Document:

exv10w3

Exhibit 10.3

GOLD SILVER S.A.R.L.

(to be renamed Nightwatch Investments S.A.R.L)

Société à responsabilité limitée

Share Capital: EUR 1,320,750

Registered Office: 5, Place du Theatre, L-2613 Luxembourg, Grand Duchy of Luxembourg

RCS Luxembourg: B 103.553

TERMS AND CONDITIONS OF NON-CONVERTIBLE “B” PREFERRED EQUITY CERTIFICATES

(Dated 9 September 2005)

	1.	 	AUTHORISATION FOR PREFERRED EQUITY CERTIFICATES
	 
	1.1	 	By resolutions dated 8 September 2005, the board of managers (the “Board”) of GOLD SILVER
S.A.RL. (the “Company”), a company incorporated for an unlimited duration on 4 October 2004
under the laws of Luxembourg, governed by its articles of association in effect as of the date
hereof and published in Memorial C Recueil Spécial des Sociétés et Associations number C N°
1291 on 16 December 2004 (the “Articles”), has decided to issue one hundred thirty million
seven hundred fifty four thousand three hundred twenty- five (130,754,325) non-convertible “B”
preferred equity certificates having a nominal amount of one Euro (BUR 1) each (hereafter
collectively referred to as the ““B” PECs” and individually as a ““B” PEC”).
	 
	1.2	 	The “B” PECs shall be denominated in EUR. Each PEC shall be issued in registered form, the
“B” PECs holders being listed in a register (the “Register”) to be held at the registered
office of the Company.
	 
	2.	 	DEFINITIONS
	 
	 	 	As used in this document, the following terms shall have the following meaning
	 
	 	 	“A” PECs means the debt instruments issued by the Company under the Terms and Conditions of
Non-Convertible “A” Preferred Equity Certificates on or about the date hereof.
	 
	 	 	Accrual Period means each period from, and including, one Payment Date to, but excluding,
the next following Payment Date, except for the Initial Accrual Period that will commence
on, and include the Date of Issuance and except for the final Accrual Period that will
terminate on the date immediately preceding the Redemption Date.
	 
	 	 	Applicable Rate means the interest rate equal to 6,80%.-per annum calculated on the basis of
the actual number of days elapsed and a three hundred and sixty-five (365)day year.

 

 

	 	 	Board means the board of managers of the Company, as appointed from time to time by the
shareholders of the Company.
	 
	 	 	Business Day means a day (other than a Saturday or a Sunday) on which banks generally are
open in Luxembourg for a full range of business.
	 
	 	 	Certificate means the certificate for “B” PECs in the form of Schedule 1.
	 
	 	 	Date of Issuance means 9 September 2005.
	 
	 	 	Document means these terms and conditions of PECs document (including the Schedules thereto)
as it may be amended, supplemented, varied or acceded to from time to time.
	 
	 	 	Initial Accrual Period means the period from and including the Date of Issuance up to but
excluding the Initial Payment Date.
	 
	 	 	Initial Payment Date means 31 December 2005.
	 
	 	 	Insolvent means the situation where the Company faces bankruptcy (faillite), voluntary or
judicial liquidation (liquidation volontaire ou judiciaire), composition with creditors
(concordat préventif de faillte), reprieve from payment (sursis de paiement), controlled
management (gestion contrôleé), fraudulent conveyance (actio pauliana), general settlement
with creditors, reorganisation or similar laws affecting the rights of creditors generally.
The “B” PECs will be regarded as obligations of the Company for the purpose of computing the
Company’s insolvency.
	 
	 	 	Intercreditor Deed means the deed dated 11 July 2005 (as amended and/or on 11 July 2005, 17
August 2005 and as further amended and/or restated from time to time) and made among, inter
alios, Nachtwache Acquisition GmbH as bidco, the companies named therein as original
obligors, CIBC World Markets plc as mezzanine agent and documentation agent. Deutsche Bank
AG London as senior agent and security agent, the financial and other institutions named
therein as original senior lenders, original tranche D lenders and original mezzanine
lenders and certain other parties named therein.
	 
	 	 	Liquidation means the event of any voluntary or involuntary liquidation, bankruptcy,
dissolution or winding up of the affairs of the Company.
	 
	 	 	Mandatory Redemption Date means the date of Liquidation of the Company or, no Liquidation
has occurred prior to the Maturity Date, the Maturity Date.
	 
	 	 	Maturity Date means forty-nine (49) years after the Date of Issuance.
	 
	 	 	Nightwatch means Nightwatch Holdings S.A., a public limited liability company. incorporated
under the laws of the Grand Duchy of Luxembourg on 20 May 2005, having its registered office
at 5, Place du Theatre, L-2613 Luxembourg, Grand Duchy of Luxembourg, registered with the
Luxembourg register of commerce and companies under n° B 108.466.
	 
	 	 	Nominal Value means with respect to each outstanding PEC, EUR 1 (1 Euro).

 

 

	 	 	Ordinary Shares means each issued ordinary share of the Company, as stated in the Articles,
whether issued on the date hereof or in the future as required or provided for by the
Shareholders Investment Agreement and any agreement referred therein.
	 
	 	 	Payment Date means the last day of December of each year.
	 
	 	 	Person means any individual, partnership, limited liability company, corporation, trust,
unincorporated organisation, custodian, nominee or any other individual or entity in its own
or in any representative capacity.
	 
	 	 	Redemption Date means the Mandatory Redemption Date or the Optional Redemption Date as
defined in Clause 4.2.
	 
	 	 	Redemption Price means with respect to any “B” PEC, the sum of (i) Nominal Value for each
outstanding “B” PEC that will be redeemed, plus (ii) any Yield accrued but not paid.
	 
	 	 	Shareholders Investment Agreement means the investment and shareholders agreement regarding
Investments in the Company entered into between the Company and the other Parties (as
defined in that Shareholders Investment Agreement) dated on or about the date of the
document, as it may be amended or restated from time to time.
	 
	 	 	Subordinated Securities means (i) all of the Ordinary Shares and (ii) warrants or any form
of equity securities giving right, directly or indirectly, to subscribe or acquire shares in
the Company.
	 
	 	 	Transfer means the transfer in whatever form, including any assignment, encumbrance or the
granting of any interest or right or claim to, of all or part of the “B” PECs. For the
purpose of this Document, a Transfer shall include any direct or indirect transfer of
control over or of a “B” PECs holder such as transfer of shares or other ownership interest
in a “8” PECs holder, or merger or demerger involving a “B” PECs holder.
	 
	 	 	Yield means for each Accrual Period, the fixed Yield determined under Clause 3.

	3.	 	YIELD
	 
	3.1	 	Subject to the terms of the Intercreditor Deed, each “B” PEC shall carry the right to receive
a Yield payable by the Company in respect of any Accrual Period ending immediately before each
Payment Date of an amount equal to the product of the Applicable Rate and the Nominal Value;
	 
	3.2	 	If a Payment Date would otherwise fall on a day which is not a Business Day, that Payment
Date will instead fall on the following Business Day.
	 
	3.3	 	To the extent that the Company receives distributions in kind. the Board may in it sole
discretion either (i) pay the Yield in kind to the holders of “B” PECs, or (ii) offer the
holders of “B” PECs the right to elect to receive cash or in kind payments in connection
therewith and, following such election, may (but shall not be required to) make a payment to
some holder of “B” PECs in cash and to others in-kind.

 

 

	3.4	 	Yield shall accrue daily on the basis of a three hundred sixty-five (365) day year. For the
avoidance of doubt, capitalization of Yield shall not occur.
	 
	3.5	 	The unpaid Yield shall be due and payable on each Payment Date except as provided in Clause
4, but only when the payment has been declared by the Board, which will occur if the Company,
after payment of or provisions for any other ordinary creditors, privileged, secured or
unsecured, has available funds net of cost and tax resulting from any payments made by its
subsidiaries (including but not limited to the payment of dividends but excluding any payments
under shareholder loans granted to its subsidiaries), any payments resulting from the proceeds
of a sale of its subsidiaries or any payments resulting from a sale by the Company of all or
some of the shares of its subsidiaries.
	 
	4.	 	REDEMPTION
	 
	4.1	 	Subject to the terms of the Intercreditor Deed, the “B” PECs shall be redeemed upon the
following events: (i) at the option of the Company (as described in Clause 4.2 hereunder) or
(ii) the passing of the Mandatory Redemption Date.
	 
	4.2	 	Redemption at the option of the Company

	 	4.2.1	 	Upon a 5 (five) Business Days prior notice to the holders of “B” PECs, the
Company may elect to redeem any or some “B” PECs held by the holder at the sole
discretion of the Board. Such notice shall indicate the date at which the “B” PECs
shall be redeemed (the “Optional Redemption Date”) and the number of “B” PECs to be
redeemed.
	 
	 	4.2.2	 	In case of Optional Redemption, the Company shall redeem the “B” PECs at the
Redemption Price.
	 
	 	4.2.3	 	In case of partial redemption, the Company shall redeem pro rata as to all
holders of “B” PECs.

	4.3	 	Mandatory Redemption
	 
	 	 	In case of Mandatory Redemption, the Company shall redeem all of the then outstanding “B”
PECs at the Redemption Price.
	 
	4.4	 	General conditions of Redemption

	 	4.4.1	 	On the Redemption Date, the Company shall redeem all (or some) of the then
outstanding “B” PECs at the Redemption Price only if (i) the Company is not immediately
before and after giving effect to such payment Insolvent, (ii) such payment will not
violate any covenant contained in or result in a default under any agreement or other
financial obligation of the Company and (iii) in case of voluntary Liquidation of the
Company, with the prior written consent of the holders representing 50% of the
aggregate Nominal Value of the “B” PECs.
	 
	 	4.4.2	 	For purposes of Clause 4.4.1 neither the voluntary sale, conveyance, exchange
or transfer (for cash, shares, stock, securities or other consideration) of all or
substantially all the property or assets of the Company nor the consolidation or merger
of the Company with one or more corporations shall be deemed to be a

 

 

	 	 	 	Liquidation unless such voluntary sale, conveyance, exchange or transfer shall
be in connection with a winding up of the business of the Company or pursuant to an
arrangement with creditors.
	 
	 	4.4.3	 	Subject to the terms of the Intercreditor Deed, each holder of “B” PECs shall
receive an amount equal to the Redemption Price.
	 
	 	4.4.4	 	Subject to stricter legal constraints and subject to the terms of the
Intercreditor Deed, the Redemption Price shall be paid to the holders of “B” PECs
within 10 (ten) Business Days after the Redemption Date upon surrender of the
Certificate, when appropriate.
	 
	 	4.4.5	 	The Redemption Price shall be paid to the holders o[“B” PECs as recorded in
the Register ultimately on Redemption Date or, in case the redemption is resulting from
the Liquidation of the Company, the date on which the liquidation of the Company shall
be completed.
	 
	 	4.4.6	 	Subject to the terms of the Intercreditor Deed, the Redemption Price due and
not paid on the Redemption Date will accrue Yield at the Applicable Rate beginning on
and including the Redemption Date.

	5.	 	REPAYMENT OF “B” PECS
	 
	 	 	Subject to the terms of the Intercreditor Deed, 10 the extent practicable and permitted
under applicable law, the Company may elect, from time to time to reduce the Nominal Value
of the “B” PECs, in which case the Board shall so notify the holders of “B” PECs the amount
of such reduction in Nominal Value on the date of such election, and shall distribute the
amount of such reduction in Nominal Value among the holders of “B” PECs on the next Payment
Date or at any other date that the Board may consider to be appropriate in its sole
discretion.
	 
	6.	 	WITHHOLDING TAXES
	 
	 	 	All payments on the “B” PECs shall be made free and clear of withholding taxes imposed by
any taxing jurisdiction, unless the withholding of such tax is compelled by law.
	 
	7.	 	FORM OF THE “B” PECS. ISSUANCE AND EXCHANGE OF CERTIFICATES
	 
	7.1	 	All “B” PECs shall be issued in registered form. The name and address of the holder of each
certificate representing an “B” PEC will be registered in the Register by the Company. Except
as expressly required by law, the Person in whose name the “B” PECs stand in the Register
shall be deemed to be the full and undivided owner and record holder thereof for all purposes.
	 
	7.2	 	Upon request of the holder of record of the “B” PECs, the Company shall, at the cost of
such. holder, issue a Certificate evidencing one or more “B” PECs. In case such Certificate
evidences more than one “B” PEC, the Company shall upon request of the holder of record
replace, at the cost of such holder, such Certificate by new Certificates evidencing one or
more “B” PECs.

 

 

	7.3	 	Each holder of record shall promptly notify the Company of any mutilation, loss, theft, or
destruction of any Certificate or Certificates evidencing any “‘B” PECs of which it is the
record holder. The Company may, in its discretion, issue a Dew Certificate in place of any
Certificate theretofore issued by it and alleged to have been mutJ1ated, lost, stolen or
destroyed, upon satisfactory proof of such mutilation, loss, theft or destruction.
	 
	8.	 	GENERAL TERMS AND COND1TIONS OF “B” PECS
	 
	8.1	 	Ranking
	 
	 	 	Subject to the terms of the Intercreditor Deed as provided for in Clause 9, the “B” PECs
shall rank pari passu to the “A” PECs and give entitlement to the same rights to their
holders but shall rank senior to all Subordinated Securities and shall rank junior to all
other present and future obligations of the Company whether secured or unsecured.
	 
	8.2	 	Voting Rights
	 
	 	 	The holders of record of the “B” PECs shall not be entitled to any voting rights in
respect of the Company by reason of their ownership of the “B” PECs and have no right to
participate, directly or indirectly, in the management of the Company.
	 
	8.3	 	Transfer procedure and restrictions

	 	8.3.1	 	The “B” PECs shall at all times be held by the holders of the Ordinary Shares,
in proportion to the ownership by such holders of the Ordinary Shares, and a Person
cannot become holder of “B” PECs unless becoming at the same time shareholder of the
Company.
	 
	 	8.3.2	 	Subject to compliance with legal requirements and the Articles, a holder of
“B” PECs is authorised to make a Transfer of all or part of its “B” PECs only to the
extent that the Transfer is permitted by the Shareholders Investment Agreement and the
Intercreditor Deed. No transferee shall have the right to have the “B” PECs transferred
to it unless and until all the conditions in relation to the Transfer of the Ordinary
Shares and the “B” PECs as stated in the Shareholders Investment Agreement, the
Intercreditor Deed or in the Articles are satisfied.
	 
	 	8.3.3	 	Any transfer by a holder of “B” PECs shall only be valid if such holder
validly transfers a corresponding proportion of its Ordinary Shares to the same
transferee.
	 
	 	8.3.4	 	Each transferor of “B” PECs agrees that it will pay all reasonable expenses,
including attorneys’ fees and expenses, incurred by the Company in connection with a
Transfer of “B” PECs held by such holder, except to the extent that the transferee
thereof agrees to bear such expenses, and agrees to execute and deliver such
documentation as the Board or legal counsel to the Company may deem advisable and shall
request in connection with any proposed Transfer.

 

 

	 	8.3.5	 	Any Transfer not made in accordance with Clause 8 shall not be valid. Binding
and enforceable against the Company. Furthermore, any Transfer shall not be valid
against the Company until the Company has received a letter signed by the transferor of
“B” PECs and the transferee.

	9.	 	INTERCREDITOR DEED
	 
	9.1	 	The rights of a “B” PECs holder to receive payments of Yield and/or principal amount in
respect of this Document and to enforce such payment is subject in all respects to the
provisions of the Intercreditor Deed.
	 
	9.2	 	No transfer of all or part of the “B” PECs shall be registered unless the transferee (if not
already a party thereto) has first adhered to the Intercreditor Deed then in force if and to
the extent thereby required.
	 
	10.	 	GOVERNING LAW AND JURISDICTION
	 
	 	 	This Document shall be subject to the laws of Luxembourg and the Parties expressly accept
the exclusive jurisdiction of the courts and tribunals of the city of Luxembourg to settle
any dispute arising in relation to this Document.

The Company has caused this Document to be executed by its duly authorised representative.

 

 

GOLD SILVER S.A.R.L.

/s/ Delphine Tempe

Name: Delphine Tempé

Title: Manager

 

 

SCHEDULE 1

FORM OF CERTIFICATE FOR “B” PECs

GOLD SILVER S.A.R.L.

Société à responsabilité limitée

Share Capital: EUR [.]

Registered Office: 5, Place du Theatre, L-2613 Luxembourg, Grand Duchy of Luxembourg

RCS Luxembourg: B 103.553

CERTIFICATE NUMBER: [**]

On [*] September 2005,

GOLD
SILVER S.AR.L. (the “Company”), a company incorporated for an unlimited duration on 4 October
2004 under the laws of Luxembourg, governed by its articles of association in effect as of the date
hereof and published in Memorial C Recueil Spécial des Sociétés et Associations number [.] (the
“Articles”)

Its constitutional documents are filed with the Luxembourg register of commerce and companies and
are available to any interested person who, by requesting in writing, can obtain a full copy
thereof.

The Articles have been amended by

[.]; and

;

This certificate (the “Certificate”) is issued in respect of [**] (**) non-convertible preferred
equity certificates having a Nominal Value of Euro [**] each (hereafter collectively referred to as
the ““B” PECs” and individually as an ‘B” PEC”) issued by the Company pursuant to the terms and
conditions as attached thereto.

This Certificate certifies that [name of a “B” PECs holder], a company, having its registered
office at [**] and registered with [**] under number [**], is at the date hereof registered in the
register of “B” PECs (the ““B” PECs Register”) maintained by the Company at its registered office
as the duly registered holder (the “Registered Holder”) of [**]“B” PECs represented hereby and
issued by the Company pursuant to resolutions of the Board dated [.] September 2005, and
constituted by the terms and conditions attached thereto.

Exchange or transfers of the “B” PECs represented by this Certificate shall be made only in
accordance with Clauses 7 and 8.3 of the attached terms and conditions.

 

 

The “B” PECs are subject to the term of the Intercreditor Deed in accordance with Clause 9 of the
attached terms and conditions.

This Certificate is evidence of entitlement only and is not a document of title. Entitlements are
determined by the “B” PECs Register and only the Registered Holder is entitled to payment in
respect of the “B” PECs represented hereby. Title to the “B” PECs represented by this Certificate
shall pass by registration in the Register.

The statements in the attached terms and conditions are an integral part of the terms of this
Certificate and by acceptance thereof, each holder of this Certificate agrees to be subject to and
bound by the provisions set forth in such terms and conditions.

This Certificate is governed by, and shall be construed in accordance with, Luxembourg law.

GOLD SILVER S.A.R.L.

By:

Name: [*]

Title: Manager

 

 

To:

GOLDSILVER S.A.R.L

5. Place du Theatre

L-2613 Luxembourg

Grand Duchy of Luxembourg

R.C.S.L. B. 103.553

To the attention of the Board of Managers

7 September 2005

Dear Sirs,

Nachtwache Management Vermögensvenvaltungs GmbH & Co. KG, a limited partnership having its
registered office at Klopstockstrasse 5, 65381 Wiesbaden. Germany (the “Subscriber”), represented
by its general partner Rembrandt Nachtwache Verwaltungs GmbH, having its registered office at
Klopstockstrasse 5, 65381 Wiesbaden, Germany hereby confirms its application for the allotment of:

> 5,067,925 (five million sixty seven thousand nine hundred twenty five) Class B preferred
equity certificates, with a par value of EUR 1 (one) each (the “PECs B”) for an amount of EUR
5,067,925 (five million sixty seven thousand nine hundred twenty five Euros);

to be issued on or about the 9 September 2005 by GOLDSILVER S.A.R.L. (to be renamed Nightwatch
Investments Sari), a private limited liability company, having its registered office at 5, Place du
Theatre L-2613 Luxembourg (Grand Duchy of Luxembourg), registered with the Luxembourg Register of
Commerce and Companies under number B. 103.553 and incorporated under the Luxembourg law pursuant
to a deed dated on 4 October 2004 (the “Company”).

The total issue price for the PECs B amount,> to EUR 5,067.925 (five million sixty seven
thousand nine hundred twenty five Euros).

The Subscriber confirms to have paid the issue price for the PECs B by a contribution in cash of a
total amount of EUR 5,067,925 (five million sixty seven thousand nine hundred twenty five Euros).

Yours faithfully,

On behalf of Nachtwache Management Vermögensverwaltungs GmbH & Co. KG

/s/ Rembrandt Nachtwache Verwaltungs GmbH

Represented by its managing director with the right to represent alone Marc Strobelexv10w4

Exhibit 10.4

			
	 	 	 
	
	 	CLIFFORD CHANCE

PARTNERSCHAFTSGESELLSCHAFT

ELSTER GROUP SE

(AS THE ISSUING COMPANY AND BORROWER)

NACHTWACHE METERING MANAGEMENT VERMöGENSVERWALTUNGS GMBH

& CO. KG

(AS THE B PECS HOLDER AND LENDER)

 

AMENDMENT AGREEMENT REGARDING THE

NON-CONVERTIBLE PREFERRED EQUITY

CERTIFICATES “B” DATED 9 SEPTEMBER 2005

 

CLIFFORD CHANCE PARTNERSCHAFTSGESELLSCHAFT VON RECHTSANWÄLTEN, WIRTSCHAFTSPRÜFERN,

STEUERBERATERN UND SOLICITORS • SITZ: FRANKFURT AM MAIN • AG FRANKFURT AM MAIN PR 1000

 

This AMENDMENT AGREEMENT (the “Agreement”) has been entered into on 30 November 2009,

BETWEEN

	(1)	 	Elster Group SE, a European public limited liability company (Europäische
Aktiengesellschaft), having its registered office at 26 — 28, rue Edward Steichen, L-2540
Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B
103.553 (the “Company”); and
	 
	(2)	 	Nachtwache Metering Management Vermögensverwaltungs GmbH & Co. KG, a Kommanditgesellschaft
(limited partnership) incorporated under the laws of the Federal Republic of Germany with its
seat in Wiesbaden, registered in the commercial register of the local court of Wiesbaden under
HRA 8299 (the “B PECs Holder”),

(the Company and the B PECs Holder are hereinafter collectively referred to as the “Parties” and
individually as a “Party”)

WHEREAS:

	(A)	 	The Company has issued 3,903,914 (in words: three million nine hundred and three thousand
nine hundred and fourteen) Non-Convertible “B” Preferred Equity Certificates, debt instruments
under Luxembourg law issued by the Company under the terms and conditions of the
Non-Convertible “B” Preferred Equity Certificates dated 9 September 2005 (the “PECs B”), for a
subscription value of EUR 1.00 (in words: one Euro) each (the “B PECs”) to the B PECs Holder,
a shareholder of the Company.
	 
	(B)	 	The Company is in the process of transferring, in accordance with Art. 8 of the Council
Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European company (SE) (the
“SE-Regulation”) and the applicable laws of the Grand Duchy of Luxembourg and the Federal
Republic of Germany, its registered office (Satzungssitz) and head office (Hauptverwaltung)
from Luxembourg to Germany (the “Transfer”), which process it intends to complete by the end
of 2009.
	 
	(C)	 	As of completion of the Transfer the national law primarily applicable to the Company will no
longer be the law of the Grand Duchy of Luxembourg but instead the law of the Federal Republic
of Germany.
	 
	(D)	 	The law of the Federal Republic of Germany does not have the legal concept of preferred
equity certificates. The Parties therefore have agreed to retain the loan under the B PECs but
to amend the terms thereof in order to treat the loans constituted by the B PECs as an
economically comparable shareholder loan on the terms and conditions set out in the Schedule
to this Agreement (the “Shareholder Loan Agreement”) prior to completion of the Transfer.

Therefore IT IS AGREED as follows:

-1-

 

	1.	 	AMENDMENT OF THE PECS B
	 
	1.1	 	The Parties hereby agree that with immediate effect the terms of the existing B PECs
including all accrued and unpaid Yield (as defined thereunder) shall be amended and shall
thereafter continue as a shareholder loan on the terms and conditions as set out in the
Shareholder Loan Agreement with the effect that all claims, rights and obligations of the
Parties in respect of the debt constituted by the B PECs shall continue to exist but, with
immediate effect, shall be on the terms of, and subject to, the Shareholder Loan Agreement.
	 
	1.2	 	The B PECs Holder undertakes to return all certificates in its possession representing the
claims constituted by the PECs B prior to the amendment of such claims under Clause 1.1.
	 
	1.3	 	The Parties hereby agree that, with immediate effect, claims under the Shareholder Loan
Agreement continue to be treated as a PEC for the purposes of Clause 17.4.2 of the Investment
and Shareholders’ agreement regarding Investments in the Company entered into between, inter
alios, the Company and the B PECs Holder dated 19 December 2008 (as amended and restated from
time to time) and that they will use their respective reasonable efforts to ensure that this
treatment is applied.
	 
	1.4	 	This Agreement, in particular Clause 1.1 above, is subject to the dissolving condition
(auflösende Bedingung) that the Transfer is not completed (i.e. the registration of the
Company’s registered office with the German commercial register of the local court of Essen
pursuant to Article 8 section 10 SE-Regulation has not occurred) on or before 31 March 2010.
	 
	2.	 	GOVERNING LAW AND JURISDICTION
	 
	2.1	 	This Agreement shall be governed by the Law of the Grand Duchy of Luxembourg.
	 
	2.2	 	The courts of Luxembourg City shall have exclusive jurisdiction to settle any dispute, which
may arise from or in connection with it.

[Signature page follows]

- 2 -

 

SIGNATURE PAGE

The Company:

Elster Group SE

	 	 	 	 	 

	/s/
Delphine Tempé
 

By: Delphine Tempé

	 	 
	 	Luxembourg, 30 November 2009

Place, Date
	Title: Director
	 	 	 	 
	 
	 	 	 	 
	/s/ Emanuela Brero
 

By: Emanuela Brero

	 	 
	 	Luxembourg, 30 November 2009

Place, Date
	Title: Director
	 	 	 	 

The B PECs Holder:

Nachtwache Metering Management Vermögensverwaltungs GmbH & Co. KG

	 	 	 	 	 

	/s/ Dr. Thomas Preute
 

By: Dr. Thomas Preute

	 	 
	 	Essen, 30 November 2009

Place, Date
	Title: Managing Limited Partner
	 	 	 	 
	 
	 	 	 	 
	/s/ Christoph Schmidt-Wolf
 

By: Christoph Schmidt-Wolf

	 	 
	 	Essen, 30 November 2009

Place, Date
	Title: Managing Limited Partner
	 	 	 	 

- 3 -

 

SCHEDULE

Shareholder Loan Agreement

- 4 -

 

	 	 	 

	

	 	CLIFFORD CHANCE

PARTNERSCHAFTSGESELLSCHAFT

ELSTER GROUP SE

(AS BORROWER)

AND

NACHTWACHE METERING MANAGEMENT

VERMÖGENSVERWALTUNGS GMBH & CO. KG

(AS LENDER)

 

SHAREHOLDER LOAN AGREEMENT

(GESELLSCHAFTERDARLEHEN)

 

CLIFFORD CHANCE PARTNERSCHAFTSGESELLSCHAFT VON RECHTSANWÄLTEN, WIRTSCHAFTSPRÜFERN,
STEUERBERATERN UND SOLICITORS • SITZ: FRANKFURT AM MAIN • AG FRANKFURT AM MAIN PR 1000

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	§ 1 Interpretation
	 	 	2	 
	 
	§ 2 Principal Amount
	 	 	4	 
	 
	§ 3 Interest
	 	 	4	 
	 
	§ 4 Maturity
	 	 	4	 
	 
	§ 5 Payments
	 	 	5	 
	 
	§ 6 Borrower’s Default
	 	 	6	 
	 
	§ 8 Assignment
	 	 	6	 
	 
	§ 9 Miscellaneous
	 	 	7	 
	 
	§ 10 Partial Invalidity
	 	 	8	 
	 
	§ 11 Governing Law
	 	 	8	 
	 
	§ 12 Jurisdiction
	 	 	8	 

 

 

SHAREHOLDER LOAN AGREEMENT

This SHAREHOLDER LOAN AGREEMENT (Gesellschafterdarlehen) (the “Agreement”) is entered into on 30
November 2009,

BETWEEN:

	(1)	 	Elster Group SE, a European public limited liability company (Europäische
Aktiengesellschaft), having its registered office at 26 — 28, rue Edward Steichen, L-2540
Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B
103.553 (the “Borrower”); and
	 
	(2)	 	Nachtwache Metering Management Vermögensverwaltungs GmbH & Co. KG, a Kommanditgesellschaft
(limited partnership) incorporated under the laws of the Federal Republic of Germany with its
seat in Wiesbaden, registered in the commercial register of the local court of Wiesbaden under
HRA 8299 (the “Lender”),
	 
	 	 	(the Lender and the Borrower together are referred to as the “Parties” and each as a
“Party”)

WHEREAS:

	(A)	 	The Lender is a shareholder of the Borrower.
	 
	(B)	 	The Borrower has issued 3,903,914 (in words: three million nine hundred and three thousand
nine hundred and fourteen) Non-Convertible “B” Preferred Equity Certificates, debt instruments
under Luxembourg law issued by the Borrower under the terms and conditions of the
Non-Convertible “B” Preferred Equity Certificates dated 9 September 2005 (the “PECs B”), for a
subscription value of EUR 1.00 (in words: one Euro) each (the “B PECs”) to the Lender.
	 
	(C)	 	The Borrower is in the process of transferring, in accordance with Art. 8 of the Council
Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European company (SE) (the
“SE-Regulation”) and the applicable laws of the Grand Duchy of Luxembourg and the Federal
Republic of Germany, its registered office (Satzungssitz) and head office (Hauptverwaltung)
from Luxembourg to Germany (the “Transfer”), which process it intends to complete by the end
of 2009.
	 
	(D)	 	As of completion of the Transfer the national law primarily applicable to the Borrower will
no longer be the law of the Grand Duchy of Luxembourg but instead the law of the Federal
Republic of Germany.
	 
	(E)	 	The law of the Federal Republic of Germany does not have the legal concept of preferred
equity certificates. The Parties therefore have agreed to retain the existing loan under the B
PECs but to amend the terms thereof in order to treat the loan constituted by the B PECs as an
economically comparable shareholder loan prior to

 - 1 - 

 

	 	 	completion of the Transfer.

Therefore IT IS AGREED as follows:

	§ 1	 	 Interpretation
	 
	1.1	 	Unless otherwise expressly defined, capitalised terms used in this Agreement shall have the
meaning as set out below.
	 
	 	 	“Accrual Period” means each period from, and including, one Interest Payment Date to, but
excluding, the next following Interest Payment Date, except for the Initial Accrual Period
that will commence on, and include the Date Of Drawdown and except for the final Accrual
Period that will terminate on the date immediately preceding the Repayment Date.
	 
	 	 	“Applicable Rate” means the interest rate equal to 6.80% per annum calculated on the basis
of the actual number of days elapsed and a 365 (three hundred and sixty-five) day year.
	 
	 	 	“Board” means the board (Verwaltungsrat) of the Borrower, as appointed from time to time by
the shareholders of the Borrower.
	 
	 	 	“Business Day” means a day (other than a Saturday or a Sunday) on which banks generally are
open in Germany for a full range of business.
	 
	 	 	“Date Of Drawdown” means 9 September 2005.
	 
	 	 	“Initial Accrual Period” means the period from and including the Date Of Drawdown up to but
excluding the Initial Payment Date.
	 
	 	 	“Initial Payment Date” means 31 December 2005.
	 
	 	 	“Insolvent” means the situation where the Borrower faces bankruptcy, voluntary or judicial
liquidation, composition with creditors, reprieve from payment, controlled management,
fraudulent conveyance, general settlement with creditors, reorganisation or similar laws
affecting the rights of creditors generally. The Loan will be regarded as an obligation of
the Borrower for the purpose of assessing the Borrower’s insolvency.
	 
	 	 	“Intercreditor Deed” means the deed dated 11 July 2005 (as amended and / or restated on 11
July 2005, 17 August 2005 and as further amended and / or restated from time to time) and
made among, inter alios, Nachtwache Acquisition GmbH as BidCo, the companies named therein
as original obligors, CIBC World Markets plc as mezzanine agent and documentation agent,
Deutsche Bank AG London as senior agent and security agent, the financial and other
institutions named therein as original senior lenders, original tranche D Lenders and
certain other parties named therein.
	 
	 	 	“Interest” means for each Accrual Period the fixed interest under § 3.
	 
	 	 	“Interest Payment Date” means the last day of December of each year.
	 
	 	 	“Liquidation” means the event of any voluntary or involuntary liquidation,

 - 2 - 

 

	 	 	bankruptcy, insolvency, dissolution or winding up the affairs of the Borrower.
	 
	 	 	“Loan” has the meaning given in § 2.
	 
	 	 	“Mandatory Maturity Date” means the date of Liquidation of the Borrower or, if no
Liquidation has occurred prior to the Maturity Date, the Maturity Date.
	 
	 	 	“Maturity Date” means 31 December 2025.
	 
	 	 	“Mezzanine Facility Agreement” means the mezzanine facility agreement dated 12 June 2005 (as
amended and restated on 11 July 2005 and 17 August 2005 and as further amended and / or
restated from time to time) and made among, inter alios, Nachtwache Acquisition GmbH as
BidCo, a borrower and a guarantor, the companies named therein as guarantors, CIBC World
Markets plc, Deutsche Bank AG London and Morgan Stanley Bank International Limited as
mandated lead arrangers, CIBC World Markets plc as facility and documentation agent,
Deutsche Bank AG London as security agent and the financial and other institutions named
therein as lenders.
	 
	 	 	“Ordinary Shares” means each issued ordinary share of the Borrower, as stated in the
articles of association of the Borrower, whether in issue on the date hereof or issued in
the future as required or provided for by the Shareholders Investment Agreement and any
agreement referred to therein.
	 
	 	 	“Repayment Date” means the Mandatory Maturity Date or the Optional Maturity Date as defined
in § 4.
	 
	 	 	“Repayment Amount” means with respect to the outstanding principal of the Loan, the sum of
(i) the amount for the outstanding principal Loan that will be repaid, plus (ii) any
Interest accrued but not paid up to and including the date on which repayment is made.
	 
	 	 	“Rembrandt” means Rembrandt Holdings S.A., a société anonyme incorporated under the laws of
the Grand Duchy of Luxembourg with its registered office at 26 — 28, rue Edward Steichen,
L-2540 Luxembourg, registered with the Luxembourg register of Commerce and Companies under
number B 108.466.
	 
	 	 	“Senior Facilities Agreement” means the senior facilities agreement dated 12 June 2005 (as
amended and / or restated on 11 July 2005 and 17 August 2005 and as further amended and / or
restated from time to time) and made among, inter alios, Nachtwache Acquisition GmbH as
BidCo, borrower and guarantor, the companies named therein as borrowers and guarantors, CIBC
World Markets plc, Deutsche Bank AG London and Morgan Stanley Bank International Limited as
mandated lead arrangers, Deutsche Bank AG London as facility agent and as security agent,
CIBC World Markets plc as documentation agent and the financial and other institutions named
therein as lenders.
	 
	 	 	“Shareholders Investment Agreement” means the investment and shareholders’ agreement
regarding investments in the Borrower entered into between, inter alios, the Borrower and
the Lender dated 19 December 2008 (as amended and / or restated from time to time).
	 
	 	 	“Subordinated Securities” means (i) all of the Ordinary Shares and (ii) warrants or

 - 3 - 

 

	 	 	any form of equity securities giving right, directly or
indirectly, to subscribe or acquire shares in the Borrower.
	 
	1.2	 	All claims, rights and obligations of the Parties under the B PECs continue in force, but
have been amended, and shall for all purposes be applied and construed as claims, rights and
obligations, on the terms of this Agreement with immediate effect.
	 
	1.3	 	The headings in this Agreement do not affect its interpretation.
	 
	1.4	 	Save where the contrary is indicated, any reference in this Agreement to:

	 	1.4.1	 	this Agreement or any other agreement, deed or document shall be construed
as a reference to the relevant agreement, deed or document as the same may have been,
or may from time to time be, renewed, extended, amended, varied, novated, supplemented
or superseded;
	 
	 	1.4.2	 	any statutory provision shall be deemed also to refer to any statutory or
modification, re-enactment or replacement thereof or any statutory instrument, order or
regulation made there under or under any such modification or re-enactment;
	 
	 	1.4.3	 	any reference to a “Clause”, a “Schedule” or a “Recital” is, unless
otherwise stated, a reference to a Clause, a Schedule or a Recital hereof;
	 
	 	1.4.4	 	any party to this Agreement shall include reference to its successors and
permitted assigns there under.

	§ 2	 	 Principal Amount
	 
	 	 	The Lender has granted a loan in the amount of EUR 3,903,914.00 (in words: three million
nine hundred and three thousand nine hundred and fourteen Euro and zero Cents) to the
Borrower (the “Loan”) on the terms of this Agreement.
	 
	§ 3	 	 Interest
	 
	3.1	 	Subject to the terms of the Intercreditor Deed, the Loan shall bear interest payable by the
Borrower in respect of any Accrual Period at the Applicable Rate in relation to the
outstanding principal of the Loan.
	 
	3.2	 	The Interest shall accrue daily upon the basis of a 365 (three hundred and sixty-five) day
year. For the avoidance of doubt, capitalization of Interest shall not occur.
	 
	3.3	 	The unpaid Interest, including for the avoidance of doubt, all accrued but unpaid amounts of
Yield (as defined under the PECs B) as of the date of this Agreement, remains unpaid and shall
accrue. Notwithstanding the previous sentence this Interest shall be due and payable (i) on an
Interest Payment Date if the Borrower elects to make such payment or (ii) as otherwise
provided in § 4.
	 
	§ 4 	 	Maturity
	 
	4.1	 	Subject to the terms of the Intercreditor Deed, repayment of the Loan shall be due upon the
following events: (i) at the option of the Borrower (as described in

 - 4 - 

 

	 	 	Clause 4.2 hereunder) or (ii) the passing of the Mandatory Maturity Date.
	 
	4.2	 	Maturity at the option of the Borrower

	 	4.2.1	 	Upon 5 (five) Business Days prior notice to the Lender, the Borrower may
elect to redeem any or some of the outstanding principal of the Loan at the sole
discretion of the Board. Such notice shall specify the date at which the repayment
shall be made (the “Optional Maturity Date”) and the amount of the outstanding
principal of the Loan to be repaid.
	 
	 	4.2.2	 	In case of optional repayment, the Borrower shall repay the Loan at the
Repayment Amount on the Optional Maturity Date.
	 
	 	4.2.3	 	In case of optional repayment, Interest on the remaining principal amount of
the Loan shall continue to accrue until full discharge of the Lender’s claims under
this Agreement.

	4.3	 	Mandatory Maturity
	 
	 	 	In case of Mandatory Maturity, the Borrower shall repay the full Repayment Amount.
	 
	4.4	 	General conditions of repayment

	 	4.4.1	 	On the Repayment Date, the Borrower shall pay the Repayment Amount only if
(i) the Borrower is not, immediately before and after making such payment Insolvent,
(ii) such payment will not violate any covenant contained in or result in a default
under any agreement or other financial obligation of the Borrower and (iii) in case of
voluntary Liquidation of the Borrower, if the prior written consent of the Lender has
been granted.
	 
	 	4.4.2	 	For the purposes of Clause 4.4.1 neither the voluntary sale, conveyance,
exchange or transfer (for cash, shares, stock, securities or other consideration) of
all or substantially all the property or assets of the Borrower nor the consolidation
or merger of the Borrower with one or more corporations shall be deemed to be a
Liquidation unless such voluntary sale, conveyance, exchange or transfer shall be in
connection with a winding up of the business of the Borrower or pursuant to an
arrangement with creditors.
	 
	 	4.4.3	 	The Repayment Amount shall be paid to the Lender on the Repayment Date or,
in case the repayment results from the Liquidation of the Borrower, the date on which
the liquidation of the Borrower shall be completed.
	 
	 	4.4.4	 	Subject to the terms of the Intercreditor Deed, any part of the Repayment
Amount due but not paid on the Repayment Date will continue to accrue Interest at the
Applicable Rate from and including the Repayment Date.

	§ 5	 	 Payments
	 
	5.1	 	All payments of the outstanding principal of the Loan, the Interest and other amounts payable
to the Lender hereunder shall be made in Euros, and in immediately available funds into the
accounts of the Lender in accordance with the Lender’s written instructions.

 - 5 - 

 

	5.2	 	All amounts shall be paid in full without set-off or counterclaim or right of retention or
other restrictions and (save as required by law) free and clear of and without any deduction
or withholding for or an account of any taxes or any charges or otherwise. In the event the
Borrower is required by law to make any such deduction or withholding from any payment
hereunder, then the Borrower shall pay the full amount required to be deducted or withheld on
behalf of the Lender to the relevant taxation or other authority within the time allowed for
such payment and shall immediately forward to the Lender official receipts of the relevant
taxation or other authority or other evidence acceptable to the Lender of the amount deducted
or withheld as aforesaid.
	 
	5.3	 	If the due date for any payments hereunder would otherwise fall on a day which is not a
Business Day, such due date shall be extended to the next succeeding Business Day and the
extension of time shall be reflected in computing the Interest.
	 
	5.4	 	All payments made by the Borrower to the Lender under this Agreement will be applied in
respect of the amounts due from the Borrower to the Lender in the following order:

	 	5.4.1	 	Interest (taking any earlier arrears of Interest before the later ones); and
	 
	 	5.4.2	 	the outstanding principal of the Loan.

	5.5	 	The rights of the Lender to receive payments of Interest or of the outstanding principal
amount of the Loan in respect of this Agreement and to enforce such payment are subject in all
respects to the provisions of the Intercreditor Deed.
	 
	§ 6	 	 Borrower’s Default
	 
	 	 	If
	 
	6.1	 	the Borrower fails to duly perform or observe any provision of this Agreement and such
failure shall continue unremedied for three Business Days after the Lender has given written
notice of such failure to the Borrower; or
	 
	6.2	 	the Borrower becomes insolvent or unable to pay its debts as they become due or proceedings
in respect of a Liquidation are instituted with respect to the Borrower or its assets, or if
such proceedings are commenced and not dismissed within 60 days or are dismissed for a lack of
assets,
	 
	 	 	then the Lender may by written notice to the Borrower declare the Loan immediately due and
payable whereupon the same shall become so payable together with all unpaid Interest accrued
thereon.
	 
	§ 7	 	 Ranking; Subordination
	 
	7.1	 	Subject to the provisions of the Intercreditor Deed all present and future sums payable under
the Loan, including but not limited to the payment of principal and Interest, shall rank
senior to all Subordinated Securities and shall rank junior to all other present and future
obligations of the Borrower whether secured or unsecured.
	 
	§ 8	 	 Assignment

 - 6 - 

 

	8.1	 	Neither Party may assign any of its rights under this Agreement without the prior written
consent of the other, save that any Party may assign any of its rights under this Agreement by
way of security to the parties to the Senior Facilities Agreement and the Mezzanine Facility
Agreement.
	 
	8.2	 	No assignment of all or parts of any of a Party’s rights under this Agreement shall be made
unless the transferee (if not already a party thereto) has first adhered to the Intercreditor
Deed then in force if and to the extent thereby required.
	 
	§ 9	 	 Miscellaneous
	 
	9.1	 	No failure to exercise and no delay in exercising, on the part of the Lender, any right,
power or privilege provided by law or under this Agreement or any other documents ancillary
thereto shall operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege preclude any other or further exercise thereof, or the exercise of
any other right, power or privilege. No waiver by the Lender shall be effective unless it is
in writing.
	 
	9.2	 	In the event of a failure of the Borrower to pay any sum other than Interest on the date on
which such sum is due and payable pursuant to this Agreement and irrespective of any notice by
the Lender to the Borrower in respect of such failure, interest shall accrue on such sum from
the date of such failure up to, but not including, the date of actual payment at a rate of 2%
per year above the Applicable Rate.
	 
	9.3	 	Any notice or communication under or in connection with this Agreement shall be in writing
and shall be delivered personally, or by post, telex, fax, cable or email to the addresses
given in this Agreement or at such other address as the recipient may have notified to the
other party in writing. Proof of posting or despatch of any notice or communication shall be
deemed to be proof of receipt:

	 	9.3.1	 	in the case of a letter, on the third Business Day after posting; and
	 
	 	9.3.2	 	in the case of a telex, fax, cable or email an email on the Business day
immediately following the date of despatch.

	9.4	 	The Parties’ details are as follows:

	 
	 	 	 	9.4.1     The Lender     

	 	 	 	 	 

	 

	 	Attn:
	 	Management
	 

	 	Email:
	 	as notified
	 

	 	Telefax:
	 	as notified
	 

	 	Address:
	 	Klopstockstraße 5
	 

	 	 	 	65187 Wiesbaden
	 

	 	 	 	Germany

	 
	 
	 	 	 	9.4.2     The Borrower     

	 	(a)	 	Up to 1 December 2009

	 	 	 	 	 

	 

	 	Attn:
	 	Management
	 

	 	Email:
	 	as notified

 - 7 - 

 

	 	 	 	 	 

	 

	 	Telefax:
	 	as notified
	 

	 	Address:
	 	26 — 28, rue Edward Steichen
	 

	 	 	 	L-2540 Luxembourg
	 

	 	 	 	Grand Duchy of Luxembourg

	 	(b)	 	As of 1 December 2009

	 	 	 	 	 

	 

	 	Attn:
	 	Management
	 

	 	Email:
	 	as notified
	 

	 	Telefax:
	 	as notifed
	 

	 	Address:
	 	Frankenstraße 362
	 

	 	 	 	45133 Essen
	 

	 	 	 	Germany

	9.5	 	This Agreement may be executed in any number of counterparts and by the Parties on separate
counterparts, each of which shall be an original but all of which together shall constitute
one and the same instrument.
	 
	9.6	 	This Agreement including this Clause 9.6 may be amended only in writing and under the
signature of representatives of each of the Parties.
	 
	§ 10	 	 Partial Invalidity
	 
	 	 	If, at any time, any or more of the provisions hereof is or becomes invalid, illegal or
unenforceable in any respect under the laws of any jurisdiction, such provision shall as to
such jurisdiction be ineffective to the extent necessary without affecting or impairing the
validity, legality and enforceability of the remaining provisions hereof or of such
provisions in any other jurisdiction. The invalid, illegal or unenforceable provision shall
be deemed to be replaced with such valid, legal or enforceable provision which comes as
close as possible to the original intent of the parties and the invalid, illegal or
unenforceable provision. Should a gap (Regelungslücke) become evident in this Agreement,
such gap shall, without affecting or impairing the validity, legality and enforceability of
the remaining provisions hereof, be deemed to be filled in with such provision which comes
as close as possible to the original intent of the parties.
	 
	§ 11	 	 Governing Law
	 
	 	 	This Agreement shall be governed by, and shall be construed in accordance with the laws of
the Federal Republic of Germany.
	 
	§ 12	 	 Jurisdiction
	 
	 	 	The place of jurisdiction for any and all disputes arising under or in connection with this
agreement shall be the district court (Landgericht) in Frankfurt am Main.

* * * * *

 - 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]