among
as U.S. Borrower,
and
as European Borrowers,
as Administrative Agent and as Collateral Agent,
as European Collateral Agent,
as Syndication Agent,
WELLS FARGO FOOTHILL, INC. and
BANK OF AMERICA, N.A.
as Co-Documentation Agents,
as Joint Lead Arrangers and as Joint Bookrunners
Page | ||||||
ARTICLE I | ||||||
DEFINITIONS | ||||||
Section 1.01 | Defined Terms | 1 | ||||
Section 1.02 | Types of Loans and Borrowings | 65 | ||||
Section 1.03 | Terms Generally; Currency Translation; Accounting Terms; GAAP | 65 | ||||
Section 1.04 | Resolution of Drafting Ambiguities | 67 | ||||
Section 1.05 | The Term “Borrower” or “Borrowers” | 67 | ||||
ARTICLE II | ||||||
THE CREDITS | ||||||
Section 2.01 | The Revolving Credit Commitments | 69 | ||||
Section 2.02 | Borrowing Procedures | 70 | ||||
Section 2.03 | Swing Loans | 71 | ||||
Section 2.04 | Letters of Credit | 74 | ||||
Section 2.05 | Reduction and Termination of the Revolving Credit Commitments | 80 | ||||
Section 2.06 | Repayment of Loans | 80 | ||||
Section 2.07 | Evidence of Debt | 80 | ||||
Section 2.08 | Optional Prepayments | 81 | ||||
Section 2.09 | Mandatory Prepayments of Loans | 81 | ||||
Section 2.10 | Interest | 82 | ||||
Section 2.11 | Conversion/Continuation Option | 84 | ||||
Section 2.12 | Fees | 88 | ||||
Section 2.13 | Payments and Computations | 89 | ||||
Section 2.14 | Illegality | 93 | ||||
Section 2.15 | Requirements of Law | 93 | ||||
Section 2.16 | Taxes | 94 | ||||
Section 2.17 | Indemnity | 99 | ||||
Section 2.18 | Change of Lending Office | 100 | ||||
Section 2.19 | Sharing of Setoffs | 100 | ||||
Section 2.20 | Assignment of Commitments Under Certain Circumstances | 100 | ||||
Section 2.21 | Notice of Certain Costs | 101 | ||||
ARTICLE III | ||||||
REPRESENTATIONS AND WARRANTIES | ||||||
Section 3.01 | Organization, etc | 101 | ||||
Section 3.02 | Due Authorization, Non-Contravention, etc | 102 | ||||
Section 3.03 | Government Approval, Regulation, etc | 102 |
i
Page | ||||||
Section 3.04 | Validity, etc | 103 | ||||
Section 3.05 | Financial Information | 103 | ||||
Section 3.06 | No Material Adverse Effect | 103 | ||||
Section 3.07 | Litigation | 104 | ||||
Section 3.08 | Compliance with Laws and Agreements | 104 | ||||
Section 3.09 | Ownership of Subsidiaries | 104 | ||||
Section 3.10 | Ownership of Properties | 105 | ||||
Section 3.11 | Intellectual Property | 106 | ||||
Section 3.12 | Taxes | 106 | ||||
Section 3.13 | Pension and Welfare Plans | 107 | ||||
Section 3.14 | Environmental | 107 | ||||
Section 3.15 | Federal Reserve Regulations | 109 | ||||
Section 3.16 | Disclosure; Accuracy of Information; Pro Forma Balance | |||||
Sheets and Projected Financial Statements | 109 | |||||
Section 3.17 | Insurance | 110 | ||||
Section 3.18 | Labor Matters | 111 | ||||
Section 3.19 | Solvency | 111 | ||||
Section 3.20 | Consummation of the Reorganization Plan and Related Agreements | 111 | ||||
Section 3.21 | Security Documents | 111 | ||||
Section 3.22 | Use of Proceeds | 114 | ||||
Section 3.23 | Anti-Terrorism Laws | 114 | ||||
Section 3.24 | Status as Senior Debt | 114 | ||||
Section 3.25 | Centre of Main Interests and Establishments | 115 | ||||
Section 3.26 | European Trade Accounts Receivable | 115 | ||||
ARTICLE IV | ||||||
CONDITIONS | ||||||
Section 4.01 | Effective Date | 115 | ||||
Section 4.02 | Conditions Precedent to Each Loan and Letter of Credit | 124 | ||||
Section 4.03 | Determinations of Effective Date Borrowing Conditions | 125 | ||||
ARTICLE V | ||||||
AFFIRMATIVE COVENANTS | ||||||
Section 5.01 | Financial Information, Reports, Notices, etc | 126 | ||||
Section 5.02 | Compliance with Laws, etc | 129 | ||||
Section 5.03 | Maintenance of Properties | 129 | ||||
Section 5.04 | Insurance | 129 | ||||
Section 5.05 | Books and Records; Visitation Rights; Lender Meetings | 130 | ||||
Section 5.06 | Environmental Covenant | 131 | ||||
Section 5.07 | Information Regarding Collateral | 132 | ||||
Section 5.08 | Existence; Conduct of Business | 132 | ||||
Section 5.09 | Performance of Obligations | 133 | ||||
Section 5.10 | Casualty and Condemnation | 133 |
ii
Page | ||||||
Section 5.11 | Pledge of Additional Collateral | 133 | ||||
Section 5.12 | Further Assurances | 134 | ||||
Section 5.13 | Use of Proceeds | 134 | ||||
Section 5.14 | Payment of Taxes and Claims | 134 | ||||
Section 5.15 | Additional Guarantors | 135 | ||||
Section 5.16 | Interest Rate Protection | 136 | ||||
Section 5.17 | Post-Closing Covenants | 136 | ||||
Section 5.18 | Designation of Subsidiaries | 136 | ||||
Section 5.19 | Borrowing Base Determinations | 137 | ||||
Section 5.20 | Control Accounts; Approved Deposit Accounts | 138 | ||||
Section 5.21 | Permitted Restructuring | 141 | ||||
Section 5.22 | Certain Properties | 141 | ||||
ARTICLE VI | ||||||
NEGATIVE COVENANTS | ||||||
Section 6.01 | Indebtedness | 142 | ||||
Section 6.02 | Liens | 145 | ||||
Section 6.03 | Fundamental Changes; Line of Business | 150 | ||||
Section 6.04 | Investments, Loans, Advances, Guarantees and Acquisitions | 151 | ||||
Section 6.05 | Asset Sales | 154 | ||||
Section 6.06 | Sale and Leaseback Transactions | 156 | ||||
Section 6.07 | Restricted Payments | 156 | ||||
Section 6.08 | Transactions with Affiliates | 157 | ||||
Section 6.09 | Restrictive Agreements | 157 | ||||
Section 6.10 | Amendments or Waivers of Certain Documents; Prepayments of | |||||
Certain Indebtedness | 159 | |||||
Section 6.11 | Accounting Treatment; Fiscal Year | 159 | ||||
Section 6.12 | Fixed Charge Coverage Ratio | 160 | ||||
Section 6.13 | Hedging Agreements | 160 | ||||
Section 6.14 | Centre of Main Interest | 160 | ||||
Section 6.15 | Assets and Liabilities of SSI | 160 | ||||
Section 6.16 | Assets, Liabilities and Actions of SFC | 161 | ||||
ARTICLE VII | ||||||
EVENTS OF DEFAULT | ||||||
Section 7.01 | Listing of Events of Default | 161 | ||||
Section 7.02 | Action if Bankruptcy | 164 | ||||
Section 7.03 | Action if Other Event of Default | 164 | ||||
Section 7.04 | Actions in Respect of Letters of Credit | 164 |
iii
Page | ||||||
ARTICLE VIII | ||||||
THE AGENTS | ||||||
Section 8.01 | Appointment and Authority | 165 | ||||
Section 8.02 | Agents Individually | 165 | ||||
Section 8.03 | Duties of Agents; Exculpatory Provisions | 166 | ||||
Section 8.04 | Reliance by Agents | 167 | ||||
Section 8.05 | Delegation of Duties | 167 | ||||
Section 8.06 | Resignation of Agents | 168 | ||||
Section 8.07 | Non-Reliance on Agents and Other Lenders | 169 | ||||
Section 8.08 | No Other Duties, etc | 170 | ||||
Section 8.09 | Protective Advances | 170 | ||||
Section 8.10 | Parallel Debt owed to the European Collateral Agent | 170 | ||||
Section 8.11 | Reports | 171 | ||||
Section 8.12 | Security Trust Deed | 172 | ||||
ARTICLE IX | ||||||
MISCELLANEOUS | ||||||
Section 9.01 | Notices | 172 | ||||
Section 9.02 | Survival of Agreement | 175 | ||||
Section 9.03 | Binding Effect | 175 | ||||
Section 9.04 | Successors and Assigns | 176 | ||||
Section 9.05 | Expenses; Indemnity | 179 | ||||
Section 9.06 | Right of Setoff | 181 | ||||
Section 9.07 | Applicable Law | 182 | ||||
Section 9.08 | Waivers; Amendment | 182 | ||||
Section 9.09 | Interest Rate Limitation | 186 | ||||
Section 9.10 | Entire Agreement | 186 | ||||
Section 9.11 | WAIVER OF JURY TRIAL | 186 | ||||
Section 9.12 | Severability | 186 | ||||
Section 9.13 | Counterparts | 187 | ||||
Section 9.14 | Headings | 187 | ||||
Section 9.15 | Jurisdiction; Consent to Service of Process | 187 | ||||
Section 9.16 | Confidentiality | 187 | ||||
Section 9.17 | Posting of Approved Electronic Communications | 188 | ||||
Section 9.18 | Treatment of Information | 189 | ||||
Section 9.19 | USA PATRIOT Act Notice | 191 | ||||
Section 9.20 | Intercreditor Agreement | 191 | ||||
Section 9.21 | No Fiduciary Duty | 192 | ||||
Section 9.22 | Administrative European Borrower as Agent for European Borrowers | 192 | ||||
Section 9.23 | Waiver of Immunity | 193 | ||||
Section 9.24 | Currency of Payment | 193 | ||||
Section 9.25 | Contribution | 194 |
iv
EXHIBIT A | Form of Administrative Questionnaire | |
EXHIBIT B-1 | Form of Notice of Borrowing | |
EXHIBIT B-2 | Form of Swing Loan Request | |
EXHIBIT B-3 | Form of Letter of Credit Request | |
EXHIBIT B-4 | Form of Notice of Conversion or Continuation | |
EXHIBIT C | Form of Assignment and Assumption | |
EXHIBIT D | Form of Compliance Certificate | |
EXHIBIT E | Form of Indemnity, Subrogation and Contribution Agreement | |
EXHIBIT F-1 | Form of European Revolving Credit Note | |
EXHIBIT F-2 | Form of European Swing Note | |
EXHIBIT F-3 | Form of U.S. Revolving Credit Note | |
EXHIBIT F-4 | Form of U.S. Swing Note | |
EXHIBIT G | Form of Closing Certificate | |
EXHIBIT H | Form of Guarantee Agreement | |
EXHIBIT I | Form of Pledge Agreement | |
EXHIBIT J | Form of Security Agreement | |
EXHIBIT K | Form of Exemption Certificate | |
EXHIBIT L | Form of Solvency Certificate | |
EXHIBIT M | Form of Mortgage | |
EXHIBIT N | Form of No-Offset Letter | |
EXHIBIT O | Form of Non-U.S. Guarantee Agreement | |
EXHIBIT P | Form of European Business Pledge | |
EXHIBIT Q | Form of European Pledge on Bank Accounts | |
EXHIBIT R | Form of European Receivables Pledge Agreement | |
EXHIBIT S | Form of Borrowing Base Certificate | |
SCHEDULE 1.01(a) | Immaterial Restricted Subsidiaries | |
SCHEDULE 1.01(b) | Permitted Restructuring | |
SCHEDULE 1.01(c) | Specified Asset Sales | |
SCHEDULE 1.01(d) | Existing Joint Ventures | |
SCHEDULE 1.01(e) | Domestic Lending Office | |
SCHEDULE 1.01(f) | Eurodollar Lending Office | |
SCHEDULE 1.01(g) | European Lending Office | |
SCHEDULE 1.01(h) | Locations of Eligible European Inventory | |
SCHEDULE 1.01(i) | Locations of Eligible U.S. Inventory | |
SCHEDULE 1.01(j) | Mandatory Cost Formula | |
SCHEDULE 1.01(k) | Foreign Account Debtors | |
SCHEDULE 1.01(l) | Form of Tax Status Certificate | |
SCHEDULE 2.01 | Lenders and Commitments | |
SCHEDULE 2.04 | Existing Letters of Credit | |
SCHEDULE 3.05 | Financial Information | |
SCHEDULE 3.09(a) | Subsidiaries | |
SCHEDULE 3.09(b) | Securities | |
SCHEDULE 3.10(a) | Options, Rights of First Refusal, Etc. | |
SCHEDULE 3.10(b) | Leased and Owned Real Property | |
SCHEDULE 3.17 | Insurance |
v
SCHEDULE 4.01(f)(i) | Local and Foreign Counsel Jurisdictions (Pledged Equity Interests) | |
SCHEDULE 4.01(f)(ii) | Local and Foreign Counsel Jurisdictions (Non-U.S. Pledge Agreements and Security Documents) | |
SCHEDULE 4.01(v) | Initial Mortgaged Properties | |
SCHEDULE 4.01(v)(3) | Title Insurance Amounts | |
SCHEDULE 5.17(a) | Post-Closing Covenants | |
SCHEDULE 5.17(b) | Dutch Post-Closing Covenants | |
SCHEDULE 5.21 | Permitted Restructuring Conditions | |
SCHEDULE 5.22 | Certain Properties | |
SCHEDULE 6.01(ii)(A) | Existing Indebtedness | |
SCHEDULE 6.01(ii)(B) | Existing Indebtedness | |
SCHEDULE 6.01(xxi) | Intercompany Notes | |
SCHEDULE 6.02(iv)(A) | Existing Liens | |
SCHEDULE 6.02(iv)(B) | Existing Liens | |
SCHEDULE 6.02(xxvi) | Title Policy Exclusions | |
SCHEDULE 6.04 | Existing Investments | |
SCHEDULE 6.09 | Existing Restrictions |
vi
2
Eurodollar | ||||||||||||
Rate Loans (other | ||||||||||||
Pricing | Monthly | than European | Base Rate | |||||||||
Level | Excess Availability | Loans) | European Loans | Loans | ||||||||
1 | greater than or equal to $275.0 million | 1.50 | % | 1.50%minusthe Applicable Unused Commitment Fee Rate | 0.50 | % | ||||||
2 | greater than or equal to $125.0 million but less than $275.0 million | 1.75 | % | 1.75%minusthe Applicable Unused Commitment Fee Rate | 0.75 | % | ||||||
3 | less than $125 million | 2.00 | % | 2.00%minusthe Applicable Unused Commitment Fee Rate | 1.00 | % |
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575 Maryville Centre Drive
P.O. Box 66760
St. Louis, Missouri 63166-6760
(courier delivers to: 575 Maryville Centre Drive, St. Louis, Missouri
63141)
Attention of: James Tichenor and Rosemary Klein
Telecopier No.: 314-674-2721
E-Mail Address:
Website Address: www.solutia.com
Boondaelse Steenweg 6,
1050 Brussel
Belgium
Parc Scientifique Fleming
Rue Laid Burniat 3
B-1348 Louvain-La-Neuve
Belgium
Telecopier No: + 32 10 48 12 24
Attention of: Legal department
172
575 Maryville Centre Drive
P.O. Box 66760
St. Louis, Missouri 63166-6760
(courier delivers to: 575 Maryville Centre Drive, St. Louis, Missouri
63141)
Attention of: James Tichenor and Rosemary Klein
Telecopier No.: 314-674-2721
E-Mail Address:
Website Address: www.solutia.com
2 Penn’s Way
New Castle, DE 19720
Attention of: Kenneth Rinehimer
Telecopier No.: 212-994-0849
E-Mail Address: Kenneth.Rinehimer@citi.com
2 Penn’s Way
New Castle, DE 19720
Attention of: Brenna Makin
Telecopier No.: 212-994-0849
E-Mail Address: Brenna.Makin@citi.com
2 Penn’s Way
New Castle, DE 19720
Attention of: Kenneth Rinehimer
Telecopier No.: 212-994-0849
E-Mail Address: Kenneth.Rinehimer@citi.com
173
European Loans Agency
5th Floor, Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
�� United Kingdom
Attention of: Alan Green
Telecopier No.: 44 20 7986 8278
E-Mail Address: alan.green@citi.com
388 Greenwich St., 20th Floor
New York, NY 10013
Attention of: David Jaffe
Telecopier No.: 212-816-2613
E-Mail Address: david.jaffe@citi.com
European Loans Agency
5th Floor, Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
United Kingdom
Attention of: Neil Shah
Telecopier No.: 44 208 636 3825
E-Mail Address: neil1.shah@citi.com
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SOLUTIA INC., as U.S. Borrower | ||||
By: | /s/ James A. Tichenor | |||
Name: | James A. Tichenor | |||
Title: | Authorized Officer |
S-1
SOLUTIA EUROPE SA/NV, as a European Borrower | ||||
By: | /s/ Jan Derycke | |||
Name: | Jan Derycke | |||
Title: | Special Proxy Holder |
S-2
FLEXSYS SA/NV, as a European Borrower | ||||
By: | /s/ Anna Aizina | |||
Name: | Anna Aizina | |||
Title: | Special Proxy Holder |
S-3
CITIBANK, N.A., as Administrative Agent, Collateral Agent, U.S. Swing Loan Lender and Lender | ||||
By: | /s/ David Jaffe | |||
Name: | David Jaffe | |||
Title: | Director/Vice President |
S-4
CITIBANK, N.A., as Issuer | ||||
By: | /s/ David Jaffe | |||
Name: | David Jaffe | |||
Title: | Director/Vice President |
S-5
CITIBANK INTERNATIONAL PLC, as European Collateral Agent and as a Lender | ||||
By: | /s/ David Jaffe | |||
Name: | David Jaffe | |||
Title: | Director/Vice President |
S-6
CITIBANK INTERNATIONAL PLC, as European Swing Loan Lender | ||||
By: | /s/ David Jaffe | |||
Name: | David Jaffe | |||
Title: | Director/Vice President |
S-7
CITIGROUP GLOBAL MARKETS INC., as a Joint Lead Arranger and Bookrunner | ||||
By: | /s/ David Jaffe | |||
Name: | David Jaffe | |||
Title: | Authorized Signatory |
S-8
DEUTSCHE BANK AG, NEW YORK BRANCH, as Syndication Agent | ||||
By: | /s/ Marguerite Sutton | |||
Name: | Marguerite Sutton | |||
Title: | Director | |||
By: | /s/ Enrique Landaeta | |||
Name: | Enrique Landaeta | |||
Title: | Vice President |
S-9
DEUTSCHE BANK SECURITIES INC., as a Joint Lead Arranger and Bookrunner | ||||
By: | /s/ Mark E. Funk | |||
Name: | Mark E. Funk | |||
Title: | Managing Director | |||
By: | /s/ Philip N. Saliba | |||
Name: | Philip N. Saliba | |||
Title: | Director |
S-10
GOLDMAN SACHS CREDIT PARTNERS L.P., as a Documentation Agent and as a Joint Lead Arranger and Bookrunner | ||||
By: | /s/ Walter A. Jackson | |||
Name: | Walter A. Jackson | |||
Title: | Authorized Signatory | |||
By: | /s/ Walter A. Jackson | |||
Name: | Walter A. Jackson | |||
Title: | Authorized Signatory |
S-11
GERMAN AMERICAN CAPITAL CORPORATION, as Lender | ||||
By: | /s/ Mark B. Cohen | |||
Name: | Mark B. Cohen | |||
Title: | Managing Director | |||
By: | /s/ Jeffrey Lehocky | |||
Name: | Jeffrey Lehocky | |||
Title: | Managing Director | |||
S-12
GOLDMAN SACHS CREDIT PARTNERS L.P., as Lender | ||||
By: | /s/ Bruce H. Mendelsohn | |||
Name: | Bruce H. Mendelsohn | |||
Title: | Authorized Signatory |
S-13
FIFTH THIRD BANK, as Lender | ||||
By: | /s/ Robert M. Sander | |||
Name: | Robert M. Sander | |||
Title: | Vice President |
S-14
UPS CAPITAL CORPORATION, as Lender | ||||
By: | /s/ John P. Holloway | |||
Name: | John P. Holloway | |||
Title: | Director of Portfolio Management |
S-15
WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL), as Lender | ||||
By: | /s/ Barry Felker | |||
Name: | Barry Felker | |||
Title: | Vice-President |
S-16
WELLS FARGO FOOTHILL, LLC, as Lender | ||||
By: | /s/ Yelena Kravchuk | |||
Name: | Yelena Kravchuk | |||
Title: | Vice President |
S-17