Exhibit 10.1

EXECUTION VERSION

WAIVER

WAIVER, dated as of October 24, 2014 (this “Waiver”), with respect to the
AMENDED AND RESTATED SENIOR SECURED DEBTOR-IN-POSSESSION AND EXIT ASSET-BASED
REVOLVING CREDIT AGREEMENT dated as of April 15, 2014 (as amended by the First
Amendment, dated as of May 12, 2014, and as further amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among MOMENTIVE PERFORMANCE MATERIALS HOLDINGS INC., a Delaware corporation
(“Holdings”), MOMENTIVE PERFORMANCE MATERIALS INC., a Delaware corporation
(“Intermediate Holdings”), MOMENTIVE PERFORMANCE MATERIALS USA LLC, a Delaware
corporation (the “U.S. Borrower”), MOMENTIVE PERFORMANCE MATERIALS GMBH, a
company organized under the laws of Germany (the “Germany Silicone Borrower”),
MOMENTIVE PERFORMANCE MATERIALS QUARTZ GMBH, a company organized under the laws
of Germany (the “Germany Quartz Borrower”), MOMENTIVE PERFORMANCE MATERIALS NOVA
SCOTIA ULC, an unlimited company incorporated under the laws of the Province of
Nova Scotia, Canada (the “Canadian Borrower”; the Canadian Borrower, the Germany
Silicone Borrower, the Germany Quartz Borrower and the U.S. Borrower each a
“Borrower” and collectively the “Borrowers”), the LENDERS party thereto from
time to time, JPMORGAN CHASE BANK, N.A., as administrative agent and collateral
agent for the Lenders, CITIGROUP GLOBAL MARKETS INC. and CREDIT SUISSE
SECURITIES AG, as Syndication Agents, and DEUTSCHE BANK SECURITIES INC., GOLDMAN
SACHS BANK USA and UBS SECURITIES LLC, as Documentation Agents.

WHEREAS pursuant to the Credit Agreement, the Lenders have agreed to make
certain loans and other financial accommodations to the Borrowers;

WHEREAS on the Petition Date, the Debtors filed voluntary petitions in the
Bankruptcy Court for relief, commenced the Chapter 11 Cases under the Bankruptcy
Code and since then have continued in the possession of their assets and in the
management of their businesses pursuant to sections 1107 and 1108 of the
Bankruptcy Code;

WHEREAS the Borrowers intend to exercise the Exit Facility Option in order to
convert the DIP Facility into an Exit Facility substantially concurrently with
the consummation of the Approved Plan of Reorganization; and

WHEREAS the Borrowers have requested that, in connection with the Exit Facility
Conversion, the Credit Agreement be waived and modified in the manner provided
for in this Waiver, and the Lenders party hereto are willing to agree to such
waiver and modification as provided for in this Waiver;

NOW, THEREFORE, in consideration of the premises and mutual covenants contained
herein the parties hereto hereby agree as follows:

 

1. Defined Terms. (a) Capitalized terms used and not defined herein shall have
the meanings given to them in the Credit Agreement.

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(b) For purposes of this Waiver, the following terms shall have the following
meanings:

“Joinder and Release Agreement” means the Joinder and Release Agreement, dated
as of the Exit Facility Conversion Date, among Holdings, New Holdings, the
Administrative Agent and the Collateral Agent, as amended, supplemented or
otherwise modified from time to time.

“New Holdings” means MPM Intermediate Holdings Inc.

 

2. New Holdings Waiver. Subject to the terms hereof, the Lenders hereby agree to
release Holdings on the Plan Effective Date from its guaranties, covenants,
functions, responsibilities, duties, obligations and liabilities under the Loan
Documents; provided that New Holdings shall (a) be the direct parent of
Intermediate Holdings after giving effect to the effectiveness of the Approved
Plan of Reorganization (the “Plan Effective Date”) and (b) assume, pursuant to
the Joinder and Release Agreement (which shall be reasonably satisfactory to the
Collateral Agent), the guaranties, covenants, functions, responsibilities,
duties, obligations and liabilities of Holdings under the Loan Documents. All
references to “Holdings” in the Credit Agreement and the other Loan Documents
shall hereafter mean New Holdings.

 

3. Notice. The Lenders hereby waive (i) the requirement set forth in
Section 4.05(a) of the Credit Agreement for delivery of three Business Days’
prior written notice of the exercise of the Exit Facility Option, and the
Lenders are hereby deemed to have been delivered such notice pursuant to this
Waiver and (ii) the requirement set forth in Section 2.10 of the Credit
Agreement for delivery of any prior notice of the prepayment of any Revolving
Facility Loans, solely with respect to any voluntary prepayment to occur on the
Exit Facility Conversion Date.

 

4. Approved Plan of Reorganization Waiver. Subject to the terms hereof, the
Lenders hereby waive the condition precedent to the Exit Facility Conversion
provided in Section 4.05(c) of the Credit Agreement requiring that the
Confirmation Order be a final non-appealable order and agree that such condition
precedent shall be satisfied if the Bankruptcy Court shall have entered an order
(which order shall be deemed to be the “Confirmation Order” referred to in the
Credit Agreement), reasonably satisfactory to the Administrative Agent,
confirming the Approved Plan of Reorganization in accordance with section 1129
of the Bankruptcy Code, which order shall be in full force and effect, shall not
have been amended, vacated or reversed, shall not be subject to a stay, shall
not discharge or otherwise affect in any way any of the Obligations under the
DIP Facility other than by the payment in full in cash and/or the conversion
into the Exit Facility and shall authorize the Loan Parties to execute and
deliver, as applicable, and perform under all Loan Documents and all other
documents contemplated thereunder, in each case as of the time of the Exit
Facility Conversion. The Lenders and Holdings, New Holdings, Intermediate
Holdings and the Borrowers agree that it shall be an Event of Default under the
Credit Agreement if, following the Exit Facility Conversion, the Confirmation
Order is reversed on appeal or ceases to be in full force and effect.

 

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5. Solvency Certificate. Pursuant to Section 4.05(f) of the Credit Agreement,
the Lenders hereby agree that the Administrative Agent shall receive from the
chief executive officer, chief financial officer, senior vice president or the
treasurer of Intermediate Holdings or another officer of Intermediate Holdings
reasonably acceptable to the Administrative Agent a solvency certificate
substantially in the form of Exhibit B stating that, after giving effect to the
consummation of the Approved Plan of Reorganization on the Exit Facility
Conversion Date, Intermediate Holdings and its Subsidiaries are solvent on a
consolidated basis on such date.

 

6. Opinion. Pursuant to 4.05(g) of the Credit Agreement, the Lenders hereby
agree that the Administrative Agent shall receive a favorable written opinion of
Willkie Farr & Gallagher LLP and/or Paul, Weiss, Rifkind, Wharton & Garrison
LLP, each counsel to the Loan Parties, dated as of the Exit Facility Conversion
Date, addressing such matters with respect to the Exit Facility Conversion as
the Administrative Agent may reasonably request, in form and substance
reasonably satisfactory to the Administrative Agent.

 

7. Security Interests. Pursuant to Section 4.05(h) of the Credit Agreement, the
Lenders and Holdings, New Holdings, Intermediate Holdings and the Borrowers
hereby acknowledge that (i) on the Exit Facility Conversion Date, the
Administrative Agent shall receive a written opinion of counsel to the Loan
Parties, in form and substance reasonably satisfactory to the Administrative
Agent, dated as of the Exit Facility Conversion Date, with respect to the U.S.
Collateral Agreement, the Guarantee Agreement and each of the security
agreements governed by New York law (which opinion, for the avoidance of doubt,
may be covered by the opinion referred to in Section 6 above); and (ii) not
later than 45 days following the Exit Facility Conversion Date (or such later
date as the Administrative Agent may agree in its sole discretion), the Loan
Parties shall provide updated or amended and restated versions of all Security
Documents (other than those provided on the Exit Facility Conversion Date)
necessary to grant, perfect and protect the Liens and security interests created
or purported to be created pursuant to the Final Order, the Confirmation Order
and the Security Documents and that are required to satisfy the Collateral and
Guarantee Requirement, and the Loan Parties shall (x) provide customary
opinions, customary lien search results and UCC and other applicable financing
statements for all applicable jurisdictions of the Loan Parties and (y) pay any
fees or taxes required in connection with the filing of such documents,
instruments or financing statements.

 

8. Perfection Certificate. Pursuant to Section 4.05(s) of the Credit Agreement,
the Lenders hereby agree that the Borrowers and the Loan Parties shall provide a
completed Perfection Certificate, signed by a Responsible Officer of
Intermediate Holdings, together with all attachments contemplated thereby, and
the results of a search of the UCC (or equivalent) filings made with respect to
the Loan Parties in the jurisdictions reasonably required by the Administrative
Agent (to the extent such searches have not been provided on the Exit Facility
Conversion Date) not later than 30 days following the Exit Facility Conversion
Date (or such later date as the Administrative Agent may agree in its sole
discretion).

 

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9. Liens of Cash Flow Loan Documents. The Lenders hereby waive any condition set
forth in Section 4.05(e) and any Default or Event of Default in connection with
the existence of Liens securing Cash Flow Obligations after the Exit Facility
Conversion Date; provided that (i) the Cash Flow Obligations shall be paid in
full on the Exit Facility Conversion Date and (ii) such Liens shall not exist
any later than 45 days after the Exit Facility Conversion Date (or such later
date as the Administrative Agent may agree in its sole discretion).

 

10. Conversions. The Lenders hereby acknowledge and agree that upon the
consummation of the Exit Facility Conversion, each of Momentive Performance
Materials USA LLC and Momentive Performance Materials Worldwide LLC will be
converted into Delaware limited liability companies, and that Intermediate
Holdings and its Subsidiaries may take such actions as are required to effect
such conversions.

 

11. Release. The Borrowers each hereby release the Agent and each of the Lenders
and their respective officers, directors, employees, advisors and agents from
any and all claims, damages or actions against such parties that may have
accrued in favor of any of the Borrowers on or before the date of this Waiver
arising out of or related directly or indirectly to the Loan Documents or the
administration or enforcement thereof or the consummation of any transactions
contemplated thereby.

 

12. No Other Amendments or Waivers; Confirmation. Except as expressly waived or
amended hereby, the provisions of the Credit Agreement are and shall remain in
full force and effect. Nothing herein shall be deemed to entitle the Borrowers
to a consent to, or a waiver, amendment, modification or other change of, any of
the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any Loan Document in similar or different circumstances.
This Waiver shall constitute a Loan Document under the Credit Agreement.

 

13. Representations and Warranties. The Borrowers hereby represent and warrant
to the Agent and the Lenders that, as of the date hereof and after giving effect
to the waivers and amendments contained herein:

(a) no Default or Event of Default has occurred and is continuing;

(b) the execution, delivery and performance by the Borrowers of this Waiver have
been duly authorized by all necessary corporate and other action and do not and
will not require any registration with, consent or approval of, notice to or
action by, any person (including any Governmental Authority) in order to be
effective and enforceable. The Credit Agreement constitutes the legal, valid and
binding obligation of the Borrowers, enforceable against each in accordance with
its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law.

 

14.

Conditions Precedent to Effectiveness. This Waiver shall become effective on the
date on which the Agent shall have received (i) counterparts hereof duly
executed and

 

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  delivered by the Borrowers and the Required Lenders and (ii) reimbursement of
the Agent’s expenses as required by this Waiver that are then due and payable in
accordance with Section 15 below.

 

15. Expenses. The Borrowers agree to pay or reimburse the Agent for its
reasonable and documented out-of-pocket expenses in connection with this
Amendment, including the reasonable fees, charges and disbursements of Simpson
Thacher & Bartlett LLP, counsel for the Agent.

 

16. Governing Law; Counterparts.

(a) This Waiver and the rights and obligations of the parties hereto shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of New York.

(b) This Waiver may be executed by one or more of the parties to this Waiver on
any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. This Waiver may be
delivered by facsimile transmission of the relevant signature pages hereof.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly
executed and delivered by their duly authorized officers as of the day and year
first above written.

[Remainder of page intentionally left blank; signature pages follow.]

 

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JPMorgan Chase Bank, N.A.,

  as Administrative Agent and Collateral Agent

By:    

 

/s/ Neil R. Boylan

  Name:     Neil R. Boylan   Title:     Managing Director

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CITIBANK, N.A.,

as a Lender

By:    

 

/s/ Matthew Paquin

  Name:     Matthew Paquin   Title:     Director & Vice President

 

[Signature Page to Waiver]

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Credit Suisse AG, Cayman Islands Branch

as a Lender

By:      

/s/ Bill O’Daly

  Name:     Bill O’Daly   Title:     Authorized Signatory By:      

/s/ D. Andrew Maletta

  Name:     D. Andrew Maletta   Title:     Authorized Signatory

 

[Signature Page to Waiver]

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DEUTSCHEBANK AG NEW YORK BRANCH,

as a Lender

By:      

/s/ Marcus Tarkington

 

Name:

    Marcus Tarkington  

Title:

    Director By:      

/s/ Lisa Wong

  Name:     Lisa Wong   Title:     Vice President

 

[Signature Page to Waiver]

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GOLDMAN SACHS BANK USA,

as a Lender

By:      

/s/ Michelle Latzom

  Name:     Michelle Latzom   Title:     Authorized Signatory

 

[Signature Page to Waiver]

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ING Capital LLC

as a Lender

By:      

/s/ Jerry L. McDonald

  Name:     Jerry L. McDonald   Title:     Director By:      

/s/ William C. Beddingfield

  Name:     William C. Beddingfield   Title:     Managing Director

 

[Signature Page to Waiver]

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JPMorgan Chase Bank, N.A.,

as a Lender

By:      

/s/ Peter S. Predun

  Name:     Peter S. Predun   Title:     Executive Director

 

[Signature Page to Waiver]

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UBS AG, STAMFORD BRANCH,

as a Lender

By:      

/s/ Lana Gifas

  Name:       Lana Gifas   Title:       Director By:      

/s/ Jennifer Anderson

  Name:       Jennifer Anderson   Title:       Associate Director

 

[Signature Page to Waiver]

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Wells Fargo Principal Lending, LLC,

as a Lender

By:      

/s/ Dennis Ascher

  Name:       Dennis Ascher   Title:       SVP

 

[Signature Page to Waiver]

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MOMENTIVE PERFORMACE MATERIALS HOLDINGS INC. By:  

/s/ George F. Knight

  Name:   George F. Knight   Title:   Senior Vice President and Treasurer
MOMENTIVE PERFORMACE MATERIALS INC. By:  

/s/ George F. Knight

  Name:   George F. Knight   Title:   Senior Vice President and Treasurer
MOMENTIVE PERFORMACE MATERIALS USA LLC By:  

/s/ George F. Knight

  Name:   George F. Knight   Title:   Senior Vice President and Treasurer
MOMENTIVE PERFORMACE MATERIALS GMBH By:  

/s/ George F. Knight

  Name:   George F. Knight   Title:   Geschäftsführer/General Manager MOMENTIVE
PERFORMACE MATERIALS NOVA SCOTIA ULC By:  

/s/ George F. Knight

  Name:   George F. Knight   Title:   Senior Vice President and Treasurer

 

[Signature Page to Waiver]

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MOMENTIVE PERFORMACE MATERIALS QUARTZ GMBH By:  

/s/ George F. Knight

  Name:       George F. Knight   Title:       Geschäftsführer/General Manager

 

[Signature Page to Waiver]