate this
Agreement by giving notice in writing to the Sellers by not later than twenty
five (25) Business Days after service of notice in accordance with Clause 5.1.

 

5.5                                                         In the event that this Agreement is terminated in
accordance with Clause 5.4, neither Party shall have any claim under this
Agreement of any nature whatsoever against the other Party (except in respect
of any rights and liabilities which have accrued before termination in relation
to antecedent breaches and except in relation to any of the Surviving
Provisions).

 

6.                                                              CERTAIN
PRE-COMPLETION UNDERTAKINGS

 

6.1                                                         Access to Information
and Personnel

 

6.1.1                                                From
the date hereof to Completion, the Sellers shall cause each Acquired Company to
afford to the Purchasers and the Bidder Representatives such reasonable access
as they may from time to time request, during normal business hours and in a
manner that is not likely to be disruptive to the operations of such Acquired
Company, to such Acquired Company’s personnel, properties, books and records
for the purposes of facilitating an orderly transition of the ownership of the
Acquired Group after Completion; provided that no Seller or Acquired
Company shall be required to provide any information or access that such Person
believes could violate Applicable Law, including Competition Laws, or the terms
of any confidentiality agreement or confidentiality provision in any Contract
or adversely impact any privilege, including legal professional privilege.

 

6.1.2                                                All
information received by, or made available to, the Purchasers, their Affiliates
and the Bidder Representatives under this Clause 6.1 or otherwise pursuant
to this Agreement will be held by the Purchasers, their Affiliates and the
Bidder Representatives as “Evaluation Material,” as defined in, and pursuant to
the terms of, the Confidentiality Agreement, which is incorporated herein by
reference.

 

10

 

6.1.3                                                It
is expressly understood and agreed that, without the prior written consent of
the Sellers which consent may be granted or withheld in the Sellers’ sole and
absolute discretion, nothing in this Agreement shall be construed to grant the
Purchasers, any of their Affiliates or any Bidder Representative the right to
perform any Phase I, Phase II or other environmental testing on any of the
properties of any Acquired Company prior to Completion.

 

6.2                                                         Conduct of the
Business

 

6.2.1                                                Except
as may be required or permitted by this Agreement or as may be required by
Applicable Law or any Governmental Entity, the Sellers will take all action in
their capacity as shareholders of the Companies to cause the Acquired Group to
conduct its business in all material respects in the ordinary course from the
date of this Agreement to Completion.

 

6.2.2                                                Clause 6.2.1
notwithstanding and except as may be required or permitted by this Agreement or
as may be required by Applicable Law or any Governmental Entity, the Sellers
shall procure that, from the date of this Agreement to Completion, no Acquired
Company shall do any of the following without the prior written consent of the
Purchasers (such consent not to be unreasonably withheld or delayed):

 

(a)                                  amend
its certificate of incorporation or its by-laws (or comparable governing
documents);

 

(b)                                 issue
or sell any of its shares or other equity interests, or issue or sell any
securities convertible into or exchangeable for, or options, warrants or rights
to purchase or subscribe for, any such shares or equity interests, or otherwise
take any action which would give rise to any US Debt Conversion Amount or
US Capital Increase Amount or any NL Debt Conversion Amount or
NL Capital Increase Amount;

 

(c)                                  declare,
make or pay any dividend or other distribution, or make any redemption,
purchase or other acquisition of any of its shares or other ownership
interests, other than dividends or distributions to another Acquired Company;

 

(d)                                 make
any payment of a kind referred to in paragraph 6.3(b) of Schedule 5 (The Sellers’ Warranties), other than, for the avoidance of
doubt, Permitted Payments;

 

(e)                                  save
for any interest rates which vary in accordance with their terms, agree to vary
any interest rate payable in respect of any Inter-Company Debt, or pay any fees
in respect of any such debt;

 

(f)                                    other
than the sale of inventory in the ordinary course of trade, sell, lease or
otherwise dispose of (including by way of licence) any of its properties or
assets, other than any assets having a value of less than one hundred thousand
dollars ($100,000) individually;

 

(g)                                 create
any Encumbrance over all or any of its properties or assets, other than
Permitted Encumbrances;

 

(h)                                 amend
in any material respect or terminate any Material Contract or enter into a
Contract that: (i) had such Contract been entered into prior to the date
hereof, would have been a Material Contract; (ii) does not expressly
exclude an Acquired Company’s liability for consequential damages; or (iii) is
a “lump sum turnkey EPC contract”;

 

11

 

(i)                                     incur
any Indebtedness, other than unsecured short-term bank Indebtedness on
arms-length terms or, until the delivery of the Inter-Company Debt Statement in
accordance with Clause 7.1.1, Indebtedness that will constitute
Inter-Company Debt;

 

(j)                                     give
a guarantee, indemnity or other agreement to secure, or incur financial or
other obligations with respect to, another Person’s obligation (other than any
other Acquired Company);

 

(k)                                  make
any acquisitions of any corporation, company, partnership, other business
organisation or any business or any division thereof;

 

(l)                                     enter
into any agreement in relation to the potential relocation of the office from
Oostduinlaan 75, 2596 JJ The Hague, The Netherlands;

 

(m)                               incur
any capital expenditure in excess of one million five hundred thousand dollars
($1,500,000) in the aggregate, other than as budgeted for in the current annual
budget of the Acquired Group;

 

(n)                                 discontinue
any insurance policy maintained by it as at the date of this Agreement, unless
any such insurance policy is replaced with insurance coverage on reasonably
comparable terms, or otherwise violate any such policy which would make such
policy void or voidable or fail to report any losses to all appropriate
insurance carriers in accordance with policy requirements;

 

(o)                                 except
with respect to the adoption of the ABB Lummus Global Inc. Retirement Income
Restoration Plan (which shall be the ABB Lummus Global Inc. portion of the ABB
Retirement Income Restoration Plan) and other than on a case by case basis: (i) amend
the terms of employment or engagement of its employees (including as regards
pension plans and other employee benefits, and whether or not contractual),
other than in accordance with current contractual obligations or practice; or (ii) provide
gratuitous payments or benefits to its employees or any of their dependents,
other than in accordance with current practice;

 

(p)                                 (i) commence
(or threaten in writing to commence) any litigation or arbitration proceedings
(including by making any claim in writing for, or otherwise intimating in
writing, breach of any Material Contract), save for debt collection in the
ordinary course of business, or (ii) settle or agree to settle any
litigation or arbitration proceedings involving amounts likely to exceed two
million dollars ($2,000,000) individually, save for debt collection in the
ordinary course of business and the settlement of the litigation involving
Williams Field Services, as more particularly described in the Sellers’
Disclosure Letter; or

 

(q)                                 agree,
or make an offer capable of acceptance, to take any of the foregoing actions in
respect of which it is restricted by the provisions of this Clause 6.2.2.

 

6.2.3                                                Notwithstanding
anything contained in this Agreement to the contrary, each Acquired Company
shall be permitted to:

 

(a)                                  maintain,
up to the Completion Date, its participation in the cash management system of
the ABB Group, the cash management procedures as currently conducted by the
Acquired Group, on the one hand, and members of the ABB Group, on the other
hand, and, until the date of delivery of the Inter-Company Debt Statement in
accordance with Clause 7.1.1, periodically settle Inter-Company Debt between
members of the Acquired Group, on the one hand,

 

12

 

and members of the ABB Group, on the other hand, in
each case consistent with past practices;

 

(b)                                 until
the date of delivery of the Inter-Company Debt Statement in accordance with
Clause 7.1.1, purchase additional shares of, or other equity interests in,
any other Acquired Company from any third party; provided that such
acquisition is effected on an arms-length basis; and

 

(c)                                  settle
trade receivables and trade payables between members of the Acquired Group, on
the one hand, and members of the ABB Group, on the other hand, in each case
consistent with past practices.

 

6.2.4                                                Nothing
in this Agreement shall be construed to give to the Purchasers, directly or
indirectly, any rights to control or direct in any way any operations of any
Acquired Company prior to Completion. 
Prior to Completion, the Sellers shall be entitled to exercise,
consistent with the terms and conditions of this Agreement, complete control
and supervision of the operations of the Acquired Group.

 

6.2.5                                                Nothing
in this Agreement shall be construed to require any member of the ABB Group to
provide, directly or indirectly, any funds to any Acquired Company or enter
into any guarantee or other surety in support of the business of any Acquired
Company.

 

6.3                                                         Parent Guarantees and
Third-Party Guarantees

 

6.3.1                                                Pending
Completion, CB&I shall use all reasonable endeavours to cause each relevant
member of the ABB Group to be irrevocably released in full (such release to be
in form and substance reasonably satisfactory to the Sellers) from its
obligations with respect to each:

 

(a)                                  parent
guarantee or other similar arrangement granted, issued or entered into by any
member of the ABB Group in support of the Business or any Joint Venture and: (i) outstanding
as at the date of this Agreement (being (A) those listed in
Schedule 6.3.1(a) of the Sellers’ Disclosure Letter and (B) those
which were inadvertently omitted from Schedule 6.3.1(a) of the
Sellers’ Disclosure Letter (if any); or (ii) entered into in the ordinary
course of the Business by any member of the ABB Group after the date hereof,
but prior to Completion, in accordance with Clause 6.3.6 (including
renewals and extensions of any of the foregoing in the ordinary course of the
Business granted in accordance with Clause 6.3.7) (collectively, the “Parent Guarantees”); and

 

(b)                                 letter
of credit, guarantee, indemnity, security, insurance bond, surety bond,
performance bond or other similar arrangement granted, issued or entered into
by any third party in support of the Business or any Joint Venture and: (i) outstanding
as at the date of this Agreement (being (A) those listed in
Schedule 6.3.1(b) of the Sellers’ Disclosure Letter and (B) those
which were inadvertently omitted from Schedule 6.3.1(b) of the
Sellers’ Disclosure Letter (if any); or (ii) issued or entered into in the
ordinary course of the Business after the date hereof, but prior to Completion
in accordance with Clause 6.3.6 (including renewals and extensions of any
of the foregoing in the ordinary course of the Business granted in accordance
with Clause 6.3.7) (collectively, the “Third-Party Guarantees”),

 

in each case effective as at Completion.

 

13

 

6.3.2                                                Each
of ABB and the Sellers undertakes to CB&I to provide CB&I with all
reasonable assistance in connection with the efforts of CB&I to fulfil its
obligations under Clause 6.3.1.

 

6.3.3                                                In
furtherance of its obligations under Clause 6.3.1, CB&I shall offer,
or procure its Affiliates (as applicable) to offer, “like for like” support as
may be reasonably requested by the beneficiary of each such Parent
Guarantee/Third Party Guarantee.

 

6.3.4                                                To
the extent that CB&I has been unable to procure the release of the relevant
member of the ABB Group from its obligations with respect to a Parent Guarantee
listed in schedule 6.3.1(a) of the Sellers’ Disclosure Letter or in the
schedule referred to in Clause 7.2.2(a) or a Third-Party Guarantee listed
in schedule 6.3.1(b) of the Sellers’ Disclosure Letter or in the schedule
referred to in Clause 7.2.2(a) prior to Completion as contemplated by
Clause 6.3.1(a) and Clause 6.3.1(b), respectively, the
Purchasers shall deliver to the Sellers at Completion (at the Purchasers’ cost)
an unconditional letter of credit or bank guarantee, payable upon first demand
in terms reasonably satisfactory to the Sellers, duly executed by a bank rated
at least “A” by Standard & Poor’s (or an equivalent rating by another
recognised rating agency) or by another financial institution reasonably
acceptable to the Sellers, for an amount equal to the sum of:

 

(a)                                  ten
per cent. (10%) of the aggregate contractual loss payable under all such
remaining Parent Guarantees (with the aggregate contractual loss payable under
each such Parent Guarantee being set out in Schedule 6.3.1(a) of the
Sellers’ Disclosure Letter or in the schedule referred to in
Clause 7.2.2(a)); and

 

(b)                                 the
aggregate outstanding face amount of all such remaining Third-Party Guarantees
(with the aggregate outstanding face amount of each such Third-Party Guarantee
being set out in Schedule 6.3.1(b) of the Sellers’ Disclosure Letter
or in the schedule referred to in Clause 7.2.2(a)),

 

provided
that, in lieu of such unconditional letter of credit or bank guarantee, and
with the prior written consent of the Sellers (which consent shall not be
unreasonably withheld), the Purchasers shall have the right to deliver to the
Sellers at Completion (at the Purchasers’ cost) two or more such unconditional
letters of credit or bank guarantees in an aggregate amount equal to the sum
referred to above.

 

6.3.5                                                For
the purposes of Clause 6.3.1, a release “in form and substance reasonably
satisfactory to the Sellers” shall include (but, for the avoidance of doubt,
shall not be limited to):

 

(a)                                  in
relation to each Parent Guarantee: (i) the original Parent Guarantee;
and/or (ii) a letter from the beneficiary of each such Parent Guarantee to
the relevant member of the ABB Group confirming, in a legally binding manner,
that such Parent Guarantee has been terminated and that the relevant member of
the ABB Group has been irrevocably released in full from its obligations with
respect to such Parent Guarantee; and

 

(b)                                 in
relation to each Third-Party Guarantee, a letter from the issuer of such
Third-Party Guarantee to the relevant member of the ABB Group confirming, in a
legally binding manner, that such member has been irrevocably released in full
from its obligations with respect to such Third-Party Guarantee.

 

6.3.6                                                ABB
will procure that, between the date of this Agreement and the Completion Date,
no member of the ABB Group will grant or procure any parent company guarantee,
third party guarantee or other similar arrangement in connection with any
Contract entered into by a member of the Acquired Group, except:

 

14

 

(a)                                  for
any parent company guarantee having a maximum aggregate liability of less than
one million dollars ($1,000,000), provided that any such parent company
guarantee shall not be in relation to Syria, Cuba, Iran or North Korea; or

 

(b)                                 with
the prior written consent of the Purchasers (such consent not to be
unreasonably withheld or delayed).

 

6.3.7                                                ABB
will further procure that, between the date of this Agreement and the
Completion Date, no member of the ABB Group will extend or renew any Parent
Guarantee or Third-Party Guarantee, other than where any failure to extend or
renew would entitle the beneficiary of the relevant Parent Guarantee or
Third-Party Guarantee to draw on the same prior to Completion.

 

6.4                                                         Resignation of
Officers and Directors

 

6.4.1                                                To
the extent so requested by the Purchasers, the Sellers shall cause each officer
of each Acquired Company, including each member of the board of directors (or
comparable governing body) of each Acquired Company and each company secretary,
to tender his or her resignation from such position, with effect from the
Completion Date, each such resignation to contain a legally binding
confirmation that the relevant officer has no claim against the relevant
Acquired Company, whether as a result of his being asked so to resign or
otherwise (save for any claim arising out of the officer’s or director’s
employment with the Acquired Company or its termination, other than a claim by
an appointee or nominee of a member of the ABB Group).

 

6.4.2                                                The
Sellers shall cause each Acquired Company to call a meeting of shareholders or
directors (or comparable governing body) and/or take such other action as may
be required to:

 

(a)                                  enable
the Purchasers to comply with their obligations under Clause 11.4; and

 

(b)                                 accept
the resignation of each officer and member of the board of directors (or
comparable governing body) of each Acquired Company given in accordance with
Clause 6.4.1.

 

6.5                                                         Inter-Company
Arrangements

 

The Sellers shall
procure that, with effect from Completion, all arrangements (including
intra-group banking, cash pooling and set-off arrangements) between any member
of the ABB Group, on the one hand, and any Acquired Company, on the other hand,
are terminated (without cost or liability on the part of the Acquired Group)
except for:

 

(a)                                  the
Transitional Services Agreement;

 

(b)                                 lease
arrangements relating to Leased Real Property;

 

(c)                                  arrangements
relating to intra-group trading in the ordinary course of the Business (it
being understood and agreed that all accounts receivable and accounts payable
which are outstanding as at Completion will be settled or paid in accordance
with their respective terms of payment); or

 

(d)                                 indemnities,
guarantees or other similar commitments given by any Acquired Company in
relation to any Parent Guarantee or Third-Party Guarantee (including the
US Company Guarantee and the NL Company Guarantee).

 

15

 

7.                                                              COMPLETION
AND RELATED MATTERS

 

7.1                                                         Inter-Company Debt
Statement

 

7.1.1                                              At
least five (5) Business Days prior to Completion, the Sellers shall
provide the Inter-Company Debt Statement to the Purchasers.  If, upon the Conditions to Completion being
fulfilled or waived (or, if applicable, upon CB&I giving, or being deemed
to have given, a Deferred Completion Notification), the Sellers have not yet
provided the Inter-Company Debt Statement to the Purchasers, they shall do so
promptly (and, in any event, no later than two (2) Business Days)
thereafter.

 

7.1.2                                                To
the extent that the Inter-Company Debt Statement understates the Inter-Company
Debt owed by any Acquired Company as at Completion:

 

(a)                                  (i) the
US Seller shall, as a reduction in the US Purchase Price, pay to the US
Purchaser such amount as would, if paid to any relevant US Acquired Company,
enable that US Acquired Company to discharge in full the balance of any
Inter-Company Debt owed by it and (ii)  the US Purchaser shall, as
agent/trustee for the relevant US Acquired Company, immediately discharge in
full the balance of such Inter-Company Debt owed by such US Acquired Company by
paying such amount to the US Seller as agent/trustee for the relevant member(s) of
the ABB Group (provided that, notwithstanding the foregoing, the obligations of
the US Seller under (i) shall be set-off against the obligations of the US
Purchaser under (ii)); and

 

(b)                                 (i) the
NL Seller shall, as a reduction in the NL Purchase Price, pay to the NL
Purchaser such amount as would, if paid to any relevant NL Acquired Company,
enable that NL Acquired Company to discharge in full the balance of any
Inter-Company Debt owed by it and (ii)  the NL Purchaser shall, as
agent/trustee for the relevant NL Acquired Company, immediately discharge in
full the balance of such Inter-Company Debt owed by such NL Acquired Company by
paying such amount to the NL Seller as agent/trustee for the relevant member(s) of
the ABB Group (provided that, notwithstanding the foregoing, the obligations of
the NL Seller under (i) shall be set-off against the obligations of the NL
Purchaser under (ii)).

 

7.2                                                         Other Pre-Completion
Deliveries

 

7.2.1                                                At
least three (3) Business Days prior to Completion, the Sellers shall
provide to the Purchasers the requisite details of:

 

(a)                                  the
account into which the US Purchase Price shall be paid at Completion
(which shall be a US dollar
account in the name of the US Seller in the United States); and

 

(b)                                 the
account into which the NL Purchase Price shall be paid at Completion
(which shall be a euro account in the
name of the NL Seller in the Netherlands).

 

7.2.2                                                At
least three (3) Business Days prior to Completion, the Sellers shall
provide to the Purchasers a schedule setting out the following:

 

(a)                                  all
Parent Guarantees and Third-Party Guarantees granted, issued or entered into
following the date of this Agreement in accordance with Clause 6.3.6;

 

(b)                                 all
Derivatives Contracts to be terminated in accordance with Clause 11.7; and

 

16

 

(c)                                  all
cash balances of each Acquired Company as at the date which is five (5) Business
Days prior to Completion (including the location of those balances and the
currency in which they are held).

 

7.3                                                         Date and Place

 

Subject to
satisfaction of the Condition to Completion set out in Clause 4.1.1(c) (in
accordance with Clause 4.1.2), Completion shall take place at
12:00 noon (London time) at the offices of White & Case LLP,
5 Old Broad Street, London EC2N 1DW:

 

(a)                                  on
the fourth (4th) Business Day following the fulfilment or waiver of the
Conditions to Completion (other than that set out in Clause 4.1.1(c)) or,
if prior to that date, CB&I has notified ABB in writing that it requires
further time and information to be satisfied that, following Completion, there
will be no violations of Applicable Law of the nature covered by the
indemnities set out in Schedule 9 (Additional Covenant) as a result of the
continuation, following Completion, of a practice which commenced prior to
Completion, on the fourth (4th) Business Day following receipt by ABB of
written notification from CB&I that it is now so satisfied or that it is
nevertheless ready to proceed to Completion (such notification, a “Deferred Completion Notification”)(it
being agreed that such Deferred Completion Notification shall be given by
CB&I no later than ten (10) Business Days prior to the Long-Stop Date
and whether or not CB&I is then so satisfied and that, if not then already
given, such Deferred Completion Notification shall be deemed to have been given
on such tenth (10th) Business Day); or

 

(b)                                 if
later, on the fifth (5th) Business Day following receipt by the Purchasers
of the Inter-Company Debt Statement),

 

or at such other
location, time or date as may be agreed in writing between the Sellers and the
Purchasers (such date, the “Completion Date”).

 

7.4                                                         Completion Deliveries

 

7.4.1                                                At
Completion, the Sellers shall undertake those actions listed in Part 1 of
Schedule 4 (Completion Arrangements).

 

7.4.2                                                At
Completion, the Purchasers shall undertake those actions listed in Part 2
of Schedule 4 (Completion Arrangements).

 

7.5                                                         Failure to Complete

 

7.5.1                                                If
the provisions of Clause 7.4.1 and Part 1 of Schedule 4 (Completion Arrangements) are not complied with in all
material respects on the Completion Date, the Purchasers shall not be obliged
to complete the purchase of the Shares and may:

 

(a)                                  defer
Completion (with the provisions of this Clause 7 applying to Completion as
so deferred);

 

(b)                                 proceed
to Completion as far as practicable (without limiting its rights and remedies
under this Agreement); or

 

(c)                                  if
the Sellers have failed to comply with paragraphs 1, 2 or 3 of Part 1
of Schedule 4 (Completion Arrangements), treat
this Agreement as terminated for

 

17

 

breach of condition (without limiting its rights and
remedies under this Agreement).

 

7.5.2                                                If
the provisions of Clause 7.4.2 and Part 2 of Schedule 4 (Completion Arrangements) are not complied with in all
material respects on the Completion Date, the Sellers shall not be obliged to
complete the sale of the Shares and may:

 

(a)                                  defer
Completion (with the provisions of this Clause 7 applying to Completion as
so deferred);

 

(b)                                 proceed
to Completion as far as practicable (without limiting their rights and remedies
under this Agreement); or

 

(c)                                  if
the Purchasers have failed to comply with paragraphs 1 or 2 of Part 2
of Schedule 4 (Completion Arrangements), treat
this Agreement as terminated for breach of condition (without limiting their
rights and remedies under this Agreement).

 

7.6                                                         Effect of Completion

 

The provisions of
this Agreement which remain to be performed following Completion shall continue
in full force and effect notwithstanding Completion.

 

7.7                                                         Guarantees

 

At or prior to
Completion, the US Company shall execute the US Company Guarantee and
the NL Company shall execute the NL Company Guarantee pursuant to
which the US Company will guarantee the obligations of each other Acquired
Company and the NL Company will guarantee the obligations of each other
NL Acquired Company under all counter indemnities given by such Acquired
Companies to members of the ABB Group in relation to the Parent Guarantees or
the Third-Party Guarantees.

 

8.                                                              THE
SELLERS’ WARRANTIES

 

8.1                                                         The Sellers warrant to the Purchasers that each of
the statements set out in Schedule 5  (The Sellers’ Warranties) is true and
accurate as at the date of this Agreement.

 

8.2                                                         Each of the Sellers’ Warranties shall be construed
as a separate warranty, and shall not be limited by the terms of any of the
other Sellers’ Warranties or, save as otherwise expressly provided, by any
other term of this Agreement.

 

8.3                                                         Any Sellers’ Warranty that is qualified by the
knowledge, belief or awareness of any Seller shall mean the actual (but not
constructive or imputed) knowledge, belief or awareness of Ulf Hoof or François
Champagne having made specific enquiry of Martin Gross, Raphael Widmer, Daniel
McCarthy, Foeke Kolff, Khalid Farid, Margaret Duplantier, Ronald Dawson, John
Albanese, Michael Ford, Jens Jangbaeck and Lars Vågman and:

 

(a)                                  Brian
van Reijn in relation to the Sellers’ Warranties at paragraph 20 of Schedule 5
(The Sellers’ Warranties);

 

(b)                                 Matthew
North in relation to the Sellers’ Warranties at paragraph 16 of Schedule 5
(The Sellers’ Warranties); and

 

18

 

(c)                                  Charles
Salek in relation to the Sellers’ Warranties at paragraph 17 of Schedule 5
(The Sellers’ Warranties),

 

but having made
no other enquiry or independent review.

 

8.4                                                         Any information supplied by or on behalf of any
Acquired Company to or on behalf of the Sellers in connection with the Sellers’
Warranties, the Sellers’ Disclosure Letter or otherwise in relation to the
business and affairs of any Acquired Company shall not constitute a
representation, warranty or guarantee as to the accuracy thereof by any
Acquired Company and each of ABB and the Sellers undertake to the Purchasers
and each Acquired Company that they will not bring any claim which it might
otherwise have against any Acquired Company or any of their respective
directors, officers, employees, agents or advisers in respect thereof, provided
that this Clause 8.4 shall not prohibit the Sellers from bringing a claim
against any such director, officer, employee, agent or adviser: (i) in the
event of fraud or gross negligence by any such director, officer, employee,
agent or adviser; or (ii) upon any such director, officer or employee
ceasing to be a director, officer or employee of an Acquired Company (and provided
further, in the case of (ii) above, that any such director, officer or
employee would not have recourse against an Acquired Company as a result of any
such claim by the Sellers).

 

8.5                                                         The Purchasers acknowledge and agree that the only
Sellers’ Warranties given in respect of the matters referred to below are as
expressly stated below:

 

(a)                                  in
respect of intellectual property and information technology issues, the Sellers’
Warranties set out in paragraphs 8 and 11 of Schedule 5 (The Sellers’ Warranties) (in the case of paragraph 11, so
far as they relate to any Contract referred to in sub-paragraphs (b) and (d) in
the definition of “Material Contracts”) and paragraphs 12 and 13 of
Schedule 5 (The Sellers’ Warranties);

 

(b)                                 in
respect of real property issues (other than as regards environmental issues),
the Sellers’ Warranties set out in paragraphs 8 and 14 of Schedule 5 (The Sellers’ Warranties);

 

(c)                                  in respect
of employment issues (other than as regards pensions and other employee
benefits issues), the Sellers’ Warranties set out in paragraph 15 of
Schedule 5 (The Sellers’ Warranties);

 

(d)                                 in
respect of pensions and other employee benefits issues, the Sellers’ Warranties
set out in paragraph 16 of Schedule 5 (The Sellers’ Warranties);

 

(e)                                  in
respect of Tax issues, the Sellers’ Warranties set out in paragraph 20 of
Schedule 5 (The Sellers’ Warranties); and

 

(f)                                    in
respect of the Joint Ventures, the Sellers’ Warranties set out in
paragraph 21 of Schedule 5 (The Sellers’ Warranties).

 

Notwithstanding
the provisions of paragraphs (a) to (f) above, no limitation in this
Clause 8.5 shall limit the Sellers’ Warranties set out in paragraphs 4, 6,
10 and 18 of Schedule 5 (The Sellers’ Warranties).

 

8.6                                                         Notwithstanding anything to the contrary in this
Agreement, no Sellers’ Warranty is given, nor shall any Sellers’ Warranty be
deemed given, in respect of:

 

(a)                                  any
cost estimates, projections or other predictions including any replacement cost
estimates for services that are currently provided by any member of the ABB

 

19

 

Group to any Acquired Company that will cease to be
provided as from Completion and any forecasts as to the results of operation or
other financial, operational or other forecasts of any kind (it being
understood that, with respect to any provision reflected in the Balance Sheet,
estimates, projections and predictions made at the time form part of the basis
on which such provision was established and, although the adequacy of any such
provision is not, and shall not be deemed to have been, warranted by the
Sellers, the foregoing shall not be taken to limit in any way the Sellers’
Warranties set out in paragraphs 4 or 5 of Schedule 5 (The Sellers’
Warranties)); or

 

(b)                                 except
as expressly provided in paragraphs 4 or 5 of Schedule 5 (The Sellers’
Warranties), any other financial information or data contained in
any Due Diligence Materials or otherwise provided or made available by or on
behalf of the Sellers in connection with the Transactions.

 

8.7                                                         Without restricting the rights of the Purchasers or
the ability of the Purchasers to claim damages on any basis available to them,
if the Sellers are liable for a Locked Box Claim:

 

(a)                                  where
the claim relates to a US Acquired Company, the US Seller shall pay
to the US Purchaser on demand an amount equal to one dollar ($1) for each
one dollar ($1) of the relevant: (i) dividend or distribution; (ii) payment;
or (iii) interest or fee giving rise to the Locked Box Claim; and

 

(b)                                 where
the claim relates to a NL Acquired Company, the NL Seller shall pay
to the NL Purchaser on demand an amount equal to one euro (€1) for each
one euro (€1) of the relevant: (i) dividend or distribution; (ii) payment;
or (iii) interest or fee giving rise to the Locked Box Claim,

 

provided
that, where the claim relates to an Acquired Company which is not a
wholly-owned subsidiary of another Acquired Company, the Sellers shall only be
liable for such percentage of the Locked Box Claim which is equal to the
percentage shareholding (whether direct or indirect) of the US Seller or the NL
Seller, as the case may be, in the relevant Acquired Company.

 

9.                                                              CB&I’S
WARRANTIES

 

CB&I warrants
to the Sellers that each of the statements set out in Schedule 6 (CB&I’s Warranties) is true and accurate as at the date
of this Agreement.

 

10.                                                       THE
SELLERS’ LIMITATIONS OF LIABILITY

 

10.1                                                   The liability of the Sellers in respect of any claim
under this Agreements (other than claims pursuant to Schedule 8 (Tax Covenant) shall be limited as provided
in Schedule 7 (The Sellers’ Limitations of
Liability).

 

10.2                                                   The liability of the Sellers in respect of any claim
pursuant to Schedule 8 (Tax Covenant)
shall be limited as provided in Schedule 8 (Tax
Covenant) and, additionally, as provided in Schedule 7 (The Sellers’ Limitations of Liability).

 

20

 

11.                  OTHER POST-COMPLETION UNDERTAKINGS

 

11.1                 Parent Guarantees and
Third-Party Guarantees

 

11.1.1              To the extent
that CB&I is unable to procure the release of the relevant members of the
ABB Group from their obligations with respect to those Parent Guarantees and
Third-Party Guarantees referred to at Clause 6.3 prior to Completion as
contemplated by Clause 6.3, CB&I shall use, and shall continue to use,
all reasonable endeavours to procure such release as soon as reasonably
practicable following Completion, and, pending such release in a manner
consistent with Clause 6.3, shall promptly on demand (and in no event
later than five (5) Business Days after such demand), indemnify and hold
harmless the relevant members of the ABB Group from and against any and all
liabilities they may suffer, and all costs and expenses they may reasonably
incur, to the extent that the same arise in respect of such Parent Guarantees
and/or Third-Party Guarantees.

 

11.1.2              For so long as
any member of the ABB Group remains obliged in relation to any such Parent
Guarantee or Third-Party Guarantee, CB&I shall:

 

(a)           keep the Sellers
regularly informed (which shall be as often as the Sellers may reasonably
request and in any event no less frequently than quarterly) of the steps that
are being taken to achieve the releases in accordance with Clause 11.1.1;
and

 

(b)           review with the
Sellers (which review, if so requested by the Sellers, shall be conducted in a
meeting between CB&I and the Sellers), every six (6) months after
Completion, the progress made in the immediately preceding six-month period to
achieve, as provided in Clause 11.1.1, the release referred to therein.

 

11.1.3              The Purchasers
shall not, and shall not permit any Acquired Company to, enter into any
amendment or waiver with respect to, or exercise any renewal option or other
similar provision under, any Contract or other arrangement that is the subject
of a Parent Guarantee or a Third-Party Guarantee, with respect to which the
relevant member of the ABB Group has not yet been irrevocably released in full,
in a manner consistent with Clause 6.3, that has the effect of extending
or increasing the exposure of any member of the ABB Group under or in relation
to the applicable Parent Guarantee or Third-Party Guarantee.  No member of the ABB Group shall have any
obligation to extend the term of, or otherwise agree to any amendment or waiver
with respect to, any Parent Guarantee or Third-Party Guarantee that remains
outstanding after Completion.

 

11.1.4              To the extent
that any member of the ABB Group has performance obligations under or in
relation to any Parent Guarantee or Third-Party Guarantee referred to at
Clause 6.3 that have not been irrevocably released prior to Completion in
a manner consistent with Clause 6.3, the Purchasers shall, and shall cause
each Acquired Company to, perform such obligations on behalf of such member of
the ABB Group.

 

11.1.5              CB&I
undertakes to the Sellers that, if the Purchasers or any of their Affiliates
sell, distribute or otherwise transfer to any Person (other than an Affiliate
of CB&I) all or a substantial portion of the Acquired Group or the
Business, then CB&I shall procure that the transferee first agrees in
writing, in favour of each relevant member of the ABB Group, to be bound by the
provisions of this Clause 11.1, mutatis  mutandis, on the basis that references in this
Clause 11.1 to “CB&I” shall be deemed references to such transferee
and references in this Clause 11.1 to “Completion” shall be deemed
references to the date on which such sale, distribution or transfer is
completed.

 

11.1.6              Following
Completion, ABB shall consider in good faith any reasonable request by the
Purchasers to extend a Parent Guarantee and shall use reasonable endeavours to
procure 

 

21

 

the extension of any such
Parent Guarantee for such period as the Purchasers may reasonably require.

 

11.1.7              If any letter of
credit or bank guarantee delivered by the Purchasers to the Sellers pursuant to
Clause 6.3.4 would, by its express terms:

 

(a)           expire upon
notice from ABB that each Parent
Guarantee or Third-Party Guarantee to which it relates has been released; or

 

(b)           in the case of
any such letter of credit or bank guarantee relating to more than one Parent
Guarantee and/or Third-Party Guarantee, reduce in terms of the amount that the
beneficiary may draw or demand thereunder upon notice from ABB
that any such Parent Guarantee or Third-Party Guarantee has been released,

 

ABB shall provide
such notice to the relevant bank or financial institution promptly upon ABB
becoming aware of the release of each relevant member of the ABB Group from its
obligations with respect to each relevant Parent Guarantee or Third-Party
Guarantee, as the case may be, in a manner consistent with Clause 6.3.

 

11.2                 Employee Matters

 

11.2.1              Following the
Completion Date, the US Purchaser shall, or shall cause one or more of its
Affiliates to, adopt and assume, as of the Completion Date, the ABB Inc.
Pension Plan for Employees of ABB Lummus Global Represented by the Lummus
Employees Association, Inc. (the “Assumed
Plan”) and the assets and liabilities thereunder, with respect
to all persons entitled to benefits under the provisions of the Assumed Plan,
including benefits payable to, or in respect of, retired participants, disabled
participants, or terminated vested participants under the Assumed Plan
(irrespective of date of retirement, disability, or other termination of
service).  The US Purchaser shall,
or shall cause one or more of its Affiliates to, assume, pay, perform, and
discharge all liabilities, debts, and obligations of ABB Inc. (whether actual
or contingent and whether existing on the Completion Date or arising in the
future) accrued or incurred in respect of the Assumed Plan, including the
funding of all benefits of whatever nature payable to any person under the
Assumed Plan (including the payment of any amount necessary to satisfy the
minimum funding standards under Section 412 of the Code for the plan year
of the Assumed Plan in which Completion occurs).  As of the Completion Date, the
US Purchaser shall, or shall cause one or more of its Affiliates to, be
substituted for ABB Inc. as the plan sponsor under the Assumed Plan with full
authority to maintain and amend the Assumed Plan.  The US Purchaser shall, or shall cause
one or more of its Affiliates to, establish a trust fund or utilise an existing
trust fund to hold all assets of the Assumed Plan.

 

11.2.2              Following the
Completion Date, the US Purchaser shall ensure that all current and former
employees of the Acquired Companies, including employees not actively at work
due to injury, vacation, military duty, disability or other leave of absence
(the “Acquired Company Employees”)
who currently participate in, or who are, or may be, eligible to participate in
the post-retirement health, dental and life insurance benefit plans of any
member of the ABB Group (the “ABB
Post-Retirement Health and Life Insurance Plan”) upon
satisfaction of the applicable eligibility conditions of the ABB
Post-Retirement Health and Life Insurance Plan, shall be entitled to receive
post-retirement health and life insurance benefits under a post-retirement
health and life insurance plan established or caused to be established by the
US Purchaser (the “Purchaser
Post-Retirement Health and Life Insurance Plan”) that provides
benefits that are identical to the benefits provided by the ABB Post-Retirement
Health and Life Insurance Plan provided, however, for avoidance of
doubt, that administrative and ancillary provisions of 

 

22

 

the Purchaser Post-Retirement Health and Life Insurance Plan need not
be identical but may be substantially similar to those of the ABB
Post-Retirement Health and Life Insurance Plan, for such period of time as
required under the terms of the ABB Post-Retirement Health and Life Insurance
Plan and pursuant to Applicable Law.  The
US Purchaser shall, or shall cause one or more of its Affiliates to, be solely
responsible for paying and providing all post retirement health, dental and
life insurance benefits referred to in this Clause 11.2.2 with respect to such
Acquired Company Employees.

 

11.2.3              The Sellers shall
procure that, as of the Completion Date, all Acquired Company Employees become
fully vested in their benefits under the ABB Inc. Cash Balance Pension Plan
(the “Cash Balance Plan”),
the ABB Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”), or the Personal Retirement
Investment and Savings Management Plan for Employees of ABB Inc. (the “PRISM Plan”) and, together with the
Cash Balance Plan and the Deferred Compensation Plan (the “ABB Retained Plans”).  To the extent that Acquired Company Employees
are entitled to distributions by reason of the Transactions under the terms of
the Cash Balance Plan or the PRISM Plan, and in each case, Applicable Law, the
US Purchaser shall procure that such Acquired Company Employees may make a
rollover of such distributions pursuant to Section 402(c) (and, if
applicable, Section 401(a)(31)) of the Code into an employee benefit plan
maintained by the US Purchaser or any of its Affiliates that is intended
to be “qualified” within the meaning of Section 401(a) of the Code.

 

11.2.4              Following the
Completion Date, the Purchasers shall, or shall cause one or more of their
Affiliates to:

 

(a)           honour, pay,
perform and satisfy any and all liabilities, obligations and responsibilities
to, or in respect of, each Acquired Company Employee arising under the terms of
any contracts, arrangements, programmes, policies, plans, commitments,
employment, consulting, retention, severance, change-of-control or similar
agreement (each a “Benefit Arrangement”)
of the Acquired Companies, in accordance with the terms thereof in effect on
the Completion Date; and

 

(b)           assume, honour
and be solely responsible for paying, providing or satisfying when due (i) all
vacation, sick pay and other paid time off for Acquired Company Employees
accrued but unused as of the Completion Date, on terms and conditions not less
favourable than the terms and conditions in effect immediately prior to the
Completion Date, and (ii) all compensation (including salary, wages,
commissions, bonuses (including, the transaction-related bonuses and the
severance payments set out in Schedule 11.2.4(b) of the Sellers’ Disclosure
Letter, and the payments due under the ABB Lummus Global Inc. Long-Term
Incentive Plan, the ABB Lummus Global Inc. Scorecard Incentive Plan and the
US Employee Profit Incentive Compensation (EPIC) Plan), incentive
compensation, overtime, premium pay and shift differentials), benefits and
benefit claims, severance and termination pay, notice and benefits under all
Applicable Law and under any plan, policy, practice or agreement and all other
liabilities, in each case accruing, incurred, or arising as a result of
employment or separation from employment with the Purchasers or any of their
Affiliates, on or after the Completion Date with respect to Acquired Company
Employees,

 

provided
that nothing in this Clause 11.2.4 shall be construed to prohibit the
Purchasers or any of their Affiliates from: (i) modifying, amending or
terminating any Benefit Arrangement at any time after the Completion Date or; (ii) substituting
for any Benefit Arrangement of an Acquired Company the Benefit Arrangement of
any of the Purchasers and their Affiliates for similarly situated employees of
the Purchasers and their Affiliates, 

 

23

 

to the extent
permitted by the terms of the Benefit Arrangements of the Acquired Companies
and Applicable Law.

 

11.2.5              Following the
Completion Date, the US Purchaser shall, or shall cause one or more of its
Affiliates to:

 

(a)           waive, or use
reasonable endeavours to cause its insurance carrier to waive, all limitations
or exclusions as to pre-existing conditions, evidence of insurability or good
health, waiting periods or actively-at-work exclusions or other limitations or
restrictions on coverage, if any, applicable to any Acquired Company Employees
or their dependents or beneficiaries under any welfare benefit plans in which
such employees may be eligible to participate; and

 

(b)           credit all costs
or expenses incurred by Acquired Company Employees (and their dependents or
beneficiaries), if any, up to and including the Completion Date for the purposes
of satisfying applicable deductible, co-payment, coinsurance, maximum
out-of-pocket provisions and like adjustments or limitations on coverage under
any such welfare benefit plans.

 

11.2.6              Following the
Completion Date, the Purchasers shall, or shall cause one or more of their
Affiliates to, take into account periods of employment with any Acquired
Company (including any current or former Affiliate of any Acquired Company or
any predecessor of any Acquired Company) (“Prior
Service”) for the purposes of determining, as applicable, the
eligibility for participation, vesting and the calculation of benefits of any
Acquired Company Employee under all employee benefit plans, policies or
practices to which the Purchasers and their Affiliates contribute (or has an
obligation to contribute) or is a party for Acquired Company Employees,
including vacation plans and arrangements, 401(k) and other retirement
plans, paid time off plans, and any severance and welfare plans; provided,
however, that Prior Service need not be included in the calculations of
benefits under any such retirement plans or severance plans.

 

11.2.7              Following the
Completion Date, the Purchasers shall, or shall cause one or more of their
Affiliates to:

 

(a)           for Acquired
Company Employees whose terms and conditions of employment are covered by a
collective bargaining agreement, continue their employment under the same terms
and conditions described in such collective bargaining agreement;

 

(b)           continue to
recognise each union that at the Completion Date represents any of the Acquired
Company Employees as the collective bargaining representatives of such
employees as of the Completion Date; and

 

(c)           comply fully with
all obligations of the Acquired Companies under the collective bargaining
agreements governing the employment of any such Acquired Company Employees and
be bound by and comply with the terms of all such collective bargaining
agreements until the expiration thereof and not undertake any action to avoid
such obligations under the collective bargaining agreements.  The Purchasers further agree that from and
after the Completion Date, the Sellers shall have no further obligations on or
after the Completion Date to the Acquired Company Employees pursuant to such
collective bargaining agreements.

 

11.2.8              The
US Purchaser shall procure that no Acquired Company incorporated in the
United States effectuates, at any time prior to the expiry of ninety
(90) days from the Completion Date, (i) a “plant closing”, “employment
loss” or “mass layoff” as those terms are defined 

 

24

 

in the US Worker Adjustment and Retraining
Notification Act of 1988 (“WARN”)
or (ii) any similar triggering event under any other Applicable Law in the
United States (including as a result of aggregating any “employment loss” prior
to, from and after the Completion Date), affecting in whole or in part any of
the Acquired Company Employees.  The
US Purchaser agrees to provide any required notice under WARN and any
other Applicable Law and to comply with any such statute with respect to any “plant
closing” or “mass layoff” (as defined in WARN) or any similar triggering event
under any such other Applicable Law in the United States occurring on or after
Completion or arising as a result of the transactions contemplated hereby.

 

11.2.9              The
US Purchaser shall indemnify and hold each member of the ABB Group
harmless against any and all liabilities they may suffer, and all costs and
expenses they may reasonably incur, to the extent that the same arise:

 

(a)           in connection
with the Assumed Plan or any termination thereof following the Completion Date,
save to the extent that the liability arises as a result of any breach by any
member of the ABB Group of any of its duties or obligations in respect of the
Assumed Plan prior to Completion;

 

(b)           out of or in
relation to the obligations of the US Purchaser to pay for and provide all
post-retirement health, dental and life insurance benefits referred to in
Clause 11.2.2; and

 

(c)           in relation to
the obligations of the US Purchaser under Clause 11.2.8.

 

11.2.10            The Purchasers
shall indemnify and hold each member of the ABB Group harmless against any and
all liabilities they may suffer, and all costs and expenses they may reasonably
incur, to the extent that the same arise out of or in relation to the
obligations of the Purchasers of any of their obligations under
Clause 11.2.4 or Clause 11.2.7.

 

11.2.11            The Sellers shall
indemnify and hold each of the Purchasers and their Affiliates harmless against
any an all liabilities they may suffer and all costs and expenses they may
reasonably incur, to the extent that the same arise out of or in relation to
the obligations of the Sellers under the ABB Retained Plans.

 

11.3                 Preservation of Books
and Records

 

11.3.1              For a period of
seven (7) years after the Completion Date (or such longer period as may be
required by Applicable Law), the Purchasers shall, and shall cause each
Acquired Company to, preserve and retain all of its corporate, accounting,
legal, auditing, human resources and other books and records relating to any
Acquired Company or the Business existing at Completion (collectively, the “Books and Records”).

 

11.3.2              The Purchasers
shall, throughout the seven-year period (or such longer period as may be
required by Applicable Law)  referred to
in Clause 11.3.1, and upon being given reasonable advance notice (and in
any event within five (5) Business Days of written notice being given to
the Purchasers by the Sellers), permit the Sellers and their professional advisers
to inspect and to make copies of any Books and Records to the extent reasonably
required to enable any member of the ABB Group:

 

(a)           to make any
filing, notification or other submission required to be made by it under any
Applicable Law to any Governmental Entity;

 

(b)           to respond to or
defend any valid proceeding, enquiry or investigation of any Governmental
Entity; or

 

25

 

(c)           otherwise to
comply with its obligations under Applicable Law.

 

11.3.3              After the expiry
of the seven-year period (or such longer period as may be required by
Applicable Law) referred to in Clause 11.3.1, the Purchasers shall procure
that none of the Acquired Companies destroy or dispose of, or allow the
destruction or disposition of, any Books and Records, without first having
offered in writing the Sellers the opportunity to collect, at their cost, such
Books and Records.  The Acquired
Companies shall be entitled to dispose of the Books and Records if the Sellers
shall fail to collect such Books and Records within one hundred and twenty
(120) days after receipt of the notice described in the preceding
sentence.

 

11.3.4              In the event of
any conflict between this Clause 11.3, on the one hand, and the provisions
of Clause 12.1 and Schedule 8 (Tax Covenant),
on the other hand, the latter shall prevail.

 

11.4                 Board of Directors and
Related Matters

 

11.4.1              Subject to the
Sellers complying with their obligations under Clause 6.4.2, immediately
after Completion on the Completion Date, and subject to Applicable Law, the
Purchasers shall cause each Acquired Company to hold such shareholders’
meetings and take such other actions as may be required to elect a new board of
directors (or other comparable managing body). 
The Purchasers shall ensure that, promptly thereafter, each Acquired
Company makes all necessary filings with the relevant Governmental Entities and
takes all other necessary action to register in the applicable public registry,
if required, the resignation of the retiring board members and the matters
decided pursuant to this Clause 11.4.

 

11.4.2              The Purchasers
shall procure that, at the first shareholders’ meeting of the relevant Acquired
Company or otherwise whenever the question of discharge is raised after
Completion, each member of the board and, where applicable, the managing
director of each Acquired Company, in each case who has resigned with effect
from the Completion Date in accordance with this Agreement, is discharged in
full from any liability as a member of the relevant board or as managing
director, as the case may be, in relation to the period prior to Completion,
except in the case of fraud or gross negligence.  If discharge of liability does not occur for
any member of the board or the managing director of any Acquired Company in
accordance with this Clause 11.4.2, the Purchasers shall not, and shall cause
each such Acquired Company not to, pursue any claim for damages against any
such Person, except in the case of fraud or gross negligence.

 

11.5                 Insurance Matters

 

11.5.1              The Purchasers
agree and acknowledge that none of the insurance policies of the ABB Group will
provide insurance cover in respect of the assets, tangible or intangible
property, liabilities, ownership, activities, business, operations,
shareholders, directors, agents, officers and employees of any Acquired Company
for any losses or liabilities of any kind arising as a result of any event
occurring: (i) after Completion; or (ii) except as provided in
Clause 11.5.2, prior to Completion.

 

11.5.2              Subject to the
Purchasers reimbursing (or procuring the reimbursement of) the relevant members
of the ABB Group in accordance with Clause 11.5.3, the Purchasers and each
Acquired Company shall be entitled, after the Completion Date, to make claims
under liability insurance policies written on an occurrence basis and under
workers’ compensation policies written on an accident basis, in each case held
by members of the ABB Group (whether with a third party insurer or a captive
insurer) (“ABB Occurrence Policies”)
in respect of any insured loss or liability incurred or suffered by any
Acquired Company arising as a result of any event occurring prior to Completion
(collectively, 

 

26

 

“Pre-Completion
Losses”).  The Purchasers
shall inform the Sellers in writing of each and every claim notified by the
Purchasers or any Acquired Company under any ABB Occurrence Policy in
accordance with this Clause 11.5.2 within five (5) Business Days of
notification of the relevant claim to the relevant insurer.

 

11.5.3              Within thirty
(30) days of receipt by the Purchasers of written notice from the Sellers
providing reasonable details of such costs and expenses, the Purchasers shall
reimburse (or procure the reimbursement of) the relevant member(s) of the
ABB Group for all costs and expenses reasonably incurred by a member of the ABB
Group as a result of any claim by a Purchaser or any of the Acquired Companies
under any ABB Occurrence Policy with respect to any Pre-Completion Losses,
including retrospective insurance premiums, premium audits, self-insured
retentions, deductibles, indemnity payments, uninsured losses, loss conversion
factor expenses and related insurance programme expenses (including claims
handling fees, legal fees, taxes, residual market loadings, collateral
requirements and security deposits, surety bonds and other collateral) and
state surcharges incurred or suffered by any member of the ABB Group (including
ABB Insurance Limited) as a result of any such claim, provided that such
charges or amounts are levied on or incurred by the relevant member(s) of
the ABB Group in accordance with past practice and a reasonable explanation of
such charges or amounts is provided to the Purchasers.

 

11.5.4              All monies
payable in respect of any claim made by a Purchaser or any Acquired Company
pursuant to Clause 11.5.2 shall be payable directly to the Purchaser, or
as directed by the Purchaser or the relevant Acquired Company.

 

11.5.5              At the Purchasers’
sole cost and expense, the Sellers shall provide such reasonable assistance and
information as the Purchasers may request to enable the Purchasers or any
Acquired Company to make any claim as envisaged pursuant to Clause 11.5.2,
including requesting the relevant insurance company/ies to co-operate with the
Purchasers and Acquired Companies as applicable.  If a Purchaser desires access to, and
utilisation of, claims data or information maintained by an insurance company
or other third party in respect of any claim, the Purchaser shall be
exclusively responsible for acquiring from such insurance company or third
party, at the Purchasers’ sole cost and expense, the rights necessary to permit
it to obtain access to, and utilisation of, such claims data or information, provided
always that the Sellers shall, at the Purchasers’ cost, provide the Purchasers
with all reasonable assistance in this regard.

 

11.6                 ABB Intellectual
Property

 

11.6.1              The Purchasers
shall not, and shall cause their Affiliates (including, after Completion, the
Acquired Companies) not to, register, or attempt to register, or use, directly
or indirectly, in any fashion whatsoever any trademark, service mark, domain
name, trade name or other indicia of origin that includes, is identical to or
is confusingly similar to, any of the trademarks, service marks, Internet
domain names, trade names or other indicia of origin (including the words “ABB”,
“BBC”, “Asea” or “Boveri” or any derivatives thereof) known by, or made known
to, any Acquired Company to be owned as of the Completion Date by any member of
the ABB Group (collectively, “ABB Marks”),
nor shall any of them challenge or assist any third Person in opposing the
rights of any member of the ABB Group anywhere in the world in and to any ABB
Mark.

 

11.6.2              Any provisions
contained in any Contracts between any member of the ABB Group, on the one
hand, and any Acquired Company, on the other hand, relating to the use of any
ABB Mark or anything confusingly similar thereto, including all name protection
and license agreements, shall immediately and automatically terminate as of the
Completion Date.

 

27

 

11.6.3              Without limiting
the generality of Clause 11.6.1, the Purchasers shall:

 

(a)           subject to
Applicable Law, ensure that, as soon as practicable (but in no event more than
sixty (60) days following the Completion Date with respect to materials
that publicly display any ABB Marks or are otherwise distributed to the public
(including letterhead, advertising materials, marketing brochures and the like)),
any materials bearing any ABB Mark are either destroyed or otherwise
permanently altered so that the former use of any ABB Mark is entirely
unrecognisable and undetectable;

 

(b)           ensure that, as
soon as practicable (but in no event more than sixty (60) days
following the Completion Date), any hypertext links to Internet web sites
operated by any member of the ABB Group and any other use of any ABB Mark are
removed from any Internet web sites operated by any Acquired Company; provided,
however, that, notwithstanding the foregoing, the Purchasers shall ensure such
removal on or before the fifth (5th) day after it or any Acquired Company
becomes aware of such links or use; and

 

(c)           procure that, as
soon as practicable (but in no event more than one hundred and twenty
(120) days following the Completion Date), the Acquired Companies take all
action necessary to remove all references to any of the ABB Marks from their
respective corporate name, including by way of amending the entry in the
relevant companies register.

 

11.7                 Derivatives Contracts

 

11.7.1              At Completion,
the Sellers shall cause the early termination of all Derivatives Contracts set
out in any list provided to the Purchasers pursuant to Clause 7.2.2(b) (such
date of termination, the “Early Termination
Date”).

 

11.7.2              On the Early
Termination Date or, if the Parties agree that there is material market
disruption on such Early Termination Date in respect of any Derivatives
Contract, such other date as the Parties may agree in good faith (and, where
applicable, all references in this Clause 11.7 to the Early Termination
Date in respect of those Derivatives Contracts shall be deemed to refer to such
other date), the Sellers shall calculate the fair market value in dollars of
each Derivatives Contract to the relevant Acquired Company to be terminated
based on the rate which appears on the Reuters Screen FXBLFIX01 at 11:00 a.m.
(London time) on the Early Termination Date. 
On the Business Day following an Early Termination Date, the Sellers
shall deliver to the Purchasers a statement setting forth the amounts so
determined in accordance with this Clause 11.7.2 (a “Settlement Statement”).

 

11.7.3              The fair market
values in dollars of the Derivatives Contracts finally determined in accordance
with Clause 11.7.2 shall be added and netted for each Early Termination
Date, and the resulting figure shall be the “Net Early Termination Amount.”  For the purposes of this Clause 11.7.3,
any payment to be made pursuant to the early termination of any Derivatives
Contract: (i) to any Acquired Company shall be categorised as positive;
and (ii) to any member of the ABB Group shall be categorised as
negative.  If the Net Early Termination
Amount is negative, the Purchasers shall pay, or cause to be paid, to the
Sellers, by telegraphic transfer of immediately available cleared funds, an
amount equal to the Net Early Termination Amount.  If the Net Early Termination Amount is
positive, the Sellers shall pay, or cause to be paid, to the Purchasers, by
telegraphic transfer of immediately available cleared funds, an amount equal to
the Net Early Termination Amount.  The
Net Early Termination Amount shall be payable by the 

 

28

 

applicable Party on or prior to the fifth
(5th) Business Day following receipt of the Settlement Statement by the
Purchasers.

 

11.8                 Conflicts; Privileges

 

11.8.1              It is
acknowledged by each of the Parties that the Sellers have retained White &
Case LLP (“W&C”) to act
as their counsel in connection with the Transactions and that W&C has not
acted as counsel for any other Person in connection with the Transactions and
that no other Party or Person has the status of a client of W&C for
conflict of interest or any other purposes as a result thereof.  The Purchasers hereby agree that, in the
event that a dispute arises between the Purchasers or any of their Affiliates
(including, after Completion, the Acquired Companies) and any member of the ABB
Group, W&C may represent such member of the ABB Group in such dispute even
though the interests of such member of the ABB Group may be directly adverse to
the Purchasers or any of their Affiliates (including, after Completion, the
Acquired Companies), and even though W&C may have represented an Acquired
Company in a matter substantially related to such dispute, or may be handling
ongoing matters for the Purchasers or an Acquired Company, and the Purchasers
hereby waive, on behalf of themselves, the Acquired Companies and each of their
respective Affiliates, any conflict of interest in connection with such
representation by W&C.  The
Purchasers further agree that, as to all communications among W&C, the
Acquired Companies and the Sellers that relate in any way to the Transactions,
the legal professional privilege, the expectation of client confidence and all
other rights to any evidentiary privilege belong to the Sellers and may be
controlled by the Sellers and shall not pass to or be claimed by the Purchasers
or the Acquired Companies.

 

11.8.2              The Sellers and
the Purchasers agree to take, and to cause their respective Affiliates to take,
all steps necessary to implement the intent of this Clause 11.8.

 

11.9                 Confidentiality

 

11.9.1              Except as
provided in Clauses 11.9.3 and 15.1, ABB shall, and shall procure that its
Affiliates will, treat as confidential the provisions of this Agreement and all
confidential information:

 

(a)           they possess
relating to the Acquired Group; or

 

(b)           they have
received or obtained relating to CB&I and its Affiliates as a result of
negotiating or entering into this Agreement.

 

11.9.2              Except as
provided in Clauses 11.9.3 and 15.1, CB&I shall, and shall procure
that its Affiliates will, treat as confidential the provisions of this
Agreement and all confidential information they have received or obtained
relating to ABB and its Affiliates as a result of negotiating or entering into
this Agreement.

 

11.9.3              A Party may
disclose, or permit the disclosure of, information which would otherwise be
confidential if and to the extent:

 

(a)           required by
Applicable Law or any securities exchange, or required by any Governmental
Entity;

 

(b)           disclosed to its
professional advisers (provided that such persons are required to treat
such information as confidential);

 

29

 

(c)           disclosed to its
bankers or other financiers or credit providers (or prospective bankers or
other financiers or credit providers) (provided that such persons are
required to treat such information as confidential); or

 

(d)           it comes into the
public domain other than as a result of a breach by a Party of this
Clause 11.9;

 

provided
that, in the case of (a) above, prior written notice of any confidential
information to be disclosed pursuant to this Clause 11.9 shall, to the
extent permitted by Applicable Law, be given to the other Party.

 

11.9.4              The
confidentiality restrictions in this Clause 11.9 shall continue to apply
after the termination of this Agreement pursuant to Clause 4.5, 5 or 7.5
without limitation in time.

 

11.9.5              Subject always to
the provisions of Clause 11.9.1, the Sellers shall have the right to
retain copies of all documents delivered or made available to the Purchasers in
connection with the Transactions, including the Due Diligence Materials, for
the purpose of defending any claim against the Sellers under this Agreement or
enforcing their rights hereunder (including making any claims or counterclaims
against third parties pursuant to paragraph 15 of Schedule 7 (The Sellers’ Limitations of Liability)).

 

11.10               Protection of Goodwill

 

11.10.1            ABB hereby
undertakes to procure that (except as otherwise agreed in writing with the
Purchasers) no member of the ABB Group will, either directly or indirectly, and
either solely or jointly with any other person (either on its own account or as
the agent of any other person) and in any capacity whatsoever:

 

(a)           for a period of
two (2) years from Completion, carry on, be engaged in or have an equity
interest in any business which, directly or indirectly, competes with the
Business (except, in each case, as the holder of shares in a listed company
which confer not more than five per cent. (5%) of the votes which can generally
be cast at a general meeting of the company);

 

(b)           for a period of
two (2) years from Completion, induce, solicit or endeavour to entice to
leave the service or employment of any Acquired Company any person who at
Completion was an employee of any Acquired Company occupying a senior or
managerial position and likely (in the reasonable opinion of the Purchasers) to
be:

 

(i)            in possession of
confidential information relating to any Acquired Company; or

 

(ii)           able to influence
the customer relationships or connections of any Acquired Company;

 

provided that nothing in
this paragraph (b) shall prohibit any member of the ABB Group from
posting a general public advertisement for employment or employing any person
who responds to such advertisement; and

 

(c)           following
Completion, use the name “Lummus” or any other name intended or likely to be
confused with any such name.

 

11.10.2            Notwithstanding
anything to the contrary in this Agreement, the restrictions in
Clause 11.10.1 shall not prohibit any member of the ABB Group from
carrying on or 

 

30

 

engaging in any of the following activities that
would, but for this Clause 11.10.2 be restricted under
Clause 11.10.1:

 

(a)           providing, primarily through ABB Process Solutions
and Services S.p.A. and its successors, engineering, procurement and
construction services to customers in the oil and gas, chemical, petrochemical
and marine industries;

 

(b)           providing technology and process technology
services to customers in the biofuels industry (including to customers involved
in ethanol production);

 

(c)           providing industrial products to customers in the
oil and gas, chemical, petrochemical and marine industries; or

 

(d)           providing services and spare parts in relation to
the servicing, repair and maintenance, installation, and upgrade of industrial
plant and equipment for customers in the oil and gas, chemical, petrochemical
and marine industries.

 

11.10.3            The Sellers agree
that the undertakings contained in Clause 11.10.1 are reasonable and are
entered into for the purpose of protecting the goodwill of the Business.

 

11.10.4            Each undertaking
contained in Clause 11.10.1 is and shall be construed as separate and
severable and if one or more of the undertakings is held to be against the
public interest or unlawful or in any way an unreasonable restraint of trade or
unenforceable in whole or in part for any reason the remaining undertakings or
parts thereof, as appropriate, shall continue to bind the Sellers.

 

11.10.5            If any
undertaking contained in Clause 11.10.1 shall be held to be void but would
be valid if deleted in part or reduced in application, such undertaking shall
apply with such deletion or modification as may be necessary to make it valid
and enforceable.  Without prejudice to
the generality of the foregoing, in such circumstances, any relevant period of
time (as the same may previously have been reduced by virtue of this Clause
11.10.5) shall take effect as if reduced by successive six month periods until
the resulting period shall be valid and enforceable.

 

12.                  COVENANTS

 

12.1                 Tax Covenant

 

The Sellers and
the Purchasers shall, as from Completion, comply with the provisions of
Schedule 8 (Tax Covenant).

 

12.2                 Additional Covenant

 

The Sellers and
the Purchasers shall also comply with the provisions of Schedule 9 (Additional Covenant).

 

13.                  GUARANTEES

 

13.1                 Guarantee by ABB

 

13.1.1              In consideration
of CB&I and the Purchasers entering into this Agreement, ABB irrevocably
and unconditionally guarantees to each of CB&I and the Purchasers as
principal obligor, on demand, the due and punctual performance and observance
by the 

 

31

 

Sellers of all the obligations of the Sellers, and
the punctual discharge by the Sellers of all the liabilities of the Sellers,
under the terms of this Agreement (including, for the avoidance of doubt, under
the terms of Schedule 8 (Tax Covenant)
and Schedule 9 (Additional Covenant) but, further
for the avoidance of doubt, subject to the limitations set out therein and in
Schedule 7 (The Sellers’ Limitations of Liability))
and all Other Transaction Documents (as amended, varied, modified or replaced
from time to time).

 

13.1.2              Save with the
written consent of CB&I, the liability of ABB under this Clause 13.1
shall not be discharged or diminished as a result of:

 

(a)           any time or
indulgence or waiver given to, or composition made with, a Seller by CB&I
or a Purchaser; or

 

(b)           the
non-enforcement of any right, remedies or securities against a Seller by any of
CB&I and the Purchasers, or the release of a Seller in respect of the same.

 

13.1.3              The guarantee
constituted by this Clause 13.1 shall constitute the full recourse
obligations of ABB enforceable against it to the full extent of all of its
assets and properties, shall be the primary obligation of ABB and neither
CB&I nor any of the Purchasers shall be obliged to make any demand on a
Seller before enforcing its rights against ABB under the same.

 

13.1.4              ABB will make all
payments which may be or become due under this Clause 13.1 free and clear
and without deduction of any and all present and future taxes, duties, levies,
imposts, deductions, charges and withholdings of the United States, the
Netherlands, the United Kingdom or any other country or jurisdiction, save to
the extent required by Applicable Law.

 

13.2                 Guarantee by CB&I

 

13.2.1              In consideration
of ABB and the Sellers entering into this Agreement, CB&I irrevocably and
unconditionally guarantees to each of ABB and the Sellers as principal obligor,
on demand, the due and punctual performance and observance by the Purchasers of
all the obligations of the Purchasers, and the punctual discharge by the Purchasers
of all the liabilities of the Purchasers, under the terms of this Agreement and
all Other Transaction Documents (as amended, varied, modified or replaced from
time to time).

 

13.2.2              Save with the
written consent of ABB, the liability of CB&I under this Clause 13.2
shall not be discharged or diminished as a result of:

 

(a)           any time or
indulgence or waiver given to, or composition made with, a Purchaser by ABB or
a Seller; or

 

(b)           the
non-enforcement of any right, remedies or securities against a Purchaser by any
of ABB and the Sellers, or the release of a Purchaser in respect of the same.

 

13.2.3              The guarantee
constituted by this Clause 13.2 shall constitute the full recourse
obligations of CB&I enforceable against it to the full extent of all its
assets and properties, shall be the primary obligation of CB&I and neither
ABB nor any of the Sellers shall be obliged to make any demand on a Purchaser
before enforcing its rights against CB&I under the same.

 

13.2.4              CB&I will
make all payments which may be or become due under this Clause 13.2 free
and clear and without deduction of any and all present and future taxes,
duties, levies, imposts, deductions, charges and withholdings of the United
States, the Netherlands, the 

 

32

 

United Kingdom or any other country or jurisdiction,
save to the extent required by Applicable Law.

 

14.                  COST-SHARING

 

14.1                 Bloomfield

 

14.1.1              As soon as
reasonably practicable following Completion, the US Purchaser and the US Seller
(or such other Persons on their behalf as they may reasonably nominate) will
discuss in good faith and agree a course of action as regards approaching the
relevant governmental authority in New Jersey (the “NJ Authority”) with a view to agreeing,
with the NJ Authority, the appropriate course of action to be adopted to
monitor and/or remediate the environmental issues identified in the Sellers’
Disclosure Letter at the site located at Bloomfield, New Jersey  (the “Environmental
Issues”) (the “Remediation
Plan”).  If the Parties
are unable to agree on a course of action as regards such approach to the NJ
Authority (after having endeavoured to do so for a period of at least twenty
(20) Business Days), either Party may unilaterally make the approach.

 

14.1.2              Following receipt
of the determination by the NJ Authority in relation to the Remediation Plan,
the US Purchaser shall provide to the US Seller details (procured from a
suitably qualified firm of environmental experts) as to the steps necessary, in
the opinion of such firm, to be adopted to implement the Remediation Plan and
as to the costs thereof.  If such costs
are less than the balance of the provision included in relation thereto in the
management accounts referred to at paragraph 5 of Schedule 5 (The Sellers’ Warranties) (the “Provision”) (after allowing for any expenditure incurred
by the Acquired Group since 30 June 2007) (the “Balance”), then the US Seller shall
have no further obligation under this Clause 14.1.

 

14.1.3              If such costs
exceed the Balance, the US Seller may seek from a firm of suitably qualified
environmental experts a second quotation as to the steps necessary to be
adopted to implement the Remediation Plan and the costs thereof.

 

14.1.4              If the US Seller
elects to obtain such a quotation and provides details of such quotation to the
US Purchaser, the Parties shall proceed to instruct the firm providing the
lower quote for the work required under the Remediation Plan.  If the US Seller does not obtain such a quote
and deliver the same to the US Purchaser within six (6) weeks of the
receipt by the US Seller of the quotation provided by the US Purchaser, the US
Purchaser may proceed to follow the steps (with the attendant costs) originally
proposed by it.

 

14.1.5              In either case,
to the extent that the costs incurred as envisaged pursuant to Clause 14.1.4
exceed the Balance, the US Purchaser and the US Seller shall bear the same as
to fifty per cent. (50%) each.

 

14.1.6              Save with the
prior written consent of the US Purchaser (such consent not to be unreasonably
withheld or delayed), pending Completion the US Seller shall procure that the
Acquired Group does not incur any (further) expenditure in connection with the
Environmental Issues, unless the Remediation Plan is issued by the NJ Authority
prior to Completion, in which event the above provisions of this Clause 14.1 as
regards costs and the sharing thereof shall apply mutatis
mutandis.

 

14.1.7              Each of the US
Purchaser and the US Seller undertakes to the other to act in good faith in
connection with the implementation of the provisions of this Clause 14.1.

 

33

 

14.2                 Westlake Contract

 

14.2.1              If the aggregate
amount paid by the relevant Acquired Company under, and in accordance with the
terms of, the engineering, procurement, construction and construction
management contract dated 23 March 2005 between WPT LP and the US Seller
in relation to the Westlake Petro 2 Feed Flexibility Project ISBL at Calcasieu
Parish, Louisiana, as amended from time to time up to Completion (the “Westlake Contract”) exceeds by more
than five million dollars ($5,000,000) the aggregate amount received by such
Acquired Company under, or in relation to, the Westlake Contract (the portion
of such amount over and above five million dollars ($5,000,000), the “Excess Amount”), in each case from the
date of this Agreement to the date on which the warranty period under the
Westlake Contract expires by its terms (or, if later, the date on which the
relevant Acquired Company makes the last payment due by, or receives the last
payment due to, it under the Westlake Contract (such date, the “Expiration Date”), then the US Seller
shall pay to the US Purchaser fifty per cent (50%) of the Excess Amount.  Subject to the US Purchaser complying with
its obligations under Clauses 14.2.2(b) and 14.2.3, any payment required
to be made by the US Seller under this Clause 14.2.1 shall be made within
thirty (30) days of the Expiration Date.

 

14.2.2              The US Purchaser
shall deliver to the US Seller:

 

(a)           after Completion,
periodic statements, on a quarterly basis, setting out a summary of all amounts
paid or received by the relevant Acquired Company in relation to the Westlake
Contract during the immediately preceding calendar quarter; and

 

(b)           as promptly as
reasonably practicable after the Expiration Date, a final statement setting out
in reasonable detail the calculation of the Excess Amount.

 

14.2.3              The US Purchaser
shall procure that the relevant Acquired Company provides to the US Seller any
and all information (including supporting documentation), and access to the
premises, books, accounting records and other documentation, and all relevant
personnel, of such Acquired Company reasonably requested by the US Seller for
purposes of verifying the Excess Amount.

 

15.                  OTHER
PROVISIONS

 

15.1                 Announcements

 

15.1.1              The initial press
release announcing the terms of this Agreement shall be a joint press release,
which shall be approved by the Parties prior to its announcement.  In addition, at or about the time of such
announcement, CB&I may make a power point presentation to, inter alia, its investors and analysts, disclosing such
further details as regards the terms of this Agreement as would be standard
practice as regards a company whose shares are traded on the New York Stock
Exchange.  Such power point presentation
shall also be approved by the Parties prior to its disclosure to third
parties.  Thereafter, and except as
provided in Clause 15.1.2, no announcement or public statement shall be
made by any Party relating to this Agreement or the Transactions without the
prior written consent of the other Party (which consent shall not be
unreasonably withheld or delayed).

 

15.1.2              A Party may make
an announcement relating to this Agreement or the Transactions if (and only to
the extent) required by Applicable Law or any securities exchange, regulatory
or other Governmental Entity; provided that, prior to making such
announcement, such Party shall take all steps as may be reasonable in the
circumstances to agree the contents of such announcement with the other Party.

 

34

 

15.1.3              The restrictions
on announcements in this Clause 15.1 shall continue to apply after the
termination of this Agreement pursuant to Clause 4.5, 5 or 7.5 without
limitation in time.

 

15.2                 Assignment

 

15.2.1              Except as
otherwise expressly provided in this Agreement, neither this Agreement nor any
of the rights, interests or obligations hereunder (including any cause of
action arising in connection herewith) shall be assigned by any Party without
the prior written consent of the other Party.

 

15.2.2              Clause 15.2.1
notwithstanding, any Party may assign any of its rights and interests (but not
its obligations) to any of its Affiliates; provided that, if any such
assignee subsequently ceases to be an Affiliate of such Party, the relevant
Party shall procure that, prior to such assignee thus ceasing to be an
Affiliate of such Party, such rights and interests be reassigned to such Party
or to another constituting Affiliate of such Party.

 

15.3                 Entire Agreement

 

15.3.1              This Agreement,
together with the Other Transaction Documents, constitutes the entire agreement
of the Parties with respect to the Transactions and supersedes all prior
agreements and understandings, oral and written, with respect thereto, other
than the Confidentiality Agreement.

 

15.3.2              The Parties
confirm that they have not entered into this Agreement on the basis of any
representation, warranty, statement or undertaking whatsoever not expressly set
out in this Agreement.

 

15.3.3              Without limiting
the generality of Clause 15.3.2, the Purchasers acknowledge that:

 

(a)           except as
expressly incorporated into any of the Sellers’ Warranties, the Sellers do not
make or give, and shall not be deemed to have made or given, any
representation, warranty, statement or undertaking whatsoever, either express
or implied, as to the accuracy or completeness of any information provided or
made available by or on behalf of the Sellers to the Purchasers or any of their
Affiliates in connection with the Transactions, including any information set
out in the Due Diligence Materials; and

 

(b)           no Person has
been authorised by the Sellers to make or give any representation, warranty,
statement or undertaking whatsoever relating to the Sellers, any Acquired
Company, the Business or any Joint Venture or otherwise in connection with the
Transactions, including in relation to the Due Diligence Materials, and, if
made, such representation, warranty statement or undertaking must not be relied
upon as having been authorised by the Sellers.

 

15.4                 Severance and Validity

 

If any provision
of this Agreement is or becomes illegal, invalid or unenforceable in any
respect under the law of any jurisdiction, such provision shall be deemed to be
severed from this Agreement.  The
remaining provisions will remain in full force in that jurisdiction and all provisions
will continue in full force in any other jurisdiction.

 

15.5                 Variations

 

No variation of
this Agreement shall be effective unless in writing and signed by or on behalf
of the Parties.

 

35

 

15.6                 Remedies and Waivers

 

15.6.1              No waiver of any
right under this Agreement shall be effective unless in writing.  Unless expressly stated otherwise, a waiver
shall be effective only in the circumstances for which it is given.

 

15.6.2              No delay or
omission by any Party in exercising any right or remedy provided by Applicable
Law or under this Agreement shall constitute a waiver of such right or
remedy.  For the avoidance of doubt,
nothing in this Clause 15.6.2 shall be deemed to extend in any way the
time limits set out in paragraph 1 of Schedule 7 (The Sellers’
Limitations of Liability).

 

15.6.3              The single or
partial exercise of a right or remedy under this Agreement shall not preclude
any other nor restrict any further exercise of any such right or remedy.

 

15.6.4              The Parties
agree, to the extent permitted by law, that the only right and remedy in
relation to breach of any of the Sellers’ Warranties or the CB&I Warranties
shall be for contractual damages for breach of this Agreement.

 

15.6.5              Except as
expressly set out in this Agreement, no Party shall be entitled to rescind or
terminate this Agreement in any circumstances whatsoever (whether before or
after Completion) for breach of any of the Sellers’ Warranties or the CB&I
Warranties or any other obligation set out in this Agreement.

 

15.6.6              Nothing in this
Clause 15.6 shall operate to limit or exclude any liability for fraud.

 

15.7                 Further Assurances

 

Following
Completion, the Sellers shall from time to time forthwith upon request from the
Purchasers, at the Sellers’ expense, execute or procure to be executed all such
documents as the Purchasers may reasonably require for the purpose of vesting
in the Purchasers the full legal and beneficial title to the Shares and,
thereby, indirect ownership of the Business.

 

15.8                 Third Party Rights

 

15.8.1              Clauses 6.3,
11.1, 11.2, 11.3, 11.5 and 11.6 confer benefits to members of the ABB Group,
Clause 11.8 confers benefits to W&C and Clauses 3.2.2, 8.4 and
11.5 confer benefits to the Acquired Companies. 
All of such benefits are intended to be enforceable by any the
beneficiary by virtue of the Contracts (Rights of Third Parties) Act 1999.

 

15.8.2              Except as set out
in Clause 15.8.1, a Person who is not a Party to this Agreement shall have
no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
of the terms of this Agreement.

 

15.8.3              Notwithstanding
the provisions of Clause 15.8.1, this Agreement may be varied in any way
and at any time by the Parties without the consent of any Person on whom
Clause 15.8.1 confers rights under the Contracts (Rights of Third Parties)
Act 1999.

 

15.9                 Costs and Expenses

 

Except as
provided otherwise in this Agreement, each Party shall pay its own costs and
expenses in connection with the negotiation, preparation and performance of
this Agreement, including the fees and expenses of such Party’s counsel and
financial advisers.

 

36

 

15.10               Notices

 

15.10.1            All notices,
consents, requests, demands, waivers and other communications (“Notices”) required or permitted to be
given under this Agreement shall be in the English language in writing and
signed by or on behalf of the Party giving it and marked for the attention of
the other Party.  A Notice may be
delivered personally or sent by fax, pre-paid recorded delivery or
international courier to the address or fax number provided in
Clause 15.10.3.

 

15.10.2            A Notice shall be deemed to
have been received:

 

(a)           at the time of
delivery if delivered personally;

 

(b)           at the time of
transmission if sent by fax;

 

(c)           five (5) Business
Days after the time and date of posting if sent by pre-paid recorded delivery;
or

 

(d)           three (3) Business
Days after the time and date of posting if sent by international courier;

 

provided
that if deemed receipt of any Notice occurs after 6.00 p.m. or is not on a
Business Day, deemed receipt of the Notice shall be 9.00 a.m. on the next
Business Day.  References to time in this
Clause 15.10.2 are to local time in the country of the addressee.

 

15.10.3            The addresses and
fax numbers for service of Notice are as follows:

 

(a)           if to the Sellers
and/or ABB, to:

 

[ABB Holdings Inc. / ABB
Holdings B.V.

c/o] ABB Asea Brown Boveri Ltd

Affolternstrasse 44

P.O. Box 8131

CH-8050 Zurich

Switzerland

Attention:              General
Counsel

Fax:                         +41
43 317 7992

 

with a copy (which shall not
constitute notice) to:

 

White & Case LLP

5 Old Broad Street

London EC2N 1DW

United Kingdom 

Attention:              Mats
Sacklén

Fax:                         +44
(0)20 7532-1001

 

(b)           if to the
Purchasers and/or CB&I, to:

 

[Chicago Bridge &
Iron Company / Chicago Bridge & Iron Company B.V.

c/o] Chicago Bridge & Iron Company N.V.

P.O. Box 2043

2130 GE Hoofddorp

The Netherlands

Attention:              Chief
Executive Officer

Fax:                         + 31
023 568 5671

 

37

 

with a copy (which shall not constitute
notice) to:

 

Chicago Bridge &
Iron Company

One CB&I Plaza

2013 Research Forrest Drive

The Woodlands

Texas  77380-2624

USA

Attention:              General
Counsel

Fax:                         + 1
832 513-1791

 

and to:

 

Ashurst

Broadwalk House

5 Appold Street

London EC2A 2HA

United Kingdom 

Attention:              Susan
Roy (ref: C777.00022)

Fax:                         +44
(0)20 7638 1112

 

15.10.4            A Party shall
notify the other Parties of any change to its address in accordance with the
provisions of this Clause 15.10; provided that such notification
shall only be effective on the later of the date specified in the notification
and five (5) Business Days after deemed receipt.

 

15.10.5            For the purposes
of this Agreement:

 

(a)           any Notice signed
by any one Seller shall be deemed to be signed by and given on behalf of both
of the Sellers and any Notice given to any one Seller shall be deemed to be
given to both of the Sellers; and

 

(b)           any Notice signed
by any one Purchaser shall be deemed to be signed by and given on behalf of
both of the Purchasers and any Notice given to any one Purchaser shall be
deemed to be given to both of the Purchasers.

 

15.11               Counterparts

 

This Agreement
may be executed in counterparts and shall be effective when each Party has
executed one counterpart.  Each
counterpart shall constitute an original of this Agreement.

 

15.12               Governing Law and
Jurisdiction

 

15.12.1            This Agreement shall be
governed by and construed in accordance with English law.

 

15.12.2            The Parties irrevocably
agree that the courts of England are to have exclusive jurisdiction to settle
any dispute which may arise out of or in connection with this Agreement and
proceedings in respect of any dispute may be brought in such courts.

 

15.13               Agent for Service of
Process

 

15.13.1            The Sellers irrevocably
appoint ABB Limited of Daresbury Park, Daresbury, Cheshire, WA4 4BT
Warrington, United Kingdom (marked for the attention of: Company Secretary /
Chief Financial Officer) as their agent for service of process in England.

 

38

 

15.13.2            The Purchasers irrevocably
appoint Ashurst of Broadwalk House, 5 Appold Street, London EC2A 2HA,
United Kingdom (marked for the attention of: Susan Roy (ref: C777.00022))
as its agent for service of process in England.

 

15.13.3            If any Person appointed as
agent for service of process ceases to act as such, the relevant Party shall
immediately appoint another Person to accept service of process on its behalf
in England and notify the other Party of such appointment.  If it fails to do so within ten (10) Business
Days, the other Party shall be entitled by notice to the relevant Party to
appoint a replacement agent for service of process.

 

15.14               Specific Enforcement

 

The Parties agree
that irreparable damage may occur in the event that any of the provisions of
this Agreement were not performed in accordance with their specific terms or
were otherwise breached.  Accordingly,
the Parties are, subject to the discretion of the relevant court of competent
jurisdiction, entitled to an injunction or injunctions to prevent breaches of
this Agreement and to enforce specifically the terms and provisions of this
Agreement, in addition to any other remedy to which they are entitled at law or
in equity.

 

15.15               No Set-Off

 

Neither Party
shall be entitled to exercise any right of set-off or counterclaim against, or
otherwise withhold payment of, any sums payable by such Party to the other
Party under this Agreement unless otherwise agreed in writing by the Parties.

 

15.16               Rules of
Construction

 

The Parties agree
that they have been represented by counsel during the negotiation and execution
of this Agreement and, therefore, waive the application of any Applicable Law,
holding or rule of construction providing that ambiguities in an agreement
or other document will be construed against the Party drafting such agreement
or document.

 

IN WITNESS WHEREOF
each Party has executed this Agreement, or caused this Agreement to be executed
by its duly authorised representatives.

 

39

 

SCHEDULE
1

DEFINITIONS AND INTERPRETATION

 

1.             Definitions

 

1.1           When used in this
Agreement, the following terms and expressions shall have the respective
meanings set out below:

 

“ABB” shall
have the meaning set out in the preamble to this Agreement.

 

“ABB Group”
means ABB and its subsidiaries from time to time (excluding, for the avoidance
of doubt, the Acquired Group).

 

“ABB Marks”
shall have the meaning set out in Clause 11.6.1.

 

“ABB Occurrence Policies”
shall have the meaning set out in Clause 11.5.2.

 

“ABB Post-Retirement Health
and Life Insurance Plan” shall have the meaning set out in
Clause 11.2.2.

 

“ABB Retained Plans”
shall have the meaning set out in Clause 11.2.3.

 

“Acquired Company”
means either of the Companies or any of their respective subsidiaries, but shall not include the Joint Ventures.

 

“Acquired Company Employees”
shall have the meaning set out in Clause 11.2.2.

 

“Acquired Group”
means all of the Acquired Companies.

 

“Action”
means any written action, complaint, petition, suit, arbitration or other
proceeding, whether civil or criminal, at law or in equity, by or before any
Governmental Entity.

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, such first Person.  For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, through the ownership
of voting securities, by Contract, or otherwise.  Each Acquired Company shall be deemed an
Affiliate of the Sellers prior to, and an Affiliate of the Purchasers as from,
Completion.

 

“Applicable Law”
means, as to any Person, any statute, law, ordinance, rule or regulation
of any Governmental Entity in any jurisdiction applicable from time to time to
such Person or to any of its businesses or assets.

 

“Asbestos Condition”
shall have the meaning set out in Clause 4.1.1(d).

 

“Assumed Plan”
shall have the meaning set out in Clause 11.2.1.

 

“Balance”
shall have the meaning set out in Clause 14.1.2.

 

“Balance Sheet”
shall have the meaning set out in paragraph 4.1 of Schedule 5 (The Sellers’ Warranties).

 

“Balance Sheet Date”
means 31 December 2006.

 

40

 

“Benefit Arrangement”
shall have the meaning set out in Clause 11.2.4(a).

 

“Bidder Representatives”
shall have the meaning set forth in the Confidentiality Agreement.

 

“Books and Records”
shall have the meaning set out in Clause 11.3.1.

 

“Break Fee”
shall have the meaning set out in Clause 4.3.2.

 

“Business”
means the business of the Acquired Group of providing process technology,
project management or engineering, procurement or construction services to the
upstream or downstream oil and gas, refining or petrochemical industries, as
conducted as of the date of this Agreement.

 

“Business Day”
means any day except a Saturday, a Sunday or any other day on which commercial
banks are not generally open for business in all of Zurich, Switzerland,
London, England and New York, New York.

 

“Cash Balance Plan”
shall have the meaning set out in Clause 11.2.3.

 

“CB&I”
shall have the meaning set out in the preamble to this Agreement.

 

“CB&I Group”
means CB&I and its subsidiaries from time to time (including, after
Completion, the Acquired Group).

 

“CB&I Warranties”
means the warranties referred to in Clause 9 and set out in Schedule 6 (CB&I’s Warranties).

 

“Civil Law Notary”
means a civil law notary of Nauta Dutilh.

 

“Code” means
the United States Internal Revenue Code of 1986, as amended, and the
regulations promulgated and the rulings issued thereunder.

 

“Company”
and “Companies” shall have the
respective meanings set out in the recitals to this Agreement.

 

“Competition Authority”
means any Governmental Entity having jurisdiction with respect to the
Transactions pursuant to applicable Competition Laws.

 

“Competition Laws”
means all Applicable Law that are designed or intended to, among other things,
exercise merger control and prohibit agreements which restrict competition.

 

“Completion”
means completion of the sale and purchase of the Shares pursuant to
Clause 7.

 

“Completion Date”
shall have the meaning set out in Clause 7.3.

 

“Conditions to Completion”
shall have the meaning set out in Clause 4.1.1.

 

“Confidentiality Agreement”
means the Confidentiality Agreement made by way of letter dated 4 April 2007
between Chicago Bridge & Iron Company and ABB.

 

“Contract”
means any agreement, contract or other legally binding instrument, including in
each case all amendments thereto.

 

“Deed of Transfer”
means the notarial deed of transfer in such form as the Purchasers may
reasonably require evidencing the transfer of the NL Shares from the
NL Seller to the Purchasers pursuant to the laws of the Netherlands.

 

41

 

“Deferred Compensation Plan”
shall have the meaning set out in Clause 11.2.3.

 

“Deferred Completion
Notification” shall have the meaning set out in Clause 
7.3(a).

 

“Derivatives Contract”
means any hedging or other derivatives contract between a member of the ABB
Group, on the one hand, and any Acquired Company, on the other hand.

 

“Divestiture”
shall have the meaning set out in Clause 4.2.4(a).

 

“Due Diligence Materials”
means information: (i) set out in the Information Memorandum headed “ABB
Lummus Global” issued by Credit Suisse and dated March 2007 or in any
other materials prepared by or on behalf of the Sellers, including the VDD; (ii) made
available in any “data room” (virtual or otherwise), including any Information
and Evaluation Material (as those terms are defined in the Confidentiality
Agreement); (iii) provided in any management presentation or in any “break-out”
or follow-up discussion with management, or in connection with any “site visit”;
or (iv) provided or made available in response to any questions submitted
by or on behalf of the Purchasers or any of their Affiliates.

 

“Early Termination Date”
shall have the meaning set out in Clause 11.7.1.

 

“Encumbrance”
means any lien, security interest, mortgage, pledge, encumbrance or charge of
any kind.

 

“Environmental Issues”
shall have the meaning set out in Clause 14.1.1.

 

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

 

“Excess Amount”
shall have the meaning set out in Clause 14.2.1.

 

“Existing NL Shares”
shall have the meaning set out in the recitals to this Agreement.

 

“Existing Shares”
shall have the meaning set out in the recitals to this Agreement.

 

“Existing US Shares”
shall have the meaning set out in the recitals to this Agreement.

 

“Expiration Date”
shall have the meaning set out in Clause 14.2.1.

 

“Financial Statements”
shall have the meaning set out in paragraph 4.1 of Schedule 5 (The Sellers’ Warranties).

 

“Governmental Entity”
means any domestic or foreign court, arbitral tribunal, administrative agency
or commission or other governmental or regulatory agency or authority or any
securities exchange.

 

“Indebtedness”
of any Person means the principal amount of any indebtedness for borrowed money
and any accrued interest, prepayment premiums and penalties related thereto
(which, for the avoidance of doubt, shall not include any accounts payable or
accounts receivable arising in the ordinary course of trade); provided
that Indebtedness shall not include indebtedness owing from any Acquired
Company to any other Acquired Company.

 

“Intellectual Property”
means patents, petty patents, utility models, trade marks, service marks, trade
and business names, registered designs, design rights, copyright and
neighbouring rights, database rights, domain names, mask work rights, semi-conductor
topography rights and rights in inventions, trade secrets, confidential
information of all kinds 

 

42

 

and other similar proprietary rights which may
subsist in any part of the world and whether registered or not.

 

“Inter-Company Debt”
means any Indebtedness owed by any Seller or any other member of ABB Group, on
the one hand, to any Acquired Company, on the other hand, and any Indebtedness
owed by any Acquired Company, on the one hand, to any Seller or any other
member of the ABB Group, on the other hand.

 

“Inter-Company
Debt Statement” means a schedule setting out:

 

(a)           the amount of Inter-Company
Debt owing by each of the Acquired Companies at Completion, in the currency in
which the debt is owed, gross of any repayments to be effected pursuant to
Clause 3.2.1 and identifying the relevant Acquired Companies by whom any
amount of Inter-Company Debt is owed and the relevant members of the ABB Group
to whom the monies are owed;

 

(b)           the amount of Inter-Company
Debt to be repaid to each of the Acquired Companies at Completion pursuant to
Clause 3.2.1, in the currency in which the debt is owed, identifying the
relevant Acquired Companies to whom any amount of Inter-Company Debt is owed
and the relevant members of the ABB Group by whom the monies are to be paid;

 

(c)           the amount of Inter-Company
Debt to be repaid by each of the Acquired Companies at Completion in accordance
with Clause 3.2.2, in the currency in which the debt is owed, net of any
repayments to be effected pursuant to Clause 3.2.1 and identifying the
relevant Acquired Companies by whom any amount of Inter-Company Debt is owed
and the relevant members of the ABB Group to whom the monies are owed; and

 

(d)           the requisite details of the
account to which the Inter-Company Debt owed by the Acquired Group shall be
paid at Completion in accordance with Clause 3.2.2.

 

“IRS” means
the Internal Revenue Service of the United States.

 

“IT Systems”
means computing and communication systems and equipment (including hardware,
proprietary and third party software, networks, peripherals and associated
documentation).

 

“Joint Venture”
means each of (i) Chevron Lummus Global LLC; (ii) Catalytic
Distillation Technologies; and (iii) Hua Lu Engineering Co., Ltd.

 

“Lease Agreements”
shall have the meaning set out in paragraph 14.2 of Schedule 5 (The Sellers’ Warranties).

 

“Leased Real Property”
shall have the meaning set out in paragraph 14.2 of Schedule 5 (The Sellers’ Warranties).

 

“Locked-Box Claim”
means any claim pursuant to Clauses 6.2.2(c), 6.2.2(d) or 6.2.2(e),
and any claim pursuant to paragraphs 6.3(a), 6.3(b) or 6.3(c) of
Schedule 5 (The Sellers’ Warranties).

 

“Long-Stop Date”
shall have the meaning set out in Clause 4.5.1.

 

“Material Contract”
means a Contract to which an Acquired Company is a party (other than Contracts
between Acquired Companies), under which such Acquired Company, as of the 

 

43

 

date of this Agreement, has rights or obligations
(including warranty or indemnity obligations), and:

 

(a)           was entered into
on or after 1 January 2004 in the engineering, procurement and
construction (EPC) division of the Acquired Group, relates to the provision by
any Acquired Company of EPC services and requires scheduled payments to, or
receipts by, such Acquired Company in excess of fifteen million dollars
($15,000,000), unless such Contract: (i) is terminated on or prior to the
Completion Date; or (ii) is terminable upon sixty (60) days’ or less
notice by such Acquired Company, in either case without penalty and with no
remaining liability on the part of the Acquired Company;

 

(b)           was entered into
on or after 1 January 2006 in the process technology (PT) division of
the Acquired Group, relates to the provision by any Acquired Company of any PT
services or technology and requires scheduled payments to, or receipts by, such
Acquired Company in excess of five million dollars ($5,000,000), unless such
Contract (i) is terminated on or prior to the Completion Date; or (ii) is
terminable upon sixty (60) days’ or less notice by such Acquired Company, in
either case without penalty and with no remaining liability on the part of the
Acquired Company;

 

(c)           is a Contract
with an independent contractor relating to the provision of goods or services
by such contractor to any Acquired Company in connection with a Contract
described in subparagraph (a) or (b) above which requires
payments to such contractor in excess of fifteen million dollars ($15,000,000)
(in the case of a Contract described in subparagraph (a) above) or
five million dollars ($5,000,000) (in the case of a Contract described in
subparagraph (b) above);

 

(d)           is a Contract
with a licensor which requires payments by such Acquired Company in excess of
one million dollars ($1,000,000) per annum or which is otherwise material to
the Business, other than Contracts of a type referred to in subparagraph (f) below;

 

(e)           is a joint
venture, partnership, strategic alliance or joint development Contract other
than project-related joint ventures entered into in the ordinary course of
business of such Acquired Company;

 

(f)            relates to
Indebtedness of any Acquired Company with a principal balance in excess of five
million dollars ($5,000,000);

 

(g)           relates to the
lease or hire purchase of plant or equipment and requires aggregate payments by
such Acquired Company in excess of one million dollars ($1,000,000) in any
calendar year;

 

(h)           other than
Contracts entered into by any Acquired Company in the ordinary course of
business for the purchase or sale of products or services, is a Contract with a
member of the ABB Group; or

 

(i)            is a Contract
containing a covenant by such Acquired Company not to compete in or conduct any
line of business, other than Contracts referred to in subparagraphs (a) through
(h) of this defined term and other Contracts made available to the
Purchasers.

 

“Multiemployer Plan”
shall have the meaning set out in paragraph 16.1(a) of Schedule 5 (The Sellers’ Warranties).

 

“Net Early Termination
Amount” shall have the meaning set out in Clause 11.7.3.

 

44

 

“New NL Shares”
means all shares, if any, issued after the date of this Agreement by the
NL Company to the NL Seller in accordance with, and subject to the
conditions of, this Agreement.

 

“New Shares”
mean the New NL Shares and the New US Shares.

 

“New US Shares”
means all shares, if any, issued after the date of this Agreement by the
US Company to the US Seller in accordance with, and subject to the
conditions of, this Agreement.

 

“NJ Authority”
shall have the meaning set out in Clause 14.1.1.

 

“NL Acquired Company”
shall mean the NL Company or any of its subsidiaries.

 

“NL Base Equity Price”
shall have the meaning set out in Clause 3.1.2(a).

 

“NL Capital Increase
Amount” shall have the meaning set out in Clause 3.1.2(d).

 

“NL Company”
shall have the meaning set out in the recitals to this Agreement.

 

“NL Company Guarantee”
means the guarantee to be executed by the NL Company and the Sellers in
the agreed terms.

 

“NL Debt Conversion
Amount” shall have the meaning in Clause 3.1.2(c).

 

“NL Purchase Price”
shall have the meaning set out in Clause 3.1.2.

 

“NL Purchaser”
shall have the meaning set out in the preamble to this Agreement.

 

“NL Seller”
shall have the meaning set out in the preamble to this Agreement.

 

“NL Shares”
means the Existing NL Shares and, if applicable, the New NL Shares.

 

“Non-US Plans”
shall have the meaning set out in paragraph 16.1(b) of Schedule 5 (The Sellers’ Warranties).

 

“Notices”
shall have the meaning set out in Clause 15.10.1.

 

“Order”
means any judgment, order, injunction, decree, writ, permit, consent or license
of any Governmental Entity or any arbitrator.

 

“Other Transaction
Documents” means the Transitional Services Agreement, the
US Company Guarantee, the NL Company Guarantee and the Sellers’
Disclosure Letter.

 

“Owned Real Property”
shall have the meaning set out in paragraph 14.1 of Schedule 5 (The Sellers’ Warranties).

 

“Party”
means a party to this agreement or, as the context may require, the
US Seller and the NL Seller, on the one hand, and the
US Purchaser and the NL Purchaser, on the other hand.

 

“Parent Guarantees”
shall have the meaning set out in Clause 6.3.1(a).

 

“Permits”
shall have the meaning set out in paragraph 10.4 of Schedule 5 (The Sellers’ Warranties).

 

45

 

“Permitted Encumbrances”
means: (i) Encumbrances arising by operation of law for Taxes, assessments
and other governmental charges that are not yet due and payable or that may be
paid thereafter without penalty or the amount or validity of which is being contested
in good faith by appropriate proceedings; (ii) Encumbrances arising under
original purchase price conditional sales contracts and equipment leases with
third parties; (iii) publicly recorded easements, covenants, conditions
and restrictions, in each case to the extent that it affects real property; (iv) any
zoning or other restrictions or encumbrances established by any Governmental
Entity; (v) any mechanic’s, materialman’s, warehouse man’s, supplier’s,
vendor’s or similar Encumbrances arising or incurred by operation of law in the
ordinary course of trade securing amounts that are not overdue for a period of
more than ninety (90) days or the amount or validity of which is being
contested in good faith by appropriate proceedings; and (vi) railroad trackage
agreements, utility, slope and drainage easements, right of way easements and
leases regarding signs.

 

“Permitted Payments”
means: (i) any payment relating to intra-group trading between a member of
the ABB Group and a member of the Acquired Group in the ordinary course of
business and on arms’ length terms; (ii) any cash settlement within the
ABB Group cash settlement system; (iii) any repayment by an Acquired
Company of any Inter-Company Debt; (iv) any payment by any Acquired
Company of any obligation or liability that has been specifically accrued or
provided for in the Financial Statements (up to the amount thus accrued or
provided for); (v) any payment of fees consistent with past practice for
the provision of management and administrative services by a member of the ABB
Group, up to a maximum of one million three hundred thousand dollars
($1,300,000) in the aggregate; (vi) any contributions consistent with past
practice to any pension or other employee benefit plan providing benefits for
any employees of the Acquired Group; (vii) any payment relating to the
Leased Real Property, including any property management or maintenance service
fees associated with the Leased Real Property located in Singapore, Beijing,
China, Ladenberg Germany and Houston, United States in each case, in accordance
with any lease agreement or management or service agreement relating to such
Leased Real Property; (viii) any payment consistent with past practices
for the provision of services relating to insurance, information technology,
human resources, travel or other similar arrangements, and any payment
consistent with past practices for the use of software or Internet domain
names, in each case in the ordinary course of business; and (ix) any
payment which is disclosed pursuant to the Sellers’ Disclosure Letter.

 

“Person”
means any individual, partnership, limited liability partnership, joint
venture, corporation, limited liability company, trust, unincorporated
organisation, association, Governmental Entity, or other entity.

 

“Pre-Completion Losses”
shall have the meaning set out in Clause 11.5.2.

 

“Pre-Completion Period”
means any taxable period that ends on or before the Completion Date or, with
respect to any taxable period beginning on or before and ending after the Completion
Date, the portion of such taxable period ending on and including the Completion
Date.

 

“Prior Service”
shall have the meaning set out in Clause 11.2.6.

 

“PRISM Plan”
shall have the meaning set out in Clause 11.2.3.

 

“Provision”
shall have the meaning set out in Clause 14.1.2.

 

“Purchase Price”
shall have the meaning set out in Clause 3.1.2.

 

46

 

“Purchaser”
and “Purchasers” shall have the meaning
set out in the preamble to this Agreement.

 

“Purchaser Post-Retirement
Health and Life Insurance Plan” shall have the meaning set out
in Clause 11.2.2.

 

“Registered Intellectual
Property” means any of the following: (i) patents, petty
patents and utility models and any applications therefor; (ii) registered trademarks
and service marks, pending trademark and service mark registration
applications, and intent-to-use registrations or similar reservations of marks;
(iii) registered designs and applications for registrations of designs;
and (iv) Internet domain names.

 

“Regulatory Condition”
shall have the meaning set out in Clause 4.1.1(a).

 

“Remediation Plan”
shall have the meaning set out in Clause 14.1.1.

 

“Representatives”
of any Person means such Person’s directors, managers, members, officers,
employees, agents, advisors and other representatives (including attorneys,
accountants, consultants, financial advisors, financing sources and any
representatives of such advisors or financing sources).

 

“Returns”
means all tax returns, statements, forms and reports (including elections,
waivers or extensions, declarations, disclosures, Schedules, estimates and
information returns) for Taxes.

 

“Securities Act”
means the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

“Seller” and
“Sellers” shall have the meaning set
out in the preamble to this Agreement.

 

“Sellers’ Disclosure Letter”
means the letter of today’s date from the Sellers to the Purchasers disclosing
exceptions to the Sellers’ Warranties and delivered to the Purchasers on or
before the execution of this Agreement.

 

“Sellers’ Warranties”
means the warranties referred to in Clause 8.1 and set out in Schedule 5 (The Sellers’ Warranties).

 

“Settlement Statement”
shall have the meaning set out in Clause 11.7.2.

 

“Shareholder Approval
Condition” shall have the meaning set out in
Clause 4.1.1(b).

 

“Shares”
means the Existing Shares and, if applicable, the New Shares.

 

“Surviving Provisions”
means Clauses 1, 11.8, 11.9, 15.1 - 15.4 (inclusive), 15.6, 15.8 - 15.14
(inclusive) 15.16 and Schedule 1 (Definitions and
Interpretation).

 

“Tax Authority”
shall mean any government, state or municipality or any local, state, federal
or other fiscal, revenue, customs or excise authority, body or official in any
jurisdiction competent to impose, collect or assess any Tax.

 

“Tax Warranties”
means those Sellers’ Warranties set out in paragraph 20 of Schedule 5 (The Sellers’ Warranties).

 

“Taxes”
means all taxes, assessments, charges, duties, fees, levies or other
governmental, national, state, provincial, local governmental or municipal,
charges including all income, 

 

47

 

franchise, profits, capital gains, capital stock,
transfer, sales, use, occupation, property, excise, severance, windfall
profits, stamp, license, payroll, value added, stamp duty land tax, withholding
and other taxes, (whether payable directly or by withholding and whether or not
requiring the filing of a Return), all estimated taxes, deficiency assessments,
additions to tax and penalties, fines and interest with respect thereto, and “Tax” or “Taxation”
shall be construed accordingly.

 

“Third-Party Claim”
shall have the meaning set out in paragraph 15 of Schedule 7 (The Sellers’ Limitations of Liability).

 

“Third-Party Guarantees”
shall have the meaning set out in Clause 6.3.1(b).

 

“Transactions”
means the sale and purchase of the Shares and the other transactions
contemplated by this Agreement.

 

“Transitional Services
Agreement” shall mean the Transitional Services Agreement in the
agreed terms to be entered into between the Sellers and the Purchasers on the
Completion Date.

 

“United States”
shall mean the United States of America.

 

“US Acquired Company”
shall mean the US Company or any of its subsidiaries, but
shall not include the Joint Ventures.

 

“US Base Equity Price”
shall have the meaning set out in Clause 3.1.1(a).

 

“US Capital Increase
Amount” shall have the meaning set out in Clause 3.1.1(d).

 

“US Company”
shall have the meaning set out in the recitals to this Agreement.

 

“US Company Guarantee”
means the guarantee to be executed by the US Company and the Sellers in
the agreed terms.

 

“US Debt Conversion
Amount” shall have the meaning set out in 3.1.1(c).

 

“US GAAP”
shall mean the generally accepted accounting principles of the United States.

 

“US Plans”
shall have the meaning set out in paragraph 16.1(a) of Schedule 5 (The Sellers’ Warranties).

 

“US Purchase Price”
shall have the meaning set out in Clause 3.1.1.

 

“US Purchaser”
shall have the meaning set out in the preamble to this Agreement.

 

“US Seller”
shall have the meaning set out in the preamble to this Agreement.

 

“US Shares”
means the Existing US Shares and, if applicable, the New US Shares.

 

“VAT” means,
within the European Union, the tax imposed in accordance with Council Directive
77/338/EEC dated 17 March 1977 as implemented through the national
laws of each member state, and, outside the European Union, means any similar
tax.

 

“VDD” means
the Vendor Due Diligence Report dated 11 May 2007, prepared by Ernst &
Young AG and relating to the Acquired Group, which Vendor Due Diligence Report
has been delivered to the Purchasers prior to the date hereof.

 

48

 

“WARN” shall
have the meaning set out in Clause 11.2.8.

 

“Warranty Claim”
means any claim for breach of any of the Sellers’ Warranties.

 

“Westlake Contract”
shall have the meaning set out in Clause 14.2.1

 

“W&C”
shall have the meaning set out in Clause 11.8.1.

 

1.2           Certain terms and
expressions used solely in Schedule 8  (Tax Covenant) shall have the respective meanings given in
Schedule 8 (Tax Covenant).

 

2.             Interpretation

 

2.1           In this
Agreement, unless the context otherwise requires:

 

(a)           the expression “in the agreed terms” means in the
form agreed between the Sellers and the Purchasers and signed for the purposes
of identification by or on behalf of the Sellers and the Purchasers;

 

(b)           any reference to “writing” or comparable expressions
includes a reference to any method of reproducing words in a legible and non-transitory
form (excluding, for the avoidance of doubt, email);

 

(c)           the phrases “delivered” or “made
available” shall mean, when used in a Sellers’ Warranty, that
information physically or electronically delivered or made available to the
Purchasers by virtue of having been posted in the “data room” (virtual or
otherwise) established by the Sellers, or otherwise attached to the Sellers’
Disclosure Letter.

 

(d)           the words “hereof”, “herein”,
“hereto” and “hereunder”,
and words of similar import shall refer to this Agreement as a whole and not to
any provision of this Agreement;

 

(e)           references to
this “Agreement” or any other agreement
or document shall be construed as a reference to this Agreement or, as the case
may be, such other agreement or document as the same may have been, or may from
time to time be, amended, varied, novated or supplemented;

 

(f)            “include”, “includes,”
and “including” are deemed to be
followed by “without limitation” whether or not they are in fact followed by
such words or words of similar import;

 

(g)           references to a “company” include any company,
corporation or other body corporate wherever and however incorporated or
established;

 

(h)           references to “member” in the context of the ABB
Group means ABB or any of its subsidiaries;

 

(i)            references to “substantiated” in the context of a
claim against the Sellers under this Agreement means a claim for which the
Sellers may be liable and which is admitted or proved in a court of competent
jurisdiction;

 

(j)            the expressions “body corporate”, “holding company”, “subsidiary” and “subsidiary undertaking” shall have
the meaning given in the Companies Act 1985 (as amended from time to time);

 

49

 

(k)           references to “dollars” or “$”
are to United States dollars; and

 

(l)            references to “euros” or “€”
are to the lawful currency of the European Union from time to time.

 

2.2           Words expressed
in the singular number shall include the plural and vice versa; words expressed
in the masculine shall include the feminine and neuter gender and vice versa.

 

2.3           References to any
statute or statutory provision include a reference to that statute or statutory
provision as amended, consolidated or replaced from time to time (whether
before or after the date of this Agreement) and include any subordinate
legislation made under the relevant statute or statutory provision, except to
the extent that any amendment, consolidation or replacement would increase or
extend the liability of a Party under this Agreement.

 

2.4           References to any
English legal term for any action, remedy, proceedings, legal document, legal
status, court, official or any legal concept or thing shall, in respect of any
jurisdiction other than England, be deemed to include what most nearly
approximates in that jurisdiction to the English legal term.

 

50

 

SCHEDULE
2

THE ACQUIRED GROUP

 

Part 1

Details of the Companies

 

	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  130989425
  (Federal ID)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 19,
  1930 - Delaware, USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  3010 Briarpark,
  Houston, TX 77042

  1515 Broad Street, Bloomfield, NJ 07003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  100,000 shares,
  no par value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  61,160 shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Holdings, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M.W. Gross

  R. Widmer

  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  27154588

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  November 26,
  1990 – The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan 75

  2596 JJ The Hague

  The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,115 shares,
  €100 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €22,500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Holdings,
  B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  G.F. Kolff

  M.W. Gross

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  

 

51

 

Part 2

Details of the other Acquired Companies

 

	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Engineering
  und Consulting GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  HRB Wiesbaden
  8720

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 18,
  1992 - Germany

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Lorenz-Schott-Str.4

  D-55252
  Mainz-Kastel

  Wiesbaden,
  Germany

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  50,000 DM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  50,000 DM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M. Ludwig

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global China Co. Ltd

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  Qi Du Hu Pu
  Zong Zi No. 314928

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  February 6,
  2002 - Pudong New Area, Shanghai, PRC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Room 813,
  China Merchants Tower

  No. 161 East Lu Jia Zui Road

  Pudong New Area

  Shanghai 200120

  People’s Republic of China

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  $350,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  D. McCarthy

  G. F. Kolff

  S.V. Kolala

  Y. J. Chen

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB IOP
  Services Limited (in liquidation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  03293507

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 17,
  1996 - England

  

 

52

 

	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Aquila House, 

  35 London Road

  Redhill

  Surrey RH1 1NJ

  England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  5,000 shares of
  £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  A.C. Stevens

  M. J. Ford

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  L.A. Sheach

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB LGI
  Constructors, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  061334972

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 7,
  1992 - Delaware, USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  3010 Briarpark
  Drive

  Houston

  TX 77042

  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,500, no par
  value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M.W. Gross

  D.M. McCarthy

  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if applicable)

  	
   

  	
  :

  	
   

  	
  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Crest Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  02729834

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  July 9,
  1992 – England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Aquila House, 

  35 London Road

  Redhill

  Surrey RH1 1NJ

  England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global B.V.

  

 

53

 

	
  Directors

  	
   

  	
  :

  	
   

  	
  L.T.M. Kester

  G.F. Kolff

  R.B. Ulf

  A.C. Stevens

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  L.A. Sheach

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus Crest Mauritius

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  13118/947

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  August 2,
  1994 - Mauritius

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  De Chazal Du Mee
  Building

  10, Frere Felix de Valois Street

  Port Louis, Mauritius

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  $10 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  10 shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  L.T.M. Kester

  G.F. Kolff

  Y. Kumar Juwaheer

  U. Kumar Gujadhur

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  Multiconsult
  Limited, Mauritius

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  PriceWaterhouseCoopers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  OOO ABB Lummus
  Global

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  1027739107967

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  March 28,
  2001 – Russian Federation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Fridrikh Engels
  Street, 32

  Bldg. 1, 2nd Floor

  Moscow 105005

  Russian Federation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  10,000 Rubles

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1 share of
  10,000 Rubles

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  S. V. Serdinov

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  

 

54

 

	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  27049906

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 7,
  1984 - The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan 75

  2596 JJ The Hague

  The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  272,270 shares
  of €100 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €5,445,400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  G.F. Kolff

  M.W. Gross

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting reference
  date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Cyprus Ltd. (in liquidation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  96816

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  August 25,
  1998 - Republic of Cyprus

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  2-4 Arch.
  Makarios III Avenue, 9th Floor

  Capital Center

  1505 Nicosia

  Cyprus

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  CYP 1,000
  shares of CYP 1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  CYP 1,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V. (90%)

  ABB Lummus Global B.V. (10%)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  G.F. Kolff

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  ATS Services
  Ltd., Nicosia

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  HRB Wiesbaden
  2919

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  May 6,
  1965 - Germany

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Lorenz Schott
  Strasse 4, D-55252

  Mainz Kastel

  Germany

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  2,600,000 DM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  2,600,000 DM

  

 

55

 

	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M. Ludwig

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global International Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  061334973
  (Federal ID)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 7,
  1992 - Delaware, USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  3010 Briarpark

  Houston

  TX 77042

  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,500 shares of
  no par value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M. W. Gross

  M. Duplantier

  K. Farid

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Ltda

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  62,497,656/0001-19
  (Taxpayers’ registry number)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  March 5,
  1974 - Sao Paulo, Brazil

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Av. dos
  Autonomistas, 1496

  06020-902

  Osasco

  Sao Paulo

  Brasil

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  R$19,393,548

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  R$19,393.548

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global, Inc (19,393,546 quotas)

  ABB Lummus Global International Corporation (2 quotas)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  C.A. Reboucas

  J.A. Zaparolli

  N. Romano

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  C.A. Rossi

  

 

56

 

	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Overseas Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  132623361
  (Federal ID)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  November 1,
  1968 - Delaware, USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  3010 Briarpark

  Houston

  TX 77042

  United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  100 shares of
  US$10 par value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  K. Farid

  M. Duplantier

  M. J. Ford

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Pte Ltd

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  198400246W

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 19,
  1984 – Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  2, Ayer Rajah
  Crescent

  Ayer Rajah Complex

  Singapore 139935

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  550,000 of SGD1
  each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  SGD 527,802

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  N.T. Hallett

  M.W. Gross

  R.H.N. Widmer

  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  L.S. Wah

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global s.r.o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  44014350

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  October 24,
  1991 - Czech Republic

  

 

57

 

	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  1957/13 Milady
  Horakove

  65680 Brno

  Czech Republic

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1 share of
  100,000 Czech crowns

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1 share of
  100,000 Czech crowns

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  H. Jicinsky

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Technology B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  27186172

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 4,
  2000 - The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan 75

  2596 JJ The Hague

  The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  €100 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €20,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  L. T. M. Kester

  M. Duplantier

  R.C. Movig

  J.R. Albanese Jr.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  22853

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  February 21,
  2007 - Egypt

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Intersection of
  Makram Ebeid & Abdel Razzak Al Sanhoury Streets

  Nasr City

  Cairo – 11762

  P. O. Box 7630

  Nasr City, 8th District

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  EGP50,000 (500
  shares of EGP100 each)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  EGP50,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V. (90%)

  ABB Lummus Global B.V. (10%)

  

 

58

 

	
  Directors

  	
   

  	
  :

  	
   

  	
  H. Schwarz

  S.T. Gawad

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus Heat
  Transfer B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  27110728

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 7,
  1984 - The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan 75

  2596 JJ The Hague

  The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  22,690 shares
  of €100 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €453,800

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  M.B. Tolba

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Malta Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  C 30107

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  August 19,
  2002 - Malta

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  2nd Floor,
  Level 5

  The Mall Complex, The Mall

  Floriana FRN 1470

  Malta

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,000,000
  shares of €1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  100,000 shares
  of €1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V. (99,999 shares)

  ABB Lummus Global B.V. (1 share)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  G. F. Kolff

  L.T.M. Kester

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  E. Carbone

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Lutech
  Resources Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  02726614

  

 

59

 

	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  June 26,
  1992 – England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Aquila House

  35 London Road

  Redhill

  Surrey RH1 1NJ

  England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  1,000 shares of
  £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  A.C. Stevens

  L.T.M. Kester

  R.D. Dawson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  L.A. Sheach

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  ABB Novolen Technology GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  HRB Ladenberg
  701809

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  December 20,
  2006 - Germany

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  Wallstadter
  Str. 59

  68526 Ladenburg 

  Germany 68526

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  €25,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €25,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global GmbH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  G. Follmer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  Combustion
  Engineering Technology Investment Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  Canada
  Corporation No. 247304-6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  May 9,
  1989 – Canada

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  8585
  Trans-Canada Highway

  Ville St-Laurent

  Quebec, Canada

  H4S 1Z6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  Unlimited, no
  par value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  

 

60

 

	
  Directors

  	
   

  	
  :

  	
   

  	
  M.W. Gross

  M. Duplantier

  M.J. Ford

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  Margaret
  Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  Lummus Alireza
  Ltd, Co.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  2051011082
  (Commercial Registration No.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 11,
  1977 - Saudi Arabia

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address / Principal place of business

  	
   

  	
  :

  	
   

  	
  Sadat Tower,
  King Abdul Aziz Street

  P.O. Box 31682

  Al Khobar 31952

  Saudi Arabia

  31952

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  SR 3,500,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  SR 3,500,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global B.V (96%)

  Heirs of M. A. Alireza (4%)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  T. Kawash

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company name

  	
   

  	
  :

  	
   

  	
  Lummus Catalyst
  Company Ltd.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  061334969
  (Federal ID)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  January 7,
  1992 - Delaware, USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  address /Principal place of business

  	
   

  	
  :

  	
   

  	
  1515 Broad
  Street

  Bloomfield

  NJ 07003, United States

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  1,500, no par
  value

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  K. Farid

  D. M. McCarthy

  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  M. Duplantier

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting reference
  date

  	
   

  	
  :

  	
   

  	
  31 December

  

 

61

 

	
  Company name

  	
   

  	
  :

  	
   

  	
  Lummus
  Contracting B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company number

  	
   

  	
  :

  	
   

  	
  27117132

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date and place
  of incorporation

  	
   

  	
  :

  	
   

  	
  November 24,
  1986 -The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered address
  / Principal place of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan 75

  2596 JJ The Hague

  The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  share capital

  	
   

  	
  :

  	
   

  	
  910 shares of
  €100 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share
  capital

  	
   

  	
  :

  	
   

  	
  €18,200

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholder

  	
   

  	
  :

  	
   

  	
  ABB
  Oil & Gas Europe B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
  :

  	
   

  	
  R.B. Ulf

  H. M. Koese

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Partnership
  name

  	
   

  	
  :

  	
   

  	
  Novolen
  Technology Holdings C.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of
  formation

  	
   

  	
  :

  	
   

  	
  August 22,
  2000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Principal place
  of business

  	
   

  	
  :

  	
   

  	
  Oostduinlaan
  75, 2596 JJ The Hague, The Netherlands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Partnership
  interests

  	
   

  	
  :

  	
   

  	
  ABB Lummus
  Global B.V. (14.89%)

  ABB Oil & Gas Europe B.V. (85.11%)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary (if
  applicable)

  	
   

  	
  :

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Auditors

  	
   

  	
  :

  	
   

  	
  Ernst &
  Young

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  reference date

  	
   

  	
  :

  	
   

  	
  31 December

  

 

62

 

SCHEDULE
3

REGULATORY CONDITION

 

1.                                     Antitrust
clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations promulgated thereunder, permitting
the consummation of the sale and purchase of the Shares as envisaged hereunder.

 

63

 

SCHEDULE
4

COMPLETION ARRANGEMENTS

 

Part 1

The Sellers’ Obligations

 

At Completion:

 

1.                                     The
Sellers shall procure that repayment of any and all Inter-Company Debt owing to
any Acquired Company as at Completion is effected in accordance with
Clause 3.2.1.

 

2.                                     The
NL Seller shall execute the Deed of Transfer before the Civil Law Notary.

 

3.                                     The
US Seller shall deliver to the Purchasers or Ashurst certificates
representing the US Shares duly endorsed in blank, or stock powers in
respect of the US Shares duly executed in blank.

 

4.                                     The
Sellers shall deliver to the Purchasers or Ashurst:

 

(a)                                  the
Transitional Services Agreement, duly executed by the Sellers;

 

(b)                                 the
US Company Guarantee duly executed by the Sellers and the US Company;

 

(c)                                  the
NL Company Guarantee duly executed by the Sellers and the NL Company;

 

(d)                                 opinion
letters, in such form as the Purchasers may reasonably require, dated as of the
Completion Date and duly executed by White and Case LLP in relation to the
US Seller, Nauta Dutilh in relation to the NL Seller and Homburger or
Bär & Karrer in relation to ABB;

 

(e)                                  a
certified copy of each power of attorney under which any document to be
delivered by any Seller to the Purchasers in connection with this Agreement has
been executed;

 

(f)                                    a
certified extract of the minutes of the meeting of the board of directors (or
comparable governing body) of each of the Sellers authorising (or ratifying)
the execution, delivery and performance of this Agreement; and

 

(g)                                 a
certificate issued by ABB confirming the payment by a member of the ABB Group
of two hundred and four million dollars ($204,000,000) to the CE Asbestos PI
Trust.

 

5.                                     The
Sellers shall deliver to the Purchasers or to Ashurst (to the extent not
already in the possession of an Acquired Company):

 

(a)                                  the
statutory books (written up to, but not including, Completion), certificate of
incorporation (or equivalent constituent document) and common seal (if any) of
each Acquired Company; and

 

(b)                                 certificates
in respect of all the shares or equity interests of each Acquired Company
listed in Part 2 of Schedule 2 (The Acquired Group)
and Joint Venture that are owned by an Acquired Company to the extent such
shares or equity interests are required to be certificated by Applicable Law or
such Acquired Company’s or Joint Venture’s constituent documents.

 

64

 

Part 2

The Purchasers’ Obligations

 

At Completion:

 

1.                                     The
Purchasers shall procure that the Purchase Price shall be paid in full by
telegraphic transfer in immediately available cleared funds to the accounts
notified by the Sellers to the Purchasers in accordance with Clause 7.2.1,
with the US Purchase Price being paid in dollars and the NL Purchase
Price being paid in euros.

 

2.                                     The
Purchasers shall procure that the net aggregate amount of Inter-Company Debt to
be repaid by the Acquired Group at Completion in accordance with
Clause 3.2.2, in dollars (converted in accordance with Clause 3.2.3,
is paid in full by telegraphic transfer in immediately available cleared funds
to the account notified by the Sellers to the Purchasers in accordance with
Clause 7.1.1.

 

3.                                     The
Purchasers shall execute the Deed of Transfer before the Civil Law Notary.

 

4.                                     With
respect to all Parent Guarantees and Third-Party Guarantees in respect of which
the Purchasers have procured the release of the relevant members of the ABB
Group as contemplated by Clause 6.3, the Purchasers shall deliver evidence
reasonably satisfactory to the Sellers that the relevant members of the ABB
Group have been irrevocably released in full from their respective obligations
with respect to such Parent Guarantees and Third-Party Guarantees, in each case
in a manner consistent with Clause 6.3.

 

5.                                     The
Purchasers shall deliver to the Sellers or W&C:

 

(a)                                  a
counterpart of the Transitional Services Agreement, duly executed by the
Purchasers;

 

(b)                                 a
certified copy of each power of attorney under which any document to be
delivered by any Purchaser to the Sellers in connection with this Agreement has
been executed;

 

(c)                                  a
certified extract of the minutes of the meeting of the board of directors of
each of the Purchasers and CB&I (or comparable governing body) authorising
(or ratifying) the execution, delivery and performance of this Agreement;

 

(d)                                 opinion
letters, in such form as the Sellers may reasonably require, dated as of the
Completion Date and duly executed by Fulbright & Jaworski in relation
to the US Purchaser and Baker & McKenzie in relation to the
NL Purchaser and CB&I; and

 

(e)                                  the
unconditional letters of credit and/or bank guarantees due to be delivered in
accordance with the provisions of Clause 6.3.4.

 

65

 

SCHEDULE
5

THE SELLERS’ WARRANTIES

 

1.                                     Organisation and Authority of the Sellers

 

1.1                               Each
of the Sellers and ABB is a company duly organised or incorporated (as
applicable), validly existing and, to the extent such concept is applicable to
such Seller or ABB, in good standing under the laws of the jurisdiction of its
organisation and has the requisite capacity, power and authority to execute,
deliver and perform this Agreement.

 

1.2                               The
execution, delivery and performance of this Agreement by each of the Sellers
has been duly authorised and approved by the board of directors (or comparable
governing body) of such Seller, and no other corporate or similar action on the
part of such Seller is necessary to authorise the execution, delivery and
performance of this Agreement.

 

1.3                               This
Agreement constitutes legal, valid and binding obligations of each of the
Sellers and ABB in accordance with its terms.

 

1.4                               The
execution, delivery and performance by each of the Sellers and ABB of this
Agreement does not conflict with or constitute a breach of (i) any
provision of the by-laws, the memorandum and articles of association or
equivalent constitutional documents of such Seller or ABB; or (ii) any
Order applicable to such Seller or ABB or by which the assets of such Seller or
ABB are bound, in each case which would reasonably be expected, individually or
in the aggregate, to materially and adversely affect the performance by such
Seller or ABB of its obligations under this Agreement.

 

1.5                               Except
for the consents or approvals contemplated to be obtained or filings
contemplated to be made prior to Completion pursuant to Clause 4.2, or as
would not reasonably be expected, individually or in the aggregate, to affect
materially and adversely the performance by any of the Sellers and ABB of its
obligations under this Agreement, no consent, approval or authorisation of any
Governmental Entity is required to be obtained by any of the Sellers and ABB in
connection with the execution, delivery and performance of this Agreement.

 

2.                                     Ownership of the Shares

 

2.1                               The
NL Seller is the sole legal and beneficial owner of the Existing
NL Shares and the US Seller is the sole legal and beneficial owner of
the Existing US Shares.

 

2.2                               The
Existing NL Shares constitute the entire issued and outstanding share
capital of the NL Company and the Existing US Shares constitute all
of the outstanding shares of capital stock of the US Company.

 

2.3                               The
Existing Shares have been properly issued, are fully paid up and are free from
all Encumbrances.

 

2.4                               If
and when issued, the NL Seller will be the sole legal and beneficial owner
of the New NL Shares and the US Seller will be the sole legal and
beneficial owner of the New US Shares. 
The New Shares, if and when issued, will have been properly issued, will
be fully paid up and will be free from all Encumbrances.

 

2.5                               There
are no outstanding options or warrants pursuant to which any Company is or may
become obliged to issue or sell any shares or other equity interests of such
Company, or any securities convertible into, exchangeable for, any such shares
or equity interests.

 

66

 

3.                                     Acquired Group

 

3.1                               Part 1
of Schedule 2 (The Acquired Group) sets out
certain details of the Companies and Part 2 of Schedule 2 (The Acquired Group) sets out certain details of all other
Acquired Companies.  The details set out
in Schedule 2 (The Acquired Group) are true and
accurate in all material respects.

 

3.2                               Each
Acquired Company is a company or other entity duly organised or incorporated
(as applicable), validly existing and, to the extent such concept is applicable
to such Acquired Company, in good standing under the laws of the jurisdiction
of its organisation.  The Sellers have
made available to the Purchasers true and correct copies of the by-laws, the
memorandum and articles of association or equivalent constitutional documents
of each Acquired Company prior to the date of this Agreement.

 

3.3                               Except
as otherwise set out in Part 2 of Schedule 2 (The Acquired
Group), and except for the Existing Shares, all shares of or other
equity interests in each Acquired Company are owned, legally and beneficially,
by another Acquired Company.  All shares
of any Acquired Company have been properly issued, and all such shares or other
equity interests in an Acquired Company that are owned by another Acquired
Company are fully paid up, and, in each case, are free from all Encumbrances,
except for any rights of pre-emption or similar Encumbrances referred to in the
constituent documents of the relevant Acquired Company.

 

3.4                               There
are no outstanding options or warrants pursuant to which any Acquired Company
listed in Part 2 of Schedule 2 (The Acquired Group)
is or may become obliged to issue or sell any shares or other equity interests
of such Acquired Company, or any securities convertible into, exchangeable for,
any such shares or equity interests.

 

3.5                               Except
for marketable securities held for investment purposes and except for shares or
equity interests in the Joint Ventures, no Acquired Company owns any shares of
or other equity interests in any Person (other than another Acquired Company).

 

4.                                     Financial Statements

 

4.1                               The
Sellers have made available to the Purchasers the audited combined balance
sheet of the Acquired Group as at the Balance Sheet Date, and the related
audited combined statements of operations, cash flows and changes in parent
investment (deficit) for the fiscal year then ended (the audited combined
balance sheet of the Acquired Group as at the Balance Sheet Date is hereinafter
referred to as the “Balance Sheet”
and together with the related audited combined statements of operations, cash
flows and changes in parent investment (deficit) for the fiscal year then
ended, the “Financial Statements”).  Except as described in the footnotes thereto,
the Financial Statements were prepared in accordance with US GAAP.

 

4.2                               Except
as described in the footnotes thereto, the Balance Sheet fairly presents, in
all material respects, the combined financial position of the Acquired Group as
at the Balance Sheet Date, and the related audited combined statements of
operations, cash flows and changes in parent investment (deficit) fairly
present, in all material respects, the combined results of operations, cash
flows and changes in parent investment (deficit) of the Acquired Group taken as
a whole for the fiscal year then ended, in each case in conformity with
US GAAP.

 

4.3                               No
Acquired Company is engaged in any sale and leaseback, securitisation,
factoring or other similar financing of a type which would not be required
under US GAAP to be shown or reflected in financial statements prepared in
accordance with US GAAP.

 

67

 

5.                                     Management Accounts

 

The unaudited
combined management accounts attached as schedule 5 of the Sellers’ Disclosure
Letter, taken as a whole, give a fair presentation in all material respects of
the financial position of the Acquired Group as of 30 June 2007, and of
the results of operations for the six-month period then ended, and were
prepared on a basis consistent in all material respects with the principles
applied in the preparation of the Financial Statements.

 

6.                                     Events Since Balance Sheet Date

 

6.1                               From
and including 1 January 2007 to the date of this Agreement the
Acquired Group has, in all material respects, carried on the Business in the
ordinary course.

 

6.2                               So
far as the Sellers are aware and other than: (i) changes in general
economic or political conditions or the financing, banking, currency or capital
markets in general; (ii) changes affecting generally any or all
industries, markets or geographic areas in which the Acquired Companies conduct
their respective businesses; or (iii) normal seasonal changes in the
results of operations of the Acquired Companies, from and including 1 July 2007
to the date of this Agreement, there has been no material adverse change in the
results of operation or financial condition of the Acquired Group, taken as a
whole.

 

6.3                               From
and including 1 January 2007 to the date of this Agreement, no
Acquired Company has:

 

(a)                                  declared,
made or paid any dividend or other distribution, or made any redemption,
purchase or other acquisition of any of its shares or other equity interests,
other than dividends or distributions to another Acquired Company;

 

(b)                                 except
for Permitted Payments, made any payment of any consulting, advisory or
management fee, or other similar fee or payment, to any member of the ABB
Group;

 

(c)                                  other
than interest rates which varied in accordance with their terms, varied any
interest rate payable in respect of any Inter-Company Debt, or paid any fees in
respect of any such Inter-Company Debt;

 

(d)                                 other
than sales of inventory in the ordinary course of trade, sold, leased or
otherwise disposed of (including by way of licence) any of its properties or
assets, other than any assets having a value of less than one hundred thousand
dollars ($100,000) individually;

 

(e)                                  incurred
any Indebtedness, other than unsecured short-term bank Indebtedness on
arms-length terms or Indebtedness that will constitute Inter-Company Debt;

 

(f)                                    given
any guarantee, indemnity or other agreement to secure, or incurred financial or
other obligations with respect to, another Person’s obligation (other than any
other Acquired Company);

 

(g)                                 made
any acquisitions of any corporation, company, partnership, other business
organisation or any business or any division thereof;

 

(h)                                 incurred
any capital expenditure in excess of one million five hundred thousand dollars
($1,500,000) in the aggregate, other than as budgeted for in the current annual
budget of the Acquired Group;

 

(i)                                     except
with respect to the adoption of the ABB Lummus Global Inc. Retirement Income
Restoration Plan (which shall be the ABB Lummus Global Inc. portion of the 

 

68

 

ABB Retirement Income
Restoration Plan) and except on a case by case basis: (i) amended the
terms of employment or engagement of its employees (including as regards
pension plans and other employee benefits, and whether or not contractual),
other than in accordance with current contractual obligations or practice; or (ii) provided
gratuitous payments or benefits to its employees or any of their dependents,
other than in accordance with current practice;

 

(j)                                     made
announcements to the employees generally of any Acquired Company promising or
representing that there will be any change to existing pension and death in
service benefits (including, for the avoidance of doubt, any promises or
representations to provide new or further pension and death in service benefits
or change the level of employer contributions to any such arrangement); or

 

(k)                                  agreed,
or made an offer capable of acceptance, to take any of the foregoing actions
set out in this paragraph 6.3.

 

7.                                     Accounting and Other Records

 

The books of account and all
other statutory records of each Acquired Company are: (i) up-to-date; (ii) in
its possession; and (iii) are true and complete in accordance with
Applicable Law, in each case in all material respects.

 

8.                                     Assets

 

The Acquired Group has the right
to use all assets (tangible or intangible) used in the Business.  In the case of such assets which are owned by
a member of the Acquired Group, such assets are free from Encumbrances other
than Permitted Encumbrances.

 

9.                                     Indebtedness

 

No Acquired Company has any
liability for any Indebtedness for borrowed money or any accrued interest,
prepayment premiums and penalties related thereto (which, for the avoidance of
doubt, shall not include any accounts payable or accounts receivable arising in
the ordinary course of trade), other than Inter-Company Debt.

 

10.                               Applicable Law and Permits

 

10.1                           So
far as the Sellers are aware, the Acquired Companies are conducting, and have
during the three (3) years ending on the date of this Agreement, conducted
their respective businesses and affairs and dealt with their respective assets
in all material respects in compliance with Applicable Law, except for any such
non-compliance that would not reasonably be expected to have, individually or
in the aggregate, a material adverse effect on the results of operation or
financial condition of the Acquired Group taken as a whole.

 

10.2                         Without
prejudice to paragraph 10.1, so far as the Sellers are aware, none of the
Acquired Companies has, during the three (3) years ending on the date of
this Agreement:

 

(a)                                  induced
a person to enter into an agreement or arrangement with an Acquired Company by
means of an unlawful or immoral payment, contribution, gift or other
inducement;

 

(b)                                 offered
or made an unlawful or immoral payment, contribution, gift or other inducement
to a government official or employee; or

 

(c)                                  directly
or indirectly made an unlawful contribution to a political activity,

 

69

 

in each case which would
amount to a violation of Applicable Law, except for any such violation that
would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the results of operation or financial condition of
the Acquired Group taken as a whole.

 

10.3                         So
far as the Sellers are aware, none of the Acquired Companies is subject to any
investigation, enquiry or disciplinary proceeding (whether judicial,
quasi-judicial or otherwise) involving a Governmental Entity in any
jurisdiction and none is pending or threatened. 
During the twelve (12) months ending on the date of this Agreement,
no Acquired Company has received written notice from any Governmental Entity to
the effect that it will be subject to any such investigation, enquiry,
proceeding or request for information.

 

10.4                         So
far as the Sellers are aware, the Acquired Group holds all permits, approvals,
licenses, authorisations and exemptions from Governmental Entities
(collectively, the “Permits”)
that are necessary for the operation of the Business and each Acquired Company
is in material compliance with all Permits held by it.

 

11.                               Material Contracts

 

11.1                         Schedule 11.1
of the Sellers’ Disclosure Letter contains a list of all Material Contracts.
The Sellers have made available to the Purchasers complete and accurate copies
of all commercial terms of all Material Contracts.

 

11.2                         The
Material Contracts represent:

 

(a)                                  with
respect to the Contracts referred to in paragraph (a) of the
definition of “Material Contracts”, sixty-five per cent. (65%) of the orders
received, including adjustments to orders received in previous years, by the
Acquired Group relating to the provision of engineering, procurement and
construction services for the financial year ending 31 December 2006;
and

 

(b)                                 with
respect to the Contracts referred to in paragraph (b) of the
definition of “Material Contracts”, sixty-five per cent. (65%) of the
orders received by the Acquired Group relating to the provision of process
technology services for the financial year ending 31 December 2006.

 

11.3                         Each
Material Contract is in full force and effect and constitutes legal, valid and
binding obligations of the relevant Acquired Company in accordance with its
terms.

 

11.4                         So
far as the Sellers are aware, no party is in material breach of any Material
Contract and no written allegation of any such breach, or written notice of
termination, of any Material Contract has been served or received by any
Acquired Company within the twelve-month period immediately preceding the date
of this Agreement that remains unresolved.

 

11.5                         No
Acquired Company has outstanding any tender or other offer which, if it had
been accepted prior to the date of this Agreement, would have given rise to
what would be a Material Contract.

 

12.                               Intellectual Property

 

12.1                         Schedule 12.1
of the Sellers’ Disclosure Letter contains a list, as at the date of this
Agreement, of all Registered Intellectual Property that is owned by the
Acquired Group, and, so far as the Sellers are aware, the Acquired Group has
taken all steps reasonably necessary to 

 

70

 

maintain all such Registered
Intellectual Property in force (including making all necessary filing and
paying all required fees in a timely manner).

 

12.2                         So
far as the Sellers are aware, with the exception of any pending applications,
all Registered Intellectual Property listed in Schedule 12.1 of the
Sellers’ Disclosure Letter is in full force and effect in each jurisdiction in
which it is registered.  No Acquired
Company has received, within the twelve-month period immediately preceding the
date of this Agreement, written notice of any opposition to the grant of, or of
any application for revocation of, or any challenge to the validity of any such
Registered Intellectual Property.

 

12.3                         So
far as the Sellers are aware, the Acquired Group has taken all steps reasonably
necessary to maintain, in all material respects, the confidentiality of any and
all Intellectual Property owned by the Acquired Group constituting trade
secrets.

 

12.4                         No
Acquired Company has received, during the twelve (12) months ending on the
date of this Agreement, written notice of any claim that the use by the
Acquired Group of any Intellectual Property in connection with the Business
infringes the Intellectual Property of any third Person, other than
infringements which, individually, would reasonably be expected to require a
monetary payment by the Acquired Group of less than one million dollars
($1,000,000) (following which payment the relevant Acquired Company would be
entitled to continue to use the relevant Intellectual Property, free of
charge).

 

12.5                         So
far as the Sellers are aware, there is no current or pending claim or
litigation by any Acquired Company alleging that another Person is infringing
or has infringed any of the Intellectual Property owned by any Acquired
Company, except for any claim or litigation that would reasonably be expected
to require a monetary payment to an Acquired Company of less than one million
dollars ($1,000,000).

 

13.                               Information Technology

 

13.1                         No
Acquired Company (nor any Seller) has received any written notification during
the twelve (12) months ending on the date of this Agreement that an
Acquired Company is in material default under any licence or lease under which
it is permitted to use any IT Systems necessary for the conduct of the
Business.

 

13.2                         During
the twelve (12) months ending on the date of this Agreement, no material
weaknesses have been cited in any report by the auditors of any Acquired
Company in connection with the IT Systems used by the Acquired Group.

 

13.3                         So
far as the Sellers are aware, each Acquired Company is validly licensed to use
all third-party software used in connection with the IT Systems and material to
the Business.

 

14.                               Real Property

 

14.1                         Schedule 14.1
of the Sellers’ Disclosure Letter contains a list, as at the date of this
Agreement, of all real property owned in whole or in part by any Acquired
Company (collectively, the “Owned Real Property”).  One of the Acquired Companies has good title
to the Owned Real Property, free and clear of all Encumbrances, other than
Permitted Encumbrances and Encumbrances that will be released at or prior to
Completion.  No material portion of any
Owned Real Property is leased by any Acquired Company to any Person (other than
an Acquired Company).

 

14.2                         Schedule 14.2
of the Sellers’ Disclosure Letter contains a list, as at the date of this
Agreement, setting forth the street address of all real property leased in
whole or in part by any Acquired Company other than real property which is
leased by any Acquired Company 

 

71

 

for site-related
construction projects (collectively, the “Leased Real Property”).  The Sellers have made available to the
Purchasers complete and accurate copies of all leases relating to the Leased
Real Property (the “Lease Agreements”).  Each Lease Agreement is in full force and
effect and constitutes legal, valid and binding obligations of the relevant
Acquired Company in accordance with its terms.

 

14.3                         So
far as the Sellers are aware, no party is in material breach of any Lease
Agreement and no written allegation of any such breach, or written notice of
termination of any Lease Agreement, has been served or received by any Acquired
Company within the twelve-month period immediately preceding the date of this
Agreement that remains unresolved.

 

14.4                         All
rents and other payments due on or prior to the date of this Agreement in
respect of the Leased Real Property under the relevant lease have been paid in
full.

 

15.                               Employees

 

15.1                         Schedule 15.1
of the Sellers’ Disclosure Letter contains lists, as of the date of this
Agreement, of:

 

(a)                                  each
and every employment agreement between an Acquired Company and any of the
senior-level management employees of the Acquired Group identified in such
Schedule 15.1; and

 

(b)                                 each
and every collective bargaining agreement applicable to any employee of the
Acquired Group (other than national or industry-wide collective bargaining
agreements or collective bargaining agreements imposed by Applicable Law) under
which any Acquired Company has any outstanding future or contingent material
obligations or liabilities.

 

15.2                         The
Sellers have made available to the Purchasers complete and accurate copies of
all agreements referred to in paragraph 15.1 (or, if no such agreement
exists, a summary of the principal terms of employment).

 

15.3                         So
far as the Sellers are aware:

 

(a)                                  there
is no pending or threatened: (i) labour strike, work stoppage or
other similar industrial action against any Acquired Company; (ii) unfair
labour practice charge or complaint against any Acquired Company; (iii) union
grievance against any Acquired Company, except, in the case of sub-paragraphs (ii) or
(iii), as would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect on the results of operation or financial
position of the Acquired Group taken as a whole; and

 

(b)                                 there
is no pending or threatened: (i) employment discrimination charge
(including as to pay or other employment conditions) against any Acquired
Company; or (ii) other claim (whether civil, criminal, arbitration,
administrative or otherwise) against any Acquired Company by any employee or
former employee of the Acquired Group or by any Governmental Entity on behalf
of any employee or former employee, except, where the charge or claim should
not reasonably be expected to result in a liability on the part of the relevant
acquired Company of more than one hundred thousand dollars ($100,000)
individually.

 

15.4                         So
far as the Sellers are aware, as at the date of this Agreement, the Business is
being conducted in all material respects in compliance with Applicable Law
relating to employment and employment practices (including health and safety,
and as regards data protection and privacy rights), terms and conditions of
employment and wages and hours.

 

72

 

15.5                         The
employee records of each Acquired Company are: (i) up-to-date; (ii) in
its possession; and (iii) true and complete in accordance with Applicable
Law, in each case in all material respects.

 

16.                               Pensions and Other Employee Benefits

 

16.1                         Schedule 16.1
of the Sellers’ Disclosure Letter contains a list, as at the date of this
Agreement, of:

 

(a)                                  each
material employee benefit plan within the meaning of Section 3(3) of
ERISA subject to Title I of ERISA maintained and sponsored by, and each “multiemployer
plan” within the meaning of Section 4001(a)(3) of ERISA (each, a “Multiemployer Plan”) contributed to
by, any Acquired Company (collectively, the “US Plans”);
and

 

(b)                                 each
material written plan or programme providing retirement or post-retirement,
termination and/or health and welfare benefits maintained or contributed to
outside the United States by any Acquired Company or for which provision is
made by any Acquired Company outside the United States (collectively, the “Non-US Plans”);

 

in each case, excluding any plan, programme or
arrangement sponsored by any Governmental Entity (such as social security or
similar government-mandated programmes).

 

16.2                         Except
as would not reasonably be expected to have, individually or in the aggregate,
a material adverse effect on the results of operation or financial position of
the Acquired Group taken as a whole:

 

(a)                                  each
US Plan (other than any Multiemployer Plan) and each Non-US Plan is
in material compliance with Applicable Law and is being administered and
operated in accordance with its terms;

 

(b)                                 each
Non-US Plan that is capable of being formally approved or qualified by, or
registered with, the appropriate taxation, social security, supervisory, fiscal
or other applicable Governmental Entity in the relevant jurisdiction, in order
to obtain tax approved, favoured or qualified status in such jurisdiction, has
been so approved, qualified or registered and none of the Acquired Companies
has received, during the thirty six (36) months ending on the date of this
Agreement, notice from any Governmental Entity to the effect that such
approved, qualified or registered status is likely to be withdrawn;

 

(c)                                  the
Sellers have, for the Assumed Plan, and each Acquired Company has, for each
US Plan (including each Multiemployer Plan) and Non-US Plan, accrued
on the books and records of the relevant Acquired Company or made all contributions
to each US Plan (including each Multiemployer Plan) and each
Non-US Plan required by the terms of each such US Plan or
Non-US Plan or any collective bargaining agreement or Applicable Law to be
made by such Acquired Company since 1 January 2004; and

 

(d)                                 there
are no pending or, so far as the Sellers are aware, threatened claims in
writing (whether civil, criminal, arbitration, administrative or otherwise)
with respect to any US Plan (other than any Multiemployer Plan) or any
Non-US Plan (other than routine claims for benefits payable in the
ordinary course and appeals of such denied claims).

 

73

 

16.3         Except as would
not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the results of operation or financial position of
the Acquired Group taken as a whole:

 

(a)           so far as the
Sellers are aware, since 27 April 2004 in respect of any pension
scheme which is subject to the laws and jurisdiction of England, no act or
omission has taken place, and no circumstances exist which would reasonably be
expected to expose the Acquired Companies (including their directors) to any
liabilities arising under section 38 to 51 (inclusive) of the Pensions Act
2004;

 

(b)           all death
benefits which may be payable (other than a refund of members’ contributions
with interest, where appropriate), are fully insured with an insurance company
authorised to carry on long-term insurance business;

 

(c)           for each
US Plan (other than any Multiemployer Plan) that any Acquired Company
intends to be “qualified” within the meaning of Section 401(a) of the
Code, such Acquired Company has received, or has requested, a favourable
determination letter from the IRS or is comprised of a master or prototype plan
that has received a favourable opinion letter from the IRS;

 

(d)           no US Plan
covered by Title IV of ERISA (other than any Multiemployer Plan) has been
terminated and, so far as Sellers are aware, no proceedings have been
instituted to terminate or appoint a trustee to administer any such plan;

 

(e)           since 1 January 2004,
no “reportable event” as defined in Section 4043 of ERISA, for which the
30-day notice requirement has not been waived by the Pension Benefit Guaranty
Corporation, has occurred with respect to any US Plan covered by
Title IV of ERISA (other than any Multiemployer Plan);

 

(f)            no US Plan
(other than any Multiemployer Plan) subject to Section 412 of the Code or Section 302
of ERISA has incurred any accumulated funding deficiency within the meaning of Section 412
of the Code or Section 302 of ERISA, or obtained a waiver of any minimum
funding standard or an extension of any amortisation period under Section 412
of the Code or Section 303 or 304 of ERISA; and

 

(g)           no Acquired
Company has incurred any unsatisfied withdrawal liability under Part 1 of
Subtitle E of Title IV of ERISA to any Multiemployer Plan.

 

17.           Insurance

 

17.1         Schedule 17.1
of the Sellers’ Disclosure Letter sets out a list, as at the date of this
Agreement, of each current insurance policy maintained by the Acquired
Group.  Copies of all of such policies
have been made available to the Purchasers.

 

17.2         So far as the
Sellers are aware, each insurance policy referred to in paragraph 17.1 is
valid and enforceable.  Each Acquired
Company has paid all premiums due in respect of all the insurance policies
maintained by it.

 

17.3         Schedule 17.3
of the Sellers’ Disclosure Letter sets out reasonable details of all individual
claims in excess of one million dollars ($1,000,000) by an Acquired Company
outstanding under any of the insurance policy maintained by the Acquired Group,
and of all matters of which the Sellers are aware which they expect might give
rise to any such claim.

 

17.4         Schedule 17.4
of the Sellers’ Disclosure Letter sets out a list, as at the date of this
Agreement, of all agreements between any Acquired Company and insurers in
connection with the 

 

74

 

settlement of any asbestos-related claims against an
Acquired Company.  Copies of all of such
agreements have been made available to the Purchasers.

 

18.           Litigation

 

18.1         None of the
Acquired Companies is involved in a civil, criminal, arbitration,
administrative or other legal or administrative proceeding, other than any such
proceeding which, if adversely determined, individually would reasonably be
expected to require a monetary payment by the relevant Acquired Company of less
than two million dollars ($2,000,000).

 

18.2         No Acquired
Company has received, during the twelve (12) months ending on the date of this
Agreement, notice in writing of any claim that would reasonably be expected to
give rise to a civil, criminal, arbitration, administrative or other legal or
administrative proceeding involving an Acquired Company, other than any such
proceeding which, if adversely determined, individually would reasonably be
expected to require a monetary payment by the relevant Acquired Company of less
than two million dollars ($2,000,000).

 

18.3         None of the
Acquired Companies has, during the three (3) years ending on the date of
this Agreement, been involved in a civil, criminal, arbitration, administrative
or other legal or administrative proceeding which has been resolved or settled,
other than any such proceedings which resulted in a monetary payment by or to
the relevant Acquired Company of less than two million dollars ($2,000,000).

 

18.4         There is no
outstanding Order against any Acquired Company under which any such Acquired
Company has performance or other obligations which have not been satisfied.

 

19.           Insolvency

 

19.1         No order has been
made, petition presented or resolution passed by an Acquired Company for the
winding up of such Acquired Company or for the appointment of a provisional
liquidator to any Acquired Company.

 

19.2         No Acquired
Company is in administration and no written notice has been received by an
Acquired Company during the twelve (12) months ending on the date of this
Agreement that a Person has taken any step (including the service of any notice
or the filing of any document(s)) to place any Acquired Company in
administration.

 

19.3         No receiver,
receiver and manager or administrative receiver has been appointed of the whole
or part of any Acquired Company’s business or assets.

 

19.4         No Acquired
Company has entered into any compromise or arrangement with its creditors or
any class of its creditors generally.

 

19.5         None of the
Acquired Companies and the Sellers is unable to pay its debts within the
meaning of section 123 of the Insolvency Act 1986 (but for this purpose
ignoring the reference to “if it is proved to the satisfaction of the court
that” in section 123(1)(e) and 123(2)).

 

20.           Taxes

 

20.1         All Returns relating
to Tax which are required to be filed on or prior to the date of this Agreement
with respect to the assets, income or operations of any Acquired Company have
been filed, and have been true, correct and complete in all material respects.

 

75

 

20.2         All Taxes shown
on the Returns referred to in paragraph 20.1 have been paid when due and
payable, after giving effect to any applicable extensions, or have been accrued
on the books and records of the relevant Acquired Company.

 

20.3         There are no
material audits or claims by any Tax Authority (whether civil, criminal,
arbitration, administrative or otherwise) presently being contested with regard
to Taxes or Returns of any Acquired Company.

 

20.4         No Acquired Company
is involved in any material dispute in relation to Tax with any Tax Authority.

 

20.5         No Acquired
Company has, during the twelve (12) months ending on the date of this
Agreement, paid, or received any written notice from any Tax Authority to the
effect that it may be liable to pay, any penalty, fine, surcharge or interest
in connection with any Tax.

 

20.6         Each Acquired
Company: (i) is a registered taxable person for the purposes of applicable
VAT legislation; (ii) has not been a member of any VAT group during the
twelve (12) months ending on the date of this Agreement; (iii) has,
during the three (3) years ending on the date of this Agreement, complied
in all material respects with the requirements and provisions of applicable VAT
legislation; and (iv) has maintained accurate and up to date records and
other documents required by applicable VAT legislation.

 

20.7         The amounts of
Tax chargeable on any Acquired Company during any accounting period ending on
or within three (3) years before the Balance Sheet Date has not to any
material extent depended on any concession, agreement or other formal or
informal arrangement with any Tax Authority.

 

20.8         Each Acquired
Company has properly operated the PAYE system (or other similar system outside
the UK) deducting Tax as required by Applicable Law from all payments to or
treated as made to or benefits provided for employees or ex-employees.

 

20.9         So far as the
Sellers are aware, each Acquired Company is and has been resident solely in the
jurisdiction of its incorporation for Tax purposes and has never been resident
in any other jurisdiction and where such Acquired Company has a permanent
establishment in any other jurisdiction, all taxes on profits attributable to
that permanent establishment have been paid.

 

20.10       So far as the
Sellers are aware, all transactions entered into between any Acquired Company
and any of the Sellers or members of the ABB Group have been entered into on an
arm’s length basis.

 

21.           Joint Ventures

 

21.1         So far as the
Sellers are aware, each Joint Venture is a company or other entity duly
organised or incorporated (as applicable), validly existing and, to the extent
such concept is applicable to such Joint Venture, in good standing under the
laws of the jurisdiction of its organisation. 
The Sellers have made available to the Purchasers true and correct
copies of the by-laws, the memorandum and articles of association or equivalent
constitutional documents of each Joint Venture prior to the date of this
Agreement.

 

21.2         One or more
Acquired Companies are the legal and beneficial owners of fifty per cent.
(50%) of the partnership interests in Catalytic Distillation Technologies and
fifty per cent. (50%) of the shares of or other equity interests in each
of Chevron Lummus Global LLC and Hua Lu Engineering Co., Ltd.

 

76

 

21.3         All partnership
interests in Catalytic Distillation Technologies and all shares of or other
equity interests in each of Chevron Lummus Global LLC and Hua Lu Engineering
Co., Ltd, in each case that are owned by any Acquired Company, are fully paid
up and are free from all Encumbrances, except for any rights of pre-emption or
similar Encumbrances referred to in the constituent documents of the relevant
Joint Venture.

 

21.4         So far as the
Sellers are aware, the Sellers’ Warranties in paragraphs 6.1, 11.1, 11.3, 11.4,
11.5, 12 and 18 of this Schedule, are true and accurate as if: (i) references
to any Acquired Company were references to a Joint Venture; and (ii) references
to the Acquired Group were references to a Joint Venture or each Joint Venture
as the context requires.

 

22.           Brokers and Intermediaries

 

No agent, broker or other Person acting on behalf of
the Sellers or any of their Affiliates (including the Acquired Companies) is,
or shall be, entitled to any broker’s fees, finder’s fees or commissions from
any Acquired Company in connection with this Agreement or the Transactions.

 

77

 

SCHEDULE
6

 

CB&I’S
WARRANTIES

 

1.             Organisation and Authority
of the Purchasers

 

1.1           Each of the
Purchasers and CB&I is a company duly organised or incorporated (as
applicable), validly existing and, to the extent such concept is applicable to
such Purchaser or CB&I, in good standing under the laws of the jurisdiction
of its organisation and has the requisite capacity, power and authority to
execute, deliver and perform this Agreement.

 

1.2           The execution,
delivery and performance of this Agreement by each of the Purchasers and
CB&I has been duly authorised and approved by the board of directors (or
comparable governing body) of such Purchaser or CB&I, and, save for
CB&I shareholder approval as referred to at Clause 4.1.1(b), no other
corporate or similar action on the part of such Purchaser or CB&I is
necessary to authorise the execution, delivery and performance of this
Agreement.

 

1.3           This Agreement
constitutes legal, valid and binding obligations of each of the Purchasers and
CB&I in accordance with its terms.

 

1.4           The execution,
delivery and performance by each of the Purchasers and CB&I of this
Agreement does not conflict with or constitute a breach of (i) any
provision of the by-laws, the memorandum and articles of association or
equivalent constitutional documents of such Purchaser or CB&I; or (ii) any
Order applicable to such Purchaser or CB&I or by which the assets of such
Purchaser or CB&I are bound, in each case which would reasonably be
expected, individually or in the aggregate, to materially and adversely affect
the performance by such Purchaser or CB&I of its obligations under this
Agreement.

 

1.5           Except for the
consents or approvals contemplated to be obtained or filings contemplated to be
made prior to Completion pursuant to Clause 4.2, or as would not
reasonably be expected, individually or in the aggregate, to affect materially
and adversely the performance by any of the Purchasers and CB&I of its
obligations under this Agreement, no consent, approval or authorisation of any
Governmental Entity is required to be obtained by any of the Purchasers and
CB&I in connection with the execution, delivery and performance of this
Agreement.

 

2.             Financing

 

The Purchasers have, and will have on the Completion
Date, unrestricted cash on hand and, if necessary, unrestricted cash available
to them under credit facilities in place on the date hereof, sufficient to pay
the Purchase Price, all other amounts to be paid or repaid by the Purchasers
under this Agreement (whether payable on or after the Completion), and all of
the Purchasers’ and their Affiliates’ fees and expenses associated with the
Transactions.

 

3.             Confidentiality Agreement

 

The Purchasers and their Affiliates that are subject
to the terms of the Confidentiality Agreement and the Bidder Representatives
have complied in all material respects with the terms of the Confidentiality
Agreement, including the restrictions on contacting other potential acquirers
of the Shares and the restriction on limiting the Purchasers’ financing sources
from providing financing to, or arranging financing for, any other potential
acquirer of the Shares.

 

78

 

4.             Investment Intent - Risk

 

4.1           CB&I is
(indirectly) acquiring the Shares for its own account, for investment purposes
only, and not with a view toward, or for sale in connection with, any
distribution thereof, nor with any present intention of distributions or
selling the Shares in violation of Applicable Law, including the Securities
Act.

 

4.2           CB&I
qualifies as an “accredited investor”, as such term is defined in Rule 501(a) promulgated
pursuant to the Securities Act.

 

4.3           CB&I
understands that the Shares have not been registered under the Securities
Act.  CB&I acknowledges that the
Shares may not be transferred, sold, offered for sale, pledged, hypothecated or
otherwise disposed of without registration under the Securities Act and any
other provision of Applicable Law or pursuant to an applicable exemption
therefrom.

 

4.4           CB&I is an
informed and sophisticated participant in the transactions contemplated hereby
and has sufficient knowledge and experience to evaluate the technical,
commercial, financial, legal and other risks associated with acquiring the
Shares on the terms hereunder.  CB&I
understands that the acquisition of the Shares to be acquired by it pursuant to
the terms of this Agreement involves substantial risk.  CB&I can bear the economic risk of its
investment (which may be for an indefinite period).

 

5.             Absence of Arrangements
with Management

 

As of the date hereof, there are no Contracts,
undertakings, commitments, agreements or obligations or understandings between
the Purchasers or any of their Affiliates, on the one hand, and any member of
the management of any Acquired Company, on the other hand, relating to the
Transactions or the operations of any Acquired Company prior to or after
Completion.

 

6.             Brokers and Intermediaries

 

No agent, broker or other Person acting on behalf of
the Purchasers or any of their Affiliates is, or shall be, entitled to any
broker’s fees, finder’s fees or commissions from any Seller or any of its
Affiliates in connection with this Agreement or the Transactions.

 

79

 

SCHEDULE
7

 

THE
SELLERS’ LIMITATIONS OF LIABILITY

 

1.             Time Limits

 

1.1           Neither Seller
shall be liable in respect of any Warranty Claim or claim for breach of
Clause 6.2 (other than a claim for breach of any of the Tax Warranties)
unless written notice containing reasonable details of such Warranty Claim or
claim for breach of Clause 6.2, including the Purchasers’ estimate (on a
without prejudice basis) of the amount of the Warranty Claim or claim for
breach of Clause 6.2, is given by or on behalf of the Purchasers to the
Sellers no later than eighteen (18) months from the Completion Date.

 

1.2           Neither Seller
shall be liable in respect of any claim for breach of any of the Tax Warranties
or pursuant to Schedule 8 (Tax Covenant)
unless written notice containing reasonable details of such claim, including
the Purchasers’ estimate (on a without prejudice basis) of the amount of the
claim, is given by or on behalf of the Purchasers to the Sellers no later than
six (6) years from the Completion Date.

 

1.3           Any claim that
has been properly notified to the Sellers in accordance with paragraph 1.1
or 1.2 above shall, if not previously satisfied, settled or withdrawn, be
deemed to have been withdrawn six (6) months after such written notice
being given to the Sellers or, in the case of a contingent liability or a claim
to which paragraph 6.1 below applies, three (3) months after that
liability becomes an actual liability or, as applicable, after the relevant
insurer has refused to meet the claim made on it, unless legal proceedings in
respect of such claim have been commenced by being both issued and served.

 

2.             Thresholds

 

2.1           Except for Locked
Box Claims and Warranty Claims arising under paragraphs 1 or 2 of Schedule
5 (The Sellers’ Warranties), neither Seller
shall be liable in respect of any Warranty Claim unless and until the amount of
the liability pursuant to such Warranty Claim, when substantiated, exceeds five
hundred thousand dollars ($500,000).

 

2.2           Except for Locked
Box Claims and Warranty Claims arising under paragraphs 1 or 2 of Schedule
5 (The Sellers’ Warranties), neither Seller
shall be liable in respect of any Warranty Claim unless and until the aggregate
amount of the liability of the Sellers for all Warranty Claims not excluded by
paragraph 2.1 above, when substantiated, exceeds ten million dollars
($10,000,000), in which case the Sellers shall be liable for the full amount of
the substantiated Warranty Claims and not merely the excess over ten million
dollars ($10,000,000).

 

3.             Maximum Liability

 

3.1           The maximum
aggregate liability of the Sellers for all claims for breaches of
Clause 6.2 and all Warranty Claims, except for any Locked-Box Claim or
Warranty Claim arising under paragraph 1, 2, 3.3, 3.4 or 18.1 of Schedule
5 (The Sellers’ Warranties), shall not
exceed fifty million dollars ($50,000,000).

 

3.2           Without prejudice
to paragraph 3.1, the maximum aggregate liability of the Sellers for
claims for all breaches of Clause 6.2, all Warranty Claims, all claims
pursuant to paragraphs 2.1(a) to 2.1(e) (inclusive) of Schedule 8 (Tax Covenant) and all claims pursuant to Schedule 9 (Additional Covenant) shall not exceed five hundred and
thirteen million dollars ($513,000,000).

 

80

 

4.             Currency

 

All amounts that may be recoverable by the
Purchasers in connection with any Warranty Claim or claim for breach of
Clause 6.2 that are expressed in a currency other than dollars shall, for
purposes of establishing whether a monetary limit or threshold set out in this
Agreement has been reached or exceeded, be converted into dollars at:

 

(a)           the rate which
appears on the Reuters Screen FXBLFIX01 at 11:00 a.m. (London time) on the
date on which such claim is made in accordance with this Agreement;

 

(b)           if no such rate
is quoted on the Reuters Screen FXBLFIX01 at such time, the rate which appears
on the Reuters Screen FXBLFIX01 at 11:00 a.m. (London time) on the date on
which such claim is made in accordance with this Agreement; or

 

(c)           if no such rate
is quoted on the Reuters Screen FXBLFIX01 at such time, the mid-point closing
rate quoted in the Financial Times for the Business Day immediately preceding
the date on which such claim is made in accordance with this Agreement.

 

5.             Matters Accounted for in
Financial Statements

 

Neither Seller shall be liable in respect of any
Warranty Claim if and to the extent the fact, matter, event or circumstance giving
rise to the Warranty Claim is expressly provided or reserved for in the Balance
Sheet or is otherwise fairly disclosed in the Financial Statements.

 

6.             Insured Claims

 

6.1           If and to the
extent that the amount of any Warranty Claim is covered by a policy of
insurance maintained by the Acquired Group or the Purchasers, the Purchasers
shall use all reasonable endeavours to recover the amount of such Warranty
Claim or such amount that is covered by such policy of insurance prior to
making a Warranty Claim (but the Purchasers shall have the right to give notice
of the relevant Warranty Claim under paragraph 1.1 or 1.2 above (as
applicable) prior to such time).

 

6.2           Neither Seller
shall be liable in respect of any Warranty Claim if and to the extent that the
amount of such Warranty Claim is recovered by the Acquired Group or by either
of the Purchasers or any of their other Affiliates under any policy of
insurance maintained by them.

 

7.             Contingent Liabilities

 

Neither Seller shall be liable for any Warranty Claim
based upon a liability which is contingent, unless and until such contingent
liability becomes an actual liability (but the Purchasers shall have the right
to give notice of such contingent liability under paragraph 1.1 or 1.2
above (as applicable) prior to such time).

 

8.             Consequential Losses

 

The Sellers shall not be liable for any indirect or
consequential loss, loss of profit or loss of reputation suffered by the
Purchasers or any of its Affiliates in connection with a Warranty Claim or
other claim for breach of this Agreement.

 

81

 

9.             Matters Disclosed

 

9.1           Neither Seller
shall be liable in respect of any Warranty Claim if and to the extent that the
fact, matter, event or circumstance giving rise to such Warranty Claim is
fairly disclosed pursuant to:

 

(a)           a provision of
this Agreement or any of the Other Transaction Documents;

 

(b)           the Information
Memorandum headed “ABB Lummus Global” issued by Credit Suisse and dated March 2007;
or

 

(c)           the Sellers’
Disclosure Letter.

 

9.2           Without limiting
the generality of paragraph 9.1 above, the Sellers shall not be liable for
any claim for breach of paragraph 4 or 5 of Schedule 5 (The Sellers’ Warranties)  in respect of
any fact, matter, event or circumstance which is fairly disclosed in the VDD.

 

10.           Tax Savings

 

In calculating the liability of the Sellers for any
claim for breach of this Agreement (other than a claim under Schedule 8 (Tax Covenant)), there shall be taken into account the amount
by which any Tax for which the Purchasers or any of their Affiliates is now or
may in the future be accountable or liable to be assessed is reduced or
extinguished as a result of the matter giving rise to such liability and any
repayment of Tax which would not have arisen but for the matter giving rise to
such liability.

 

11.           Right to Cure

 

11.1         If a breach by
either Seller of this Agreement (including a breach of any Sellers’ Warranty)
is capable of being remedied, the Purchasers shall not be entitled to
compensation for such breach unless they give the Sellers written notice of the
breach and the Sellers:

 

(a)           fail to commence
remedial action within thirty (30) days of such notice;

 

(b)           fail to pursue
such action diligently at all times thereafter until the breach has been remedied;
or

 

(c)           fail to remedy
the breach within ninety (90) days after such notice.

 

11.2         Without prejudice
to their duty under Applicable Law to mitigate any damage suffered by them, the
Purchasers shall, or shall procure that their relevant Affiliates will, at the
Sellers’ cost, provide all reasonable assistance to the Sellers in connection
with any remedial action undertaken by the Sellers in accordance with
paragraph 11.1 above.

 

12.           Recovery from Third
Parties

 

12.1         If either of the
Sellers pays an amount in respect of a Warranty Claim and the Purchasers or any
of the Acquired Companies subsequently recovers from a third party an amount
which, if received by the Purchasers or any of the Acquired Companies prior to
the agreement or determination of the damages payable by the Seller pursuant to
the Warranty Claim would have reduced the amount of such damages, the
Purchasers will repay to such Seller an amount equal to the lesser of the
amount recovered from the third party (less any reasonable costs incurred in
obtaining such recovery and less any Taxation attributable to the recovery
after taking account of any tax relief available in respect of any matter
giving rise to the Warranty Claim) and the amount previously paid by such
Seller to the Purchasers.

 

82

 

12.2         Where the
Purchasers or any of their Affiliates are entitled to recover (whether by
insurance, payment, discount, credit, relief or otherwise) from a third Person
a sum which indemnifies or compensates the Purchasers or such Affiliate (in
whole or part) in respect of the liability or loss which is the subject of a
Warranty Claim, the Purchasers or the relevant Affiliate shall, following the
making of a Warranty Claim, take and continue to take all reasonable steps to
enforce such recovery.

 

13.           Double Recovery

 

The Purchasers shall not be entitled to recover more
than once under this Agreement in respect of the same damage suffered.

 

14.           Miscellaneous Other
Limitations

 

14.1         Neither Seller
shall be liable for any Warranty Claim (other than a claim for breach of any of
the Tax Warranties to which the exclusions at paragraph 3 of Schedule 8 (Tax Covenant) shall apply) if and to the
extent that the liability arises or is increased as a result of:

 

(a)           any legislation
not in force at the date of this Agreement, but which takes effect
retrospectively;

 

(b)           any change in the
accounting policies, practices or procedures adopted by the Purchasers and/or
their Affiliates (other than changes required to ensure compliance with
Applicable Law in effect as of the date of this Agreement); or

 

(c)           any change in the
rates of Taxation, any imposition of Taxation or any change in the practice
(including the withdrawal of any extra-statutory concession) of any relevant Tax
Authority, in each case announced or becoming effective (whether or not
retrospectively) on or after the date of this Agreement.

 

14.2         Neither Seller
shall be liable for any Warranty Claim (other than a claim for breach of any of
the Tax Warranties to which the exclusions at paragraph 3 of Schedule 8 (Tax Covenant) shall apply) if and to the
extent that the liability arises as a result of any voluntary act or omission
of the Purchasers or any of their Affiliates after the date of this Agreement
(including, following Completion, the Acquired Companies).

 

15.           Third-Party Claims

 

If the Purchasers become aware of any claim by any
third party which ought reasonably to be expected to give rise to a claim by
the Purchasers for breach of this Agreement (other than a claim for breach of
any of the Tax Warranties) (a “Third-Party Claim”):

 

(a)           the Purchasers
shall, within thirty (30) days of becoming aware of any Third-Party Claim,
give written notice to and consult with the Sellers in respect of such
Third-Party Claim;

 

(b)           the Purchasers
shall, and shall procure that the Acquired Companies will:

 

(i)            at the written
request and at the cost of the Sellers take such action or (at the Sellers’
option) permit the Sellers to take such action as the Sellers reasonably consider
appropriate to avoid, defend, dispute, mitigate, appeal, settle or compromise
the Third-Party Claim;

 

83

 

(ii)           provide to the
Sellers and their professional advisers reasonable access to the premises and
personnel of the Acquired Group for the purposes of investigating matters
relevant to the Third-Party Claim; and

 

(iii)          take reasonable
steps to preserve all information relevant to the Third-Party Claim; and

 

(c)           the Sellers (at
their cost) may examine and take copies of the documents and records referred
to in paragraph 15(b) above;

 

provided that,
notwithstanding the foregoing, none of the Purchasers and the Acquired
Companies shall be required to provide any information or access that such
Person’s legal advisers have advised would violate Applicable Law, including
Competition Laws, or the terms of any confidentiality agreement or
confidentiality provision in any Contract or adversely impact any privilege,
including legal professional privilege.

 

16.           Exclusions for Fraud

 

Nothing in this Schedule 7 shall apply to a claim
that arises as a result of fraud by the Sellers.

 

84

 

SCHEDULE
8

 

TAX
COVENANT

 

1.             Definitions and
Interpretation

 

1.1           In this Schedule,
words and expressions defined in Schedule 1 (Definitions
and Interpretation) shall have the same meanings when used
herein.  In addition, in this Schedule:

 

“2006 Return Period”
shall have the meaning set out in paragraph 7.1 of this Schedule.

 

“338 Valuations and
Allocations” shall have the meaning set out in
paragraph 11.2 of this Schedule.

 

“Actual Tax Liability”
shall have the meaning set out in the definition of “Tax Liability” in this
paragraph 1.1.

 

“ADSP” shall
have the meaning set out in paragraph 11.2 of this Schedule.

 

“Brazilian Dispute”
shall have the meaning set out in paragraph 2.1(e) of this Schedule.

 

“Claim for Tax”
means, in any jurisdiction, (i) any assessment, audit, notice, letter,
determination, demand, action or other document issued by or on behalf of any
Tax Authority; and (ii) any return, amended return, computation, accounts
or any other documents required for the purposes of Taxation; in each case,
from which it appears that (a) a Tax Liability has been, or may be,
imposed on any Acquired Company; (b) increased or further payment to a Tax
Authority is, or may be, required to be made by or in respect of an Acquired
Company; or (c) an Acquired Company is denied, or is sought to be denied,
a Relief.

 

“Deemed Tax Liability”
includes the utilisation or set-off of a Post-Completion Relief available to
the Company against any Tax Liability or against any income, profits or gains
where, but for such setting-off, the Purchasers would have been entitled to
make a claim under this Schedule (ignoring for these purposes any financial
limitations) in which case the amount of the Deemed Tax Liability shall be
equal to the amount which would have been payable in the absence of the Deemed
Tax Liability or any other Post-Completion Relief and shall also include the
loss, non-availability or reduction of any right to a repayment of tax which is
shown in the Balance Sheet in which case the amount of the Deemed Tax Liability
shall be the amount shown in the Balance Sheet as the value of such repayment.

 

“Disputed Claim”
shall have the meaning set out in paragraph 8.2(a) of this Schedule.

 

“Disputed Tax Payment”
shall have the meaning set out in paragraph 9 of this Schedule.

 

“Event”
means any event, transaction, default occurrence, act arrangement or omission
whatsoever of any kind.

 

“Federal and Consolidated
Returns” shall mean all Returns for income Taxes (other than
income Tax imposed by a taxing jurisdiction outside of the United States) of
the Acquired Companies for which any of the Acquired Companies join with the
US Seller or any Affiliate of the US Seller that is not an Acquired
Company to file Returns on a consolidated, unitary or combined basis.

 

“Intended Communication”
shall have the meaning set out in paragraph 7.4(c) of this Schedule.

 

85

 

“Lummus Group”
means the group of Acquired Companies that is included in any Federal and
Consolidated Return.

 

“Overlap Period”
shall have the meaning set out in paragraph 7.8 of this Schedule.

 

“Payee”
shall have the meaning set out in paragraph 4.3 of this Schedule.

 

“Payer”
shall have the meaning set out in paragraph 4.3 of this Schedule.

 

“Payment Amount”
shall have the meaning set out in paragraph 6.2 of this Schedule.

 

“Post-Completion Period”
means any taxable period ending after the Completion Date or, with respect to
any taxable period beginning before and ending after the Completion Date, the
portion of such taxable period beginning on the day following the Completion
Date.

 

“Post-Completion Relief”
means a Relief: (i) which arises as a consequence of an Event occurring
after Completion or in respect of a period ending after Completion (and where a
Relief arises from the ordinary course of business of an Acquired Company in
respect of the period current at Completion, it shall be apportioned partly
before and partly after Completion on the basis described in paragraph 7.9
of this Schedule); and (ii) arising as a result of an Event occurring or
deemed to occur in the ordinary course of business after the Balance Sheet Date
but on or before Completion or in respect of a period commencing on or after
the Balance Sheet Date and ending on Completion in the ordinary course of business
(and where a Relief arises in the ordinary course of business of an Acquired
Company in respect of the period current at the Balance Sheet Date, it shall be
apportioned partly before and partly after the Balance Sheet Date on an
analogous basis to that described in paragraph 7.9 of this Schedule).

 

“Primary Person”
shall have the meaning set out in paragraph 2.1(b) of this Schedule.

 

“Pro-Forma Return”
shall have the meaning set out in paragraph 7.2(a) of this Schedule.

 

“Purchasers’ Return Period”
shall have the meaning set out in paragraph 7.10 of this Schedule.

 

“Recovered Amount”
shall have the meaning set out in paragraph 6.2 of this Schedule.

 

“Relevant Percentage”
means the percentage of the issued share capital of an Acquired Company owned,
directly or indirectly, by the US Seller or the NL Seller (as
applicable).

 

“Relief”
means any loss, allowance, exemption, credit, deduction or set off for the
purposes of Tax or any right to repayment of Tax.

 

“section 338(h)(10) election”
means an election made pursuant to section 338(h)(10) of the Code.

 

“Sellers’ Return Period”
shall have the meaning set out in paragraph 7.2 of this Schedule.

 

“Tax Documents”
means the Returns, claims, elections, correspondence and other documents which
are required to be prepared on behalf of the Acquired Companies under
paragraph 7 of this Schedule.

 

“Tax Liability”
means not only a liability of an Acquired Company to make payments of, or in
respect of, Tax (whether or not a primary liability of an Acquired Company or any
other Person) (an “Actual Tax Liability”)
but also a Deemed Tax Liability.

 

86

 

“Tax Losses”
means, in the case of the NL Acquired Company, net operating losses available
to that company on Completion, in the case of the German Acquired Company, net
operating losses available to that company on Completion and in the case of the
US Acquired Company, net operating losses available to that company on
Completion (but only where a section 338(h)(10) election has not been made
in respect of the acquisition of the US Acquired Company) excluding, in each
case, any Post-Completion Relief.

 

“Transfer Taxes”
shall have the meaning set out in paragraph 10 of this Schedule.

 

“United States Person”
shall have the meaning set out in paragraph 7.1 of this Schedule.

 

“US Acquired Group”
means all of the US Acquired Companies.

 

“US Group”
means the group of companies which join with the US Seller to file Returns for
income taxes on a consolidated, unitary or combined basis.

 

“US Tax Losses”
means the net operating losses attributable to the Pre-Completion Period that
are available to the US Group (excluding for this purpose the Lummus Group)
under Applicable Law as a consequence of the making of the section 338(h)(10) election
and which would not have been so available if a section 338(h)(10) election
had not been made in respect of the acquisition of the US Acquired Company.

 

1.2           In this Schedule,
references to income, profits or gains earned, accrued or received on or before
a particular date, or in respect of a particular period, include income,
profits or gains which are deemed for the purposes of any Tax to have been
earned, accrued or received at or before that date or in respect of that
period.

 

2.             Covenant

 

2.1           Subject to
paragraph 3 of this Schedule, the US Seller in respect of each
US Acquired Company covenants to pay to the US Purchaser, and the
NL Seller in respect of each NL Acquired Company covenants to pay to
the NL Purchaser an amount equal to:

 

(a)           the Relevant Percentage
of any Tax Liability of any US Acquired Company or any NL Acquired
Company which arises:

 

(i)            in consequence of
an Event which occurred, or was deemed to occur, on or before Completion; or

 

(ii)           in respect of, or
with reference to, any income, profits or gains which were earned, accrued or
received on or before Completion;

 

(b)           the Relevant
Percentage of any Tax Liability which is primarily the liability of a member of
the ABB Group (the “Primary Person”)
for which a US Acquired Company or an NL Acquired Company is liable
in consequence of such Acquired Company at any time before Completion (i) being
a member of the same group of companies including any affiliated, unitary or
combined group of companies as the Primary Person; or (ii) having control of,
being controlled by, or otherwise being connected with the Primary Person, for
any Tax purpose;

 

(c)           the Relevant
Percentage of any Tax Liability of any US Acquired Company or any
NL Acquired Company which arises:

 

(i)            in consequence of
an Event which occurred or was deemed to occur on or before the Balance Sheet
Date; or

 

87

 

(ii)           in respect of or
by reference to any income, profits or gains which were earned, accrued or
received on or before the Balance Sheet Date

 

which, in either case, has been discharged by the
relevant Acquired Company on or before Completion to the extent that the amount
of such Tax Liability exceeds the amount provided for in the Balance Sheet;

 

(d)           the Relevant
Percentage of any fines, penalties or charges for which an Acquired Company is
liable as a result of non-compliance with any Tax disclosure requirements in
any jurisdiction of residence of an Acquired Company; and

 

(e)           the Relevant
Percentage of any Tax Liability which relates to the dispute involving
Consortium Lummus-Andromedan regarding the Rio Polimeros SA litigation in
Brazil (the “Brazilian Dispute”).

 

2.2           The Sellers
covenant to pay to the Purchasers all reasonable costs and expenses suffered or
reasonably incurred by the Purchasers and/or the relevant Acquired Company in
connection with any successful claim made pursuant to paragraph 2.1 of
this Schedule.

 

2.3           The Purchasers
covenant to pay to the Sellers an amount equal to any liability to Tax of
either Seller or any other member of the ABB Group or an amount equal to any
Tax assessed on either Seller or any member of the ABB Group which is a Tax
Liability relating to an Acquired Company to the extent it:

 

(a)           arises (i) in
consequence of an Event which occurred, or was deemed to occur, after
Completion or (ii) in respect of, or with reference to, any income,
profits or gains which were earned, accrued or received after Completion;

 

(b)           is a Tax
Liability referred to in paragraph 3(b) of this Schedule (including,
without limitation, any Tax Liability arising solely as a result of
transactions in the ordinary course of business of the Acquired Company after
the Balance Sheet Date but on or before Completion.  For the purposes of this paragraph 2.3(b),
references to a Tax Liability of an Acquired Company shall include a liability
for Tax of the Lummus Group in respect of the Sellers’ Return Period arising
from transactions in the ordinary course of business calculated on the basis of
the Pro-Forma Returns and on the hypothesis that the members of the Lummus
Group are not members of the US Group; or

 

(c)           is a Tax
Liability which arises during the portion of the Overlap Period that begins on
the day following the Completion Date.

 

The covenants in this paragraph 2.3 shall not apply
to a Tax Liability to the extent that: (i) if the Tax Liability were to be
discharged by an Acquired Company then a liability would arise for the
US Seller or NL Seller under this Schedule; and (ii) any US Tax
Losses are available, or on completion of procedural formalities would be so
available, to the US Seller or any other member of the US Group other than the
Lummus Group to set against or otherwise mitigate the Tax Liability.

 

2.4           The Purchasers
covenant to pay the Sellers all reasonable costs and expenses suffered or
reasonably incurred by the Sellers in connection with any successful claim made
pursuant to paragraph 2.3 of this Schedule.

 

2.5           All amounts paid
by the Sellers or the Purchasers pursuant to paragraphs 2.1 and 2.3 of
this Schedule shall, to the extent permitted by Applicable Law, be treated as
adjustments to the Purchase Price for all Tax purposes.

 

88

 

3.             Exclusions

 

The covenants in paragraphs 2.1(a) to 2.1(d) (inclusive)
of this Schedule do not apply in respect of a Tax Liability of an Acquired
Company and the Sellers shall not be liable for a breach of paragraph 20
of Schedule 5 (The Sellers’ Warranties) to the
extent that:

 

(a)           provision or
reserve in respect of that Tax Liability was made or reflected in the Financial
Statements or payment or discharge of such Tax Liability was reflected in the
Financial Statements;

 

(b)           the Tax Liability
arises solely as a result of transactions in the ordinary course of business of
the Acquired Company after the Balance Sheet Date but on or before Completion
(for this purpose, any inclusion under Sub-part F of the Code by the
US Seller or any Acquired Company shall be treated as a Tax Liability
arising solely as a result of transactions in the ordinary course of business
of the Acquired Companies);

 

(c)           payment or
discharge of the Tax Liability has been made prior to Completion, provided
that this exclusion shall not apply to the covenant in paragraph 2.1(c) of
this Schedule;

 

(d)           the Tax Liability
arises or is increased as a result of: (i) a change in Tax rates or in
legislation made after the Balance Sheet Date; or (ii) a change or
withdrawal after the Balance Sheet Date of any previously published practice,
or published concession or official published interpretation of any Tax
Authority; in each case with retrospective effect;

 

(e)           the Tax Liability
would not have arisen but for an omission or a voluntary act or transaction
carried out (other than in fulfilment of a legally binding commitment entered
into by any Acquired Company on or before Completion) by the Purchasers or any
Acquired Company (including any act or omission by any Representative of the
Purchasers or an Acquired Company) after Completion and otherwise than in the
ordinary course of business of the relevant Acquired Company as such business
was conducted at Completion provided that this exclusion shall not apply
to any action required to be taken by the Purchasers or the Acquired Companies
pursuant to paragraphs 7.3 to 7.5 of this Schedule;

 

(f)            the Tax Liability
would not have arisen but for a cessation of trade by, or a change in the
nature or conduct of the trade of, an Acquired Company on or after Completion;

 

(g)           the Tax Liability
arises or is increased solely in consequence of any failure by the Purchasers
to comply with, or a failure to procure the compliance of an Acquired Company
with, any of their respective obligations under this Schedule;

 

(h)           the Tax Liability
results from or is increased by any change on or after Completion in:

 

(i)            the accounting
reference date of any Acquired Company; or

 

(ii)           any change in the
accounting policies or Tax reporting practices of any Acquired Company other
than to the extent that the relevant Acquired Company has not complied with
generally accepted accounting principles and such change is required to comply
with generally accepted accounting principles;

 

89

 

(i)            such Tax
Liability has been discharged without cost to the Purchasers or the relevant
Acquired Company;

 

(j)            any Tax Losses
are available to the relevant Acquired Company to set against or otherwise
mitigate the Tax Liability; or

 

(k)           the Tax Liability
would not have arisen but for:

 

(i)            the making of a
claim, election, surrender or disclaimer, the giving of a notice or consent, or
the doing of any other thing under the provisions of any enactment or
regulation relating to Tax, in each case after Completion by the Purchasers; or

 

(ii)           the failure or
omission on the part of any Acquired Company (other than at the Sellers’
direction) to make any such valid claim, election, surrender or disclaimer, or
to give any such notice or consent or to do any other such thing, as the
Sellers may reasonably request pursuant to paragraphs 7.3 and 7.6 of this
Schedule in respect of periods or matters ending or occurring on or before
Completion.

 

3.2           The provisions of
paragraphs 1, 2, 3.2 and 14 of Schedule 7 (Sellers’
Limitations of Liability) shall apply mutatis
mutandis to claims made under paragraphs 2.1(a) to 2.1(e) (inclusive)
of this Schedule.

 

4.             Payment of Claims

 

4.1           Other than in
respect of Disputed Claims (to which paragraph 9 of this Schedule
applies), the Sellers shall pay (in cleared funds) to the Purchasers any
required sum under paragraph 2 of this Schedule:

 

(a)           in the case of an
Actual Tax Liability other than a claim under paragraph 2.1(e) of
this Schedule, on the later of (i) the date ten (10) Business Days
after the date of which the Sellers receive written details of the amount of
the liability from the Purchasers or (ii) the date five (5) Business
Days before the last date on which the payment of Tax may be made (ignoring for
these purposes the availability of any other Relief), in order to avoid
incurring a liability to interest and/or penalties;

 

(b)           in the case of an
Actual Tax Liability the subject of a claim under paragraph 2.1(e) of
this Schedule, on the date when it is finally determined that a Tax Liability
will become payable in relation to the Brazilian Dispute;

 

(c)           in respect of any
Tax Liability which is a Deemed Tax Liability, on the later of (i) the
date ten (10) Business Days after the date on which the Sellers receive
written details of the amount of the liability from the Purchasers; or (ii) in
the case of utilisation or set-off of a Post-Completion Relief, the date on
which the relevant Acquired Company would have had to pay the Tax but for the
utilisation or set-off of a Post-Completion Relief; or

 

(d)           on the date ten (10) Business
Days following the date on which notice giving written details of the amount
due is received by the Sellers from the Purchasers for any payment under
paragraphs 2.1(d) and 2.2 of this Schedule.

 

4.2           The Purchasers
shall or shall procure that the Acquired Companies pay (in cleared funds) any
required sum under paragraph 2.3 of this Schedule on the date ten (10) Business
Days 

 

90

 

following the date on which notice giving written
details of the amount due is received by the Purchasers from the Sellers for
any payment under paragraphs 2.3 or 2.4 of this Schedule.

 

4.3           All sums payable
by either the Sellers or the Purchasers (the “Payer”)
to the Purchasers or Sellers as appropriate (the “Payee”)
pursuant to this paragraph 4 shall be paid free and clear of all
deductions and withholdings whatsoever (including Tax), save only as may be
required by law.

 

4.4           If any deductions
or withholdings are required by Applicable Law to be made from any of the sums
payable as mentioned in paragraph 4.3 of this Schedule, the Payer shall be
obliged to pay to the Payee such additional amounts as will ensure that the net
amount received by the Payee will equal the full amount it would have received
in the absence of any such requirement to make a deduction or withholding (provided,
however, that this paragraph shall only apply to the extent that payments
are made as between: (i) the NL Seller and the NL Purchaser; (ii) the
US Seller and the US Purchaser; or (iii) the NL Seller and/or
the US Seller and any other Purchaser that is a party to this Agreement provided
that neither the NL Seller nor the US Seller shall be under any greater
obligation to such other Purchaser than they would have been to the NL
Purchaser or the US Purchaser, as the case may be).

 

4.5           If any sum payable
by the Payer to the Payee under this paragraph 4 shall be subject to
Taxation in the hands of the Payee (disregarding for this purpose any Reliefs
other than any Tax Losses available to the Payee), the Payer shall be under the
same obligation to make an increased payment in relation to that Taxation as if
the liability were a deduction or withholding required by Applicable Law (provided,
however, that this paragraph shall only apply to the extent that payments
are made as between: (i) the NL Seller and the NL Purchaser; (ii) the
US Seller and the US Purchaser; or (iii) the NL Seller and/or
the US Seller and any other Purchaser that is a party to this Agreement provided
that neither the NL Seller nor the US Seller shall be under any greater
obligation to such other Purchaser than they would have been to the NL
Purchaser or the US Purchaser, as the case may be).

 

5.             Corresponding Savings and
Over-Provisions

 

5.1           If the Purchasers
or an Acquired Company becomes aware that:

 

(a)           any Tax Liability
which has resulted in a payment being made by (or becoming due from) the
Sellers under this Schedule, where such Tax Liability has given rise to a
corresponding saving for an Acquired Company, the Purchasers or any Affiliate
thereof; or

 

(b)           any provision for
Tax (other than deferred Tax) contained in the Balance Sheet or the Financial
Statements proves to be an over-provision (other than to the extent the
over-provision would arise or be increased as a result of any retrospective
change in the law after Completion or by any Post-Completion Relief),

 

the Purchasers shall promptly give details of such
corresponding saving or over-provision by written notice to the Sellers.

 

5.2           The Sellers may
at their own cost and expense at any time instruct the relevant Acquired Company’s
auditors to determine in writing the extent of any corresponding saving or
over-provision (whether or not details have been notified to the Sellers in
accordance with paragraph 5.1 of this Schedule).  If such auditors determine that a
corresponding saving or over-provision has arisen, an amount equal to the value
(as so determined in writing) of the Relevant Percentage of such corresponding
saving or over-provision:

 

91

 

(a)           shall be set off
against any payment then due from the Sellers to the Purchasers under this
Schedule or for breach of paragraph 20 of Schedule 5 (The Sellers’
Warranties); and

 

(b)           to the extent
there is any excess, such excess shall be set against any payment(s) already
made or subsequently due under this Schedule or for breach of paragraph 20
of Schedule 5 (The Sellers’ Warranties) in
chronological order until exhausted, provided that to the extent that
such corresponding saving or over-provision is set-off against any payment
already made by the Sellers, it shall promptly be repaid by the Purchasers to
the Sellers.

 

5.3           If a written
determination has been issued as referred to in paragraph 5.2 of this
Schedule or this paragraph 5.3, the Sellers or the Purchasers may, on or
before the sixth anniversary of Completion, request the relevant Acquired
Company’s auditors:

 

(a)           to review (at the
expense of the Party requesting the review, or where a payment becomes due
under paragraph 5.4 of this Schedule, at the expense of the Party which is
required to make such payment under such paragraph 5.4) such written
determination in the light of all relevant circumstances at the time of the
review; and

 

(b)           to determine in
writing whether in the light of such circumstances the original written determination
should be amended.

 

5.4           If the new
written determination referred to at paragraph 5.3 of this Schedule states
that the original written determination should be amended, an adjusting payment
equal to the difference between the sum in the original written determination
and the sum in the amended written determination shall be made by the Sellers
or the Purchasers (as appropriate) as soon as reasonably practicable.

 

6.             Recovery from Third
Parties

 

6.1           If an Acquired
Company is entitled to recover from any Person (other than the Purchasers or
another Acquired Company or any employee of an Acquired Company, but including
any Tax Authority) any sum in respect of any Tax Liability to which
paragraph 2.1 of this Schedule applies (or which relates to a breach of
paragraph 20 of Schedule 5 (The Sellers’ Warranties)),
the Purchasers shall procure that the Acquired Company shall:

 

(a)           promptly notify
the Sellers of all relevant details concerning such entitlement after such
Acquired Company becomes aware thereof;

 

(b)           take all
appropriate steps to enforce recovery under such entitlement (if so required by
the Sellers and at the Sellers’ expense);

 

(c)           keep the Sellers
fully informed of the progress of any such action for the purpose of making
recovery in accordance with this paragraph 6.1; and

 

(d)           promptly pay to
the Sellers the sum equal to the lesser of (after taking into account all costs
and expenses incurred in making any recovery to the extent that such costs and
expenses have not already been recovered from the Sellers):

 

(i)            any amount so
recovered (together with an amount equal to any interest payment or repayment
supplement received by the Acquired Company in connection with the recovery);
and

 

92

 

(ii)           the amount
already paid by the Sellers in respect of such Tax Liability under
paragraph 2.1 of this Schedule or for breach of paragraph 20 of
Schedule 5 (The Sellers’ Warranties).

 

6.2           If any amount
recovered (the “Recovered Amount”)
by any Acquired Company in accordance with paragraph 6.1 of this Schedule
exceeds any payment made to the Sellers under paragraph 6.1(d) (the “Payment Amount”) then an amount
equal to the difference between the Payment Amount and the Recovered Amount
shall be set off against the liability of the Sellers in respect of any future
claims under this Schedule or for breaches of paragraph 20 of Schedule 5 (The Sellers’ Warranties).

 

7.             Conduct of Pre-Completion
Tax Affairs

 

7.1           In respect of the
Acquired Companies which are United States persons within the meaning of Section 7701(a)(30)
of the Code (“United States Persons”),
subject to the following provisions of this paragraph 7, the Sellers or
their duly authorised agent shall, in respect of all accounting, or taxable
periods, ending on or before the Balance Sheet Date (the “2006
Return Period”):

 

(a)           have the
exclusive obligation and authority to prepare and file or cause to be filed the
Returns of the Acquired Companies which are United States Persons for the 2006
Return Period;

 

(b)           prepare on behalf
of the Acquired Companies which are United States Persons all claims,
elections, surrenders, disclaimers, notices and consents relating to Tax for
the 2006 Return Period; and

 

(c)           deal with all
matters relating to Tax which concern or affect the Acquired Companies which
are United States Persons, including all negotiations and correspondence with
any Tax Authority and the making of any agreements relating to Tax.

 

7.2           In respect of the
Acquired Companies which are United States Persons, subject to the following
provisions of this paragraph 7, the Sellers or their duly authorised agent
shall, in respect of all accounting, or taxable periods, beginning after the
Balance Sheet Date and ending on or before Completion (including where required
by law or where the Seller or the Acquired Company has the ability to so elect,
any short accounting period ending on Completion) (the “Sellers’
Return Period”):

 

(a)           prepare on a
timely basis and file within applicable time limits (taking into account any
extensions permitted by law) the Returns of the Acquired Companies which are
United States Persons for the Sellers’ Return Period which, with respect to any
Acquired Company that is included in any Federal and Consolidated Return for a
Pre-Completion Period, shall be a pro-forma Return (each such Return, a “Pro-Forma Return”);

 

(b)           prepare on a
timely basis and file within applicable time limits (taking into account any
extensions permitted by law) on behalf of the Acquired Companies which are
United States Persons all claims, elections, surrenders, disclaimers, notices
and consents relating to Tax for the Sellers’ Return Period; and

 

(c)           deal with all
matters relating to Tax which concern or affect the Acquired Companies which
are United States Persons, including all negotiations and correspondence with
any Tax Authority and the making of any agreements relating to Tax provided the
making of such agreement does not materially increase the Liability to Tax of
the Acquired Companies in subsequent periods.

 

93

 

7.3           The Purchasers
shall and shall procure that each Acquired Company which is a United States
Person shall provide the Sellers with such assistance, information and access
to documents and records of or relating to an Acquired Company which is a
United States Person that is reasonable and necessary to enable the Sellers to
prepare the Returns for the 2006 Return Period and/or the Sellers’ Return
Period.

 

7.4           The Sellers or
their duly authorised agent shall in respect of the Sellers’ Return Period:

 

(a)           deliver all Tax
Documents which have been prepared in accordance with paragraph 7.2 of
this Schedule to the Purchasers in draft form at least twenty-five
(25) Business Days prior to their intended submission to a Tax Authority
in order to allow the Purchasers to comment on the Tax Documents in accordance
with paragraph 7.5 of this Schedule;

 

(b)           deliver a copy of
all correspondence, or a note of any other communication, which it receives
from or has with a Tax Authority to the Purchasers within ten (10) Business
Days of receipt of that correspondence or communication from the Tax Authority
insofar as it is relevant to the Tax Documents; and

 

(c)           inform the
Purchasers in writing of the content of all material discussions,
correspondence or other communication which it is intending to have with or
submit to any Tax Authority insofar as it is relevant to the Tax Documents at
least fifteen (15) Business Days prior to the intended discussion or
submission of the correspondence or other communication (in each case, an “Intended Communication”) in order
to allow the Purchasers to comment on the content of the Intended Communication
in accordance with paragraph 7.5 of this Schedule.

 

7.5           The Purchasers
shall be entitled to comment on all Tax Documents and Intended Communications
delivered to them under paragraph 7.4 of this Schedule which such comments
shall be made within ten (10) Business Days of the date of receipt of the
Tax Documents or Intended Communications. 
The Sellers shall take into account any reasonable comments made by the
Purchasers in such Tax Documents or Intended Communications.  To the extent that there is a disagreement
between the parties as to the reasonableness of any comments made by the
Purchasers, the Purchasers and Sellers agree to consult in good faith, it being
understood that any such disagreement shall be resolved in a manner consistent
with past practices with respect to such matters unless otherwise required by
Applicable Law and provided that such practices are lawful and in
accordance with generally accepted accounting principles or generally accepted
Tax practice and provided further that the Tax Documents or Intended
Communications shall be required to be true and accurate in all material respects.

 

7.6           The Sellers or
their duly authorised agent shall deliver all Tax Documents which have been
prepared pursuant to paragraph 7.4 of this Schedule and which are required
to be signed by or on behalf of an Acquired Company which is a United States Person
to such Acquired Company for authorisation and signing no later than ten (10) Business
Days before the expiry of any time limit in relation to any Tax Document
(subject to the Purchasers having provided any comments under
paragraph 7.5 of this Schedule within the time period specified
therein).  Notwithstanding the foregoing,
and in the absence of any disagreement, where the Sellers are in breach of
their obligations under paragraph 7.4 the Purchasers shall, where permitted by
law, be entitled to: (i) submit a Tax Document at any time after
twenty-five (25) Business Days from the date on which comments on such Tax
Document were due to be delivered to the Sellers in accordance with paragraph
7.5 of this Schedule; and (ii) submit any Intended Communication at any
time after fifteen (15) Business Days from the date on which comments on the
Intended Communication were due to be delivered to the Sellers in accordance
with paragraph 7.5 of this Schedule.

 

94

 

7.7           Any costs
incurred by the Purchasers or an Acquired Company (as the case may be) in
respect of the reviewing of or commenting on the Tax Documents and Intended
Communications shall be for the Purchasers’ or the relevant Acquired Company’s
account (as the case may be).  Where the
Sellers are in breach of their obligations under paragraph 7.4 of this
Schedule, any costs incurred by the Purchasers or an Acquired Company (as the
case may be) in respect of the preparation and submission of the Tax Documents
and Intended Communications shall be for the Sellers’ account.  Any costs incurred by the Sellers in
preparing and submitting the Tax Documents or Intended Communications shall be
for the Sellers’ account.

 

7.8           In respect of all
accounting or taxable periods other than the 2006 Return Period, the Sellers’
Return Period or the Purchasers’ Return Period, the Purchasers shall have the
sole conduct of the preparation and submission to the relevant Tax Authority of
the Returns, all correspondence relating to and agreement of the Tax
liabilities of the Acquired Companies and all negotiations relating to such
matters.  Notwithstanding the foregoing,
prior to the filing of any Return with respect to any taxable period beginning before
Completion and ending after Completion (the “Overlap
Period”) and no later than twenty-five (25) Business Days
prior to the due date for filing of such Return, the Purchasers shall provide
the Sellers with notice, which notice shall include a draft of such
Return.  No later than ten (10) Business
Days prior to the due date for filing of such Return, the Sellers shall notify
the Purchasers of any comments and amendments which it wishes to make to such
Return and the Purchasers shall take into account such reasonable comments and
amendments.  Any disagreement between the
parties shall be dealt with in accordance with the principles of paragraph 7.5
of this Schedule.

 

7.9           For purposes of
this Agreement, Taxes related to an Overlap Period shall be apportioned between
the Pre-Completion Period and the Post-Completion Period as follows: (i) in
the case of Taxes other than income, sale and use and withholding Taxes, on a
per-diem basis and (ii) in the case of income, sales and use and
withholding Taxes, as determined from the books and records of the Sellers
and/or the Acquired Companies as though the taxable year of the Sellers and/or
the Acquired Companies terminated at the close of business on the Completion
Date.

 

7.10         In respect of the
Acquired Companies which are not United States Persons, subject to the
following provisions of this paragraph 7, the Purchasers or their duly
authorised agent shall, in respect of all accounting, or taxable periods,
ending on or before Completion (including where required by law or where the
Seller or Acquired Company has the ability to so elect, any short accounting
period ending on Completion) (the “Purchasers’ Return Period”):

 

(a)           prepare on a
timely basis and submit the Returns of the Acquired Companies, which are not
United States Persons, for the Purchasers Return Period to the extent that the
same shall not have been prepared and filed before Completion;

 

(b)           prepare and
submit on behalf of the Acquired Companies, which are not United States
Persons, all claims, elections, surrenders, disclaimers, notices and consents
relating to Tax consistent with past practices for the Purchasers’ Return
Period to the extent that the same shall not have been prepared and submitted
before Completion; and

 

(c)           deal with all
matters relating to Tax which concern or affect the Acquired Companies, which
are not United States Persons, including all negotiations and correspondence
with any Tax Authority and the making of any agreements relating to Tax.

 

7.11         The Sellers shall
provide the Purchasers with such assistance, information and access to
documents and records relating to any Acquired Company which are within the
possession or 

 

95

 

control of the Sellers, that is reasonable and
necessary to enable the Purchasers to prepare the Tax returns for the
Purchasers’ Return Period.

 

7.12         The Purchasers or
their duly authorised agent shall in respect of the Purchasers’ Return Period:

 

(a)           deliver all Tax
Documents which have been prepared in accordance with paragraph 7.10 of
this Schedule to the Sellers in draft form at least twenty-five
(25) Business Days prior to their intended submission to a Tax Authority
in order to allow the Sellers to comment on the Tax Documents in accordance
with paragraph 7.13 of this Schedule;

 

(b)           deliver a copy of
all correspondence, or a note of any other communication, which the Purchasers
receive from or have with a Tax Authority to the Sellers within ten (10) Business
Days of receipt of that correspondence or communication from the Tax Authority
insofar as it is relevant to the Tax Documents; and

 

(c)           inform the
Sellers in writing of the content of all material discussions, correspondence
or other communication which it is intending to have with or submit to any Tax
Authority insofar as it is relevant to the Tax Documents at least fifteen
(15) Business Days prior to the intended discussion or submission of the
correspondence or other communication (in each case, an “Intended Communication”)
in order to allow the Sellers to comment on the content of the Intended
Communication in accordance with paragraph 7.13 of this Schedule.

 

7.13         The Sellers shall
be entitled to comment on all Tax Documents and Intended Communications
delivered to them under paragraph 7.12 of this Schedule and such comments
shall be made within ten (10) Business Days of the date of receipt of the
Tax Documents or Intended Communications. 
The Purchasers shall take into account any reasonable comments made by
the Sellers in such Tax Documents or Intended Communications.  To the extent that there is disagreement
between the parties as to the reasonableness of any comments made by the
Sellers, the Purchasers and the Sellers agree to consult in good faith, it
being understood that any such disagreement shall be resolved in a manner
consistent with past practices with respect to such matters unless otherwise
required by Applicable Law and provided that such practices are lawful
and in accordance with generally accepted accountancy principles or generally
accepted Tax practice and provided further that the Tax Documents or
Intended Communications shall be required to be true and accurate in all
material respects.  Notwithstanding the
foregoing, and in the absence of any disagreement, the Purchaser shall be entitled
to: (i) submit a Tax Document at any time after
twenty-five (25) Business Days from the date on which such Tax
Document was delivered to the Sellers in accordance with paragraph 7.12(a) of
this Schedule; and (ii) submit any Intended Communication at any time
after fifteen (15) Business Days from the date on which the Intended
Communication was delivered to the Sellers in accordance with
paragraph 7.12(c) of this Schedule.

 

8.             Conduct of Claims for Tax

 

8.1           If the Purchasers
or any Acquired Company becomes aware of a Claim for Tax which may give rise to
a Tax Liability for which the Sellers might be liable under paragraph 2 of
this Schedule or for breach of paragraph 20 of Schedule 5 (The Sellers’ Warranties), the Purchasers shall give written
details of the relevant matters to the Sellers as soon as reasonably
practicable and in any case involving an assessment with a time limit for
appeal and where such appeal has not already been lodged by the Purchasers or
an Acquired Company at least fifteen (15) Business Days before the expiry
of that time limit and the Sellers shall be entitled, at the Sellers’ expense,
to resist such Claims for Tax for and on 

 

96

 

behalf and in the name of the relevant Acquired
Company, in each case, subject to the remaining provisions of this
paragraph 8.

 

8.2           The Purchasers
shall (and, where relevant, shall procure that each relevant Acquired Company
will):

 

(a)           take such action
as the Sellers may reasonably request in writing to avoid, dispute, defend,
resist, appeal or compromise any Claim for Tax (a “Disputed
Claim”), subject to the Sellers agreeing (to the Purchasers’
reasonable satisfaction) to indemnify the Purchasers or the relevant Acquired
Company (as applicable) against any reasonable out-of-pocket costs which it may
suffer or incur as a result of taking such action;

 

(b)           make available to
the Sellers such employees of the relevant Acquired Company or the Purchasers
as the Sellers may reasonably require and all such information as may be
available and as may reasonably be requested by the Sellers for avoiding,
disputing, resisting, appealing, compromising or contesting any such Claim for
Tax; and

 

(c)           not accept or pay
or compromise any such Claim for Tax without the Sellers’ prior written
consent, such consent not to be unreasonably withheld or delayed; and

 

(d)           not be required
to take any action which it can reasonably demonstrate would materially
increase the Liability to Tax of any Acquired Company in subsequent periods.

 

8.3           The Sellers
shall:

 

(a)           keep the Purchasers
fully informed of all relevant matters known to them or the Sellers’ relevant
advisers concerning any Disputed Claim;

 

(b)           provide the
Purchasers with copies of all relevant documents in the Sellers’ possession or
control in relation to any Disputed Claim;

 

(c)           not transmit to a
Tax Authority any material communication pertaining to the dispute and in
particular no proposal for a consent to any settlement or compromise without
the same having been submitted to and approved by the Purchasers, such approval
not to be unreasonably withheld or delayed;

 

(d)           save where such
Claim for Tax relates to the Brazilian Dispute, not be entitled to resist any
such Claim for Tax to the extent that it would involve the Purchasers or any
relevant Acquired Company contesting a Disputed Claim beyond the first
appellate body (excluding the Tax Authority which has made the Disputed Claim)
in the jurisdiction concerned unless Tax counsel of appropriate seniority and
experience appointed by the Sellers, confirms that (taking into account, among
other things, the quantum of the relevant liability, the technical issues
relevant to the Disputed Claim and the likelihood of the Sellers successfully
challenging such Claim for Tax) it would be reasonable for the Sellers to
pursue that course of action.

 

8.4           If the Sellers do
not request the relevant Acquired Company to take any action within thirty
(30) Business Days following the Sellers’ receipt of written details
relating to the Claim for Tax from the Purchasers in accordance with
paragraph 8.2 of this Schedule, the Purchasers or any relevant Acquired
Company shall be free to pay or settle the Claim for Tax on such terms as it
may in its absolute discretion consider appropriate.

 

97

 

9.             Payment of Disputed Claims

 

In respect of a Disputed Claim, the Sellers shall
pay any required sum under paragraph 2 of this Schedule within thirty
(30) days following settlement, compromise or abandonment of the Disputed
Claim unless the action requested by the Sellers pursuant to paragraph 7.3
of this Schedule cannot be taken prior to the Tax the subject matter of the
Disputed Claim being paid (in which case, an amount equal to that amount of Tax
(a “Disputed Tax Payment”) shall be
paid by the Sellers promptly upon receipt by the Sellers of a written notice
from the Purchasers for that amount). For the avoidance of doubt, if the
Sellers are required to make a Disputed Tax Payment and the Disputed Claim is
settled or compromised for a lesser sum than the amount of the Disputed Tax
Payment, the difference between the Disputed Tax Payment and the amount at
which the Disputed Claim is settled or compromised shall be treated as an
amount to which paragraph 6 of this Schedule applies.

 

10.           Transfer Taxes

 

The Purchasers shall be responsible for, and shall
pay or cause to be paid all stamp, transfer documentary, sales and use, VAT,
registration and other similar taxes and fees (including any penalties and
interest) incurred as a consequence of the transfer of any shares in the
Acquired Companies pursuant to this Agreement (collectively, the “Transfer Taxes”), other than any
Transfer Taxes which arise as a consequence of the making of a section 338(h)(10) election.

 

11.           Section 338(h)(10)

 

11.1         Notwithstanding
anything herein to the contrary, the US Seller and the Purchasers (or the
appropriate subsidiary thereof) shall jointly complete and make a timely
section 338(h)(10) election with respect to the US Company and each
of the eligible members of the US Acquired Group on Form 8023 or in
such other manner as may be required by rule or regulation of the
U.S. Internal Revenue Service and shall jointly make an election in the
manner required under any analogous provisions of state or local law with
respect to the US Company and each of the eligible members of the
US Acquired Group.  The
US Seller and the Purchasers shall prepare Form 8023 and all such
forms as are required as attachments to Form 8023 (and all forms under
analogous provisions of state or local law) in accordance with applicable Tax
laws.  Such duly executed and completed
forms as are required to be filed under Section 338(h)(10) of the
Code (and analogous provisions of state or local law) shall be delivered by the
US Seller and Purchasers to each other.

 

11.2         The
US Seller and the Purchasers agree to use commercially reasonable efforts
to perform or cause to be performed on or prior to the Completion Date:  (i) an initial valuation of assets of
the US Company and the eligible members of the US Acquired Group for
purposes of Section 338 of the Code; (ii) a computation of the
aggregate deemed sale price (“ADSP”) (as
defined under U.S. Treasury Regulations Section 1.338-4) with respect
to the US Company and each of the eligible members of the US Acquired
Group; and (iii) an allocation of ADSP of the US Company and the
eligible members of the US Acquired Group for purposes of Section 338
of the Code (collectively, the “338 Valuations and
Allocations”).

 

11.3         If the
US Seller and the Purchasers agree upon the 338 Valuations and
Allocations on or prior to the Completion Date, then such 338 Valuations
and Allocations shall be used for purposes of all relevant Returns, reports and
filings, and neither the Seller nor the Purchasers shall take any position that
is inconsistent therewith.

 

11.4         If the
US Seller and the Purchasers cannot agree upon the 338 Valuations and
Allocations on or prior to the Completion Date, then the first public
accounting firm of any of Deloitte, Ernst & Young, KPMG or
PriceWaterhouseCoopers in alphabetical order that is not currently serving as
the auditor of any of the US Seller, any US Company or the Purchasers
(or as

 

98

 

otherwise agreed between the US Seller and the
Purchasers) shall be selected to determine the 338 Valuations and
Allocations.  The 338 Valuations and
Allocations determined by such independent public accounting firm shall be
final and binding.  The fees and expenses
incurred with respect to the independent public accounting firm performing the
338 Valuations and Allocations shall be allocated fifty per cent.
(50%) to the US Seller and fifty per cent. (50%) to the
Purchasers.  The 338 Valuations and
Allocations determined pursuant to this paragraph 10.4 shall be used for
purposes of all relevant Returns, reports and filings, and neither the
US Seller nor the Purchasers shall take any position that is inconsistent
therewith.

 

11.5         This Agreement
shall constitute the US Company’s plan of complete liquidation for
purposes of Section 332 of the Code.

 

11.6         Except as
provided in paragraph 11.1 of this Schedule, the Purchasers shall not make
any election under Section 338 of the Code.

 

12.           Retention of Records

 

12.1         The Purchasers
shall and shall cause the Acquired Companies to, until the seventh
(7th) anniversary of the Completion Date or such later date as provided in
paragraph 12.2 of this Schedule, retain all books, records and other
documents pertaining to the businesses of the Acquired Companies in existence
on the Completion Date and in accordance with paragraph 8.3(b) of
this Schedule or as otherwise requested by the Sellers to make the same
available for inspection and copying by, and at the expense of, the Sellers or
any Affiliate or representative of the Sellers during reasonable business
hours, upon reasonable request and upon reasonable notice.  No such books, records or documents shall be
destroyed after the seventh (7th) anniversary of the Completion Date by
the Purchasers or any of the Acquired Companies without first advising the
Sellers in writing and giving the Sellers a reasonable opportunity to obtain
possession thereof.

 

12.2         If any Claim for
Tax is outstanding on the seventh (7th) anniversary of the Completion
Date, the Purchasers shall, and shall cause the Acquired Companies to, retain
all such books, records and other documents referred to in paragraph 12.1
of this Schedule until such Claim for Tax has been finally agreed or settled.

 

99

 

SCHEDULE
9

 

ADDITIONAL
COVENANT

 

1.             Definitions and
Interpretation

 

In this Schedule, words and expressions defined in
Schedule 1 (Definitions and Interpretation) shall have the same meanings when
used herein.  In addition, in this
Schedule:

 

“DOJ” means the
United States Department of Justice;

 

“Report” means
the report entitled “Due Diligence Review Report – ABB Lummus Use of
Intermediaries” dated 20 August 2007 and made available to CB&I’s
attorneys on 21 August 2007 at the Washington, D.C. offices of W&C,
together with such report as updated, supplemented and amended from time to
time by or at the direction of the relevant member(s) of the ABB Group;
and

 

“SEC” means the
United States Securities and Exchange Commission.

 

2.             Covenant

 

2.1           Following
Completion, the Sellers shall pay to the Purchasers from time to time such sums
as would, if paid to an Acquired Company or any other member of the CB&I
Group (including the Purchasers), indemnify and keep indemnified that company
against:

 

(a)           any and all
fines, other financial penalties and disgorgement of profits or revenues
imposed by the DOJ, the SEC or any other Governmental Entity on any Acquired
Company or any other member of the CB&I Group;

 

(b)           ninety (90)
percent of any consultant, monitoring or other similar out-of-pocket costs or
expenses reasonably incurred by any Acquired Company or any other member of the
CB&I Group upon the requirement of any Governmental Entity;

 

(c)           any damages
payable by any Acquired Company pursuant to any Contract, and any other damages
payable by such Acquired Company or any other member of the CB&I Group in
respect of any claim (whether in tort or otherwise) made by any Person in
relation to any action derived from or arising under or out of such Contract;
and

 

(d)           any cancellation
or termination fee payable by any Acquired Company on termination of any
Contract by any counterparty thereto (or, in the case of a Contract with an
agent or intermediary, by such Acquired Company),

 

to the extent that the same arise from any act or
omission constituting a violation by any Acquired Company of any Applicable Law
concerning contributions, gifts or other inducement payments (including in
particular any violation of the Foreign Corrupt Practices Act of the United
States (as amended from time to time) through any payment to an intermediary)
where such act or omission occurred prior to Completion and is of the nature of
the issues identified in the Report, whether or not any such indemnity (if
given to any Acquired Company itself) would be invalid under any Applicable
Law, whether as a result of public policy issues or otherwise; provided that,
where such indemnification is in respect of a fine, other financial penalty or
disgorgement of profits or revenues, costs or damages payable by an Acquired
Company which is not a wholly-owned subsidiary of another Acquired Company, the
Sellers shall only be liable for such percentage of the amount which, but for
this proviso would be indemnifiable hereunder, is equal to the percentage
shareholding 

 

100

 

(whether direct or indirect) of the US Seller or the
NL Seller, as the case may be, in the relevant Acquired Company.

 

2.2           Following
Completion, the Sellers shall further pay to the Purchasers from time to time
such sums as would, if paid to an Acquired Company or any other member of the
CB&I Group (including the Purchasers), indemnify and keep indemnified that
company against ninety (90) percent of any external legal fees and expenses
reasonably incurred by any Acquired Company or any other member of the CB&I
Group:

 

(a)           in complying with
any requests made by the DOJ, the SEC or any other Governmental Entity of any
Acquired Company or any other member of the CB&I Group in connection with
payments to intermediaries and other issues and subject matter identified in
the Report; and

 

(b)           in defending any
claims brought by the DOJ, the SEC or any other Governmental Entity against any
current and former director, officer, employee, agent or distributor of any
Acquired Company in connection with payments to intermediaries and other issues
and subject matter identified in the Report, to the extent that any Acquired
Company is obliged, as of the Completion Date, to meet such legal fees and
expenses,

 

provided that, where such
indemnification is in respect of external legal fees or expenses incurred by an
Acquired Company which is not a wholly-owned subsidiary of another Acquired
Company, the Sellers shall only be liable for such percentage of the amount
which, but for this proviso would be indemnifiable hereunder, is equal to the
percentage shareholding (whether direct or indirect) of the US Seller or the NL
Seller, as the case may be, in the relevant Acquired Company; provided further
that, in no event shall the Sellers’ liability under paragraphs 2.2(a) and
(b) above exceed ten million dollars ($10,000,000) in aggregate.

 

2.3           For the avoidance
of doubt, the indemnification provided in paragraphs 2.1 and 2.2 above shall
not apply to:

 

(a)           any loss of
profit arising from the termination of any Contract, or from the suspension or
debarment from any contracting privileges; or

 

(b)           any legal fees or
expenses incurred by any Acquired Company or any other member of the CB&I
Group beyond those expressly stated at paragraph 2.2.

 

3.             Access to
Information

 

3.1           From the date
hereof to Completion, the Sellers shall cause each Acquired Company to afford
to the Purchasers and their attorneys such reasonable access as they may from
time to time reasonably request, during normal business hours, to the personnel
and books and records of the Acquired Group, as well as legal, compliance and
audit employees of the ABB Group and the outside advisors and consultants of
the ABB Group and the Acquired Group, for the purposes of enabling the
Purchasers to gain a better understanding of, and the likely impact of, the
issues and subject matter identified in the Report, so as better to place the
Purchasers in a position to ensure that any violation by any Acquired Company
of any Applicable Law concerning contributions, gifts or other inducement
payments (including in particular the Foreign Corrupt Practices Act of the
United States (as amended from time to time)) do not continue following
Completion.

 

3.2           Forthwith upon
the execution of this Agreement, the Sellers shall deliver to the Purchasers a
copy of the report entitled “Due Diligence Review Report – ABB Lummus Use of
Intermediaries” dated 20 August 2007 and made available to CB&I’s
attorneys on 21 August

 

101

 

2007 at the Washington, D.C. offices of
W&C.  On Completion, the Sellers
shall deliver to the Purchasers a copy of all updates, supplements and
amendments thereto.

 

3.3           All information
made available pursuant to paragraph 3.1 above will be dealt with in accordance
with the terms of the Common-Interest Arrangement dated as of 20 August 2007
between ABB (on behalf of itself and its relevant subsidiaries and affiliates)
and CB&I (on behalf of itself and its subsidiaries and affiliates) and the
Report (delivered pursuant to paragraph 3.2 above) will be dealt with in
accordance with the terms of a substitute or amended continuing common-interest
arrangement to be entered into allowing the Purchasers to retain a copy of the
Report.

 

4.             Co-operation

 

4.1           The Purchasers
are aware that members of the ABB Group intend to make a voluntary disclosure
to the DOJ and the SEC regarding payments to intermediaries relating to foreign
government contracts identified in the Report. 
To facilitate such voluntary disclosure and subsequent co-operation,
following Completion the Purchasers shall co-operate, and shall procure that
the Acquired Group co-operates, with reasonable requests made by the relevant
members of the ABB Group to enable such members of the ABB Group to continue,
after Completion, their investigation into the payments to intermediaries
identified in the Report.  Without
prejudice to the generality of the foregoing, the Purchasers shall:

 

(a)           notify the
Sellers promptly in writing upon the Purchasers learning of the existence of
any material information which the Purchasers reasonably conclude, after having
made inquiries with the relevant Acquired Companies, could potentially relate
to the payments to intermediaries and other issues and subject matter
identified in the Report;

 

(b)           procure the
Acquired Group to retain, maintain and preserve all information (including
documents, books, records, accounts, papers, electronic data and other
information in tangible or intangible form) in the possession, custody or
control of the Acquired Group potentially related to the payments to
intermediaries and other issues and subject matter identified in the Report,
including continuation of the records-retention instructions identified in the
Report, and preserving all relevant electronic data, such as hard drives and
back-up tapes of e-mail, server, financial, and other electronic files;

 

(c)           procure the
Acquired Group to provide the Sellers with access to all information (including
documents, books, records, accounts, papers, electronic data and other
information in tangible or intangible form) in the possession, custody or
control of the Acquired Group potentially related to the payments to
intermediaries and other issues and subject matter identified in the Report
and, upon the Sellers’ request, provide copies of any such information in
tangible form;

 

(d)           use all
reasonable endeavours, and procure that the Acquired Group uses all reasonable
endeavours, to secure the co-operation of any current and former directors,
officers, employees, agents, distributors, attorneys, outside consultants and
members of internal audit who may have knowledge potentially related to the
payments to intermediaries and other issues and subject matter identified in
the Report;

 

(e)           refrain, and
procure that the Acquired Group refrains, from disclosing to any third party
any information potentially related to the payments to intermediaries and other
issues and subject matter identified in the Report in the absence of the
Sellers’ prior written consent, except as otherwise required by Applicable Law
or the rules or regulations of the SEC or any Governmental Entity;

 

102

 

(f)            consult, and
procure that the Acquired Group consults, with the Sellers prior to the
Acquired Companies mounting any defence, agreeing to any settlement or entering
into any negotiations concerning any allegation, claim or suit brought by the
DOJ, the SEC or any other any third party related to the payments to
intermediaries and other issues and subject matter identified in the Report;

 

(g)           consult, and
procure that the Acquired Group consults, with the Sellers regarding any
disciplinary actions contemplated against any current and former directors,
officers, employees, agents, distributors, attorneys, outside consultants and
members of internal audit as a result of their possible involvement in the
payments to intermediaries identified in the Report or their failure to
co-operate with the relevant members of the ABB Group in accordance with the
terms of this paragraph 4.1; and

 

(h)           abide by the
Sellers’ instructions as to whether to assert or waive the Sellers’  potential attorney-client privilege or
work-product immunity with respect to communications and materials related to
the payments to intermediaries and other issues and subject matter identified
in the Report,

 

provided that,
notwithstanding the foregoing, the Purchasers shall not be deemed to be in
default under this paragraph 4.1 to the extent that its failure to procure any
such matter as is referred to above in this paragraph 4.1 is attributable to
any deliberate wrong-doing by any employee of any Acquired Company.

 

4.2           Save as may be
required by any Governmental Entity, members of the ABB Group, at their own
cost, shall have exclusive authority to investigate, respond to, defend,
litigate and settle any and all allegations, inquiries, proceedings, claims,
charges, indictments and suits that may give rise to an obligation to indemnify
under paragraphs 2.1 or 2.2 above.  The
Sellers undertake to the Purchasers that the ABB Group will pursue such matters
diligently.

 

4.3           Subject to
paragraph 4.2, the Purchasers shall use, and, following Completion, shall
procure that the Acquired Group uses, all reasonable endeavours to mitigate any
potential liabilities that may give rise to an obligation to indemnify under
paragraphs 2.1 or 2.2 above  provided
that, again, notwithstanding the foregoing, the Purchasers shall not be deemed
to be in default under this paragraph 4.3 to the extent that its failure to procure
that the Acquired Group uses, all reasonable endeavours to mitigate any
potential liabilities that may give rise to an obligation to indemnify under
paragraphs 2.1 or 2.2  is attributable to
any deliberate wrong-doing by any employee of any Acquired Company.

 

4.4           The Purchasers
undertake to the Sellers that, if the Purchasers (or either of them), or any
member of the CB&I Group, sells, distributes or otherwise transfers to any
third Person all or a substantial portion of the Acquired Group or the Business,
then the Purchasers shall procure that the transferee first agrees in writing,
in favour of the Sellers and each other relevant member of the ABB Group, to be
bound by the provisions of this paragraph 4, mutatis mutandis, on the basis
that references in this paragraph 4 to the “Purchasers” shall be deemed to be
(or to include, as applicable) references to such transferee.

 

5.             Termination

 

5.1           Neither Seller
shall be liable in respect of any claim under paragraphs 2.1 or 2.2 above
unless such claim is made by notice in writing to the Sellers, specifying with
particularity the matter giving rise to the claim and the Governmental Entity
involved, prior to the seventh anniversary of the Completion Date.

 

5.2           Neither Seller
shall be liable for any claim under paragraphs 2.1 or 2.2 above with respect to
any Acquired Company or any other member of the CB&I Group after such
Acquired

 

103

 

Company or other member of the CB&I Group has
ceased to be an Affiliate of CB&I and the Sellers’ liability, if any, in
respect of any such claim that is then outstanding shall be immediately
extinguished upon such Acquired Company or other member of the CB&I Group
ceasing to be an Affiliate of the Purchasers; provided that the foregoing shall
not apply if the Sellers have approved the identity of the proposed transferee(s) (which
approval shall not be unreasonably withheld or delayed).

 

104

 

EXECUTION

 

ABB HOLDINGS B.V.

acting by:

 

	
  /s/ Francois Champagne

  	
   

  
	
  Name: Francois Champagne

  	
   

  
	
  Holder of a
  power of attorney

  	
   

  
	
   

  	
   

  
	
  /s/ Ulf Hoof

  	
   

  
	
  Name: Ulf Hoof

  	
   

  
	
  Holder of a
  power of attorney

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ABB HOLDINGS INC.

  	
   

  
	
  acting by:

  	
   

  
	
   

  	
   

  
	
  /s/ Francois Champagne

  	
   

  
	
  Name: Francois
  Champagne

  	
   

  
	
  Attorney-in-fact

  	
   

  
	
   

  	
   

  
	
  /s/ Ulf Hoof

  	
   

  
	
  Name: Ulf Hoof

  	
   

  
	
  Attorney-in-fact

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ABB ASEA BROWN BOVERI LTD.

  	
   

  
	
  acting by:

  	
   

  
	
   

  	
   

  
	
  /s/ Ulrich Spiesshofer

  	
   

  
	
  Name: Ulrich
  Spiesshofer

  	
   

  
	
  Holder of a
  power of attorney

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CHICAGO
  BRIDGE & IRON COMPANY N.V.

  	
   

  
	
  By: Chicago
  Bridge & Iron Company B.V.,

  	
   

  
	
  its Managing
  Director,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip Asherman

  	
   

  
	
  Name: Philip
  Asherman

  	
   

  
	
  Title: Managing
  Director

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Walter
  Browning

  	
   

  
	
   

  	
   

  
				

 

105

 

	
  CHICAGO
  BRIDGE & IRON COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip Asherman

  	
   

  
	
  Name: Philip
  Asherman

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Walter
  Browning

  	
   

  
	
   

  	
   

  
	
  CHICAGO
  BRIDGE & IRON COMPANY B.V.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip Asherman

  	
   

  
	
  Name: Philip
  Asherman

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Walter
  Browning

  	
   

  
	
   

  	
   

  
						

 

106

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