Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.7  

 
 

WESTERN GAS RESOURCES, INC.    
    
    2005 STOCK INCENTIVE PLAN    
    

Effective Date (as Approved by Stockholders):  

 May 6, 2005  

Prepared by
 HOLLAND & HART LLP  

ATTORNEYS AT LAW 

SUITE
3200

555 SEVENTEENTH STREET

DENVER, COLORADO 80202-3979

(303) 295-8000 

ASPEN
• BILLINGS • BOISE • BOULDER • CASPER • CHEYENNE • COLORADO SPRINGS • DENVER

DENVER TECH CENTER • JACKSON HOLE • SALT LAKE CITY • SANTA FE • WASHINGTON, D.C. 

   WESTERN GAS RESOURCES, INC.

2005 STOCK INCENTIVE PLAN

TABLE OF CONTENTS  

	ARTICLE 1. DEFINITIONS	 	1
	1.1	 	Award	 	1
	1.2	 	Board of Directors	 	1
	1.3	 	Cause	 	1
	1.4	 	Change in Control Event	 	1
	1.5	 	Code	 	1
	1.6	 	Common Stock or Stock	 	1
	1.7	 	Continuous Service	 	1
	1.8	 	Disability	 	2
	1.9	 	Effective Date	 	2
	1.10	 	Employee	 	2
	1.11	 	Fair Market Value	 	2
	1.12	 	Incentive Stock Option	 	2
	1.13	 	Nonqualified Stock Option	 	2
	1.14	 	Option	 	2
	1.15	 	Option Agreement	 	2
	1.16	 	Participant	 	2
	1.17	 	Plan Administrator	 	2
	1.18	 	Repriced	 	2
	1.19	 	Restricted Stock	 	2
	1.20	 	Restricted Stock Agreement	 	2
	1.21	 	Restriction Period	 	3
	
ARTICLE 2. EFFECTIVE DATE	
 	
3
	
ARTICLE 3. ADMINISTRATION	
 	
3
	3.1	 	Plan Administrator	 	3
	3.2	 	Meetings and Actions	 	3
	3.3	 	Powers of Plan Administrator	 	3
	3.4	 	Interpretation of Plan	 	3
	
ARTICLE 4. STOCK SUBJECT TO THE PLAN	
 	
3
	4.1	 	Plan Limits	 	3
	4.2	 	Individual Limits	 	4
	4.3	 	Unused Stock	 	4
	4.4	 	Adjustment for Change in Outstanding Shares	 	4
	4.5	 	Retention of Rights	 	4
	4.6	 	Cancellation of Award	 	4
	
ARTICLE 5. ELIGIBILITY	
 	
5
	5.1	 	Eligible Employees	 	5
	5.2	 	Disqualified Employees	 	5
	 	 	 	 	 

2

 

	
ARTICLE 6. STOCK OPTIONS	
 	
5
	6.1	 	Grant of Options	 	5
	6.2	 	Option Agreement	 	5
	6.3	 	Nontransferability of Options	 	6
	6.4	 	Manner of Exercise	 	6
	6.5	 	Payment of Option Exercise Price	 	6
	6.6	 	Termination of Continuous Service	 	7
	
ARTICLE 7. RESTRICTED STOCK	
 	
7
	7.1	 	Grant of Restricted Stock	 	7
	7.2	 	Restricted Stock Award Agreement	 	8
	7.3	 	Issuance of Restricted Stock	 	8
	7.4	 	Nontransferability of Restricted Stock	 	9
	7.5	 	Termination of Continuous Service	 	9
	
ARTICLE 8. CHANGE IN CONTROL	
 	
9
	
ARTICLE 9. ISSUANCE OF SHARES OF COMMON STOCK	
 	
9
	9.1	 	Transfer of Common Stock to Participant	 	9
	9.2	 	Legend	 	9
	9.3	 	Compliance With Laws	 	10
	
ARTICLE 10. AMENDMENT AND TERMINATION	
 	
10
	10.1	 	Amendment of the Plan	 	10
	10.2	 	Termination of the Plan	 	10
	
ARTICLE 11. GENERAL PROVISIONS	
 	
10
	11.1	 	No Employment Rights	 	10
	11.2	 	Other Employee Benefits	 	10
	11.3	 	Confidentiality of Information	 	11
	11.4	 	Severability	 	11
	11.5	 	Governing Law and Venue	 	11
	11.6	 	Use of Proceeds	 	11

3

WESTERN GAS RESOURCES, INC.

2005 STOCK INCENTIVE PLAN  

INTRODUCTION  

        The purpose of the Western Gas Resources, Inc. 2005 Stock Incentive Plan (the "Plan") is to further the growth and development of Western Gas
Resources, Inc., a Delaware corporation (the "Western Gas"), by affording an opportunity for stock ownership to selected Employees of the Western Gas and its subsidiaries (collectively, the
"Company"). The Plan is also intended to assist the Company in attracting new Employees and retaining existing Employees; to optimize the profitability and growth of the Company through incentives
that are consistent with the Company's goals; to provide incentives for excellence in individual performance; and to promote teamwork. 

ARTICLE 1.

DEFINITIONS  

        When used in this Plan, the following capitalized terms shall have the meanings set forth below unless a different meaning is plainly required by the context: 

        1.1   Award means the grant of Options or Restricted Stock under the Plan. 

        1.2   Board of Directors means the Board of Directors of Western Gas. 

        1.3   Cause means "Cause," as defined in the Participant's employment agreement, if applicable, or if the Participant has not
entered into an employment agreement with the Company, as determined in the sole and absolute discretion of the Company, a termination on account of dishonesty, fraud, misconduct, unauthorized use or
disclosure of confidential information or trade secrets or conviction or confession of a crime punishable by law (except minor violations), in each such case as determined by the Plan Administrator,
and its determination shall be conclusive and binding. Such actions constituting "Cause" shall include, without limitation, a violation of the Company's Code of Business Conduct and Ethics. A
Participant who agrees to resign from his or her affiliation with the Company in lieu of being terminated for Cause shall be deemed to have been terminated for Cause for purposes of the Plan. 

        1.4   Change in Control Event means the date on which one of the following, each referred to as a "Change in Control Event,"
shall have occurred: (a) the acquisition by any individual or legal entity or "group" (as described in Rule 13d-5(b) promulgated by the Securities and Exchange
Commission as now in effect under the Securities Exchange Act of 1934), of a number of voting shares of capital stock of Western Gas greater than 35% of the total voting power of the stock of Western
Gas; (b) a merger or consolidation of Western Gas other than a merger or consolidation immediately following which the directors of Western Gas prior thereto constitute a majority of the board
of the surviving company or parent thereof; (c) a change in the majority of the Board of Directors pursuant to an actual or threatened proxy contest; or (d) a sale of substantially all
of the Company's assets. The Plan Administrator's reasonable determination as to whether a Change in Control Event has occurred shall be final and conclusive. 

        1.5   Code means the Internal Revenue Code of 1986, as amended from time to time. 

        1.6   Common Stock or Stock means the Company's common stock and any share or shares of the Company's capital stock hereafter
issued or issuable in substitution for such shares of common stock. 

        1.7   Continuous Service means that the Participant's service with the Company or its Subsidiary is not interrupted (other than
pursuant to the Company's paid time off policy or as required by law) or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the
affiliated entity for which the Participant renders such service, provided that there is otherwise no interruption or termination of the Participant's Continuous Service. The Plan Administrator, in
its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by the Company, other than a leave pursuant to the Company's
paid time off policy or as required by law. 

 

        1.8   Disability means the Participant is determined to be disabled for purposes of the Company's long-term
disability plan, if any. If no Company long-term disability plan covers the Participant, "Disability" shall mean the date on which the Plan Administrator makes a final determination that
the Participant is suffering from a physical or mental impairment which the Plan Administrator determines renders the Participant physically or mentally unable to continue to fulfill his or her duties
as an active Employee at his or her assigned level of responsibility or competence, and which thereafter prevents him or her from being able to resume such duties or their equivalent. 

        1.9   Effective Date means the effective date of the Plan as specified in Article 2. 

        1.10 Employee means a common law employee of the Company and any person who has accepted a binding offer of employment from
the Company, but excludes any individual classified by the Company as an independent contractor or leased employee. 

        1.11 Fair Market Value means the value of the Common Stock, determined by reference to the New York Stock Exchange Composite
Transactions average closing price for the Common Stock reflected in The Wall Street Journal or another publication selected by the Board of Directors for the ten (10) days preceding the day
the Award is granted to each eligible Employee. If the Common Stock has not been traded on the New York Stock Exchange for more than 10 days immediately preceding the granting of an Award, or
if deemed appropriate by the Board for any other reason, the Fair Market Value of the Common Stock shall be as determined by the Board in such other manner as it may deem appropriate. 

        1.12 Incentive Stock Option means any option granted to an eligible Employee under the Plan, which the Company intends at the
time the option is granted to be an Incentive Stock Option within the meaning of Code Section 422. 

        1.13 Nonqualified Stock Option means any option granted to an eligible Employee under the Plan that is not an Incentive Stock
Option. 

        1.14 Option means and refers collectively to Incentive Stock Options and Nonqualified Stock Options. 

        1.15 Option Agreement means the agreement specified in Section 6.2. 

        1.16 Participant means any Employee who is granted an Award under the Plan. Participant also means the personal
representative of a Participant and any other person who acquires the right to exercise or receive payment pursuant to an Award by bequest or inheritance. 

        1.17 Plan Administrator means the body that is responsible for the administration of the Plan, as determined pursuant to  Section 3.1. 

        1.18 Repriced means any amendment or adjustment of the Exercise Price of an Option or the purchase price, if applicable, of
Restricted Stock through amendment, cancellation, replacement grants or any other means. Repriced shall also include any other action considered a
repricing under requirements of the New York Stock Exchange. 

        1.19 Restricted Stock means Common Stock granted to a Participant that is subject to the restrictions set forth in  Article 7 of the Plan and the Restricted Stock
Agreement. Restricted Stock also means any shares
of the Company's capital stock issued as the result of a dividend on or split of Restricted Stock. Upon termination of the restrictions, such Common Stock or other capital stock shall no longer be
Restricted Stock. 

        1.20 Restricted Stock Agreement means the agreement specified in  Section 7.2 between the Company and a Participant pursuant to which Restricted Stock is granted
to the Participant. 

2

 

        1.21 Restriction Period means the period set forth in the Restricted Stock Agreement that is the period beginning on the date
of grant of the Award and ending on the final vesting date of the Restricted Stock. 

ARTICLE 2.

EFFECTIVE DATE  

        The Effective Date of the Plan shall be the date on which the Plan is approved by the stockholders of Western Gas. 

ARTICLE 3.

ADMINISTRATION  

        3.1   Plan Administrator. The Plan shall be administered by the Board of Directors, unless and until such time as the Board of
Directors delegates the administration of the Plan to the Compensation Committee of the Board of Directors or to another similarly serving committee of the Board of Directors, which shall be appointed
by and shall serve at the pleasure of the Board of Directors. Any committee member shall be deemed to have resigned automatically from the committee upon his or her termination of service on the Board
of Directors. 

        3.2   Meetings and Actions. The Plan Administrator shall hold meetings at such times and places as it may determine. A majority
of the members of any committee serving as Plan Administrator shall constitute a quorum, and the acts of the majority of the members present at a meeting or a consent in writing signed by all members
of the Plan Administrator shall be the acts of the Plan Administrator and shall be final, binding and conclusive upon all persons, including the Company, its stockholders, and all persons having any
interest in Awards that may be or have been granted pursuant to the Plan. 

        3.3   Powers of Plan Administrator. The Plan Administrator shall have the full and exclusive right to grant and determine terms
and conditions of all Awards granted under the Plan and to prescribe, amend and rescind rules and regulations for administration of the Plan. In selecting Participants and granting Awards, the Plan
Administrator shall take into consideration the contribution the Participant has made or may make to the success of the Company and such other factors as the Plan Administrator shall determine. 

        3.4   Interpretation of Plan. The Plan Administrator may correct any defect, supply any omission, or reconcile any
inconsistency in the Plan or in any agreement entered into hereunder. The determination of the Plan Administrator as to any disputed question arising under the Plan, including questions of
construction and interpretation, shall be final, binding and conclusive upon all persons, including the Company, its stockholders, and all persons having any interest in Awards that may be or have
been granted pursuant to the Plan. 

ARTICLE 4.

STOCK SUBJECT TO THE PLAN  

        4.1   Plan Limits. Subject to the provisions of Section 4.4, the
aggregate number of shares of Common Stock that may be issued under the Plan shall not exceed the following designated shares of Common Stock outstanding as of the Effective Date: 

	•
	With
respect to Options, 2.5 million shares, and

	•
	With
respect to Restricted Stock, 1.5 million shares. 

        Common
Stock that may be issued under Awards may consist, in whole or in part, of authorized but unissued stock or treasury stock of the Company not reserved for any other purpose. 

3

 

        4.2   Individual Limits. During any single calendar year, no Employee shall be eligible to be granted Options or Restricted
Stock exceeding 10% of each of the limits set forth in Section 4.1. 

        4.3   Unused Stock. If any outstanding Award under the Plan expires or for any other reason ceases to be exercisable, is
forfeited or repurchased by the Company, in whole or in part (other than upon exercise of an Option), the Common Stock subject to such Award (and as to which the Award had not been exercised) shall
continue to be available under the Plan or revert to the Plan to again be available for issuance under the Plan. Common Stock underlying vested and exercised Awards shall not be available for future
grant. 

        4.4   Adjustment for Change in Outstanding Shares. 

        (a)   In General. If there is any change, increase or decrease, in the outstanding shares of Common Stock that is effected
without receipt of additional consideration by the Company, by reason of a stock dividend, subdivision, reclassification, recapitalization, merger, consolidation, stock split, combination or exchange
of stock, issuance of stock pursuant to the Rights Agreement dated March 22, 2001, or other similar circumstances not involving the receipt of consideration by the Company (each a
Capitalization Event), then in each such event, the Plan Administrator shall make an appropriate adjustment in the aggregate number of shares of Common Stock available under the Plan, the number of
shares of Common Stock subject to each outstanding Award and the Option or Restricted Stock prices in order to prevent the dilution or enlargement of any Participant's rights. In the event of any
adjustment in the number of shares of Common Stock covered by any Award, including those provided in paragraph (b) below, each such Award shall cover only the number of full shares
resulting from such adjustment. The Plan Administrator's determinations in making any adjustment shall be final and conclusive. 

        (b)   Adjustments for Certain Distributions of Property. If the Company at any time distributes with respect to its Common
Stock securities or other property (except cash or Common Stock), a proportionate part of those securities or other property shall be set aside and delivered to the Participant when he exercises an
Option or the restrictions on Restricted Stock lapse. The securities or other property shall
be in the same ratio to the total securities and property set aside for the Participant as the number of shares of Common Stock with respect to which the Option is then exercised or the Restricted
Stock then vests is to the total shares of Common Stock subject to the Award. 

        (c)   Exceptions to Adjustment. Except as expressly provided herein, the issue by the Company of Common Stock of any class, or
securities convertible into or exchangeable for Common Stock of any class, for cash or property or for labor or services, or upon sale or upon exercise of rights or warrants to subscribe therefore, or
upon conversion of shares or obligations of the Company convertible into or exchangeable for Common Stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number of shares of Common Stock subject to any Award granted under the Plan. 

        4.5   Retention of Rights. The existence of this Plan and any Award granted pursuant to the Plan shall not affect the right or
power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other change in the Company's capital structure or its business, or a
merger or consolidation of the Company, or any issue of bonds, debentures, or preferred or preference stock ranking before or affecting the Common Stock, or the dissolution of the Company or any sale
or transfer of all or any part of the Company's assets or business, or any other corporate act or proceeding, whether similar or not. 

        4.6   Cancellation of Award. The Plan Administrator may at any time cancel an Award, whether vested or unvested, if the
Participant engages in conduct that the Plan Administrator in its sole discretion determines to be detrimental to the best interest of the Company. Without limiting the 

4

 

foregoing,
the Plan Administrator may cancel all or any portion of an Award, whether vested or unvested, if the Plan Administrator determines that the Participant has failed at any time during the
Participant's employment with the Company to comply with any policies or procedures of the Company, including the Company's Code of Business Conduct and Ethics. 

ARTICLE 5.

ELIGIBILITY  

        5.1   Eligible Employees. All full-time and part-time Employees of the Company are eligible to receive
an Award at the discretion of the Plan Administrator. 

        5.2   Disqualified Employees. Notwithstanding Section 5.1, no Award may
be granted to an Employee who, either directly or indirectly at the time an Award is granted, owns more than ten percent (10%) of the total combined voting power of all classes of Stock of Western
Gas. For purposes of this determination, an Employee shall be considered as owning the stock owned, directly or indirectly, by or for his spouse, brothers and sisters (whether by whole or
half-blood), ancestors, and lineal descendants; and stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust shall be considered as being owned
proportionally by or for a stockholder, partner, or otherwise as the case may be. 

ARTICLE 6.

STOCK OPTIONS  

        6.1   Grant of Options. The Plan Administrator may from time to time in its discretion determine which of the Employees of the
Company should receive Options, the type of Options to be granted (whether Incentive Stock Options or Nonqualified Stock Options), the number of shares of Common Stock subject to such Options, and the
dates on which such Options are to be granted. To the extent that an Option is granted under which the aggregate Fair Market Value (determined as of the time each Option is granted) of the Common
Stock with respect to which any of such Employee's Options are exercisable for the first time during a calendar year exceeds $100,000, the Options granted that exceed the annual limitation shall be
deemed to be Nonqualified Stock Options rather than Incentive Stock Options. 

        6.2   Option Agreement. Each grant of Options under the Plan shall be evidenced by a written Option Agreement setting forth the
terms upon which the Options are granted. Each Option Agreement shall designate the type of Options being granted (whether Incentive Stock Options or Nonqualified Stock Options), and shall state the
number of shares of Common Stock, as designated by the Plan Administrator, to which that Option pertains. More than one type of Option, and any combination of Options and Restricted Stock, may be
granted to an Employee. 

        (a)   Option Exercise Price. The purchase price of the Common Stock under each Option granted under the Plan shall not be less
than 100% of the Fair Market Value (determined as of the day the Option is granted) of the Common Stock subject to the Option (the "Exercise Price"). The Exercise Price of the Common Stock under each
Option is fixed and may not be Repriced. 

        (b)   Duration of Options. Each grant of Options shall be of a duration as specified in the Option Agreement; provided,
however, that the term of each Option grant shall not exceed the lesser of: (1) five (5) years from the date the participant has the right to exercise such Option or portion thereof; or
(2) seven (7) years from the date the Options are granted. 

        (c)   Vesting. The grant of Options may be subject to a vesting schedule, which shall be set forth in the Option Agreement, and
which may be waived or accelerated by the Plan Administrator at any time. To the extent required by applicable state securities law, Options subject to a vesting 

5

 

schedule
shall vest at least as rapidly as 20% per year within the five years following the date of grant of the Option. 

        (d)   Rights as Stockholder. A Participant shall have no rights as a stockholder of the Company with respect to the Common
Stock covered by an Option until the date of the issuance of the stock certificate for such Common Stock. 

        (e)   Other Terms and Conditions. The Option Agreement may contain such other provisions, which shall not be inconsistent with
the Plan, as the Plan Administrator shall deem appropriate, including, without limitation, provisions that relate to the Participant's ability to exercise an Option in whole or in part due to the
passage of time or the achievement of specific goals or the occurrence of certain events, as specified by the Plan Administrator. Notwithstanding the foregoing, the Option Agreement may not contain
any term that would cause the Option not to comply in all respects with Code Section 409A and related regulations. 

        6.3   Nontransferability of Options. Options granted pursuant to the Plan are not transferable by the Participant other than by
will or the laws of descent and distribution and shall be exercisable during the Participant's lifetime only by the Participant. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise
dispose of the Options contrary to the provisions hereof, or upon the levy of any attachment or similar process upon the Option, the Option shall immediately become null and void. Notwithstanding the
foregoing, to the extent specified in an Option Agreement, an Option may be transferred by a Participant solely to (1) the Participant's immediate family (children, grandchildren, or spouse) or
trusts or other entities established for the benefit of the Participant's immediate family; or (2) the trust underlying a nonqualified deferred compensation plan established and maintained by
the Company, to the extent specifically permitted in the trust agreement; provided that the transferability of an Option under this section shall be limited to the extent transfer is permitted
by Rule 701 of the Securities Act, if and as required by applicable state securities law. Any such transfer of an Incentive Stock Option shall result in the conversion of the Option to a
Nonqualified Stock Option. 

        6.4   Manner of Exercise. Subject to the limitations and conditions of the Plan or the Option Agreement, an Option shall be
exercisable, in whole or in part, from time to time, by giving written notice of exercise to the Chief Financial Officer of the Company or such other individual, as directed from time to time by the
Plan Administrator. The notice shall specify the number of whole shares of Common Stock to be purchased and shall be accompanied by (a) payment in full to the Company of the Exercise Price
under Section 6.2(a); plus (b) for Nonqualified Stock Options, payment in full of such amount as the Plan Administrator shall determine to be sufficient to satisfy any liability the
Company may have for any withholding of federal, state or local income or other taxes incurred by reason of the exercise of the Option. At the Plan Administrator's discretion, payment in full of such
amount as the Plan Administrator shall determine to be sufficient to satisfy any liability the Company may have for any withholding of federal, state or local income or other taxes incurred may also
be requested upon the exercise of an Incentive Stock Option. Except as provided in Section 6.5, the conditions of this  Section 6.4 shall be
satisfied at the time that the Option or any part thereof is exercised, and no Common Stock shall be issued or delivered
until such conditions have been satisfied by the Participant. 

        6.5   Payment of Option Exercise Price. Payment for Common Stock underlying the Option shall be in the form of either
(a) personal check, (b) a certified or bank cashier's check to the order of the Company, (c) shares of Common Stock, properly endorsed to the Company, in an amount the Fair Market
Value of which on the date of receipt by the Company equals or exceeds the aggregate Exercise Price for the Option, provided that such Stock has been held outright by the Participant for at least
six months, (d) any other form of legal consideration that may be acceptable to the Plan Administrator, or (e) in any combination thereof; provided, however, that no payment may
be made in Common Stock 

6

 

unless
the Plan Administrator has approved of payment in such form by such Participant with respect to the Option exercise in question. Payment for withholding taxes shall be in the form of cash. 

        6.6   Termination of Continuous Service. Other than as prescribed in Section 8, any vesting of the Option shall cease
upon termination of the Participant's Continuous Service, and the Option shall be exercisable only to the extent that it was exercisable on the date of such termination of Continuous Service. Any
Option not exercisable as of the date of termination, and any Option or portions thereof not exercised within the period specified herein, shall terminate. 

        (a)   Termination Other than for Cause. Subject to any limitations set forth in the Option Agreement, and provided that the
notice of exercise is provided as required by Section 6.4 prior to the expiration of the Option, the Participant shall be entitled to exercise
the Option (i) during the Participant's Continuous Service, and (ii) for a period of ninety (90) calendar days after the date of termination of the Participant's Continuous
Service for reason other than Cause, or such longer period as may be set forth in the Option Agreement. 

        (b)   Termination by Death. Notwithstanding paragraph (a), if a Participant's Continuous Service should terminate as a
result of the Participant's death, or if a Participant should die within a period of three months after termination of the Participant's Continuous Service under circumstances in which
paragraph (a) would permit the exercise of the Option following termination, the personal representatives of the Participant's estate or the person or persons who shall have acquired the
Option from the Participant by bequest or inheritance may exercise the Option at any time within one year after the date of death, but not later than the expiration date of the Option. 

        (c)   Termination by Disability. Notwithstanding paragraph (a), if a Participant's Continuous Service should terminate
by reason of the Participant's Disability the Participant may exercise the Option at any time within the earlier of (i) one year after the date of termination and (ii) thirty
(30) days after the Participant no longer has a Disability, but in any event not later than the expiration date of the Option. 

        (d)   Termination for Cause; Breach of Covenant Not to Compete or Nondisclosure Agreement. Notwithstanding anything herein to
the contrary, and unless otherwise provided by the Option Agreement, all unexercised Options shall terminate immediately if the Participant is terminated for Cause, breaches any obligation under a
covenant not to compete with the Company, or breaches any obligation under an agreement not to use or disclose proprietary information obtained from or through the Company, upon such occurrence. 

        (e)   Extension of Option Termination Date. The Plan Administrator, in its sole discretion, may extend the termination date of
an Option granted under the Plan without regard to the preceding provisions of this Section 6.6. Such extension may be made in the Option
Agreement as originally executed or by amendment to the Option Agreement, either prior to or following termination of a Participant's Continuous Service. The Plan Administrator shall have no power to
extend the termination date of an Incentive Stock Option beyond the periods provided in paragraphs (a), (b) and (c) prior to the termination of the Participant's Continuous Service or
without the approval of the Participant, which may be granted or withheld in the Participant's sole discretion. Any extension of the termination date of an Incentive Stock Option shall be deemed to be
the grant of a new Option for purposes of the Code. 

ARTICLE 7.

RESTRICTED STOCK  

        7.1   Grant of Restricted Stock. The Plan Administrator may from time to time in its sole discretion determine which of the
Employees should receive grants of Restricted Stock, the number of shares of 

7

 

Restricted
Stock to be granted to each Employee, the dates on which such shares of Restricted Stock are to be granted, and the restrictions applicable to each grant of shares of Restricted Stock. 

        7.2   Restricted Stock Agreement. Each grant of Restricted Stock under the Plan shall be evidenced by a written Restricted
Stock Agreement setting forth the terms upon which the Restricted Stock is granted. Each Restricted Stock Agreement shall state the number of shares of Common Stock, as designated by the Plan
Administrator, to which that Restricted Stock Award pertains; the price, if any, to be paid by the Participant for the Restricted Stock; and the restrictions applicable to each grant of Restricted
Stock. More than one grant of Restricted Stock may be granted to an Employee. The terms of any Restricted Stock Agreement need not be identical to the terms of any other Restricted Stock Agreement
applicable to other grants of Restricted Stock under the Plan to the same or other Participants. No Restricted Stock shall be issued under the Plan until the Participant provides the Company with a
signed Restricted Stock Agreement in the form specified by the Plan Administrator. 

        7.3   Issuance of Restricted Stock. If a purchase price for Restricted Stock is imposed, the Participant's right to receive
Restricted Stock shall be conditioned upon the delivery by the Participant of (i) payment in full, by check or by certified or bank cashier's check to the Company (or payment by such other
consideration as shall be permitted by the Plan Administrator) or, upon approval of the Plan Administrator, shares of the Common Stock, properly endorsed to the Company, in an amount the Fair Market
Value of which on the date of receipt by the Company equals or exceeds the aggregate purchase price of the Common Stock; (ii) payment in similar form equal to such amount as the Company shall
determine to be sufficient to satisfy any liability it may have for any withholding of federal, state or local income or other taxes incurred by reason of the vesting of the Restricted Stock or the
Participant's election under Code Section 83(b); and (iii) a copy of the executed Restricted Stock Agreement in the form specified by the Plan Administrator. 

        (a)   Purchase Price. A purchase price shall not be required for Restricted Stock, except to the extent required by applicable
state securities law. Once established, the purchase price of the Restricted Stock is fixed and may not be Repriced. 

        (b)   Vesting. Restricted Stock may be subject to a vesting schedule, which shall be set forth in the Restricted Stock
Agreement, and which may be waived or accelerated by the Plan Administrator at any time. Unless otherwise provided in the Restricted Stock Agreement, Restricted Stock shall not begin to vest prior to
the first anniversary of the date of the Award; provided, that, to the extent required by applicable state securities law, Restricted Stock subject to a vesting schedule shall vest at least as rapidly
as 20% per year within the five years following the date of grant of the Restricted Stock. 

        (c)   Stock Certificates. The stock certificate or certificates representing the Restricted Stock shall be registered in the
name of the Participant to whom such Restricted Stock shall have been granted. Such certificates shall remain in the custody of the Company and the Participant shall deposit with the Company stock
powers or other instruments of assignment, each endorsed in blank, so as to permit retransfer to the Company of all or a portion of the Restricted Stock that shall be forfeited or otherwise not become
vested in accordance with the Plan and the applicable Restricted Stock Agreement. 

        (d)   Restrictions and Rights. Restricted Stock shall constitute issued and outstanding shares of Common Stock for all
corporate purposes. The Participant shall have the right to vote such Restricted Stock, to receive and retain all regular cash dividends and such other distributions, as the Board of Directors may, in
its discretion, designate, pay or distribute on such Restricted Stock, and to exercise all other rights, powers and privileges of a holder of Common Stock with respect to such Restricted Stock, except
as set forth in this Article 7. The Restricted Stock Agreement may contain such other provisions, which shall not be inconsistent with the Plan,
as the Plan Administrator shall deem appropriate. 

8

 

        (e)   Forfeiture. If the Participant fails to satisfy any applicable restrictions, terms and conditions set forth in this Plan
or in the Restricted Stock Agreement for any reason, any Restricted Stock held by such Participant and affected by such conditions shall be forfeited to the Company in return for such consideration as
shall be specified in the Restricted Stock Agreement. The Company and its officers are authorized to reflect such forfeiture of Restricted Stock on the Company's stock ledger. 

        7.4   Nontransferability of Restricted Stock. Restricted Stock granted pursuant to the Plan is not transferable by the
Participant until all restrictions on such Restricted Stock shall have lapsed. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Restricted Stock, contrary to the
provisions hereof, or upon the levy of any attachment or similar process upon the Restricted Stock, the Restricted Stock shall immediately become null and void. Notwithstanding the foregoing, to the
extent specified in a Restricted Stock Agreement, Restricted Stock may be transferred by a Participant solely to (1) the Participant's immediate family (children, grandchildren, or spouse) or
trusts or other entities established for the benefit of the Participant's immediate family; or (2) the trust underlying a nonqualified deferred compensation plan established and maintained by
the Company, to the extent specifically permitted in the trust agreement; provided that the transferability of Restricted Stock under this section shall be limited to the extent transfer is
permitted by Rule 701 of the Securities Act, if and as required by applicable state securities law. 

        7.5   Termination of Continuous Service. In the event that a Participant terminates Continuous Service with the Company for any
reason any unvested Restricted Stock held by such Participant as of the date of such termination of Continuous Service shall be forfeited to the Company as of the date of termination of Continuous
Service. 

ARTICLE 8.

CHANGE IN CONTROL  

        In the event of a Change in Control Event, the vesting of all Awards held by Participants whose Continuous Service has not terminated shall be accelerated in
full. In anticipation of a Change in Control Event, the Plan Administrator may, upon written notice to all Participants holding Options, provide that all unexercised Options must be exercised upon the
Change in Control Event or within a
specified number of days of the date of such Change in Control Event or such Options will terminate. In response to such notice, a Participant may make an irrevocable election to exercise the
Participant's Option contingent upon and effective as of the effective date stated in such notice. Any Option shall terminate if not exercised upon the time frame state in the notice. 

ARTICLE 9.

ISSUANCE OF SHARES OF COMMON STOCK  

        9.1   Transfer of Common Stock to Participant. As soon as practicable after (a) a Participant has given the Company
written notice of exercise of an Option and has otherwise met the requirements of Section 6.2, with respect to an Option, or (b) a
Participant has satisfied any applicable restrictions, terms and conditions set forth in this Plan or in the Restricted Stock Agreement with respect to Restricted Stock, the Company shall register a
certificate in such Participant's name for the Common Stock as to which the Option has been exercised or the Restricted Stock Award has been satisfied and shall, upon the Participant's request,
deliver such certificate to the Participant. In no event shall the Company be required to transfer fractional shares of Common Stock to the Participant, and in lieu thereof, the Company may pay an
amount in cash equal to the Fair Market Value of such fractional shares of Common Stock on the date of exercise or vesting, as applicable. 

        9.2   Legend. All certificates evidencing shares of Common Stock originally issued pursuant to this Plan or subsequently
transferred to any person or entity, and any shares of capital stock received in 

9

 

respect
thereof, may bear such legends and transfer restrictions as the Company shall deem reasonably necessary or desirable, including, without limitation, legends restricting transfer of the Common
Stock until there has been compliance with federal and state securities laws and until the Participant or any other holder of the Common Stock has paid the Company such amounts as may be necessary in
order to satisfy any withholding tax liability of the Company. 

        9.3   Compliance With Laws. If the issuance or transfer of Common Stock by the Company would for any reason, in the opinion of
counsel for the Company, violate any applicable federal or state laws or regulations, the Company may delay issuance or transfer of such Stock to the Participant until compliance with such laws can
reasonably be obtained. In no event shall the Company be obligated to effect or obtain any listing, registration, qualification, consent or approval under any applicable federal or state laws or
regulations or any contract or agreement to which the Company is a party with respect to the issuance of any such Stock. If, after reasonable efforts, the Company is unable to obtain the authority
that counsel for the Company deems necessary for the lawful issuance and sale of Stock upon exercise of Options or vesting of an Award under the Plan, the Company shall be relieved from any liability
for failure to issue and sell Common Stock upon exercise of such Options or vesting of an Award unless and until such authority is obtained. 

ARTICLE 10.

AMENDMENT AND TERMINATION  

        10.1 Amendment of the Plan. The Board of Directors may at any time and from time to time alter, amend, suspend or terminate
the Plan or any part thereof as it may deem proper, except that no such action shall diminish or impair the rights under an Award previously granted. However, if Western Gas is listed on the New York
Stock Exchange or another public trading market, then any amendment that would require stockholder approval under the requirements of the New York Stock Exchange or such other public trading market,
as the case may be, shall only be effective when such stockholder approval is obtained. Subject to the terms and conditions of the Plan, the Plan Administrator may modify, extend or renew outstanding
Awards granted under the Plan, provided that such modification would not constitute a Repriced Award, and provided further that no such action shall diminish or impair the rights under an Award
previously granted without the consent of the Participant. 

        10.2 Termination of the Plan. This Plan shall terminate on the date that is the tenth anniversary of the Effective Date. The
Board of Directors may at any time suspend or terminate the Plan. No such suspension or termination shall diminish or impair the rights under an Award previously granted without the consent of the
Participant. Notwithstanding the foregoing, no Incentive Stock Options may be granted any time after ten years after the adoption by the Board of Directors of any amendments to the Plan that
constitute the adoption of a new plan for purposes of Code Section 422. 

ARTICLE 11.

GENERAL PROVISIONS  

        11.1 No Employment Rights. Nothing contained in this Plan or in any Award granted under the Plan shall confer upon any
Participant any right with respect to the continuation of such Participant's Continuous Service by the Company or interfere in any way with the right of the Company, subject to the terms of any
separate employment agreement to the contrary, at any time to terminate such Continuous Service or to increase or decrease the compensation of the Participant from the rate in existence at the time of
the grant of the Award. 

        11.2 Other Employee Benefits. Unless so provided by the applicable plan, the amount of compensation deemed to be received by
a Participant as a result of the exercise of an Award shall not constitute earnings with respect to which any other employee benefits of the person are determined, 

10

 

including
without limitation benefits under any pension, profit sharing, life insurance, or disability or other salary continuation plan. 

        11.3 Confidentiality of Information. Information regarding the grant of Awards under this Plan is confidential and may not be
shared by the Participant with anyone other than the Participant's immediate family and personal financial advisor and other person(s) designated by Participant by power of attorney or assignment, or
as otherwise required by law. 

        11.4 Severability. If any provision of this Plan is held by any court or governmental authority to be illegal or invalid for
any reason, such illegality or invalidity shall not affect the remaining provisions. Instead, each provision held to be illegal or invalid shall, if possible, be construed and enforced in a manner
that will give effect to the terms of such provision to the fullest extent possible while remaining legal and valid. 

        11.5 Governing Law and Venue. This Plan, and all Awards granted under this Plan, shall be construed and shall take effect in
accordance with the laws of the State of Colorado without regard to conflicts of laws principles. Resolution of any disputes under the Plan or any Award under the Plan shall only be held in courts in
Denver County, Colorado. 

        11.6 Use of Proceeds. Any proceeds received by the Company from the sale of shares of Common Stock under the Plan shall be
used for general corporate purposes. 

11

QuickLinks

WESTERN GAS RESOURCES, INC. 2005 STOCK INCENTIVE PLANExhibit 4.8

 

DE BRAUW

BLACKSTONE

WESBROEK

 

 

CONTRIBUTION AGREEMENT

 

entered into
between

 

NUTRECO
HOLDING N.V.

 

and

 

STOLT
SEA FARM INVESTMENTS B.V.

 

and

 

STOLT-NIELSEN
S.A.

 

and co-signed
for acknowledgement by

 

MARINE
HARVEST N.V.

 

relating to

the formation of a joint venture in respect of

fish farming, processing, marketing and sale activities of

Nutreco Holding N.V. and Stolt-Nielsen S.A.

to be undertaken by Marine Harvest N.V.

 

dated 3 December 2004

 

 

TABLE OF CONTENTS

 

	
  Clause

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  
	
  1.1

  	
  Definitions

  	
   

  
	
  1.2

  	
  References to persons and companies

  	
   

  
	
  1.3

  	
  References to Clauses, Schedules, Paragraphs and
  Parts

  	
   

  
	
  1.4

  	
  References to members of a Group; singular liability
  and right to claim

  	
   

  
	
  1.5

  	
  References to subsidiaries and holding companies

  	
   

  
	
  1.6

  	
  Reference to the Parties

  	
   

  
	
  1.7

  	
  Other references

  	
   

  
	
  1.8

  	
  Information

  	
   

  
	
  1.9

  	
  Legal terms

  	
   

  
	
  1.10

  	
  Ordinary course of business

  	
   

  
	
  1.11

  	
  Arm’s length

  	
   

  
	
  2.

  	
  Contribution

  	
   

  
	
  2.1

  	
  Contribution

  	
   

  
	
  2.2

  	
  Contribution Structure

  	
   

  
	
  2.3

  	
  Allocation and adjustment

  	
   

  
	
  2.4

  	
  Share premium reserve

  	
   

  
	
  3.

  	
  Conditions Precedent

  	
   

  
	
  3.1

  	
  Conditions

  	
   

  
	
  3.2

  	
  Responsibility for satisfaction

  	
   

  
	
  4.

  	
  Pre-Closing covenants

  	
   

  
	
  4.1

  	
  Conduct of business

  	
   

  
	
  4.2

  	
  Excused conduct

  	
   

  
	
  4.3

  	
  Access to the business

  	
   

  
	
  4.4

  	
  Intra-group agreements

  	
   

  
	
  4.5

  	
  Tuna Supply Agreement

  	
   

  
	
  4.6

  	
  Benefits and losses JV Activities

  	
   

  
	
  5.

  	
  Closing

  	
   

  
	
  5.1

  	
  Date and place

  	
   

  
	
  5.2

  	
  Closing events

  	
   

  
	
  5.3

  	
  Shareholders loans; Repayment of intra-group
  indebtedness

  	
   

  
	
  5.4

  	
  Deferred Closing

  	
   

  
	
  5.5

  	
  ARC Employees

  	
   

  
	
  5.6

  	
  Benefit and risk

  	
   

  
	
  6.

  	
  Post-Closing contributions adjustments

  	
   

  
	
  6.1

  	
  Nutreco Closing Financial Statements

  	
   

  
	
  6.2

  	
  Stolt Closing Financial Statements

  	
   

  
	
  6.3

  	
  Closing Financial Statements Adjustments

  	
   

  
	
  7.

  	
  Post-Closing obligations

  	
   

  
	
  7.1

  	
  Release of Guarantees

  	
   

  
				

 

2

 

	
  7.2

  	
  Use of names

  	
   

  
	
  7.3

  	
  Retention of records

  	
   

  
	
  7.4

  	
  Insurance

  	
   

  
	
  7.5

  	
  Licences

  	
   

  
	
  7.6

  	
  Retirement Benefits

  	
   

  
	
  7.7

  	
  Cod impairment adjustment

  	
   

  
	
  7.8

  	
  Tax indemnity and covenants

  	
   

  
	
  8.

  	
  Warranties

  	
   

  
	
  8.1

  	
  Nutreco Warranties

  	
   

  
	
  8.2

  	
  Stolt Warranties

  	
   

  
	
  8.3

  	
  Disclosure

  	
   

  
	
  8.4

  	
  Updating of Warranties to Closing

  	
   

  
	
  8.5

  	
  Liability for breach

  	
   

  
	
  9.

  	
  Limitation of liability

  	
   

  
	
  9.1

  	
  Time limitation

  	
   

  
	
  9.2

  	
  Minimum claims

  	
   

  
	
  9.3

  	
  Aggregate minimum claims

  	
   

  
	
  9.4

  	
  Provisions

  	
   

  
	
  9.5

  	
  Insurance

  	
   

  
	
  9.6

  	
  Net financial benefit

  	
   

  
	
  9.7

  	
  Mitigation of Losses

  	
   

  
	
  9.8

  	
  Double claims

  	
   

  
	
  9.9

  	
  No limitations on indemnities

  	
   

  
	
  10.

  	
  Indemnities

  	
   

  
	
  10.1

  	
  Nutreco indemnity

  	
   

  
	
  10.2

  	
  Stolt indemnity

  	
   

  
	
  10.3

  	
  Liability

  	
   

  
	
  10.4

  	
  Indemnity Company

  	
   

  
	
  10.5

  	
  No limitations

  	
   

  
	
  11.

  	
  Claims

  	
   

  
	
  11.1

  	
  Notification of potential claims

  	
   

  
	
  11.2

  	
  Notification of claims

  	
   

  
	
  11.3

  	
  Costs

  	
   

  
	
  11.4

  	
  Procedure for third party claims

  	
   

  
	
  11.5

  	
  Information

  	
   

  
	
  12.

  	
  Joint and several liability Stolt; relationship
  Stolt B.V. and Stolt

  	
   

  
	
  12.1

  	
  Joint and several liability

  	
   

  
	
  12.2

  	
  Representation

  	
   

  
	
  12.3

  	
  Communication

  	
   

  
	
  13.

  	
  IPO

  	
   

  
	
  14.

  	
  Confidentiality

  	
   

  
	
  14.1

  	
  Announcements

  	
   

  
				

 

3

 

	
  14.2

  	
  Confidentiality undertaking

  	
   

  
	
  15.

  	
  Miscellaneous

  	
   

  
	
  15.1

  	
  Further assurances

  	
   

  
	
  15.2

  	
  Whole agreement

  	
   

  
	
  15.3

  	
  No assignment

  	
   

  
	
  15.4

  	
  Waiver

  	
   

  
	
  15.5

  	
  Variation

  	
   

  
	
  15.6

  	
  Third party rights

  	
   

  
	
  15.7

  	
  Rescission

  	
   

  
	
  15.8

  	
  Method of payment

  	
   

  
	
  15.9

  	
  Costs

  	
   

  
	
  15.10

  	
  Interest

  	
   

  
	
  15.11

  	
  Notices

  	
   

  
	
  15.12

  	
  Invalidity

  	
   

  
	
  15.13

  	
  Notary Rules of Professional Conduct

  	
   

  
	
  15.14

  	
  Counterparts

  	
   

  
	
  15.15

  	
  Completion of Schedule

  	
   

  
	
  15.16

  	
  Dispute resolution

  	
   

  
	
  15.17

  	
  Governing law

  	
   

  
	
  Schedule 1

  	
  Definitions

  	
   

  
	
  Schedule 2

  	
  Nutreco
  Activities

  	
   

  
	
  Schedule 2
  (Part 1)

  	
  Nutreco JV Companies

  	
   

  
	
  Schedule 2
  (Part 2)

  	
  Nutreco JV Businesses

  	
   

  
	
  Schedule 2
  (Part 3)

  	
  Nutreco Contribution Plan

  	
   

  
	
  Schedule 2 (Part 4)

  	
  Allocation Nutreco Activities

  	
   

  
	
  Schedule 3

  	
  Stolt
  Activities

  	
   

  
	
  Schedule 3
  (Part 1)

  	
  Stolt JV Companies

  	
   

  
	
  Schedule 3
  (Part 2)

  	
  Stolt JV Businesses

  	
   

  
	
  Schedule 3
  (Part 3)

  	
  Stolt Contribution Plan

  	
   

  
	
  Schedule 3 (Part 4)

  	
  Allocation Stolt Activities

  	
   

  
	
  Schedule 4

  	
  Closing
  obligations

  	
   

  
	
  Schedule 5

  	
  Shareholders Agreement

  	
   

  
	
  Schedule 6

  	
  Business Agreements

  	
   

  
	
  Schedule 7

  	
  Closing Financial Statements, Accounting
  Principles and Reporting Accountants

  	
   

  
	
  Schedule 7 (Part 1)

  	
  Nutreco Accounting Principles

  	
   

  
	
  Schedule 7 (Part 2)

  	
  Stolt Accounting Principles

  	
   

  
	
  Schedule 7 (Part 3)

  	
  Reporting Accountants

  	
   

  
	
  Schedule 8

  	
  Retirement
  Benefits

  	
   

  
	
  Schedule 9

  	
  Tax
  Indemnity and covenants

  	
   

  
	
  Schedule 10

  	
  Nutreco Warranties and Disclosure

  	
   

  
	
  Schedule 10
  (Part 1)

  	
  Nutreco
  Warranties

  	
   

  
	
  Schedule 10 (Part 2)

  	
  Nutreco Disclosure Letter

  	
   

  
				

 

4

 

	
  Schedule 10 (Part 3)

  	
  Individuals deemed to have
  knowledge of Nutreco Warranties

  	
   

  
	
  Schedule 11

  	
  Stolt
  Warranties and Disclosure

  	
   

  
	
  Schedule 11
  (Part 1)

  	
  Stolt Warranties

  	
   

  
	
  Schedule 11 (Part 2)

  	
  Stolt Disclosure Letter

  	
   

  
	
  Schedule 11 (Part 3)

  	
  Individuals deemed to have
  knowledge of Stolt Warranties

  	
   

  
	
  Schedule 12

  	
  Nutreco Accounts

  	
   

  
	
  Schedule 13

  	
  Stolt Accounts

  	
   

  
				

 

5

 

CONTRIBUTION AGREEMENT

 

THIS AGREEMENT IS MADE BETWEEN:

 

(1)           NUTRECO HOLDING N.V.,
a limited liability company incorporated in the Netherlands, with corporate
seat in Boxmeer, the Netherlands, and having its address at 38 Veerstraat, 5831
JN, Boxmeer, the Netherlands (“Nutreco”); 

 

(2)           STOLT SEA FARM INVESTMENTS B.V., a private company with limited liability incorporated in the
Netherlands, with corporate seat in Schiedam, and having its address at Karel
Doormanweg 25, 3115 JD Schiedam, the Netherlands (“Stolt B.V.”);
and 

 

(3)           STOLT-NIELSEN S.A., a
limited liability company incorporated in Luxembourg, with corporate seat in
Luxembourg, and having its address at 23 Avenue Monterey, L-2086
Luxembourg, Luxembourg (“Stolt”).

 

WHEREAS:

 

A.   •       Nutreco is an international
food company with activities in various stages of the fish, poultry and pork
production chains. Its business includes salmon and other fish farming
activities in Australia, Canada, Chile, Ireland, Japan, Norway and Scotland,
fish processing plants in Chile, France, Norway and Scotland and marketing operations
with sales organisations covering the Americas, Europe and Asia Pacific
(collectively: the “Nutreco Activities”,
which exclude Nutreco’s interest in L&K Karlsen Holding AS).

 

B.   •       Stolt is an international
company that, inter alia, at the time of the
Agreement through its wholly-owned indirect subsidiary Stolt Sea Farm Holdings
plc and at the time of Closing through its wholly-owned indirect subsidiary
Stolt B.V., produces, processes and markets a variety of seafood with
production sites in Belgium, Canada, Chile, Norway, Scotland and the United
States of America, and is developing commercial activities in relation to other
fish species and marketing operations with sales organisations covering North
America, Europe and Asia Pacific (collectively: the “Stolt
Activities”, which exclude the tuna and turbot (including sole)
activities of Stolt).

 

C.   •       On January 27, 2004, Nutreco and Stolt entered into a Confidentiality Agreement
pursuant to which Nutreco has provided certain confidential information regarding
the Nutreco Activities to Stolt and Stolt has provided certain confidential
information regarding the Stolt Activities to Nutreco.

 

D.   •       In the course of 2004, Nutreco
and Stolt discussed the creation of a joint venture, to combine the Nutreco Activities
and the Stolt Activities (the “JV Activities”)
and to contribute these activities to Marine Harvest N.V., a limited liability
company incorporated in the Netherlands (the “Company”)(the
“Transaction”). 

 

E.   •        On September 11, 2004,
Nutreco and Stolt entered into a Memorandum of Understanding establishing

 

6

 

certain principle terms with regard to the
Transaction.

 

F.   •        In the period September 2004-November 2004,
Nutreco and Stolt performed a financial, operational and legal due diligence
investigation of the Stolt Activities and the Nutreco Activities, respectively.

 

G.   •       The Company has been
incorporated by Nutreco and upon its incorporation issued the Nutreco Initial
Shares to Nutreco for a subscription price of EUR 45,000 (forty five thousand
euro) (the “Nutreco Initial Contribution”). 

 

H.   •       The Parties now wish to enter
into this Contribution Agreement, providing a framework agreement for the joint
venture contemplated herein, and setting out the terms on which the JV
Activities are intended to be contributed by Nutreco and Stolt B.V.,
respectively, to the Company.

 

I.   •         Stolt wishes to accept joint
and several liability for the obligations of Stolt B.V. under this Agreement.

 

HAVE
AGREED AS FOLLOWS:

 

1.             Interpretation

 

In this
Agreement, unless the context otherwise requires, the provisions in this Clause
1 apply throughout:

1.1          Definitions

 

Capitalised words, including those used in
the preamble to this Agreement, shall have the meaning as defined in Schedule 1.

 

1.2          References to persons and companies

 

References
to:

 

1.1.1       a
person include any individual, company, partnership or unincorporated
association (whether or not having separate legal personality); and

 

1.1.2       a
company include any company, corporation or body corporate, wherever
incorporated.

 

1.3          References to Clauses, Schedules, Paragraphs and Parts

 

A
reference in this Agreement to a Clause or Schedule is to the relevant
Clause of or Schedule to this Agreement; to a Part is to the relevant
Part of the relevant Schedule; and to a Paragraph is to the relevant
Paragraph of (the relevant Part of) the relevant Schedule.

 

1.4          References to members of a Group; singular liability and
right to claim

 

None of
the members of the Nutreco Group or the Stolt Group, with the exception of a
Party, shall have any liability under this Agreement and only the relevant
Party shall
be fully liable under this Agreement for any breach or non-performance thereof
by any of the relevant members of the
Nutreco

 

7

 

Group
or the Stolt Group. Each
Party may only seek recourse against the
relevant other Party for non-performance or breach by a relevant member of the
Nutreco Group or the Stolt Group.

 

1.5          References to subsidiaries and holding companies

 

A
company is a “subsidiary” of another company (its “holding company”) if the
holding company, directly or indirectly, through one or more subsidiaries:

 

1.5.1       holds
a majority of the voting rights in such company; 

 

1.5.2       is a
member or shareholder of such company and has the right to appoint or remove a
majority of its board of directors or equivalent managing body; or

 

1.5.3       is a
member or shareholder of such company and controls alone, or pursuant to an
agreement with other shareholders or members, a majority of the voting rights
in it.

 

1.6          Reference to the Parties

 

Whenever
used in this Agreement, references to “the other Party”, “each Party”, “the
Parties”, should mean a reference to Nutreco on the one hand and Stolt B.V. on
the other hand, Nutreco or Stolt B.V. or Nutreco and Stolt B.V., respectively ,
as appropriate, unless the context requires otherwise.

 

1.7          Other references

 

1.7.1       Whenever
used in this Agreement, the words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation”.

 

1.7.2       Any
reference in this Agreement to any gender shall include all genders, and words
importing the singular number only shall include the plural and vice versa, unless otherwise specified.

 

1.8          Information

 

References
to books, records or other information mean books, records or other information
in any form including paper, electronically stored data, magnetic media, film
and microfilm.

 

1.9          Legal terms

 

In
respect of any jurisdiction other than the Netherlands a reference to any Dutch
legal term shall be construed as a reference to the term or concept which most
nearly corresponds to it in that jurisdiction.

 

1.10        Ordinary course of business

 

An
action taken by a person will be deemed to have been taken in the “ordinary
course of business” only if:

 

1.10.1     such
action is consistent with the past practices of such person and is taken in the
ordinary course of the normal day-to-day operations of such person; and

 

1.10.2     such
action is similar in nature and magnitude to actions customarily taken, without
any

 

8

 

authorisation by the supervisory board or
other governing board or body exercising similar authority (where applicable)
of such person.

 

1.11        Arm’s length

 

Where
any provision is qualified or phrased by reference to an “arm’s length” basis
or principle, such qualification or reference shall mean the conditions which
would be obtained between comparable, independent persons in comparable
transactions (taking into account the assets used, the responsibilities and
risks assumed and the division of benefits between the parties) and comparable
circumstances (taking into account the times and places of performance and the
parties’ business strategies), thereby providing the closest approximation of
the workings of the open market.

 

2.             Contribution

 

2.1          Contribution

 

On and subject to the terms and conditions of this
Agreement, Nutreco shall (and shall procure that the
relevant members of the Nutreco Group shall) contribute the Nutreco Activities
to the Company and Stolt B.V. shall (and shall procure that the relevant members
of the Stolt Group shall) contribute the Stolt Activities to the Company and its subsidiaries (the “JV Group”).

 

2.2          Contribution Structure

 

The
contributions of the JV Activities and the JV Group shall be structured in
accordance with the contribution actions set out in Schedule 4 and the
respective Contribution Plans, unless otherwise agreed by the Parties.

 

2.3          Allocation and adjustment

 

2.3.1       The contributions of the JV Activities shall be allocated in
accordance with Schedule 2 (Part 4) and Schedule 3 (Part 4), respectively, and Nutreco and Stolt B.V. shall procure that each
relevant member of it’s Group, the Company and each relevant member of the JV
Group shall effect such allocation for all purposes, including in respect of
Tax.

 

2.3.2       Any payment made by Nutreco and Stolt B.V. pursuant to the post
Closing contributions adjustments set out in Clause 6 and the amount payable by
Nutreco pursuant to Clause 7.7 shall be deemed to be made by way, to the extent
possible, of adjustment to the (contributions of the) Nutreco Activities
and/or, as the case may be and as applicable, the Stolt Activities.

 

2.4          Share premium reserve

 

Notwithstanding any other reserves which
must be maintained by applicable Law or the articles of association of the
Company, the Company shall have one share premium reserve to which each of

 

9

 

Nutreco and Stolt B.V., as shareholders of
the Company, are equally entitled in proportion to the number of shares in the
share capital of the Company held by them. 

 

3.             Conditions
Precedent

 

3.1          Conditions 

 

Subject
to Clause 5.4 (relating to the possibility of having a deferred Closing),
Closing is conditional upon satisfaction or waiver of the following conditions
precedent (the “Conditions Precedent”):

 

3.1.1       Either:

 

(i)            The European Commission:

 

(a)           taking a decision that the Transaction does not give rise to a
concentration falling within the scope of the European Council Regulation (EEC)
139/2004 concerning the control of concentrations between undertakings (as
amended) (the “Regulation”); or

 

(b)           taking a decision, whether or not conditional, under Article 6(1)(b) or,
if the Commission has initiated proceedings pursuant to Article 6(1)(c),
under Article 8(2) of the Regulation declaring the Transaction
compatible with the common market, or being deemed to have done so under Article 10(6) of
the Regulation; or

 

(c)           having referred the whole or part of the Transaction to the
competent authorities of one or more Member States under Article 9(3) of
the Regulation or having been deemed to have done so under Article 9(5) of
the Regulation, and

 

(x)            each such authority granting a clearance, whether or not
conditional, in respect of all those parts of the Transaction which were
referred to it, or being deemed to have granted such a clearance; and

 

(y)           in respect of all those parts not referred to the competent
authority of any Member State, the requirements of Clause 3.1.1(i)(b) being
satisfied with respect to any part;

 

or

 

(ii)           in the event that the Transaction does not constitute a
concentration as referred to in Clause 3.1.1(i)(a), the competent authorities
of each of the relevant Member States having granted clearance, whether or not
conditional, under their respective competition laws for such part of the
Transaction which falls under their jurisdiction, to the extent that such
clearance is required, under mandatory Law, for Closing to take place;

 

3.1.2       the competent authorities in any non-EU member state having granted
clearance, whether or not conditional, under their respective competition laws
for such part of the Transaction which falls under their jurisdiction, to the
extent that such clearance is required, under mandatory Law, for Closing to
take place.

 

10

 

3.1.3       all
necessary approvals, licenses and consents from Governmental Authorities that
are required for the implementation of the Transaction having been obtained,
including, without limitation, any approvals or consents required in connection
with the transfer of licenses and other authorisations required in connection
with the transfer of the JV Activities;

 

3.1.4       all necessary commitments, approvals, waivers and consents from
current and prospective finance providers that are required for the
implementation of the Transaction or that are otherwise required for the
financing of the JV Group after the Closing having been obtained;

 

3.1.5       the
general meeting of shareholders of Nutreco having approved the Transaction;

 

3.1.6       Nutreco having (and having procured that the relevant members of the
Nutreco Group have) and Stolt having (and having procured that the relevant
members of the Stolt Group have) fulfilled all their respective legal
obligations to inform, obtain advice of and consult with employee
representatives in connection with the Transaction;

 

3.1.7       no
Material Adverse Change having occurred between the Signing Date and the
Closing Date; and

 

3.1.8       no material breach of Nutreco Warranties or Stolt Warranties having
occurred.

 

3.2          Responsibility for
satisfaction

 

3.2.1       To the
extent permitted under applicable Law, each of the Parties shall take all such
reasonable actions within its power as are necessary to ensure satisfaction of
and compliance with all of the Conditions Precedent.

 

3.2.2       Without
prejudice to the generality of Clause 3.2.1, the Parties shall: 

 

(i)            as soon as practicable, and in any event not later than 10 January 2005,
prepare and file with the competent Governmental Authorities the notices and
applications necessary to satisfy the Conditions Precedent set out in Clauses
3.1.1, 3.1.2 and 3.1.3;

 

(ii)           supply as promptly as practicable any additional information and
documentary material that may be requested by any competent Governmental
Authority in connection with any of the Conditions Precedent set out in Clauses
3.1.1, 3.1.2 and 3.1.3 provided that, with respect to any written submission,
information or documentary materials, the other Party shall have the right to
approve the same;

 

(iii)          use their best efforts to cause the expiration or termination of any
applicable waiting period under any applicable Law and the fulfilment (whether
explicit or implicit) of all of the Conditions Precedent set out in Clauses
3.1.1, 3.1.2 and 3.1.3 as soon as practicable, including by agreeing to (a) take
any action that may be required in order to obtain an unconditional clearance
(including by agreeing to perform any disposition of assets or businesses that
may be required by any relevant Governmental Authority) or (b) duly and
promptly comply with any condition that any relevant Governmental Authority may
impose to clear this Agreement and the Transaction, provided that (i) the
proceeds of any disposition of companies, assets or businesses which are part
of the JV Activities will be for the account and benefit of the Company and
will be contributed to the Company and (ii) nothing in this Agreement
shall require any of the

 

11

 

Parties to agree to or take any action or
comply with any condition which would, individually or in the aggregate,
reasonably be expected to be materially adverse to the business, financial
condition, assets or results of operations of the Nutreco Group or Stolt Group,
respectively, in each case taken as a whole, after consummating the Transaction.

 

3.2.3       Without
prejudice to Clause 15.9, all filing fees and other costs incurred in relation
to any anti-trust or similar filing required to be made in any jurisdiction in
connection with the Transaction and all costs, penalties and fines resulting
from not filing in any jurisdiction where it is determined that filing should
have taken place, shall be borne for 50% by Nutreco and for 50% by Stolt B.V.

 

3.2.4       Without prejudice to Clause 3.2.2, each of the Parties shall (i) promptly
co-operate with and provide all necessary information and assistance reasonably
required by any Governmental Authority in connection with the Conditions
Precedent set out in Clauses 3.1.1, 3.1.2 and 3.1.3 upon being requested to do
so by the other Party and (ii) promptly inform the other Party of any
communication received from, or given by it to, any Governmental Authority with
respect to any of the Conditions Precedent set out in Clauses 3.1.1, 3.1.2 and
3.1.3.

 

3.2.5       Subject to the obligations under Clauses 3.2.2(iii) and 3.2.3,
in the event that any administrative or judicial action or proceeding is
instituted (or threatened to be instituted) by a Governmental Authority or any
other person challenging (any part of) the Transaction, each Party shall
co-operate in all respects with the other Party and use its reasonable best
endeavours to defend, contest and resist any such action or proceeding and to
have vacated, lifted, reversed or overturned any order, whether temporary,
preliminary or permanent, that is in effect and that prohibits, prevents or
restricts the consummation of the Transaction.

 

3.3          Non-Satisfaction/Benefit
and Waiver

 

3.3.1       Within 2 (two) Business Days of becoming aware of the same, each
Party shall give notice to the other Party of satisfaction of any of the
Conditions Precedent set out in Clause 3.1 insofar as it relates to the legal
obligations of the notifying Party.

 

3.3.2       The Conditions Precedent, other than the condition set out in Clause
3.1.8, can be invoked by each Party and may only be waived by written agreement
between Nutreco and Stolt B.V.. The Condition Precedent set out in Clause 3.1.8
can only be invoked and waived by the Party in relation to which no material
breach of Warranties has occurred.

 

3.3.3       Subject to Clause 5.4, if the Conditions Precedent are not satisfied
or waived on or before 31 August 2005 Nutreco or Stolt B.V. may, in their
sole discretion, terminate this Agreement by written notice and no Party shall
have any claim against the other Parties save for any claim arising from breach
of any obligation contained in Clause 3.2, provided that no such termination
notice may be given by a Party which is in default of its obligations under
this Agreement. 

 

12

 

4.             Pre-Closing covenants

 

4.1          Conduct of business

 

Each of
Nutreco and Stolt B.V. undertakes to procure that between Signing and Closing,
in respect of the Nutreco Activities and the Stolt Activities, the relevant
members of the Nutreco Group and of the Stolt Group, respectively:

 

4.1.1       save as otherwise contemplated by the respective Contribution Plans,
carry on the business of the relevant Group as a going concern in the ordinary
course, maintain such business in the normal way and conduct it in all material
respects in accordance with all applicable legal and administrative
requirements in any relevant jurisdiction;

 

4.1.2       use their best efforts to (i) save as otherwise contemplated by
the respective Contribution Plans preserve intact the present business
organization, (ii) keep available the services of the present officers,
managing directors and key employees and similar persons and (iii) preserve
intact the present business relationships and goodwill;

 

4.1.3       pay all of their indebtedness and Taxes when due, prepare and file
or cause to be prepared and filed on a timely basis all of their Tax returns
that are due on or before the Closing Date and pay or perform any other
material obligations, when due, subject in each case to good faith disputes
with respect to the same;

 

4.1.4       notify the other Party without delay of (i) any change in the
financial situation and prospects of its Group, (ii) any official
investigation and complaint concerning its Group, any legal action taken
against its Group as well as any notification or communication that gives
notice of default to such Party or member of its Group under any material
agreement and (iii) any breach of such Party’s Warranties which becomes
apparent, occurs or threatens to occur;

 

4.1.5       keep
its business and assets adequately insured against all common risks;

 

4.1.6       without prejudice to the generality of Clauses 4.1.1 to 4.1.5, save
as contemplated by the respective Contribution Plans and any relevant provision
of this Agreement or consented to in writing by the other Party, such consent
not to be unreasonably withheld or delayed, do not:

 

(i)            enter into any agreement or incur any commitment involving any
capital expenditure in excess of  EUR
500,000 (five hundred thousand euro) per item and EUR 1,000,000 (one million
euro) in aggregate, in each case exclusive of VAT;

 

(ii)           enter into or amend any contract or commitment which (a) is not
capable of being terminated without compensation with 3 (three) months’ notice
or less, or (b) is not in the ordinary course of business, (c) is not
at arm’s length, or (d) involves or is likely to involve total annual
expenditure in excess of EUR 500,000 (five hundred thousand euro), exclusive of
VAT;

 

(iii)          acquire or dispose of, or agree to acquire or dispose of, any
material asset or material inventory involving consideration, expenditure or
liabilities in excess of EUR 500,000 (five hundred thousand euro), exclusive of
VAT, other than in the ordinary course of business;

 

(iv)          acquire or agree to acquire any share, shares or other interest in
any person, business or company;

 

(v)           enter into joint ventures, partnerships or strategic alliances
(including teaming agreements, pooling agreements and consortium agreements);

 

13

 

(vi)          reorganize or change the scope or nature of (the business of) its
Group;

 

(vii)         incur any additional borrowings or incur any other indebtedness in
each case in excess of EUR 1,000,000 (one million euro) and otherwise than in
the ordinary course of business;

 

(viii)        create, allot or issue, or allow to be created, issued or allotted,
any share capital of any company of its Group;

 

(ix)           repay, redeem or repurchase, or allow to be repaid, redeemed or
repurchased, any share capital of any company of its Group; 

 

(x)            declare, make or pay any dividend or other distribution to any
shareholders of any of the companies of its Group;

 

(xi)           other than pursuant to collective bargaining agreements applicable
to the respective Group, increase the rate of compensation payable or to become
payable to any key employee or enter into, amend or terminate any employment,
severance or similar or related agreement or any benefit scheme of arrangement
with any key employee; 

 

(xii)          create, or agree to create, any Encumbrance over its business or
material asset of its business other than Permitted Encumbrances;

 

(xiii)         commence material litigation, arbitration or binding advice
procedures;

 

(xiv)        apply for any of the companies of its Group to be declared bankrupt
or for a suspension of payments (or their equivalents outside the Netherlands);

 

(xv)         pass any resolution for the dissolution, liquidation or winding up
(or their equivalents outside the Netherlands) of any of its Group companies;
or

 

(xvi)        approve, materially modify or materially deviate from any business
plan or budget pertaining to the business of its Group (or part of it).

 

4.2          Excused conduct

 

Clause 4.1 does not apply if and to the
extent compliance with it would materially adversely
affect the ability of a Party to continue to manage its Group or materially
adversely affect the value of the relevant Group. It is further acknowledged
that where circumstances require an urgent and immediate action from the other
Party or management of the relevant Group, a Party may not be able to request
the consent of the other Party in a timely fashion or await a response from
such Party to such request, such Party shall nevertheless inform the other
Party of any such action taken not in compliance with Clause 4.1 immediately
thereafter.

 

4.3          Access to the business

 

4.3.1       Subject to Clause 4.3.2, each Party undertakes to procure that,
provided the other Party is in compliance with its obligations under this
Agreement, until Closing or, if earlier, termination of this Agreement, its
Group shall allow the other Party and its
representatives upon reasonable notice in writing to such Party, access during
normal working hours to the premises, books and records of or relating to the
other Party’s JV Activities.

 

4.3.2       The
obligation of each Party under Clause 4.3.1 shall be subject to the right to
refuse access on the grounds that access:

 

(i)            would be contrary to any applicable Law;

 

14

 

(ii)           would cause undue disruption to the relevant operations or
management of such Group; or

 

(iii)          would involve issues of commercial sensitivity and confidentiality
such that access could materially damage the value or competitiveness of the member of the relevant Group.

 

4.4          Intra-group agreements

 

Each
Party covenants that, except as expressly set out in this Agreement or
otherwise agreed by the Parties, all existing agreements and arrangements
between one or more members of its Group (excluding the JV Group) on the one
hand and one or more members of the JV Group on the other hand shall be
terminated prior to or at Closing.

 

4.5          Tuna Supply Agreement

 

Prior
to the Closing the Parties shall negotiate in good faith and agree on the terms
of the Tuna Supply Agreement pursuant to which the relevant members of the
Stolt Group shall supply to the relevant members of the JV Group at least 75%
(seventy five percent) of the tuna produced by the Stolt Group for a period of
at least 1 (one) year as of the Closing Date at terms not less favourable than
the existing tuna supply agreements, including, if applicable, a commission fee
between a range of 4% (four per cent) and 6% (six per cent).

 

4.6          Benefits and losses JV Activities

 

4.6.1       Each of the Parties shall, and shall procure that the relevant
members of its Group shall, ensure that all benefits and Losses as from and
including 31 August 2004 in respect of the Nutreco Activities and the
Stolt Activities, respectively, will be attributed to, will remain with and
will be re-invested in the Nutreco Activities and the Stolt Activities,
respectively.

 

4.6.2       The Parties agree that (i) the prices and payment terms of the
feed (to be) supplied by the relevant member of the Nutreco Group to the
relevant Nutreco JV Companies and Nutreco JV Businesses between 31 August 2004
until the Closing Date will be (deemed to be) the prices and payment terms
determined pursuant to the relevant provisions of the Supply Agreement and (ii) the
prices and payment terms of the feed (to be) supplied by the relevant member of
the Nutreco Group to the relevant members of the Stolt Group between 31 August 2004
until the Closing Date will be those set out in or determined pursuant to the
existing feed supply agreements.

 

4.6.3       The Parties agree that (i) the severance payments payable to
employees which are  employed in the JV Group shall be for the
account of the JV Group and (ii) that bonuses awarded to employees which
are employed in the JV Group and incentive plans entered into for the benefit
of such employees by members of the relevant Group prior to the Closing Date
will be included and taken into account in the relevant Closing Financial
Statements.

 

15

 

5.             Closing

 

5.1          Date and place

 

Subject
to Clause 5.4, Closing shall take place at 11.00 CET on the first Business Day
of the month following the month in which notification of the satisfaction or
waiver of the Conditions Precedent occurs and shall take place in Amsterdam,
the Netherlands, at the offices of Nutreco’s Lawyers, or at such other
location, time or date as may be agreed between the Parties. 

 

5.2          Closing events

 

5.2.1       It is agreed that each transaction and event set out in Clause 5.2.2
shall be regarded as a single transaction and event to be completed in
succession in the order set out in Clause 5.2.2, provided that the completion
of all of the transactions and events collectively constitute the Closing
pursuant to this Clause 5, and no transaction or event shall be deemed to have
taken place unless all transactions and events constituting the Closing shall
have taken place (or shall have been waived by the Parties) in succession on
the Closing Date.

 

5.2.2       At Closing, the Parties shall procure that:

 

(i)            Nutreco and the relevant members of the Nutreco Group shall
contribute the Nutreco Activities as non-stipulated share premium to the
Company and the Company shall accept the same and, if applicable, the Company
shall issue the Nutreco Additional Equity Instrument to Nutreco by execution of
the deed of contribution as set out in Annex 1 to Schedule 4;

 

(ii)           Stolt B.V. and the other relevant members of the Stolt Group shall
contribute the Stolt Activities as non-stipulated share premium to the Company
and the Company shall accept the same and shall issue the Stolt Shares against
payment in cash and, if applicable, the Company shall issue the Stolt
Additional Equity Instrument, by execution of the notarial deed of issue and
contribution as set out in Annex 2 to Schedule 4;

 

(iii)          the obligations and arrangements set out in Schedule 4 are
performed by Nutreco and the relevant members of the Nutreco Group for the
transfer and completion of the relevant Nutreco Activities to the Company and,
if applicable, the Nutreco Additional Equity Instrument;

 

(iv)          the obligations and
arrangements set out in Schedule 4 are performed by Stolt B.V. and the
relevant members of the Stolt Group for the transfer and completion of the
relevant Stolt Activities to the Company and, if applicable, the Stolt
Additional Equity Instrument;

 

(v)           the obligations and arrangements set out in Schedule 4 are
performed by the Company and the relevant members of the JV Group for the
acceptance of the transfer and completion of the contributions of the JV
Activities to the Company and the issuance of the shares and, if applicable,
the Additional Equity Instruments, including the delivery of a description of
the relevant contribution in kind prepared and signed by the management board
of the Company, specifying the nature and value of

 

16

 

such
contribution, together with an appropriate auditor’s statement in relation to
such contributions in kind;

 

(vi)          the Company’s Amended
Articles of Association shall be executed;

 

(vii)         Mr J.C. den Bieman and one
other person to be determined by the Parties shall be appointed managing
director of the Company and W. Dekker, N.G. Stolt-Nielsen and two other persons
to be determined by the Parties shall be appointed supervisory director of the
Company;

 

(viii)        the Managing Board Rules and
the Supervisory Board Rules shall be adopted;

 

(ix)           Nutreco and Stolt shall
enter into the Shareholders Agreement and the Company shall sign the same for
acknowledgement;

 

(x)            the relevant members of the Nutreco Group, the relevant members of
the Stolt Group and the relevant members of the JV Group shall enter into the
following agreements:

 

(a)           the Transitional Services Agreement;

 

(b)           the Supply Agreement; and

 

(c)           the Tuna Supply Agreement. 

 

5.3          Shareholders loans;
Repayment of intra-group indebtedness

 

5.3.1       Immediately following Closing, unless and to the extent the Parties
agree to continue the existing intra group financing in respect of the relevant
JV Activities for a certain (transitional) period after Closing:

 

(i)            Nutreco and Stolt B.V. shall procure that the relevant members of
their respective Groups shall provide subordinated shareholders loans to the
relevant members of the JV Group on a pro rata parte basis
to each Party’s relative stake in the Company if and to the extent at that time
no adequate third party financing for the JV Group has been arranged at
commercially acceptable conditions and if the Parties agree on the terms of such
shareholders loans; 

 

(ii)           Nutreco and Stolt B.V. shall procure that each relevant member of
its Group repays to the relevant member of the JV Group its respective
Intra-Group Receivables; and

 

(iii)          the Parties shall procure that the Company repays (and shall procure
that any other relevant member of the JV Group repays) to each relevant member
of the Nutreco Group and the Stolt Group, respectively, its respective
Intra-Group Payables.

 

5.3.2       Any payment and repayments made pursuant to Clause 5.3.1 shall to
the extent legally permissible, be aggregated and discharged by way of set-off.

 

5.4          Deferred Closing 

 

In the event that all Conditions Precedent have been
fulfilled or waived, save for one or more of those Conditions Precedent that
apply to certain part of the JV Activities in certain jurisdictions, the
Parties can agree that the Closing will occur except with respect to such JV
Activities (the “Deferred Activities”) and that the
Closing in the relevant jurisdiction will be deferred until the relevant
Condition Precedent has been fulfilled or waived (the “Deferred
Condition”). In that case:

 

5.4.1       Closing shall proceed on the terms of Clause
5.1 in respect of all other JV Activities (other

 

17

 

than the Deferred Activities with respect
to which the conditions precedent have not been fully met or waived) as if the
Deferred Condition was not Condition Precedent to said Closing, provided that
the post Closing adjustments pursuant to Clause 6 shall exclude the Deferred
Activities;

 

5.4.2       Closing in respect of the Deferred Activities shall commence at
11.00 CET on the 3rd (third) Business Day after notification of the
satisfaction or waiver of the Deferred Condition relating to the Deferred
Activities (day of notification excluded), and shall take place at such
location, time or date as may be agreed between the Parties; 

 

5.4.3       in
respect of the Deferred Activities, references in the Agreement to Closing and
Closing Date shall be deemed to be references to such deferred Closing and
deferred Closing Date, and, unless Parties agree otherwise, the post-Closing
adjustments pursuant to Clause 6 shall apply, mutatis
mutandis, to such deferred Closing; 

 

5.4.4       the
Parties shall co-operate to ensure that, until Closing occurs in respect of, or
Clause 5.4.3 becomes applicable to, the Deferred Activities, services and
commercial relations between, on the one hand, the JV Companies and JV
Businesses in respect of which Closing did take place, and, on the other hand,
the Deferred Activities, are maintained and rendered in the ordinary course of
business.

 

5.5          ARC Employees

 

The
Parties agree that the employees which are employed at the Signing Date in the
Nutreco Aqua Research Centre and are dedicated to the Nutreco JV Companies and
Nutreco JV Businesses shall transfer and become employed with the Company or
another member of the JV Group.

 

5.6          Benefit and risk

 

The
benefit in and risk of loss or damage to the JV Activities shall pass to the
Company or other relevant members of the JV Group as of 31 August 2004.
Title to the JV Activities shall pass to the Company or other relevant members
of the JV Group on the Closing Date.

 

6.             Post-Closing
contributions adjustments

 

6.1          Nutreco Closing Financial
Statements

 

6.1.1       As
soon as practicable and in any event by no later than 6 (six) weeks after the
Closing Date, Nutreco shall prepare and deliver to Stolt B.V. a draft of the
Nutreco Closing Financial Statements.

 

6.1.2       The draft Nutreco Closing Financial Statements shall be prepared in
accordance with the Nutreco Accounting Principles (adapted to IFRS) and will be
accompanied by a (draft) unqualified auditor’s statement from Nutreco’s
Accountant. 

 

6.1.3       In order to enable Stolt B.V. to review and form an opinion on the
preparation and determination of the draft Nutreco Closing Financial
Statements, the Parties shall procure that the Company shall (or shall procure
that the relevant members of the JV Group shall),

 

18

 

subject to reasonable notice, make
available such books and records, to the extent relating to the Nutreco Activities,
to Stolt B.V. and its representatives and advisers during normal office hours,
and shall co-operate with Stolt B.V. and its representatives and advisers both
with regard to their review of the preparation and determination of the draft
Nutreco Closing Financial Statements and in giving them explanations for
fluctuations and movements apparent from the draft Nutreco Closing Financial
Statements. 

 

6.1.4       If and to the extent that Stolt B.V. does not within 20 (twenty)
Business Days after receipt of the draft Nutreco Closing Financial Statements
give written notice to Nutreco that it disagrees with said draft financial
statements or any item thereof, the draft Nutreco Closing Financial Statements
shall be final and binding on Stolt B.V. (and each relevant member of the Stolt
Group) and the Company (and each relevant member of the JV Group) for all
purposes. If Stolt B.V. does give such notice within said period, Nutreco and
Stolt B.V. shall attempt in good faith to reach agreement in respect of the draft
Nutreco Closing Financial Statements and, if they are unable to do so within 20
(twenty) Business Days of such notification, Nutreco or Stolt B.V. may by
notice to the other Party require that the draft Nutreco Closing Financial
Statements, in whole or in part, be referred to the Reporting Accountants in
the terms of Schedule 7 (Part 3). The draft Nutreco Closing Financial
Statements will upon their being agreed or determined be referred to as “Nutreco
Closing Financial Statements”.

 

6.1.5       In order to enable the preparation and determination of the draft
Nutreco Closing Financial Statements, the Parties shall procure that the
Company shall (or shall procure that the relevant members of the JV Group
shall) keep all books and records relating to the JV Group, to the extent
relating to the Nutreco Activities up-to-date and, subject to reasonable
notice, make such books and records available to Nutreco’s representatives and
advisers during normal office hours and shall co-operate with such
representatives and advisers with regard to the preparation and determination
of the draft Nutreco Closing Financial Statements. The Parties shall procure
that the Company shall (or shall procure that the relevant members of the JV
Group shall), in so far as it is reasonable to do so, make available the
services of the employees of the JV Group to assist Nutreco in the performance
of Nutreco’s duties and exercise of Nutreco’s rights under this Clause 6.1.

 

6.2          Stolt Closing Financial
Statements

 

6.2.1       As
soon as practicable and in any event by no later than 6 (six) weeks after the
Closing Date, Stolt B.V. shall prepare and deliver to Nutreco a draft of the
Stolt Closing Financial Statements.

 

6.2.2       The draft Stolt Closing Financial Statements shall be prepared by
Stolt B.V. in accordance with the Stolt Accounting Principles and will be
accompanied by a (draft) unqualified auditor’s statement from Stolt’s
Accountant. Nutreco shall assist Stolt B.V. and adapt the draft Stolt Closing
Financial Statements to IFRS, including the required IFRS adjustments for the
assets, and Stolt B.V. shall assist, provide all relevant information and
follow Nutreco’s instructions and explanations with regard to the adapting of
the draft Stolt Closing Financial Statements to IFRS.

 

6.2.3       In
order to enable Nutreco to review and form an opinion on the preparation and

 

19

 

determination
of the draft Stolt Closing Financial Statements, the Parties shall procure that
the Company shall (or shall procure that the relevant members of the JV Group
shall), subject to reasonable notice, make available such books and records, to
the extent relating to the Stolt Activities, to Nutreco and its representatives
and advisers during normal office hours, and shall co-operate with Nutreco and
its representatives and advisers both with regard to their review of the
preparation and determination of the draft Stolt Closing Financial Statements
and in giving them explanations for fluctuations and movements apparent from
the draft Stolt Closing Financial Statements. 

 

6.2.4       If and
to the extent that Nutreco does not within 20 (twenty) Business Days after
receipt of the draft Stolt Closing Financial Statements give written notice to
Stolt B.V. that it disagrees with said draft financial statements or any item
thereof, the draft Stolt Closing Financial Statements shall be final and
binding on Nutreco (and each relevant member of the Nutreco Group) and the
Company (and each relevant member of the JV Group) for all purposes. If Nutreco
does give such notice within said period, Stolt B.V. and Nutreco shall attempt
in good faith to reach agreement in respect of the draft Stolt Closing
Financial Statements and, if they are unable to do so within 20 (twenty)
Business Days of such notification, Stolt B.V. or Nutreco may by notice to the
other Party require that the draft Stolt Closing Financial Statements, in whole
or in part, be referred to the Reporting Accountants in the terms of Schedule 7 (Part 3). The draft Stolt Closing Financial
Statements will upon their being agreed or determined be referred to as “Stolt
Closing Financial Statements”.

 

6.2.5       In order to enable the preparation and determination of the Stolt
Closing Financial Statements, the Parties shall procure that the Company shall
(or shall procure that the relevant members of the JV Group shall) keep all
books and records relating to the JV Group, to the extent relating to the Stolt
Activities up-to-date and, subject to reasonable notice, make such books and
records available to Stolt B.V.’s representatives and advisers during normal
office hours and shall co-operate with such representatives with regard to the
preparation and determination of the Stolt Closing Financial Statements. The
Parties shall procure that the Company shall (or shall procure that the
relevant members of the JV Group shall), in so far as it is reasonable to do
so, make available the services of the employees of the JV Group to assist
Stolt B.V. in the performance of Stolt B.V.’s duties and exercise of Stolt B.V.’s
rights under this Clause 6.2. 

 

6.3          Closing Financial Statements
Adjustments

 

6.3.1       Nutreco Contribution Adjustment

 

If and
to the extent that: 

 

(i)            the Nutreco Closing Financial Statements disclose that there have
been actions (other than the change of accounting policy to IFRS as such) taken
by Nutreco or any member of the Nutreco Group with regard to the Nutreco
Activities in the period between 31 August 2004 and the Closing Date which
are outside the ordinary course of business and/or in violation of the pre
closing covenants set out in Clause 4.1; and

 

(ii)           such actions have had or will have a negative impact on the JV Group
or have had or will have the effect of removing benefits or value from the JV
Group,

 

20

 

Nutreco
shall, to the extent required on behalf of the relevant member of its Group,
pay an amount equal to the financial impact of such actions (i) to the
Company or, at the option of Stolt B.V., (ii) to Stolt B.V., on a pro rata parte basis in proportion to Stolt B.V.’s relative
stake in the Company, or (iii), if and to the extent the debt capacity of the
JV Group is not adversely affected thereby, by another appropriate manner to be
agreed between the Parties, provided that it is agreed that any impairment
included in the Nutreco Closing Financial Statements in accordance with the
instructions of Nutreco’s Accountant will be deemed to have been taken in the
ordinary course of business and not in violation of Clause 4.1.

 

6.3.2       Stolt
Contribution Adjustment

 

If and to the extent that: 

 

(i)            the Stolt Closing Financial Statements disclose that there have been
actions (other than the change of accounting policy to IFRS as such) taken by
Stolt, Stolt B.V. or any member of the Stolt Group with regard to the Stolt
Activities in the period between 31 August 2004 and the Closing Date which
are outside the ordinary course of business and/or in violation of the pre
closing covenants set out in Clause 4.1; and

 

(ii)           such actions have had or will have a negative impact on the JV Group
or have had or will have the effect of removing benefits or value from the JV
Group,

 

Stolt B.V. shall, to the extent required on
behalf of the relevant member of its Group, pay an amount equal to the
financial impact of such actions (i) to the Company or, at the option of
Nutreco, (ii) to Nutreco, on a pro rata parte basis
in proportion to Nutreco’s relative stake in the Company, or
(iii), if and to the extent the debt capacity of the JV Group is not adversely
affected thereby, by another appropriate manner to be agreed between the
Parties, provided that it is agreed that any impairment included in the Stolt
Closing Financial Statements in accordance with the instructions of Stolt’s
Accountant will be deemed to have been taken in the ordinary course of business
and not in violation of Clause 4.1

 

6.3.3       Interest

 

Any payment
to be made in accordance with this Clause 6.3 shall include interest thereon
calculated from 31 August 2004 or the date the relevant out of the
ordinary course actions are taken, whichever occurs later, to the date of
payment, both days inclusive, at the Interest Rate.

 

6.3.4       Payment

 

(i)            The due date for any payment to be made under this Clause 6.3, shall
be the 5th (fifth) Business Day (i) after the relevant Closing
Financial Statements has been finally determined in accordance with Clause
6.1.3 or 6.2.3 and (ii) it has been agreed or determined that the criteria
set out in Clause 6.3.1 and/or 6.3.2, as the case may be, have been satisfied. 

 

(ii)           All payments (including interest payments) made under this Clause
6.3 shall be made on account of the relevant (contributed) JV Activities and
the allocation of the (contributed) JV Activities shall be adjusted in
accordance with Schedule 2 (Part 4) and Schedule 3 (Part 4).

 

(iii)          To the extent possible, the payments to be made pursuant to this
Clause 6.3, shall be

 

21

 

aggregated and discharged by way of set-off.

 

7.             Post-Closing obligations

 

7.1          Release of Guarantees

 

7.1.1       The Parties shall procure that the Company shall (and shall procure
that the relevant members of the JV Group shall) with effect from Closing or as
soon as practicable thereafter, procure the release of each Party and any
member of each Party’s Group from any (joint and/or several) Guarantees given
by, assumed by or binding upon such Party or any member of such Party’s Group
in relation to any of the liabilities of the JV Group. Pending such release the
Parties shall procure that the Company shall indemnify, defend and hold
harmless each Party and the other members of its Group against all amounts paid
by any of them pursuant to any such Guarantees. 

 

7.1.2       Each Party shall procure, with effect from Closing or as soon as
practicable thereafter, the release of each JV Company from any (joint and/or
several) Guarantees given by, assumed by or binding upon the JV Company in
relation to any liability of a Party or any member of such Party’s Group.
Pending such release, the relevant Party shall, as an irrevocable third party
stipulation, indemnify, defend and hold harmless the Company and, as an
irrevocable third party stipulation, the other members of the JV Group against
all amounts paid by any of them pursuant to any such Guarantees.

 

7.2          Use of names

 

7.2.1       The Parties shall procure that within a reasonable period after the
Closing, but in any event within 3 (three) months after the Closing Date, to
the extent applicable, each of the JV Companies changes its name so that it
does not contain the name Nutreco, Stolt and Stolt Sea Farm, or any
abbreviation thereof or any name or lettering which is likely to be confused
with the same and shall provide the relevant Party with appropriate written
evidence of such change of name. 

 

7.2.2       The Parties shall procure that the Company shall not, and shall
procure that no member of the JV Group shall, as soon as practicable after the
Closing, but in any event 12 (twelve) months after the Closing Date, use any
trading names, domain names, or registered or unregistered trade marks or logos
which contain the name Nutreco, Stolt and Stolt Sea Farm, or any abbreviation
thereof or any name or lettering which is confusingly similar to the same.
Notwithstanding the foregoing, the Parties shall procure that the Company
shall, as soon as practicable after the Closing, but in any event within 12
(twelve) months after the Closing Date, procure that all such trading names,
domain names, trade marks and logos are removed from all products, business
stationery and other assets held by any member of the JV Group or contributed
to the Company pursuant to this Agreement, and from all premises occupied by
the Company or any other member of the JV Group.

 

7.2.3       Notwithstanding the provisions of Clause 7.2.1 and 7.2.2, the
Company and the relevant members of the JV Group shall be entitled to continue
to use the (trading or domain) names,

 

22

 

trade
marks and logos on boats, vessels, plants and buildings until 24 (twenty-four)
months after the Closing Date.

 

7.3          Retention of records

 

7.3.1       The Parties shall procure that the Company shall (or shall procure
that the relevant members of the JV Group shall) retain for a period of 5 (five)
years from Closing, or such longer period as may be prescribed by applicable
Law, all books, records and other written information relating to each Party’s
Group which are at the properties of the JV Group immediately after Closing or
which are held by any member of the JV Group pursuant to Closing and, to the
extent reasonably required by the relevant Party, shall allow each Party, upon
reasonable written notice, access during normal office hours to such books,
records and other information, including the right to inspect and take copies
(at such Party’s expense). 

 

7.3.2       Each Party shall (or shall procure that the relevant members of such
Party’s Group shall) retain for a period of 5 (five) years from Closing, or
such longer period as may be prescribed by applicable law, any books, records
or other written information relating to the JV Group which are not at the
properties of the JV Group immediately after Closing or held by any member of
the JV Group pursuant to Closing and, to the extent reasonably required by the
Company, shall allow the Company or the relevant member of the JV Group upon
reasonable written notice access during normal office hours to such books,
records and information, including the right to inspect and take copies (at the
Company’s expense).

 

7.4          Insurance

 

7.4.1       Termination of coverage

 

As of
the Closing Date, unless the Parties agree otherwise,

 

(i)            all coverage with respect to the JV Group under the Insurance
Policies in respect of events, occurrences or accidents occurring on or after
the Closing Date shall be cancelled and terminated, excluding those Insurance
Policies in respect of which a JV Group Company is the sole policy holder or
named insured; and

 

(ii)           the Parties shall procure that the Company shall put in place such
insurance as it shall deem appropriate in relation to the JV Group.

 

7.4.2       Pre-Closing occurrences

 

For a period of 6 (six) months after the
Closing Date, each Party shall cause the relevant members of its Group to make
available to the JV Group (to the extent permitted under the relevant Insurance
Policies), the rights of recovery of members of the relevant Party’s Group
under the relevant Insurance Policies in relation to events, occurrences or
accidents occurring prior to the Closing Date and which relate exclusively to a
member of the JV Group insured by a member of such Party’s Group. Each Party
shall, and shall procure that the relevant members of the JV Group shall,
co-operate in connection with the handling and administration of these claims.
Following this 6 (six) months’ period, the members of the JV Group shall not be
entitled to any rights of recovery under any of the Insurance Policies for

 

23

 

claims made in respect of events,
occurrences or accidents occurring prior to the Closing Date.

 

7.4.3          Payment of proceeds in respect of insurance claims

 

Each Party shall (or shall procure that the
relevant member of its Group shall) pay to the Company or relevant member of
the JV Group the net proceeds (after deduction of all applicable deductibles)
received by a member of such Party’s Group on or after the Closing Date in
respect of any event which has occurred prior to the Closing and which relates
exclusively to a member of the JV Group insured by a member of such Party’s
Group, such payment  to be made as soon
as practicable after receipt by the relevant member of such Party’s Group and
only to the extent that:

 

(i)            the Losses in respect of which the claim is made have not been made
good prior thereto; or

 

(ii)           the Losses are not the subject of a Warranty, an indemnity or
adjustment payable by the relevant Party under this Agreement.

 

7.4.4       Indemnity

 

In
respect of claims made after the Closing Date and arising in respect of an
event, occurrence or accident occurring after the Closing Date, the JV Group
shall not have any right to recover any amounts from Nutreco or Stolt B.V. or
any member of the Nutreco Group or the Stolt Group, or any of their insurers,
and the Parties shall procure that the Company shall be responsible for and
shall indemnify, defend and hold harmless each Party and the relevant member of
such Party’s Group, from all Losses incurred by such Party or any member of its
Group, or its insurers in respect of any claim or attempted claim made on or
after the Closing Date under any Insurance Policy by the JV Group or any third
party.

 

7.5          Licences

 

The
Parties shall endeavour that all material licences and permits necessary for
the operations of the JV Activities shall be assigned to or shall be registered
in the name of the relevant JV Company as soon as reasonably practicable after
the Closing Date, unless advised otherwise by the local management of the
relevant JV Activities.

 

7.6          Retirement Benefits

 

The provisions of Schedule 8 shall apply in
respect of Retirement Benefits in relation to the relevant JV Activities. 

 

7.7          Cod impairment adjustment

 

If and
to the extent the performance of the JV Activities relating to Cod which are
contributed to the JV Group by Nutreco materially deviate from the results of
these activities envisaged in the business plan and budget of the Company in
force as at the end of 2005, Nutreco shall pay to Stolt 25% of any impairment
resulting therefrom to a maximum of EUR 1,250,000 (one million two hundred
thousand euro) minus 25% of the impairment that has been included in the
Nutreco Closing Financial Statements in respect of such activities.

 

24

 

7.8          Tax indemnity and covenants

 

The provisions of Schedule 9 shall apply in
respect of Taxes in respect of the JV Activities and, if applicable, in respect
of the issuance of the Additional Equity Instruments by the Company to Nutreco
and Stolt B.V., respectively. 

 

8.             Warranties

 

8.1          Nutreco Warranties

 

8.1.1       Subject to the provisions of this Clause 8 and to Clauses 9 and 10,
Nutreco represents and warrants to Stolt B.V. that the Nutreco Warranties are
true and accurate in all material respects as at Signing.

 

8.1.2       Any Nutreco Warranty qualified by the expression “so far as Nutreco
is aware” or any similar expression shall be deemed to refer to the knowledge
of those members of Nutreco’s corporate staff and senior employees whose names
are set out in Schedule 10 (Part 3), who shall be deemed to have knowledge of such matters about which
they knew or which they would have discovered, had they made reasonable
enquiries.

 

8.1.3       Nutreco further represents that neither Nutreco, nor any other
member of the Nutreco Group nor any of their respective employees, agents or
advisors is aware of any breach of the Stolt Warranties or of any fact or
circumstance which could give rise to a breach of the Stolt Warranties.

 

8.2          Stolt Warranties

 

8.2.1       Subject to the provisions of this Clause 8 and to Clauses 9 and 10,
Stolt B.V. represents and warrants to Nutreco that the Stolt Warranties are
true and accurate in all material respects as at Signing.

 

8.2.2       Any Stolt Warranty qualified by the expression “so far as Stolt is
aware” or any similar expression shall be deemed to refer to the knowledge of
those members of Stolt B.V.’s or Stolt’s corporate staff and senior employees
whose names are set out in Schedule 11 (Part 3), who
shall be deemed to have knowledge of such matters about which they knew or
which they would have discovered, had they made reasonable enquiries.

 

8.2.3       Stolt B.V. further represents that neither Stolt B.V., Stolt, nor
any other member of the Stolt Group nor any of their respective employees,
agents or advisors is aware of any breach of the Nutreco Warranties or of any
fact or circumstance which could give rise to a breach of the Nutreco
Warranties.

 

8.3          Disclosure

 

The Warranties are limited by, and the relevant Party
shall not be in breach of or liable for any of their respective Warranties in
respect of, the matters adequately disclosed in their respective Disclosure
Letter. 

 

25

 

8.4          Updating of Warranties to Closing

 

Save as otherwise provided in the respective
Warranties, Nutreco and Stolt B.V., respectively, further represent and warrant
that the Nutreco Warranties and the Stolt Warranties, respectively, will be
true and accurate in all material respects at Closing as if they had been
repeated at Closing.

 

8.5          Liability for breach 

 

8.5.1       In the event of any breach by a Party under this Agreement, the
other Party shall not have the right to terminate or rescind this Agreement and
the other Party, as its sole and exclusive remedy and subject to any
limitations of liability set out in this Agreement, shall have the right to
claim the Losses suffered or incurred by it as a result of such breach, it
being agreed that a Loss suffered by the relevant member of the JV Group in
respect of such breach shall, subject to Clause 8.5.2 and any limitations of
liability set out in this Agreement, be deemed to be a Loss suffered by the
Party claiming Losses pursuant to a breach of the other Party’s Warranties.

 

8.5.2       In the event of any breach of a Party’s Warranties, the other Party
shall be entitled to claim the Losses suffered or incurred by it, the relevant
members of its Group or the relevant members of the JV Group as a result of
such breach, provided, that such Losses will be paid to the Company or relevant
member of the JV Group, unless the Parties agree otherwise or the Loss
concerned is only incurred by a Party or relevant member of its Group and not
by any member of the JV Group, in which case the relevant Loss will be paid to such claiming Party itself or a relevant member of its Group on
a pro rata parte basis in proportion to
its relative stake in the Company.

 

8.5.3       For purposes of this Agreement, it is agreed that a breach of a
Warranty shall occur where the same is untrue or inaccurate in any material
respect as at any date on which the same is given.

 

9.             Limitation of liability

 

9.1          Time limitation

 

A Party
shall not be liable for a breach of the Warranties given by it unless a notice
of the claim is given by the other Party to that Party specifying the matters
set out in Clause 11.2:

 

9.1.1       in the case of any claim under Tax warranties set out in the
relevant Warranties, within 30 (thirty) days after
expiry of the statutory limitation period applicable in the relevant
jurisdiction for the Tax matter giving rise to such claims, including any
applicable term during which additional assessments can be levied under the
relevant applicable Law; and

 

9.1.2       in the case of any other claim, within 3 (three) years as of the Closing
Date,

 

provided
that there shall be no time limitation for giving notice of any claim under
Paragraphs 1, 2.1 and 18.1, 18.2, 18.3, 18.4, 18.5 and 18.6 of Schedule 10 (Part 1) or Paragraphs 1 and 2.1 of Schedule 11 (Part 1).

 

26

 

9.2          Minimum claims

 

Subject to any other limitations set out in this
Agreement, a Party shall only be liable for any breach of the Warranties given
by it in respect of any individual claim for a breach of its Warranties (or a
series of claims arising from identical facts) if the liability agreed or
determined in respect of any such claim or series of claims exceeds EUR 500,000
(five hundred thousand euro). For the
avoidance of doubt, where the liability agreed or determined in respect of any
such claim or series of claims exceeds EUR 500,000 (five hundred thousand
euro), the relevant Party shall be liable for the full amount thereof.

 

9.3          Aggregate minimum claims

 

Subject to any other limitations set out in this
Agreement, a Party shall only be liable for any breach of the Warranties given
by it in respect of any claim or claims if the aggregate amount of such
claim(s) exceeds EUR  2,500,000 (two and a halve million euro). For the avoidance of doubt, where the liability agreed or
determined in respect of any such claim or claims exceeds EUR 2,500,000
(two and a half million euro), the relevant Party shall be liable for the full
amount thereof.

 

9.4          Provisions 

 

Nutreco
or Stolt B.V. shall not be liable for any breach of the Warranties given by it
in respect of any claim if and to the extent that any allowance, provision or
reserve is made in the Nutreco Accounts or the Stolt Accounts, respectively
(and not released prior to Closing) for the matter giving rise to the claim.

 

9.5          Insurance

 

A Party
shall not be liable for any breach of the Warranties given by it in respect of
any claim to the extent that the Losses in respect of which such claim is made
are covered by a policy of insurance maintained in force by the Company or any
member of the JV Group, provided that such Losses or part thereof are actually
received under such policy of insurance.

 

9.6          Net financial benefit

 

Neither
Party shall be liable for any breach of the Warranties given by it in respect
of any Losses to the extent of any corresponding savings by or quantifiable net
financial benefit to the other Party’s Group or the JV Group arising in respect
of such Losses or the facts giving rise to such Losses (whereby a corresponding
saving is, for example, without limitation, the amount (if any) by which any
Taxation for which a Party would otherwise have been accountable or liable to
be assessed is actually reduced or extinguished as a result of the matter
giving rise to such Losses).

 

9.7          Mitigation of Losses

 

Each
Party shall procure that all reasonable steps are taken and all reasonable
assistance is given to avoid or mitigate any Losses which in the absence of
mitigation might give rise to a liability in respect of any claim under this
Agreement.

 

27

 

9.8          Double claims

 

A Party
shall not be entitled to recover from the other Party under this Agreement more
than once in respect of the same Losses suffered. Subject to any other
limitations set out in this Agreement, (i) in the event that any matter,
act, omission or circumstance (or any combination thereof) giving rise to a
breach of a Warranty or an indemnity under this Agreement is the subject of an
adjustment under Clause 6.3 or payment under Clause7.7, the relevant Party’s
claim shall be limited to a claim under said adjustment or payment and (ii) in
the event any matter, act, omission or circumstance (or any combination
thereof) giving rise to a breach of a Warranty is the subject of an indemnity
under this Agreement, the relevant Party’s claim shall be limited to a claim
under said indemnity.

 

9.9          No limitations on indemnities

 

For the
avoidance of doubt, exceptions contained in the respective Disclosure Letters
and the limitations of the Parties’ liability set out in Clause 9 shall not
affect the relevant Party’s liability under the indemnities in relation to Retirement
Benefits pursuant to Clause7.6 or Tax pursuant to Clause 7.8, save as provided
in the relevant indemnities.

 

10.          Indemnities

 

10.1        Nutreco indemnity

 

Nutreco shall indemnify, defend and hold
harmless Stolt B.V. and the relevant members of the Stolt Group from and
against any and all Losses incurred or suffered by any member of the Stolt
Group and/or the JV Group directly or indirectly relating to or arising out of
the following matters:

 

10.1.1     any liabilities not related to the Nutreco Activities being
contributed or assumed by the JV Group pursuant to Nutreco’s process of
disentanglement of the Nutreco Activities from the Nutreco Group under the
Nutreco Contribution Plan, including

 

(i)            any liability of Marine Harvest International B.V., Marine Harvest
B.V. and Trouw International Fish B.V. pursuant to Section 2:334 (t) of
the Netherlands Civil Code for obligations of Nutreco International B.V.,
Nutreco B.V. and Trouw International B.V., respectively; 

 

(ii)           any similar liability of members of the Nutreco Group for
obligations of the JV Group resulting from the demerger of Nutreco Chile S.A .,
if applicable, Marine Harvest Chile S.A. and Nutreco Holding AS pursuant to
applicable local (demerger) law;

 

(iii)          any liability of any Nutreco
JV Company or Nutreco JV Business in respect of any activity that is not a
Nutreco Activity; 

 

10.1.2     To the extent not provided for in the accounts of a relevant member
of the JV Group, (i) litigation in the US between Lafjord USA and Nutreco
Holding NV/Marine Harvest Norway AS, (ii) litigation in Norway between
Harvest Norway AS and the Central Taxation Office for Large-Sized Companies (Sentralskattekontoret for storbedrifter) before the appeal
court (lagmannsretten), (iii) litigation
in Norway between Nisja Trading AS and Vestmar AS where Harvest Norway AS is
put on a third party notice, (iv) litigation in Canada between Nutreco
Canada and AgriMarine Industries Inc. for breach of agreement by Nutreco
Canada, (v) lawsuit in Chile filed by Sierramar against Marine Harvest
Chile S.A., (vi) litigation in Norway

 

28

 

between Marine Harvest Norway AS and
Statlandet Eiendomsselskap AS and (vii) litigation in Ireland between
Franklin –v- Fanad Sea Fisheries & Others;

 

10.1.3     The fatality involving a diver at Aultbea (May 2002).

 

10.2        Stolt indemnity

 

Stolt B.V. shall indemnify, defend and hold
harmless Nutreco and the relevant members of the Nutreco Group from and against
any and all Losses incurred or suffered by any member of the Nutreco Group
and/or the JV Group directly or indirectly relating to or arising out of the
following matters:

 

10.2.1     any liabilities not related to the Stolt Activities being
contributed or assumed by the JV Group pursuant to Stolt’s process of
disentanglement of the Stolt Activities from the Stolt Group under the Stolt
Contribution Plan, including any liability of any Stolt JV Company or Stolt JV
Business in respect of any activity that is not a Stolt Activity;

 

10.2.2     violations of the Labour Inspection Act in Belgium and improvements
and investments resulting therefrom;

 

10.2.3     the decision of the relevant court in Canada, and possible appeals
thereof, setting aside the decision of the Minister of Fisheries to permit the
relocation of an aquaculture site from “Eden Island”  to “Humphrey Rock”;

 

10.2.4     any currently unknown and unperformed obligations resulting from
speculative trading in the Stolt Tokyo operation before 1 July 2003 not
included or provided for in the Stolt Accounts; and

 

10.2.5     conducting trading activities through a non-registered “branch” of
Stolt Cocoon AS in Singapore.

 

10.3        Liability

 

In the event of any liability of Nutreco or
Stolt B.V. under the indemnities set out in Clause 10.1 or 10.2, the other
Party shall be entitled to claim the Losses suffered or incurred by it, the relevant
members of its Group or the relevant members of the JV Group as a result of
such breach, provided, that such Losses will be paid to the Company or relevant
member of the JV Group, unless the Parties agree otherwise or the Loss
concerned is only incurred by a Party or relevant member of its Group and not
by any member of the JV Group, in which case the relevant Loss will be paid to
such claiming Party itself on a pro rata parte basis
in proportion to its relative stake in the Company.

 

10.4        Indemnity Company

 

The Parties shall procure that the Company
shall indemnify Nutreco and the relevant members of the Nutreco Group from and
against any and all Losses incurred or suffered by any of them directly or
indirectly relating to or arising out of:

 

10.4.1     any liability of Nutreco International B.V., Nutreco B.V. and Trouw
International B.V. pursuant to Section 2:334(t) of the Netherlands Civil
Code for obligations of Marine Harvest International B.V., Marine Harvest B.V.
and Trouw International Fish B.V.; and

 

10.4.2     any similar liability of members of the Nutreco Group for
obligations of the JV Group resulting from the demerger of Nutreco Chile S.A.,
if applicable, Marine Harvest Chile S.A.

 

29

 

and Nutreco Holding AS under applicable
local (demerger) laws.

 

10.5        No limitations

 

Exceptions contained in the respective
Disclosure Letters and the limitations of the Parties’ liability set out in
Clause 9 shall not affect the relevant Party’s liability under this Clause 10. 

 

11.          Claims

 

11.1        Notification of potential claims

 

11.1.1     If the Company or any member of the JV Group becomes aware of any
matter or circumstance that may give rise to a claim of a Party (the “Indemnified Party”) against another Party (the “Indemnifying Party”) under this Agreement, the Company shall
as soon as reasonably possible notify the Parties thereof.

 

11.1.2     If the Indemnified Party becomes aware of any matter or circumstance
that may give rise to a claim against the Indemnifying Party under this
Agreement, the Indemnified Party shall as soon as reasonably possible contact
the Indemnifying Party and as soon as reasonably possible thereafter but in any
event within 40 (forty) Business Days give a notice in writing to the
Indemnifying Party setting out such information as is reasonably available to
the Indemnified Party and is reasonably necessary to enable the Indemnifying
Party to assess the merits of the claim and to act to preserve evidence. 

 

11.2        Notification of claims

 

Without
detracting from Clause 11.1, notices of claims under this Agreement shall be
given by the Indemnified Party to the Indemnifying Party within the time limits
as specified in Clause 9 in the event of a claim for breach of a Warranty and
within a reasonable period of time in the event of any other claims, specifying,
to the extent reasonably available, information of the legal and factual basis
of the claim and the evidence on which the Indemnified Party relies and, if
practicable, an estimate of the amount of Losses which are, or are to be, the
subject of the claim.

 

11.3        Costs

 

If a Party has initiated a claim against
the other Party pursuant to the relevant Warranties or indemnities under this
Agreement and such claim is awarded or determined pursuant to the relevant
dispute settlement provisions set out in this Agreement, the Company shall pay
and reimburse the reasonable costs incurred by the claiming Party in relation
thereto.

 

11.4        Procedure for third party claims

 

If the
claim notified to the Indemnifying Party is a result of or in connection with a
claim by or liability to a third party then:

 

11.4.1     no admissions in relation to such third party claim shall be made by
or on behalf of the Indemnified Party or any member of the JV Group and the claim
shall not be compromised,

 

30

 

disposed of or settled without the prior written
consent of the Indemnifying Party;

 

11.4.2     the Indemnifying Party shall be entitled at his own expense, by
notice to the Indemnified Party and the Company (and the Parties shall procure
that the Company and the relevant member of the JV Group shall co-operate with
the Indemnifying Party) to take action to avoid, dispute, defend, appeal,
compromise or contest such claim or liability and the Indemnified Party shall,
and the Parties shall procure that the relevant members of the JV Group shall,
at the reasonable request of the Indemnifying Party allow the Indemnifying
Party to act in the name of and on behalf of the Indemnified Party or relevant
member of the JV Group concerned and to control the conduct of any related
proceedings, negotiations or appeals;

 

11.4.3     where the Indemnifying Party has issued a notice pursuant to Clause
11.4.2, the Indemnified Party shall, and the Parties shall procure that all
relevant members of the JV Group shall give, subject to their being paid
reasonable costs and expenses, all such information and assistance including
access to premises and personnel, and the right to examine and copy or
photograph any assets, accounts, documents and records, as the
Indemnifying Party may reasonably request for the purpose referred to in
Clause 11.4.2, including instructing such professional or legal advisers as the
Indemnifying Party may nominate to act on behalf of the Indemnified Party or
relevant member of the JV Group concerned but in accordance with the
Indemnifying Party’s instructions, it being agreed that the Indemnifying Party
shall keep the Indemnified Party and the Company informed of all relevant
matters relating to the claim and shall forward or procure to be forwarded to
the Indemnified Party and the Company copies of all material external
correspondence (other than such correspondence as is subject to legal
professional privilege) relating to the claim; and

 

11.4.4     the Parties shall give reasonable consideration to the interest of
the Indemnifying Party hereunder in minimizing any compensation to be paid to
the third party and the JV Group’s interest in maintaining a good business
relationship between the JV Group and the third party.

 

11.5        Information

 

The
Company shall, subject to reasonable notice, make such books, records and other
information available to the Parties as reasonably required by them in
connection with the making of or, as the case may be, the defending against,
claims referred to in this Clause 11.

 

12.          Joint and several liability
Stolt; relationship Stolt B.V. and Stolt

 

12.1        Joint and several liability

 

Stolt
shall be jointly and severally liable for all obligations of Stolt B.V. under
this Agreement.

 

12.2        Representation

 

To the
extent Stolt and Stolt B.V. both have the same rights under this Agreement,
Stolt B.V. and Stolt shall be exclusively represented by Stolt B.V. and only
Stolt B.V. shall have the right to exercise and

 

31

 

enforce
such rights on behalf of Stolt and Stolt B.V. together.

 

12.3        Communication

 

For the
purpose of this Agreement, a notice, communication or the provision of
information made by Nutreco to Stolt B.V. shall be deemed to have been made to
Stolt as well.

 

13.          IPO

 

The
Parties shall agree on an appropriate arrangement to enable the Company to
enforce the rights of a Party pursuant to the Warranties and indemnities under
his Agreement against the other Party, if and when the financial advisors
involved in the process of an IPO advise that such an arrangement enhances the
feasibility and conditions of the IPO. 

 

14.          Confidentiality

 

14.1        Announcements

 

No
announcement or circular in connection with the existence or the subject matter
of this Agreement shall be made or issued by or on behalf of any member of a
Party’s Group without the prior written approval of the other Party. This shall
not apply to any announcement or circular required by Law or the rules of
any recognised stock exchange on which the shares of either Party are listed,
provided that the Party with an obligation to make an announcement or issue a
circular shall consult with the other Party insofar as is reasonably
practicable before complying with such an obligation.

 

14.2        Confidentiality undertaking

 

14.2.1     The Confidentiality Agreement and the Memorandum of Understanding
shall cease to have any force or effect from Closing.

 

14.2.2     Subject to Clause 14.2.1 and Clause 14.2.3 each of the Parties shall
treat as strictly confidential and not disclose or use any information received
or obtained as a result of entering into this Agreement (or any agreement
entered into pursuant to this Agreement) which relates to:

 

(i)            the provisions of this Agreement and any agreement entered into
pursuant to this Agreement; or

 

(ii)           the negotiations relating to this Agreement (and any such other
agreement); or

 

(iii)          a Party to this Agreement and the business carried on by it or any
member of its Group and the JV Group.

 

14.2.3     Clause 14.2.2 shall not
prohibit disclosure or use of any information if and to the extent:

 

(i)            the disclosure or use is required by law, any regulatory body or any
recognised stock exchange on which the shares of any Party are listed;

 

(ii)           the disclosure or use is required to vest the full benefit of this
Agreement in any Party;

 

(iii)          the disclosure or use is required for the purpose of any judicial
proceedings arising out of this Agreement or any other agreement entered into
under or pursuant to this

 

32

 

Agreement or the disclosure is made to a
Tax Authority in connection with the Tax affairs of the disclosing Party;

 

(iv)          the disclosure is made to professional advisers of any Party on
terms that such professional advisers undertake to comply with the provisions
of Clause 14.2.2 in respect of such information as if they were a party to this
Agreement;

 

(v)           the information is or becomes publicly available (other than by
breach of the Confidentiality Agreement or of this Agreement);

 

(vi)          the other Party has given prior written approval to the disclosure
or use; or

 

(vii)         the information is independently developed after Closing, 

 

provided
that prior to disclosure or use of any information pursuant to Clause
14.2.3(i),(ii), or (iii), the Party concerned shall promptly notify the other
Party of such requirement with a view to providing the other Party with the
opportunity to contest such disclosure or use or otherwise to agree the timing
and content of such disclosure or use.

 

15.          Miscellaneous

 

15.1        Further assurances

 

Each of
the Parties shall, and shall procure that relevant members of its Group and the
JV Group shall, from time to time do all things as may be required to give
effect to, and to give any Party the full benefit of, this Agreement and all
other agreements contemplated hereby, including the execution of all necessary
deeds and documents, procuring the convening of all necessary meetings, the
giving of all necessary waivers and consents and the passing of all necessary
resolutions and otherwise exercising all powers and rights available to them.

 

15.2        Whole agreement

 

15.2.1     This Agreement contains the whole agreement between the Parties
relating to the subject matter of this Agreement at Signing, to the exclusion
of any terms implied by law which may be excluded by contract, and supersedes
any previous written or oral agreement between the Parties in relation to the
matters dealt with in this Agreement.

 

15.2.2     Each Party acknowledges that it has not been induced to enter this
Agreement by any representation, warranty or undertaking not expressly set out
in this Agreement.

 

15.3        No assignment

 

Except
as otherwise expressly provided in this Agreement, no Party may, unless with
the prior written consent of the other Parties, assign, grant any security
interest over or otherwise transfer, in whole or in part, any of its rights and
obligations under this Agreement.

 

15.4        Waiver

 

No
waiver of any provision of this Agreement shall be effective unless in writing
and signed by or on behalf of the waiving Party.

 

33

 

15.5        Variation

 

No
variation of this Agreement shall be effective unless in writing and signed by
or on behalf of each of the Parties.

 

15.6        Third party rights

 

Save as
expressly otherwise stated, this Agreement does not contain a stipulation in
favour of a third party.

 

15.7        Rescission

 

Without prejudice to Clause 3.3.3, each Party waives its right
to rescind this Agreement on the basis of Section 6:265 of the Netherlands
Civil Code. 

 

15.8        Method of payment

 

15.8.1     Wherever in this Agreement provision is made for a payment to be
made or procured by a Party, such Party shall arrange that such payment shall
be made by it for itself and on behalf of the relevant member of its Group to
the relevant other Party for itself and on behalf of the relevant member of its
Group.

 

15.8.2     Any such payments shall be effected by the Party obliged to make the
payment crediting for same day value the account specified by Party entitled to
the payment (reasonably in advance and in sufficient detail to enable payment
by telegraphic or other electronic means to be effected) on or before the due
date for payment.

 

15.8.3     Payment of a sum in accordance with this Clause shall be a good
discharge to the payer (and those on whose behalf such payment is made) of its
obligation to make such payment and the payer (and those on whose behalf such
payment is made) shall not be obliged to see to the application of the payment
as between those on whose behalf the payment is received.

 

15.9        Costs

 

Unless
this Agreement provides otherwise, all costs (including any capital, stamp,
transfer, registration, VAT, sales and other similar Taxes, duties, fees and
charges and all notarial fees) which a Party has incurred or must incur in
preparing, concluding or performing this Agreement are for its own account. All
capital, stamp, transfer, registration, VAT, sales and other similar Taxes,
duties, fees and charges and all notarial fees payable by the Company or a JV
Company in connection with the transfer or completion of the relevant
contribution of JV Activities under this Agreement shall be reimbursed in full
by the Party responsible for making the relevant contribution, or, to the
extent the relevant members of the JV Group have to pay such Taxes and fees,
shall be reimbursed to the relevant member of the JV Group by such contributing
Party.

 

15.10      Interest

 

If any
Party defaults in the payment when due of any sum payable under this Agreement,
the liability of that Party shall be increased to include interest on such sum
from the date when such payment is due

 

34

 

until
the date of actual payment (as well after as before judgement) at the Interest
Rate.

 

15.11      Notices

 

15.11.1  Any notice in connection with this Agreement (a “Notice”) shall be:

 

(i)            in writing in English; and

 

(ii)           delivered by hand, fax, registered post or by courier using an
internationally recognised courier company.

 

15.11.2  A Notice to Nutreco shall be sent to Nutreco at the following
address, or such other person or address as Nutreco may notify to Stolt B.V.
and the Company from time to time:

 

Nutreco: 

 

	
  Address:

  	
  Prins
  Frederiklaan 4

  
	
   

  	
  3818
  KC Amersfoort

  
	
   

  	
  The
  Netherlands

  
	
  Fax:

  	
  +31
  33 442 6104

  
	
  E-mail:

  	
  legal@nutreco.com

  
	
  Attention:

  	
  Company
  Secretary

  

 

15.11.3  A Notice to Stolt B.V. shall be sent to Stolt B.V. at the following
address, or such other person or address as Stolt B.V. may notify to Nutreco
and the Company from time to time:

 

Stolt
B.V.:

 

	
  Address:

  	
  Karel
  Doormanweg 25

  
	
   

  	
  3115
  JD Schiedam

  
	
   

  	
  The
  Netherlands

  
	
  Fax:

  	
  c/o
  +44 20 761 189 66

  
	
  E-mail:

  	
  jengelhardtsen@sntg.com

  
	
  Attention:

  	
  Jan
  Engelhardtsen, CFO

  

 

15.11.4  A Notice to Stolt shall be sent to Stolt at the following address,
or such other person or address as Stolt may notify to Nutreco and the Company
from time to time:

 

Stolt:

 

	
  Address:

  	
  Aldwych
  House, 71-91 Aldwych

  
	
   

  	
  London
  WC2B 4 HN

  
	
   

  	
  England

  
	
  Fax:

  	
  +44
  20 761 189 66

  
	
  E-mail:

  	
  jengelhardtsen@sntg.com

  
	
  Attention:

  	
  Jan
  Engelhardtsen, CFO

  

 

15.11.5  A notice to the Company shall be sent to the Company at the
following address, or such other person or address as the Company may notify to
Nutreco and Stolt B.V. from time to time:

 

Marine
Harvest:

 

35

 

	
  Address:

  	
  Prins
  Frederiklaan 4

  
	
   

  	
  3818 KC Amersfoort

  
	
   

  	
  The Netherlands

  
	
  Fax:

  	
  +31
  33 422 6106

  
	
  E-mail:

  	
  hans.den.bieman@nutreco.com

  
	
  Attention:

  	
  Hans
  den Bieman

  

 

15.11.6  A Notice shall be effective upon receipt and shall be deemed to have
been received:

 

(i)            at the time of delivery, if delivered by hand, registered post or
courier; and

 

(ii)           at the time of transmission in legible form, if delivered by fax.

 

15.12      Invalidity

 

If any
provision in this Agreement shall be held to be illegal, invalid or
unenforceable, in whole or in part, under any enactment or rule of law:

 

15.12.1  such provision or part shall to that extent be deemed not to form
part of this Agreement but the legality, validity or enforceability of the
remainder of this Agreement shall not be affected;

 

15.12.2  the Parties shall use reasonable endeavours to agree a replacement
provision that is legal, valid and enforceable to achieve so far as possible
the intended effect of the illegal, invalid or unenforceable provision.

 

15.13      Notary Rules of
Professional Conduct 

 

With
reference to the Rules of Professional Conduct (Verordening
beroeps- en gedragsregels) of the Royal Dutch Organisation of Civil
Law Notaries (Koninklijke Notariële Beroepsorganisatie)
all parties expressly agree that (i) De Brauw Blackstone Westbroek N.V.
acts as counsel to Nutreco in connection with, or acts as counsel for or on
behalf of  Nutreco in the event of any
dispute relating to, this Agreement or any related agreement, and that (ii) a
civil law notary of De Brauw Blackstone Westbroek N.V. executes deeds connected
with this Agreement or any related agreement.

 

15.14      Counterparts

 

This
Agreement may be entered into in any number of counterparts, all of which taken
together shall constitute one and the same instrument. Any Party may enter into
this Agreement by signing any such counterpart.

 

15.15      Completion of Schedule

 

15.15.1  The Parties
acknowledge and agree that Schedule 2 (Part 4) (Allocation of Nutreco
Activities), Schedule 3 (Part 4) (Allocation Stolt Activities) and
certain Schedules to Schedule 5 (Shareholders Agreement: Schedule 3 (Part 3)
(Stolt Cod and Halibut Activities), Schedule 5 (Part 2 (Initial
Budget) and Schedule 5 (Part 3) (management accounts)) need to be
(further) prepared and agreed, supplemented and/or, as the case may be, amended
after the Signing Date and prior to the Completion Date, if applicable on the
basis of the draft of the Schedules as existing as per the Signing Date.

 

15.15.2  Each relevant Party shall use all reasonable endeavours and
negotiate in good faith to

 

36

 

complete and
agree on the relevant Schedules referred to in Clause 15.15.1.

 

15.15.3  Upon completion and agreement on the relevant Schedules referred to
in Clause 15.15.1, the Parties shall initial the relevant Schedule and add
the Schedule to this Agreement, after which the Schedule will form
part of this Agreement.

 

15.16      Dispute resolution

 

15.16.1  The Parties shall attempt in good faith to resolve promptly any
dispute, controversy or claim arising out of or relating to this Agreement,
including disputes concerning the existence and validity of the Agreement, by
negotiation, with the exception of disputes with regard to the determination of
the Closing Financial Statements which are to be resolved by the Reporting
Accountants in accordance with Schedule 7 (Part 3).
If the matter cannot be resolved in the normal course of business any
interested Party shall give the other Party written notice of any such dispute
not resolved, after which the dispute will be referred to senior executives of
the Parties, who shall similarly attempt to resolve the dispute.

 

15.16.2  If the dispute referred to in Clause 15.16.1 has for whatever reason
not been resolved by negotiation within the 20 (twenty) Business Days of the
disputing Party’s written notice, such dispute shall be finally settled by
arbitration in accordance with the Rules of the International Chamber of
Commerce. The place of arbitration shall be Amsterdam. The language to be used
in the arbitration proceedings shall be English.

 

15.16.3  Any dispute as to whether a matter qualifies as (i) a dispute
with regard to the determination of the Closing Financial Statements which is
to be resolved by the Reporting Accountants pursuant to Schedule 7 (Part 3) or (ii) a
dispute which is to be resolved pursuant to Clauses 15.16.1 or 15.16.2, shall
be exclusively settled in accordance with negotiation or arbitration pursuant
to Clauses 15.16.1 or 15.16.2, respectively.

 

15.16.4  Clauses 15.16.1 and 15.16.2 shall also apply to disputes arising in
connection with agreements that are connected with this Agreement, unless the
relevant agreement expressly provides otherwise.

 

15.17      Governing law

 

This
Agreement and the documents to be entered into pursuant to it, save as
expressly otherwise provided therein, shall be governed by and construed in
accordance with the laws of the Netherlands.

 

37

 

In WITNESS WHEREOF Nutreco, Stolt B.V. and Stolt have executed
this Agreement on this third day of December 2004

 

 

SIGNED by B. Verwilghen

on
behalf of Nutreco Holding N.V.

 

 

SIGNED by N.G. Stolt-Nielsen

on
behalf of Stolt Nielsen Transportation Group Limited on behalf of Stolt Sea Farm Investments B.V. i.o.

 

 

SIGNED by N.G. Stolt-Nielsen

on
behalf of Stolt-Nielsen S.A.  

 

 

 

Signed by the Company on this third day of  December,
2004 (i) for acknowledgement of the agreement between Nutreco Holding N.V.
and Stolt-Nielsen S.A. contained in this Agreement in respect of the
Transaction, and (ii) for agreement with Clauses 2.3, 5.2, 5.3, 5.5, 6,
7.1, 7.2, 7.3, 7.4, 10.4, 11 and 13.

 

SIGNED by A. van Driel

on
behalf of Marine Harvest N.V.

 

38

 

Schedule 1            Definitions

 

(Clause
1.1)

 

“Additional Equity Instruments” means the Nutreco Additional
Equity Instrument and the Stolt Additional Equity Instrument and “Additional  Equity Instrument”
means any one of them or the relevant one of them, as the context requires;

 

“Agreement” means this contribution agreement and the
schedules thereto;

 

“Business Agreements” means the Supply Agreement, the
Transitional Services Agreement and the Tuna Supply Agreement;

 

“Business Day” means a day which is not a Saturday, a Sunday
or a public holiday in the Netherlands or Norway;

 

“Closing” means the performance of the actions set out in
Clause 5.2;

 

“Closing Date” means the date on which Closing commences;

 

“Closing Financial Statements” means the Nutreco Closing Financial
Statements and the Stolt Closing Financial Statements or any one of them or the
relevant one of them, as the context requires;

 

“Company” means Marine Harvest N.V., a limited liability
company incorporated in the Netherlands, with corporate seat in Amersfoort, and
address at Prins Frederiklaan 4, 3818 KC Amersfoort, the
Netherlands;

 

“Company’s Amended Articles of Association” means the
articles of association of the Company as they will be in force after the
execution of the deed of amendment attached as Annex 3 to Schedule 4;

 

“Conditions Precedent” means the conditions set out in Clause
3.1, and “Condition Precedent” means any one of
them or the relevant one of them, as the context requires;

 

“Confidentiality Agreement” means the confidentiality agreement
dated 27 January 2004 between Nutreco and Stolt pursuant to which each
party to the Confidentiality Agreement made available to representatives of the
other party thereto certain information relating to their respective JV
Activities;

 

“Contribution Plans” means the Nutreco Contribution Plan and
the Stolt Contribution Plan and “Contribution Plan”
means any one of them or the relevant one of them, as the context requires;

 

“Deferred Activities” has the meaning set out in Clause
5.4.1;

 

39

 

“Deferred Condition” has the meaning set out in Clause 5.4;

 

“Disclosure Letters” means the Nutreco
Disclosure Letter and the Stolt Disclosure Letter and “Disclosure
Letter” means any one of them or the relevant one of them, as the
context requires;

 

“Encumbrance” means any claim, charge, pledge, mortgage,
lien, option, equity, power of sale, hypothecation, usufruct, retention of
title, right of pre-emption, right of first refusal or other third party rights
or security interest of any kind or an agreement to create any of the
foregoing;

 

“Event” means any transaction, act, omission or event of
whatsoever nature and includes any change in the residence of any person for
the purposes of any Taxation and references to an Event effected prior to the
Closing Date, including references to a transaction completed after the Closing
Date in pursuance of a legally binding obligation or an arrangement, in either
case whether or not conditional, incurred or entered into prior to the Closing
Date;

 

“Governmental Authority” means, to the extent it has
jurisdiction, any supranational governmental commission, council, directorate,
court, trade agency, regulatory body or otherwise authority, or any national
government, any legislature, any political subdivision of a national government
or of any state, county, province or local jurisdiction therein or any agency
or instrumentality of any such government or political subdivision;

 

“Group” means the Nutreco Group, the JV Group and/or the Stolt
Group, as the context requires;

 

“Guarantee” means any guarantee, indemnity, surety, letter of
comfort or other assurance, security, right of set-off, obligation to
contribute or undertaking given by a person to secure or support the
obligations (actual or contingent) of any other person, whether given directly
or by way of counter-indemnity;

 

“Insurance Policies” means all insurance policies in effect
at Signing in which a JV Company or a member of the relevant Group (in relation
to a JV Business) is an insured party;

 

“Intellectual Property” means trade marks, service marks,
trade names, domain names, logos, patents, inventions, design rights,
copyrights, semi-conductor topography rights, database rights and all other
similar rights in any part of the world (including Know-how) including, where
such rights are obtained or enhanced by registration, any registration of such
rights and applications and rights to apply for such registrations;

 

“Interest Rate” means 3 (three) months EURIBOR increased with
2% (two percent) per annum compounded on a daily basis;

 

“Intra-Group Payables” means, in relation to each JV Group
Company, all amounts owed by said JV Company to a member of a Party’s Group
(other than the JV Group) in respect of loans and other indebtedness, including
dividends, intra-group service fees and amounts due in respect of Taxation paid
by another member of a Party’s Group on its behalf (together in each case with
accrued interest thereon) as at

 

40

 

the end
of the Business Day immediately preceding the Closing Date, but excluding any
trading debt, and any cash or third party indebtedness of said JV Company; 

 

“Intra-Group Receivables” means, in relation to each JV
Company, all amounts owed by a member of a Party’s Group (other than the JV
Group) to said JV Company in respect of loans and other indebtedness at the end
of the Business Day immediately preceding the Closing Date, but excluding any
trading debt, intra-group service fees and any cash or third party indebtedness
of said JV Company; 

 

“IPO” means an initial public offering of the Company;

 

“JV Businesses” means the Nutreco JV Businesses and the Stolt
JV Businesses after the Closing and “JV Business”
means any one of them or the relevant one of them, as the context requires;

 

“JV Activities” means the Nutreco Activities and the Stolt
Activities jointly;

 

“JV Companies” means the Nutreco JV Companies and the Stolt
JV Companies after the Closing and “JV Company”
means any one of them or the relevant one of them, as the context requires;

 

“JV  Group” means
the Company and its subsidiaries, including as of the Closing, the JV Companies
and (the persons which legally own) the JV Businesses;

 

“Know-how” means confidential and proprietary industrial and
commercial information and techniques in any form including drawings, formulae,
test results, reports, project reports and testing procedures, instruction and
training manuals, tables of operating conditions, market forecasts, lists and
particulars of customers and suppliers;

 

“Law” means any statute, law, ordinance, rule or
regulation of any Governmental Authority;

 

“Losses” means all damage, losses, liabilities, costs
(including reasonable legal costs and reasonable experts’ and consultants’
fees), charges, expenses, claims and demands; 

 

“Managing Board Rules” means the rules on the internal
organisation and proceedings of the managing board of the Company as amended
from time to time, attached as Annex 4 to Schedule 4;

 

“Material Adverse Change” means any facts or circumstances
that have or can reasonably be expected to have such material effect as to
threaten the continuity of the business of the Nutreco Activities, the Stolt
Activities, the Nutreco Group and/or the Stolt Group or to have a material adverse
effect (financially or otherwise) on the business, assets, results or prospects
of the Nutreco Activities, the Stolt Activities, the Nutreco Group and/or the
Stolt Group;

 

“Member States” means the member states of the European Union
from time to time, and “Member State”
means any of them or the relevant one of them, as the context requires;

 

41

 

“Memorandum of Understanding” means the Memorandum of
Understanding between Stolt and Nutreco entered into on 11 September 2004;

 

“Non-EU Country” means any country that is not a Member
State;

 

“Notary” means civil law notary Paul Klemann, or any other
civil law notary of De Brauw Blackstone Westbroek N.V., whose office is at
Tripolis 100/300, Burgerweeshuispad 301, 1076 HR Amsterdam, the Netherlands;

 

“Notice” has the meaning set out in Clause 15.11.1;

 

“Nutreco” means Nutreco Holding N.V., a limited liability
company incorporated in the Netherlands;

 

“Nutreco’s Accountant” means KPMG;

 

“Nutreco Accounting Principles” has the meaning defined in  Schedule 7 (Part 1);

 

“Nutreco Accounts” means the pro forma balance sheet in
respect of the Nutreco Activities for the 8 (eight) months period ended on 31 August 2004,
as set out in Schedule 12;

 

“Nutreco Activities” has the meaning given in recital A, as
further specified in Schedule 2 (Part 1) and Schedule 2 (Part 2);

 

“Nutreco Additional Equity Instrument” has
the meaning given in Schedule 9 (Part 2);

 

“Nutreco
Closing Financial Statements” means the balance sheet, profit and loss account, cash flow
statement and statement of movement on shareholders’ equity in respect of the
Nutreco JV Activities for the period from 31 August 2004 until and
including the Closing Date, including an explicit explanation and demonstration
of any impact of a change in accounting policy (e.g. to IFRS) from the one used
in the Nutreco Accounts;

 

“Nutreco Contributed Shares” means, in relation to the
Nutreco JV Companies, the shares specified in Schedule 2 (Part 1);

 

“Nutreco Contribution Plan” means the disentanglement and
contribution plan set out in Schedule 2 (Part 3);

 

“Nutreco Data Rooms” means the data rooms containing
documents and information relating to the Nutreco Group made available by
Nutreco, the contents of which are listed in annex 1 to the Nutreco Disclosure
Letter;

 

42

 

“Nutreco Disclosure Letter” means the letter dated the
Signing Date from Nutreco to Stolt B.V. attached as Schedule 10 (Part 2);

 

“Nutreco Group” means Nutreco and its subsidiaries,
excluding, where applicable and after Closing, the Nutreco JV Companies and
Nutreco JV Businesses;

 

“Nutreco Initial Contribution” means the payment of EUR
45,000 (forty five thousand Euro) in respect of the Nutreco Initial Shares
issued to Nutreco at the Company’s incorporation;

 

“Nutreco Initial Shares” means 45,000 (forty five thousand)
shares in the capital of the Company issued to Nutreco at the Company’s
incorporation;

 

“Nutreco JV Businesses” means the unincorporated businesses
carried on by the relevant members of the Nutreco Group to be contributed to
the Company, particulars of which are contained or referred to in Schedule 2
(Part 2), and “Nutreco JV Business”
means anyone of them or the relevant one of them, as the context requires;

 

“Nutreco JV Companies” means the Companies, to be contributed
by Nutreco to the Company and particulars of which are set out in Schedule 2
(Part 1) and “Nutreco JV Company”
means anyone of them or the relevant one of them, as the context requires;

 

“Nutreco’s Lawyers” means De Brauw Blackstone Westbroek N.V.
of Tripolis 300, Burgerweeshuispad 301, 1076 HR Amsterdam, the Netherlands;

 

“Nutreco L&K Karlsen Interest” means Nutreco’s interest
in L&K Karlsen Holding AS;

 

“Nutreco Shares” means the shares in the capital of the
Company held by Nutreco immediately after Closing, being the Nutreco Initial
Shares equalling to 75% of the total issued and outstanding share capital of
the Company;

 

“Nutreco Warranties” means the statements set out in Schedule 10 (Part 1) and the Tax warranties of Nutreco set out in Schedule 9 (Part 3);

 

“Parties” means Nutreco, Stolt B.V. and Stolt collectively
and a “Party” means any of them or the
relevant one of them, as the context requires;

 

“Permitted Encumbrances” means (i) security interests
arising in the ordinary course of business or by operation of law, (ii) security
interests arising under sales contracts with title retention provisions and
equipment leases with third parties involving expenditure of less than EUR
100,000 (one hundred thousand euro) per year and entered into in the ordinary
course of business, and (iii) security interests for Taxes and

 

43

 

other
governmental charges which are not due and payable or which may be paid without
penalty;

 

“Regulation” has the meaning set out in Clause 3.1.1;

 

“Reporting  Accountants”
means a firm of accountants to be agreed by Nutreco and Stolt B.V. within (5) five
Business Days of a notice by Nutreco to Stolt B.V., or vice versa,
requiring such agreement or, failing such agreement, to be nominated, on the
application of Nutreco or Stolt B.V., by or on behalf of the chairman of the
Royal Netherlands Institute of Chartered Accountants (‘NIVRA’);

 

“Shareholders Agreement” means the shareholders agreement to
be entered into between Nutreco, Stolt B.V. and Stolt and co-signed for
acknowledgement by the Company at Closing in the form of Schedule 5;

 

“Signing” means the signing by the Parties of this Agreement;

 

“Signing Date” means the day on which the Party last signing
this Agreement has signed this Agreement;

 

“Stolt” means Stolt-Nielsen S.A., a limited liability company
incorporated in Luxembourg;

 

“Stolt’s Accountant” means Deloitte;

 

“Stolt Accounting Principles” has the meaning defined in Schedule 7 (Part 2);

 

“Stolt Accounts” means the pro forma balance sheet in respect
of the Stolt Activities as at 31 August 2004, as set out in Schedule 13;

 

“Stolt Activities” has the meaning given in recital B, as
further specified in Schedule 3 (Part 1) and Schedule 3 (Part 2);

 

“Stolt  Additional Equity
Instrument” has the
meaning given in Schedule 9 (Part 2);

 

“Stolt B.V.” means Stolt Sea Farm Investments B.V., a private
company with limited liability incorporated in the Netherlands;

 

“Stolt
Closing Financial Statements” means the
balance sheet, profit and loss account, cash flow statement and statement of
movement on shareholders’ equity in respect of the Stolt Activities for the
period from 31 August 2004 until and including the Closing Date, including
an explicit explanation and demonstration of any impact of a change in
accounting policy (e.g. to IFRS) from the one used in the Stolt Accounts;

 

“Stolt Contributed Shares” means, in relation to the Stolt JV
Companies, the shares specified in Schedule 3 (Part 1);

 

44

 

“Stolt Contribution Plan” means the disentanglement and
contribution plan, steps and process set out in Schedule 3 (Part 3);

 

“Stolt Data Rooms” means the data rooms containing documents
and information relating to the Stolt Group made available by Stolt, the
contents of which are listed in annex 1 to the Stolt Disclosure Letter;

 

“Stolt Disclosure Letter” means the letter dated the Signing
Date from Stolt B.V. to Nutreco attached as Schedule 11 (Part 2);

 

“Stolt Group” means Stolt and its subsidiaries, excluding, if
applicable and after Closing, the Stolt JV Companies and Stolt JV Businesses;

 

“Stolt JV Businesses” means the unincorporated businesses
carried on by the relevant members of the Stolt Group to be contributed to the
Company, particulars of which are contained or referred to in Schedule 3 (Part 2),
and “Stolt JV Business” means anyone of them
or the relevant one of them, as the context requires;

 

“Stolt JV Companies” means the Companies, to be contributed
by Stolt B.V. to the Company and particulars of which are set out in Schedule 3
(Part 1) and “Stolt JV Company”
means anyone of them or the relevant one of them, as the context requires;

 

“Stolt Lawyers” means Freshfields Bruckhaus Deringer of
Apollolaan 151, 1077 AR, Amsterdam, the Netherlands;

 

“Stolt Shares” means the shares in the capital of the Company
held by Stolt B.V. immediately after Closing, being 15.000 (fifteen thousand)
shares equalling to 25% of the total issued and outstanding share capital of
the Company;

 

“Stolt Warranties” means the statements set out in Schedule 11 (Part 1) and the Tax warranties of Stolt set out in Schedule 9 (Part 4);

 

Supervisory
Board Rules” means the rules of the
internal organisation and proceedings of the supervisory board of the company
as amended from time to time, attached as Annex 5 to Schedule 4;

 

“Supply Agreement” means the Supply Agreement to be entered
into at Closing between Skretting AS and its relevant subsidiaries and the Company
substantially in the form of Schedule 5;

 

“Taxation” or “Tax” means all
forms of taxation whether direct or indirect and whether levied by reference to
income, profits, gains, net wealth, net worth, equity, asset values, turnover,
gross receipts, added value or other reference, and statutory, governmental,
state, provincial, local governmental or municipal impositions,

 

45

 

duties,
contributions, rates and levies (including sales and use taxes, social security
contributions and any other payroll taxes), whenever and wherever imposed
(whether imposed by way of a withholding or deduction for or on account of tax
or otherwise) and in respect of any person, and all penalties, charges, costs
and interest relating thereto;

 

“Tax Authority” means any taxing or other authority competent
to impose any liability in respect of Taxation or responsible for the
administration and/or collection of Taxation or enforcement of any law in
relation to Taxation;

 

“Transaction” means the entering into by the Parties of the
joint venture in respect of the JV Activities to be undertaken by the Company
and the contribution of the JV Activities to the Company;

 

“Transitional Services Agreement” means the Transitional
Services Agreement to be entered into at Closing between Nutreco and the
Company substantially in the form of Schedule 5;

 

“Tuna Supply Agreement” means the Tuna Supply Agreement to be
entered into at Closing between the relevant members of the Stolt Group and the
relevant members of the JV Group;

 

“VAT” means, within the European Union, such Tax as may be
levied in accordance with (but subject to derogation from) the Directive
77/338/EEC, and outside the European Union, any Taxation levied by reference to
added value, or sales or other similar transaction Taxes;

 

“Warranties” means Nutreco Warranties and/or Stolt
Warranties, as appropriate.

 

46

 

Schedule 2                            Nutreco Activities

 

Schedule 2
(Part 1)             Nutreco
JV Companies

 

The Nutreco JV
Companies are the companies as accounted for and, to the extent applicable,
reflected in the Nutreco Accounts and include the (existing or to be
incorporated) companies listed below. All Nutreco JV Companies are (indirectly)
100% subsidiaries, unless stated otherwise in this Schedule or the Annex
thereto or in Schedule 10 Part 2 Nutreco’s Disclosure Letter.

 

	
  Name Nutreco JV Company

  	
   

  	
  Name of company Nutreco Activities

  were transferred from (if applicable)

  
	
   

  	
   

  	
   

  
	
  The Netherlands

  	
   

  	
   

  
	
  Marine Harvest International Fish B.V.

  	
   

  	
  Nutreco International B.V.

  
	
  Marine Harvest B.V.

  	
   

  	
  Nutreco B.V.

  
	
  [Trouw International Fish B.V.]

  	
   

  	
  Trouw International B.V.

  
	
  Marine Harvest Europe B.V.

  	
   

  	
   

  
	
  Chile

  	
   

  	
   

  
	
  [Nutreco Fish Chile SA]

  	
   

  	
  Nutreco Chile SA

  
	
  Marine Harvest Chile SA

  	
   

  	
   

  
	
  Norway

  	
   

  	
   

  
	
  [Nutreco Holding Fish AS]

  	
   

  	
  Nutreco Holding AS

  
	
  Cod Culture Norway AS

  	
   

  	
   

  
	
  Marine Harvest AS and its subsidiaries as described in Annex 1 to this
  Schedule

  	
   

  	
   

  
	
  Scotland

  	
   

  	
   

  
	
  Marine Harvest Scotland Ltd.

  	
   

  	
   

  
	
  Pairc Salmon Ltd.

  	
   

  	
   

  
	
  Atlantic Sea Products Ltd.

  	
   

  	
   

  
	
  Followstart Ltd.

  	
   

  	
   

  
	
  Marine Harvest McConnell Ltd.

  	
   

  	
   

  
	
  Borsea Ltd.

  	
   

  	
   

  
	
  Borsea Hatcheries Ltd.

  	
   

  	
   

  
	
  Marine Harvest (Properties) Ltd.

  	
   

  	
   

  
	
  Eishken Estate Ltd.

  	
   

  	
   

  
	
  McConnell Salmon Ltd.

  	
   

  	
   

  
	
  Ireland

  	
   

  	
   

  
	
  Marine Harvest Fanad Ltd.

  	
   

  	
   

  
	
  Fanad Fisheries Trading Ltd.

  	
   

  	
   

  
	
  Bradan Fanad Teo

  	
   

  	
   

  
	
  Bradan (Maoil Rua) Teo

  	
   

  	
   

  
	
  Fanad Pettigeo Teo

  	
   

  	
   

  
	
  Bradan Proiseal Teo (only 15% of the shares are held within the
  Nutreco JV Group)

  	
   

  	
   

  
	
  Japan

  	
   

  	
   

  
	
  Nutreco Aquaculture Japan KK

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  Canada Newco

  [Note: if no Stolt entity is used]

  	
   

  	
  IThe fish assets
  from Nutreco Canada Inc. will be transferred to Canada Newco

  [Note:
  if a Stolt entity is used the fish assets will be directly transferred from
  Nutreco Canada Inc. to the Stolt entity]

  
	
  Poland

  	
   

  	
   

  
	
  Poland Newco

  	
   

  	
  Fish assets
  to be transferred from Trouw Nutrition Polska SpZoo

  
	
  France

  	
   

  	
   

  
	
  Marine
  Harvest SAS France

  	
   

  	
   

  
	
  United
  States

  	
   

  	
   

  
	
  Marine
  Harvest America Inc.

  	
   

  	
   

  
	
  US Newco

  	
   

  	
  Fish assets
  to be transferred from Marine Harvest USA

  
	
  Australia

  	
   

  	
   

  
	
  Australian
  Newco

  	
   

  	
  Fish assets
  to be transferred from Gibson’s Ltd.

  

 

47

 

Schedule 2 (Part 2)             Nutreco JV Businesses

 

The Nutreco JV
Businesses are the businesses as accounted for and, to the extent applicable,
reflected in the Nutreco Accounts, including the businesses and assets listed
below.

 

France

Marine Harvest
France SNC

 

Ireland

Irish Salmon
Producer Group (15% is owned within the Nutreco JV Group)

 

Canada

The fish
assets of Nutreco Canada Inc. (which will be transferred to either Canada Newco
or the Stolt entity)

 

Poland

Fish assets of
Trouw Nutrition Polska SpZoo

 

United States of America

Fish assets of
Marine Harvest USA

 

Australia

Fish assets of
Gibson’s Ltd.

 

48

 

Schedule 2 (Part 3)             Nutreco Contribution Plan

 

Please
find below an overview per jurisdiction of the main steps that will be taken in
order to disentangle Nutreco’s fish farming business from its other businesses.
The overview is based on the Disentanglement Plans prepared by Nutreco’s local
counsel, in which the steps included in this memorandum are outlined in detail.

 

1              The Netherlands

 

1.     Demerger of
Trouw International B.V. pursuant to which the shares in Marine Harvest Europe
B.V. (and [Nutreco Chile Fish SA] (20%), see below) will be separated into a
new company, [Trouw International Fish B.V.], and all other activities will
remain within Trouw International B.V.

 

2.     Demerger of
Nutreco B.V. pursuant to which the shares in [Trouw International Fish B.V.]
will be separated into a new company, Marine Harvest B.V., and all other
activities will remain within Nutreco B.V.

 

3.     Demerger of
Nutreco International B.V. pursuant to which all of the fish assets will be
separated into a new company, Marine Harvest International B.V., and all other
activities will remain within Nutreco International B.V.

 

4.     Transfer of
shares in Marine Harvest Scotland Ltd. by Nutreco Holding N.V. to Marine
Harvest International B.V. in exchange for shares.

 

5.     Contribution
by Nutreco Holding N.V. in exchange for shares of Marine Harvest International
B.V. to a newly incorporated holding company, Marine Harvest N.V., which will
be the joint venture company.

 

2              Chile

 

1.     Transfer of “feed
assets” from Marine Harvest Chile SA to Nutreco Chile SA.

[Note: depending
on the outcome of the valuation it might be decided that, instead of the
transfer of the feed assets, Marine Harvest Chile will be demerged to separate
the feed assets]

2.     Demerger
under Norwegian law of Nutreco Holding AS (see below), pursuant to which 25% of
the shares in Marine Harvest Chile SA will be separated to a new company,
[Nutreco Holding Fish AS] and the other assets will remain within Nutreco
Holding AS.

2.     Demerger of
Nutreco Chile SA pursuant to which the shares in Marine Harvest Chile SA and
the associated leased assets will be separated into a new company, [Nutreco
Chile Fish SA], and all other activities will remain within Nutreco Chile SA.

 

49

 

Consequences of the demerger of Trouw International
B.V. (Netherlands step 1)

Pursuant
to the demerger of Trouw International B.V. the shares held by Trouw International B.V. prior to its demerger in Nutreco Chile Fish SA (20%) will be
separated to [Trouw International Fish B.V.]

 

Consequences of the demerger of Nutreco International
B.V. (Netherlands step 3)

Pursuant
to the demerger of Nutreco International B.V. the shares held by Nutreco International B.V. prior to its demerger in Nutreco Chile Fish SA (80%) will be
separated to [Nutreco International Fish B.V.].

 

3              Norway

 

1.     Transfer of
the shares in Aqua Gen AS held by Skretting AS to Marine Harvest Norway AS.

2.     Demerger of
Nutreco Holding AS, pursuant to which 25% of the shares in Marine Harvest Chile
SA will be separated to a new company, [Nutreco Holding Fish AS] and the other
assets will remain within Nutreco Holding AS.

 

Consequences of the demerger of Nutreco International
B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in
Marine Harvest AS, Cod Culture Norway AS and [Nutreco Holding Fish AS], will be
separated to Marine Harvest International B.V..

 

4              United Kingdom

 

After the demerger of Nutreco International B.V, the following
step will be taken in the UK:

 

1.     Transfer of
shares in Marine Harvest Scotland Ltd. by Nutreco Holding N.V. to Marine
Harvest International B.V. in exchange for shares.

 

5              Ireland

 

1.     Payment of a
dividend to Trouw Aquaculture Ltd., in order to reduce the value of Marine
Harvest Fanad to less than its tax value of EUR 12.5 million.

2.     Sale of
shares in Marine Harvest Fanad Ltd. to Nutreco International B.V.

 

Consequences of the demerger of Nutreco International
B.V. (Netherlands step 3)

Pursuant
to the demerger of Nutreco International B.V. the shares in Marine Harvest Fanad Ltd., will be separated to
Marine Harvest International B.V..

 

50

 

6              Japan

 

Consequences of the demerger of Nutreco International
B.V. (Netherlands step 3)

Pursuant
to the demerger of Nutreco International B.V. the shares in Nutreco Aquaculture
Japan KK will be separated to Marine Harvest International B.V..

 

7              Canada

 

1.     Establishment
of Canada Newco, a new company to be incorporated by Nutreco International B.V.
or designation of an existing Stolt entity to which the Canadian fish farming
assets can be separated.

2.     Transfer of
the fish farming assets from Nutreco Canada Inc. to Canada Newco, or the
designated Stolt entity.

 

Consequences of the demerger
of Nutreco International B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in
Canada Newco will be separated to Marine Harvest International B.V. If instead of
Canada Newco an existing Stolt entity will be used (see under 1 and 2 above)
the demerger of Nutreco International B.V. will have no consequences for the
joint venture.

 

8              Poland

 

1.     Establishment
Poland Newco, a new company to be incorporated by Nutreco International B.V.

2.     Sale of the
fish assets of Trouw Nutrition Polska to Poland Newco.

 

Consequences of the demerger
of Nutreco International B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in
Poland Newco will be separated to Marine Harvest International B.V..

 

9              France

 

1.     Sale of
shares in Marine Harvest France S.A.S. by Nutreco France S.A.S. to Nutreco
International B.V.

 

Consequences of the demerger
of Nutreco International B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in
Marine Harvest France S.A.S. will be separated to Marine Harvest International
B.V..

 

51

 

10           United States

 

1.     Establishment
of US Newco, a new company to be incorporated by Nutreco International B.V.

2.     Liquidation
and dissolution of Euribrid Inc., pursuant to which the shares in Marine
Harvest USA Inc. will be directly held by Anchor USA Inc.

3.     Liquidation
and dissolution of Marine Harvest USA Inc., pursuant to which the assets and
liabilities of Marine Harvest USA Inc. pass to Anchor USA Inc.

4.     Issuance of
US Newco shares to Nutreco International B.V.

5.     The transfer
to US Newco of certain of assets and liabilities received by Anchor USA
Inc.  in step 3.

6.     The issuance
of the shares in Marine Harvest America Inc. (an existing company which shares
have not yet issued) to Nutreco International B.V.

 

Consequences of the demerger
of Nutreco International B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in US
Newco and possibly Marine Harvest America Inc. (depending on which company will
subscribe to the shares of Marine Harvest America Inc.) will be separated to
Marine Harvest International B.V..

 

11           Australia

 

1.     Establishment
of Australian Newco, a new company to be incorporated by Nutreco International
B.V.

2.     Transfer of
the fish trade and assets of Gibson’s Ltd. to Australia Newco.

 

Consequences of the demerger
of Nutreco International B.V. (Netherlands step 3)

Pursuant to the demerger of Nutreco International B.V. the shares in Australia Newco will be separated to Marine Harvest International
B.V.

 

52

 

Schedule 3                            Stolt
Activities

 

Schedule 3 (Part 1)             Stolt JV Companies

 

The SSF JV
Companies are the companies as accounted for and, to the extent applicable,
reflected in the SSF Accounts and include the (existing or to be incorporated)
companies listed below. All SSF JV Companies are (indirectly) 100%
subsidiaries, unless stated otherwise in this Schedule or in Schedule 11
Part 2 SSF’s Disclosure Letter.

 

	
  Name SSF JV Company

  	
   

  	
  Name of company SSF

  Activities were transferred

  from (if applicable)

  
	
   

  	
   

  	
   

  
	
  The Netherlands

  	
   

  	
   

  
	
  Stolt Salmon Holdings BV

  	
   

  	
  Stolt Sea Farm Holdings BV

  
	
  Chile

  	
   

  	
   

  
	
  Stolt Sea farm Limitada

  	
   

  	
   

  
	
  Pesquera Eicosal Limitada

  	
   

  	
   

  
	
  Ocean Horizons

  	
   

  	
   

  
	
  Inversion Aqua Foods Chile SA

  	
   

  	
   

  
	
  Norway

  	
   

  	
   

  
	
  Stolt Sea Farm AS

  	
   

  	
   

  
	
  Stolt Sea Farm Halibut AS

  	
   

  	
   

  
	
  Stolt Cocoon AS

  	
   

  	
   

  
	
  Stolt Polar AS (53,6% owned)

  	
   

  	
   

  
	
  Scotland

  	
   

  	
   

  
	
  Stolt Sea Farm Ltd

  	
   

  	
   

  
	
  Japan

  	
   

  	
   

  
	
  Stolt Cocoon KK

  	
   

  	
   

  
	
  Scandi Food Corporation

  	
   

  	
   

  
	
  Korea

  	
   

  	
   

  
	
  Stolt Sea
  Farm Ltd

  	
   

  	
   

  
	
  Hong Kong

  	
   

  	
   

  
	
  Stolt Sea
  Farm Ltd

  	
   

  	
   

  
	
  Belgium

  	
   

  	
   

  
	
  Stolt Sea
  Farm NV

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  Stolt Sea
  Farm Inc (New Brunswick)

  	
   

  	
   

  
	
  United
  States

  	
   

  	
   

  
	
  Stolt Sea
  Farm Inc (Delaware)

  	
   

  	
   

  
	
  International
  Aqua Foods Inc

  	
   

  	
   

  
	
  North
  America Tilapia (79% owned)

  	
   

  	
   

  
	
  Green Sea
  Culture Ltd (60% owned)

  	
   

  	
   

  
	
  Stolt Sea
  Farm California LLC (75% owned)

  	
   

  	
   

  
	
  Singapore

  	
   

  	
   

  
	
  Stolt Sea
  Farm Ltd

  	
   

  	
   

  

 

53

 

Schedule 3
(Part 2)             Stolt JV
Businesses

 

The SSF JV
Businesses are the businesses as accounted for and, to the extent applicable,
reflected in the SSF Accounts, where the SSF ownership is 50% or less.

 

	
  Name SSF JV businesses

  	
   

  	
  Name of company SSF

  Activities were transferred

  from (if applicable)

  
	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  
	
  Englewood Packaging Company Ltd (50% owned)

  	
   

  	
   

  
	
  Chile

  	
   

  	
   

  
	
  Landcatch Chile SA (50% owned)

  	
   

  	
   

  

 

54

 

Schedule 3 (Part 3)             Stolt
Contribution Plan

 

The following
steps have been or will be taken by the Stolt Group in order to facilitate the
contribution of the agreed part of its sea farming business to the newly formed
joint venture company, Marine Harvest N.V.

 

1.             Ownership of the shares of Marine Harvest

 

a)             Stolt-Nielsen
Transportation Group Ltd. is in the process of forming a new Netherlands
subsidiary, Stolt Sea Farm Investments B.V. This company will own the
Stolt-Nielsen Group’s 25% interest in Marine Harvest N.V.

 

b)            Stolt
Sea Farm Investments B.V. will form a new Netherlands subsidiary, SSF Salmon
Holdings B.V., to be used as the holding company for those subsidiaries forming
the contributed business. This company will be the company contributed to
Marine Harvest N.V. in exchange for shares.

 

2.             Companies forming the contributed group to SSF Salmon Holdings B.V.

 

Ownership
of the following companies will be transferred from Stolt Sea Farm Holdings
B.V. to SSF Salmon Holdings B.V.:

 

a)             Stolt
Sea Farm A.S. (a Norwegian company)

 

At the
time of the transfer, Stolt Sea Farm A/S will be the shareholder of:

 

i)              Stolt
Sea Farm Halibut A/S. The turbot business will have been sold to a new company,
Stolt Sea Farm Turbot Norway A/S, which company will not be a part of the
contributed group.

 

ii)             Stolt
Polar A/S (53.6% owned)

 

iii)            Stolt
Cocoon A/S. This company is the shareholder of the Japanese company Stolt Sea
Farm KK, which has a 100% owned subsidiary, Skandi Food Corporation.

 

b)            Stolt Sea Farm Ltd. (a UK
company)

 

At the
time of transfer Stolt Sea Farm Ltd will be the shareholder of:

 

i)              Harlosh
Salmon Company Ltd. (This company is in the process of being wound up and will
only be contributes if this can not be completed before closing)

 

c)             Stolt Sea Farm N.V. (a
Belgium company)

 

d)            Stolt Sea Farm Ltd. (a
Singapore company)

 

At the time of transfer Stolt Sea Farm Ltd will be the
shareholder of:

 

i)              Stolt Sea Farm Ltd (a Korean company)

 

ii)             Stolt Sea Farm Company Ltd (a Hong Kong company)

 

iii)            Norfisk
Ltd (a Singapore company) (This company is in the process of being wound up and
will only be contributes if this can not be completed before closing)

 

e)             Stolt Sea Farm Inc. (a US
[Delaware] company)

 

At the time of transfer Stolt Sea Farm Inc will be the
shareholder of:

 

i)              Stolt Sea Farm California LLC (75% owned)

 

f)             Stolt Sea Farm
Limitada.  ( a Chile company)

 

At the time of
transfer Stolt Sea Farm Limitada will be the shareholder of:

 

i)              Pesquera Eicosal Limitada

 

ii)             Ocean Horizons

 

iii)            Landcatch Chile SA (50% Owned)

 

g)            Stolt Sea Farm Inc. (a
Canadian company)

 

At the time of transfer Stolt Sea Farm Inc will be the
shareholder of:

 

i)              International Aqua Foods Inc (a US
Company)

 

ii)             North America Tilapia Inc (79%
owned)

 

iii)            Green Sea Culture Ltd (60% owned)

 

iv)           Englewood Packing Company Ltd. (50%
owned)

 

v)            Inversion Aqua Foods Chile S.A. (a
Chile company)

 

55

 

Schedule 4            Closing obligations

 

(Clause 5)

 

1.     General Obligations

 

1.1      At the Closing, Nutreco shall
deliver or make available to Stolt B.V. the following:

 

1.1.1     evidence of
the due fulfilment of the Conditions Precedent for which Nutreco is
responsible; and 

 

1.1.2     evidence
that Nutreco is authorised to sign this Agreement and that Nutreco Canada Inc.
is authorised to sign the local deed of transfer referred to in Paragraph
2.2.3.

 

1.2      At the Closing, Stolt B.V. shall
deliver or make available to Nutreco the following:

 

1.2.1     evidence of the due fulfilment
of the Conditions Precedent for which Stolt B.V. is responsible;

 

1.2.2     evidence
that Stolt B.V. and Stolt are authorised to sign this Agreement.

 

1.3      At the Closing, the Parties
shall procure that the Company shall deliver or make available to the Parties
the following:

 

1.3.1     evidence
that the Company is authorised to co-sign this Agreement for acknowledgement.

 

2.     Transfer of the Nutreco Activities and Stolt Activities and
acceptance of the JV Activities

 

2.1      General
transfer obligations

 

2.1.1     At the
Closing, Nutreco shall, and shall procure that the relevant member of the
Nutreco Group, execute and/or deliver and/or make available any transfer and
contribution deeds and take such steps as are required to transfer the Nutreco
Activities to the Company or relevant member of the JV Group.

 

2.1.2     At the
Closing, Stolt B.V. shall, and shall procure that the relevant member of the
Stolt Group, execute and/or deliver and/or make available any transfer and
contribution deeds and take such steps as are required to transfer the Stolt
Activities to the Company or

 

56

 

relevant
member of the JV Group.

 

2.1.3     At the
Closing, the Parties shall procure that the Company shall, and shall procure
that the relevant member of the JV Group shall, execute and/or deliver and/or
make available any transfer and contribution deeds and take such steps as are
required to accept the transfer of the JV Activities to the Company or relevant
member of the JV Group.

 

2.2      Specific transfer
obligations

 

For the
purpose of compliance with Paragraph 2.1, 

 

2.2.1     Nutreco
shall contribute the shares in Marine Harvest International B.V. to the Company
as non-stipulated share premium, the Company shall accept the contribution and,
if applicable,  issue the Nutreco
Additional Equity Instrument to Nutreco, which shall be accepted by Nutreco,
and Nutreco shall procure that Marine Harvest International B.V. acknowledges
the contribution, the foregoing to be effected by execution by Nutreco, the Company,
and Marine Harvest International B.V., before the Notary, of a deed of
contribution, (substantially) in the form as attached hereto as Annex 1;

 

2.2.2     The Company
shall not issue new shares in its capital to Nutreco in return for the
contribution referred to in Paragraph 2.2.1. 

 

2.2.3     Nutreco
shall procure that Nutreco Canada Inc shall transfer its JV Activities to a
Stolt entity or a newly incorporated subsidiary of Nutreco, the Stolt entity or
such newco shall accept the transfer, the foregoing to be effected by execution
of by Nutreco Canada Inc. of the necessary local transfer document; and

 

2.2.4     Stolt B.V.
shall contribute the shares in SSF Salmon Holdings B.V. to the Company as
non-stipulated share premium, the Company shall accept the contribution, and,
if applicable,  the Company shall issue
the Stolt Additional Equity Instrument to Stolt B.V., which shall be accepted
by Stolt B.V., and Stolt B.V. shall procure that SSF Salmon Holdings B.V.
acknowledges the contribution, the foregoing to be effected by execution by
Stolt B.V., the Company, and SSF Salmon Holdings B.V., before the Notary, of a
deed of contribution, (substantially) in the form as attached hereto as Annex
3.

 

3.     Issuance of Stolt Shares

 

3.1      The Parties shall procure that
the Company shall issue the Stolt Shares to Stolt B.V. against payment of EUR
15,000 (fifteen thousand euro) in cash, and Stolt B.V. shall accept the Stolt
Shares, the foregoing to be effected by execution by the Company and Stolt B.V.
before the Notary, of a deed of issue, substantially in the form as attached
hereto as Annex 2.

 

57

 

Schedule 8            Retirement
Benefits

 

The Parties
shall negotiate in good faith and agree at the latest 1 (one) month before the
Closing Date on the Retirement Benefits arrangements in respect of the relevant
JV Activities, taking the following into account.

 

For the
purpose of drawing up the Nutreco Closing Financial Statements and the Stolt
Closing Financial Statements under IFRS accounting principles, the amount of
the provisions to be included for Retirement Benefits shall be determined
according to the following procedure:

 

1.     Nutreco and Stolt shall consult with each other and agree the
following actuarial assumptions to be used for the calculations.  These assumptions will include: (i) discount
rate, (ii) salary increases, (iii) pensions increases in deferment
and payment and shall be acceptable to Nutreco’s Accountant and Stolt’s
Accountant.

 

2.     With regard to Nutreco, the following specific assumptions shall be
used: (i) all employees and former employees (including deferred
pensioners and pensioners), who are related to the business being transferred
to the JV who are covered by the Nutreco U.K. Pension Fund, shall be
transferred out of the Nutreco U.K. Pension Fund to a newly created JV pension
fund in the U.K., and (ii) the planned change in the Nutreco U.K. Pension
Fund plan from a defined benefit scheme to a defined contribution scheme shall
have been implemented.

 

3.     Nutreco and Stolt shall instruct their respective Retirement
Benefits consultants to calculate the respective amounts of the provisions to
be included in the Closing Financial Statements for Retirement Benefits using
the agreed upon actuarial assumptions.

 

4.     Should the provision to be included in the Nutreco Closing Financial
Statements for Retirement Benefits exceed an amount of EUR 15 Million, then
Nutreco will pay an amount equal to 25% of such excess to Stolt.

 

5.     Should the IFRS impact on Stolt’s retirements benefits provisions to
be included in the Stolt Closing Financial Statements for Retirement Benefits
exceed an amount of EUR 2 Million, then Stolt will pay to Nutreco an amount
equal to 75% of such excess to Nutreco.

 

58

 

Schedule 9            Tax Indemnity and covenants

 

Schedule 9 (Part 1)

 

Tax Indemnity and Covenants 

 

Definitions

 

“Effective Time”
means 31 August 2004;

 

“JV Relief” means any Relief arising to the Company or any JV Company to the
extent that it either arises in respect of an Event occurring or period
commencing after the Effective Time, or was included in the Nutreco or Stolt
Accounts as an asset;

 

“Nutreco Tax Liability”
means a Tax Liability of a Nutreco JV Company;

 

“Relief” includes, unless the context otherwise
requires, any allowance (including amortisation or depreciation), credit,
deduction, exemption or set-off in respect of any Tax or relevant to the
computation of any income, profits or gains for the purposes of any Tax, or any
right to repayment of or saving of Tax and any reference to the use or set off
of relief shall be construed accordingly;

 

“Responsible Party”
has the meaning given in Clause 12 of Schedule 9 (Part 1);

 

“Stolt Tax Liability”
means a Tax Liability of a Stolt JV Company;

 

“Tax Indemnifying Party” means the Party that
is required to indemnify the other Party, and “Tax Indemnified Party” means such other Party, pursuant to the
Tax indemnity set forth in Schedule 9 (Part 1);

 

“Tax Indemnifying Party’s
Accounts” means the Nutreco Accounts or the Stolt Accounts, as the
context requires;

 

“Tax Indemnifying Party’s
Activities” means the Nutreco Activities or the Stolt Activities, as
the context requires;

 

“Tax Indemnifying Party’s Closing Financial Statements” means
the Nutreco Closing Financial Statements or the Stolt Closing Financial
Statements, as the context requires;

 

“Tax Indemnifying Party ́s Disentanglement” means Nutreco’s disentanglement as
contemplated by the plan set out in Schedule 2 (Part 3) or Stolt’s
disentanglement as contemplated by the plan set out in Schedule 3 (Part 3),
as the context requires;

 

“Tax Liability” means:

 

(a)           a liability of the Company or a JV
Company to make or suffer an actual or increased payment of or in respect of
Tax; and

 

(b)           the use or set off of any JV Relief
in circumstances where, but for such use or set off, the Company or any JV
Company would have had an actual Tax liability in respect of which the Tax
Indemnified Party would have been able to make a claim against the Tax
Indemnifying Party under Schedule 9 (Part 1) (the amount of the Tax
liability for these purposes being deemed to be equal to the amount of the
actual liability to Tax that is saved by the use of set off of the JV Relief);
provided that for the purposes of Schedule 9 (Part 1) it shall be
assumed that Reliefs other than any JV Relief are, to the

 

59

 

extent allowed
by law, used in priority to any JV Relief, and if it cannot be determined
whether a JV Relief or another Relief is so used, it shall be assumed that
another Relief is used in priority to any JV Relief;

 

“Tax Refund” has the meaning given in Clause 8 of Schedule 9
(Part 1);

 

Capitalised terms not defined above shall have the
same meanings as they have for purposes of the Contribution Agreement;

 

1.     Nutreco shall indemnify Stolt against any
Nutreco Tax Liability, and Stolt shall indemnify Nutreco against any Stolt Tax
Liability:

 

1.1          in respect of or arising from any Event
effected prior to the Effective Time; or

 

1.2          by reference to any income, profits, gains
earned, accrued or received by a JV Company prior to the Effective Time; or

 

1.3          by reference to the net wealth, net worth,
equity, capital, asset values, turnover, gross receipts, added value,
insurance, importation or exportation or other reference of a JV Company prior
to the Effective Time; or

 

1.4          in respect of any member of any consolidated
or combined fiscal unity or unitary group to which any JV Company belongs, or
has belonged, at any time prior to the Effective Time; or

 

1.5          resulting from any actions taken by the Tax
Indemnifying Party or any member of its Group with respect to the Tax
Indemnifying Party’s Activities in the period between the Effective Time and
the Closing Date which are outside the ordinary course of business and/or in
violation of the pre-closing covenants set out in Clause 4.1 of the Agreement,
with the understanding that any Tax Liability which arises from the Tax
Indemnity Party’s Contribution Plan is deemed to be outside the ordinary course
of business.

 

2.     Subject to the
limitations set forth in Clause 5 of this Schedule 9 (Part 1), the Tax
Indemnifying Party shall pay an amount equal to the Tax Liability (i) to
the Company, to the extent possible by way of
adjustment to the contributions of the Tax Indemnifying Party’s Activities or (ii), at the option of the Tax Indemnified
Party, to the Tax Indemnified Party, on a pro
rata parte basis in proportion to the Tax Indemnified Party’s
relative stake in the Company, to the extent possible by way of partial
consideration for the contribution made by the Tax Indemnified Party to the
Company or (iii), if and to the extent the debt capacity of the JV Group is not
adversely affected thereby, by another appropriate manner to be agreed between
the Parties.

 

3.     The due date for payment under Clause 2 of
this Schedule 9 (Part 1) shall be the date falling 10 (ten) Business
Days prior to the latest date for payment of the relevant Taxes, provided that
such date is after the date of any claim in respect thereof made by the Tax
Indemnified Party against the Tax Indemnifying Party under this Schedule 9
(Part 1).

 

4.     For the avoidance of
doubt, Clause 1 of this Schedule 9 (Part 1) shall cover any Tax
Liability to the extent relating to any profits earned or accrued before the
Effective Time or in respect of or arising from any Event effected before the
Effective Time and shall not cover any Tax Liability to the extent relating to
any profits earned or accrued on or after the Effective Time or in respect of
or arising from any Event effected on or after the Effective Time, except if
and to the extent Clause 1.5 of this Schedule 9 (Part 1) applies.

 

5.     The Tax Indemnifying
Party shall not be liable under Clause 1 of this Schedule 9 (Part 1):

 

5.1          to the extent that the Taxes have been provided
for, accrued, included as a liability, or reduced the value of an asset in the
Tax Indemnifying Party’s Accounts;

 

5.2          to the extent that such relevant Tax Liability was
discharged prior to Closing;

 

60

 

5.3          to the extent that such Tax Liability would not
have arisen but for a transaction carried out by the Tax Indemnified Party, the
Company or the relevant JV Company after Closing, except that this
exclusion shall not apply where any such transaction is (i) carried out in the ordinary course of
business of the company concerned or (ii) carried out pursuant to a
legally binding obligation entered into by the Tax Indemnified Party, the
Company or the relevant JV Company prior to Effective Time;

 

5.4          with respect to a Tax Liability in relation to the
actions referred to in Clause 1.5 to the extent that the Tax Liability has been
specifically provided for, accrued, included as a liability, or reduced the
value of an asset in the Tax Indemnifying Party’s Closing Financial Statements;

 

5.5          to the extent that the Tax Liability has been, is
or will be satisfied by the surrender or other transfer to the relevant JV
Company of any Relief by the Tax Indemnifying Party or by a member of the Tax Indemnifying
Party’s Group excluding the Company and the JV Companies;

 

5.6          to the extent that the Tax Liability has been, is
or will be satisfied by the use of a Relief other than JV Relief;

 

5.7          to the extent that recovery has been made by a
member of the JV Group in respect of the matter giving rise to Taxation;

 

5.8          in respect of any Tax Liability to the extent it
arises or is increased as a consequence of any change in transfer pricing
policy between or with the JV Companies, unless it was communicated and agreed
with both Parties before the change was implemented;

 

5.9          to the extent that the Tax Liability arises or is
increased as a consequence of any change in the accounting policy or practice
adopted by the Company and/or the relevant JV Company after Closing;

 

5.10        to the extent that the Tax Liability arises or is
increased as a consequence of any failure by the Tax Indemnified Party, the
Company, or the relevant JV Company to comply with any of its obligations under
this Schedule 9 (Part 1), except where such Party or company is
unable to comply with such obligations as a result of any failure by the Tax
Indemnifying Party to comply with its obligations under this Schedule 9 (Part 1);

 

5.11        in the event of an upward adjustment of the book
value of an asset for corporate income tax purposes at any time up to and
including the Effective Time, or during the period between the Effective Time
up to and including the Closing Date but only in relation to the Tax Indemnifying Party’s Disentanglement,
to the extent such adjustment results in a reduction of taxable income (or, if
such reduction is not actually claimed with respect to any financial year, it
could be claimed on the basis of the relevant Tax laws) as a result of (a) higher
depreciation allowances in respect of that asset, or (b) a reduction of
the capital gain (for Tax purposes) realized upon the disposition of that asset
by the relevant JV Company;

 

5.12        to the extent that the Tax Liability would not have
arisen but for, or has been increased by, a failure or omission by the Tax
Indemnified Party, the Company or any JV Company to make any claim for Relief,
election, surrender or disclaimer or give any notice or consent or do any other
thing after Closing the making, giving or doing of which was taken into account
or assumed in computing a provision for Taxation in the Tax Indemnifying Party’s
Accounts or Closing Financial Statements;

 

5.13        to the extent that the relevant Tax Liability
arises by reason of a disclaimer by any JV Company after Closing of any Relief
to which it is entitled or by reason of the revocation by JV Company after
Closing of any claim for Relief made by it (whether provisionally or otherwise)
before Closing; or

 

5.14        the Tax Liability arises as a result of any change
in rates of Tax made after the Effective Time or of any change in Law (or a
change in interpretation on the basis of case law), directive or requirement,
or the practice of any Tax Authority, occurring after the Effective Time.

 

61

 

6.     The Tax Indemnifying
Party shall not be liable under this Schedule 9 (Part 1) in respect
of any Tax Liability unless the Tax Liability in question or the Loss,
circumstance or liability giving rise to the claim under this Schedule 9 (Part 1)
shall have arisen, and the Tax Indemnified Party shall by notice in writing to
the Tax Indemnifying Party have given sufficient details of the claim to enable
the Tax Indemnifying Party to identify the matter giving rise to that Tax
Liability and the amount claimed in respect thereof, within 6 (six) months
following the expiry of the statute of limitation applicable.

 

7.     The Parties agree
that, to the extent the carry back of a net operating loss, capital loss or Tax
credit is at the discretion of the taxpayer, without the prior consent of the
Party that pursuant to this Agreement has contributed to the Company the shares
in the relevant JV Company (which consent shall not be unreasonably delayed or
withheld), it shall not, and shall not cause the Company or the relevant JV
Company to, carry back any net operating loss, capital loss, or Tax credit of
the relevant JV Company arising in any taxable period that begins on or after
the Effective Time to a taxable year ending on or before the Effective Time.

 

8.     If the Tax
Indemnified Party, the Company or any JV Company receives a rebate, refund or
repayment on or after the Effective Time in respect of Taxation from any Tax
Authority (other than where such rebate, refund or repayment arises as a result
of utilising a JV Relief) in respect of or arising from any Event effected
prior to the Effective Time, or receives a payment from another member of the
Tax Indemnifying Party’s Group in respect of a Relief in respect of or arising
from any Event effected prior to the Effective Time, where such payment,
rebate, refund or repayment has not been taken into account in computing the
relevant Tax Indemnifying Party’s Accounts (the amount of such rebate, refund,
repayment or payment being hereinafter referred to as a “Tax Refund”), then the
amount of the Tax Refund shall be set off against any undisputed payment then
due from the Tax Indemnifying Party pursuant to, and, where applicable on a pro
rata basis as set forth in, Clause 2 of this Schedule 10. To the extent
the Tax Refund exceeds any previous payment or payments made by the Tax
Indemnifying Party under this Schedule 10, a refund shall be made by the
Tax Indemnified Party or, as the case may be, the Company. To the extent that
the Tax Refund exceeds such a refund made by the Tax Indemnified Party or, as
the case may be, the Company, the remainder of the excess shall be carried
forward and set off against any future payment or payments which become due
from such Tax Indemnifying Party under this Schedule 10.

 

9.     To the extent
(legally) possible, the payments to be made pursuant to this Schedule 9 (Part 1)
shall be aggregated and discharged by way of set-off.

 

10.  The provisions of
this Schedule 9 (Part 1) shall also operate to limit or reduce the
liability of Nutreco and Stolt in respect of claims under the Tax warranties
included in Schedule 9 (Part 3) and Schedule 9 (Part 4),
respectively, insofar as it relates to Tax.

 

11.

 

11.1        If Nutreco, Stolt and/or the Company become aware
after Closing of any matter which could give rise to a liability under this Schedule 9
(Part 1), such party shall procure that written notice with full details
of that matter is given as soon as reasonably practicable (and at least 10 (ten) days prior to the last date on which an
appeal can be submitted in relation to that matter to the relevant Tax
Authorities) to the Tax Indemnifying
Party and as regards any such matter the Tax Indemnified Party shall itself or
shall procure that the Company or the JV Company concerned shall at the request
of the Tax Indemnifying Party take such action as the Tax Indemnifying Party
may request to deal with the matter but subject as set out in Clause 11.2 and
Clause 11.3 of this Schedule 9
(Part 1) and subject to the Tax
Indemnified Party and the relevant JV Company being indemnified and secured to
their reasonable satisfaction by the Tax Indemnifying Party against all losses
(including additional Taxation), costs, damages and expenses which may be
incurred as a result.

 

11.2        The actions which the Tax Indemnifying Party may
reasonably request under Clause 11.1 of this Schedule 9 (Part 1) shall include (without limitation) that a JV
Company apply to postpone (so far

 

62

 

as
legally possible) the payment of any Tax and/or allowing the Tax Indemnifying
Party take on or take over at its own expense the conduct of all or any
proceedings of whatsoever nature arising in connection with the claim in
question.

 

11.3        The Tax Indemnified Party, the Company and each JV
Company shall be at liberty without reference to the Tax Indemnifying Party to
deal with any matter which could give rise to a liability under this Schedule 9
(Part 1) if the Tax Indemnifying Party, having been given written notice
of the matter in accordance with Clause 11.1 of this Schedule 9 (Part 1), does not within 20 Business Days of
receiving such notice make any such request as is mentioned in Clause 11.2 of this Schedule 9 (Part 1).

 

11.4        Neither the Tax Indemnified Party, the Company nor
any JV Company shall be required to take any action which involves contesting
any Tax assessment before any court or other appellate body (excluding the Tax
Authority demanding the Tax in question) unless the Tax Indemnifying Party
provides the Tax Indemnified Party with the written opinion of tax counsel to
the effect that an appeal against such Tax assessment will, on the balance of
probabilities, be won.

 

11.5        The Tax Indemnified Party shall procure that the
Tax Indemnifying Party and its duly authorised agents are (on reasonable notice
in writing to the Tax Indemnified Party) afforded such reasonable access to the
books, accounts, personnel, correspondence and documentation of the Company and
the JV Companies and such other reasonable assistance as may be reasonably
required to enable the Tax Indemnifying Party to exercise their rights under
this Clause 11.

 

12.  Each Party (the “Responsible
Party”) shall, at its own cost, prepare (or procure the preparation of), in a
manner and on a basis consistent with its past practice, and duly and properly
file or procure to be filed with each relevant Tax Authority, all Tax returns
or Tax filings in respect of the JV Companies that it has contributed to the
Company pursuant to this Agreement, to the extent that same are required to be filed
in respect of any period of account for Taxation purposes ending on or prior to
the Effective Time. The Responsible Party shall submit to the other Party, with
a copy to the Company, such Tax return or Tax filing in draft form at least 30
(thirty) Business Days before the last date when such Tax return or Tax filing
may be submitted to the relevant Tax Authority without incurring any liability
to interest or penalties. The Parties shall procure that the Company and the
relevant JV Company cause the Tax return or Tax filing to be authorised, signed
and submitted to the appropriate Tax Authority as soon as reasonably
practicable following their receipt from the Responsible Party, without
amendment or with such amendments as the Responsible Party may agree and shall
give the Responsible Party or its agent all such reasonable assistance as may
be required to agree those returns with the appropriate authorities. For the
avoidance of doubt, the Company and/or relevant JV Company shall pay, settle or
otherwise take care of the Tax Liability in respect of such Tax returns or Tax
filings, regardless of the liability of the relevant Tax Indemnifying Party
pursuant to this Schedule 9 (Part 1).

 

13.  The Parties shall
procure that the Company and each JV Company (i) shall, at its own cost,
prepare (or procure the preparation of), in a manner and on a basis consistent
with the relevant Party’s past practice, and duly and properly file or procure
to be filed with each relevant Tax Authority, all Tax returns or Tax filings to
the extent that same are required to be filed in respect of any period of
account for Taxation purposes commencing prior to the Effective Time and ending
after the Effective Time or commencing after the Effective Time, and (ii) shall
pay, settle or otherwise take care of the Tax Liability in respect of such Tax
returns or Tax filings. The Company and the relevant JV Company shall submit to
the Tax Indemnifying Party and the Tax Indemnified Party Tax returns or Tax
filings which may result in a Tax Liability referred to in Clause 1.5 of this Schedule 9
(Part 1) in draft form at least 30 (thirty) Business Days before the last
date when such Tax return or Tax filing may be submitted to the relevant Tax
Authority without incurring any liability to interest or penalties. The Tax
Indemnifying Party and the Tax Indemnified Party shall procure that the Company
and the relevant JV Company cause the Tax returns or Tax filings to be
authorised, signed and submitted to the appropriate Tax Authority as soon

 

63

 

as reasonably
practicable following their receipt from the Tax Indemnifying Party, without
amendment or with such amendments as the Tax Indemnifying Party, the Company
and the JV Company may agree and shall give the Tax Indemnifying Party, the
Company and the JV Company or its agent all such reasonable assistance as may
be required to agree those returns with the appropriate authorities.

 

14.  All sums payable
under this Schedule 9 (Part 1) shall be paid free and clear of all
deductions or withholdings for or on account of Tax whatsoever save only as may
be required by law. If any such deductions or withholdings are required by law
the party making the payment shall be obliged to pay to the other party such
sum as will after such deduction or withholding has been made leave the other
party with the same amount as it would have been entitled to receive in the
absence of any such requirement to make such deduction or withholding, provided
that if either party to this Schedule 9 (Part 1) shall have assigned
the benefit in whole or in part of this Schedule 9 (Part 1) then the
liability of the other party under this Clause 14 shall be limited to that (if
any) which it would have been had no such assignment taken place.

 

64

 

Schedule 9
(Part 2)

 

Payment schedule under
the Nutreco Additional Equity Instrument and Stolt Additional Equity Instrument

 

Definitions

 

“Applicable Tax Rate”
means the corporate income tax rate during the relevant accounting period of
the applicable jurisdiction, which is taken into account in determining the Company’s or any JV Company’s liability to
make or suffer an actual or increased payment of or in respect of Tax, which
would arise if the Contributed Country Relief could not be utilised;

 

“Contributed Country Relief” means
any Relief arising to the Company or any JV Company in each applicable
jurisdiction to the extent that it arises in respect of an Event occurring or
period ending prior to, or on the Closing Date;

 

“IPO” means an
initial public offering of the Company;

 

“Memorandum Account Overview” has the meaning given in Clause
2 of this Schedule 9 (Part 2);

 

“Memorandum
Country Account Shortage” has the meaning given in Clause 3 of this Schedule (Part 2);

 

“Nutreco Additional Equity Instrument” means the debt or
equity instrument that qualifies as equity for Netherlands tax purposes, which
is to be issued by the Company to Nutreco upon Closing in connection with the
contribution of the Nutreco Activities to the Company;

 

“Nutreco Contributed Country Relief “ means the Contributed
Country Relief for the applicable jurisdiction, that is to be contributed by
Nutreco;

 

“Nutreco Memorandum Country Account” means the overview of
the Nutreco Contributed Country Relief in the applicable jurisdiction, as
initially reflected in the Memorandum Account Overview, which may be adjusted
either up or down and/or reduced in accordance with Clause 3 and Clause 4 of
this Schedule 9 (Part 2);

 

“Nutreco
Reduction” has the meaning given in Clause 4.1 of this Schedule 9
(Part 2);

 

“Regular Relief” means any Relief arising to the Company
or any JV Company to the extent that it arises in respect of an Event occurring
or period commencing after the Closing Date;

 

“Reduction Amount” has the
meaning given in Clause 4.1 of this Schedule 9 (Part 2);

 

“Stolt Additional Equity Instrument” means the debt or equity
instrument that qualifies as equity for Netherlands tax purposes, which is to
be issued by the Company to Stolt B.V. upon Closing in connection with the
contribution of the Stolt Activities to the Company;

 

“Stolt
Contributed Country Relief” means the Contributed Country Relief, that is to contributed by Stolt;

 

“Stolt Memorandum Country Account” means the overview of the
Stolt Contributed Country Relief in the applicable jurisdiction as initially
reflected in the Memorandum Account Overview, which may be adjusted either up
or down and/or reduced in accordance with Clause 3 and Clause 4 of this Schedule 9
(Part 2);

 

“Stolt
Reduction” has the meaning given in Clause 4.1 of this Schedule 9
(Part 2);

 

65

 

1.             Introduction

 

The
following set forth the Schedule under which payments will take place
under the Nutreco Additional Equity Instrument and the Stolt Additional Equity
Instrument.

 

2.             Memorandum Country Account
Overview

 

As
per the Closing Date, the Parties will have prepared an overview of the Nutreco
Memorandum Country Accounts and Stolt Memorandum Country Accounts, for
which each will have provided details of the Parties’ Contributed Country
Reliefs in the applicable jurisdiction, including applicable time limits (if any) (the “Memorandum
Account Overview”).

 

3.             Adjustments to Memorandum
Country Accounts

 

The Nutreco Memorandum Country Accounts and Stolt Memorandum Country
Accounts will be adjusted as follows:

 

3.1           if it follows from a Tax Return
that has been agreed upon by both Parties that the amount of the Nutreco
Contributed Country Relief and/or Stolt Contributed Country Relief deviates
from the respective amounts as reflected in the Memorandum Account Overview,
the applicable Memorandum Country Account will be adjusted accordingly.  If, following such adjustment, a Party’s
Memorandum Country Account becomes negative, the Party’s Memorandum Country
Account will be set at zero, and Clause 5.3 will apply to the shortage (a “Memorandum Country Account Shortage”);

 

3.2           Upon the occurrence of an IPO, both
the Nutreco Memorandum Country Accounts and Stolt Memorandum Country Accounts
will be reduced to zero;

 

3.3           Upon the occurrence of a disposal
by a Party of its entire (indirect) shareholding in the Company (disregarding,
for this purpose, the Party’s Additional Equity Instrument) to a third party or
to the other Party, that Party’s Memorandum Country Accounts will be reduced to
zero;

 

3.4           If and to the extent Contributed
Relief ceases to be available, whether through time limitations, disposals,
international reorganisations or any other Event, the following will apply:

 

(i)            If and to the extent the
Contributed Country Relief would not have ceased to be available, but for a
transaction or act carried out by or effected by any member of the JV Group,
where such transaction or act is carried out in circumstances where the JV
Group could not reasonably carry out such transaction or act based on an
economic evaluation of the after-tax projected discounted cash flow of the
contemplated transaction or act (taking into account the loss of the
Contributed Country Relief), the Contributed Country Relief will be deemed to
have been used or set off for purposes of Clause 4 of this Schedule 9
(part 2).

 

(ii)           In circumstances not covered by
subclause (i), the Contributed Country Relief that ceases to be available shall
first reduce the Memorandum Country Account of the Party that has contributed
the relevant Contributed Country Relief, with the understanding that the Party’s
Memorandum Country Account can only be reduced to zero and that the remainder
of the Contributed Country Relief that ceases to be available shall reduce the
Memorandum Country Account of the other Party, but not below zero.

 

4.             Reductions from Memorandum
Country Accounts

 

4.1.          As per the end of each accounting
period it will be
determined to what extent any Contributed Country Relief has been utilised or
set off during this accounting period in

 

66

 

circumstances where, but for such use or set off, the Company or any JV
Company would have had a liability to make or suffer an actual or increased
payment of or in respect of Tax.  Any
such use of set off of Contributed Country Relief, or deemed use or set off
pursuant to Clause 3.4(i) of this Schedule 9 (Part 2),  shall result in a reduction from the
Memorandum Country Accounts in the amount of the Contributed Country Relief that
is so used or deemed to be used (the “Reduction
Amount”).  The Reduction
Amount will be allocated between the Nutreco Memorandum Country Account (a “Nutreco Reduction”) and Stolt Memorandum Country Account (a “Stolt Reduction”) as follows:

 

(i)            75% of the Reduction Amount shall
first reduce the Nutreco Memorandum Country Account for the applicable
jurisdiction, with the understanding that the Nutreco Memorandum Country
Account can only be reduced to zero and that the remainder of this 75% of the
Reduction Amount shall reduce the Stolt Memorandum Country Account, but not
below zero,

 

(ii)           25% of the Reduction Amount shall
first reduce the Stolt Memorandum Country Account for the applicable
jurisdiction, with the understanding that the Stolt Memorandum Country Account
can only be reduced to zero and that the remainder of this 25% of the Reduction
Amount shall reduce the Nutreco Memorandum Country Account, but not below zero.

 

4.2           For the purpose of this Clause 4, any Regular Relief which
arose to the Company or a JV Company in respect of the same or a prior
accounting period shall be deemed to be used in priority to any Contributed
Country Relief.

 

4.3           For the avoidance of doubt, for
purposes of this Clause 4, any Contributed Country Relief will be used during
the relevant accounting period in priority to any Regular Relief arising in any
subsequent accounting periods.

 

5.             Payments under the Additional
Equity Instruments

 

5.1           Upon the occurrence of a Nutreco
Reduction and/or Stolt Reduction, the Company shall pay an amount equal to:

 

(i)            the Nutreco Reduction multiplied by
the Applicable Tax Rate, on the Nutreco Additional Equity Instrument;

 

(ii)           the Stolt Reduction multiplied by
the Applicable Tax Rate, on the Stolt Additional Equity Instrument.

 

5.2           If either Party’s Memorandum
Country Accounts have all been reduced to zero, that Party’s Additional Equity Instrument will be deemed to be cancelled in
full without consideration.

 

5.3           Upon the occurrence of a Memorandum
Country Account Shortage, the payment under the relevant Party’s Additional Equity Instrument pursuant to Clause 5.1 of this Schedule 9
(Part 2) will be rescinded in accordance with the LIFO (Last In, First
Out) principle.

 

6.             Due date for payment

 

The due date for payment under Clause 5 of this Schedule 9 (Part 2)
shall be the latest date for payment of the relevant Taxes that would have been
due, but for the use of the Contributed Country Relief, with the understanding
that, if and to the extent payment on the Party’s Additional Equity Instrument under
Clause 5 is not permitted by law, the due date of payment shall be the first
Business Day on which such payment will be permitted by law.

 

67

 

 

Schedule 9 (Part 3)

 

Nutreco Tax Warranties 

 

Definitions

 

“Effective Time” means 31 August 2004;

 

“VAT” means within the European Union
such Tax as may be levied in accordance with (but subject to derogations from)
the Directive 77/338/EEC and outside the European Union any Tax levied by
reference to added value, sales and/or consumption;

 

1.1      All liabilities, whether actual, deferred,
contingent or disputed, of each Nutreco JV Company for Tax (i) measured by
reference to income, profits or gains earned, accrued or received on or before
the Effective Time or (ii) arising in respect of an Event, transaction or
other circumstance occurring or arising or deemed to occur or arise on or
before (whether wholly or partly) the Effective Time, are fully provided for or
(as appropriate) disclosed in the Nutreco Accounts.  All other warranties relating to specific Tax
matters set out in this Schedule 9 (Part 3) are made without
prejudice to the generality of this paragraph.

 

1.2      Since the Effective Time:

 

1.2.1     no Nutreco JV Company has been
involved in any transaction which has given or may give rise to a liability to
Tax on any Nutreco JV Company (or would have given or might give rise to such a
liability but for the availability of any Relief) other than Tax in respect of
normal trading income or receipts of the Nutreco JV Company concerned arising
from transactions entered into by it in the ordinary course of business;

 

1.2.2     no expense has been paid or accrued
by any Nutreco JV Company which will not be deductible for the purposes of
corporate income tax, either in computing the profits of that Nutreco JV
Company or in computing the corporate income tax or corresponding Tax
chargeable on it;

 

1.2.3     no disposal has taken place or
other event occurred which has or may have the effect of crystallising a
liability to Tax which, if such disposal or event had been planned or predicted
at the Effective Time, should have been reflected in the provision for deferred
Tax contained in the Nutreco Accounts;

 

1.2.4     all VAT, import duty and other
levies and imposts or charges payable upon the importation of goods or services
and all such Taxes payable in respect of any assets (including trading stock)
owned by any Nutreco JV Company have been paid in full; and

 

1.2.5     no event has occurred which has or
may have the effect of prejudicing any Relief taken into account in computing
or eliminating the provision for deferred Tax contained in the Nutreco
Accounts.

 

1.3      Each Nutreco
JV Company has duly, and within any appropriate time limits (including
applicable extensions of filing periods), made all Tax returns, given all notices and supplied all other
information required to be supplied to all relevant Tax Authorities and has
maintained all records required to be maintained for Tax purposes; all such information was and remains
complete and accurate in all material respects and all such Tax returns and
notices were and remain complete and accurate in all material respects

 

68

 

and were
made on the proper basis and do not, and so far as Nutreco is aware are not
likely to, reveal any transactions which may be the subject of any dispute
with, or any enquiry raised by, any Tax Authority.

 

1.4      No Nutreco JV
Company is involved in any current dispute with any Tax Authority. No Nutreco
JV Company has in the last 6 (six) years been the subject of any investigation,
audit or non-routine visit by any Tax Authority.  So far as Nutreco should reasonably be aware in relation to
each Nutreco JV Company there is no planned investigation, audit or visit by
any Tax Authority and there are no facts that might cause such an
investigation, audit or visit to be instituted.

 

1.5      Within the
past 6 (six) years, no Nutreco JV Company nor any director or officer of any
Nutreco JV Company (in his capacity as such) has paid or become liable to pay,
and there are no circumstances by reason of which it or they may become liable
to pay to any authority, any penalty, fine, surcharge or interest in respect of
Tax, including in respect of any failure to make any return, give any notice or
supply any information to any relevant Tax Authority, or any failure to keep or
preserve any records or to pay Tax on the due date for payment and including
circumstances where any such penalty, fine, surcharge or interest in respect of
Tax would have been due but for the reason that (i) it concerned a first
time event or (ii) the relevant Tax Authority waived its right to impose
the penalty, fine, surcharge or interest.

 

1.6      No Nutreco JV
Company is or will become liable to pay, or make reimbursement or indemnity in
respect of, any Tax in consequence of the failure by any other person (other
than any other Nutreco JV Company) to discharge that Tax within any specified
period or otherwise, where such Tax relates to income, profits or gains,
earned, accrued or received, or to any event, transaction or circumstance
occurring or arising or deemed to occur or arise (whether wholly or partly)
prior to the Effective Time.

 

1.7      No Relief has
been claimed by and/or given to any Nutreco JV Company, or taken into account
in determining or eliminating any provision for Tax or deferred Tax in the
Nutreco Accounts, which could or might be effectively withdrawn, postponed,
restricted or otherwise lost as a result of the sale and purchase hereunder or
any other event or circumstance occurring or arising at any time after the
Effective Time.

 

1.8      None of the
Nutreco JV Companies has been a party to any transaction or series of
transactions which is or forms part of a scheme for the avoidance of Tax or
which can reasonably be considered as such.

 

1.9      Each Nutreco
JV Company is and has at all times been resident for Tax purposes in its place
of incorporation and is not and has not at any time been treated as resident in
any other jurisdiction for any Tax purpose (including any double taxation
arrangement).  No Nutreco JV Group
Company is or has been subject to Tax in any jurisdiction other than its place
of incorporation by virtue of having a permanent establishment, a permanent
representative or other place of business or taxable presence in that
jurisdiction.

 

1.10    All
transactions between Nutreco JV Companies, and all transactions between any
Nutreco JV Company and any current or past member of the Nutreco Group, have
been

 

69

 

and are
on fully arm’s length terms.  There are
no circumstances that could cause any Tax Authority to make any adjustment for
Tax purposes, or require any such adjustment to be made, to the terms on which
any such transaction is treated as taking place, and no such adjustment has
been made or attempted in fact.

 

1.11    All duties,
fees and penalties payable in respect of the capital of each Nutreco JV Company
(including any premium over nominal value at which any share was issued), and
all stamp duties or other transaction based Taxes and levies, have been duly
accounted for and paid, and there are no circumstances under which any Relief
obtained against payment of any such amount could be withdrawn.

 

1.12    The Nutreco
Data Rooms contain particulars of any agreement, arrangement or election
between any Nutreco JV Company and any Tax Authority pursuant to which the
relevant Nutreco JV Company is authorised not to comply with what, but for such
agreement or arrangement, would be its statutory obligations.

 

1.13    The signing of
the Agreement will not have any adverse Tax consequences for any of the Nutreco
JV Companies.

 

1.14    No transaction
in respect of which any consent or clearance was required or sought from any
Tax Authority has been entered into or carried out by any Nutreco JV Company,
without such consent or clearance having first been properly obtained and all
information supplied to any Tax Authority or other appropriate authority in
connection with any such consent or clearance fully and accurately disclosed
all facts and circumstances material to the giving of such consent or
clearance.  Any transaction for which
such consent or clearance was obtained has been carried out only in accordance
with the terms of such consent or clearance and the application on which the
consent or clearance was based and at a time when such consent or clearance was
valid and effective.  No facts or
circumstances have arisen since any such consent or clearance was obtained
which would cause the consent or clearance to become invalid or ineffective.

 

1.15    No Tax Authority has operated or
agreed to operate any special arrangement (being an arrangement which is not
directly based on relevant legislation, even if based on any published
practice, including rulings and agreements with the Tax Authorities) or has
agreed on any compromise in relation to any Nutreco JV Company’s affairs.

 

1.16    At no time have any of the Tax
affairs of the Nutreco JV Companies been dealt with on a consolidated basis, or
any other basis which allows a combined filing, profit calculation or payment
of Tax for more than one person.

 

1.17    So far as Nutreco is aware no
information regarding Tax relating to any of the Nutreco JV Companies or in
relation to the business relations of any of the Nutreco JV Companies has been
provided by any Tax Authority to any other authority – whether a Tax Authority
or not –, no request has been made to do so and no such exchange or request has
been announced, and in relation to each Nutreco JV Company there is no planned
exchange of information or request to do so.

 

1.18    All losses, interest and other sums
of an expense nature paid, payable or accruable by

 

70

 

any of the Nutreco
JV Companies and all sums payable or accruable under any obligation incurred by
any Nutreco JV Company prior to the Effective Time and which will continue to
bind any Nutreco JV Company after the Effective Time, have been and will
continue to be deductible for the purposes of corporate income tax, either in computing
the profits of any Nutreco JV Company or in computing the corporate income tax
chargeable on it.

 

1.19    All amounts payable to any Tax
Authority in respect of any employee (including executive directors or members
of the supervisory board, and including any Tax deductible from any amounts
paid to a (deemed) employee, and any national insurance, social fund or similar
contributions required to be made in respect of employees) due and payable by
any Nutreco JV Company up to the Effective Time have been duly paid and each
Nutreco JV Company has made all such deductions and retentions as should have
been made under applicable laws or regulations.

 

1.20    If each Nutreco JV Company disposed of each of its assets (except
trading stock and work-in-progress) for a consideration equal to the book value
of that asset as shown in or adopted for the purposes of the Nutreco Accounts
by way of bargain at arm’s length, no liability to Tax would arise by reference
to any actual or deemed gain.

 

1.21    All claims and elections that have
assumed made when calculating the provision for Tax as disclosed in the Nutreco
Accounts have actually been made or are still capable of being made.

 

71

 

Schedule 9 (Part 4)

 

Stolt Tax Warranties 

 

Definitions

 

“Effective Time” means 31 August 2004;

 

“VAT” means within the European Union
such Tax as may be levied in accordance with (but subject to derogations from)
the Directive 77/338/EEC and outside the European Union any Tax levied by
reference to added value, sales and/or consumption;

 

1.1      All liabilities, whether actual, deferred,
contingent or disputed, of each Stolt JV Company for Tax (i) measured by
reference to income, profits or gains earned, accrued or received on or before
the Effective Time or (ii) arising in respect of an Event, transaction or
other circumstance occurring or arising or deemed to occur or arise on or
before (whether wholly or partly) the Effective Time, are fully provided for or
(as appropriate) disclosed in the Stolt Accounts.  All other warranties relating to specific Tax
matters set out in this Schedule 9 (Part 4) are made without
prejudice to the generality of this paragraph.

 

1.2      Since the
Effective Time:

 

1.2.1     no Stolt JV Company has been
involved in any transaction which has given or may give rise to a liability to
Tax on any Stolt JV Company (or would have given or might give rise to such a
liability but for the availability of any Relief) other than Tax in respect of
normal trading income or receipts of the Stolt JV Company concerned arising
from transactions entered into by it in the ordinary course of business;

 

1.2.2     no expense has been paid or accrued
by any Stolt JV Company which will not be deductible for the purposes of
corporate income tax, either in computing the profits of that Stolt JV Company
or in computing the corporate income tax or corresponding Tax chargeable on it;

 

1.2.3     no disposal has taken place or
other event occurred which has or may have the effect of crystallising a
liability to Tax which, if such disposal or event had been planned or predicted
at the Effective Time, should have been reflected in the provision for deferred
Tax contained in the Stolt Accounts;

 

1.2.4     all VAT, import duty and other
levies and imposts or charges payable upon the importation of goods or services
and all such Taxes payable in respect of any assets (including trading stock)
owned by any Stolt JV Company have been paid in full; and

 

1.2.5     no event has occurred which has or
may have the effect of prejudicing any Relief taken into account in computing
or eliminating the provision for deferred Tax contained in the Stolt Accounts.

 

1.3      Each Stolt JV
Company has duly, and within any appropriate time limits (including applicable
extensions of filing periods), made all Tax returns, given all notices and supplied all other
information required to be supplied to all relevant Tax Authorities and has
maintained all records required to be maintained for Tax purposes; all such
information was and remains complete and accurate in all material respects and
all such Tax returns and notices were and remain complete and accurate in all
material respects and were made on the proper basis and do not, and so far as
Stolt is aware are not

 

72

 

likely to,
reveal any transactions which may be the subject of any dispute with, or any
enquiry raised by, any Tax Authority.

 

1.4      No Stolt JV
Company is involved in any current dispute with any Tax Authority. No Stolt JV
Company has in the last 6 (six) years been the subject of any investigation,
audit or non-routine visit by any Tax Authority.  So far as Stolt should reasonably be aware in
relation to each Stolt JV Company there is no planned investigation, audit or
visit by any Tax Authority and there are no facts that might cause such an
investigation, audit or visit to be instituted.

 

1.5      Within the
past 6 (six) years, no Stolt JV Company nor any director or officer of any
Stolt JV Company (in his capacity as such) has paid or become liable to pay,
and there are no circumstances by reason of which it or they may become liable
to pay to any authority, any penalty, fine, surcharge or interest in respect of
Tax, including in respect of any failure to make any return, give any notice or
supply any information to any relevant Tax Authority, or any failure to keep or
preserve any records or to pay Tax on the due date for payment and including
circumstances where any such penalty, fine, surcharge or interest in respect of
Tax would have been due but for the reason that (i) it concerned a first
time event or (ii) the relevant Tax Authority waived its right to impose
the penalty, fine, surcharge or interest.

 

1.6      No Stolt JV
Company is or will become liable to pay, or make reimbursement or indemnity in
respect of, any Tax in consequence of the failure by any other person (other
than any other Stolt JV Company) to discharge that Tax within any specified
period or otherwise, where such Tax relates to income, profits or gains,
earned, accrued or received, or to any event, transaction or circumstance
occurring or arising or deemed to occur or arise (whether wholly or partly)
prior to the Effective Time.

 

1.7      No Relief has
been claimed by and/or given to any Stolt JV Company, or taken into account in
determining or eliminating any provision for Tax or deferred Tax in the Stolt
Accounts, which could or might be effectively withdrawn, postponed, restricted
or otherwise lost as a result of the sale and purchase hereunder or any other
event or circumstance occurring or arising at any time after the Effective
Time.

 

1.8      None of the
Stolt JV Companies has been a party to any transaction or series of
transactions which is or forms part of a scheme for the avoidance of Tax or
which can reasonably be considered as such.

 

1.9      Each Stolt JV
Company is and has at all times been resident for Tax purposes in its place of
incorporation and is not and has not at any time been treated as resident in
any other jurisdiction for any Tax purpose (including any double taxation
arrangement).  No Stolt JV Group Company
is or has been subject to Tax in any jurisdiction other than its place of
incorporation by virtue of having a permanent establishment, a permanent
representative or other place of business or taxable presence in that
jurisdiction.

 

1.10    All
transactions between Stolt JV Companies, and all transactions between any Stolt
JV Company and any current or past member of the Stolt Group, have been and are
on fully arm’s length terms.  There are
no circumstances that could cause any Tax Authority to

 

73

 

make any adjustment for Tax purposes, or require any such adjustment to
be made, to the terms on which any such transaction is treated as taking place,
and no such adjustment has been made or attempted in fact.

 

1.11    All duties,
fees and penalties payable in respect of the capital of each Stolt JV Company
(including any premium over nominal value at which any share was issued), and
all stamp duties or other transaction based Taxes and levies, have been duly
accounted for and paid, and there are no circumstances under which any Relief
obtained against payment of any such amount could be withdrawn.

 

1.12    The Stolt Data
Room contains particulars of any agreement, arrangement or election
between any Stolt JV Company and any Tax Authority pursuant to which the
relevant Stolt JV Company is authorised not to comply with what, but for such
agreement or arrangement, would be its statutory obligations.

 

1.13    The signing of
the Agreement will not have any adverse Tax consequences for any of the Stolt
JV Companies.

 

1.14    No transaction
in respect of which any consent or clearance was required or sought from any
Tax Authority has been entered into or carried out by any Stolt JV Company,
without such consent or clearance having first been properly obtained and all
information supplied to any Tax Authority or other appropriate authority in
connection with any such consent or clearance fully and accurately disclosed
all facts and circumstances material to the giving of such consent or
clearance.  Any transaction for which
such consent or clearance was obtained has been carried out only in accordance
with the terms of such consent or clearance and the application on which the consent
or clearance was based and at a time when such consent or clearance was valid
and effective.  No facts or circumstances
have arisen since any such consent or clearance was obtained which would cause
the consent or clearance to become invalid or ineffective.

 

1.15    No Tax
Authority has operated or agreed to operate any special arrangement (being an
arrangement which is not directly based on relevant legislation, even if based
on any published practice, including rulings and agreements with the Tax
Authorities) or has agreed on any compromise in relation to any Stolt JV
Company’s affairs.

 

1.16    At no time
have any of the Tax affairs of the Stolt JV Companies been dealt with on a
consolidated basis, or any other basis which allows a combined filing, profit
calculation or payment of Tax for more than one person.

 

1.17    So far as
Stolt is aware no information regarding Tax relating to any of the Stolt JV
Companies or in relation to the business relations of any of the Stolt JV
Companies has been provided by any Tax Authority to any other authority –
whether a Tax Authority or not –, no request has been made to do so and no such
exchange or request has been announced, and in relation to each Stolt JV
Company there is no planned exchange of information or request to do so.

 

1.18    All losses,
interest and other sums of an expense nature paid, payable or accruable by any
of the Stolt JV Companies and all sums payable or accruable under any
obligation

 

74

 

incurred by any Stolt JV Company prior to the Effective Time and which
will continue to bind any Stolt JV Company after the Effective Time, have been
and will continue to be deductible for the purposes of corporate income tax,
either in computing the profits of any Stolt JV Company or in computing the
corporate income tax chargeable on it.

 

1.19    All amounts
payable to any Tax Authority in respect of any employee (including executive
directors or members of the supervisory board, and including any Tax deductible
from any amounts paid to a (deemed) employee, and any national insurance,
social fund or similar contributions required to be made in respect of
employees) due and payable by any Stolt JV Company up to the Effective Time
have been duly paid and each Stolt JV Company has made all such deductions and
retentions as should have been made under applicable laws or regulations.

 

1.20    If each Stolt JV Company disposed of
each of its assets (except trading stock and work-in-progress) for a
consideration equal to the book value of that asset as shown in or adopted for
the purposes of the Stolt Accounts by way of bargain at arm’s length, no
liability to Tax would arise by reference to any actual or deemed gain.

 

1.21    All claims and
elections that have assumed made when calculating the provision for Tax as
disclosed in the Stolt Accounts have actually been made or are still capable of
being made.

 

75

 

Schedule 10                          Nutreco
Warranties and Disclosure

 

Schedule 10
(Part 1)           Nutreco
Warranties

 

(Clause 8.1)

 

Interpretation

 

For the
purposes of the Nutreco’s Warranties:

 

A.    Where a
Nutreco JV Business is referred to, where applicable, reference is also deemed
to be made to the relevant member of the Nutreco Group which is the legal owner
(of the assets) of the relevant Nutreco JV Business.

 

B.    In addition,
the following capitalized words shall have the meaning as defined in Schedule 1
of the Agreement and otherwise shall have the following meanings:

 

“Environment” means any or all of the following media (alone
or in combination): air, water (including water under or within land), soil and
land and any ecological systems and living organisms supported by these media;

 

“Environmental Authority” means any Governmental Authority
having jurisdiction to determine any matter arising under Environmental Law
and/or relating to the Environment;

 

“Environmental Law” means all applicable Law (including HSE
laws) of any relevant jurisdiction in force in the relevant jurisdiction whose
purpose is to protect or prevent pollution of the Environment or to regulate
emissions, discharges, or releases of Hazardous Substances into the
Environment, or to regulate the use, treatment, storage, burial, disposal,
transport or handling of Hazardous Substances;

 

“Environmental Permit” means any licence, permit, consent,
authorisation, certificate, registration and exemption which is issued, granted
or required under Environmental Law which is material to or necessary for the
Nutreco Activities;

 

“Hazardous Substances” means, to the extent regulated by the
applicable Environmental Authority, any wastes, pollutants, contaminants and
any other natural or artificial substance (whether in the form of a solid,
liquid, gas or vapour) which is capable of causing harm or damage to the
Environment or a nuisance to any person;

 

“IP rights” means patents, trade marks, service marks, trade
names, logos, internet domain names, design rights, copyrights (including
rights in computer software) and moral rights, database rights, rights in
confidential information and “know-how” and all other similar proprietary
rights which may subsist in any part of the world, whether registered or not,
and including any and all rights in applications for registration thereof and
all rights or forms of protection having equivalent or similar effect anywhere
in the world;

 

“Properties” means all material real property (including, for
the purpose hereof, any cages) owned, leased or in respect of which a Nutreco
JV Company or Nutreco JV Business has any other interest;

 

“Relevant Period” means the period
commencing 3 (three) years before the Closing Date and ending on the day
preceding the Closing Date; and

 

“Retirement Benefits” means all retirement benefits,
survivors’ benefits and retirement termination benefits of the employees of the
Nutreco Activities, under Nutreco’s retirement benefits plans accrued to the
Closing Date that are payable, in the form of lump sums, periodic payments or
annuities, and will not include post retirement healthcare or other welfare
benefits.

 

76

 

1.     Incorporation, authority,
corporate action

 

1.1      Nutreco and the Nutreco JV Companies are validly
existing, are companies duly incorporated under the law of their jurisdiction
of incorporation and are not dissolved.

 

1.2      Nutreco has the full power and authority to enter
into and perform this Agreement and any other documents to be executed by
Nutreco pursuant to or in connection with this Agreement, which, when executed,
will constitute valid and binding obligations on Nutreco, in accordance with
their respective terms.

 

1.3      Nutreco and each relevant member of the Nutreco
Group have taken or will have taken by Closing all corporate action required by
them to authorise them to perform in accordance with this Agreement and any
other documents to be executed by them pursuant to or in connection with this
Agreement.

 

2.     Corporate information

 

2.1      The
Nutreco Contributed Shares and the Nutreco JV Companies

 

2.1.1     The relevant
member of the Nutreco Group specified in Schedule 2 (Part 1) is the
sole legal and beneficial owner of the relevant Nutreco Contributed Shares.
There are no outstanding depositary receipts with respect to the Nutreco
Contributed Shares.

 

2.1.2     In respect
of each Nutreco JV Company, the Nutreco Contributed Shares specified in respect
of the Nutreco JV Company in Schedule 2 (Part 1) comprise the whole
of the issued share capital of the Nutreco JV Company and have been properly
and validly issued and are each fully paid.

 

2.1.3     No person
has the right, or has claimed to have the right, (whether exercisable now or in
the future and whether contingent or not) to call for the conversion, issue,
registration, sale or transfer, amortisation or repayment of any share
capital or any other security giving rise to a right over, or an interest in,
the capital of any Nutreco JV Company under any option, agreement or other
arrangement (including conversion rights and rights of pre-emption).

 

2.1.4     There are no
Encumbrances on any of the Nutreco Contributed Shares.

 

2.1.5     No person, other
than the holders of Nutreco Contributed Shares as such, has any right to any
distribution from, or calculated on the basis of, the Nutreco JV Companies’
profits or equity. With respect to the Nutreco JV Companies and Nutreco JV
Businesses, no resolution has been made and no action has been taken to
distribute dividends, to repay capital or to make any other distribution of
reserves or capital except as stated in the Nutreco Accounts.

 

2.1.6     No person,
other than the holders of the Nutreco Contributed Shares and the Nutreco JV
Companies’ managing directors and, where applicable, supervisory directors as
such, has any control over the relevant Nutreco JV Company or its business(es).

 

77

 

2.2      Constitutional
documents, corporate registers and minute books

 

2.2.1     The
constitutional documents made available in the Nutreco Data Rooms are true and
accurate copies of the constitutional documents of the Nutreco JV Companies
and, so far as Nutreco is aware, there have not been and are not any breaches
by any Nutreco JV Company of its constitutional documents.

 

2.2.2     The
registers, minute books and records required to be maintained by each Nutreco
JV Company and Nutreco JV Business under the law of the jurisdiction of its
incorporation, (i) are up-to-date, (ii) have been maintained in
accordance with applicable Law and (iii) contain proper records of all
matters required to be dealt with in such books and records, in each case in
all material respects.

 

2.2.3     All such registers
and books are in the possession, or under the control, of the relevant Nutreco
JV Company or relevant  Nutreco JV
Business.

 

2.2.4     All material
filings, publications, registrations and other formalities required by
applicable Law to be delivered or made by the Nutreco JV Companies and Nutreco
JV Business to company registries in each relevant jurisdiction have been duly
delivered or made on a timely basis.

 

3.     Accounts

 

3.1      The Nutreco
Accounts have been prepared in all material respects in accordance with the
Nutreco Accounting Principles, with the exception of inventory values which
have been determined in accordance with the principles set out in the Nutreco
Disclosure Letter.

 

3.2      The Nutreco
Accounts have been prepared on a basis consistent with that adopted in
preparing the accounts of the Nutreco Group for the previous 2 (two) accounting
periods. The Nutreco Accounts have not been affected by any change in
valuation, estimation or reserves, other than changes which have as such been
mentioned and explained in the Nutreco Accounts.

 

3.3      The Nutreco
Accounts give in all material respects an accurate view of the financial
position of the Nutreco Activities for the period ended on 31 August 2004.

 

3.4      In respect
of the Nutreco Activities, no (off-balance sheet or other) financial or other
obligations exist, and no obligations will be incurred directly or indirectly
resulting from any event prior to the Closing, other than obligations mentioned
in the Nutreco Accounts or for which a provision has been made therein, or
which have been incurred in the ordinary course of business after 31 August 2004.

 

4.     Guarantees and financing

 

4.1      Other than
in the ordinary course of business, there is no outstanding guarantee,
indemnity, suretyship or security given:

 

4.1.1     by any
Nutreco JV Company or any Nutreco JV Business; or

 

78

 

4.1.2     for the
benefit of any Nutreco JV Company or any Nutreco JV Business.

 

4.2      The Nutreco
Data Rooms contain all current agreements, securities and instruments pursuant
to which the Nutreco Group has, in respect of the Nutreco Activities, borrowed
or may or must borrow or lend funds from or to third parties and which
represent a (principal) amount of at least EUR 500,000 (five hundred thousand
euro) and/or is only capable of termination by the Nutreco Group upon a notice
period of six months or more.

 

5.     Assets

 

5.1      The
Properties

 

5.1.1     In respect
of each Property owned by a Nutreco JV Company or Nutreco JV Business, the
relevant Nutreco JV Company or Nutreco JV Business is the legal and beneficial
owner of the whole Property and has good and marketable title to the Property.
The Property is registered in the competent real estate register for the
benefit of the relevant Nutreco JV Company or Nutreco JV Business where the
relevant jurisdiction requires the registration of ownership regarding such
Property.

 

5.1.2     So far as
Nutreco is aware, no Property (excluding Property leased by any Nutreco JV
Company or any Nutreco JV Business) is subject to any Encumbrance other than
Permitted Encumbrances.

 

5.1.3     So far as
Nutreco is aware, there is no outstanding written notice or dispute involving
the relevant Nutreco JV Business or Nutreco JV Company and any third party,
including any public authority, as to the ownership, occupation or use of any
Property which will, if implemented or enforced, have a material adverse effect
on the business carried out on, in or from the Properties.

 

5.1.4     There is no
outstanding written notice or dispute as to any contravention of the relevant
planning legislation or regulations in relation to each Property which will, if
implemented or enforced, have a material adverse effect on the business carried
out on, in or from the Properties.

 

5.2      Leases

 

Where any
Property is leased by a Nutreco JV Company or a Nutreco JV Business:

 

5.2.1     there is no
subsisting breach and no non-observance of any covenant, condition or agreement
contained in the lease under which the Nutreco JV Company or Nutreco JV
Business holds its interest in the Property, on the part of the Nutreco JV
Company or Nutreco JV Business, or, so far as Nutreco is aware, of the relevant
landlord, which will have, and Nutreco is not aware of any event or
circumstance that could lead to, a material adverse effect on the business
carried out on, in or from the Property;

 

5.2.2     so far as
Nutreco is aware, there is no right for the landlord to terminate the lease
before the expiry of the contractual term other than by breach of the lease by
the lessee.

 

79

 

5.3      Properties
subject to third party leases and other agreements

 

Where any
Property is the subject of any lease or other agreement relating to its
occupation or use for the benefit of any person other than a Nutreco JV Company
or Nutreco JV Business, Nutreco is not aware of any subsisting breach or
non-observance of any covenant, condition or agreement under such lease or
agreement which would have, and Nutreco is not aware of any event or
circumstance that could lead to, a material adverse effect on the business
carried out on, in or from the Property.

 

5.4      Ownership
of assets

 

Each of those
assets which are used by the Nutreco JV Company and Nutreco JV Business and are
material to the business of the Nutreco Activities, including all assets
specifically mentioned in the Nutreco Accounts, other than the Properties, IP
rights pertaining to the Nutreco Activities and any assets disposed of by any
of the Nutreco JV Companies or Nutreco JV Businesses in the ordinary course of
business:

 

5.4.1     is legally
and beneficially owned by the relevant Nutreco JV Company or the relevant
Nutreco JV Business;

 

5.4.2     is, where
capable of possession, in the possession or under the control of the relevant
Nutreco JV Company or Nutreco JV Business; and

 

5.4.3     is free from
Encumbrances except for Permitted Encumbrances.

 

The Warranty
contained in this Clause 5.4 does not apply to assets which are subject to hire
purchase or lease arrangements where the hire purchase or lease payments do not
exceed EUR 500,000 (five hundred thousand euro) per year.

 

5.5      Plant
and machinery and other fixed assets

 

The material
plant and machinery, vehicles, vessels, crafts, and other equipment owned or
used by the Nutreco JV Company or Nutreco JV Business are in normal working
order having regard to their age and use, have been adequately maintained where
such maintenance is usually required and are not obsolete.

 

5.6      Sufficiency
of assets

 

So far as
Nutreco is aware, the rights and assets owned, leased or otherwise used by the
Nutreco JV Companies and Nutreco JV Businesses comprise all the rights and
assets necessary for the carrying on of the Nutreco Activities substantially in
the manner in, and to the extent to which it is conducted as at Signing.

 

6.     Intellectual Property and
information technology

 

6.1      Ownership,
authorised use

 

6.1.1     So far as
Nutreco is aware, Nutreco’s IP rights material to the Nutreco Activities are
(or where appropriate in the case of pending applications, will upon
registration be) (i) legally owned by, (ii) licensed to, or (iii) used
under the authority of the owner, by the Nutreco JV Companies or the Nutreco JV
Businesses.

 

80

 

6.1.2     So far as
Nutreco is aware, Nutreco’s IP rights material to the Nutreco Activities and
all pending applications therefor are:

 

(i)      not being
infringed or opposed by any person; and

 

(ii)        not
licensed to a third party except under those licences made available in the
Nutreco Data Rooms.

 

6.1.3     So far as
Nutreco is aware, the processes employed and the products manufactured or sold
in the Nutreco Activities do not infringe any IP rights of any third party.

 

6.2      Information
technology

 

In the 12
(twelve) months prior to the Signing Date, there have been no failures or
breakdowns of any information technology, computer hardware or software, or
other computer or communication systems, used or licensed exclusively in
relation to the Nutreco Activities, which have had or will have a material
adverse effect on the Nutreco Activities. Nutreco’s information technology
rights material to the Nutreco Activities are legally owned by, licensed to or
used under the authority of the owner by the Nutreco JV Companies or the
Nutreco JV Businesses.

 

7.     Contracts and other agreements

 

7.1      Contracts

 

No Nutreco JV
Company or Nutreco JV Business is a party to or subject to any contract or
obligation (other than in relation to any Property, lease or contract of
employment) which is material to the Nutreco Activities and which:

 

7.1.1     is not in
the ordinary course of business or involves quantities beyond those normally
contracted for; or

 

7.1.2     is not on an
arm’s length basis.

 

7.2      Joint
ventures and other co-operation arrangements

 

No Nutreco JV
Company or Nutreco JV Business is, or has agreed to become, a member of any
joint venture, consortium, partnership, other association or co-operation or
profit sharing arrangement.

 

7.3      Agreements
with connected parties

 

7.3.1     There are no
existing contracts material to the business of the Nutreco Activities between,
on the one hand, any Nutreco JV Company or Nutreco JV Business and, on the
other hand, any member of the Nutreco Group (excluding the Nutreco JV Companies
and Nutreco JV Businesses) or any shareholder of any member of the Nutreco Group
(excluding the Nutreco JV Companies or Nutreco JV Businesses) other than at arm’s
length and on normal commercial terms in the ordinary course of business.

 

7.3.2     No Nutreco
JV Company or Nutreco JV Business is party to any contract material to the Nutreco
Activities, with any current or former employee, director or officer of any
such Nutreco JV Company or Nutreco JV Business or any person connected (as

 

81

 

defined by
applicable Law in the relevant jurisdiction) with any of such persons, or in
which any such person is interested (whether directly or indirectly), other
than at arm’s length and on normal commercial terms in the ordinary course of
business.

 

7.4      Compliance
with agreements

 

7.4.1     All the contracts
material to the Nutreco Activities to which any of the Nutreco JV Company or
Nutreco JV Business is a party are valid and binding obligations of the Nutreco
JV Company or Nutreco JV Business and, so far as Nutreco is aware, the other
parties thereto and the terms thereof have been complied with in all material
respects by:

 

(i)      the
relevant Nutreco JV Company or Nutreco JV Business; and

 

(ii)     so far as
Nutreco is aware, by any other party to such contracts.

 

7.4.2     No written
notice of termination or of intention to terminate has been received in respect
of any such contracts.

 

7.5      Effect
of Transaction

 

The Transaction and the entry into of this
Agreement and the agreements contemplated thereby will not result in a material
breach of, or give any third party a right to terminate, or result in any
Encumbrance under, any contract, agreement or instrument to which any Nutreco
JV Company or Nutreco JV Business is a party which is material to the Nutreco
Activities.

 

8.     Employees and employee
benefits

 

8.1      Employees
and terms of employment

 

The documents disclosed in the Nutreco Data
Rooms contain details of the salary and other benefits, period of continuous
employment and location of each top 5 employee per country in terms of
remuneration as at close of business on the Business Day immediately preceding
the Signing Date.

 

8.2      Termination
of employment

 

8.2.1     No member of
the Nutreco Group has received any written notice of resignation from any
senior or key employee or top 5 employee per country in terms of remuneration
of the Nutreco Activities.

 

8.2.2     Save as
provided for in the Nutreco Accounts, no liability which remains undischarged
has been incurred by any Nutreco JV Company or Nutreco JV Business for:

 

(i)      breach of
any contract of employment with any employee; or

 

(ii)     breach of
any statutory employment right.

 

8.2.3     Save as
provided for in the Nutreco Accounts, in the last 12 (twelve) months no member
of the Nutreco Group, nor any Nutreco JV Company or Nutreco JV Business, has
made or agreed to make any payment or agreed to provide any benefit to any

 

82

 

employee or
former employee employed by the relevant member of the Nutreco Group, or the
relevant Nutreco JV Company or Nutreco JV Business, or any dependant of such
employee or former employee in connection with the actual or proposed
termination or suspension of employment of any such employee or former
employee.

 

8.3      Industrial
disputes

 

No Nutreco JV
Company or Nutreco JV Business is involved in any strike or industrial or trade
dispute or any dispute or negotiation regarding a claim of material importance
with any trade union or other body representing employees or former employees
of any Nutreco JV Company or Nutreco JV Business.

 

8.4      Bonus
and other profit-related schemes

 

The documents
disclosed in the Nutreco Data Rooms contain details of the rules and other
documentation relating to all share incentive, share option, profit sharing,
(retention, transaction or other) bonus and other incentive arrangements in
respect of any senior or key employee or top 5 employee of the Nutreco
Activities.

 

8.5      Retirement
Benefit arrangements

 

The documents
disclosed in the Nutreco Data Rooms contain details of all Nutreco’s
arrangements and plans regarding Retirement Benefits, except for arrangements
to which any of the Nutreco JV Company or Nutreco JV Business contribute in
compliance with any law or statutory regulation.

 

9.     Legal compliance

 

9.1      Licences
and consents

 

All licences,
permits, rights, consents, authorisations, certificates and registrations
material to the business of the Nutreco Activities have been obtained, are in
force and, so far as Nutreco is aware, are being
complied with in all material respects. Nutreco is not aware of any reason why
any of them will be suspended or revoked.

 

9.2      Compliance
with laws

 

9.2.1     So far as
Nutreco is aware, each Nutreco JV Company or Nutreco JV Business is conducting
the business of the Nutreco Activities in material compliance with applicable
Law in each country in which the business of the Nutreco Activities is carried
on, other than Environmental Laws and anti-trust or similar legislation, in
respect of which Paragraphs 10 and 11 apply, respectively.

 

9.2.2     So far as
Nutreco is aware, there is no investigation, disciplinary proceeding or enquiry
by, or order, decree, decision or judgement of, any court, tribunal,
arbitrator, governmental agency or regulatory body outstanding against any
Nutreco JV Company or Nutreco JV Business or any person for whose acts or defaults
it may be vicariously liable which will have a material adverse effect upon the
Nutreco Activities.

 

9.2.3     No Nutreco
JV Company or Nutreco JV Business has received any written notice

 

83

 

during the past
12 (twelve) months from any court, tribunal, arbitrator, governmental agency or
regulatory body with respect to a violation and/or failure to comply with any
applicable Law or requiring it to take or omit any action which in any case
would have a material adverse effect on the Nutreco Activities.

 

10.  Environment

 

10.1    So far as
Nutreco is aware, each Nutreco JV Company or Nutreco JV Business is conducting
and during the Relevant Period has conducted, the business of the Nutreco
Activities in material compliance with Environmental Law.

 

10.2    All
Environmental Permits have been obtained, are in force and, so far as Nutreco
is aware, have been complied with in all material respects during the Relevant
Period.

 

10.3    Each Nutreco
JV Company or Nutreco JV Business has set up and implemented an adequate
monitoring system to assess and determine conformity and compliance of its live
stock and processed fish with Environmental Law.

 

10.4    No Nutreco JV
Company or Nutreco JV Business has received any written notice during the
Relevant Period of any civil, criminal, regulatory or administrative action,
claim, investigation or other proceeding or suit relating to a material
contravention of Environmental Law or Environmental Permits.

 

10.5    No Nutreco JV
Company or Nutreco JV Business has received written notice during the Relevant
Period (i) that an Environmental Authority is intending to revoke or
suspend any Environmental Permits as a result of a contravention of
Environmental Law or Environmental Permits or (ii) that as a result of a
contravention of Environmental Law or Environmental Permits, a material
amendment to any Environmental Permit is required to enable the continued
operation of the business of the Nutreco Activities.

 

10.6    To comply
with the conditions, restrictions and rules pursuant to Environmental Law
or Environmental Permits, the Nutreco JV Companies and Nutreco JV Businesses
are not required to incur costs in excess of in aggregate EUR 500,000 (five
hundred thousand euro).

 

10.7    So far as
Nutreco is aware, the soil and groundwater of the Properties or under the
Properties owned and/or in use or formerly owned, and/or in use or used in
relation to the Nutreco Activities do not contain any contamination which is
likely to cause the Nutreco JV Companies and Nutreco JV Businesses to have any
material liability.

 

10.8    So far as
Nutreco is aware, the Nutreco JV Companies and Nutreco JV Businesses have never
disposed of any waste during the Relevant Period in such a way or to such an
extent as to cause the Nutreco JV Companies and Nutreco JV Businesses to have
any material liability.

 

84

 

11.  Anti-competitive agreements
and practices

 

11.1    No Nutreco JV
Company or Nutreco JV Business is a party to any agreement which is material
and which is the subject of written notice received by any member of the
Nutreco Group from any relevant regulatory authority that it (i) is
unenforceable or void or (ii) renders the Nutreco JV Company or Nutreco JV
Business party thereto liable to civil, criminal or administrative proceedings,
in either case by virtue of any anti-trust or similar legislation in any
jurisdiction in which any Nutreco JV Company or Nutreco JV Business carries on
business.

 

11.2    So far as
Nutreco is aware, no Nutreco JV Company or Nutreco JV Business is a party to
any agreement, practice or arrangement which in whole or in part contravenes (i) Articles
81(1) or 82 of the Treaty of Rome or (ii) any
other anti-trust, anti-monopoly or anti-cartel legislation or regulations or
any other similar applicable statute, order or regulation, including the
Netherlands Competitive Trading Act.

 

12.  Litigation

 

12.1    No Nutreco JV
Company or Nutreco JV Business is involved whether as claimant or defendant or
other party in any claim, proceeding, litigation, prosecution, investigation,
enquiry or arbitration (other than as claimant in the collection of debts
arising in the ordinary course of its business) which is material to the
Nutreco Activities.

 

12.2    There is no
order, decree, judgment or agreement of or with any court or any governmental
authority or agency outstanding against and notified in writing to any of the
Nutreco JV Companies or Nutreco JV Businesses or which may, individually or
collectively, have a material adverse effect upon the Nutreco Activities.

 

12.3    So far as
Nutreco is aware, no such claim, proceeding, litigation, prosecution,
investigation, enquiry or arbitration of material importance to the business of
the Nutreco Activities is threatened against any Nutreco JV Company or Nutreco
JV Business.

 

13.  Insurance

 

13.1    The
insurances of the Nutreco JV Companies and Nutreco JV Businesses material to
the business of the Nutreco Activities, including insurances relating to the
bio-mass and other assets, have been disclosed in the Nutreco Data Rooms and
give adequate cover against fire, product liability and other risks which are
normally insured against by companies carrying on similar businesses or owning
assets of a similar nature.

 

13.2    In respect of
the insurances referred to in Paragraph 13.1, all premiums have been duly paid
to date and no relevant member of the Nutreco Group has received any
notification that such insurances are not valid or enforceable, and Nutreco is
not aware of any event or circumstance that could lead to such insurances to
become invalid or unenforceable.

 

13.3    Details of
all outstanding insurance claims in excess of EUR 100,000 (one hundred thousand
euro) and of all insurance claims in excess of EUR 100,000 (one hundred
thousand euro) made during the past 2 (two) years preceding the Signing Date
have been disclosed in the Nutreco Data Rooms.

 

85

 

14.  Products

 

During the 12
(twelve) month period prior to the Signing Date, no individual claims of more
than EUR 100,000 (one hundred thousand euro) and in aggregate not more than EUR
1,000,000 (one million euro) have been made against any Nutreco JV Company or
Nutreco JV Business in respect of any products which have been produced or sold
by any Nutreco JV Company or Nutreco JV Business.

 

15.  Disclosure of information

 

The following
information has been collated by Nutreco in good faith and Nutreco has not
knowingly included any matter which is untrue or knowingly omitted any matter
the omission of which would make the contents untrue or inaccurate in any
material respects:

 

15.1    all disclosures made pursuant to Paragraph 2 of
the Nutreco Disclosure Letter;

 

15.2    all information made available in the Nutreco Data
Rooms and in the answers given to questions raised by Stolt during its due
diligence review; and

 

15.3    all written presentations provided during the
management presentations and included in the binder “Marine Harvest Overview of
Operations”.

 

As far as
Nutreco is aware, Nutreco has provided Stolt with all information concerning
the Nutreco Activities which may be material to the Nutreco Activities and
relevant to Stolt in respect of the JV Group.

 

16.  Insolvency

 

16.1    No member of the Nutreco Group is insolvent under
the laws of its jurisdiction of incorporation or unable to pay its debts as
they fall due.

 

16.2    There are no proceedings in relation to any
compromise or arrangement with creditors or any winding up, bankruptcy or other
insolvency proceedings concerning any member of the Nutreco Group and, so far
as Nutreco is aware, no events have occurred which, under applicable Law, would
justify such proceedings.

 

16.3    So far as Nutreco is aware, no steps have been
taken to enforce any security over any assets of any Nutreco JV Company or Nutreco
JV Business and no event has occurred to give the right to enforce such
security.

 

17.  Disentanglement

 

The
disentanglement of the Nutreco JV Companies and Nutreco JV Businesses will have
been executed in accordance with the Nutreco Contribution Plan, in compliance
with applicable Law in each country in which the Nutreco JV Companies and
Nutreco JV Businesses is conducting business of the Nutreco Activities, and
with due observance of the rights of creditors and other third parties.

 

86

 

18.  The Company

 

18.1    The Company is validly existing, is duly
incorporated under Dutch law and is not dissolved.

 

18.2    The Company has the full power and authority to
enter into and perform the provisions of the Agreement agreed to by it and any
other documents to be executed by it pursuant to or in connection with this
Agreement, which, when executed, will constitute valid and binding obligations
on the Company, in accordance with their respective terms.

 

18.3    The Company has taken or will have taken by
Closing all corporate action required by it to authorise it to perform in
accordance with this Agreement and any other documents to be executed by it
pursuant to or in connection with this Agreement.

 

18.4    The Nutreco Initial Shares comprise the whole of
the issued share capital of the Company. There are no outstanding depositary
receipts with respect to the share capital of the Company.

 

18.5    No person has the right, or has claimed to have
the right, (whether exercisable now or in the future and whether contingent or
not) to call for the conversion, issue, registration, sale or transfer,
amortisation or repayment of any share capital or any other security giving
rise to a right over, or an interest in, the capital of the Company under any
option, agreement or other arrangement (including conversion rights and rights
of pre-emption).

 

18.6    No person, other than Nutreco in its capacity as
sole shareholder of the Company, has any right to any distribution from, or
calculated on the basis of, the Company’s profits or equity. No resolution has
been made and no action has been taken to distribute dividends, to repay
capital, or to make any other distribution of reserves or capital.

 

18.7    No person, other than Nutreco in its capacity as
sole shareholder and managing director of the Company, has any control over the
Company.

 

18.8    As of the Signing Date, the Company has not been
in trade or business, has no assets other than its share capital paid up in
cash, has no employees and has never had an employee and has no liabilities or
obligations other than in relation to its formation and existence as a legal
entity.

 

18.9    The Company is not insolvent under Dutch law nor
unable to pay its debts as they fall due. There are no proceedings in relation
to any compromise or arrangement with creditors or any winding up, bankruptcy
or other insolvency proceedings concerning the Company and no events have
occurred which, under applicable Law, would justify such proceedings.

 

87

 

 

Schedule 11                          Stolt Warranties and Disclosure

 

Schedule 11
(Part 1)           Stolt Warranties

 

(Clause 8.2)

 

Interpretation

 

For the
purposes of the Stolt’s Warranties:

A.    Where a Stolt JV Business is
referred to, where applicable, reference is also deemed to be made to the
relevant member of the Stolt Group which is the legal owner (of the assets) of
the relevant Stolt JV Business.

 

B.    In addition, the following
capitalized words shall have the meaning as defined in Schedule 1 of the
Agreement and otherwise shall have the following meanings:

 

“Environment”
means any or all of the following media (alone or in combination): air, water
(including water under or within land), soil and land and any ecological
systems and living organisms supported by these media;

 

“Environmental Authority”
means any Governmental Authority having jurisdiction to determine any matter
arising under Environmental Law and/or relating to the Environment;

 

“Environmental Law”
means all applicable Law (including HSE Laws) of any relevant jurisdiction in
force in the relevant jurisdiction whose purpose is to protect or prevent
pollution of the Environment or to regulate emissions, discharges, or releases
of Hazardous Substances into the Environment, or to regulate the use,
treatment, storage, burial, disposal, transport or handling of Hazardous
Substances;

 

“Environmental Permit”
means any licence, permit, consent, authorisation, certificate, registration
and exemption which is issued, granted or required under Environmental Law
which is material to or necessary for the Stolt Activities;

 

“Hazardous Substances”
means, to the extent regulated by the applicable Environmental Authority, any
wastes, pollutants, contaminants and any other natural or artificial substance
(whether in the form of a solid, liquid, gas or vapour) which is capable of
causing harm or damage to the Environment or a nuisance to any person;

 

“IP rights”
means patents, trade marks, service marks, trade names, logos, internet domain
names, design rights, copyrights (including rights in computer software) and
moral rights, database rights, rights in confidential information and
“know-how” and all other similar proprietary rights which may subsist in any
part of the world, whether registered or not, and including any and all rights
in applications for registration thereof and all rights or forms of protection
having equivalent or similar effect anywhere in the world;

 

“Properties”
means all material real property (including, for the purpose hereof, any cages)
owned, leased or in respect of which a Stolt JV Company or Stolt JV Business
has any other interest;

 

“Relevant Period” means the period commencing 3 (three) years before the
Closing Date and ending on the day preceding the Closing Date; and

 

“Retirement Benefits”
means all retirement benefits, survivors’ benefits and retirement termination
benefits of the employees of the Stolt Activities, under Stolt’s retirement
benefits plans accrued to the Closing Date that are payable, in the form of
lump sums, periodic payments or annuities, and will not include post retirement
healthcare or other welfare benefits.

 

88

 

1.     Incorporation, authority,
corporate action

 

1.1      Stolt and
the Stolt JV Companies are validly existing, are companies duly incorporated
under the law of their jurisdiction of incorporation and are not dissolved.

 

1.2      Stolt has
the full power and authority to enter into and perform this Agreement and any
other documents to be executed by Stolt pursuant to or in connection with this
Agreement, which, when executed, will constitute valid and binding obligations
on Stolt, in accordance with their respective terms.

 

1.3      Stolt and
each relevant member of the Stolt Group have taken or will have taken by
Closing all corporate action required by them to authorise them to perform in
accordance with this Agreement and any other documents to be executed by them
pursuant to or in connection with this Agreement.

 

2.     Corporate information

 

2.1      The
Stolt Contributed Shares and the Stolt JV Companies

 

2.1.1     The relevant
member of the Stolt Group specified in Schedule 2 (Part 1) is the
sole legal and beneficial owner of the relevant Stolt Contributed Shares. There
are no outstanding depositary receipts with respect to the Stolt Contributed
Shares.

 

2.1.2     In respect
of each Stolt JV Company, the Stolt Contributed Shares specified in respect of
the Stolt JV Company in Schedule 2 (Part 1) comprise the whole of the
issued share capital of the Stolt JV Company and have been properly and validly
issued and are each fully paid.

 

2.1.3     No person
has the right, or has claimed to have the right, (whether exercisable now or in
the future and whether contingent or not) to call for the conversion, issue,
registration, sale or transfer, amortisation or repayment of any share
capital or any other security giving rise to a right over, or an interest in,
the capital of any Stolt JV Company under any option, agreement or other
arrangement (including conversion rights and rights of pre-emption).

 

2.1.4     There are no
Encumbrances on any of the Stolt Contributed Shares.

 

2.1.5     No person,
other than the holders of Stolt Contributed Shares as such, has any right to
any distribution from, or calculated on the basis of, the Stolt JV Companies’
profits or equity. With respect to the Stolt JV Companies and Stolt JV
Businesses, no resolution has been made and no action has been taken to
distribute dividends, to repay capital or to make any other distribution of
reserves or capital except as stated in the Stolt Accounts.

 

2.1.6     No person,
other than the holders of the Stolt Contributed Shares and the Stolt JV
Companies’ managing directors and, where applicable, supervisory directors as
such, has any control over the relevant Stolt JV Company or its business(es).

 

2.2      Constitutional
documents, corporate registers and minute books

 

89

 

2.2.1     The
constitutional documents made available in the Stolt Data Rooms are true and
accurate copies of the constitutional documents of the Stolt JV Companies and,
so far as Stolt is aware, there have not been and are not any breaches by any
Stolt JV Company of its constitutional documents.

 

2.2.2     The
registers, minute books and records required to be maintained by each Stolt JV
Company and Stolt JV Business under the law of the jurisdiction of its
incorporation, (i) are up-to-date, (ii) have been maintained in
accordance with applicable Law and (iii) contain proper records of all
matters required to be dealt with in such books and records, in each case in
all material respects.

 

2.2.3     All such
registers and books are in the possession, or under the control, of the
relevant Stolt JV Company or relevant 
Stolt JV Business.

 

2.2.4     All material
filings, publications, registrations and other formalities required by
applicable Law to be delivered or made by the Stolt JV Companies and Stolt JV
Business to company registries in each relevant jurisdiction have been duly
delivered or made on a timely basis.

 

3.     Accounts

 

3.1      The Stolt
Accounts have been prepared in all material respects in accordance with the
Stolt Accounting Principles.

 

3.2      The Stolt
Accounts have been prepared on a basis consistent with that adopted in
preparing the accounts of the Stolt Group for the previous 2 (two) accounting
periods. The Stolt Accounts have not been affected by any change in valuation,
estimation or reserves, other than changes which have as such been mentioned
and explained in the Stolt Accounts.

 

3.3      The Stolt
Accounts give in all material respects an accurate view of the financial
position of the Stolt Activities for the period ended on 31 August 2004.

 

3.4      In respect
of the Stolt Activities, no (off-balance sheet or other) financial or other
obligations exist, and no obligations will be incurred directly or indirectly
resulting from any event prior to the Closing, other than obligations mentioned
in the Stolt Accounts or for which a provision has been made therein, or which
have been incurred in the ordinary course of business after 31 August 2004.

 

4.     Guarantees and financing

 

4.1      Other than
in the ordinary course of business, there is no outstanding guarantee,
indemnity, suretyship or security given:

 

4.1.1     by any Stolt
JV Company or any Stolt JV Business; or

 

4.1.2     for the
benefit of any Stolt JV Company or any Stolt JV Business.

 

90

 

4.2      The Stolt
Data Rooms contain all current agreements, securities and instruments pursuant
to which the Stolt Group has, in respect of the Stolt Activities, borrowed or
may or must borrow or lend funds from or to third parties and which represent a
(principal) amount of at least EUR 500,000 (five hundred thousand euro) and/or
is only capable of termination by the Stolt Group upon a notice period of six
months or more.

 

5.     Assets

 

5.1      The
Properties

 

5.1.1     In respect
of each Property owned by a Stolt JV Company or Stolt JV Business, the relevant
Stolt JV Company or Stolt JV Business is the legal and beneficial owner of the
whole Property and has good and marketable title to the Property. The Property
is registered in the competent real estate register for the benefit of the
relevant Stolt JV Company or Stolt JV Business where the relevant jurisdiction
requires the registration of ownership regarding such Property.

 

5.1.2     So far as
Stolt is aware, no Property (excluding Property leased by any Stolt JV Company
or any Stolt JV Business) is subject to any Encumbrance other than Permitted
Encumbrances.

 

5.1.3     So far as
Stolt is aware, there is no outstanding written notice or dispute involving the
relevant Stolt JV Business or Stolt JV Company and any third party, including
any public authority, as to the ownership, occupation or use of any Property
which will, if implemented or enforced, have a material adverse effect on the
business carried out on, in or from the Properties.

 

5.1.4     There is no
outstanding written notice or dispute as to any contravention of the relevant
planning legislation or regulations in relation to each Property which will, if
implemented or enforced, have a material adverse effect on the business carried
out on, in or from the Properties.

 

5.2      Leases

 

Where any Property is leased by a Stolt JV Company or a Stolt JV
Business:

 

5.2.1     there is no
subsisting breach and no non-observance of any covenant, condition or agreement
contained in the lease under which the Stolt JV Company or Stolt JV Business
holds its interest in the Property, on the part of the Stolt JV Company or
Stolt JV Business, or, so far as Stolt is aware, of the relevant landlord,
which will have, and Stolt is not aware of any event or circumstance that could
lead to, a material adverse effect on the business carried out on, in or from
the Property;

 

5.2.2     so far as
Stolt is aware, there is no right for the landlord to terminate the lease
before the expiry of the contractual term other than by breach of the lease by
the lessee.

 

5.3      Properties
subject to third party leases and other agreements

 

91

 

Where any Property is the subject of any
lease or other agreement relating to its occupation or use for the benefit of
any person other than a Stolt JV Company or Stolt JV Business, Stolt is not
aware of any subsisting breach or non-observance of any covenant, condition or
agreement under such lease or agreement which would have, and Stolt is not
aware of any event or circumstance that could lead to, a material adverse
effect on the business carried out on, in or from the Property.

 

5.4      Ownership
of assets

 

Each of those assets which are used by the
Stolt JV Company and Stolt JV Business and are material to the business of the
Stolt Activities, including all assets specifically mentioned in the Stolt
Accounts, other than the Properties, IP rights pertaining to the Stolt
Activities and any assets disposed of by any of the Stolt JV Companies or Stolt
JV Businesses in the ordinary course of business:

 

5.4.1     is legally
and beneficially owned by the relevant Stolt JV Company or the relevant Stolt
JV Business;

 

5.4.2     is, where
capable of possession, in the possession or under the control of the relevant
Stolt JV Company or Stolt JV Business; and

 

5.4.3     is free from
Encumbrances except for Permitted Encumbrances.

 

The Warranty
contained in this Clause 5.4 does not apply to assets which are subject to hire
purchase or lease arrangements where the hire purchase or lease payments do not
exceed EUR 500,000 (five hundred thousand euro) per year.

 

5.5      Plant
and machinery and other fixed assets

 

The material plant and machinery, vehicles,
vessels, crafts, and other equipment owned or used by the Stolt JV Company or
Stolt JV Business are in normal working order having regard to their age and
use, have been adequately maintained where such maintenance is usually required
and are not obsolete.

 

5.6      Sufficiency
of assets

 

So far as Stolt is aware, the rights and
assets owned, leased or otherwise used by the Stolt JV Companies and Stolt JV
Businesses comprise all the rights and assets necessary for the carrying on of
the Stolt Activities substantially in the manner in, and to the extent to which
it is conducted as at Signing.

 

6.     Intellectual Property and
information technology

 

6.1      Ownership,
authorised use

 

6.1.1     So far as
Stolt is aware, Stolt’s IP rights material to the Stolt Activities are (or
where appropriate in the case of pending applications, will upon registration
be) (i) legally owned by, (ii) licensed to, or (iii) used under
the authority of the owner, by the Stolt JV Companies or the Stolt JV
Businesses.

 

92

 

6.1.2     So far as
Stolt is aware, Stolt’s IP rights material to the Stolt Activities and all
pending applications therefor are:

 

(i)      not being
infringed or opposed by any person; and

 

(ii)     not licensed
to a third party except under those licences made available in the Stolt Data
Rooms.

 

6.1.3     So far as
Stolt is aware, the processes employed and the products manufactured or sold in
the Stolt Activities do not infringe any IP rights of any third party.

 

6.2      Information
technology

 

In the 12 (twelve) months prior to the
Signing Date, there have been no failures or breakdowns of any information
technology, computer hardware or software, or other computer or communication
systems, used or licensed exclusively in relation to the Stolt Activities,
which have had or will have a material adverse effect on the Stolt Activities.
Stolt’s information technology rights material to the Stolt Activities are
legally owned by, licensed to or used under the authority of the owner by the
Stolt JV Companies or the Stolt JV Businesses.

 

7.     Contracts and other
agreements

 

7.1      Contracts

 

No Stolt JV Company or Stolt JV Business is
a party to or subject to any contract or obligation (other than in relation to
any Property, lease or contract of employment) which is material to the Stolt
Activities and which:

 

7.1.1     is not in
the ordinary course of business or involves quantities beyond those normally
contracted for; or

 

7.1.2     is not on an
arm’s length basis.

 

7.2      Joint
ventures and other co-operation arrangements

 

No Stolt JV Company or Stolt JV Business
is, or has agreed to become, a member of any joint venture, consortium,
partnership, other association or co-operation or profit sharing arrangement.

 

7.3      Agreements
with connected parties

 

7.3.1     There are no
existing contracts material to the business of the Stolt Activities between, on
the one hand, any Stolt JV Company or Stolt JV Business and, on the other hand,
any member of the Stolt Group (excluding the Stolt JV Companies and Stolt JV
Businesses) or any shareholder of any member of the Stolt Group (excluding the
Stolt JV Companies or Stolt JV Businesses) other than at arm’s length and on
normal commercial terms in the ordinary course of business.

 

7.3.2     No Stolt JV
Company or Stolt JV Business is party to any contract material to the Stolt
Activities, with any current or former employee, director or officer of any
such Stolt JV Company or Stolt JV Business or any person connected (as defined
by applicable

 

93

 

Law in the
relevant jurisdiction) with any of such persons, or in which any such person is
interested (whether directly or indirectly), other than at arm’s length and on
normal commercial terms in the ordinary course of business.

 

7.4      Compliance
with agreements

 

7.4.1     All the
contracts material to the Stolt Activities to which any of the Stolt JV Company
or Stolt JV Business is a party are valid and binding obligations of the Stolt
JV Company or Stolt JV Business and, so far as Stolt is aware, the other
parties thereto and the terms thereof have been complied with in all material
respects by:

 

(i)      the
relevant Stolt JV Company or Stolt JV Business; and

 

(ii)     so far as
Stolt is aware, by any other party to such contracts.

 

7.4.2     No written
notice of termination or of intention to terminate has been received in respect
of any such contracts.

 

7.5      Effect
of Transaction

 

The Transaction and the entry into of this
Agreement and the agreements contemplated thereby will not result in a material
breach of, or give any third party a right to terminate, or result in any
Encumbrance under, any contract, agreement or instrument to which any Stolt JV
Company or Stolt JV Business is a party which is material to the Stolt
Activities.

 

8.     Employees and employee
benefits

 

8.1      Employees
and terms of employment

 

The documents disclosed
in the Stolt Data Rooms contain details of the formal employer, salary and
other benefits, period of continuous employment and location of each top 5
employee per country in terms of remuneration as at close of business on the
Business Day immediately preceding the Signing Date.

 

8.2      Termination
of employment

 

8.2.1     No member of
the Stolt Group has received any written notice of resignation from any senior
or key employee or top 5 employee per country in terms of remuneration of the
Stolt Activities.

 

8.2.2     Save as
provided for in the Stolt Accounts, no liability which remains undischarged has
been incurred by any Stolt JV Company or Stolt JV Business for:

 

(i)      breach of
any contract of employment with any employee; or

 

(ii)     breach of
any statutory employment right.

 

8.2.3     Save as
provided for in the Stolt Accounts, in the last 12 (twelve) months no member of
the Stolt Group, nor any Stolt JV Company or Stolt JV Business, has made or
agreed to make any payment or agreed to provide any benefit to any employee or
former employee employed by the relevant member of the Stolt Group, or the
relevant Stolt JV Company or Stolt JV Business, or any dependant of such
employee or former

 

94

 

employee in
connection with the actual or proposed termination or suspension of employment
of any such employee or former employee.

 

8.3      Industrial
disputes

 

No Stolt JV
Company or Stolt JV Business is involved in any strike or industrial or trade
dispute or any dispute or negotiation regarding a claim of material importance
with any trade union or other body representing employees or former employees
of any Stolt JV Company or Stolt JV Business.

 

8.4      Bonus
and other profit-related schemes

 

The documents
disclosed in the Stolt Data Rooms contain details of the rules and other
documentation relating to all share incentive, share option, profit sharing,
(retention, transaction or other) bonus and other incentive arrangements in
respect of any senior or key employee or top 5 employee of the Stolt
Activities.

 

8.5      Retirement
Benefit arrangements

 

The documents
disclosed in the Stolt Data Rooms contain details of all Stolt’s arrangements
and plans regarding Retirement Benefits, except for arrangements to which any
of the Stolt JV Company or Stolt JV Business contribute in compliance with any
law or statutory regulation.

 

9.     Legal compliance

 

9.1      Licences
and consents

 

All licences, permits, rights, consents,
authorisations, certificates and registrations material to the business of the
Stolt Activities have been obtained, are in force and, so
far as Stolt is aware, are being complied with in all material respects. Stolt
is not aware of any reason why any of them will be suspended or revoked.

 

9.2      Compliance
with laws

 

9.2.1     So far as
Stolt is aware, each Stolt JV Company or Stolt JV Business is conducting the
business of the Stolt Activities in material compliance with applicable Law in
each country in which the business of the Stolt Activities is carried on, other
than Environmental Laws and anti-trust or similar legislation, in respect of
which Paragraphs 10 and 11 apply, respectively.

 

9.2.2     So far as
Stolt is aware, there is no investigation, disciplinary proceeding or enquiry
by, or order, decree, decision or judgement of, any court, tribunal,
arbitrator, governmental agency or regulatory body outstanding against any
Stolt JV Company or Stolt JV Business or any person for whose acts or defaults
it may be vicariously liable which will have a material adverse effect upon the
Stolt Activities.

 

9.2.3     No Stolt JV
Company or Stolt JV Business has received any written notice during the past 12
(twelve) months from any court, tribunal, arbitrator, governmental agency or
regulatory body with respect to a violation and/or failure to comply with any
applicable Law or requiring it to take or omit any action which in any case
would have a material

 

95

 

adverse effect
on the Stolt Activities.

 

10.  Environment

 

10.1    So far as
Stolt is aware, each Stolt JV Company or Stolt JV Business is conducting and
during the Relevant Period has conducted, the business of the Stolt Activities
in material compliance with Environmental Law.

 

10.2    All
Environmental Permits have been obtained, are in force and, so far as Stolt is
aware, have been complied with in all material respects during the Relevant
Period.

 

10.3    Each Stolt JV
Company or Stolt JV Business has set up and implemented an adequate monitoring
system to assess and determine conformity and compliance of its live stock and
processed fish with Environmental Law.

 

10.4    No Stolt JV
Company or Stolt JV Business has received any written notice during the
Relevant Period of any civil, criminal, regulatory or administrative action,
claim, investigation or other proceeding or suit relating to a material
contravention of Environmental Law or Environmental Permits.

 

10.5    No Stolt JV
Company or Stolt JV Business has received written notice during the Relevant
Period (i) that an Environmental Authority is intending to revoke or
suspend any Environmental Permits as a result of a contravention of
Environmental Law or Environmental Permits or (ii) that as a result of a
contravention of Environmental Law or Environmental Permits, a material
amendment to any Environmental Permit is required to enable the continued
operation of the business of the Stolt Activities.

 

10.6    To comply
with the conditions, restrictions and rules pursuant to Environmental Law
or Environmental Permits, the Stolt JV Companies and Stolt JV Businesses are
not required to incur costs in excess of in aggregate EUR 500,000 (five hundred
thousand euro).

 

10.7    So far as
Stolt is aware, the soil and groundwater of the Properties or under the
Properties owned and/or in use or formerly owned, and/or in use or used in relation
to the Stolt Activities do not contain any contamination which is likely to
cause the Stolt JV Companies and Stolt JV Businesses any material liability.

 

10.8    So far as
Stolt is aware, the Stolt JV Companies and Stolt JV Businesses have never disposed
of any waste during the Relevant Period in such a way or to such an extent as
to cause the Stolt JV Companies and Stolt JV Businesses to have any material
liability.

 

11.  Anti-competitive agreements
and practices

 

11.1    No Stolt JV
Company or Stolt JV Business is a party to any agreement which is material and
which is the subject of written notice received by any member of the Stolt
Group from any relevant regulatory authority that it (i) is unenforceable
or void or (ii) renders the Stolt JV Company or Stolt JV Business party
thereto liable to civil, criminal or administrative

 

96

 

proceedings,
in either case by virtue of any anti-trust or similar legislation in any
jurisdiction in which any Stolt JV Company or Stolt JV Business carries on
business.

 

11.2    So far as
Stolt is aware, no Stolt JV Company or Stolt JV Business is a party to any
agreement, practice or arrangement which in whole or in part contravenes (i) Articles
81(1) or 82 of the Treaty of Rome or (ii) any
other anti-trust, anti-monopoly or anti-cartel legislation or regulations or
any other similar applicable statute, order or regulation, including the
Netherlands Competitive Trading Act.

 

12.  Litigation

 

12.1    No Stolt JV
Company or Stolt JV Business is involved whether as claimant or defendant or
other party in any claim, proceeding, litigation, prosecution, investigation,
enquiry or arbitration (other than as claimant in the collection of debts
arising in the ordinary course of its business) which is material to the Stolt
Activities.

 

12.2    There is no
order, decree, judgment or agreement of or with any court or any governmental
authority or agency outstanding against and notified in writing to any of the
Stolt JV Companies or Stolt JV Businesses or which may, individually or
collectively, have a material adverse effect upon the Stolt Activities.

 

12.3    So far as
Stolt is aware, no such claim, proceeding, litigation, prosecution,
investigation, enquiry or arbitration of material importance to the business of
the Stolt Activities is threatened against any Stolt JV Company or Stolt JV
Business.

 

13.  Insurance

 

13.1    The
insurances of the Stolt JV Companies and Stolt JV Businesses material to the
business of the Stolt Activities, including insurances relating to bio-mass and
other assets, have been disclosed in the Stolt Data Rooms and give adequate
cover against fire, product liability and other risks which are normally
insured against by companies carrying on similar businesses or owning assets of
a similar nature.

 

13.2    In respect of
the insurances referred to in Paragraph 13.1, all premiums have been duly paid
to date and no relevant member of the Stolt Group has received any notification
that such insurances are not valid or enforceable, and Stolt is not aware of
any event or circumstance that could lead to such insurances to become invalid
or unenforceable.

 

13.3    Details of
all outstanding insurance claims in excess of EUR 100,000 (one hundred thousand
euro) and of all insurance claims in excess of EUR 100,000 (one hundred
thousand euro) made during the past 2 (two) years preceding the Signing Date
have been disclosed in the Stolt Data Rooms.

 

14.  Products

 

During the 12 (twelve) month period prior
to the Signing Date, no individual claims of more than EUR 100,000 (one hundred
thousand euro) and in aggregate not more than EUR 1,000,000 (one

 

97

 

million euro) have been made against any
Stolt JV Company or Stolt JV Business in respect of any products which have
been produced or sold by any Stolt JV Company or Stolt JV Business.

 

15.  Disclosure of information

 

The following information has been collated
by Stolt in good faith and Stolt has not knowingly included any matter which is
untrue or knowingly omitted any matter the omission of which would make the
contents untrue or inaccurate in any material respects:

 

15.1    all disclosures made pursuant to Paragraph 2 of
the Stolt Disclosure Letter;

 

15.2    all information made available in the Stolt Data
Rooms and in the answers given to questions raised by Nutreco during its due
diligence review; and

 

15.3    all written presentations provided during the
management presentations and included in the binder “Stolt Sea Farm Overview of
Operations”.

 

As far as
Stolt is aware, Stolt has provided Nutreco with all information concerning the
Stolt Activities which may be material to the Stolt Activities and relevant to
Nutreco in respect of the JV Group.

 

16.  Insolvency

 

16.1    No member of the Stolt Group is insolvent under
the laws of its jurisdiction of incorporation or unable to pay its debts as
they fall due.

 

16.2    There are no proceedings in relation to any
compromise or arrangement with creditors or any winding up, bankruptcy or other
insolvency proceedings concerning any member of the Stolt Group, so far as
Stolt is aware, no events have occurred which, under applicable Law, would
justify such proceedings.

 

16.3    So far as Stolt is aware, no steps have been taken
to enforce any security over any assets of any Stolt JV Company or Stolt JV
Business and no event has occurred to give the right to enforce such security.

 

17.  Disentanglement

 

The
disentanglement of the Stolt JV Companies and Stolt JV Businesses will have
been executed in accordance with the Stolt Contribution Plan, in compliance
with applicable Law in each country in which the Stolt JV Companies and Stolt
JV Businesses is conducting business of the Stolt Activities, and with due
observance of the rights of creditors and other third parties.

 

98

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]