Owens Corning Sales (OWENQ) 10-K 2002 FY Annual report

IN THE UNITED STATES BANKRUPTCY COURTFOR
THE DISTRICT OF DELAWARE

IN RE:	: :	Chapter 11
OWENS CORNING, et al.,	: :	Case No. 00-03837 (JKF)
Debtors.	: :	Jointly Administered
______________________________________	: :	______________________________________
OWENS CORNING, et al.,	: :
Plaintiffs,	: :
v.	: :	Adv. Pro. No. 00-1575 (JKF)
CREDIT SUISSE FIRST BOSTON, et al.,	: :
Defendants.	: :	Related to NIBS Docket Nos. 47, 50, 54 and 55

STIPULATION AND ORDER TO AMEND
THE STANDSTILL AND WAIVER AGREEMENT

        WHEREAS, on May 30, 2001, the Debtors presented to the Court their Motion For Order Under 11 U.S.C. §§105(a), 362(a) and 363, and Fed. R. Bankr. P. 6004, 7065 and 9019 (I) Authorizing The Debtors To Enter Into, And To Take All Necessary Or Appropriate Action To Effectuate The Terms Of, A Standstill And Waiver Agreement With Certain Of The Defendants, (II) Terminating The Temporary Restraining Order Entered With Respect to Certain Defendants, (III) Dismissing This Adversary Proceeding With Respect To Certain Defendants, (IV) Authorizing The Debtors To Compromise And Settle Setoff Rights Asserted By The Defendants And Terminating The Stay Of 11 U.S.C. §362(a) With Respect To Certain Setoff Rights, And (V) Releasing, Discharging and Waiving Certain Claims of Defendants (the “Motion”) (NIBS Docket No. 47);

        WHEREAS, at the hearing on June 19, 2001 (the "Hearing"), the Court granted the relief requested in the Motion (NIBS Docket No. 55);

        WHEREAS, the Standstill and Waiver Agreement (the “Standstill Agreement”) provides that the Standstill Agreement can be amended if the amendment is in writing and signed by the Lenders¹ constituting the Majority Banks and each Debtor and Non-Debtor whose interest will be affected by such amendment;

        WHEREAS, the parties now wish to amend the Standstill Agreement; and

        WHEREAS,the parties do not object to the approval of this Stipulation and Order by the Court.

        NOW THEREFORE, the parties by their respective counsel, hereby agree and stipulate that the Standstill Agreement shall be amended as set forth in Amendment No. 1 attached hereto asExhibit A.

Dated: November ____, 2002

________________________________________
One of the Attorneys for Owens Corning,etal.

Norman L. Pernick, Esquire (No. 2290)
J. Kate Stickles, Esquire (No. 2917)
SAUL EWING LLP
222 Delaware Avenue, Suite 1200
P.O. Box 1266
Wilmington, DE 19899
(302) 421-6800
(302) 421-5865

Charles O. Monk, II, Esquire
Edith K. Altice, Esquire
SAUL EWING LLP
100 South Charles Street
Baltimore, MD 21201
(410) 332-8600
(410) 332-8862

Attorneys for Owens Corning,etal.

________________________________________
One of the Attorneys for
Credit Suisse First Boston, Agent

Mark D. Collins, Esquire (No. 2981)
Daniel J. DeFranceschi, Esquire (No. 2732)
RICHARDS LATYON & FINGER, P.A.
One Rodney Square
P.O. Box 551
Wilmington, DE 19899
(302) 651-7531
(302) 658-6548

Kenneth H. Eckstein, Esquire
Gary M. Becker, Esquire
KRAMER LEVIN NAFTALIS & FRANKEL LLP
919 Third Avenue
New York, NY 10022
(212) 715-9229
(212) 715-9377

Attorneys For Credit Suisse First Boston, Agent

SO ORDERED, this _____ day of November, 2002.

________________________________________
The Honorable Judith K. Fitzgerald
U.S. Bankruptcy Court

EXHIBIT A

EXECUTION C OPY

AMENDMENT NO. 1
DATED AS OF NOVEMBER __, 2002

TO

STANDSTILL AND WAIVER AGREEMENT
DATED AS OF JUNE 19, 2001

        This Amendment No. 1 dated as of November __, 2002 (the “Amendment”) is to the Standstill and Waiver Agreementdated as of June 19, 2001 (the “Agreement”) among Owens Corning, the other Debtors, the Non-Debtors parties to the Agreement, the Bank Lenders parties to the Agreement and Credit Suisse First Boston, as Agent (collectively, the “Parties”). Terms defined in the Agreement will have the same meanings when used in this Amendment, unless otherwise provided in this Amendment.

        NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the Parties agree as follows:

        1.    Revision of the Standstill Period. The definition of “Standstill Period” in Section 1(a) of the Agreement is deleted in its entirety and replaced with the following:

        The term “Standstill Period” means the period from the date on which the conditions set forth in Section 5 below have been satisfied until the earliest to occur of (i) a termination due to an Event of Default (as described in Section 7 below), or (ii) the date which is forty-five (45) days after written notice of intention to terminate the Agreement has been given to Owens Corning or the Agent as provided in Section 13 of the Agreement.

        2.    Agent’s Approval of Proposed Amendments to the DIP Loan Agreement. Pursuant to Section 6(l) of the Agreement, the Agent approves the amendments proposed by Owens Corning (i) of any provision of Article 7 of the DIP Loan Agreement or (ii) to the definition of the terms “Debt,” “Lien,” “Permitted Lien” or “Distribution” under the DIP Loan Agreement.

        3.    Events of Default. The following shall not constitute an event of default under Section 7 of the Agreement (i) the adversary proceeding commenced on October 3, 2002 captioned “Owens Corning, et al. v. Credit Suisse First Boston, et al.,” Adv. Proc. No. A-02-05829, or any other amendment thereto, or (ii) the appointment of a limited purpose trustee or examiner relating to the investigation or prosecution of avoidance or fraudulent conveyance actions in the Cases.

        4.    Agreement Continues. Except as expressly modified by this Amendment, the Agreement shall remain in full force and effect.

        5.    Limited Consent to Representation. In order to avoid unnecessary expense for the Debtors’ estates, Lenders agree that Debtors’ and Non-Debtors’ interests regarding this Amendment may be represented by Debtors’ counsel, and Lenders waive any rights to object to such representation solely for such purpose (and solely on the basis of potential conflicts of interest between Debtors and Non-Debtors; all other rights being expressly reserved).

        6.    Authority. Each individual executing this Amendment on behalf of any Lender, Debtor or Non-Debtor, respectively, warrants and represents that he or she is fully authorized to execute this Amendment in the capacities listed herein and has been duly authorized by such Lender, Debtor or Non-Debtor, respectively, to execute this Amendment. Additionally, the Agent warrants and represents that the Agent, the Majority Banks, and, if and to the extent applicable, the Belgian Lending Bank, the Swing Line Bank and any Issuing Bank (as such terms are defined in the Credit Agreement) have executed this Amendment.

        7.    Successors and Assigns. This Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors, assigns and any other party participating in any Lender’s interest pursuant to Section 13.09 of the Credit Agreement.

        8.    Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

        9.    Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

        10.    Entire Agreement. The Agreement, as amended by this Amendment, is the entire agreement among Owens Corning, the Debtors, the Non-Debtors, the Lenders and CSFB, as Agent, with respect to the subject matter hereof and as so amended, supercedes all prior agreements, representations and understandings, if any, relating to the subject matter hereof.

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

Owens Corning, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

CDC Corporation, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Engineered Yarns America, Inc., a Debtor

By:_________________________
      Name:
      Title: authorized signatory

Falcon Foam Corporation, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Integrex, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Fibreboard Corporation, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Exterior Systems, Inc., a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

INTEGREX Ventures LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

INTEGREX Professional Services LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

INTEGREX Supply Chain Solutions LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

INTEGREX Testing Systems LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

HOMExperts LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Jefferson Holdings, Inc., a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas Technology Inc.,
a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning HT, Inc., a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Overseas Holdings Inc., a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Remodeling Systems, LLC, a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

Soltech, Inc., a Debtor

By:_________________________
      Name:
      Title: Authorized Signatory

IPM, Inc., a Non-Debtor Guarantor

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Fiberglas Sweden, Inc.,
a Non-Debtor Guarantor

By:_________________________
      Name:
      Title: Authorized Signatory

Vytec Corporation, a Non-Debtor Guarantor

By:_________________________
      Name:
      Title: Authorized Signatory

European Owens-Corning Fiberglas S.A.,
a Non-Debtor Borrower

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Canada Inc.,
a Non-Debtor Borrower and
a Bilateral Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Capital Holdings I, Inc.,
a Consenting Subsidiary

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Capital Holdings II, Inc.,
a Consenting Subsidiary

By:_________________________
      Name:
      Title: Authorized Signatory

LMP Impianti Srl, a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

OC (Belgium) Holdings, Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

OC Celfortec Inc., a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

O.C. Funding B.V.,
a Consolidated IPM Affiliate and
a Bilateral Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Argentina Sociedad de
Responsabilidad Limitada,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Composites Italia S.r.l.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas Deutschland GmbH,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas A.S. Limitada,
a Consolidated IPM Affiliate and
a Bilateral Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas S.A.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Cayman Limited,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning (Japan) Ltd.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning VF Holdings, Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning NRO Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Korea,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning (Singapore) Pte Ltd.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Espana SA,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Building Materials Espana, S.A.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas Espana, S.A.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning Australia Pty. Limited,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas France S.A.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Veil Netherlands B.V.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Fiberglas Norway A/S,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning FSC, Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens-Corning Holdings Limited,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Owens Corning NRO II Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

EPS Holding AS,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Engineered Pipe Systems, Inc.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Flowtite Offshore Services Ltd.,
a Consolidated IPM Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

NORSKE EPS BOT AS,
a Consolidated IPM Affiliate and
a Bilateral Affiliate

By:_________________________
      Name:
      Title: Authorized Signatory

Credit Suisse First Boston

By:_________________________
      Name:
      Title: Authorized Signatory

Credit Suisse First Boston Distressed Trading

By:_________________________
      Name:
      Title: Authorized Signatory

AG Capital Funding Partners, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Silver Oaks & Co. L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Arab Bank PLC

By:_________________________
      Name:
      Title: Authorized Signatory

Bank of America

By:_________________________
      Name:
      Title: Authorized Signatory

Bank of Tokyo Mitsubishi Ltd.

By:_________________________
      Name:
      Title: Authorized Signatory

Bank One, N.A.

By:_________________________
      Name:
      Title: Authorized Signatory

Barclays Bank PLC

By:_________________________
      Name:
      Title: Authorized Signatory

Bear, Stearns & Co., Inc.

By:_________________________
      Name:
      Title: Authorized Signatory

Brencourt Distressed Sec Master

By:_________________________
      Name:
      Title: Authorized Signatory

Cargill Financial Services International

By:_________________________
      Name:
      Title: Authorized Signatory

CIC - Union Europeenne

By:_________________________
      Name:
      Title: Authorized Signatory

Continental Casualty Co.

By:_________________________
      Name:
      Title: Authorized Signatory

Credit Agricole Indosuez

By:_________________________
      Name:
      Title: Authorized Signatory

Credit Lyonnais

By:_________________________
      Name:
      Title: Authorized Signatory

D.E. Shaw Laminar Portfolio

By:_________________________
      Name:
      Title: Authorized Signatory

Deutsche Bankers Trust

By:_________________________
      Name:
      Title: Authorized Signatory

Dexia Bank

By:_________________________
      Name:
      Title: Authorized Signatory

DK Acquisition Partners, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Fernwood Associates, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Foothill Partners IV, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Franklin Mutual Advisors

By:_________________________
      Name:
      Title: Authorized Signatory

GE Capital Commercial Finance

By:_________________________
      Name:
      Title: Authorized Signatory

Grayson & Co.

By:_________________________
      Name:
      Title: Authorized Signatory

Goldentree Hi Yield Val Master

By:_________________________
      Name:
      Title: Authorized Signatory

Goldman Sachs Credit Partners L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Greenwich

By:_________________________
      Name:
      Title: Authorized Signatory

HBK Master Fund

By:_________________________
      Name:
      Title: Authorized Signatory

Halcyon Restructuring Fund, LP

By:_________________________
      Name:
      Title: Authorized Signatory

Instituto Bancario San Paolo

By:_________________________
      Name:
      Title: Authorized Signatory

JP Morgan Chase Bank

By:_________________________
      Name:
      Title: Authorized Signatory

KD Distressed & High Income Sec

By:_________________________
      Name:
      Title: Authorized Signatory

Kensington International Limited, Elliott
International Capital Advisors, Inc. as Attorney-in-Fact

By:_________________________
      Name:
      Title: Authorized Signatory

King Street Capital Management L.L.C.

By:_________________________
      Name:
      Title: Authorized Signatory

Lehman Commercial Paper Inc.

By:_________________________
      Name:
      Title: Authorized Signatory

Loeb Partners Corporation

By:_________________________
      Name:
      Title: Authorized Signatory

Longacre Master Fund, Ltd.

By:_________________________
      Name:
      Title: Authorized Signatory

Mainstay Funds

By:_________________________
      Name:
      Title: Authorized Signatory

Merced Partners Limited Partnership

By:_________________________
      Name:
      Title: Authorized Signatory

Merril Lynch, Pierce, Fenner & Smith Inc.

By:_________________________
      Name:
      Title: Authorized Signatory

Morgan Stanley Emerging Markets

By:_________________________
      Name:
      Title: Authorized Signatory

O’Connor Distressed Trading

By:_________________________
      Name:
      Title: Authorized Signatory

Oak Hill Securities Fund, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

Oak Hill Securities Fund II, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory

OZ Master Fund, Ltd.

By:_________________________
      Name:
      Title: Authorized Signatory

OZF Credit Opp Master Fund Ltd.

By:_________________________
      Name:
      Title: Authorized Signatory

OZF Credit Opp Master Fund II

By:_________________________
      Name:
      Title: Authorized Signatory

Royal Bank of Canada

By:_________________________
      Name:
      Title: Authorized Signatory

Satellite Senior Income Fund

By:_________________________
      Name:
      Title: Authorized Signatory

Springfield Associates, LLC, Elliott Associates,
L.P., as Managing Partner

By:_________________________
      Name:
      Title: Authorized Signatory

Societe Generale

By:_________________________
      Name:
      Title: Authorized Signatory

Tensor Endowment Ltd.

By:_________________________
      Name:
      Title: Authorized Signatory

UBS AG

By:_________________________
      Name:
      Title: Authorized Signatory

Wells Fargo Bank, National Association

By:_________________________
      Name:
      Title: Authorized Signatory

York Capital Management, L.P.

By:_________________________
      Name:
      Title: Authorized Signatory