Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) dated as of July 7,
2005, is to that certain Credit Agreement dated as of July 29, 2004 (as amended
and modified from time to time, the “Credit Agreement”), by and among ALBEMARLE
CORPORATION, a Virginia corporation (the “Company”), ALBEMARLE CATALYSTS
INTERNATIONAL, L.L.C., a Delaware limited liability company (the “Borrower”),
THE SUBSIDIARIES OF THE COMPANY FROM TIME TO TIME PARTIES THERETO AND IDENTIFIED
AS “GUARANTORS” ON THE SIGNATURE PAGES HERETO (collectively with the Company,
the “Guarantors”), THE PERSONS FROM TIME TO TIME PARTIES THERETO AND IDENTIFIED
AS “LENDERS” ON THE SIGNATURE PAGES HERETO (the “Lenders”) and BANK OF AMERICA,
N.A., as administrative agent (the “Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Lenders have, pursuant to the terms of the Credit Agreement, made
available to the Borrower and the Guarantors a revolving credit facility and
term loan in the aggregate original principal amount of $750,000,000;

 

WHEREAS, the parties hereto have agreed to amend the Credit Agreement as set
forth herein;

 

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

A. Definitions. Unless the context otherwise requires, capitalized terms used
but not otherwise defined herein shall have the meanings assigned in the Credit
Agreement.

 

B. Amendments.

 

1. The pricing grid appearing in the definition of “Applicable Rate” in Section
1.01 of the Credit Agreement is hereby amended to read as follows:

 

Pricing

Level

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Debt Rating

S&P/Moody’s

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Applicable Rate
for Eurocurrency
Rate Loans
(Revolving

Loans and
Letters of Credit

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Applicable
Rate for
Eurocurrency
Rate Loans

(Term Loan)

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    Applicable
Rate for Base
Rate Loans
(Revolving
Loans)

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Applicable
Rate for
Base Rate
Loans

(Term
Loan)

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Facility

Fee

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  1   BBB+/Baa1or
better   0.425 %   0.525 %   0.000 %   0.000 %   0.100 % 2   BBB/Baa2   0.500 %
  0.625 %   0.000 %   0.000 %   0.125 % 3   BBB-/Baa3   0.575 %   0.750 %  
0.000 %   0.000 %   0.175 % 4   BB+/Ba1   0.925 %   1.250 %   0.000 %   0.250 %
  0.325 % 5   BB/Ba2 or
worse or unrated   1.175 %   1.625 %   0.175 %   0.625 %   0.450 %

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2. The definition of “Revolving Commitment” in Section 1.01 of the Credit
Agreement is hereby amended to read as follows:

 

“Revolving Commitment” means, as to each Revolving Lender, the commitment of
such Lender to make Revolving Loans and to participate in L/C Obligations in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth as such Revolving Lender’s “Revolving Commitment” as set forth on
Schedule 2.01 or in the Assignment and Assumption or other documentation
delivered pursuant to Section 2.01(c) pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

 

3. A new Section 2.01(c) is hereby added to the Credit Agreement to read as
follows:

 

(c) Increases of the Aggregate Revolving Commitments. The Company shall have the
right, upon at least fifteen (15) Business Days’ prior written notice to the
Administrative Agent but without the consent of the Required Lenders, to
increase the Aggregate Revolving Commitments by up to $50,000,000 in the
aggregate in up to five (5) increases, at any time and from time to time after
the Closing Date, subject, however, in any such case, to satisfaction of the
following conditions precedent:

 

(i) the Aggregate Revolving Commitments shall not exceed $350,000,000 without
the consent of the Required Lenders;

 

(ii) no Default shall have occurred and be continuing on the date on which such
increase is to become effective;

 

(iii) the representations and warranties set forth in Article VI shall be true
and correct in all material respects on and as of the date on which such
increase is to become effective, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they shall
be true and correct as of such earlier date, and except that for purposes of
this Section 2.01(c), the representations and warranties contained in
subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 7.01;

 

(iv) such increase shall be in a minimum amount of $10,000,000 (or such lesser
amount as agreed upon by the Company and the Administrative Agent) and in
integral multiples of $1,000,000 in excess thereof;

 

(v) such requested increase shall only be effective upon receipt by the
Administrative Agent of (A) additional commitments in a corresponding amount of
such requested increase from either existing Lenders and/or one or more other
institutions that qualify as an Eligible Assignee (it being understood and
agreed that no existing Lender shall be required to provide an additional
commitment unless it agrees to do so in its sole discretion) and (B)
documentation from each institution providing an additional commitment
evidencing their commitment and their obligations under this Agreement in form
and substance reasonably acceptable to the Administrative Agent;

 

(vi) the Administrative Agent shall have received all documents (including
resolutions of the board of directors of the Company) it may reasonably request
relating

 

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to the corporate or other necessary authority for and the validity of such
increase in the Aggregate Revolving Commitments, and any other matters relevant
thereto, all in form and substance reasonably satisfactory to the Administrative
Agent;

 

(vii) if any Revolving Loans are outstanding at the time of the increase in the
Aggregate Revolving Commitments, the Borrowers shall, if applicable, prepay one
or more existing Revolving Loans (such prepayment to be subject to Section 3.05)
in an amount necessary such that after giving effect to the increase in the
Aggregate Revolving Commitments, each Lender will hold its pro rata share (based
on its Pro Rata Share of the increased Aggregate Revolving Commitments) of
outstanding Revolving Loans; and

 

(viii) the Company shall pay such fees to the Administrative Agent, for the
benefit of the Lenders providing such additional commitments, as mutually agreed
by such Lenders, the Company and the Administrative Agent at the time of such
increase.

 

4. Section 5.02(a) of the Credit Agreement is hereby amended to read as follows:

 

(a) The representations and warranties of the Company and each other Loan Party
contained in Article VI (excluding the representation and warranty contained in
subsection (c) of Section 6.05) or any other Loan Document, or that are
contained in any document furnished at any time under or in connection herewith
or therewith, shall be true and correct on and as of the date of such Credit
Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date, and except that for purposes of this Section
5.02, the representations and warranties contained in subsections (a) and (b) of
Section 6.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 7.01.

 

C. Conditions Precedent. This Amendment shall be and become effective as of the
date hereof (the “Effective Date”) when the Agent shall have received
counterparts of this Amendment, which collectively shall have been duly executed
on behalf of each of the Borrower, the Guarantors, the Agent and the Lenders.

 

D. Expenses. The Company agrees to pay all reasonable costs and expenses of the
Agent in connection with the preparation, execution and delivery of this
Amendment, including without limitation the reasonable fees and expenses of the
Agent’s legal counsel.

 

E. Effect. Except as expressly modified and amended in this Amendment, all of
the terms, provisions and conditions of the Credit Agreement are and shall
remain in full force and effect and are incorporated herein by reference, and
the obligations of the Loan Parties hereunder and under the other Loan Documents
are hereby ratified and confirmed and shall remain in full force and effect. Any
and all other documents heretofore, now or hereafter executed and delivered
pursuant to the terms of the Credit Agreement are hereby amended so that any
reference to the Credit Agreement shall mean a reference to the Credit Agreement
as amended hereby.

 

F. Representations and Warranties. Each Loan Party represents and warrants to
the Lenders that (i) the representations and warranties set forth in Article VI
of the Credit Agreement are true and correct on and as of the Effective Date,
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct as of such
earlier date, (ii) no Default exists and (iii) none of the Loan Parties has any
counterclaims, offsets, credits or defenses to the Loan Documents and the
performance of their respective obligations thereunder, or if any Loan Party has
any such claims, counterclaims, offsets, credits or defenses to the Loan
Documents or any transaction related to the Loan Documents, the same are hereby
waived, relinquished and released in consideration of the Lenders’ execution and
delivery of this Amendment.

 

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G. Counterparts. This Amendment may be executed in any number of counterparts
(including facsimile counterparts), each of which when so executed and delivered
shall be an original, but all of which shall constitute one and the same
instrument. It shall not be necessary in making proof of this Amendment to
produce or account for more than one such counterpart.

 

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

 

I. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

 

J. Authorization; Enforceability. Each Loan Party hereby represents and warrants
as follows:

 

1. Each Loan Party has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of this Amendment.

 

2. This Amendment has been duly executed and delivered by each Loan Party, and
this Amendment and the Credit Agreement (as amended hereby) constitute the Loan
Parties’ legal, valid and binding obligations, enforceable in accordance with
their terms, except as such enforceability may be subject to (a) Debtor Relief
Laws and (b) general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity).

 

3. No consent, approval, authorization or order of, or filing, registration or
qualification with, any court or Governmental Authority or third party is
required in connection with the execution, delivery or performance by any Loan
Party of this Amendment.

 

[Signatures follow.]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Amendment to be duly executed under seal and delivered as of the date and year
first above written.

 

BORROWER:

 

ALBEMARLE CATALYSTS INTERNATIONAL,

L.L.C., a Delaware limited liability company

    By:  

 

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    Name:  

 

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    Title:  

 

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COMPANY:

 

ALBEMARLE CORPORATION,

a Virginia corporation

    By:  

 

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    Name:  

 

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    Title:  

 

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GUARANTORS:

 

ALBEMARLE OVERSEAS DEVELOPMENT

CORPORATION, a Virginia corporation

    By:  

 

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    Name:  

 

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    Title:  

 

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ALBEMARLE VIRGINIA CORPORATION,

a Virginia corporation

    By:  

 

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    Name:  

 

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    Title:  

 

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ALBEMARLE INTERNATIONAL CORPORATION,

a Virginia corporation

    By:  

 

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    Name:  

 

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    Title:  

 

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ACI DELAWARE CORPORATION,

a Delaware corporation

    By:  

 

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    Name:  

 

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    Title:  

 

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ALBEMARLE CATALYSTS U.S., L.L.C.,

a Delaware limited liability company

    By:  

 

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    Name:  

 

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    Title:  

 

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ALBEMARLE DELAWARE ONE, L.L.C.,

a Delaware limited liability company

By:

 

 

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Name:

 

 

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Title:

 

 

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ALBEMARLE DELAWARE TWO, L.L.C.,

a Delaware limited liability company

By:

 

 

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Name:

 

 

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Title:

 

 

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ALBEMARLE CATALYSTS COMPANY, LP,

a Delaware limited partnership

By:

 

 

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Name:

 

 

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Title:

 

 

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ALBEMARLE ASIA PACIFIC COMPANY,

a Virginia corporation

By:

 

 

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Name:

 

 

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Title:

 

 

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ALBEMARLE CHINA CORPORATION,

a Virginia corporation

By:

 

 

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Name:

 

 

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Title:

 

 

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ALBEMARLE AGRICULTURAL HOLDINGS LLC,

a Virginia limited liability company

By:

 

 

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Name:

 

 

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Title:

 

 

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ADMINISTRATIVE AGENT:  

BANK OF AMERICA, N.A., as

Administrative Agent

    By:  

 

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    Name:  

 

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    Title:  

 

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LENDERS:  

BANK OF AMERICA, N.A., as a Lender,

Swing Line Lender and L/C Issuer

    By:  

 

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    Name:  

 

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    Title:  

 

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UBS LOAN FINANCE LLC, as a Lender By:  

 

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Name:  

 

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Title:  

 

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By:  

 

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Name:  

 

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Title:  

 

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THE BANK OF NEW YORK By:  

 

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Name:  

 

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Title:  

 

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SUNTRUST BANK By:  

 

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Name:  

 

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Title:  

 

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NATIONAL CITY BANK By:  

 

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Name:  

 

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Title:  

 

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THE NORINCHUKIN BANK, NEW YORK BRANCH By:  

 

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Name:  

 

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Title:  

 

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SUMITOMO MITSUI BANKING CORP.,

NEW YORK

By:  

 

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Name:  

 

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Title:  

 

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JPMORGAN CHASE BANK, N.A. By:  

 

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Name:  

 

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Title:  

 

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ABN AMROBANK N.V. By:  

 

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Name:  

 

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Title:  

 

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By:  

 

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Name:  

 

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Title:  

 

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BANK OF CHINA, NEW YORK BRANCH By:  

 

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Name:

 

 

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Title:

 

 

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COMMERZBANK AG, NEW YORK AND

GRAND CAYMAN BRANCHES

By:  

 

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Name:  

 

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Title:  

 

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By:  

 

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Name:  

 

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Title:  

 

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CALYON NEW YORK BRANCH By:  

 

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Name:  

 

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Title:  

 

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By:  

 

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Name:  

 

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Title:  

 

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FORTIS CAPITAL CORP. By:  

 

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Name:  

 

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Title:  

 

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MIZUHO CORPORATE BANK, LTD. By:  

 

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Name:  

 

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Title:  

 

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UFJ BANK LIMITED, NEW YORK BRANCH By:  

 

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Name:  

 

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Title:  

 

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WACHOVIA BANK, NATIONAL ASSOCIATION By:  

 

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Name:  

 

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Title:  

 

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BANK OF TOYKO-MITSUBISHI By:  

 

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Name:  

 

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Title:  

 

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ROYAL BANK OF SCOTLAND By:  

 

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Name:  

 

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Title:  

 

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ALLIED IRISH BANK By:  

 

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Name:  

 

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Title:  

 

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AIB DEBT MANAGEMENT LTD By:  

 

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Name:  

 

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Title:  

 

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BRANCH BANKING AND TRUST COMPANY By:  

 

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Name:  

 

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Title:  

 

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WHITNEY NATIONAL BANK By:  

 

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Name:  

 

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Title:  

 

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