8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


       Date of Report (Date of earliest event reported): December 12, 2000


                         ANDEAN DEVELOPMENT CORPORATION
                         ------------------------------
             (Exact name of registrant as specified in its charter)


      Florida                       33-90696                     65-0648697
- -------------------                 --------                     ----------
  State or other                  (Commission                   (IRS Employer
  jurisdiction of                 File Number)               Identification No.)
  incorporation)


     801 Brickell Square, Suite 900, Miami, Florida                33131
     ----------------------------------------------                -----
        (Address of principal executive offices)                 (Zip Code)


        Registrant's telephone number, including area code (305) 372-0056
                                                           --------------




Item 2.  Acquisition or Disposition of Assets.

         On December 12, 2000, Consonni USA, Inc., a 61% owned subsidiary of the
Registrant sold approximately 78% of its capital stock in Construcciones
Electromecanicas Consonni, S.A. ("Consonni") to minority shareholders of
Consonni. The purchase price was two hundred and nine million pesetas
(209,000,000 Ptas.) or approximately one million, one hundred and fifteen
thousand U.S. dollars (U.S. $1,115,000). As a consequence of this transaction,
the minority shareholders of Consonni hold an 81% equity interest in Consonni
and Consonni USA, Inc. will retain a 19% equity interest in Consonni.

         The initial payment of fifty million pesetas (50,000,000 Ptas.) or
approximately two hundred and sixty six thousand, seven hundred dollars (U.S.
$266,700.) has been received by Consonni USA, Inc. The balance is to be paid to
Consonni, U.S.A., Inc. over five years as follows: ten payments semiannually
commencing on June 20, 2001, the first payment in the amount of fifteen million
pesetas (15,000,000. Ptas.) or approximately eighty thousand U.S. dollars (U.S.
$80,000) and the remaining nine payments to be in the amount of sixteen million
pesetas (16,000,000 Ptas.) or approximately eighty five thousand U.S. dollars
(U.S. $85,000). Payments will be made in cash, against a promissory note or
other negotiable instrument, provided that such notes or negotiable instruments
shall mature and be payable with interest on the next corresponding payment
date.

         The Registrant recognized a gain of approximately $432,000 on the sale
of its interest in Consonni and a loss in discontinued operations of
approximately $1,800,000.

Item 7.  Financial Statements and Exhibits

         (a)      Financial Statements of Businesses Acquired. Not applicable.
         (b)      Pro Forma Financial Information. Not applicable.
         (c)      Exhibits.

Exhibit No.       Description

    2.1           Buy/Sell of Shares, Concession of Rights, Commitments To
                  Social Modifications and Changes in Debt Balances between C.E.
                  Consonni & Ecesa.



                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                              ANDEAN DEVELOPMENT CORPORATION

Date:  March __, 2001                         By: /s/ Pedro P. Errazuriz
                                                 -------------------------------
                                                  Pedro P. Errazuriz, CEO



                                 EXHIBIT INDEX

EXHIBIT NO.       DESCRIPTION
- -----------       -----------
    2.1           Buy/Sell of Shares, Concession of Rights, Commitments To
                  Social Modifications and Changes in Debt Balances between C.E.
                  Consonni & Ecesa.

EX-2.1

                                                                     EXHIBIT 2.1

  Buy/Sell of Shares, Concession of Rights, Commitments To Social Modifications
           and Changes in Debt Balances between C.E. Consonni & Ecesa

                    BUY/SELL OF SHARES, CONCESSION OF RIGHTS,
                 COMMITMENTS TO SOCIAL MODIFICATIONS AND CHANGES
                 IN DEBT BALANCES BETWEEN C.E. CONSONNI & ECESA

         Bilbao, December 12, 2000


         PRESENT PARTIES:

On one side:      Mr. Ignacio Montalban Goicoechea, adult, with residence in
                  Bilbao (Vizcaya), Gran Via #82, D.N.I. #14.862.649

                  Mr. Jose Antonio Goicoechea Arana, adult, with residence in
                  Valle de Trapaga (Vizcaya), Calle lo de Mayo #22, D.N.I.
                  #14.683.304

                  Mr. Javier Arribas Moso, adult, with residence in Getxo
                  (Vizcaya), Calle Paulino Mendivil #15, D.N.I. #141.758.113

                  Mr. Jose Ignacio Carrasco Elguezabal, adult, with residence in
                  Bilbao (Vizcaya), Calle Rodriguvez Arias #27, D.N.I.
                  #14.504.285

                  Mr. Javier Elorriaga Llona, adult, with residence in Getxo
                  (Vizcaya), Particular de Club #2, D.N.I. #14.870.028

                  Mr. Gustavo Sarachaga Ruiz, adult, with residence in Durange
                  (Vizcaya), Calle Ermodo #15, D.N.I. #78.866.672

And on the other: Mr. Horacio Carlos Civile, of Swedish nationality, adult,
                  neighbor of Bilbao (Vizcaya), Calle Maximo Aguire #11 bis,
                  Swedish passport #09642936

INTERVENING:

A)       The first six attendants in their own name and right (from here on
         forward referred to as the Buyers).

B)       Mr. Horacio Carlos Civile in representation of the Commercial Company
         CONSONNI USA, INC., (from here on forward referred to as the Seller),
         duly authorized for this



         purpose, by virtue of the Administrative Council Agreement of said
         entity, dated October 17, 2000, which is attached as Annex #1.

         The present parties reciprocally recognizing the other with the
         capacity to legally enter into contract.

DECLARING:

I.       That those present here represent 100% of the capital stock of
         CONSTRUCCIONES ELECTROMECANICAS CONSONNI, S.A., which originally
         amounted to three hundred fifty million pesetas (350,000,000 Ptas.),
         represented by thirty five thousand (35,000) shares, numbers 1 through
         35,000, ten thousand (10,000) pesetas of nominal value each 13,650
         shares issued and outstanding with a nominal value of 136,500,000.

II.      That on the 11th day of December in the year 2000, the Extraordinary
         Universal General Board of shareholders met and decided to reduce the
         social capital to that already paid by the shareholders, by which the
         social capital of Construcciones Electromecanicas Consonni, S.A.
         actually ascends to one hundred and thirty six million five hundred
         thousand pesetas paid in total.

III.     That the Buyers wish to acquire 69% of the CONSONNI shares, property of
         the Seller, who in turn wishes to transfer them, which takes place in
         accordance with the following.



                                     CLAUSES

         FIRST - The seller transfers 24,150 shares, numbers 6,651 through
30,800 (69% of the social capital) to the Buyers for the selling price of TWO
HUNDRED AND NINE MILLION PESETAS (209,000,000 Ptas).

         SECOND - Consequently, in agreement with the previous clause, the
resulting ownership in CONSTRUCCIONES ELECTROMECANICAS CONSONNI, S.A. should be
the following after the sale:

         The Buyers:                        81%
         The Seller:                        19%

         The resulting percentage of ownership of each of the buyers from this
sale, as determined and agreed by the buyers, will be duly recorded in public
records before December 19, 2000.

         THIRD - The payment of the agreed upon price of two hundred and nine
million pesetas (209,000,000) Ptas.) will be made as follows:

         -        Fifty million pesetas (50,000,000 Ptas.) in cash, which will
                  be made as follows: a) Fifteen million pesetas (150,000,000
                  Ptas.) at the moment of the public formalization of this
                  transaction, before December 19, and b) the balance of the
                  thirty five million pesetas (35,000,000 Ptas.) before January
                  9, 2001.

         -        The remaining amount of one hundred and fifty nine million
                  pesetas will be paid in five (5) years as follows: 10
                  semiannual payments of fifteen (15) million pesetas due on
                  June 20, 2001 and the remaining 9 payments of sixteen (16)
                  million pesetas each, implementing said payments of money
                  orders, promissory notes, or negotiable investments approved
                  by the seller made in favor of Consonni USA, Inc. by the
                  Buyers before a Notary with the maturation dates being the
                  20th of June and December of each corresponding year. Consonni
                  USA, Inc., if it so wishes, shall have the ability to name a
                  beneficiary of those documents other than itself, by means of
                  a written and signed agreement to the satisfaction of those
                  accepting. To each semiannual payment shall be added the
                  corresponding interest to the unpaid balance, during the six
                  preceding months.

                  The defendant will acquire a type of interest for credit
                  called TYPE OF INTERVENTION OF THE CENTRAL BANK OF EUROPE, in
                  effect as of the first business day of the semester as it
                  appears in the closest previous date of the newspaper Cinco
                  Dias.

                  Said payments shall be made by means of money order documents
                  (promissory notes, bills of exchange or similar) signed
                  jointly by all the buyers or by each one in the corresponding
                  proportion.



         -        With the transfer to Conusa, at no expense to it, of the
                  shares which the six selling partners possess in ECESA, but
                  completed after having returned to Ecesa their net patrimonial
                  value of 35.5 million pesetas, in which will be included: the
                  Costs of Establishment I; and the Frozen Assets: II 5. -
                  Computer Application; II 8. - Amortizations; III 3. -
                  Utilization and furniture (that which stays in possession of
                  ECESA); y III 7. - Amortizations, according to the closing
                  balance on 10/30/00 and according to the control to be agreed
                  upon by the corresponding inventory parties.

                  In addition, it is agreed that for the purpose of making the
                  composition of shares of the different companies clearer,
                  Pedro Pablo Errazuriz Ossa shall transfer to ADC, at no cost
                  to it, those shares in ECESA which he possesses (the
                  equivalent of 2,000,000 Ptas.) & Mr. Ignacio Montalban shall
                  authorize Pedro Pablo Errazuriz Ossa to sell or put in his
                  name those shares which he acquired for him in the Pink Sheets
                  market and he declares void his promise to transfer 115,000
                  shares in Conusa to him which is evident on the reserve side
                  of the photocopy of the deed to 2,300,000 shares which are the
                  property of Pedro Pablo Errazuriz.

                  The non-materialization of the above-mentioned agreement shall
                  not stop or impede the execution of the remaining agreements
                  of this contract and its materialization is not necessary for
                  their validity.

         FOURTH - In order for the previous agreements to be valid, it is
necessary that two modifications be made to the assets & liabilities of Ecesa
before the transfer of the Consonni shares:

         1.       The immovable property of Equipos de Control Electrico, S.A.
                  (ECESA), shall be transferred to Construccioones
                  Electromecanicas Consonni, S.A., by means of a trade under the
                  most beneficial conditions to both parties in terms of fiscal
                  & patrimonial reasons, so that its formalization shall come to
                  pass without cash reimbursements to CONSONNI or its
                  shareholders but only through the trade of assets and the
                  elimination of liabilities, it being essential that its
                  departure from the ECESA assets be compensated in such a
                  manner that it shall not suffer a patrimonial loss to its
                  balance. It is agreed that the Tax on the Patrimonial
                  transactions shall be paid in equal parts by both parties up
                  to the corresponding value indicated in the ECESA Balance, and
                  anything over that value (being that it is in the Buyer's
                  interest) shall be paid solely by the Buyers.

         2.       During an eight-month period (which shall be prolonged as long
                  as there are pending invoices by CONSONNI) the buying part of
                  the majority of CONSONNI, shall have the right to have an
                  advisor in ECESA.

         3.       The necessary adjustments between the ECESA & Consonni
                  accounts shall be made in order that the net patrimony of
                  ECESA, not including the deposits made as of June 15 nor the
                  incurred expenses in that partnership by Mr. Civile nor the
                  effects of the transfer of the immovable, reaches 35.5 million
                  pesetas by December 19, 2000, in which shall be included: the
                  Establishment Coses I; & the Frozen Assets; II 5. - Computer
                  Applications; II 8. - Amortizations; III 3. - Utilization and
                  furniture (that



                  which shall remain in the possession of ECESA); & III 7. -
                  Amortizations, according to the closing balance on 10/30/00
                  and according to the control to be established by the
                  corresponding inventory parts.

         The parts shall collaborate in order to bring about the social
arrangements that are necessary for the achievement of these Agreements.

         With this objective, a balance shall be made through December 20, 2000.
All work contracts for personnel of ECESA, except that of Mr. Civile, shall be
terminated, and payments of all indemnifications and/or other expenses that
result or may result from said terminations shall be made, before said date.
Following, CONSONNI shall subscribe a document with ECESA, wherein it commits
itself to leaving it without any damage, expense, economic effect or other
contingencies which may result from the received value by it in payment of
equipment produced by CONSONNI, for the risk of payment that they have. On the
other hand, CONSONNI shall collect from ECESA the corresponding values from it,
only in proportion with the payment of its asset documents that this one should
receive, and it commits to not collect or accelerate the collection of ECESA
with CONSONNI, of the debt of ECESA with CONSONNI, as long as the previously
mentioned payments are not received by ECESA.

         FIFTH - It is established that a series of Agreements with special
relevance shall meet with the explicit consent of CONSONNI USA, INC. or its
representatives or legal successors during a period of three years. The
agreements or societal operations which mandate said conformity are the
following:

         -        Modification of the contractual conditions and compensations
                  of the executives who are, in turn, part of this agreement,
                  except that which is indicated in the Contract between the
                  Company and the Unions, as a universal application clause.

         -        Approval of capital amounts not made in cash. In accordance
                  with the law of Anonymous Societies, the Seller shall have the
                  right to preferential subscription of shares for the 19% of
                  shares that it holds, of any enlargement that is approved by
                  the General Board of Shareholders.

         -        The sale or concession of technologies to third parties.

         -        The installation of business or industry, which creates a
                  conflict of interests.

         -        The associations, functions, absorptions or other formulas of
                  conjunction, which shall have an effect on the respective
                  participations of 81/19.

         -        The negotiations between partners or companies associated with
                  them and Consonni or other companies associated with Consonni.

         -        The sale of shares acquired by virtue of this document,
                  without giving CONSONNI USA, INC. the preference to choose for
                  the projected trade, at equal value and proportion.

         -        Diminution of the number of Board of Advisors.



         SIXTH - The transferred shares shall remain in pledged guarantee in
favor of CONSONNI USA, INC. as long as full payment is not reached, producing
the progressive release of the guarantee in so far as the scheduled payments are
made. During this period all political and economic rights over the
corresponding shares shall correspond to and be executed by the Buyers, except
in that which is expressly accounted for in this agreement.

         SEVENTH - At the request of any of the shareholders of Construcciones
Electromecanicas Consonni, S.A. there may be established a first refusal
agreement in the acquisition of shares, which restricts the free trade of shares
by said Society, through the corresponding statutory pact. Any decision with
respect to this must be notified by the 31st of March of 2001, whereby if it is
not done before, it shall be understood that the existing system of trading
share will remain effective.

         EIGHTH - The parts declare that they authorize the Buyers to declare,
through exclusive decision, dividends which shall be paid to all the partners in
order that they dispose of the necessary funds which correspond to their 81% to
pay one, all or any of the convened estimates. Alternatively, a decision may be
sought by all parties to search for a formula which will involve a third party,
such as Coficomex, which may be able to produce a solution which is less
tributarally grievous.

         NINTH - The Buyers declare that with the execution and realization of
this agreement, they have nothing to demand of Mr. Errazuriz or his linked
companies, in so far as all previous agreements become void and are substituted
by the provisions and obligations found in this one.

         Failure to comply with the clauses of this contract voids the transfer
of the shares hereby indicated, for the indisbursed amount.

         Notwithstanding, in so far as this Agreement is not executed, thereby
materializing the aforementioned transactions, the December 1999 Annex to the
Record shall remain in effect.

         Once these transactions are brought into effect before a Notary Public
said Annex or any other pre-existing pacts would no longer be effective.

         As proof of conformity with that which precedes, the parts sign the
present document seven-fold, in the place and date indicated in the heading.



                  COMPRAVENTA DE ACCIONES, CESION DE DERECHOS,
               COMPROMISOS DE MODIFICACIONES SOCIALES Y CAMBIOS EN
                SALDOS DEUDORES ENTRE C.E. CONSONNI S.A. Y ECESA

         En Bilbao, a doce de Diciembre de dos mil


         REUNIDOS:

De una Parte:              D. Ignacio Montalban Goicoechea, mayor de edad, con
                           domicilio en Bilbao (Vizcaya), Gran Via no. 82,
                           D.N.I. no. 14.862.649.
                           D. Jose Antonio Goicoechea Arana, mayor de edad, con
                           domicilio en Valle de Trapaga (Vizcaya), calle 1 de
                           Mayo no. 22, D.N.I. no 14.683.304
                           D. Javier Arribas Moso, mayor de edad, con domicilio
                           en Getxo (Vizcaya), calle Paulino Mendivil no.15,
                           D.N.I. no. 4.758.113.
                           D. Jose Ignacio Carrasco Elguezabal, mayor de edad,
                           con domicilio en Bilbao (Vizcaya), calle Rodriguez
                           Arias, no. 27, D.N.I. no. 14.504.285.
                           D. Javier Elorriaga Llona, mayor de edad, con
                           domicilio en Getxo (Vizcaya), Particular de Club, no.
                           2, D.N.I. no. 4.870.028.
                           Dr. Gustavo Sarachaga Ruiz, mayor de edad, con
                           domicilio en Durango (Vizcaya), called Erniodo, no.
                           15, D.N.I. no. 78,866,672.
Y, de otra:                D. Horacio Carlos Civile, de nacionalidad sueca,
                           mayor de edad, vecino de Bilbao (Vizcaya), called
                           Maximo Aguirre no. 11 bis, con pasaporte sueco
                           vigente no. 09642936

INTERVIENEN:

A)       Los seis primeros comparecientes en su propio nombre y derecho (en
         adelante los Compradores.

B)       D. Horacio Carlos Civile en representacion de la Compana Mercantil
         CONSONNI USA INC., (en adelante la Vendedora), debidamente facultado
         para este Acto, en virtud de Acuerdo del Consejo de Administracion de
         dicha Sociedad, de fecha 17 de Octubre de 2.000, que se une como Anexco
         no. 1.

         Las partes comparecientes reconociendose reciprocamente con capacidad
         para obligarse



                                     EXPONEN

I.       Que los aqui comparecientes representan el 100% del capital social de
         CONSTRUCCIONES ELECTROMECANICAS CONSONNI, S.A., que originalmente
         ascendia a trescientos cincuenta millones de pesetas (350,000,000,-
         Ptas.), representado por treinta y cinco mil (35,000) acciones, numeros
         1 a 35,000 ambos inclusive, de diez mil (10,000) pesetas de valor
         nominal cada una, de las que se desembolso el 39% del importe original
         total, es decir la cantidad de 136,500,000 Ptas.

II.      Que con fecha 11 de Diciembre de 2000, se reunio la Junta General
         Universal Extraordinaria de accionistas y decidio reducir el capital
         social a lo ya desembolsado por los socios con lo que el capital social
         de Construcciones Electromecanicas Consonni S.A. asciende en la
         actualidad a ciento treinta y seis millones quinientas mil pesetas
         totalmente pagadas.

III.     Que los Compradores desean adquirir un 69% de las acciones de CONSONNI
         propiedad de la Vendedora, y esta desea transmitirlas, lo que se lleva
         a cabo de conformidad con las siguientes.

                                 ESTIPULACIONES

         PRIMERA - La Vendedora transmite 24.150 acciones numeros 6.651 a 30.800
(69% del capital social) a los Compradores por el precio alzado de DOSCIENTOS
NUEVE MILLONES DE PESETAS (209,000,000, -Ptas.).

         SEGUNDA - Consecuentemente con lo pactado en la estipulacion anterior,
las participaciones resultantes de CONSTRUCCIONES ELECTROMECANICAS CONSONNI,
S.A. seran las siguientes:

         Los compradores:           81%
         La Vendedora:              19%

         La participacion de cada uno de los Compradores en esta compraventa
sera finalmente la que resulte de los acuerdos que ellos determinen, que se
concretara en la elevacion a publico de la misma ante fedatario mercantil, lo
que se llevara a cabo antes del 19 de Ciciembre del 2.000.

         TERCERA - El pago del precio pactado de doscientos nueve millones de
pesetas (209,000,000 Ptas.) se realizara como sigue:

o        Cincuenta millones de pesetas (50.000.000,- Ptas.) al contado, lo que
         se materializara con a) Quince millones de pesetas (15.000.000,- Ptas)
         en el momento de formalizacion a publica de esta compraventa, o sea
         antes del 19 de Diciembre, y b) el monto de Treinta y cinco millones de
         pesetas (35.000.000,- Ptas) antes del 9 de Enero de 2001.

o        El resto, es decir, la cantidad de ciento cincuenta y nueve millones de
         pesetas aplazado en cinco (5) anos, mediante diez pagos semestrales
         vencidos, el primero de quince



         (15) millones de pesetas con vencimiento al 20 de Junio de 2001 y los
         restantes nueve de dieciseis (16) millones de pesetas cada uno,
         instrumentado dichos pagos mediante documentos de giro (pagares o
         letras de cambio o similar a satisfaccion de los vendedores), firmados
         a favor de Consonni USA INC. por los Compradores ante Notario y con
         vencimientos los dias 20 de Junio y 20 de Diciembre de cada ano segun
         corresponda. Consonni USA Inc., si lo desea, podra indicar un nombre de
         beneficiario de esos documentos distinto del propio, mediante
         comunicacion escrita y firmada a satisfaccion de los aceptantes. A cada
         pago semestra se le agregara el interes correspondiente al saldo
         insoluto, durante los seis meses precedentes.

         El aplazamiento devengara un interes del tipo de interes para Credito
         llamado TIPO DE INTERVENCION DEL BANCO CENTRAL EUROPEO, vigente el
         primer dia habil del semestre como aparezca publicado en el diario
         CincoDias mas proximo posterior a esa fecha.

         Dichos pagos se instrumentaran mediante documentos de giros (Pagares,
         letras de cambio o similar) firmados por todos los compradores en
         conjunto, o por cada uno de ellos en la proporcion que les
         correspondan.

o        Con la transferencia a Conusa, sin costo para ella, de las acciones que
         los seis socios vendedores poseen en ECESA, pero realizada despues de
         haber devuelto a ECESA su valor patrimonial neto de 35,5 millones de
         pesetas, en el que estaran incluidos: los Gastos de Establecimiento I;
         y los Activos Inmovilizados: II 5; Applicaciones Informaticas; II 8. -
         Amortizaciones; III 3.- Utillaje y mobiliario (la parte que quede en
         poder de ECESA); y III 7.- Amortizaciones, segun el balance cerrado al
         30/10/00, y segun el control a efectuar acordado entre las partes del
         inventario correspondiente.

Adicionalmente se conviene que, para hacer mas clara la composicion accionaria
de las distintas empresas, que Pedro Pablo Errazuris Ossa transferira a ADC, sin
costo para ella, las acciones que el posee en ECESA (equivalentes a Ptas.
2.000.000) y Don Ignacio Montalban autorizara a Pedro Pablo Errazuriz Ossa a
poner a su nombre o vender las acciones de Conusa que este declara haber
adquirido para el en el mercado de Ink Sheets y le devuelve y declara nula su
promesa de transferirle 115.000 acciones de Conusa que consta al dorso de la
fotocopia del titulo de 2.300.000 acciones de propiedad de Pedro Pablo
Errazuriz.

La no-materializacion oportuna de los acuerdos del parrafo precedente no
detendra ni impedira la ejecucion del resto de los acuerdos de este convenio y
su materializacion no es esencial para que ellos sean validos.

         CUARTA - Para que los acuerdos anteriores sea validos es nececasio que
con anterioridad a la transferencia de las acciones de Consonni se de curso a
dos modificaciones de los activos y pasivos de ECESA:

         1.       El inmueble propiedad de Equipos de Control Electrico, S.A.
                  (ECESA), se aportara a Construcciones Electromecanicas
                  Consonni, S.A. mediante compraventa en las condiciones que
                  sean mas beneficiosas para que las partes atendiendo a razones



                  fiscales y patrimoniales, de manera que su formalizacion se
                  realice sin desembolsos en efectivo para CONSONNI ni para sus
                  accionistas sino con intercambios de activos o elimininacion
                  de pasivos, siendo esencial que su salida de los activos de
                  ECESA sea compensada de tal modo que esta no sufra detrimento
                  patrimonial en su balance. Se acuerda que el impuesto a las
                  transacciones Patrimoniales, sera pagado a partes iguales
                  entre las dos partes, hasta el valor correspondiente al
                  indicado en el Balance de ECESA, y por encima del mismo valor
                  (de ser de interes de los compradores) sera pagado totalmente
                  por los compradores.

         2.       Durante un periodo de ocho meses (periodo que sera prorrogable
                  mientas existan facturar pendientes de cobro por parte de
                  CONSONNI), la parte compradora de la mayoria de Consonni,
                  tendra derecho a tener un consejero en ECESA.

         3.       Se haran los ajustes necesarios entre las Cuentas de ECESA y
                  Consonni para que el patrimono neto de ECESA, sin contar los
                  aportes realizados desde el 15 de Junio ni los gastos
                  incurridos en esa sociedad por el Sr. Civile ni los efectos de
                  la transferencia del inmueble, llegue a 35,5 millones de
                  pesetas al 19 de Diciembre de 2000, en el que estaran
                  incluidos: los Gastos de Establecimiento I.; y los Activos
                  Inmovilizados: II 5.- Aplicaciones Informaticas; II 8.-
                  Amortizaciones; III 3.- Utillaje y mobiliario (la parte que
                  quede en poder de ECESA); y III 7.- Amortizaciones, segun el
                  balance cerrado al 30/10/00 y segun el control a efectuar
                  acordado entre las partes del inventario correspondiente.

         Las partes colaboraran para llevar a cabo todos los acuerdos sociales
que sean necesarios para el cumpliento de estos Acuerdos.

         Con este objeto, se hara un balance al 30 de Diciembre de 2000. Antes
de esta fecha, se habra dado termino a cualquier contrato de trabajo de personal
de ECESA, excepto al del Sr. Civile, y se habran pagado las indemnizaciones y /
o los otros costos que su termino haya podido, o pueda provocar. A continuacion
CONSONNI suscribira un documento con ECESA, comprometiendose a dejarla indemne
de cualquier dano, costo, efecto economico u otras contingencias que puedan
provenir de los valores recibidos por esta en pago de los equipos fabricados por
CONSONNI, por el riesgo de pago que ellos tienen. Por su parte CONSONNI cobrara
de ECESA los valores que le correspondan recibir de ella, solo en la proporcion
que esta reciba el pago de los documentos de su activo, y se compromete a no
cobrar ni acelerar la cobranza de ECESA con CONSONNI, de las deudas de ECESA con
CONSONNI, mientras los pagos senalados antes no hayan sido recibidos por ECESA.

         QUINTA - Se establece que una serie de Acuerdos de especial relevancia
deberan contar con el consentimiento explicito de CONSONNI USA INC., o de sus
representantes o sucesores legales durante el plazo de tres anos. Los acuerdos u
operaciones societarias que exigen dicha conformidad son los siguientes:

         o        Modifacion de las condiciones de contratacion y compensaciones
                  de los ejecutivos que son a la vez parte de este acuerdo,
                  salvo lo indicado en los Convenios de la Empresa con los
                  Sindicatos, como clausula de aplicacion universal.



         o        Aprobacion de aumentos de capital que no se efectuen al
                  contado. El vendedor tendra derecho de acuerdo con la ley de
                  Sociedades Anonimas a la suscripcion preferente de acciones
                  por el 19% de acciones que ostenta, de cualquier ampliacion
                  que sea aprobada por la Junta General de Accionistas.

         o        Venta o cesion de tecnologias a terceros.

         o        La instalacion de negocios o industrias que tengan conflictos
                  de intereses.

         o        Las asociaciones, funciones, absorciones u otras formulas de
                  union de empresas que afecten a las participaciones
                  respectivas del 81/19.

         o        Las negociaciones entre socios o empresas relacionadas con
                  ellos con Consonni o con otras empresas relacionadas con
                  Consonni.

         o        La venta de acciones adquiridas por virtud de este documento,
                  sin dar a CONSONNI USA INC la preferencia de optar a la
                  compraventa proyectada, a igual valor y proporcion.

         o        Disminucion del numero de Consejeros del Consejo.

         SEXTA - Las acciones transmitidas quedaran en garantia prendaria a
favor de CONSONNI USA INC. hasta tanto no se la haya pagado la totalidad del
precio, produciendose la liberacion progresiva de la garantia en la medida de
que los hitos de pagos vayan cumpliendose. Duranto dicho periodo todos los
derechos politicos y economicos sobre las acciones corresponderan y seran
ejercitados por los Compradores, salvo en lo expresamente senalado en este
acuerdo.

         SEPTIMA - A opcion de cualquiera de los accionistas de Construcciones
Electromecanicas Consonni, S.A. podra establicerse un sistema de preferencia en
la adquisicion de acciones (first refusal agreement) que restringe la libre
transmision de las acciones de aquella Sociedad, mediante el correspondiente
pacta estatutario. Cualquier decision al respecto debe notificarse antes del 31
de Marzo de 2.001, de manera que si no se hiciera antes, se entenderia que rige
el sistema actual de transferencia de acciones.

         OCTAVA - Las partes declaran que autorizan a los compradores para que
por decision exclusiva de ellos puedan declarar dividendos que se pagaran a
todos los socios de modo de disponer de los fondos necesarios con lo que
corresponde a su 81% para pagar una, todas o cualquiera de las cuotas
convenidas. Alternativamente podra buscarse por decision de las partes una
formula que involucre a un tercero como Coficomex que pueda producir una
solucion menos gravosa tributariamente.

         NOVENA - Los compradores declaran que con la ejecucion y cumplimiento
de este Acuerdo no tienen nada que reclamar al Sr. Errazuris ni a sus empresas
vinculadas, de manera que quedan



sin effecto todos los acuerdos anteriores que son sustituidos por las
previsiones y obligaciones que se contienen en este.

         El incumplimiento de las clausulas de este contrato, deja sin efecto
las transferencias de acciones aca indicadas, por la parte no desembolsada.

         No obstante, en tanto no se ejecute este Acuerdo materializando las
transmisiones previstas en el mismo, se mantiene en vigor el Anexo al Acta de 22
de Diciembre de 1.999.

         Una vez efectuadas las transmisiones ante fedatario publico quedara sin
efecto dicho Anexo y cualesquiera otros pactos preexistentes.

         En prueba de conformidad con cuanto antecede, firman las partes el
presente documento por septuplicado, en el lugar y fecha expresados en el
encabezamiento.

                                           

By: /s/ Ignacio Montalban Goicoechea          By: /s/ Ignacio Montalban Goicoechea
   ---------------------------------------       ----------------------------------------------
    Mr. Ignacio Montalban Goicoechea              Mr. Jose Antonio Goicoechea Arana


By: /s/ Mr. Javier Arribas Moso               By: /s/ Mr. Jose Ignacio Carrasco Elguezabal
   ---------------------------------------       ----------------------------------------------
    Mr. Javier Arribas Moso                       Mr. Jose Ignacio Carrasco Elguezabal


By: /s/ Mr. Javier Elorriaga Llona            By: /s/ Mr. Gustavo Sarachaga Ruiz
   ---------------------------------------       ----------------------------------------------
    Mr. Javier Elorriaga Llona                    Mr. Gustavo Sarachaga Ruiz


Consonni USA, Inc.

By: /s/ Mr. Horacio Carlos Civile
   ---------------------------------------
    Mr. Gustavo Sarachaga Ruiz
Its: Chief Executive Officer