Document:

exv4w133

Exhibit 4.133

(English Translation)

Joint Venture Agreement

For the Establishment of

“Telvent DMS” LLC Novi Sad

By and Between

“DMS Group”, LLC Novi Sad

and

Telvent Energia S.A. Madrid

Date: May 8th, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	Article I — Definitions and Interpretations

	 	 	2	 
	Article II — Legal Representatives

	 	 	6	 
	Article III — Establishment of the JV Company

	 	 	6	 
	Article IV — Purpose and Scope of the JV Company

	 	 	7	 
	Article V — Capital Contributions and Closing

	 	 	8	 
	Article VI — Assignment of Equity Interest in JV Company

	 	 	13	 
	Article VII — Relationship Between the Parties & Post-Closing Responsibilities

	 	 	14	 
	Article VIII — Offices, Equipment and Use of Intangible Assets

	 	 	17	 
	Article IX — Board

	 	 	17	 
	Article X — Operations and Management

	 	 	17	 
	Article XI — Contracts with Shareholders and Affiliated Companies

	 	 	18	 
	Article XII — Labour Management

	 	 	18	 
	Article XIII — Accounting, Auditing, Budget & R&D Plan

	 	 	20	 
	Article XIV — Representations and Warranties

	 	 	23	 
	Article XV — Foreign Exchange

	 	 	26	 
	Article XVI — Insurance

	 	 	27	 
	Article XVII — Amendment, Alteration and Discharge of Contract

	 	 	27	 
	Article XVIII — Limitation of Liability

	 	 	28	 
	Article XIX — Force Majeure

	 	 	29	 
	Article XX — Confidentiality

	 	 	29	 
	Article XXI — Applicable Law

	 	 	31	 
	Article XXII — Settlement of Disputes

	 	 	31	 
	Article XXIII — Notices

	 	 	32	 
	Article XXIV — Miscellaneous

	 	 	33	 

 

 

Schedules:

	 	 	 

	Schedule 1

	 	Schedule of Capital Contributions & Contribution
Percentages
	Schedule 2

	 	List of DMS Business
	Schedule 3

	 	Form of Memorandum of Incorporation
	Schedule 4

	 	Form of Shareholders Agreement
	Schedule 5

	 	Research & Development Plan
	Schedule 6

	 	Annual Budget for 2008
	Schedule 7

	 	List of Employees
	Schedule 8

	 	Form of Employment Agreement with Dragan Popovic
	Schedule 9

	 	Form of Employment Agreement for other employees
	Schedule 10

	 	DMS Business transfer Agreement 

10(a) — List and description of DMS Software
modules / components 

10(b) — List of persons who worked on the DMS
Software but did not sign confidentiality agreements 

10(c) — List of Software Licenses granted by DMS
Group to third parties 

10(d) — List of Contracts of DMD Group relating
to licensing of DMS Software
	Schedule 11

	 	Form of VAR Agreement to be signed between Telvent and the
JV Company
	Schedule 12

	 	Required Consents
	Schedule 13

	 	Form of Lease Agreement
	Schedule 14

	 	Form of Agreement with professors and members of Department
	Schedule 15

	 	Form of Cooperation Agreement with University of Novi Sad

 

 

Joint Venture Agreement

This Agreement is made as of the 08th day of May, 2008,

Between:

	 	 	“DMS Group”, LLC Novi Sad, a corporation incorporated under the laws of Serbia with
registered offices at St. Puskinova 9A, 21000 Novi Sad, Serbia and tax identification number
[***], Agency for Business Registries in Belgrade, BD 58048/2006

(hereinafter referred to as “DMS Group”), represented by the Prof. DrDragan Popovic,
Personal ID: [***], Chairman of the Board.
	 
	 	 	and
	 
	 	 	Telvent Energia S.A. , a company organized and existing under the laws of Spain,
with registered office at Valgrande 6, Alcobendas 28108, Madrid, Spain, with
V.A.T/Taxpayer’s Number [***], entered in the Companies’ Register of Madrid, in volume 1612
general, 1036 of section 3 of the Companies Book, sheet 1, sheet number 7367, registration
1, (hereinafter referred to as “Telvent”) represented by Mr. Jesus Manuel Rios Odero, with
Personal ID: [***], passport number: [***] by virtue of a power of attorney dated March 27,
2008 before the Notary Public Mr. Juan Alvarez-Sala Walther with protocol number [***].

Article I — Definitions and Interpretations

	1.1	 	Unless otherwise stipulated in this Agreement, the following terms in this Agreement shall
have the respective following meanings stated:

	 	(a)	 	“Affiliated Company” means, in respect of a Party, any other entity controlling
or controlled by or under common control with it.
	 
	 	(b)	 	“Agreement” means this joint venture agreement and all annexes
attached to this Agreement as the same may be amended from time to time and the
expressions “hereof”, “hereto”, “hereunder” and similar expressions refer to this
Agreement, including all annexes and not to any particular article or section.
	 
	 	(c)	 	“Annual Budget” means the Plan of operational income and expenses of the JV
Company for a financial year approved in accordance with Article 13.11.
	 
	 	(d)	 	“Board” means the Managing board or board of directors of the JV Company.

 

 

	 	(e)	 	“Business” means the business of the JV Company relating to the Business Scope
and any other activities which the Board decides from time to time will be carried on
by the JV Company.
	 
	 	(f)	 	“Business Scope” has the meaning given in Article 4.1.
	 
	 	(g)	 	“Claim” means any allegation, debt, cause of action, liability, claim,
proceeding, suit or demand of any nature howsoever arising and whether present or
future, fixed or unascertained, actual or contingent whether at law, under statute, or
otherwise.
	 
	 	(h)	 	“Capital Contribution” means, in relation to a Shareholder, that Shareholder’s
contribution to the capital of the JV Company pursuant to this Agreement.
	 
	 	(i)	 	“Closing” has the meaning set forth in Article 5.5;
	 
	 	(j)	 	“Closing Date” has the meaning set forth in Article 5.5;
	 
	 	(k)	 	“Company Law” means the Serbian Company Law (Official Gazette of the Republic
of Serbia no. 125/2004).
	 
	 	(I)	 	“Contribution Percentage” means, in relation to a Shareholder, the percentage
that is equal to the Capital Contribution made by that Shareholder expressed as a
percentage of the total capital of the Corporation.
	 
	 	(m)	 	“Member of the Board” means any member of the Board.
	 
	 	(n)	 	“DMS Business” means the technical and technological entirety of the part of
business of DMS Group, which in the technological sense is related to the organized
production process, development, promotion, marketing and licensing of the DMS software
and carrying out turnkey projects in the area of control and information systems and
communications infrastructures in the energy, transportation, telecommunications,
environmental fields, and in technical sense is composed of DMS Business Assets.
	 
	 	(o)	 	“DMS Business Assets” means the DMS software, and the computer equipment,
software, furniture, equipment, software licenses, organized production process and
other assets used by DMS Group in the DMS Business described and listed in Schedule 2
attached to this Agreement.
	 
	 	(p)	 	“DMS Software” means the electricity distribution management software owned by
DMS Group known as the DMS Software, as described in Schedule 10(a), and all source
code, object code, listings, copyrights,

 

 

	 	 	 	patents and other intellectual property rights relating to the DMS Software.
	 
	 	(q)	 	“Effective Date” means the date on which both of the following conditions are
met: (a) the JV Company is registered by the Registration Authority, and (b) the
permanent banking account of the JV Company is opened and the funds from temporary
account have been transferred to the permanent account.
	 
	 	(r)	 	“Encumbrance” means any charge, claim, community property interest, condition,
equitable interest, mortgage, lien, option, pledge, security interest, or other charge
or restriction of any kind, including any restriction on use, voting, transfer, receipt
of income, or exercise of any other attribute of ownership or any option, right of
first refusal, pre-emptive right, or other right of third parties, whether voluntarily
incurred or arising by operation of law, and includes, without limitation, any
agreement to give any of the foregoing in the future.
	 
	 	(s)	 	“Force Majeure” means the events specified in Article XIX.
	 
	 	(t)	 	“IFRS” means the International Financial Reporting Standards (IFRS) adopted by
the International Accounting Standards Board (IASB) applied on a consistent basis from
period to period.
	 
	 	(u)	 	“Telvent Initial Capital Contribution” has the meaning set out in Article
5.1(a).
	 
	 	(v)	 	“JV Company” means Telvent DMS LLC, a limited liability company to be formed by
the Parties in accordance with this Agreement pursuant to the Company Law and other
relevant laws of Republic of Serbia
	 
	 	(w)	 	“Memorandum of Incorporation” means the Memorandum of Incorporation of the JV
Company in the form attached as Schedule 3 to be signed and registered in accordance
with this Agreement to form the JV Company.
	 
	 	(x)	 	“New VAR Agreement” has the meaning set out in Article 7.2.
	 
	 	(y)	 	“RSD” means Serbian dinars, the lawful currency of Republic of Serbia
	 
	 	(z)	 	“Registration Authority” means the Business Registration Agency of Republic of
Serbia with which the JV Company shall be registered.
	 
	 	(aa)	 	“R&D Plan” means the three-year technological and financial research and
development plan of the JV Company for the DMS Software for the years
2008-2010 approved by Telvent management as set out in Schedule 5 to this Agreement
as updated and approved annually in accordance with

 

 

	 	 	 	Article 13.12.
	 
	 	(bb)	 	“Required Consents” means all Consents required from customers, lessors,
licensors, governmental entities or any other Person relating to the transfer of DMS
Software to the JV Company or the establishment of the JV Company including without
limitation those listed in Schedule 12.
	 
	 	(cc)	 	“Shareholders Agreement” means the agreement between the Parties in the form of
Schedule 4 to this Agreement to be signed by the Parties on the Closing
	 
	 	(dd)	 	“Stake” means a Party’s Percentage participation in the capital of the JV
Company entitling a Party to exercise shareholders rights in the JV Company in
accordance with the Serbian Company Law including the rights to receive dividends or
otherwise share in the net profits of the JV Company and to share in the distribution
of the assets of the JV Company upon a winding up or liquidation of the JV Company.

	1.2	 	In this Agreement, unless the context otherwise requires:

	 	(a)	 	“Parties” means the parties to this Agreement as set out in the Preamble and
“Party” means either DMS Group or Telvent.
	 
	 	(b)	 	“controlling”, “controlled” or “control” means that an entity directly or
indirectly owns more than 50% of the voting right in another entity, or has the right
or power to appoint a majority of directors in another entity or otherwise to guide or
direct the policy or management of another entity;
	 
	 	(c)	 	the singular includes the plural and vice versa, and a gender includes other
genders;
	 
	 	(d)	 	a reference to a document or agreement includes the document or agreement as
notated, altered, supplemented or replaced from time to time;
	 
	 	(e)	 	a reference to a person includes the person’s executors, administrators,
successors and permitted assigns and substitutes;
	 
	 	(f)	 	a reference to a person includes a natural person, partnership, body
corporate, association, governmental or local authority or agency or other entity;
	 
	 	(g)	 	a reference to a statute, ordinance, code or other law includes regulations and
other instruments under it and consolidations, amendments, re-enactments or
replacements of any of them; and

 

 

	 	(h)	 	mentioning anything after “include”, “includes” or “including” does not limit
what else might be included.

	1.3	 	In this Agreement, headings are for ease of reference only and do not affect interpretation.

Article II — Legal Representatives

	2.1	 	The legal representatives of the Parties are as follows:

	 	 	 	 
	 	DMS Group:
	 	 
	 	Legal Representative: Name: 

Position: 

Nationality:

	 	Prof. Dr Dragan Popovic

Chairman of the Board

Serbian
	 	 
	 	 
	 	Telvent:
	 	 
	 	Legal Representative: Name: 

Position: 

Nationality:

	 	Jesus Manuel Rios Odero

Electric Business Vice President

Spanish

Article Ill — Establishment of the JV Company

	3.1	 	In accordance with the Company Law and other relevant laws and regulations, the Parties agree
to set up the JV Company as a limited liability company.
	 
	3.2	 	The business name of the JV Company shall be:
	 
	 	 	The full business name shall be: “Telvent DMS” d.o.o. za elektroenergetski inzenjering, Novi
Sad in Serbian, and “Telvent DMS” LLC for power engineering Novi Sad in English.
	 
	 	 	The abbreviated business name shall be: “Telvent DMS” d.o.o. Novi Sad in Serbian, and
“Telvent DMS” LLC Novi Sad in English.
	 
	 	 	Should the Registration Authority fail to approve the aforementioned name of the JV Company,
the Parties shall agree on a new company name.
	 
	3.3	 	The legal address of the JV Company shall be: Sremska 4, Novi Sad, Republic of Serbia
	 
	3.4	 	The JV Company shall be a legal person under the laws of Republic of Serbia and all its
activities shall be governed and protected by the relevant and published laws, decrees, rules
and regulations of Republic of Serbia.

 

 

	3.5	 	The JV Company shall be organized as a limited liability company. Each Party shall share the
JV Company’s profits and undertake the risks and losses in proportion to its respective
contribution in the registered capital of the JV Company. Each Party shall be limited to the
extent of its respective capital contribution subscribed thereto and the liability of the JV
Company to its creditors shall be limited to its total assets. No Party shall have any
liability to the JV Company other than the requirement to make such contribution, or to any
third party in connection with the activities of the JV Company either jointly or severally,
unless otherwise agreed to in writing by the Parties. In no event shall any Party be
responsible for any losses, risks, liabilities or obligations whatsoever resulting from any
act of the other Party.
	 
	3.6	 	The JV Company shall be organized and operated in accordance with the terms and conditions of
this Agreement and of the Memorandum of Incorporation.

Article IV — Purpose and Scope of the JV Company

	4.1	 	The business scope of the JV Company (“Business Scope”) shall be carrying on the businesses
relating mostly to the development, promotion, marketing and licensing of the software
formerly owned by DMS Group known as DMS software and carrying out turnkey projects in the
area of control and information systems and communications infrastructures in the energy,
transportation, telecommunications, environmental fields.
	 
	4.2	 	Each Party will at all times act in good faith in relation to the other Party and to the JV
Company in respect of all matters relating to the JV Company and the Business. However,
nothing in this Agreement will require either Party to act in any way which would adversely
impact on any other business or enterprise conducted by that Party or any Affiliated Company
of that Party (whether directly or indirectly or in whole or in part) during the Term of Joint
Venture.

Article V
— Capital Contributions and Closing

	5.1	 	The capital of the JV Company shall be €12,245,000. The contribution of each Party to the
registered capital shall be as follows:

	 	(a)	 	€4,135,000 contributed in cash by Telvent as follows:

	 	(i)	 	€1,135,000 to be paid by Telvent into a temporary bank account
for the JV Company prior to the registration of the JV Company and
	 
	 	(ii)	 	€3,000,000 payable within 2 years of the date of registration
of the JV Company according to the schedule attached hereto as Schedule 1,

	 	 	 	which all together amounts to €4,135,000 as Telvent’s capital contribution to the JV
Company (the “Telvent Initial Capital Contribution”) for a 33.77%

 

 

	 	 	 	Stake in the JV Company.
	 
	 	(b)	 	€8,110,000 contributed in kind by DMS Group by way of transferring the DMS
Business to the JV Company, valuated as €8,110,000 in time of registration of the JV
Company, for a 66.23% Stake in the JV Company.
	 
	 	(c)	 	Telvent Initial Capital Contribution of €4,135,000 as well as the €1,000,000
payable by Telvent to the JV Company annually under Section 2.3 of the New VAR
Agreement as part of the Minimum Annual Amount for each of the first four years of the
New VAR Agreement will be used primarily for financing of R&D Plan attached hereto as
Schedule 5 as well as for promotional and other purposes related to support of DMS
Producs that are included in the Annual Budget.

	5.2	 	Within fifteen (15) days after the Effective Date, DMS Group shall sell a 15.23% Stake in the
JV Company to Telvent in exchange for €1,865,000 to be paid by Telvent to DMS Group. The
Contribution Percentages in the capital of the JV Company after completion of the transfer of
the 15.23% Stake in the JV Company to Telvent shall be 51% for DMS Group and 49% for Telvent
and shall be fixed and shall not be changed except in accordance with the Shareholders
Agreement or unless otherwise agreed by the Parties in writing.
	 
	5.3	 	The JV Company will not acquire or assume any of the existing contracts of the DMS Group.
Existing contracts of the DMS Group for open DMS projects (including EPS II phase, EVN
Macedonia, ENEL — Pilot project Milano, ENEL — DMS installation in 29 control centers, DMS
for EDF I Phase) will remain with DMS Group who will complete those contracts at its own
expense and for its own benefit in period of 12 months after the Effective Date. JV Company
will not share in either the costs or the revenues from those contracts. Any extensions of
those contracts and all new agreements for DMS Software will be signed exclusively by the JV
Company. After the Closing, DMS Group will not sign any new agreement for sales of the DMS
Software.
	 
	5.4	 	The JV Company will not assume any of the liabilities of DMS Group or Telvent and the JV
Company shall not have any indebtedness or liabilities as of the Closing.
	 
	5.5	 	Each party will be responsible for payment of its own costs and taxes relating to the
Transaction, with the exception of taxes and duties associated with the purchase by Telvent of
15.23% of DMS’s Stake in the JV Company for the price of EUR 1,865,000 (as defined under 5.2
above, which shall be divided between the Parties on the following basis: taxes and duties
associated to 1.300.000 Euro to be borne by Telvent and taxes and duties associated to 565.000
Euro to be borne by DMS Group.
	 
	5.6	 	The closing of the transactions contemplated by this Agreement with respect to

 

 

	 	 	the initial Capital Contributions of the parties and the other transactions contemplated in
Section 5.7 (the “Closing”) shall take place at the offices of the JV Company at Sremska 4,
Novi Sad, Republic of Serbia at 10:00 am. local time on the date which is five (5) Business
Days after the satisfaction or waiver of the closing conditions contained in Article 5.8, or
at such other time and place as the parties may agree in writing (the “Closing Date”).
	 
	5.7	 	On the Closing, the Parties shall make their respective Capital Contributions to the
registered capital of the JV Company in accordance with Section 5.1 and Section 5.2. and the
timeframe set out in Schedule 1.The JV Company will acquire full rights in the DMS Software
after the Transactions described in 5.1 and 5.2 are completed and Telvent has paid the first
scheduled payment according to Schedule 1.
	 
	 	 	In case that Telvent does not execute the transaction specified in Section 5.2, it will be
considered that Closing has not happened and the JV Company will continue operation in
accordance with registered Capital Contributions, while the Shareholders Agreement and the
relevant parts of this Agreement will not be valid and instead the Company Law will be
applied.
	 
	5.8	 	Closing Obligations.
	 
	 	 	At the Closing:

	 	5.8.1	 	DMS Group will deliver to Telvent:
	 
	 	(a)	 	A DMS Business transfer Agreement executed by DMS Group transferring the DMS
Business Assets to the JV Company attached hereto as Schedule 10, free and clear of all
Encumbrances as DMS Group’s Capital Contribution in the JV Company;
	 
	 	(b)	 	Written consent of Mr. Dragan Popovic in which he agrees to become an employee
of the JV Company on the Effective Date under the Employment Agreement, attached hereto
as Schedule 8;
	 
	 	(c)	 	A List of the employees who will transfer from DMS Group to the JV Company,
attached hereto as Schedule 7;
	 
	 	(d)	 	Written consents of Key Employees in which they agree to become employees of
the JV Company on the Effective Date under Employment Agreement, attached hereto as
Schedule 9;
	 
	 	(e)	 	all Required Consents;
	 
	 	(f)	 	A Resolution of the Board of DMS Group approving this Agreement and the
transactions contemplated hereunder.

 

 

	 	(g)	 	A Resolution in writing signed by all of the Stakeholders/shareholders of DMS Group
approving the transfer of the DMS Business to the JV Company;
	 
	 	(h)	 	A lease for sub-floor, ground floor, gallery, the 4th floor and attic space
with duplex for the JV Company’s offices at Sremska 4, Novi Sad, Serbia in the form
attached hereto as Schedule 13 executed by DMS Group and the JV Company;
	 
	 	(i)	 	Template Agreements between the JV Company and each of the professors and
members of the Department for Power Systems, Faculty of technical sciences at
University of Novi Sad who are engaged in research and development on DMS Software and
consents of these professors and members to the template agreement. Under the template
agreements said professors and members will agree that they will not carry out any
research and development work for competitors of Telvent DMS, with validity period of
three years attached hereto as Schedule 14;
	 
	 	(j)	 	The Cooperation Agreement between the JV Company and the Department for Power
Systems, Faculty of technical sciences at University of Novi Sad in the form attached
hereto as Schedule 15 and executed by the JV Company and the University.
	 
	 	5.8.2	 	Telvent will pay the Telvent Capital Contribution in accordance with Section
5.1 into the temporary back account and will deliver to DMS Group:

	 	(a)	 	the New VAR Agreement executed by Telvent or a Telvent
Affiliated Company.
	 
	 	(b)	 	A Resolution of the Board of Directors of Telvent approving
this Agreement, the Shareholders Agreement, the New VAR Agreement and the
transactions contemplated hereunder.

	 	5.8.3	 	The Parties shall duly execute the following documents:

	 	(a)	 	the Memorandum of Incorporation;
	 
	 	(b)	 	the Shareholders Agreement;
	 
	 	(c)	 	the R&D Plan;
	 
	 	(d)	 	the Annual Budget for 2008;
	 
	 	(e)	 	An agreement terminating the existing VAR Agreement between DMS
Group and Telvent.

 

 

	 	5.8.4	 	All of the above documents and agreements will come into force on the
Effective Date, except for the Memorandum of Incorporation which will come into force
on the day of signing and certification before the court and except for the
Shareholders Agreement which will come into force on the day when Telvent execute
transaction specified in Section 5.2.

Closing Conditions

	5.9	 	The completion of the Closing will be subject to the following conditions, which may be
revised by mutual agreement:

	 	(a)	 	delivery by DMS Group to Telvent of a certificate confirming that all
Representations and Warranties of DMS Group set out in Article 14 are accurate and true
on the date of Closing.
	 
	 	(b)	 	delivery by Telvent to DMS Group of a certificate confirming that all
Representations and Warranties of Telvent set out in Article 14 are accurate and true
on the date of Closing.

	5.10	 	Immediately after the Closing, and not later than 15 days after signing of the Memorandum of
Incorporation, the Parties shall submit the Memorandum of Incorporation and other necessary
documents to the Registration Authority to register the JV Company. If the Registration
Authority or any other competent authority in Serbia indicates that changes should be made to
the Memorandum of Incorporation or this Agreement, such changes shall not be binding on the
Parties unless and until agreed upon by the Parties in writing.
	 
	5.11	 	The Parties agree to co-operate in providing documents and information in connection with the
application procedures referred to in Article 5.11. All originals of the documents related to
the establishment of the JV Company (including, but not limited to, certificate of
registration I incorporation of the JV Company) shall be kept in the JV Company.
	 
	5.12	 	On the Effective Date, all documents signed and delivered on the Closing and all documents
and agreements to which the JV Company is a party shall become effective.
	 
	5.13	 	If Telvent fails to make its Capital Contribution within the time frames as stipulated under
this Agreement, except under the conditions of Force Majeure:

	 	(a)	 	Telvent shall pay to the JV Company interest for the amount or value overdue
which is calculated on a daily basis from and including the date such contribution was
due until and including the date the contribution is made in full at the interest rate
of EURIBOR plus 1%. Such interest shall be payable monthly in arrears and shall be used
by the JV Company for appropriate business purposes.

 

 

	 	(b)	 	Telvent shall indemnify the JV Company for any penalties or costs incurred by
the JV Company as a result of such failure to pay the Capital Contribution.
	 
	 	(c)	 	if such failure by Telvent to pay a Capital Contribution when due continues for
a period of 30 days then DMS Group will give a Notice in writing to Telvent, and if the
failure continues for a further 30 days after receipt of such Notice, then Sections 4.4
and 4.26 of Shareholders Agreement will be temporarily suspended until such time as
Telvent pays the overdue Capital Contribution and all accrued interest. If the default
continues, the Contribution Percentages shall be adjusted to take into account the
failure to pay the Capital Contribution In this case, the Resolution to adjust
registered Stakes in the JV Company according to paid contributions will be passed on
Shareholders Meeting with majority voting, while quorum will exist if representatives
of 51% registered Stake in the JV Company are present.. In this case, Sections 4.4 and
4.26 of Shareholders Agreement will be permanently suspended and the Shareholder
Agreement will be adjusted accordingly.
	 
	 	(d)	 	If the JV Company is in default of its obligations to provide financial
reporting, or progress reports on the R&D Plan under section 13.12 or has materially
failed to carry out the work to be done under the R&D Plan and Telvent has rejected the
latest R&D four-month report, Telvent may issue a notice of default to the JV Company
with a copy to DMS Group and if such default is not remedied within 30 days of receipt
of the notice by the JV Company and DMS Group, Telvent shall be entitled to suspend
payment of the next Capital Contribution listed in Schedule 1 and the provisions of
sub-paragraphs (a), (b) and (c) of this Article shall not apply to Telvent’s failure to
pay the Capital Contribution until the default is remedied.

If the default is not resolved in the next 30 days, Contribution Percentages shall
be adjusted to take into account the Capital Contribution actually paid by Telvent.
In this case, the Resolution to adjust registered Stakes in the JV Company according
to paid contributions will be passed on Shareholders Meeting with majority voting,
while quorum will exist if representatives of 51% registered Stake in the JV
Company.
Then the Article 9 of Shareholder Agreement will be applied.

	5.14	 	Any increase in the capital of the JV Company by each Party, if any, shall occur so as to
maintain the Contribution Percentages. Any such increase in the capital shall be subject to
all necessary procedures required by the Board.
	 
	5.15	 	All assets owned by the JV Company or which the JV Company is entitled to use shall be used,
disposed of or otherwise dealt with by the JV Company only for the purposes of the JV Company
stipulated herein and in the Memorandum of
Incorporation.

 

 

Article VI — Assignment of Equity Interest in JV Company

	6.1	 	If any Party intends to divide, transfer or sell all or part of its Stake in the JV Company,
such disposition must be made in accordance with the Shareholders Agreement.
	 
	6.2	 	When a Party disposes of its Stake in the JV Company as provided herein, such Party shall
assign to the acquiring party and the acquiring party shall assume in writing the benefit and
burden of this Agreement and will do so by executing an amendment to this Agreement and the
Memorandum of Incorporation with the non-transferring party and the transferring Party (if it
transfers a portion of its equity interest in the JV Company), such acquiring party being
thereafter bound by the amended Contract and Memorandum of Incorporation as a Party thereof.
	 
	6.3	 	Any attempted transfer or sale of any Stake in the JV Company in violation of this Article VI
shall be null and void and of no force and effect.

Article VII — Relationship Between the Parties & Post-Closing Responsibilities

	7.1	 	DMS Group will not, either directly or indirectly through any subsidiary, affiliate or other
entity, market or sell any services in respect of the DMS Software except in accordance with
Section 5.3. This restriction does not prohibit DMS Group from providing any other services
(e.g., consulting services including know-how, maintenance services, outsourcing development
services) in the area of power engineering (generation, transmission, distribution, as well as
electricity open market), provided that such work does not involve embedding in any other
(competitors) products components of the source or object code of the DMS Software owned by
the JV Company. In addition, DMS Group will not provide sales, commercial or marketing
services to promote any DMS products which are competitive with the JV Company Products or to
assist any other vendors in obtaining contracts worldwide for the supply of products which are
competitive with the DMS Software. The obligations of DMS Group under this Article will also
be contained in the transfer agreement under which the DMS Business will be transferred to the
JV Company.
	 
	7.2	 	The sharing of the commercial market and the relationship between Telvent and JV Company will
be according to the VAR Agreement signed between Telvent and DMS Group dated January 1, 2007.
On the closing, that VAR Agreement will be terminated and Telvent Sweden and the JV Company
will enter into a new VAR Agreement in the form attached hereto as Schedule 11 (the “New VAR
Agreement”) on similar terms under which Telvent Sweden shall have exclusive rights to market
and license the DMS Software and to execute projects using the DMS Software in the following
territories: Spain, Portugal, Andorra, North
America, Central America, South America, the Caribbean, China and Australia

 

 

	 	 	(“the Exclusive
Territory”). Both companies would where necessary participate and support each other in both
the Exclusive Territory and other parts of the world. After December 31, 2010, Telvent
Sweden and the JV Company will agree on a new minimum annual amount based on market
conditions to be paid by Telvent Sweden for licenses and services in order to maintain its
exclusive rights in the Exclusive Territory. Telvent hereby guarantees fulfillment of all of
the obligations of Telvent Sweden to Telvent DMS under the New VAR Agreement and as
guarantor will bear all consequences of not fulfilling due and undisputable obligations in
New VAR agreement as described in the New VAR Agreement as well as the other related
agreements signed between Telvent and DMS Group.
	 
	7.3	 	If Telvent Sweden fails to pay a due and undisputable obligation under the New VAR Agreement
and such failure continues for 60 days after receipt of a written notice of default from JV
Company and provided that JV Company is not in default in any material obligation under the
ioint Venture Agreement or New VAR Agreement then:

	 	(a)	 	Telvent Sweden Exclusive Rights will under the New VAR Agreement shall become
non-exclusive until the said obligation is paid; and
	 
	 	(b)	 	the requirement for consensus under Section 4.4 (b) of Shareholders Agreement
will be suspended until the said obligation is paid

	7.4	 	If JV Company is in default of its obligations under a Purchase Order under the New VAR
Agreement and such default continues for 60 days after notice in writing from Telvent, the
Vice-Chairman instead of the Chairman will have the casting vote on any Board decision
relating to the project which is related to that Purchase Order until such default is
remedied.
	 
	7.5	 	The closing balance related to the existing VAR agreement
will be made with the closing date of March 31, 2008. The balance of payments for services and licenses according
to the existing VAR agreement will be completely closed as of March 31, 2008.
	 
	7.6	 	The Parties agree that Telvent will have a credit balance under the existing VAR Agreement
for services in the amount of €88,000 and the preferred option would be to use up that credit
by having 2 engineers from DMS Group come to Telvent’s offices in Spain during the month of
March, 2008 to provide engineering services.
	 
	7.7	 	Depending on the results achieved, Telvent will consider the JV Company as the preferred
option to develop additional R&D plans, engineering and project implementation outside of the
DMS business, at cost pIus 20% gross margin, but Telvent cannot commit to a minimum annual
amount. This part would not be counted in the amount stated in the New VAR Agreement that is
related to the
DMS business.

 

 

	7.8	 	DMS Group, in the capacity of a Shareholder of the JV Company, shall have the following
obligations in addition to any other obligations specified in this
Agreement:

	 	(1)	 	DMS Group shall assist the JV Company in applying to the competent authority
for approval, registration and other matters concerning the establishment and operation
of the JV Company;
	 
	 	(2)	 	DMS Group shall assist the JV Company in selecting and training qualified local
Serbian employment candidates, including operational and management personnel,
technical personnel, interpreters, workers, and other personnel required;
	 
	 	(3)	 	DMS Group shall assist the JV Company in opening foreign currency accounts and
RSD accounts with the bank designated by the Board and approved by the State
Administration for Foreign Exchange;
	 
	 	(4)	 	DMS Group shall try its best to assist the JV Company in developing markets and
customers within Serbia as well as exporting the products of the JV Company;
	 
	 	(5)	 	DMS Group shall assist the expatriate managers, employees and worker staff of
the JV Company and of the Parties, with whom the JV Company contracts to obtain all
entry visas and work permits necessary and assist the JV Company in arranging boarding,
lodging, office space, transportation and medical facilities for such persons in
Serbia;
	 
	 	(6)	 	DMS Group shall assist the JV Company and its employees and managers in
complying with all applicable environmental, health and safety laws and regulations of
Serbia and developing an appropriate compliance system; and
	 
	 	(7)	 	DMS Group shall assist the JV Company to deposit the DMS Software with the
Agency for Protection of Intellectual Property Rights after Telvent satisfies all
obligations under this Agreement.

	7.9	 	Telvent in the capacity of a Shareholder of the JV Company, shall have the following
obligations in addition to any other obligations specified in this Agreement:

	 	(1)	 	Telvent shall assist the JV Company in applying to the competent authorities
for approval, registration and other matters concerning the establishment of the JV
Company;
	 
	 	(2)	 	Telvent shall assist the JV Company in purchasing equipment and materials from
overseas markets and other matters authorized by the JV Company as agreed by Telvent
and the JV Company;
	 
	 	(3)	 	Telvent shall assist the JV Company in selecting and training of technical

 

 

	 	 	 	personnel and workers of the JV Company; and
	 
	 	(4)	 	Telvent shall try its best to assist the JV Company in developing markets and
customers outside Serbia as well as exporting the products of the JV Company.
	 
	 	(5)	 	Telvent shall assist managers, employees and worker staff of the JV Company to
obtain all entry visas necessary and assist the JV Company in projects out of Serbia;

Article VIII - Offices, Equipment and Use of Intangible Assets

	8.1	 	DMS Group shall lease to the JV Company the sub-floor, ground floor, the gallery, 4th floor
and attic space with duplex for the JV Company’s offices at Sremska 4, Novi Sad, Serbia by a
lease in a form attached hereto as Schedule 13;
	 
	8.2	 	Telvent hereby grants the JV Company the license to use the trademark “Telvent” as part of
the name “Telvent DMS LLC”. However, the JV Company shall acquire no rights in the separate
“Telvent” name or trademark, and it shall not be entitled to use the Telvent name or trademark
except as part of the JV Company name. In the event of termination of this Agreement or sale
by Telvent of its Stake in the JV Company, the JV Company shall change its name to another
name which does not contain the trademark “Telvent”.

Article IX — Board

	9.1	 	The Board shall consist of 4 members, appointed in accordance with the Shareholders
Agreement.
	 
	9.2	 	The Board shall be constituted on the Effective Date in accordance with the Shareholders
Agreement and shall hold its first meeting by conference call as soon as possible but not
later than 5 days after the Effective Date.
	 
	9.3	 	The Members of the Board must act in good faith and in the best interests of the JV Company
as a whole. Subject to this duty, Member of the Boards may have regard to, and act in the
interests of, the Party that appoints them.

Article X — Operations and Management

	10.1	 	The JV Company shall establish an operation and management organization appropriate to the
size and nature of the business of the JV Company which shall be responsible for the daily
operation and management of the JV Company and which shall be headed by the Senior Management
consisting of the Chairman
and Vice-Chairman appointed in accordance with the Shareholders Agreement

 

 

	 	 	and a Chief
Financial Officer.
	 
	10.2	 	The Board shall set the performance objectives and work performance criteria for the Chairman
annually, based on the recommendations of the Chairman and the operational objectives of the
JV Company. In the event that the Chairman fails to achieve the relevant performance
objectives, either Party may request a board meeting to consider the consequences.
	 
	10.3	 	The Chairman, Vice-Chairman and Members of the Board have responsibilities and authorities as
defined in Shareholders Agreement.

Article XI — Contracts with Shareholders and Affiliated Companies

	11.1	 	Notwithstanding the other parts of this Agreement, any agreement or arrangement entered into
between the JV Company and a Party or its Affiliated Company must:

	 	(a)	 	be negotiated with the relevant Party or its Affiliated Company on commercial
and arms length terms, having regard to maintaining the operational focus and
profitability levels of the JV Company;
	 
	 	(b)	 	be approved by the Members of the Board present at a Board meeting, either in
person or by proxy in accordance with the Shareholders Agreement; and
	 
	 	(c)	 	be notified in writing by the JV Company to each Party.

Article XII — Labour Management

	12.1	 	There are two key categories of staff of the JV Company:

	 	(a)	 	Senior management — i.e. Members of the Board, the Chairman, the Vice
Chairman and the Chief Financial Officer; and
	 
	 	(b)	 	All other staff of the JV Company.

	12.2	 	The methods by which the JV Company may engage its staff include:

	 	(a)	 	Employment by the JV Company;
	 
	 	(b)	 	Engagement through a labour supply arrangement with the Faculty; and
	 
	 	(c)	 	Secondment from the Parties or their Affiliated Companies.

	12.3	 	After the establishment of the JV Company, the JV Company shall enter into individual
employment agreements or any other engagements of individuals in accordance with Serbian
legislation.
	 
	12.4	 	The compensation and standards of traveling expenses of the Members of the

 

 

	 	 	Board the Chairman
and Vice Chairman shall be decided by the Board.
	 
	12.5	 	The best of the staff of DMS Group from the research and development teams, engineering and
commercial, and all staff involved in DMS Software projects will become employees of the JV
Company on the Effective Day. All DMS Group staff remaining in DMS Group who have been engaged
in development of DMS Software will be obligated to limit their activities strictly to
completing actual DMS projects and they shall not engage in outsourcing, consultancy or other
services for other vendors (competitors of Telvent and Telvent DMS). Upon completing the DMS
projects these DMS Group employees will be transferred to the JV Company. Attached hereto as
Schedule 6 is a list of the employees of DMS Group who will be offered employment with the JV
Company. It will be a condition of Closing that the key employees of DMS Group related to DMS
Business as identified and agreed during the due diligence (the “Key Employees”) shall consent
about entering into employment agreements with the JV Company. These agreements will include
reasonably satisfactory non-compete and non-disclosure agreements and will be conditional on
the Closing being completed.
	 
	12.6	 	DMS Group will provide to Telvent for auditing purpose the list of employees of DMS Group to
be employed by the JV Company showing their salaries in the previous year as well as the
proposed salaries with the JV Company for the current year. If there is any difference in
these salary tables, DMS Group will give an explanation to Telvent.
	 
	12.7	 	For those employees of the JV Company who used to be employees of DMS Group, DMS Group shall
be responsible for terminating the previous employment relationship with those employees and
shall bear all the relevant costs, expenses or compensations for such termination of the
employment relationships. For any labor disputes relating to the labor relationship between
any of those employees and DMS Group, DMS Group shall take full responsibility and ensure that
the JV Company will not be adversely affected.
	 
	12.8	 	The employment standards, functions and term of those employees, together with their wages,
bonuses and benefits will be determined by the Chairman within the scope of the Annual Budget
for labour costs.
	 
	12.9	 	Subject to the other provisions of this Agreement, the Chairman shall have the authority to
dismiss or discharge any worker or staff in accordance with applicable employment law
principles, including any worker or staff who violates the policies and employee manual laid
down by the Board.
	 
	12.10	 	With respect to each of its employees, the JV Company shall be responsible for his/her
social insurance premiums mandated by relevant laws and regulations of Serbia (such as
pension, unemployment, medical, occupational injury, maternity and so on) during the
employment period of starting from the effective date of the

 

 

	 	 	labour contract signed by and between the JV Company and the employee of the JV Company.
	 
	12.11	 	Neither party shall, without the prior written consent of the other party, hire any person
who is an employee of the other party or of the JV Company; provided, however, that either
party may offer employment to or employ persons whose employment has been involuntarily
terminated by the other party or the JV Company.
	 
	12.12	 	The Board shall pass a Position Classification Rulebook, to encompass all working positions
in the JV Company.

Article XIII — Accounting, Auditing, Budget & R&D Plan

Accounting

	13.1	 	The JV Company, the Parties, and the staff and workers of the JV Company shall pay taxes in
accordance with all relevant laws and regulations of Republic of Serbia.
	 
	13.2	 	The accounting system of the JV Company shall be in accordance with IFRS . The accounting
system shall be formulated by the Board and filed with relevant local finance and tax laws and
regulations of Republic of Serbia, and implemented by the JV Company under direction of the
Board.
	 
	13.3	 	All financial books, statements, reports, and records of the JV Company shall be written in
Serbian and corresponding English copies shall be made and kept. All financial statements and
all other important financial and accounting documents, records and statements shall be
approved and signed in accordance with laws and regulations of Republic of Serbia
	 
	13.4	 	The accounting and fiscal year of the JV Company shall be the Gregorian calendar year and
shall run from 1 January to 31 December.
	 
	13.5	 	The book keeping base currency of the JV Company shall be RSD. All financial statements of
the JV Company shall be presented in RSD, but JV Company shall also adopt Euros as a
supplemental currency for internal presentation of certain book-keeping statements.
	 
	13.6	 	Financial reports shall be prepared in accordance with IFRS. During the first two (2) months
of each accounting and fiscal year, the Chairman shall organize and preparethe balance sheet,
profit and loss statement, profit distribution plan, and any other financial reports required
by the Board, either of the Parties or under IFRS, for the preceding year. Such financial
statements shall be sent to each Party and each Member of the Board and submitted for approval
at a meeting of the Board.

 

 

Auditing

	13.7	 	The JV Company shall engage an accounting firm certified and registered in Serbia and
confirmed by both Parties as the external auditor, to annually examine and verify the
financial and accounting matters of the JV Company in accordance with IFRS, at the cost of the
JV Company.
	 
	13.8	 	Other Auditors engaged by either Party shall be permitted to examine the financial affairs of
the JV Company for any fiscal year upon the request of either Party. The JV Company will
provide assistance and convenience for the auditors of each Party. The Party requesting such
audit shall pay the fees of such auditors, unless the examination of such auditors reveals
substantial mistake in the financial statements of the JV Company, in which case the JV
Company shall reimburse that Party of the fees of such auditors.
	 
	13.9	 	After the end of each fiscal year, the JV Company shall cause its accounts and records to be
audited by the auditor referred to in Article 13.7. The JV Company shall use its best
endeavors to ensure that such audit shall be completed no later than two (2) months after the
end of such fiscal year and copies of such audited statements together with the report of the
auditor shall be furnished to the Parties as soon as they are available but in any event no
later than ten (10) days after completion of the audit.
	 
	13.10	 	Financial activities identified being in violation of IFRS or other relevant accounting laws
and regulations during above-mentioned audit shall be corrected and handled in accordance with
relevant laws and regulations of Republic of Serbia

Annual Budget & Monthly Reporting

	13.11	 	An Annual Budget shall be prepared by the Chairman and submitted to the Board for approval
in accordance with Article 4.4 of the Shareholders Agreement at least 60 days prior to the
start of each accounting and fiscal year. The Annual Budget will take into account the R&D
Plan for that year.
	 
	 	 	Monthly management accounts, including profit and loss account, balance sheet, cash flow
statement, capital expenditure statement, sales analysis, analysis of debtors, employment
analysis, key performance indicators and financial forecast, comparison of performance to
budget and prior year shall be prepared and provided to Telvent (and to DMS Group if DMS
Group so requests) monthly by the 10th day of each month in such format as Telvent shall
require together with further information in the possession or control of the JV Company or
the Chairman regarding the financial condition and operations of the JV Company as Telvent
may request and details of any litigation commenced against the JV Company together with the
Chairman’s reasonable estimate of potential liability
thereunder.

 

 

R&D Plan

	13.12	 	The R&D Plan will be reviewed and updated by the JV Company not later then 60 days prior to
the start of each accounting and fiscal year including the specific R&D targets to be
accomplished every four months. Updates of R&D Plan will be in full accordance with and
coordinated with Telvent’s strategy for the development of the Smart Grid Solution Suite and
will include specific R&D targets to be accomplished every four months. Within 15 days after
the end of each 4 months period, the JV Company shall prepare a Progress Report describing the
progress of the development work including: (i) items completed since the last report; (ii)
actual and planned percentage of completion for each task and development project; (iii) items
to be completed in the next 4 months period.
	 
	13.13	 	Upon expiration of the period ending December 31, 2010, Telvent and DMS Group shall agree
about the way in which to provide continuous investment in development of the DMS Software.

Reserve and R&D Funds and Dividends

	13.14	 	The goal of the parties for the JV Company is to run the business during the first five (5)
years without generating higher expenses in relation to the budget approved, while accounting
book-keeping losses stated on the end of the fiscal year will not be considered as violation
of this obligation. Profits generated by the JV Company by the end of the fiscal year will be
retained in the JV Company to provide additional investment to fund R&D with respect to the
DMS Software and to strengthen the JV Company structure.
	 
	13.15	 	After the JV Company has paid income tax and made up any losses incurred in any previous
year but prior to distribution of the net profits of the JV Company to the Parties, the JV
Company shall set aside a reserve fund and the R&D fund in accordance with the stipulations of
the governing laws and regulations of the Republic of Serbia. The Board shall determine
annually, in accordance with the provisions of this Agreement, the amount of net profits to be
allocated to each of these funds.

	13.16	 	Subject to:

	 	(a)	 	Capital Contributions of the Shareholders in accordance with the provisions to
this Agreement and the Memorandum of Incorporation;
	 
	 	(b)	 	covering of the accumulated accounting losses of previous years;
	 
	 	(c)	 	payment of all income tax payable;
	 
	 	(d)	 	the allocation of funds pursuant to Article 13.15; and
	 
	 	(e)	 	repayment of due and payable equity holder’s loans which are not
subordinate to other loans borrowed by the JV Company (if any), the

 

 

	 	 	 	Board shall, and
the Parties shall procure their respective appointed Members of the Board to:
	 
	 	(i)	 	hold a Board meeting within two months of the end of the fiscal year of
the JV Company; and
	 
	 	(ii)	 	at that meeting vote in favor of and declare all of the remaining profits
to be payable as dividends to the Parties,
unless otherwise agreed by a resolution of the Board.

	 	 	Dividends shall be distributed to the Parties in proportion to their Contribution
Percentages.
	 
	13.17	 	The dividend paid to Telvent, shall be calculated in RSD and the JV Company will be
responsible for converting that dividend from RSD into foreign currency (designated by
Telvent) and remitting such dividend abroad or into the bank account designated by Telvent, in
accordance with relevant laws and regulations of the Republic of Serbia. Converting and
remitting costs will be charged to Telvent.

Article XIV — Representations and Warranties

	14.1	 	DMS Group represents and warrants to Telvent as follows (which representations and warranties
shall be true and accurate as of the Closing):
	 
	14.1.1	 	Corporate Authority, due Authorization
	 
	 	 	DMS Group represents and warrants that:

	 	(a)	 	the signing and performance of this Agreement and the other agreements and
documents to be executed and delivered by DMS Group it in connection with the
transactions contemplated hereby and thereby do not violate any laws of Serbia, or any
corporate document of DMS Group,

	(b)	 	it has taken all necessary action to authorize its entry into this Agreement and the other
agreements and documents to be executed and delivered by DMS Group it in connection with the
transactions contemplated hereby and thereby.
	 
	(c)	 	DMS Group has the power and authority to execute, deliver, and perform this Agreement and the
other agreements and instruments to be executed and delivered by DMS Group in connection with
the transactions contemplated hereby and thereby.
	 
	(d)	 	There is neither liquidation nor bankruptcy proceeding initiated or threatened to be
initiated against DMS Group on the date of Closing.
	 
	14.1.2	 	DMS Software.

 

 

DMS Group represents and warrants that:

	(a)	 	Set out in Schedule 10 (a) is a list and description of each module which forms part of the
DMS Software.
	 
	(b)	 	DMS Group owns all right, title and interest in and to the DMS Business Assets including the
DMS Software, free and clear of any and all Encumbrances.
	 
	(c)	 	There are no orders, judgments or rulings of any court, arbitrator or governmental body or
agency nor is there any action, claim, arbitration, investigation, litigation, or suit before
any court, arbitrator or governmental body or agency pending or threatened against DMS Group
with respect to the DMS Software or the rights of DMS Group therein.
	 
	(d)	 	The DMS Software does not infringe or make unlawful use of any intellectual property rights
of others.
	 
	(e)	 	To the knowledge of DMS Group, there has not been, nor is there currently, any
misappropriation or infringement by any third party of the DMS Software.
	 
	(f)	 	To the Knowledge of DMS Group, none of the employees of DMS Group who will become employees
of the JV Company are obligated under any contract (including licenses, covenants or legal
commitments of any nature) or any agreement, or subject to any Order of any Governmental
Entity, that would interfere with the use of his or her best efforts to promote the interests
of the JV Company in the operation of the JV Company’s business
as conducted on the date hereof or that would conflict with the operation of the JV Company’s business as
conducted on the date hereof (conflict of interest).
	 
	(g)	 	To the Knowledge of DMS Group, the DMS Software does not incorporate any inventions of its
employees made prior to their employment by DMS Group. Title to and ownership of any and all
rights with respect to any inventions made by DMS Group employees within the scope of such
employees’ employment relating to the DMS Software, vests in DMS Group and the rights thereto
shall be transferred to the JV Company. Except as set forth on Schedule 10 (b), all Persons
involved in the conception, making, and development of the DMS Software have entered into a
confidentiality and invention assignment agreement.
	 
	(h)	 	DMS Group has never received any written claim, demand, or notice that alleges that DMS Group
has infringed or misappropriated any intellectual property of any other Person or that seeks
to restrict in any manner the use, transfer or licensing of any of the DMS Software.
	 
	(i)	 	Schedule 10 (c) contains a complete and correct list of all licenses of any kind

 

 

	 	 	relating to
DMS Software granted by DMS Group to third parties. With respect to each license required to
be set forth on Schedule 10 such license is legal, valid, binding, and in full force and
effect. DMS Group has delivered to Telvent accurate and complete copies of all such licenses,
together with all amendments thereto.
	 
	(j)	 	The source code with respect to the DMS Software is not in the possession of any third party
and DMS Group has used commercially reasonable efforts consistent with industry standards to
maintain the confidentiality of such source code.
	 
	(k)	 	DMS Group has not granted any exclusive rights with respect to the DMS Software, except
Telvent.
	 
	(l)	 	Schedule 10(d) contains a complete and correct list of all Agreements of DMS Group with any
third party with respect to either:

	 	(i)	 	the sale or sublicensing by the third party of the DMS Software; or
	 
	 	(ii)	 	payment of commissions or fees in exchange for sales representation or agency
services with respect to the DMS Software.

	 	 	Under any Agreement listed in Schedule 10 (d), DMS Group will not sell any new license after
the Effective Date, while these agreements will be supported in term of 12 months according
to Section 5.3 and in the same term terminated.
	 
	(m)	 	no contractual rights granted by DMS Group in favor of any party to any of the DMS Software
(including rights under any escrow agreement or similar arrangements) will be triggered by the
transactions contemplated by this Agreement.
	 
	14.2	 	Telvent represents and warrants (which representations and warranties shall be true and
accurate as of the Closing) that:

	 	(a)	 	the signing and performance of this Agreement and the other agreements and
documents to be executed and delivered by Telvent in connection with the transactions
contemplated hereby and thereby does not violate any laws of Spain, or any corporate
document of Telvent; and
	 
	 	(b)	 	it has been duly authorized by its board of directors to enter into this
Agreement and the other agreements and documents to be executed and delivered by DMS
Group it in connection with the transactions contemplated hereby and thereby.
	 
	 	(c)	 	Telvent has the power and authority to execute, deliver, and perform this
Agreement and the other agreements and instruments to be executed and

 

 

	 	 	 	delivered by
Telvent in connection with the transactions contemplated hereby and thereby.
	 
	 	(d)	 	There is neither liquidation nor bankruptcy proceeding initiated or threatened
to be initiated against Telvent on the date of Closing.

Article XV — Foreign Exchange

	15.1	 	The JV Company shall maintain both RSD and foreign exchange bank accounts in Serbia in
accordance with applicable laws and regulations of Republic of Serbia. The foreign currency
earned by the JV Company shall be available in its foreign exchange bank accounts and used for
regular operation as necessary.
	 
	15.2	 	For the distribution of profit during the operation period of the JV Company in accordance
with the Section 13.16, the JV Company dividends to DMS Group shall be paid in RSD and
dividends to Telvent shall be calculated in RSD and converted to and paid in foreign currency
in accordance with the Section 13.17.
	 
	15.3	 	Parties agree that all business activities will be in accordance with accounting and other
regulations of Republic of Serbia and Telvent will not apply any internal
business regulation which could cause the JV Company to be in violation of any laws or
regulations of Republic of Serbia.

Article XVI — Insurance

	16.1	 	The JV Company shall maintain insurance coverage of the types and in the amounts proposed by
the Chairman and approved by the Board. The JV Company shall obtain insurance from insurance
companies or organizations, subject to compliance with the laws and regulations of Republic of
Serbia

Article XVII — Amendment Alteration and Discharge of Contract

	17.1	 	Amendments to this Agreement or its Annexes shall come into effect only after agreed by the
Parties in writing and then approved by the Registration Authority where required by Serbian
laws.
	 
	17.2	 	Either Party may propose to the Shareholders meeting liquidation of the JV Company upon the
occurrence of any of the following events:

	 	(a)	 	if the cumulative losses of the JV Company exceed the capital of the JV Company
(as specified in Article 5.1);
	 
	 	(b)	 	if the JV Company or either Party becomes bankrupt, or is the subject of
proceedings for liquidation, or ceases to carry on business or becomes unable to pay
its debts as they become due to the JV Company;
	 
	 	(c)	 	if all or any substantial part of the assets of the JV Company are

 

 

	 	 	 	expropriated
by any government authority;
	 
	 	(d)	 	if the other Party materially breaches this Agreement, or violates the
Memorandum of Incorporation and such breach or violation is not cured within sixty (60)
days of written notice to the breaching Party (in this case, only a non-breaching Party
shall have the right to apply for liquidation of the JV Company); or
	 
	 	(e)	 	any conditions with a material impact on the JV Company are imposed by any
government authority requiring changes to this Agreement, the Memorandum of
Incorporation and such changes are not agreed to by the Parties in writing.

	17.3	 	In the event that either Party gives notice pursuant to this Article of a desire to apply for
liquidation of the JV Company, the Parties shall, within one (1) month after issuance of such
notice, commence negotiations and endeavor to solve the problem underlying the liquidation
proposal. In the event that matters are not solved to the satisfaction of the Parties within
three (3) months after commencement of negotiations or the notified Party refuses to commence
negotiations within the period stated above, the Shareholders will at a Shareholders meeting
pass the resolution on initiation of liquidation in accordance with the Section 4.26 of
Shareholders Agreement.
	 
	17.4	 	Upon passing Resolution of liquidation of the JV Company under this Article, or under other
circumstances in which the JV Company is dissolved, liquidation of the JV Company shall be
handled in accordance with the relevant laws and regulations of Republic of Serbia and with
the provisions set forth below:

	 	(a)	 	The Liquidation Committee shall be made up of four (4) members, of whom two (2)
shall be nominated by DMS Group and appointed by the Board pursuant to the nomination
of DMS Group, and two (2) shall be nominated by Telvent and appointed by the Board
pursuant to the nomination of Telvent;
	 
	 	(b)	 	If it is necessary to appraise any of the assets to be liquidated, the
Liquidation Committee shall appoint an accounting firm registered in Serbia independent
from either Party for assets appraisal;
	 
	 	(c)	 	The remaining assets after deduction of all liquidation fees and all debts
(Liquidation surplus) shall be allocated between the Parties in accordance with the
Contribution Percentage in the JV Company; and
	 
	 	(d)	 	After the JV Company dissolves, the JV Company’s accounting books, accounting
statements, minutes and resolutions of the Board and other legal documents shall be
kept by DMS Group. Telvent shall be provided with
copies of all of the JV Company’s accounting books, accounting statements,

 

 

	 	 	 	minutes and
resolutions of the Board and other relevant documents after the conclusion of
liquidation.

Article XVIII — Limitation of Liability

	18.1	 	To the maximum extent permitted by law, no Party will be liable to the other Party for lost
profits, lost business, indirect losses, consequential damages or punitive damages for breach
of this Agreement regardless of the form of the claim.

Article XIX — Force Majeure

	19.1	 	“Force Majeure” means any event or combination of events which is the direct cause of
preventing or delaying the fulfillment by any Party of its obligations under this Agreement,
the occurrence of which is unforeseeable and beyond the control of such Party, and the
occurrence and/or direct results of which could not have been avoided by exercise of due care.
Such event or events shall include but not be limited to floods, droughts, typhoons,
earthquakes, other natural disasters, fire, war, acts of war or other hostilities, riots,
transportation accidents, delay, revocation or suspension of any governmental approval
required for the operation of the JV Company or the performance of this Agreement. However,
neither business downturn nor deteriorating economic conditions will qualify as Force Majeure
within the meaning of this Article.
	 
	19.2	 	In the event any Party is unable to fulfill any or all of its obligations under this
Agreement due to any Force Majeure, such Party shall not be considered to be in default under
this Agreement and shall continue to fulfill its other obligations hereunder which are not
affected by the Force Majeure event. The period for fulfilling the obligations affected by the
Force Majeure event shall automatically be extended without any charge or penalty, for a
period equal to the period during which the Force Majeure event continues.
	 
	19.3	 	Either Party claiming the benefits of Section 19.2 shall promptly inform the other Party of
the event causing Force Majeure, and within fifteen (15) days thereof shall provide all
relevant details and valid evidence of the occurrence and duration of such event.
	 
	19.4	 	The Party claiming Force Majeure shall use all reasonable efforts to overcome the delay
caused by the Force Majeure, in which event, the Parties shall immediately consult with each
other in order to find an equitable solution. If the occurrence or consequences of Force
Majeure results in a substantial impairment to the operation of the JV Company for a period
over of six (6) months and the Parties have not reached an equitable solution, the Party not
claiming the benefits under Section 19.2 shall be entitled to terminate this Agreement.

 

 

Article XX — Confidentiality

	20.1	 	“Confidential Information” means any information, data, and know-how (in whatever form or
format) relating to the business or technology of a Party or the JV Company, which is
disclosed to the other Party or the JV Company, including, but not limited to that which
relates to or which embodies research, product plans, products, services, customers, markets,
software, developments, inventions (whether or not patentable or registerable and including
patent applications and invention disclosures and the inventions described therein), trade
secrets, processes, process configurations, operating parameters, designs, drawings,
engineering, hardware configuration information, suppliers and source lists, material
characterization information, equipment vendors, marketing or finances that is designated as
confidential or proprietary or that, given the nature of the information or the circumstances
surrounding its disclosure, reasonably should be considered as confidential or proprietary.
	 
	20.2	 	Except as otherwise provided in any agreement between the JV Company and any Party, each
Party shall maintain the Confidential Information secret and confidential for 5 years, and
shall not disclose to any third party or person, all Confidential Information of the JV
Company and the other Party except to their respective employees, consultants, directors or
any other persons who may be aware of such Confidential Information due to their positions in
the JV Company or the Party or who need to know such Confidential Information for purpose of
performing their duties. Each Party shall take all necessary steps to prevent the disclosure
of any Confidential Information of the JV Company and the other Party to any other third
party, unless those as agreed by the Board.
	 
	20.3	 	The provisions of Section 20.2 above shall not apply to the information if:

	 	(1)	 	it could be proved by the receiving Party’s written records that the receiving
Party has been aware of such information prior to disclosure of such same information
by the disclosing Party;
	 
	 	(2)	 	it is or becomes public knowledge otherwise than through the receiving Party’s
breach of this Agreement;
	 
	 	(3)	 	it was obtained by the receiving Party from a third party having no obligation
of confidentiality with respect to such information; or
	 
	 	(4)	 	it is independently developed by the receiving Party without making reference
to the information disclosed by the disclosing Party.

	20.4	 	Each Party shall formulate rules and regulations to cause its directors, senior staff, and
other employees to comply with the confidentiality obligations set forth in this Article. All
Members of the Board, the Chairman, the Vice Chairman and
other employees of the JV Company shall be required to sign a confidentiality

 

 

	 	 	undertaking in
a form acceptable to the Parties.
	 
	20.5	 	The provisions of this Article shall remain binding upon any natural or legal person who has
been a Party to this Agreement after such person, through an assignment of registered capital
and corresponding contractual rights and obligations, ceases to be a party to this Agreement.
In addition, the rights and obligations under this Agreement shall survive the expiration or
early termination of this Agreement, and shall remain in effect notwithstanding the
dissolution of the JV Company for the period specified in Article 20.2.

Article XXI — Applicable Law

	21.1	 	The formation, validity, interpretation and performance of this Agreement, and any disputes
arising under this Agreement, shall be governed by the published and publicly available laws,
rules and regulations of Republic of Serbia.
	 
	 	 	Telvent acknowledges that Telvent DMS will operate under laws and regulations of Republic of
Serbia and will not in such activities because of internal business regulations of Telvent
violate any law or regulation of Republic of Serbia.
	 
	21.2	 	If one Party’s or the Parties’ economic benefits under this Agreement are adversely and
materially affected by the promulgation of any new laws, rules or regulations of Republic of
Serbia or the amendment or interpretation of any existing laws, rules or regulations of
Republic of Serbia after the Effective Date, the Parties shall promptly negotiate with each
other in good faith to implement any adjustments necessary to mitigate such adverse effects on
the affected Party or Parties.
	 
	21.3	 	The JV Company and the Parties, shall apply in a short term to obtain any tax, investment or
other preferential treatment that becomes available to foreign investment enterprises or
foreign investors after the signing of this Agreement.

Article XXII — Settlement of Disputes

	22.1	 	In the event that a dispute arises in connection with the interpretation or implementation of
this Agreement, the Parties shall attempt in the first instance to resolve such dispute
through friendly consultations. If the dispute is not resolved in this manner within thirty
(30) days after the commencement of dispute, then the Parties shall submit the dispute to
arbitration in accordance with the provisions of the Shareholders Agreement.
	 
	22.2	 	Such arbitration award shall be final and binding to the Parties.
	 
	22.3	 	The reasonable legal costs incurred in the arbitration advanced by the winning
Party shall be borne by the losing Party, unless otherwise determined by the

 

 

	 	 	arbitrators in
their award.
	 
	22.4	 	If either Party fails to pay or perform any arbitration award or order resulting from the
foregoing provisions when due, the other Party may apply for enforcement of such award or
order in any court having jurisdiction over the Party against which the award or order has
been rendered or having jurisdiction at the place where assets of the Party is located.
	 
	22.5	 	During the course of arbitration, this Agreement shall continue to be performed except for
the part which the Parties are disputing and which is the subject of the arbitration.

Article XXIII — Notices

	23.1	 	Official notices provided for in this Agreement shall be made in writing in English and sent
by courier service or registered mail or by facsimile with a confirmation copy sent by courier
service or registered mail. The date of receipt of a notice shall be considered the date on
signed receipt or one (1) working day after sending in the case of a facsimile, All notices
and communications shall be sent to the appropriate address set forth below, until the same is
changed by notice given in writing to the other Party.

To DMS Group:,

DMS Group d.o.o.,

Sremska 4, 21000 Novi Sad, Serbia,

Attention:Dragan Popovic

Tel: +381-21-4893-501

Fax: ÷381-21-4893-540

To Telvent:

Telvent Energia S.A., Valgrande 6,

Alcobendas (Madrid) 28108, Spain

Attention: Lidia Garcia

Fax: +34-91-714-7001

with a copy to:

Telvent Energia S.A.,

10333 Southport Road SW

Calgary, AB, Canada T2W 3X6

Attention: Cameron Demcoe

Fax: +1-403-301-5027

Article XXIV — Miscellaneous

	24.1	 	Each Party shall be responsible for its own costs and expenses incurred before

 

 

	 	 	the signing of
this agreement.
	 
	24.2	 	Failure or delay of any Party to exercise any right arising under this Agreement or under any
other agreement between the Parties related hereto shall not be considered as a waiver
thereof, nor shall any single or partial exercise of any right preclude any other future
exercise thereof.
	 
	24.3	 	In the event that any provision of this Agreement is determined to be invalid, illegal or
unenforceable, this Agreement shall be interpreted and construed as though the provision so
held to be invalid, illegal or unenforceable were deleted from this Agreement, and all other
terms and conditions of this Agreement shall remain valid and binding.
	 
	24.4	 	This Contract supersedes all prior discussions, negotiations, memoranda, and agreements
between the Parties to this Agreement with respect to the subject matter hereof.
	 
	24.5	 	The Schedules entered into in accordance with this Agreement are an integral part of this
Agreement and shall have the same binding effect as this Agreement. In case of any conflict
between the provisions of this Agreement, this Agreement shall prevail.
	 
	24.6	 	This Contract is binding upon and made for the benefit of the Parties and their respective
successors and permitted assignees.
	 
	24.7	 	Each Party is an independent contractor, and no Party shall be deemed to be the agent of any
other Party to this Agreement for any purpose whatsoever. Each Party is responsible for its
own obligations arising under this Agreement and is not liable for the other Party’s
obligations.

The Parties hereto have read, understood and accepted this Agreement, which is confirmed with their
signatures and stamps on this Agreement.

	 	 	 	 
	For: “DMS Group”, LLC Novi Sad:

	 	For: Telvent Energia S.A.	 
	 
	 	 	 
	/s/ Dragan Popovic

	 	/s/ Jesus Manuel RIos Odero	 
	 

	 	 	 
	Prof. Dr Dragan Popovic

	 	Mr. Jesus Manuel RIos Odero	 
	Chairman of the Board

	 	Authorized Personexv4w134

Exhibit 4.134

(English Translation)

First Amendment to Joint Venture Agreement

This amendment to the Joint Venture Agreement (hereinafter referred to as: “First
Amendment”) is made as of the 24th day of January, 2011,

Between:

“DMS GROUP”, LLC for power engineering Novi Sad Sremska 4, a corporation incorporated
under the laws of Serbia with registered offices at Sremska street no. 4, 21000 Novi
Sad, Serbia and tax identification number [***], Agency for Business Registries in
Belgrade, Joint Company ID no. [***], represented by the Prof. Dr. Dragan Popovic,
Personal ID: [***], Chairman of the Board (hereinafter referred to as: “DMS GROUP”).

And

Telvent Energia S.A., a Joint Company organized and existing under the laws of Spain,
with registered office at Valgrande 6, Alcobendas 28108, Madrid, Spain, with
V.A.T/Taxpayer’s Number [***], entered in the Companies’ Register of Madrid, in volume
1612 general, 1036 of section 3 of the Companies Book, sheet 1, sheet number 7367,
registration 1, represented by Mr. Victor José Hidalgo Vega, with Personal [***],
passport number: [***], by virtue of a power of attorney dated November 25, 2010
before the Notary Public Mr. Ignacio Paz-Ares Rodriguez, with protocol number [***],
(hereinafter referred to as Telvent).

Whereas:

	A.	 	DMS GROUP and Telvent (hereinafter referred to as the “Parties” jointly and a
“Party” individually) entered into a Joint Venture Agreement dated May 8, 2008
(hereinafter referred to as the “JV Agreement”) for establishing a joint company
Telvent DMS LLC for power engineering Novi Sad, with its registered seat in Novi Sad,
Sremska no. 4, and registration number 20422882 (hereinafter referred to as the “Joint
Company”);
	 
	B.	 	The Parties entered into a shareholders agreement dated May 8, 2008 (hereinafter
referred to as the: “Shareholders Agreement”) establishing rights and obligations of
the Parties with respect to the Stakes of the Joint Company owned by them, the
management and control of the Joint Company and various other matters;
	 
	C.	 	The Parties have determined the purpose and area of the Joint Company’s future
development as the further development of the Smart Grid Solution Suite in the

Page 1

 

	 	 	manner so that the Joint Company will become the world leader in the area of Smart
Grid Solutions, and, in accordance with these aims, the Parties have agreed upon
the Research and Development Plan of the Joint Company for the next 3 years
(hereinafter reffered to as the “R&D Plan”) attached hereto as Appendix 1.
	 
	 	 	At the beginning of each year, as the Executive Vice President for Smart
Grid IT, Prof. Dr. Dragan Popovic will update R&D Plan including the
defined R&D targets to be accomplished every calendar quarter, based on
changes in the Smart Grid market. Telvent management will review and
approve the revised R&D Plan. The updated R&D Plan will be in full
accordance with and coordinated with Telvent’s strategy for the
development of the Smart Grid Solution Suite and will include defined R&D
targets to be accomplished every calendar quarter.
	 
	D.	 	The Parties have agreed to complete, as a continuation of the joint venture, a
transaction described below (hereinafter referred to as the “Transaction”):
	 
	1.	 	The Parties will make additional capital contributions to the Joint Company in
accordance with Appendix 2, for a total of EUR 24,000,000.00 in accordance with the
terms and conditions of this First Amendment with each party paying its capital
contributions proportionately to its Contribution Percentage (57% in the case of
Telvent and 43% in the case of DMS GROUP after the transfer of 8% of the capital of
the Company from DMS GROUP to Telvent) (hereinafter referred to as the “Additional
Capital Contributions”) ;
	 
	2.	 	Telvent will receive 8% of the total capital of the Joint Company from DMS GROUP
(hereinafter referred to as the “Transferred 8%”) for a total purchase price
consisting of: (a) a fixed component in the amount of EUR 9,600,000.00 (hereinafter
referred to as the: “Fixed Component of the Purchase Price”); and (b) a variable
component equal to 1.5% of Qualifying Bookings from Smart Grid IT Contracts signed
within 5 years of the Closing (hereinafter referred to as the: “Variable Component of
the Purchase Price”) pursuant to and as defined in a stake transfer agreement to be
signed by the Parties on the Signature Date (hereinafter referred to as the “STA”)
thereby increasing Telvent’s Contribution percentage and stake in the Joint Company to
57% and decreasing DMS GROUP’s Contribution Percentage and stake in the Joint Company
to 43%.

The Variable Component of the Purchase Price shall be adjusted up or down to take
account of changes of orders, amendments or cancellations that change the part of the
price under each Smart Grid IT Contract for the Smart Grid software, systems and
services to be delivered by the Joint Company.

“Smart Grid IT Contracts” means a contract between Telvent, or Telvent USA

Page 2

 

Corporation or any of their respective affiliate companies (other than the Joint
Company) and a client which includes the supply of Smart Grid IT Solution Suite
systems and/or services related thereto and which is signed during the 5 year period
commencing on the Closing (the “Earn Out Period”).

“Qualifying Bookings” means that portion of the purchase price in the Smart Grid IT
Contracts payable by the client to Telvent or Telvent USA Corporation or to any of
their respective affiliate companies (other than the Joint Company) for software,
systems and/or services to be delivered by the Company under those Smart Grid IT
Contracts.

Under the STA, Telvent shall pay the Fixed Component of the Purchase Price in
the amount of EUR 9,600,000,00 to DMS GROUP, on the Closing Date.
If Telvent fails to pay the Fixed Component of the Purchase Price, and such
failure continues for 10 days, DMS GROUP shall have the right to charge
interest in the amount of 9.3% per annum, on the unpaid amount of the Fixed
Component of the Purchase Price, from the expiry of the aforementioned 10
days until the payment to the account of DMS GROUP.

If Telvent fails to pay the Variable Component of the Purchase Price, DMS
GROUP shall have the right to charge interest in the amount of 9.3% per
annum, on the unpaid amount of the Variable Component of the Purchase Price,
starting from the due date as set out in the STA until the payment to the
account of DMS GROUP.

If Telvent fails to fulfill its obligations to pay any due and undisputed
amount of the Variable Component of the Purchase Price, DMS GROUP shall be
obliged to notify Telvent in writing thereof.

If Telvent fails to pay any due and undisputed amount of the Variable
Component of the Purchase Price and if the total aggregate amount of the
unpaid Variable Component of the Purchase Price including interest is greater
than EUR 140,000.00:

	 	•	 	Telvent shall not have the right to exercise the Pledge in
accordance with the Stake Pledge Agreement
	 
	 	•	 	Telvent shall not be entitled to obtain the Mortgage
Agreement from the deposit, in accordance with the Escrow Mortgage
Agreement
	 
	 	•	 	Due dates for the Loan repayment under the Loan Agreement
shall be postponed and the interest under the Loan Agreement ceases
to accrue;

until the fulfillment of Telvent’s obligations to pay the amount
of the Variable Component of the Purchase Price

After the payment of the Fixed Component of the Purchase Price in full to DMS
GROUP, the transfer of the Transferred 8% will be registered before the BRA.

Page 3

 

	 	 	The amount of the Variable Component of the Purchase Price owing to DMS GROUP
shall be calculated and paid by Telvent within 30 days after the date Telvent
receives the first payment from the client under the Smart Grid IT Contract,
of which Telvent is obliged to notify DMS GROUP in writing. Telvent will
continue to calculate and make payments of the Variable Component of the
Purchase Price for all Smart Grid IT Contracts signed in the Earn Out Period,
until all the relevant payments payable to Telvent in respect of these Smart
Grid IT Contracts have been received by Telvent including the first payments
received after the end of the Earn Out Period.
	 
	 	 	In the event of Resignation of Prof. dr. Dragan Popovic from the Joint
Company, Telvent shall not be obliged to make any further payments for the
Variable Component of the Purchase Price for Smart Grid IT Contracts which
are signed after the date of Resignation of Prof. Dr. Dragan Popovic. Telvent
shall remain liable to DMS GROUP for any such payments for the Variable
Component of the Purchase Price due under Smart Grid IT Contracts signed
before the date of Prof. Dr. Dragan Popovic’s Resignation.
	 
	3.	 	Telvent will lend the sum of EUR 10,320,000.00 to DMS GROUP pursuant to a loan
agreement to be signed by the Parties on the Signature Date (hereinafter referred to
as the “Loan Agreement”) in order to finance the payment by DMS GROUP of DMS GROUP’s
43% share of the Additional Capital Contributions. The loan will be available to DMS
GROUP in 3 facilities, each in the amount of EUR 3,440,000.00.
	 
	 	 	On the date of signing this First Amendment, the Contribution Percentages and
Capital Contribution of the Parties in the Joint Company’s ownership
structure are as follows:

	 	(a)	 	DMS GROUP is the registered holder of a 51% stake of the total capital of
the Joint Company with Capital Contribution of EUR 6,245,000.00;
	 
	 	(b)	 	Telvent is the registered holder of a 49% stake of the total capital of
the Joint Company with Capital Contribution of EUR 6,000,000.00.

Now therefore, the Parties enter into this First Amendment and agree to amend the JV
Agreement as follows:

Definitions:

In this First Amendment, capitalized terms used but not defined herein have the
meanings set out in the JV Agreement. The following terms shall have the meanings as
set out below:

“Additional Capital Contributions” has the meaning set out in Article l.

“Asset Purchase Agreement” means the asset purchase agreement to be entered into
between DMS GROUP as the Seller and the Joint Company as the Buyer on the Signature
Date.

Page 4

 

“Cause” means any one or more of the following actions or conducts performed by Prof.
Dr. Dragan Popovic:

	(a)	 	which constitute a criminal offense from the following group of criminal offenses
determined by the Criminal Law of the Republic of Serbia:

	 	•	 	criminal offences against the commercial activity including only the
most serious forms of the following criminal offences:

	 	—	 	forging the securities
	 
	 	—	 	professional negligence at commercial work
	 
	 	—	 	causing bankruptcy
	 
	 	—	 	causing false bankruptcy
	 
	 	—	 	causing damage to creditors
	 
	 	—	 	abuse of power in commercial activities
	 
	 	—	 	disclosure of business secret

	 	•	 	criminal offences against property punishable by Criminal Law of the
Republic of Serbia for which suspended sentence cannot be imposed,

	 	 	 	under the following conditions: (i) that a final court verdict was
determined by a court of competent jurisdiction against Prof. Dr. Dragan
Popovic, due to the aforementioned offenses, and (ii) that damage has been
done to the Joint Company and the mentioned damage being an element of the
crime.

	(b)	 	actions, by Prof. Dr Dragan Popovic in carrying out his duties, or failure to take
actions, which constitute gross negligence or willful misconduct and which continue
for more than 30 days after written notice given by Telvent and result in significant
loss which materially affects the results of operation of the Joint Company (defined
in the Employment Agreement as the breaches of work duty). The significant loss shall
be confirmed by one of the Big four independent auditors (Deloitte, Pricewaterhouse
Coopers, Ernst & Young, KPMG);
	 
	(c)	 	breach of any non-competition covenant of Prof. Dr. Dragan Popovic under his
employment agreement with the Joint Company (defined in the Annex to the Employment
Agreement as the breaches of work duty) or under the JV Agreement, as determined by an
award made in arbitration proceedings in accordance with the rules and procedures set
out in the Shareholders Agreement if possible, and if not possible, as determined by a
final court verdict by a court of competent jurisdiction;

“Closing” means the completion of the actions to be done on the Closing Date and
receipt of the payment of the Fixed Component of the Purchase Price under the STA
by DMS GROUP on its bank account

“Closing Date” means the date which is 15 days after the Signature Date, or such other
date as the Parties may agree in writing on which the following actions shall be
completed:

(a) The execution and delivery by the parties to the Transaction Documents of the
Closing Documents;

Page 5

 

(b) The satisfaction or waiver of all of the closing conditions set out in the
Transaction Documents;

(c) Telvent shall give wire transfer instruction to its bank to transfer the Fixed
Component of the Purchase Price payable under the STA to the bank account specified by
DMS GROUP.

“Closing Documents” means all of the documents to be signed and/or delivered by the
parties to the Transaction Documents on the Closing in accordance with the terms of
the Transaction Documents.

Calculation of time — When calculating the period of time within which or following
which any act is to be done or step taken pursuant to this Agreement, the date which
is the reference date in calculating such period shall be excluded. The term
determined in days starts on the first day after the event from which the term is to
be counted, and ends by expiry of the last day of the term.

Term determined in weeks, months or years ends on the day that by the name and number
corresponds with term starting day, and if such a day does not exist in the last
month, term ends on the last day of that month (e.g. term of one year commencing on
January 1, 2011. will end on January 1, 2012).

If the last day of the term occurs on the day which is determined by law as
non-working day, the last day of the term is the next working day.

“Good Reason” means any of the following breaches by Telvent or any Affiliated Company
of Telvent which occurs on or after the date hereof without the consent of Prof. Dr.
Dragan Popovic:

	 	(a)	 	any material decrease in the title, responsibilities, authorities, powers or
duties of Prof. Dr. Dragan Popovic as described in Appendix 3 to this Agreement or in
the Management Agreement with Telvent or in the Employment Agreement with the Joint
Company and the Annex to that Employment Agreement that continues for more than thirty
(30) days after Prof. Dr. Dragan Popovic has given written notice to Telvent of such
decrease; or
	 
	 	(b)	 	If Telvent or any Affiliated Company of Telvent breaches any of the
Articles from the Transaction Documents relating to Prof. Dr. Dragan
Popovic’s title, responsibilities, authorities, powers or duties or breaches
its obligations to pay its Additional Capital Contributions or the
Installments of the Loan in accordance with this First Amendment, the Loan
Agreement and if such breach is not remedied within thirty (30) days after
Prof. Dr. Dragan Popovic has given written notice to Telvent of such breach.
	 
	 	(c)	 	Breach as described in Article XIII, point 13.16 of the JV Agreement, as
amended

Page 6

 

	 	(d)	 	Articles of the Reseller and Service Agreement — VAR Agreement dated May
8, 2008, and of its annexes relating to the maximum mark up on the mutually
agreed prices for Joint Company services and licenses which are contrary to
notice from Prof. Dr. Dragan Popovic that such mark-up will be in breach of
the maximum mark-up agreed to in the First Annex to the Reseller and Services
Agreement

“First Amendment to the Shareholders Agreement” has the meaning set forth in Article
11.

“Installments of Additional Capital Contributions” has the meaning set out in Article
1;

“Loan Agreement” has the meaning set forth in Recital D.3.

“Final Goal” means additional investment in the amount of EUR 24,000,000.00 into the
capital of the Joint Company (capital increase);

“Management Agreement” means the agreement entered into between Telvent and
Prof. Dr. Dragan Popovic, as a non-resident employee in the position of the Executive
Vice President for Smart Grid IT.

“Mortgage Agreement” has the meaning set forth in Article 8(b).

“Payment” means the date when the Party or the Joint Company which shall receive the
payment receives the amount of such payment on its bank account;

“Pledge Agreement” has the meaning set forth in Article 8(a).

“Resignation” means the voluntary and unilateral termination by Prof. Dr. Dragan
Popovic of his Employment Agreement with the Joint Company but does not include
situations of termination due to illness or injury of Prof. Dr. Dragan Popovic, or
resignation for Good Reason.

“Second Amendment to the Foundation Agreement” has the meaning set forth in Article 10.

“Signature Date” means the date on which the Transaction Documents are signed and
confirmed by the parties thereto as complete for the Closing.

“Smart Grid IT Solution Suite” means an integrated solution for the electrical
utility/industry covering Smart operations including one or more of the following
components: DMS, EMS, Energy Market, Electrical SCADA, OMS, MDM, Integration Bus etc.
in an open and highly integrated environment.

“Transaction Documents” in addition to this First Amendment includes the following
documents:

	 	•	 	The STA;

Page 7

 

	 	•	 	The Second Amendment to the Foundation Agreement;
	 
	 	•	 	The First Amendment to the Shareholders Agreement;
	 
	 	•	 	The Loan Agreement;
	 
	 	•	 	The Pledge Agreement;
	 
	 	•	 	The Asset Purchase Agreement
	 
	 	•	 	The EMS Licensee Agreement between the Joint Company and DMS GROUP
	 
	 	•	 	The Annex to the Employment Agreement entered into between the Joint
Company and Prof. Dr. Dragan Popovic
	 
	 	•	 	Management Agreement
	 
	 	•	 	The Annex to the Reseller and Service Agreement between Telvent Sweden
and the Joint Company —VAR Agreement.
	 
	 	•	 	The Value Added Reseller Agreement between Tevent Sweden and the
Joint Company as the VAR (new VAR Agreement)
	 
	 	•	 	Lease Agreement to be executed between the Joint Company as lessee and
DMS GROUP as lessor on the date of signing of this First Amendment.
	 
	 	•	 	Inter-company agreement between the Joint Company and DMS GROUP for
1.5% that the Joint Company should pay to DMS GROUP

The following appendices are attached to and form part of this First Amendment:

Appendix 1 — R&D Plan

Appendix 2 — Installments of Additonal Capital Contributions

Appendix 3 — Job Description and Responsibilities  — Executive Vice President for Smart Grid IT

Appendix 4 — Form of the Mortgage Agreement;

Appendix 5 — The Escrow Mortgage Agreement

Appendix 6 — The Lease Agreement

Appendix 7 — The list of the employees

	 	1.	 	Telvent and DMS GROUP shall pay the Additional Capital Contributions to
increase the registered monetary capital of the Joint Company in the amount of
EUR 24,000,000.00, as follows, with each party paying its Capital Contributions
proportionately to its Contribution Percentage after the transfer of the
Transferred 8% of capital (Telvent 57%, DMS GROUP 43%):

Telvent shall make the payment in the amount of EUR 13,680,000.00 and DMS GROUP EUR
10,320,000.00 in installments (hereinafter referred to as “Installments of Additional
Capital Contributions”) as shown in Appendix 2 attached hereto.

The Parties shall make sure that the Joint Company bears the costs of the currency
differences, if any, arising out of the conversion from EUR into dinars of the amounts
of the Additional Capital Contributions made by DMS GROUP and Telvent.

Page 8

 

The Additional Capital Contributions will be used solely to fund the three year
research and development plan — R&D Plan for the years 2011-2013 attached hereto as
Appendix 1.

	2.	 	The total basic capital of the Joint Company after the completion of the
Transaction shall amount to EUR 36,245,000.00. The stakes (Contribution Percentages)
and Capital Contributions of each Party to the Joint Company’s basic capital shall be
as follows:

	 	(a)	 	DMS GROUP will have a 43% stake of the total capital of the Joint
Company, which consists of the registered and entered non-monetary capital
in rights and equipment in the amount of EUR 5,265,350.00 and registered and
entered monetary capital in the amount of EUR 10,320,000.00; and
	 
	 	(b)	 	Telvent will have a 57% stake of the total capital of the Joint
Company, which consists of the registered and entered non-monetary capital in
rights and equipment in the amount of EUR 2,844,650.00 and the registered and
entered monetary capital in the amount of EUR 17,815,000.00.

	 	 	The Parties agree that the minimal value of the Joint Company shall be
EUR 120,000,000.00 i.e. minimally EUR 1,200,000.00 for 1% in all cases
except:

	 	(i)	 	If the employment of Prof. Dr. Dragan Popovic is terminated by
Resignation or for Cause, in which case Article 11 of the Shareholder
Agreement, as amended, shall apply;
	 
	 	(ii)	 	If Article 7.1 (b) (i) of the Shareholder Agreement applies in which
case the minimal value of the Joint Company shall be 50% of the agreed
value from the first paragraph above or the value determined by the
Valuator in accordance with Article 11 of the Shareholder Agreement,
whichever is greater;
	 
	 	(iii)	 	If Article 8 of the Shareholder Agreement as amended applies.

	3.	 	The obligations of DMS GROUP and Telvent to make their share of the Additional
Capital Contributions related to the capital increase and the obligations of Telvent
to advance the Installments of the Loan to DMS GROUP are complementary and
simultaneous, in terms and amounts that are prescribed by this First Amendment.
	 
	 	 	The increase of capital shall be made on the basis of 12 special
amendments to the Foundation Agreement (on increase of capital) which the
Parties, as the shareholders of the Joint Company, will sign and verify
prior to payment of each Installment of Additional Capital Contribution,
in accordance with the Appendix 2 to this First Amendment. Each amendment
will increase the capital of the Joint Company by the agreed amount, and
will be registered before the Business Registers Agency within 15 days
from the date of signing the amendment and receiving the entire agreed

Page 9

 

	 	 	amount into the account of the Joint Company.
	 
	 	 	Payment of all Installments of Additional Capital Contribution of DMS
GROUP shall be conditional upon Telvent advancing the corresponding amount
of Installment of the Loan to DMS GROUP pursuant to the Loan Agreement.
Both Parties shall act in good faith and shall not do anything or refrain
from doing anything which would cause any condition precedent to the
advance of funds under the Loan Agreement to not be satisfied.

4.     The Parties agree with the following:

1) If DMS GROUP decides not to receive one or more Installments of the Loan, it
shall send a written notice to Telvent at least 30 days prior to the date for
the advance of the Installment (hereinafter referred to as
“Notice”), but it
shall pay the Installment of the Additional Capital Contribution from its own
financial resources.

Upon Telvent receiving the Notice from DMS GROUP, Telvent shall not advance the
Installment of the Loan set out in the Notice.

After receiving the Notice, Telvent is not obliged to pay the Installment of the
Loan to DMS GROUP, but it is obliged to pay the Installment of its Additional
Capital Contribution payable on the date that the advance of that installment of
the Loan would have been made, and the same shall not represent breaches of
Telvent`s or DMS GROUP’s obligations, and Article V point 5.13 of the JV
Agreement shall not apply.

In this case, Telvent and DMS GROUP shall execute an Annex to the Loan Agreement
in order to submit the Annex to National Bank of Serbia within 10 days.

2) If DMS GROUP decides not to receive the Installment of the Loan and not to
pay its Installment of the Additional Capital Contribution, due to market
conditions, it shall send a written notice to Telvent asking for consent of
Telvent at least 30 days prior to the date for the advance of the Installment of
the Loan and payment of the Installment of Additional Capital Contribution.

Upon giving the consent, Telvent shall not advance the said installment of the
Loan to DMS GROUP, and neither Party shall be obliged to pay its corresponding
installment of the Additional Capital Contribution payable on the date that the
advance of that installment of the Loan would have been made, and the same shall
not represent breaches of Telvent`s or DMS GROUP’s obligations, and Article V
point 5.13 of the JV Agreement shall not apply.

In this case, Telvent and DMS GROUP shall execute an Annex to the Loan Agreement
in order to submit the Annex to the Loan Agreement to National Bank of Serbia
within 10 days.

3) If Telvent decides not to release an Installment of the Loan or not to pay
its

Page 10

 

Installment of the Additional Capital Contribution, due to market
conditions, it shall send a written notice to DMS GROUP asking for consent of
DMS GROUP at least 30 days prior to the date for the advance of the Installment
of the Loan and payment of the Installment of Additional Capital Contribution.

Upon receiving the consent, Telvent shall not advance the said installment of
the Loan to DMS GROUP, and neither Party shall be obliged to pay its
corresponding installment of the Additional Capital Contribution payable on the
date that the advance of that installment of the Loan would have been made, and
the same shall not represent a breaches of Telvent`s or DMS GROUP’s obligations,
and Article V point 5.13 of the JV Agreement shall not apply.

In this case, Telvent and DMS GROUP shall execute an Annex to the Loan Agreement
in order to submit the Annex to the Loan Agreement to National Bank of Serbia
within 10 days.

If Telvent does not get consent from DMS GROUP, Telvent shall have the
obligation to advance that Installment of the Loan to DMS GROUP and to pay its
Installment of the Additional Capital Contribution.

	5.	 	In addition to the transfer of 8% of the total capital of the Joint Company to
Telvent, the Parties agree on the following:

(a) Transfer of the Transferred 8% stake to Telvent shall not affect the
decision making process in the Joint Company and shall be in accordance
with Article 4 of the Shareholders Agreement as amended by the First
Amendment to the Shareholders Agreement.

The Board of the Company shall consist of four (4) Members of the Board,
two of whom shall be nominees of DMS GROUP Shareholder and two of whom
shall be nominees of Telvent Shareholder. The Board will have a Chairman
and a Vice-Chairman. Except as otherwise stated in the JV Agreement, this
First Amendment, the Shareholder Agreement and the First Amendment to the
Shareholder Agreement, DMS GROUP shall appoint the Chairman and Telvent
shall appoint the Vice-Chairman of the Board. The Chairman and the
Vice-Chairman cannot be from the same Shareholder of the Company. In the
event that the office of any Member of the Board becomes vacant for any
reason, the Party who appointed such Member of the Board shall appoint a
replacement. Any Party may at any time require that a Member of the Board
appointed by that Party vacates his/her office, and nominate a
replacement. Any Party replacing or appointing a Member of the Board shall
notify without delay the other Party in written form on such replacement
or appointment but without being obligated to obtain a prior consent from
the other Party to perform such action.

Except for the cases described in clause 5(n) 1), Prof. Dr. Dragan Popovic
shall remain the Chairman of the Board and will have the Casting Vote in
accordance with the First Amendment to the Shareholders Agreement.

Page 11

 

Except for Prof. Dr. Dragan Popovic, the Chairman shall be elected by
majority voting of the Board. In case of a tie vote, the election will be
determined by a Casting Vote. Upon election of the Chairman, the Chairman
automatically obtains the Casting Vote. For replacement of the Chairman, a
resolution of the Board has to be adopted by at least 3 of the 4 Members
of the Board.

The Vice-Chairman of the Board is elected in the same manner, but he must
be one of the nominees of other Shareholder.

(b) Except for the cases described in clause 5(n) 1), as long as Prof.
Dr. Dragan Popovic is employed with the Joint Company as the Executive
Director/CEO (or senior executive position) he will be the Chairman of the
Board of the Joint Company and will have the Casting Vote.

(c) In case the employment of Prof. Dr. Dragan Popovic is terminated due
to Resignation or Cause, Telvent as the majority owner will choose the new
Chairman of the Board.

(d) Except for the cases described in clause 5(n) 1), in case Prof. Dr.
Dragan Popovic is planning to resign from the position of the Executive
Director/CEO (or other senior executive position) of the Joint Company due
to the illness or injury or because of resignation for Good Reason, he
will be entitled to appoint a replacement to the position of the Executive
Director/CEO (hereinafter referred to as the “CEO
Replacement”), and the
appointment of such a person to that position will be confirmed by the
declarative resolution of the Board reached at the session where Prof. Dr.
Dragan Popovic as the Chairman will have the Casting Vote.

(e) Except for the cases described in clause 5(n) 1), Prof. Dr Dragan
Popovic is entitled to name a person, in a sealed envelope with his own
notarized signature, to be his replacement to the position of the
Executive Director/CEO (hereinafter referred to as the “CEO Replacement”)
in the event of his death or permanent incapacity.

In case of death or permanent incapacity occurred during his employment
relationship or conducting business for the Joint Company or Telvent, the
appointment of such a person to the position of the Executive Director/CEO
will be only confirmed by the declarative resolution of the Board reached
at the session on which this envelope will be opened and where a temporary
representative of DMS GROUP shall be present and shall have the Casting
Vote with respect to the declarative resolution stated above.

(f) Except for the cases described in clause 5(n) 1), in case that,
after 5 years as of the Closing, Prof. Dr. Dragan Popovic intends to
resign from the position of the Executive Director/CEO (or other senior
executive position) in the Joint Company, he will be entitled to appoint
the replacement to the position of the Executive

Page 12

 

Director/CEO (hereinafter
referred to as the “CEO Replacement”), and appointment of such a person to
that position will be confirmed by a resolution of the Board reached at
the session where Prof. Dr. Dragan Popovic as the Chairman will have the
Casting Vote.

(g) The CEO Replacement should have at least the following minimum
qualifications:

	 	•	 	5 years experience as a first level executive of the
company;
	 
	 	•	 	MBA or master degree;
	 
	 	•	 	English spoken.

(h) The CEO Replacement shall be the new Chairman of the Board
and shall have a Casting Vote as long as the Joint Company achieves the
budgets and cash flow targets established by the Board. If the CEO
Replacement does not achieve the budgets and cash flow targets established
by the Board on his quarterly reports to the Board, then DMS GROUP’s right
to Casting Vote as defined in Article 4 point 4.2 of the Shareholders
Agreement shall be temporarily suspended in accordance with the procedure
prescribed by article 5, point 5.13 (d) of the JV Agreement as amended,
until the CEO Replacement remedies the abovementioned breaches.

(i) After the CEO Replacement has been selected, he shall automatically
take over the right to the Casting Vote.

(j) Prof. Dr. Dragan Popovic shall still remain the Chairman of the Board
of the Joint Company with the authorization to reach the decisions
regarding the daily business in the Joint Company in accordance with the
Shareholders Agreement, including, but not limited to Article 4 points
4.9, 4.25 and 4.26.

For the purpose of avoidance of the doubt, Telvent agrees that, in
accordance with the income and expenses and annual budget, Prof. Dr. Dragan
Popovic has the following authorizations in the Joint Company:

1) For a period of 2 years after the Closing, simultaneously engage not more
than 4 smaller companies at the same time, and not more than 40 people per
year in total on a temporary basis only from those companies, as
subcontractors. Smaller companies mean companies with an annual turnover of
up to EUR 20 million.

After 2 years from the Closing, Prof. Dr. Dragan Popovic will be authorized
to simultaneously engage not more than 3 smaller companies at the same time,
and not more than 20 people per year from each of those companies on a
temporary basis only, as subcontractors.

The Joint Company will have to provide evidence that the required resources
are not available in the Joint Company or another Telvent company and will
provide satisfactory evidence of the work executed by the Subcontractor. The
Joint Company

Page 13

 

shall also require each subcontractor to sign an agreement in
which the subcontractor agrees to maintain the confidentiality of all
confidential information of the Joint Company, and agrees that all work
products and developments made, developed or created by the subcontractor and
its employees and subcontractors for the Joint Company are the sole and
exclusive property of the Joint Company. For engaging companies which are
not in accordance with the aforementioned, a written consent from Telvent
Management shall be required;

This will not include persons that are engaged directly from the faculty and
institutes in the Republic of Serbia or indirectly through agencies, and
there will be no restrictictions for their engagement.

2) Engage experts and consultants from Smart Grid field;

3) Reach decisions on contracts for renting business premises, purchasing
equipment, etc. provided that the amount of the rent is in accordance with
the then current market rents.

(k) Prof. Dr. Dragan Popovic will also be a Vice President of Telvent Energy
 — Executive Vice President for Smart Grid IT with the job description,
authority and responsibilities as described in Appendix no 3 which forms a
part of this First Amendment. This will be confirmed in an employment
agreement between Prof. Dr Dragan Popovic and the Telvent company, including
the Joint Company, which will be the employer.

For performing the duties of the Executive Vice President for Smart Grod IT,
Prof. Dr. Dragan Popovic shall have a gross remuneration in the amount of
U.S. $150,000.00 per year, if he continues to reside in Serbia and receives
this remuneration in Serbia.

If Telvent requests that Prof. Dr. Dragan Popovic reside or become a
permanent resident of the USA or of some other country outside of Serbia,
there will be a new arrangement for his salary.

(l) The Parties agree that for the replacement of Prof. Dr. Dragan Popovic
from the position of the Chairman of the Board of Directors in the Joint
Company, as well as for the termination of the Employment Agreement of
Prof. Dr. Dragan Popovic employed as the Executive Director/CEO (or other
senior executive position) the Resolution of the Board is needed and that
Resolution has to be adopted by at least 3 of the 4 Members of the Board.
It shall be a necessary precondition to any termination for Cause of Prof.
Dr. Dragan Popovic’s appointment as the Chairman of the Board and as the
Executive Director/CEO of the Joint Company, that the Board of Directors
of the Joint Company pass a resolution confirming that Cause

Page 14

 

exists and
approving the termination. This resolution must be approved by at least 3
of the 4 Members of the Board of the Joint Company. If the Board does not
pass a resolution approved by at least 3 of the 4 Members of the Board
confirming that Cause exists and approving the termination, Prof. Dr.
Dragan Popovic shall continue as the Chairman of the Board and the
Executive Director/CEO.

     (m) Resignation for Good Reason.

	 	 	1) In the event that there is an arbitration award or final court judgment
confirming that there were breaches defined as Good Reason, Prof. Dragan
Popovich is entitled to resign for Good Reason by giving a 15 days written
notice of termination of his employment with the Joint Company as the Chairman
of the Board and Executive Director/CEO or as the Executive Vice President for
Smart Grid IT, or both, depending on which rights of Prof. Dr Dragan Popovic
were breached (which includes also a termination of his employment agreement as
the Executive Director/CEO or his Management Agreement for the position of the
Executive Vice President for Smart Grid IT or both, as the case may be ) and the
following shall apply:

	 	1.1)	 	Prof. Dragan Popovich shall be entitled to receive a severance
payment in the amount of U.S. $300,000.00 in full settlement of all claims
by Prof. Dr. Dragan Popovic against the Joint Company and Telvent, under
both the Employment Agreement with the Joint Company and/or the Management
Agreement with Telvent.
	 
	 	1.2)	 	The Mortgage Agreement will not be released from the escrow
established by the Mortgage Escrow Agreement and the Mortgage Agreement
shall not be enforceable.
	 
	 	1.3)	 	In the event that either party becomes entitled to purchase the
remaining stake of the other party in the Joint Company under the
provisions of Article 9 of the Shareholders Agreement as amended by the
First Amendment to the Shareholders Agreement:
	 
	 	a)	 	the price for a party’s remaining stake shall be a minimum price of EUR
1,200,000.00 for a 1% stake of the Joint Company as the basis for calculation
for the purposes of the said Article 9; and
	 
	 	b)	 	the provisions of point 9.10 (b) of the First Amendment to the Shareholder
Agreement regarding escrow of 50% of the amount payable to DMS GROUP shall
not apply and in the event that the funds were paid into escrow, those funds
shall be immediately paid to DMS GROUP by the Escrow Agent.
	 
	 	1.4)	 	Prof. Dr. Dragan Popovich will not be bound by the Non-competition
covenants in the Employment Agreement with the Joint Company and/or
Management Agreement with Telvent only in the event that prof. Dr. Dragan
Popovic resigns from both positions, i.e. from the position of the
Executive 

Page 15

 

	 	 	 	Director/CEO and the Chairman of the Board and the positon of
the Executive Vice President for Smart Grid IT.

2) In the event that the arbitration award or final court judgment dismisses
the claim that there was a breach which constitutes Good Reason Prof. Dr. Dragan
Popovic will continue to work in the same working position in Telvent and in the
Joint Company without any consequence.

3) Prof. Dr. Dragan Popovic is entitled to resign from his employment with
Telvent and/or with the Joint Company, in any case after the 5 years from the
Closing, without Good Reason, and the aforementioned provision from the clause
(m) 1.3) a) and b) shall apply.

4) Except of the aforementioned, Prof. Dr. Dragan Popovic is entitled to resign
from his position of Executive Vice President for Smart Grid IT with Telvent at
any time, if both Parties agree that the goals of establishing the North
American effective sales network and the North American project delivery network
are achieved, and it will not, in any way, affect his rights and
responsibilities as the Chairman of the Board and the Executive Director/CEO of
the Joint Company, nor will it have any negative consequences for DMS GROUP.

(n) Non-Transferability of Certain Rights of DMS Group

1) Notwithstanding anything else in this Agreement, in the event that DMS Group
sells or transfers its stake in the Joint Company to a third party in whole or in
part (other than to a Permitted Transferee as defined in the Shareholders
Agreement) or in case of change in the ownership structure of DMS GROUP after which
Prof. Dr. Dragan Popovic and/or Mr. Laslo Tipura or their heirs do not continue to
Control DMS GROUP. (“Control” means the ownership, directly or indirectly, of at
least 51% of the voting rights of DMS GROUP) the following provisions of this
Agreement are non-transferable and will not apply in favor of the third party:

	 	(i)	 	the right of DMS GROUP to appoint the Chairman of the Board; and
	 
	 	(ii)	 	the right of DMS GROUP and Prof. Dr. Dragan Popovic to nominate a
replacement Executive Director/CEO and Chairman of the Board;

and in this case the Chairman of the Board shall be elected by the Shareholder(s)
holding a majority of the Stakes in the Joint Company.

2) In the event that Telvent sells or transfers its stake in the Joint Company in
whole or in part to a third party, the right of DMS Group to appoint the Chairman of
the Board and the right of DMS Group and Prof. Dr. Dragan Popovich to nominate a
replacement Chairman of the Board and the Executive Director/CEO will continue to
apply in accordance with the JV Agreement as amended and the Shareholder Agreement as
amended.

6. Buy Back Right on Acquisition by Third Party of 89% or more of the Shares of
Telvent GIT, S.A.

Page 16

 

	(a)	 	In the event that 89% or more of the shares of Telvent GIT S.A. are
acquired by one entity other than Abengoa S.A. or an entity controlled by
Abengoa S.A. within a period of five years from the Closing, Telvent agrees
that DMS GROUP shall have the option to buy back the 8% of the total
capital, at the purchase price of EUR 9,600,000.00, which is equivalent to
the Fixed Component of the Purchase Price paid to DMS GROUP by Telvent under
the STA (hereinafter referred to as “Buy Back Payment”) plus taxes and all
costs related to the exercise of the Buy Back Right by DMS GROUP. The Buy
Back Payment shall be increased annually according to the 30- day Euribor
rate of interest of the European Central Bank;
	 
	(b)	 	If DMS GROUP decides to exercise its Right to Buy Back the 8% of the
total capital of the Joint Company, DMS GROUP shall deliver a notice in
writing to Telvent inviting Telvent to execute a stake transfer agreement and
an amendment to the Foundation Agreement (hereinafter referred to as the “Buy
Back Notice”). Together with the Buy Back Notice, DMS GROUP will deliver the
forms of the stake transfer agreement and the amendment to the Foundation
Agreement. Telvent is obliged to inform DMS GROUP in writing on the date of
executing the stake transfer agreement and the amendment to the Foundation
Agreement and certify the same within 30 days at the latest from the day of
receiving the Buy Back Notice in order to enable DMS GROUP to implement the
changes with respect to the stake before the Business Register Agency.
	 
	(c)	 	The payment term for this buy-back payment shall be 5 years at an annual
interest rate of 5%. DMS GROUP shall have a grace period of 1 year and
thereafter will pay the purchase price in 16 quarterly payments starting
after the grace period. The grace period shall commence on the day of
execution of the stake transfer agreement and amendment to the Foundation
Agreement. In case Telvent fails to execute these documents, grace period
starts from the date of entry of buy-back into the Book of stakes (51% DMS
GROUP). DMS GROUP shall pay the interest calculated during the Grace Period
on the last business day of the Grace Period.
	 
	(d)	 	If Telvent fails to execute either the stake transfer agreement for the 8%
of the total capital of the Joint Company and/or the amendment to the Foundation
Agreement within 30 days from receiving the Buy Back Notice, the Joint Company
is authorized to enter the transfer of this 8% of the total capital of the Joint
Company in the Book of stakes in favor of DMS GROUP, on the first day of expiry
of the set term of 30 days, and the provisions of Article 4 points 4.4, second
paragraph and 4.26 of the Shareholders Agreement shall be suspended until
Telvent has executed both the stake transfer agreement and the amendment to the
Foundation Agreement.
	 
	 	 	The Parties agree that for 30 days following the suspension of Article
4 points 4.4 second paragraph and 4.26, the Board and the Joint
Company shall not reach any decisions nor take any actions on the
basis of the suspension.
	 
	 	 	After 30 days following the suspension of Article 4 point 4.4 second paragraph

Page 17

 

	 	 	 	and 4.26, but for no more than 90 days following the
suspension of Article 4 points 4.4 second paragraph and 4.26, the
Board and the Joint Company may reach decisions and/or take actions
only under Article 4 point 4.26 (e) and (f) without prior written
consent of all Shareholders of the Joint Company until Telvent has
executed both the stake transfer agreement and the amendment to the
Foundation Agreement.
	 
	 	 	 	After 90 days following the suspension, the Board and Joint Company
may reach decisions and/or take any actions under Article 4 points 4.4
second paragraph and 4.26 on the basis of the suspension until
Telvent executes the stake transfer agreement and the amendment to
Foundation Agreement.
	 
	 	(e)	 	If DMS GROUP fails to pay to Telvent the amounts due under the buy-back
right for 8% of the total capital and such failure continues for 30 days,
Telvent shall send to DMS GROUP a written notice of breach and if such breach
continues in the following 30 days after receipt of such Notice then DMS GROUP’s
right to Casting Vote as defined in Article 4 point 4.2 of the Shareholders
Agreement shall be suspended until DMS GROUP remedies the breach.
	 
	 	 	 	The Parties agree that for 60 days following the suspension of Article
4 point 4.2, the Board shall not reach any decisions on the basis of
the suspension. After 60 days following the suspension of Article 4
point 4.2, the Board may reach all decisions on the basis of the
suspension until DMS GROUP remedies the breach.
	 
	 	(f)	 	Telvent and DMS GROUP by mutual consent agree that DMS GROUP has the right
to buy back and suspend Article 4 points 4.4 second paragraph and 4.26 of the
Shareholders Agreement in all cases set out in Articles 6 and 9 and in point
18.2. of this First Amendment.
	 
	 	(g)	 	In the event either party sells its stake in the Joint Company (other than
to a Permitted Transferee as defined in the Shareholders Agreement) the above
Article 6 points (a), (b), (c), (d) and (e) are non-transferable and will not
apply in favor of the third party.

All other articles of this First Amendment shall remain in force.     

	7.	 	Telvent will lend the sum of EUR 10,320,000.00 to DMS GROUP in accordance with the
terms and conditions of the Loan Agreement in order to finance the payment by DMS
GROUP of DMS GROUP’s 43% share of the Additional Capital Contributions after the
transfer of the 8% of capital and payment of the Fixed Component of the Purchase Price
for the Transferred 8% to DMS GROUP.

	 	 	 	The Loan will be extended to DMS GROUP in 3 facilities, each in the amount
of EUR 3,440,000.00.
	 
	 	 	 	Each of the facilities shall be advanced as shown in Appendix 1 of the
Loan Agreement (hereinafter referred to as “Installment of
the Loan”) ;

	8.	 	DMS GROUP’s obligations to pay the amounts payable under the Loan Agreement will

Page 18

 

	 	 	be secured by following:

	(a)	 	A pledge agreement to be signed by the Parties on the Signature Date
(hereinafter referred to as the: “Pledge Agreement”) under which DMS GROUP will
establish a pledge to Telvent over a part of its stake in the Joint Company equal
to 15% of the total capital of the Joint Company for the purpose of securing the
amounts payable under the Loan Agreement and up to the the maximum amount of     the
Secured Obligations of EUR 18,000,000.00.
	 
	 	 	The Pledge shall not be enforceable if Telvent:

	 	(i)	 	fails to pay any due and undisputed amount of the Variable
Component of the Purchase Price, which, including interest, exceeds
the aggregate amount of EUR 140,000.00
	 
	 	(ii)	 	breaches its obligation to vote to adopt the Resolution of the
Shareholders to pay out the minimal amount of dividends in accordance
with Article 13, point 13.16 of the JV Agreement as amended.

	(b)	 	A mortgage agreement to be signed by the Parties (hereinafter referred to as
the “Mortgage Agreement”) and be deposited in accordance with the Escrow Mortgage
Agreement, under which DMS GROUP will grant a mortgage to Telvent on the building
in Novi Sad in DMS GROUP’s possession (basement + ground floor + gallery + I, II,
III and IV floor) in Narodnog Fronta Street 25A, 25B, 25C, 25D, built on the parcel
no. 3928/41 C.M. Novi Sad II, on behalf of Telvent, for the purpose of securing
the amounts payable under the Loan Agreement.

The Mortgage Agreement shall be signed by the Parties and certified before the court
within 90 days from the day of inscription of the DMS GROUP’s ownership right over the
Real Property before the Unified Cadastre Registry.

The Mortgage shall be enforceable only in the case that the following 4 listed
conditions are met and fullfiled cumulatively:

	 	1)	 	Telvent is not in breach of its obligations to pay any due and undisputed
amount of Variable Component of the Purchase Price in accordance with the STA of
which breach Telvent has been notified in writing,
	 
	 	2)	 	Telvent is not in breach of its obligation to vote to adopt the Resolution of
the Shareholders to pay out the minimal amount of dividends in accordance with
Article 13, point 13.16 of the JV Agreement as amended,
	 
	 	3)	 	the employment of Prof. Dr. Dragan Popovic in the Joint Company is terminated
by reason of Resignation or termination for Cause before the repayment of the
Loan in full,
	 
	 	4)	 	the money from the escrow account (if any) and the part of DMS GROUP’s stake
which is pledged to Telvent under the Pledge Agreement is not enough to pay out
the amount owing under the Loan Agreement.

Page 19

 

	9.	 	Buy Back Right

	 	(a)	 	If Telvent fails to pay any Installment of its Additional Capital Contributions
under this First Amendment or fails to release any Installment of the Loan of any of the
Facilities in accordance with the Loan Agreement, and if such failure to pay continues
for a period of 30 days, then DMS GROUP may give a Notice in writing to Telvent
(hereinafter referred to as “Notice of Breach”) If the failure continues for a further
30 days after receipt of such Notice, DMS GROUP shall be entitled to buy back the 8% of
the total capital of the Joint Company at the purchase price of EUR 9,600,000.00, which
is equivalent to the Fixed Component of the Purchase Price paid to DMS GROUP by Telvent
under the STA.
	 
	 	(b)	 	If DMS GROUP decides to exercise the option to buy back the 8% of the total capital
of the Joint Company, DMS GROUP shall deliver a notice in writing to Telvent inviting
Telvent to execute a stake transfer agreement and an amendment to the Foundation
Agreement (hereinafter referred to as the: “Buy Back Notice”). Together with the Buy
Back Notice, DMS GROUP will deliver the forms of the stake transfer agreement and the
amendment to the Foundation Agreement.
	 
	 	(c)	 	Telvent shall be obliged to execute the stake transfer agreement and the amendment
to the Foundation Agreement required for registration of 8% of total capital of the
Joint Company before the Business Register Agency within 8 days from receiving the Buy
Back Notice.
	 
	 	 	 	The payment term for this Buy Back Payment shall be 5 years at annual
interest rate of 5%. DMS GROUP shall have a grace period of 1 year and
thereafter will pay the Buy Back Payment in 16 quarterly installments
starting from the end of grace period. The grace period shall commence on
the day of execution of the stake transfer agreement and amendment to the
Foundation Agreement. In case Telvent fails to execute these documents,
grace period starts from the date of entry of buy-back into the Book of
stakes (51% DMS GROUP). DMS GROUP shall pay the interest calculated
during the Grace Period on the last business day of the Grace Period.
	 
	 	(d)	 	If Telvent fails to execute the stake transfer agreement for the 8% of the total
capital in the Joint Company and/or the amendment to the Foundation Agreement thereto
within 8 days from receiving the Buy Back Notice, the Joint Company is authorized to
enter the transfer of the 8% of the total capital in the Book of stakes in favor of DMS
GROUP (51% DMS GROUP) and:

	 	(i)	 	the annual interest rate under the Loan Agreement shall decrease to 7%
per annum, starting from the expiry of 10 days from the date that the
advance of the Installment of the Loan should have been made and/or the
date that the Installment of Additional Capital Contribution should

Page 20

 

	 	 	 	have been paid; and
	 
	 	(ii)	 	the provisions of article 4 points 4.4 second paragraph and 4.26 of
the Shareholders Agreement shall be suspended;

	 	 	 	until Telvent has executed both the stake transfer agreement and the
amendment to the Foundation Agreement.
	 
	 	(e)	 	In case DMS GROUP has exercised its Buy Back Right on the basis of any ground, and
Telvent breaches its obligations from this First Amendment regarding the obligations to
pay the Installments of Additional Capital Contribution, and/or Installment of the Loan,
and its obligation to execute a stake transfer agreeement of 8% of the total capital and
an amendment to the Foundation Agreement upon the buy-back, then until Telvent remedies
all the breaches, the annual interest rate under the Loan Agreement shall decrease to 7%
per annum, starting from the expiry of 10 days from the date that the advance of the
Installment of the Loan should have been made and/or the date that the Installment of
Additional Capital Contribution should have been paid and the provisions of Article 4
points 4.4 second paragraph and 4.26 of the Shareholders Agreement shall be suspended
starting from the expiry of 30 days from the date of receiving the Notice of Breach up
to the date when Telvent remedies the breaches.
	 
	 	 	 	The Parties agree that for 30 days following the suspension of Article 4
points 4.4 second paragraph and 4.26, the Board and the Joint Company shall
not reach any decisions nor take any actions on the basis of the
suspension.
	 
	 	 	 	After 30 days following the suspension of Article 4 points 4.4 second
paragraph and 4.26, but for no more than 90 days following the suspension
of Article 4 points 4.4 second paragraph and 4.26, the Board and the Joint
Company may reach decisions and/or take actions only under Article 4 point
4.26 (e) and (f) without prior written consent of all Shareholders of the
Joint Company until Telvent remedies the breaches.
	 
	 	 	 	After 90 days following the suspension, the Board and the Joint Company may
reach any decisions and/or take any actions under Article 4 points 4.4
second paragraph and 4.26 on the basis of the suspension until Telvent
executes the stake transfer agreement and the amendment to Foundation
Agreement or until Telvent remedies the breaches.
	 
	 	(f)	 	If DMS GROUP fails to pay to Telvent the amounts due under the buy-back of 8% of the
total capital and such failure continues for 30 days Telvent shall deliver a written
Notice of breach to DMS GROUP, and if the failure to pay continues for a further 30 days
after receipt of such Notice then DMS GROUP’s right of Casting Vote as defined in
Article 4 point 4.2 of the Shareholders Agreement shall be suspended until DMS GROUP
remedies the breaches.

Page 21

 

	 	 	 	The Parties agree that for 60 days following the suspension of Article 4
point 4.2, the Board shall not reach any decisions on the basis of the
suspension. After 60 days following the suspension of Article 4 point 4.2,
the Board may reach all decisions on the basis of the suspension until DMS
GROUP remedies the breach.

	10.	 	The Parties will sign the Second Amendment to the Foundation
Agreement of the Joint
Company (hereinafter referred to as the: “Second Amendment to
the Foundation Agreement”) on the
Signature Date which shall be filed immediately after the Closing with the Serbian Business
Registration Agency (Registar privrednih subjekata) to change the stakes of the parties to:

	 	 	 	Telvent 57%
	 
	 	 	 	DMS GROUP 43%

	11.	 	The parties will sign the First Amendment to the Shareholders Agreement on the Signature Date
(hereinafter referred to as the “First Amendment to the Shareholders Agreement”) to make certain
changes related to the position of Chairman, decision making authority and other matters according
to this First Amendment and other Transaction Documents;
	 
	12.	 	Closing
	 
	1)	 	This First Amendment shall become effective only upon the execution and delivery of all the
Transaction Documents by the Parties, and payment of the Fixed Purchase Price in accordance with the
STA.
	 
	2)	 	Signing of all of the Closing Documents shall take place at the offices of the Joint Company on
the Closing Date or at such other place, time and date as the parties shall mutually agree.
	 
	3)	 	The completion of the Closing will be the subject to the following conditions, which may be
revised by mutual agreement:

	 	(a)	 	delivery by DMS GROUP to Telvent of a certificate confirming that all
representations and warranties are accurate and true on the Closing Date.
	 
	 	(b)	 	delivery by Telvent to DMS GROUP of a certificate confirming that all
representations and warranties of Telvent are accurate and true on the Closing Date.
	 
	 	(c)	 	each of the Parties shall have signed each of the Transaction Documents on the
Signature Date.
	 
	 	(d)	 	Delivery by DMS GROUP to Telvent of certified copies of resolutions of the
Assembly of DMS GROUP, in original, approving and authorizing the execution of each of
the Transaction Documents on the Signature Date.

Page 22

 

	 	(e)	 	Delivery by Telvent to DMS GROUP of certified copies of resolutions of the board
of directors of Telvent, in original, certified by a notary, approving and authorizing
the execution of each of the Transaction Documents and the authority of persons
certified by a notary for execution of each of the Transaction Documents on the
Signature Date.
	 
	 	(f)	 	Payment of the Fixed Component of the Purchase Price in accordance with the STA.

	13.	 	The Closing shall not occur until the funds for the Fixed Componenet of the Purchase Price of
8% of the total capital in the Joint Company of EUR 9,600,000.00, have arrived from Telvent in DMS
GROUP’s bank account.
	 
	14.	 	Immediately after the Closing, and not later than 15 days after entering into force of the
Second Amendment to the Foundation Agreement, the Parties shall:

	 	(a)	 	submit the Amendment to the Foundation Agreement and other necessary documents to the
Business Registers Agency for the purpose of registration of the transfer of the 8%. If the
Agency or any other competent authority in Serbia indicates that changes should be made to
the Amendments to the Foundation Agreement or this Agreement, such changes shall not be
binding on the Parties unless and until agreed upon by the Parties in writing.

	 	(b)	 	submit any necessary application for registration of the Pledge Agreement.

	15.	 	Immediately after the Signature Date, and not later than 10 days after signing of the Second
Amendment to the Foundation Agreement, the Parties shall submit the Loan Agreement to the NBS for
registration.
	 
	16.	 	Termination
	 
	16.1.	 	In case termination of the Stake Transfer Agreement occurs as a result of failure to pay the
amount of the Fixed Component of the Purchase Price in full within 15 days from the Closing Date:
	 
	•	 	DMS GROUP shall have the right to unilaterally terminate this First Amendment and all
the Transaction documents, by written notice delivered to Telvent,
	 
	•	 	Telvent shall indemnify DMS GROUP against the actual direct damage suffered by it
arising from or in connection with the termination of the STA on the basis of this Article,
	 
	•	 	No Party will be liable to the other Party for lost profits, lost business, indirect
losses and indirect damages regardless of the form of claim.
	 
	 	 	If the termination of the STA occurs as a result of failure to pay the amount of the Fixed

Page 23

 

	 	 	Component of the Purchase Price in full within 15 days from the Closing Date. Telvent shall be
obliged to execute and certify with DMS GROUP the termination of the STA and the amendment to
the Foundation Agreement accordingly, within the following 15 days.

	16.2	 	If Telvent fails to execute the termination of STA and the amendment to Foundation Agreement
within 30 days from the Closing Date, the provisions of Article 4 points 4.4 second paragraph and
4.26 of the Shareholders Agreement shall be suspended until Telvent has executed both the
termination Agreement of the STA and amendment to the Foundation Agreement in accordance with that.
	 
	16.3	 	In case of termination of the STA and the amendment to the Foundation Agreement in accordance
with that, the Loan Agreement and all other Transaction Documents shall also be terminated and put
out of force, as well as documents provided for the execution stated under point “Transaction
Documents” in this First Amendment and all obligations of the Parties related to additional
investment, and exclusively the provisions of this First Amendment which regulate the consequences
in case that the Closing does not occur due to nonpayment of the Fixed Component of the Purchase
Price for the transfer in the amount of EUR 9,600,000.00 in full, shall apply.
	 
	16.4	 	Telvent shall have the right for unilateral termination of the STA and all the Transaction
documents before or at the Closing, by written notice delivered to DMS GROUP, in case that:
	 
		 	1) DMS GROUP breaches any of its obligations at the Closing Date from the STA, or
	 
		 	2) Any of DMS GROUP’s representations and warranties from this Agreement is untrue,
misleading or inaccurate in any material respect at the Closing Date.
	 
	16.5	 	The STA may be terminated by Telvent upon the Closing if Telvent’s title over the Stake cannot
be registered due to the reasons which were known to DMS GROUP on the Signature Date but were not
disclosed to Telvent.
	 
	16.6	 	DMS GROUP shall indemnify Telvent against the actual direct damage suffered by it arising from
or in connection with the termination of the STA, that occured as a consequence of reasons stated in
points 16.4 and 16.5 of this Article.
	 
	 	 	If the termination of the STA occurs, DMS GROUP shall be obliged to execute and certify
with Telvent the termination of STA and the amendment to the Foundation Agreement in
accordance with that, and all the Transaction documents.
	 
	 	 	If DMS GROUP fails to execute the termination of STA and the amendment to Foundation
Agreement within 30 days from the Closing Date the provisions of Article 4 point 4.2 of
the Shareholders Agreement shall be suspended until DMS GROUP has executed both the
termination Agreement of the STA and amendment

Page 24

 

	 	 	to the Foundation Agreement in accordance with that.
	 
	 	 	No Party will be liable to the other Party for lost profits, lost business, indirect
losses and indirect damages regardless of the form of claim.

16.7. Final Date for the Closing

The Parties shall use their best efforts to ensure that all Closing conditions are satisfied and any
breaches of Representations and Waranties are corrected.

In the event the Closing does not occur within 15 days from the Closing Date due to the failure of
a Party to fullfill a Closing condition or remedy a breach of its Representations and Warranties,
the other Party shall be entitled to unilateraly terminate this Agreement.

17. Telvent’s On-Site Representative

The Parties agree that Telvent is entitled to appoint a Telvent employee to act as Telvent’s onsite
representative (the “On-Site Representative”) who will assist the Joint Company with its day-to-day
operations and shall have access to the same reports and information as provided to the
Vice-Chairman. The On-Site Representative may also act as the Vice Chairman’s authorized
representative as directed by the Vice Chairman. The On-Site Representative’s duties will include,
but shall not be limited to:

	1.	 	The On-Site Representative shall assist the Chairman with the preparation of the yearly budget
and the updating of the R&D Plan. The budget will include both the technological developments and
investments, and the financial and economical considerations (cash/flow, working capital, financing
etc.) for the whole year.
	 
	2.	 	The On-Site Representative shall have the right to be informed and will monitor any proposal,
contract or order of the Joint Company exceeding EUR 1,000,000.00. The On-Site Representative shall
not have the right to approve any proposal, contract or order of the Joint Company.
	 
	3.	 	The On-Site Representative shall be informed of status of projects and R&D activities to monitor
the progress in carrying out the R&D Plan.
	 
	4.	 	The monthly report and Committee preparation will be prepared and reported by the On-Site
Representative.
	 
	5.	 	The Joint Company’s Administration and Financial Departments shall report to the On-Site
Representative as the representative of the Vice Chairman.

Page 25

 

	6.	 	The Chairman may assign some duties appropriate to his position to the On-Site Representative to
help him in the operation of the Joint Company.
	 
	 	 	The On-Site Representative will not be considered an employee, agent or contractor of the
Joint Company.
	 
	 	 	DMS GROUP may require Telvent to replace Telvent’s On-Site Representative immediately for any
of the following reasons: (i) fraud, drug abuse, theft, or illegal activities; or (ii)
misconduct, inappropriate behaviour or negligence that results in material interference with
the day-to-day operations of the Joint Company.
	 
	 	 	In the event that DMS GROUP wishes to replace the On-Site Representative for reasons other
than those listed above, DMS GROUP may make a written reasoned request to Telvent. Telvent
will review such requests on a case-by-case basis. If Chairman of the Joint Company
determines in good faith that the On-Site Representative’s conduct, behavior or performance
is unsatisfactory, he may give notice to Telvent requesting the replacement of the On-Site
Representative with detailed reasons for the request. Upon receipt of such notice, Telvent
will have 5 Business Days in which to investigate the matters stated in such notice,
discuss its findings with the Chairman and try to reach agreement to resolve any such
problems regarding the On-Site Representative. If no agreement is reached, the issue
shall be considered by the Joint Company’s Board of Directors, who shall meet to discuss
the request. If a simple majority of the Board decides that there are reasonable grounds
to remove the On-Site Representative, Telvent will replace the On-Site Representative
with another person. In case Telvent’s On-Site Representative is also the Vice Chairman of
the Board, then a vote of 3 out of 4 Board Members will be required.
	 
	18.	 	The Parties agree that the JV Agreement is amended as follows:
	 
	18.1	 	Article V point 5.3 of the JV Agreement is changed completely to read as follows:
	 
	5.3.	 	The Joint Company will not acquire or assume any of the existing contracts of the DMS GROUP.
Existing contracts of the DMS GROUP for open DMS projects (including EPS II phase, EVN Macedonia,
ENEL — Pilot project Milano, ENEL — DMS installation in 29 control centers, DMS for EDF I Phase)
will remain with DMS GROUP who will complete those contracts for and on behalf of its own account
within 12 months from the Closing under this First Amendment (hereinafter referred to as the
“Cut-off Date”) and shall be entitled to collect and retain the payments from those projects to a
maxumim of EUR 1,100,000.00 Net Project Revenues. Net Project Revenues means payments received minus
project execution costs (costs of engineer hours, daily allowances, hotel accommodation and travel
expenses). Net Project Revenues received by DMS GROUP in excess of EUR 1,100,000.00, shall be paid
to the Joint Company. The Joint Company will not share in either the costs or the revenues from
those contracts until the Cut-off Date. Any extensions of those contracts and all new agreements
for Smart Grid IT Solution Suite will be signed exclusively by the Joint Company.

Page 26

 

	 	 	DMS GROUP will not sign any new agreement for sales of the Smart Grid IT Solution Suite,
unless clients, under agreements with DMS GROUP for the projects mentioned above signed
prior to the Effective Date of Joint Company do not wish to terminate those agreements
with DMS GROUP and enter into a new agreement with the Joint Company because of the
change of contract parties, for the purposes of continual business relationship with DMS
GROUP, procedure or some other reason DMS GROUP cannot affect.

	 
	 	 	
In such case, Telvent agrees for DMS GROUP not to terminate those agreements, i.e.
Telvent agrees to extend the abovementioned agreements or to conclude new agreements,
but only with clients with respect to the projects mentioned above. In such cases, DMS
GROUP shall engage Joint Company as a subcontractor for services and software that shall
be delivered under those contracts.
	 
	 	 	The execution of these projects will require very limited resources from the Joint
Company.
	 
	18.2	 	Article V point 5.13 of the JV Agreement is amended in full, to read as follows:

	5.13	 	If a Party fails to make its Additional Capital Contribution within the time frames as
stipulated under this Agreement, except under the conditions of Force Majeure (hereinafter in this
Article referred to as a: “Breaching Party”):

	(a)	 	The Breaching Party shall pay to the Joint Company interest for the amount or value overdue
which is calculated on a daily basis from and including the date such contribution was due until and
including the date the contribution is made in full at the interest rate of EURIBOR plus 1%. Such
interest shall be payable monthly in arrears and shall be used by the Joint Company for appropriate
business purposes,
	 
	(b)	 	The Breaching Party shall indemnify the Joint Company for any penalties or costs incurred by the
Joint Company as a result of such failure to pay the Capital Contribution,
	 
	(c)	 	If Telvent fails to pay any Installment of its Additional Capital Contributions under this
First Amendment or fails to release any Installment of the Loan of any of the Facilities in
accordance with the Loan Agreement, and if such failure to pay continues for a period of 30 days,
then DMS GROUP may give a Notice in writing to Telvent (hereinafter referred to as: “Notice of
Breach”). If the failure to pay continues for a further 30 days after receipt of such Notice, DMS
GROUP shall be entitled to buy back the 8% of the total capital of the Joint Company at the purchase
price of EUR 9,600,000.00, which is equivalent to the Fixed Purchase Price paid to DMS GROUP by
Telvent under the STA (hereinafter referred to as: “the Buy Back Payment”).
	 
	 	 	If DMS GROUP decides to exercise the option to buy back the 8% of the total capital of the
Joint Company, DMS GROUP shall deliver a notice in writing to Telvent inviting Telvent to
execute the stake transfer agreement and amendment to the

Page 27

 

	 	 	Foundation Agreement (hereinafter
referred to as the: “Buy Back Notice”). Together with the Buy Back Notice, DMS GROUP will
deliver the forms of the stake transfer agreement and the amendment to the Foundation
Agreement.
	 
	 	 	Telvent shall be obliged to execute the stake transfer agreement and amendment to the
Foundation Agreement required for registration of 8% of total capital of the Joint Company
before the Business Register Agency within 8 days from receiving the Buy Back Notice.

	 
	 	 	
The payment term for this buy-back shall be for 5 years at annual interest rate of 5%. DMS
GROUP shall have a grace period of 1 year and thereafter will pay the Buy Back Payment in
16 quarterly installments starting from the end of grace period. The grace period shall
commence on the day of execution of the stake transfer agreement and amendment to the
Foundation Agreement. In case Telvent fails to execute these documents, grace period starts
from the date of entry of buy-back into the Book of stakes (51% DMS GROUP). DMS GROUP
shall pay the interest calculated during the Grace Period on the last business day of the
Grace Period.
	 
	 	 	If Telvent fails to execute the stake transfer agreement for the 8% of the total capital in
the Joint Company and/or the amendment to the Foundation Agreement thereto within 8 days
from receiving the Buy Back Notice, the Joint Company is authorized to enter into the
transfer of the 8% of the total capital in the Book of stakes in favor of DMS GROUP (51%
DMS GROUP) and:

	 	(i)	 	the annual interest rate under the Loan Agreement shall decrease to 7% per annum,
starting from the expiry of 10 days from the date that the advance of the Installment of
the Loan should have been made and/or the date that the Installment of Additional
Capital Contribution should have been paid; and
	 
	 	(ii)	 	the provisions of Article 4 points 4.4 second paragraph and 4.26 of the
Shareholders Agreement shall be suspended;

	 	 	until Telvent has executed both the stake transfer agreement and the amendment to the
Foundation Agreement.
	 
	 	 	In case DMS GROUP has exercised its Buy Back Right on the basis of any ground, and
Telvent breaches its obligations from this First Amendment regarding the obligations to
pay the Installments of Additional Capital Contribution, and/or Installments of the
Loan, and its obligation to execute a stake transfer agreeement of 8% of the total
capital and an amendment to the Foundation Agreement upon the buy-back, then until
Telvent remedies all the breaches, the annual interest rate under the Loan Agreement
shall decrease to 7% per annum, starting from the expiry of 10 days from the date that
the advance of the Installment of the Loan should have been made and/or the date that
the Installment of Additional Capital Contribution should have been paid and the
provisions of Article 4 points 4.4 second paragraph and 4.26 of the Shareholders
Agreement shall be suspended starting from the expiry of 30 days from the date of
receiving the Notice of Breach up to the date when Telvent remedies the breaches.

Page 28

 

	 	 	 	The Parties agree that for 30 days following the suspension of Article 4 points 4.4
second paragraph and 4.26, the Board and the Joint Company shall not reach any decisions
nor take any actions on the basis of the suspension.
	 
	 	 	 	After 30 days following the suspension of Article 4 points 4.4 second paragraph and
4.26, but for no more than 90 days following the suspension of Article 4 points 4.4
second paragraph and 4.26, the Board and the Joint Company may reach decisions and/or
take actions only under Article 4 point 4.26 (e) and (f) without prior written consent
of all Shareholders of the Joint Company until Telvent remedies the breaches.
	 
	 	 	 	After 90 days following the suspension, the Board and the Joint Company may reach any
decisions and/or take any actions under Article 4 points 4.4 second paragraph and 4.26
on the basis of the suspension until Telvent executes the stake transfer agreement and
the amendment to Foundation Agreement or until Telvent remedies the breaches.
	 
	 	 	 	If DMS GROUP fails to pay to Telvent the amounts due under the buy-back of 8% of the
total capital and such failure continues for 30 days Telvent shall deliver a written
Notice of Breach to DMS GROUP, and if the failure to pay continues for a further 30 days
after receipt of such Notice then DMS GROUP’s right of Casting Vote as defined in
Article 4 point 4.2 of the Shareholders Agreement shall be suspended until DMS GROUP
remedies the breaches.
	 
	 	 	 	The Parties agree that for 60 days following the suspension of Article 4 point 4.2, the
Board shall not reach any decisions on the basis of the suspension. After 60 days
following the suspension of Article 4 point 4.2, the Board may reach all decisions on
the basis of the suspension until DMS GROUP remedies the breaches.
	 
	 		 	(d) If the Joint Company breaches its obligations to provide financial reporting, or
progress reports on the R&D Plan under Article XIII point 13.12 or has materially
failed to carry out the work to be done under the mutually agreed and approved R&D
Plan, the Parties may issue a notice of breach to the Joint Company with a copy to the
other Party and if such breach is not remedied within 30 days of receipt of the notice
by the Joint Company , the Parties shall be entitled to postpone their payment of the
next Installment of the Additional Capital contribution and Installment of the Loan
listed in Appendix 2 until the Parties reach an agreement to adjust the R&D Plan
execution and continue with making the above mentioned payments. The solution to the
problem or adjustment to the R&D Plan shall be approved by the Board by 3 votes of the
4 Board members. The Parties shall be obliged to make their payments which were
postponed within 10 business days.
	 
	 	 	 	If the failure to carry out the R&D Plan is a consequence of Telvent’s breach of its
obligations to pay its Installment of the Additional Capital Contribution and the
Installment of the Loan, Telvent shall not have the right to postpone the payment of

Page 29

 

	 	 	 	any Installment of the Additional Capital Contribution or Installment of the Loan.

	18.3	 	Article VIII point 8.1 of the JV Agreement is amended to read as follows:

	 	 	 	DMS GROUP leases to the Joint Company the sub-floor, ground floor, the gallery, 4th
floor and attic space with duplex in a business-residential building at Sremska 4, Novi
Sad, Serbia by a lease agreement and subleases the apartment 6, III flour at Sremska 4
and the building in Karadjordjeva No. 70, related to which the Joint Company has
concluded a sub-lease Agreement with DMS GROUP (the lease, sub-lease and the agreement
are hereinafter called the “Old Leases”).
	 
	 	 	 	The Parties agree that on the Signature Date the Joint Company and DMS GROUP shall sign
the Lease Agreement (as detailed in Appendix 6 attached hereto)_ for the new business
building located in Narodnog Fronta Street 25A, 25B, 25C, 25D in Novi Sad, built on the
parcel No. 3928/41 C.M. Novi Sad II (hereinafter referred to as the: “New Lease”), which
consists of 76 business offices with the right to use the basement and common spaces.
	 
	 	 	 	Upon the Joint Company moving into the new business building in Narodnog Fronta Street
25A, 25B, 25C, 25D and commencing to pay rent under the New Lease, the Old Leases shall
be cancelled and the Joint Company shall have no further obligations to DMS Group under
those Old Leases.
	 
	 	 	 	The Parties mutually agree that the Joint Company shall consider participation in
financing development of a new building within University of Novi Sad in the amount of
EUR 3,000,000.00. This financing shall represent the rent for the aforementioned
building for the next twenty years.

	18.4	 	Article XII point 12.11 of the JV Agreement is amended to read as follows:

	 	 	 	Neither party shall, without the prior written consent of the other party, hire any person who
is an employee of the other party or the JV Company neither any person who was an employee of
the other party or the JV Company within two years after the termination of his employment
with the other party or the JV Company.
	 
	 	 	 	If one party breaches the provision specified in the previous paragraph, it will be obliged to
pay to the other party an amount equal to the gross amount of 24 engineer months, within 15
days from the date on which the employee concluded the employment agreement and / or the date
when he was engaged on some other basis. The price for the engineer hour shall be determined
according to the price for the engineer hour defined for the qualification of the employee in
the Reseller and Service Agreement — VAR, valid on the date on which the employee concluded
the employment agreement and / or the date when he was engaged on some other basis.

	18.5	 	Article XIII point 13.9 of the JV Agreement is amended to read as follows:

Page 30

 

	 	 	After the end of each fiscal year, the Joint Company shall cause its accounts and records to
be audited by the auditor referred to in Article XIII point 13.7. The Joint Company shall use
its best endeavors to ensure that such audit shall be completed no later than three (3) months
after the end of such fiscal year and copies of such audited statements together with the
report of the auditor shall be furnished to the Parties as soon as they are available but in
any event no later than twenty (20) days after completion of the audit. The date of completion
of the audit is the date when the Joint Company obtains the written audited statement.
	 
	18.6	 	Article XIII point 13.11 of the JV Agreement is amended to read as follows:

An Annual Budget shall be prepared by the Chairman and submitted to the Board for approval in
accordance with Article 4 point 4.4 of the Shareholders Agreement at least 30 days prior to the
start of each accounting and fiscal year. The Annual Budget will contain/include the R&D Plan for
that year.

Monthly management reports, including profit and loss account, balance sheet, cash flow statement,
capital expenditure statement, sales analysis, analysis of debtors, employment analysis, key
performance indicators and financial forecast, comparison of performance to budget and prior year
shall be prepared and provided to Telvent (and to DMS GROUP if DMS GROUP so requests) monthly by the
20th day of each month in such format as Telvent shall require together with further information in
the possession or control of the Joint Company or the Chairman regarding the financial condition and
operations of the Joint Company as Telvent may request and details of any litigation commenced
against the Joint Company together with the Chairman’s reasonable estimate of potential liability
thereunder.

	18.7	 	Article XIII point 13.12 of the JV Agreement is amended with the following:

	 	(a)	 	The R&D Plan will be reviewed and updated by Prof. Dr. Dragan Popovic, as the Executive
Vice President for Smart Grid IT, not later then 30 days prior to the start of each accounting
and fiscal year including the defined R&D targets to be accomplished every three months.
Updates of the R&D Plan will be in full accordance with and coordinated with Telvent’s
strategy for the development of the Smart Grid Solution Suite and will include defined R&D
targets to be accomplished every three months. Within 15 days after the end of each 3 months
period, the Joint Company shall prepare a Progress Report describing the progress of the
development work including: (i) items completed since the last report; (ii) actual and planned
percentage of completion for each task and development project; (iii) items to be completed in
the next 3 months period.
	 
	 	 	 	If the updated R&D Plan has not been adopted by consensus by the Board as a formal part
of the Budget, the Joint Company shall continue to operate in accordance with the
original three year R&D Plan attached hereto as Appendix 1. In addition, the Parties
shall continue to make their payments of the Installments of the Additional Capital
Contributions and Installments of the Loan, pursuant to Appendix

Page 31

 

	 	2 of this Agreement.

	18.8	 	Article XIII points 13.14, 13.15 and 13.16 of the JV Agreement are amended as follows
	 
	13.14	 	The goal of the parties for the Joint Company is to run the business during the first five (5)
years without generating higher expenses in relation to the budget approved, while accounting
book-keeping losses stated on the end of the fiscal year will not be considered as violation of this
obligation.
	 
	13.15	 	After the Joint Company has paid income tax and made up any losses incurred in any previous
year but prior to distribution of the net profits of the Joint Company to the Parties, the Joint
Company shall set aside a reserve fund in accordance with the stipulations of the governing laws and
regulations of the Republic of Serbia and in accordance with the approved Budget. The Board shall
determine annually, in accordance with the provisions of this Agreement, the amount of net profits
to be allocated to each of these reserve funds.

	 	a.	 	During the first three (3) years after Closing, there shall be no obligation to
allocate a part of the net income into reserve funds for R&D Budget in the JV Company
with respect to the Smart Grid IT Solution Suite systems, unless the Shareholders
unanimously agree otherwise. After the first 3 (three) years after Closing, 5% of the
revenue from sales earned by the Joint Company by the end of the fiscal year will be
allocated from the net income after taxes and will be retained in the Joint Company to
fund the reserves for R&D Budget with respect to the Smart Grid IT Solution Suite
systems, unless the Shareholders unanimously agree otherwise.
	 
	 	b.	 	If the Board determines that it is necessary to utilize reserve funds for following
year’s R&D Budget, the Board shall unanimously decide on the amount of part of the
reserve funds to be allocated for R&D Budget for Smart Grid IT solution Suite systems
and include it in the Budget for the following year, in accordance with the provisions
of this Agreement. The Board shall have no obligation in the first three (3) years
after the Closing to allocate any amount from reserve funds into the R&D Budget for
the following year. After the first 3 (three) years after Closing, unless unanimously
decided by the Board on the amount of part of the reserve funds to be allocated for
the R&D Budget for the next year, the amount of 5% of the net sales revenue of the
Joint Company at the end of the current fiscal year shall be used for the R&D Budget
for the next year.

13.16 The Joint Company will distribute dividends up to a maximum amount equal to that portion of
the JV Company’s net income after taxes (as determined in the Financial Statements of the Joint
Company for the prior fiscal year) increased by undistributed profit (retained earnings) from
previous years (not including reserves for R&D Budget for Smart Grid IT Solution Suite systems)
remaining after the conditions described below have been

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satisfied (hereinafter referred to as “ Amount Available for Distribution”):

	(a)	 	the allocation of funds and payment of taxes pursuant to Article 13.15;
	 
	(b)	 	compliance with the requirements of Serbian company law with respect to the payment of dividends;
	 
	(c)	 	establishing reasonable reserves to ensure normal business during the remaining part of the
year, i.e. that the difference between Current Assets and Current Liabilities after distribution of
dividends will be greater than zero, and that no additional cash contributions from the Shareholders
other than the agreed capital contributions will be necessary to pay the liabilities of the Joint
Company as they become due.
	 
	(d)	 	the Joint Company is in compliance with a Debt Service Coverage Ratio in the previous Fiscal
year (Annual Financial Statements on Dec, 31) of at least 1.3 as defined below:

	 	•	 	Debt Service Coverage Ratio means the ratio of Free Cash flow / Debt
Service
	 
	 	•	 	Free Cash Flow: means EBITDA +/- Income taxes (or receivables for income
tax overpaid) + Working Capital Change — payment for fixed assets increase +/-
Extraordinary Income/Expenses.
	 
	 	•	 	EBITDA means: Operating Income + Depreciation + Amortization
	 
	 	•	 	Working Capital means the difference of value between:

	 	(1)	 	(Current Assets — Cash and cash equivalents) and

	 	(2)	 	

 (Current Liabilities — short term financial indebtedness);

	 	•	 	Working Capital Change means: difference between Working Capital
determined in the Annual Financial Statements of the year before the previous
fiscal year and Working Capital of the previous fiscal year;
	 
	 	•	 	Debt Service: means the total of due obligated payments for principal and
interest payable within the previous fiscal year by the Joint Company for a
financial indebtnesses;

	 	 	These calculations will be done using the Annual Financial Statements for the previous
fiscal year.
	 
	(e)	 	the Joint Company must not be in default under any loan and credit agreements or other
financial indebtedness contracts which gives the lender under such agreement the right to demand
payment of the full amount owing under the agreement.

Provided that the above conditions are satisfied, 100% of the Amount Available for

Page 33

 

Distribution
shall be available for distribution. The minimum amount of dividends to be distributed shall be 90%
of the Amount Available for Distribution, unless the Shareholders unanimously agree otherwise.

Provided that the above conditions are satisfied, the Parties shall:

(a) ensure that their respective appointed Members of the Board hold a Board meeting within three
months of the end of the fiscal year of the Joint Company and vote in favor of a proposal of
resolution declaring a minimum amount of dividends to be distributed calculated as given in the
previous paragraphs to be payable as dividends to the Parties in proportion to their Contribution
Percentages; and

(b) Pass a resolution of the Shareholders Assembly of the Joint Company on the distribution of a
minimum amount of dividends calculated as given in the previous paragraphs to be payable as
dividends to the Parties in proportion to their Contribution Percentages.

If a Party refuses to vote at the Shareholders Assembly to approve payment of the minimum amount of
dividends, despite all the above conditions being fulfilled, without any reasonable reason (the
“Blocking Party”) then the Blocking Party shall pay to the other Party a penalty equal to the amount
of the dividend that such Party would have received if the Shareholder Resolution had been passed
plus interest at the rate of 13% per annum from the date which is 15 days after the date the
Shareholders Resolution should have been passed to the date of payment.

If DMS GROUP is the Blocking Party then until the Shareholders Resolution is passed, the interest
rate under the Loan Agreement shall increase to 13% per annum.

If Telvent is the Blocking Party, from the date the Shareholders Resolution should have been passed
until the date when the Shareholders Resolution is passed:

(1) The interest rate, under the Loan Agreement, shall not apply;

(2) All the maturity terms of the Loan repayment shall be postponed; and

(3) The Pledge and the Mortgage shall not be enforceable.

If Telvent is the Blocking Party and fails to pay the penalty referred to above within 60 days after
notice in writing from DMS GROUP, and the Loan has been fully repaid, this will be deemed to be the
Good Reason and Prof. Dr. Dragan Popovic shall have the right to resign for Good Reason and all the
other Shareholders of DMS GROUP and its affiliates (described in the Appendix 7) employed in the
Joint Company shall have the right to terminate their employment agreements and they will not be
bound with their Non-competition clauses.

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	19.	 	DMS GROUP shall have all the rights determined by the Joint Venture Agreement and Shareholders
Agreement as well as by the Foundation Agreement, including their subsequent amendments and
addendums, irrespective of the pledge which is to be inscribed over the stake of DMS GROUP in
favor of Telvent.
	 
	20.	 	Pledge established in the favor of Telvent will in no way influence the voting rights and other
rights of DMS GROUP which derive from the ownership right over the stake and internal acts of the
Joint Company.
	 
	21.	 	Each party will be responsible for payment of its own costs and taxes relating to the
Transaction, including but not limited to the costs of legal advisors, accountants and other
advisors with regards to this Agreement and all other agreements and documents up to the Closing.
	 
	22.	 	Purchase of DMS Group Assets including the EMS Software

(a) On the Signature Date, DMS GROUP, as the Seller, and the Joint Company, as the Buyer, shall
enter into an Asset Purchase Agreement for the sale of EMS software, including all its modules and
functions and all the available energy market modules and certain other assets, as described in
Appendix 1 to the Asset Purchase Agreement (hereinafter referred to as the: “Assets”).

The total purchase price for the Assets will amount to EUR 1,574,011.00 to be paid by the Joint
Company to DMS GROUP as follows:

1.) EUR 1,274,011.00 payable within one month from the Closing and

2.) EUR 300,000.00 to be paid within 5 years from the Closing.

(b) Concurrently with signing the Asset Purchase Agreement, the Joint Company and DMS Group shall
enter into a License Agreement by which the Joint Company shall grant a non-exclusive, limited
license for a term of 6 years from the Closing to DMS Group to use and sub-license the EMS energy
market modules solely for the limited purpose of enabling DMS Group to carry out any remaining
contractual obligations which DMS Group may have under its contract with EKC d.o.o. Beograd/
Electricity Coordinating Center LLC Belgrade. The license fee payable under the license agreement
shall be the amount of EUR 1,270,046.00 to be paid by DMS Group
within one month from the Closing.

(c) The Parties agree that on the Signature Date, the Joint Company and DMS GROUP will enter into a
Services Agreement (hereinafter referred to as the: “Inter-company Agreement”), as one of the
Transaction Documents.

Pursuant to this Inter-company Agreement, for the period of 5 years from the Closing, DMS GROUP
shall supply the following to the Joint Company:

a. general administrative and corporate services

b. consulting services related to defining a long-term development strategy for Smart Grid products,

Page 35

 

for a fee in the amount of 1.5% of the total contract value of Telvent DMS Contracts for the supply
of Smart Grid IT Solution Suite, systems and services which are signed between the Joint Company
and an end client, in the period of 5 years from the Closing (hereinafter referred to as the
“Success Fees”).

In this Article:

“Telvent DMS Contracts” means a contract between the Joint Company and a client for the supply of
Smart Grid IT Solution Suite, systems and/or services and which is signed during the 5 year period
commencing on the Closing. The offers for the Telvent DMS Contracts shall be bid using the same
prices as are in the Reseller & Services Agreement — VAR (dated May 8, 2008. including all of its
annexes) unless otherwise decided by the Board of Directors of the Joint Company.

(d) In the event of Resignation of Prof. Dr. Dragan Popovic from the Company, DMS GROUP shall not
be entitled to receive any further Success Fees for Telvent DMS Contracts signed after the date of
Resignation of Prof. Dr Dragan Popovic.

(e) Of the existing approximately 120 DMS GROUP employees, approximately 40-60 engineers will
become employees of the Joint Company within 3 months of the Closing, at a pace as needed. DMS
GROUP will complete all work for Siemens and terminate all contracts, agreements and orders with
Siemens by December 31, 2011, at which time the remaining approximately 40-60 employees of DMS GROUP
will transfer over to The Joint Company. DMS GROUP will not renew or extend any contracts or orders
with Siemens, neither will DMS GROUP nor any affiliate or subsidiary of DMS GROUP enter into any new
contracts, agreements or orders with Siemens for so long as DMS Group is a shareholder of the Joint
Company.

23. In the Annex to the Reseller and Service Agreement — VAR and in the Value Added Reseller
Agreement between Telvent Energia and the Joint Company — new VAR Agreement, the maximum applicable
margins for the licenses and services which can be added by Telvent Sweden and/or Telvent and cannot
be exceeded upon the occasion of defining of final prices towards the client shall be defined.

24. Except for the amendments prescribed by this First Amendment, all other terms and conditions
of the JV Agreement shall remain in full force and effect.

25. If any changes are made to Serbian Company Law which affect the rights and obligations of the
Parties under this Agreement or other Transaction Documents, and especially if they require changes
to be made to the provisions which relate to Board of Directors, Chairman of the Board, Executive
Director /CEO or CEO replacement, the Parties agree to sign the necessary amendments to this
Agreement, other Transactions Documents and the Foundation Agreement of the Company as necessary in
order to maintain the rights and obligations of the Parties in accordance with this Agreement and
other Transactions Documents (hereinafter referred to as: “Necessary Amendments”).

It is especially important to understand that if the present rights and authorities of Prof. Dr
Dragan Popovic as the Executive Director/CEO and Chairman of the Board, as well as the

Page 36

 

Board
structure cannot be maintained, the Parties agree on the following:

	 	1.	 	The Joint Company shall have the Supervisory Board or some similar board or authority which
corresponds to the current Board of Directors with respect to its form and competence (and
especially with respect to the selection of the Executive Director/CEO and the Chairman of the
Board and his replacement and CEO replacement), division of authority between that Board and
Assembly shall remain as it is now in the scope allowed by the new Company Law.
	 
	 	2.	 	The form of the aforementioned Board shall provide DMS Group the majority either by number
of members of that Board or by a Casting Vote in the same manner as in the existing JV
Agreement and Shareholder Agreement, as amended.
	 
	 	3.	 	Chairman of the aforementioned Board shall be from DMS Group and Vice Chairman shall be
from Telvent with all the powers and under all terms as in the existing JV Agreement and
Shareholder Agreement, as amended and in the scope allowed by the new Company Law.
	 
	 	4.	 	The Joint Company shall have one director/CEO or equivalent position, who will be from DMS
Group and who shall have all the powers that the director/CEO has under the JV Agreement and
the Shareholder Agreement, as amended.
	 
	 	5.	 	All resolutions that are required to be adopted by consensus under the JV Agreement and the
Shareholder Agreement as amended, either by the Shareholder Assembly or the Board of Directors
shall also be adopted by consensus in the future.
	 
	 	6.	 	The Parties shall provide that the agreed obligation to pay out the dividends under this
Agreement shall be maintained fully.

Parties shall use best efforts to reach an agreement on the Necessary Amendments utilizing the
minimum necessary changes consistant with the applicable law. If a Party does not agree with the
proposed content of (a) Necessary Amendment(s) and refuses to sign one or all of the Neccessary
Amendments within 15 days upon receiving notice from the other Party to sign the Necessary
Amendments, the demanding Party shall have the right to refer the Parties to Arbitration in
accordance with Article 22. of the JV Agreement. In arbitration both parties shall propose the
Necessary Amendments that each Party considers consistant with the changes in the Serbian Company
Law and best reflecting the present management structure. The arbitrator shall base his award with
respect to the matter before him on the contents of this Agreement, the Shareholder Agreement and on
the provisions of the applicable law. The award of the arbitrator shall be rendered in writing with
all reasonable expedition, and shall be final and binding on the Parties hereto. If the arbitrator
is unable to render an award in writing on the request that is set before him, the parties shall
re-arbitrate the dispute at least two (2) additional times. Notwithstanding the foregoing, the first
arbitrator to provide an award in writing, that award shall be final and binding on the parties.
During the arbitral proceedings both Parties shall manage the operation of the Joint Company in
accordance with this Agreement and all other Transaction documents.

Page 37

 

	 	 	 	 	 
	 	In witness whereof, the
Parties have caused these First Amendments to be executed by their duly
authorized officers.

	 	 	 	 	 
	 	
For “DMS GROUP”, LLC for

power engeneering Novi Sad:

 	 
	 	/s/ Dragan Popovic
 	 
	 	Prof. Dr. Dragan Popovic 	 
	 	Chairman of the Board 	 
	 
	 	For Telvent Energia S.A.Madrid:

 	 
	 	/s/ Victor Jose Hidalgo Vega
 	 
	 	Victor Jose Hidalgo Vega 	 
	 	 	 
	 

Appendix 3

Roles and Responsibilities of the Executive Vice President, Smart Grid IT

Roles and Responsibilities of the Executive Vice President, Smart Grid IT

For the purposes of this Appendix, the definition of Smart Grid IT Solutions
Suite shall be: an integrated solution for the electric utility/industry covering
Smart operations and consisting of one or more of the following components: DMS,
EMS, Energy Market, Electrical SCADA, OMS, MDM, Integration Bus, etc. in an open
and highly integrated
environment.

For the purposes of this Appendix, the definition of Smart Grid IT contracts
shall be: a contract between Telvent or Telvent USA Corporation or any of their
respective affiliate companies (other than the Joint Company) and a client which
includes the supply of Smart Grid IT Solution Suite systems and/or services
related thereto

Prof. Dr
Dragan Popović shall be Executive Vice President, Smart Grid IT and
shall have all authority and responsibilities of that role and as described in
this document.

Prof.
Dr. Dragan Popović, in his capacity as a senior executive of Telvent Energy
shall lead the Smart Grid IT business within Telvent Energy reporting directly to
the President, Telvent Energy.

Telvent Energy shall mean the Smart Grid IT business developed and executed
through its entities and affiliates.

The Executive Vice President, Smart Grid IT shall be authorized to legally
represent

Page 38

 

Telvent Energy and to sign Smart Grid IT contracts associated with the
world wide Telvent Energy business when such projects have been approved by the
Board and/or the President, Telvent Energy.

Together with the President, Telvent Energy, the Executive Vice President, Smart
Grid IT shall design and approve the global Smart Grid IT sales network
including, in collaboration with divisional Vice Presidents, the selection,
recruiting and if required, the substitution of personell for the sales, project
delivery, project mnangement, on-site project management, maintenance and
support organizations in Telvent Energy’s direct reporting NA and international
divisions. With his associates, the Executive Vice President, Smart Grid IT will
interview, recruit and provide adequate training to the Smart Grid sales team.

As a senior member of the Telvent Energy management team and reporting directly
to Telvent Energy top level executive, the Executive Vice President, Smart Grid
IT has responsibility to lead and drive Smart Grid IT Solution Suite strategy
development and leverage the Telvent Energy Product Management organization in
executing product lifecycle planning as it pertains to the development of the
Smart Grid IT Business within the financial and strategic goals established for
Telvent Energy. This includes managing the product roadmap throughout the product
lifecycle, gathering and prioritizing product and customer requirements, defining
the product vision, and working closely within corporate strategic plans and
budgets to deliver winning products and planned return on investment. It also
includes leading, in cooperation with Telvent Energy top level executives, R&D,
strategic partnerships, marketing, sales, and field support, project delivery,
maintenance and support, to ensure revenue, profit and customer satisfaction
goals for the product line are met.

Together with the President, Telvent Energy, the Executive Vice President, Smart
Grid IT shall also have authority to coordinate R&D IT Product Centers and their
activities as they pertain to Telvent Energy’s Smart Grid IT Solutions Suite,
roadmaps and specific Smart Grid IT Solutions Suite overall roadmap.

The Executive Vice President, Smart Grid IT of Telvent Energy is expected to:

	 	 	Act as a leader of Smart Grid within Telvent Energy in meeting its
overall strategy, growth and profitability goals;
	 
	(1)	 	Drive and define:

	 	•	 	 global Smart Grid IT business
	 
	 	•	 	Telvent Energy’s product development strategy and roadmap for the
Smart Grid IT Solution Suite

In cooperation with the President, Telvent Energy and other related Telvent
verticals and geographies, lead the cooperation with key Smart Grid third party
partners.

Within Telvent Energy, the Smart Grid strategy and roadmap is revised and/or
refined formally on a biannual basis as a Product Management function and
includes prioritized product line functions and features by segment and geography
and corresponding

Page 39

 

justification generated within approved budgets;

	(2)	 	In concert with Sales, Product Management and R&D organizations, deliver
Market Requirement Documents (MRDs) and Product Requirement Documents (PRDs). In
order to facilitate these requirements, the Executive Vice President, Smart Grid
IT will have comprehensive insight into all sales opportunities worldwide, and in
cooperation with the President, Energy supervising the resulting sales
opportunities the organization will focus on. As well, the Executive Vice
President, Smart Grid IT has responsibility to drive product line and proposal
pricing models which are strategically and geographically sensitive to the
organization’s growth, profitability and risk profile targets as defined in the
annual strategic plans and budgets of Telvent Energy. For large Smart Grid
project opportunities, defined as those with Smart Grid applications where the
full price of the project (licence + services) is greater than $3M USD and/or
project change orders which exceed $1.5M USD, approval by the Executive Vice
President, Smart Grid IT will be one of the process approvals included in the
formal project proposal approval cycle including the preliminary and the final
pricing prior to proposal delivery to the customer;
	 
	(3)	 	In cooperation with the President, Telvent Energy, lead and maintain
relationships with key external Smart Grid third parties, assess partnerships,
common development, as well licensing opportunities for Telvent Energy.
Practically, the Executive Vice President, Smart Grid IT is authorized to
contact, initiate and lead discussion with potential strategic partners in the
Smart Grid area reporting to the management team of Telvent, in the case of cross
vertical impact, and Telvent Energy the strategy, evolution and commitments
contemplated in these discussions and will approve Smart Grid alliances in the
formal executive approval cycle.
	 
	(4)	 	Be an expert with respect to the competition and competitive strategies in
the global segment;
	 
	(5)	 	To lead and develop the core positioning and messaging of the Smart Grid IT
Solution Suite in the market in coordination with geographic marketing and sales
functions;
	 
	(6)	 	To direct development of sales tools and collateral in concert with product
management activities and in coordination with geographic marketing and sales;
	 
	(7)	 	Brief and train the sales force at quarterly sales meetings;
	 
	(8)	 	Where ever possible and appropriate, lead and orchestrate the preparation of
technical tender and winning proposal documentation, product demos for customers
on site or at marketing events such as trade shows;
	 
	(9)	 	Brief press and industry analysts at conferences, briefings and market
events;
	 
	(10)	 	Set pricing and manage costs to meet revenue and profitability goals;
	 
	(11)	 	Deliver quarterly product line revenue forecasts;

Page 40

 

	(12)	 	Direct the research, preparation, presentation and proposal of annual and
multi-year budgets that will ensure success and meet internal and external
customer needs;
	 
	(13)	 	Will be authorized together with the other senior members of the Telvent
Energy management team to monitor and supervise the project execution and
delivery of Smart Grid projects on behalf of senior management including
authorization to escalate project execution problems in the Telvent Energy
organization identified directly or indirectly by the client

The Executive Vice President, Smart Grid IT will have full access to the Action
Commercial and its complete functionality including authorization to specifically
make requests of the members of the sales, marketing, product management, deliver
and support staff and users of the tool to provide updates of the different
commercial opportunities or customer activities. The sales tracking tool and the
Vice President, Smart Grid IT’s authority level in the tool or direct requests,
will automatically provide frequent updates to sales, project, customer and third
party activities.

The Executive Vice President, Smart Grid IT shall be responsible to train a sales
and project support workforce with engineers from both or either Telvent Energy,
Telvent DMS or other consultants or institutions with the important and immediate
objective of ensuring the resource capability and ability to add project specific
functions required by and committed to customers exclusive of dedicated product
development program resources.

Page 41

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