Document:

Waiver and Third Amendment to Amended and Restated Credit Agreement

 Exhibit 10.1 
 WAIVER AND THIRD AMENDMENT TO  
 AMENDED AND RESTATED CREDIT AGREEMENT 

 
 THIS WAIVER AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
(this “Agreement”), dated as of July 30, 2003, is made by and among GEO SPECIALTY CHEMICALS, INC. (“Borrower”), certain financial institutions party to the Credit Agreement referred to below (the
“Lenders”), DEUTSCHE BANK TRUST COMPANY AMERICAS f/k/a BANKERS TRUST COMPANY, in its capacity as administrative agent (the “Administrative Agent”), and US BANK NATIONAL ASSOCIATION, in its capacity as documentation
agent (“Documentation Agent”). 
  
  
 BACKGROUND 
  
 A.  Borrower, the Lenders, the Administrative Agent, and Documentation Agent are parties to that certain Amended and Restated Credit Agreement
dated as of May 31, 2001, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of May 14, 2002 and that certain Second Amendment to Amended and Restated Credit Agreement dated as of April 14, 2003 (as amended,
restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”). 
  
 B.  Borrower is not in compliance with certain provisions of the Credit Agreement, in each case as set forth on Schedule A hereto (collectively,
the “Scheduled Defaults”). 
  
 C.  Borrower
has requested that the Administrative Agent and the Lenders waive the Scheduled Defaults to permit Borrower to consummate the Senior Notes Financing (as defined herein) and amend the Credit Agreement in certain respects as set forth herein.

  
 D.  The Administrative Agent and the Lenders are
willing, to waive the Scheduled Defaults and to amend the Credit Agreement, subject to the terms and conditions of this Agreement. 
  
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the recitals herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
  

	SECTION	 	1.    DEFINITIONS 

  
 1.1.    Defined Terms.    Unless otherwise specified herein, capitalized terms used
in this Agreement shall have the meanings ascribed to them by the Credit Agreement. 
  
 1.2.    Other Defined Terms.    The following terms used in this Agreement
shall have the meanings set forth below: 
  
 “Senior Notes
Financing” means the issuance by Borrower of unsecured senior non-cash interest pay notes to Charter Oak and/or its Affiliates in an aggregate principal amount of not less than $6,100,000 with a final maturity date no earlier than February
1, 2008, on terms and conditions reasonably satisfactory to the Administrative Agent and the Required Lenders (collectively, the “Senior Notes”). 
  
 “Waiver Period” means the period beginning at the Effective Time and ending on the Waiver Termination Date. 
  

 1 

 “Waiver Termination Date” means the earliest to occur of (a) 5:00 p.m. (New York time)
on August 22, 2003, (b) the date upon which a Waiver Termination Event occurs or (c) the date upon which the Administrative Agent shall have received or should have been provided with the notice provided for in Section 6.2 of this Agreement.

  
 “Waiver Termination Events” means (a) the
occurrence and continuance of any Event of Default other than a Scheduled Default, (b) any representation made by Borrower under or in connection with this Agreement shall prove to be false in any material respect when made, (c) the breach by
Borrower of any covenant in this Agreement, or (d) any payment by Borrower or any of its Subsidiaries with respect to the Senior Subordinated Notes or any other Indebtedness which is expressly subordinated to the Obligations. 
  
  

	SECTION	 	2.    WAIVER; REINSTATEMENT 

  
 2.1.    Waiver.    During the Waiver Period, the Administrative Agent and the Lenders hereby
waive the Scheduled Defaults; provided, however, that, such waiver shall be automatically revoked to the extent a Waiver Termination Event has occurred and is continuing. 
  
 2.2.    Effect of Termination of Waiver Period.    If, at the
expiration of the Waiver Period, a Default or Event of Default would be in effect, but for the terms of this Agreement, such Default or Event of Default shall be reinstated as of the Waiver Termination Date (as if this Agreement had not been entered
into) and the Lenders shall have all rights and remedies in respect thereof. 
  
  

	SECTION	 	3.    AMENDMENTS TO CREDIT AGREEMENT.    The Credit Agreement is, as of the Effective Time (or at such other time as may be
specified below), hereby amended as follows: 

  
 3.1.    Interest (Section 1).    In the event that Borrower fails to consummate the Senior Notes Financing on or prior to August 29, 2003, Section 1.08(c) of the Credit Agreement shall
be amended and restated in its entirety as follows: 
  
 “(c)  Notwithstanding the rates of interest specified herein, upon the occurrence and during the continuance of an Event of Default, the Borrower agrees to pay interest on all outstanding Obligations, payable on demand, at a
fluctuating rate per annum equal to the rate otherwise in effect with respect to such Obligations, plus two percent (2.0%).” 
  
 3.2.    Events of Default (Section 9).    (a) Section 9.03 of the Credit
Agreement is hereby amended by renumbering clause (b) therein to be clause (c) and adding a new clause (b) thereto as follows: “(b) default in the due performance or observance by it of any term, covenant or agreement contained in Section 6.2
of the Third Amendment,” 
  
 (b)    New
subsection 9.03(c) of the Credit Agreement is hereby amended by inserting the words “or (b)” after the reference to “(a)” appearing in the parenthetical therein. 
  
 (c)    The proviso contained in the parenthetical in the last paragraph of Section 9 of the Credit
Agreement is amended by inserting, prior to the reference therein to Section 9.05, the words: “Section 9.03(b) or.” 
  
 3.3.    Section 10 (Definitions).    Section 10 of the Credit Agreement is
hereby amended by adding the following definition of “Third Amendment” thereto in appropriate alphabetical order as follows: 
  

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 “Third Amendment” shall mean that certain Waiver and Third Amendment to
Amended and Restated Credit Agreement dated as of July 30, 2003 among the Borrower, the Lenders and the Administrative Agent.” 
  
  

	SECTION	 	4.    BORROWINGS 

  
 4.1.    Availability of Loans.    During the Waiver Period, notwithstanding
anything to the contrary in the Credit Agreement, no Lender shall be obligated to make any new Revolving Loans, Swingline Loans or issue any new Letter of Credit. 
  
  

	SECTION	 	5.    REPRESENTATIONS AND WARRANTIES 

  
 5.1.    Representations and Warranties.    In order to induce the
Administrative Agent and the Lenders to enter into this Agreement, Borrower hereby represents and warrants to the Administrative Agent and the Lenders, in each case after giving effect to this Agreement, as follows: 
  
 (a)  Corporate Power and
Authority.    Borrower has the full corporate power and authority to execute, deliver and perform this Agreement and Borrower has taken all necessary corporate action to authorize the execution, delivery and performance
by it of this Agreement. 
  
 (b)  Binding Obligation.    This Agreement has been duly executed and delivered by Borrower and is the legal, valid and binding obligation of Borrower, enforceable against Borrower in
accordance with its terms, except as the enforcement thereof may be subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general principles of
equity. 
  
 (c)  Incorporation of Representations and Warranties from the Credit Agreement.    After giving effect to this Agreement, the representations and warranties contained in the Credit
Agreement and the other Credit Documents are true and correct in all material respects at and as of the Effective Time, with the same effect as though made on such date, except (x) to the extent specifically made with regard to a particular date, in
which case such representation and warranty is true and correct in all material aspects as of such date, (y) as otherwise set forth on Schedule A hereto and (z) the representation and warranty set forth in Section 6.10(c) of the Credit Agreement.

  
 (d)  No Violation or
Conflict.    The execution, delivery and performance of this Agreement by Borrower do not and will not violate any provision of the certificate of incorporation or by-laws, any applicable law, statute, rule, regulation,
order, writ, injunction or decree of any court or Governmental Authority having jurisdiction over it or any contractual provision to which it is a party or to which it or any of its property is subject. 
  
 (e)  No Additional Consents
Required.    No material order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, any foreign or domestic governmental or public body or authority, or
any subdivision thereof, is required to authorize or is required in connection with its execution, delivery and performance of this Agreement and all agreements, documents and instruments executed and delivered pursuant to this Agreement.

  
 (f)  Absence of
Default.    No Event of Default or Default will exist or be continuing, except with respect to the Scheduled Defaults. 
  

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 (g)  Good Standing.    At the
Effective Time, each Credit Party is a duly organized and validly existing entity in good standing in its jurisdiction of incorporation. 
  
 (h)  No Amendment to Bylaws.    A true and complete copy of the bylaws of each Credit
Party has been delivered to the Administrative Agent prior to or on the date of this Agreement. 
  
 (i)  Perfection Certificates.    Without limiting any other representation or warranty
made in this Agreement, Borrower hereby represents and warrants that each of it and its Subsidiaries has previously delivered to the Administrative Agent a true and correct Perfection Certificate and each such Perfection Certificate remains true and
correct as of the date hereof. 
  
  

	SECTION	 	6.    COVENANTS 

  
 6.1.  Senior Notes Financing.    On or prior to August 22, 2003, Borrower shall
have consummated the Senior Notes Financing. 
  
 6.2.  Prior Notice.    Borrower shall give the Administrative Agent at least five (5) Business Days notice prior to it or any other Credit Party making any payment with respect to the
Senior Subordinated Notes. 
  
 6.3.  Notices.    Borrower shall immediately notify the Administrative Agent of its having knowledge that it or any Subsidiary has breached any term of this Agreement or of the existence of
any event which constitutes a Waiver Termination Event. 
  
  

	SECTION	 	7.    CONDITIONS PRECEDENT 

  
 7.1.  Conditions to Effectiveness of Agreement.    This Agreement shall become
effective at 5:00 p.m. (New York time) on July 30, 2003 once the following conditions precedent have been satisfied (the “Effective Time”): 
  
 (a)  Execution and Delivery of Agreement.    Borrower, the Administrative Agent and the
Required Lenders shall have executed and delivered this Agreement. 
  
 (b)  Charter Oak Commitment.    The Administrative Agent shall have received duly executed documentation, which shall be satisfactory in form and substance to the
Administrative Agent and its counsel, evidencing Charter Oak’s commitment to purchase the Senior Notes. 
  
 (c)  Other Documents and Actions.    The Administrative Agent shall have received each
of the following documents and/or confirmed the occurrence of the following specified actions, as the case may be, each of which shall be satisfactory in form and substance to the Administrative Agent and its counsel: 
  
 (1)  Officer’s
Certificate.    A bringdown certificate of an officer of Borrower in the form of Exhibit A attached hereto; 
  
 (2)  Subsidiary Guarantor Acknowledgement and Consent.    An Acknowledgement and Consent in
the form of Exhibit B attached hereto, duly executed and delivered by each Subsidiary Guarantor; 
  

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 (3)  Charter Oak Acknowledgement and
Consent.    An Acknowledgement and Consent in the form of Exhibit C attached hereto, duly executed and delivered by Charter Oak; 
  
 (4)  Litigation.    There shall be no actions, suits or proceedings pending or threatened, to
Borrower’s knowledge, which the Administrative Agent or the Required Lenders shall determine could reasonably be expected to (i) have a Material Adverse Effect or (ii) have a material adverse effect on the rights or remedies of the Lenders
hereunder or under any other Credit Document or on the ability of any Credit Party to perform its respective obligations to the Lenders hereunder or under any other Credit Document; 
  
 (5)  Corporate Proceedings.    All corporate and legal
proceedings and all instruments and agreements in connection with the transactions contemplated by this Agreement and the other Credit Documents shall be satisfactory in form and substance to the Administrative Agent and the Administrative Agent
shall have received all information and copies of all documents and papers, including records of corporate proceedings, governmental approvals, good standing certificates and bring-down certificates, if any, which the Administrative Agent or the
Lenders reasonably may have requested in connection therewith, such documents and papers where appropriate to be certified by proper corporate or Governmental Authorities; and 
  
 (6)  Other Matters.    Such other instruments, documents,
certificates and opinions in respect of such matters as the Administrative Agent may reasonably request. 
  
 (d)  No Defaults.    After giving effect to this Agreement, no Event of Default or
Default under the Credit Agreement shall have occurred and be continuing, except as otherwise set forth on Schedule A hereto. 
  
 (e)  Representations and Warranties.    After giving effect to this Agreement, the
representations and warranties of Borrower contained in this Agreement, the Credit Agreement and the other Credit Documents shall be true and correct in all material respects as of the Effective Time, with the same effect as though made on such
date, except (x) to the extent specifically made with regard to a particular date, in which case such representation and warranty is true and correct as of such date, (y) as otherwise set forth on Schedule A hereto, and (z) the representation and
warranty set forth in Section 6.10(c) of the Credit Agreement. 
  
 (f)  Fees.    Borrower shall have paid all reasonable fees, costs and expenses of the Administrative Agent, including, without limitation, the reasonable fees and
expenses of Winston & Strawn LLP. 
  
 (g)  Other Matters.    The Administrative Agent shall have received such other instruments and documents as the Administrative Agent or the Required Lenders may reasonably request in
connection with the execution of this Agreement, and all such instruments and documents shall be reasonably satisfactory in form and substance to the Administrative Agent. 
  
  

	SECTION	 	8.    MISCELLANEOUS 

  
 8.1.  Miscellaneous.    The parties hereto hereby further agree as follows: 

 
 (a)  Costs, Expenses and
Taxes.    Borrower hereby agrees to promptly pay all reasonable fees, costs and expenses of the Administrative Agent incurred in connection with the negotiation, preparation and execution of this Agreement and the
transactions contemplated hereby. 
  

 5 

 (b)  Counterparts.    This Agreement
may be executed in one or more counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same document with the same force and effect
as if the signatures of all of the parties were on a single counterpart, and it shall not be necessary in making proof of this Agreement to produce more than one (1) such counterpart. A facsimile copy of a signature shall be deemed to be an original
signature page, regardless of whether an original signature page shall thereafter be delivered. 
  
 (c)  Headings.    Headings used in this Agreement are for convenience of reference only
and shall not affect the construction of this Agreement. 
  
 (d)  Integration.    This Agreement, the other agreements and documents executed and delivered pursuant to this Agreement and the Credit Agreement constitute the
entire agreement among the parties hereto with respect to the subject matter hereof. 
  
 (e)  GOVERNING LAW.    THIS AGREEMENT SHALL BE GOVERNED BY, AND BE CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE INTERNAL CONFLICTS OF LAWS PROVISIONS THEREOF. 
  
 (f)  Binding Effect.    This Agreement shall be binding upon and inure to the benefit
of and be enforceable by Borrower, the Administrative Agent and the Lenders and their respective successors and assigns. Except as expressly set forth to the contrary herein, this Agreement shall not be construed so as to confer any right or benefit
upon any Person other than Borrower, the Administrative Agent and the Lenders and their respective successors and permitted assigns. 
  
 (g)  Limited Waiver.    Except as expressly provided herein, the execution and delivery
of this Agreement shall not: (i) constitute an extension, modification, or waiver of any aspect of the Credit Agreement or the other Credit Documents; (ii) extend the terms of the Credit Agreement or the due date of any of the Obligations; (iii)
give rise to any obligation on the part of the Administrative Agent and the Lenders to extend, modify or waive any term or condition of the Credit Agreement or any of the other Credit Documents; or (iv) give rise to any defenses or counterclaims to
the right of the Administrative Agent and the Lenders to compel payment of the Obligations or to otherwise enforce its rights and remedies under the Credit Agreement and the other Credit Documents. From and after the Waiver Termination Date, the
Administrative Agent and the Lenders hereby expressly reserve all of their rights and remedies under the Credit Documents and under applicable laws and shall be entitled to enforce the Credit Documents according to their terms, as amended hereby.

  
 (h)  Reference to and
Effect on the Credit Agreement and other Credit Documents.    The parties hereto agree and acknowledge that nothing contained in this Agreement in any manner or respect limits or terminates any of the provisions of the
Credit Agreement or any of the other Credit Documents, other than as expressly set forth herein and further agree and acknowledge that the Credit Agreement and each of the other Credit Documents remain and continue in full force and effect and are
hereby ratified and confirmed. Except to the extent expressly set forth herein, the execution, delivery and effectiveness of this Agreement shall not operate as an amendment of any rights, power or remedy of the Lenders or the Administrative Agent
under the Credit Agreement or any other Credit Document, nor constitute an amendment of any provision of the Credit Agreement or any other Credit Document. No delay on the part of any Lender or the Administrative Agent in exercising any of their
respective rights, remedies, powers and privileges under the Credit Agreement or any of the Credit Documents or partial or single exercise thereof, shall constitute an amendment thereof. On and after the Effective Time each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof,” 
  

 6 

 “herein” or words of like import, and each reference to the Credit Agreement in the
Credit Documents and all other documents delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby. Borrower acknowledges and agrees that this Agreement constitutes a “Credit
Document” for purposes of the Credit Agreement. None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner, whatsoever, except in accordance with Section 12.12 of the Credit Agreement.

  
 (i)    RELEASE.    BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE
OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE ADMINISTRATIVE AGENT OR ANY LENDER. BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND
FOREVER DISCHARGES THE AGENT AND EACH LENDER, AND THE ADMINISTRATIVE AGENT’S AND EACH LENDER’S RESPECTIVE AFFILIATES, PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION,
DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS
AGREEMENT IS EXECUTED, WHICH BORROWER MAY NOW OR HEREAFTER HAVE AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES, ANY LENDER, OR AGAINST THEIR RESPECTIVE AFFILIATES, PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS,” INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING
OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER CREDIT DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING,
NOTHING CONTAINED IN THIS SECTION 8.1(i) SHALL BE CONSTRUED TO LIMIT OR WAIVE ANY CLAIMS, DEFENSES OR CAUSES OF ACTION THAT BORROWER MAY HAVE AGAINST CITICORP USA, INC. OR ANY OF ITS AFFILIATES, PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS OR ASSIGNS
RELATING TO ANY HEDGE AGREEMENTS BETWEEN BORROWER AND SUCH PERSONS. 
  
 (j)  Severability of Provisions.    Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
  
  

 7 

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

	 DEUTSCHE BANK TRUST COMPANY AMERICAS
 (f/k/a BANKERS TRUST COMPANY),
 Individually as a Lender and as Agent

		
	 By:
	 	

		
	Name:  	 	

		
	Title:	 	

  
  

	GEO SPECIALTY CHEMICALS, INC.
		
	 By:
	 	

		
	Name:  	 	

		
	Title:	 	

  

 8 

 Schedule A 
  
 Scheduled Defaults 
  
 The failure to pay interest under the Senior Subordinated Notes on the due date but excluding any failure to pay such interest after giving effect any
grace periods applicable thereto. 
  
 The failure to comply with
the Interest Coverage Ratio (Section 8.10) and the Senior Leverage Ratio (Section 8.11(b)) for the period ending June 30, 2003. 
  
 Section references on this Schedule A refer to sections of the Credit Agreement, unless otherwise specified herein. 
  

 9 

 EXHIBIT A 
  
 FORM OF 
 OFFICER’S CERTIFICATE 
  
 I,
                    , a duly qualified and acting officer of GEO Specialty Chemicals, Inc., an Ohio corporation (“Borrower”),
hereby certify that I am an Authorized Officer of Borrower and further certify on behalf of Borrower that: 
  
 1.    This Certificate is furnished pursuant to Section 7.1(c)(1) of the Waiver and Third Amendment to Amended and Restated Credit
Agreement, dated as of the date hereof (the “Agreement”), among Borrower, the Administrative Agent and the financial institutions thereto. Unless otherwise defined herein, any capitalized terms used herein have the meanings set forth in
the Agreement. 
  
 2.    After giving effect
to the Agreement, the representations and warranties of Borrower and the other Credit Parties contained in the Agreement, the Credit Agreement and the other Credit Documents shall be true and correct in all material respects as of the Effective
Time, with the same effect as though made on such date, except (x) to the extent specifically made with regard to a particular date, in which case such representation and warranty is true and correct as of such date, (y) as otherwise set forth on
Schedule A to the Agreement and (z) the representation and warranty set forth in Section 6.10(c) of the Credit Agreement. 
  
 3.    After giving effect to the Agreement, no Event of Default or Default will exist or be continuing, except as otherwise set forth
on Schedule A to the Agreement. 
  
 4.    The conditions set forth in Section 7 of the Agreement to be satisfied by Borrower have been fully satisfied or waived. 
  
 IN WITNESS WHEREOF, I have hereunto signed my name this 30th day of July, 2003. 
  
  

	GEO SPECIALTY CHEMICALS, INC.
		
	 By:
	 	

		
	Its:  	 	

  

 10 

 EXHIBIT B 
  
  
 FORM OF 
 ACKNOWLEDGMENT AND CONSENT 
  
 The undersigned hereby acknowledges that it has reviewed the terms and provisions of that certain Amended and Restated Credit Agreement dated as of May
31, 2001, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of May 14, 2002 and that certain Second Amendment to Amended and Restated Credit Agreement dated as of April 14, 2003 (as amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”) by and among Borrower, the Administrative Agent and the Lenders; capitalized terms used herein without definition have the meaning ascribed thereto
in the Credit Agreement and this Waiver and Third Amendment to Amended and Restated Credit Agreement (the “Agreement”) and consents to the amendment of the Agreement pursuant to this Agreement and the other matters contemplated
under the Agreement. 
  
 The undersigned hereby acknowledges and
agrees that any of the Credit Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or affected by the
execution or effectiveness of this Agreement. The undersigned represents and warrants that all representations and warranties applicable to it contained in the Agreement as amended by this Agreement and the Credit Documents to which it is a party or
otherwise bound are true, correct and complete in all material respects on and as of the Effective Time, to the same extent as though made on and as of that date (except to the extent that such representations and warranties specifically relate to
an earlier date, in which case they are true and correct in all material respects as of such earlier date or were modified by any delivery of a Perfection Certificate subsequent to the date of the Credit Agreement). The undersigned acknowledges and
agrees that the provisions of Section 8.1(i) of the Agreement are incorporated herein by reference and shall apply mutatis mutandis to the undersigned as if it were Borrower thereunder. 
  
 The undersigned acknowledges and agrees that (i) notwithstanding the
conditions to effectiveness set forth in this Agreement, the undersigned is not required by the terms of the Agreement or any other Credit Document to consent to the amendment of the Agreement effected pursuant to this Agreement and (ii) nothing in
the Agreement or this Agreement or any other Credit Document shall be deemed to require the consent of the undersigned to any future amendment of the Agreement or any other Credit Document. 
  
 IN WITNESS WHEREOF, the undersigned has caused this Acknowledgement and
Consent to the Waiver and Third Amendment to Amended and Restated Credit Agreement to be duly executed and delivered by its proper and duly authorized officer as of this 30th day of July, 2003. 
  
 [signature page follows] 
  

 11 

  

	GEO SPECIALTY CHEMICALS LIMITED
	
	By: GEO SPECIALTY CHEMICALS, INC.
	
	its Sole Member
		
	 By:
	 	

		
	Name:  	 	

		
	Title:	 	

  

 12 

 EXHIBIT C 
  
 FORM OF 
 ACKNOWLEDGMENT AND CONSENT 
  
 The undersigned
hereby acknowledge that they have reviewed the terms and provisions of that certain Amended and Restated Credit Agreement dated as of May 31, 2001, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of May
14, 2002 and that certain Second Amendment to Amended and Restated Credit Agreement dated as of April 14, 2003 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”) by and among
Borrower, the Administrative Agent and the Lenders; capitalized terms used herein without definition have the meaning ascribed thereto in the Credit Agreement and this Waiver and Third Amendment to Amended and Restated Credit Agreement (the
“Agreement”) and consent to the amendment of the Agreement pursuant to this Agreement and the other matters contemplated under the Agreement. 
  
 The undersigned hereby acknowledge and agree that any of the Credit Documents (including the Support Agreement and the Subordination and Intercreditor
Agreement) to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or affected by the execution or effectiveness of this
Agreement. The undersigned hereby acknowledge and agree that the provisions of Section 8.1(i) of the Agreement are incorporated herein by reference and shall apply mutatis mutandis to the undersigned as if they were Borrower thereunder.

  
 The undersigned acknowledge and agree that (i) notwithstanding
the conditions to effectiveness set forth in this Agreement, the undersigned is not required by the terms of the Agreement or any other Credit Document to consent to the amendment of the Agreement effected pursuant to this Agreement and (ii) nothing
in the Agreement or this Agreement or any other Credit Document shall be deemed to require the consent of the undersigned to any future amendment of the Agreement or any other Credit Document. 
  
 IN WITNESS WHEREOF, the undersigned have caused this Acknowledgement and
Consent to the Waiver and Third Amendment to Amended and Restated Credit Agreement to be duly executed and delivered by its proper and duly authorized officer as of this 30th day of July, 2003. 
  
 [signature page follows] 
  

 13 

  

	 CHARTER OAK PARTNERS
 By: Fine
Partners, L.P., Managing Partner

		
	 By:
	 	

		
	Name:  	 	

		
	Title:	 	

  
  

	 CHARTER OAK PARTNERS CAPITAL PARTNERS, L.P.
 By: North Fairfield, L.L.C., General Partner

		
	 By:
	 	

		
	Name:  	 	

		
	Title:	 	

  
  

 14First Amended and Restated Employment and Noncompetition Agreement - G. Ahearn

 Exhibit 10.2 
  
 FIRST AMENDED AND RESTATED EMPLOYMENT 
 AND NONCOMPETITION AGREEMENT 
  
 This First Amended and Restated Employment and Noncompetition Agreement (this “Agreement”) is made as of March 25, 2003 by and between GEO SPECIALTY CHEMICALS, INC., an Ohio corporation (“Company”), and
GEORGE P. AHEARN (“Executive”). 
  
 WITNESSETH

  
 WHEREAS, Company and Executive are parties to that certain
Employment and Noncompetition Agreement, dated as of March 25, 1997 (the “Original Employment Agreement”). The parties desire to amend and restate the Original Employment Agreement such that this Agreement shall supersede and
replace the rights and obligations of Company and Executive thereunder; 
  
 WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company to undertake such responsibilities as are necessary to assist in running the businesses of the Company, all in accordance with the
provisions of this Agreement; 
  
 WHEREAS, Executive has been an
officer of the Company and a Member of GEO Chemicals Limited, an Ohio Limited Liability Company and shareholder of the Company, and has valuable knowledge and experience pertaining to the business of the Company, and the parties desire to arrange
for the continuation of his services to the Company; and 
  
 WHEREAS, as an inducement to the Company extending its employment arrangement with Executive, the parties also desire to arrange for Executive’s undertaking not to compete with the Company. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, it is hereby agreed as follows: 
  
 1.    Employment. Commencing as of the effective date hereof and continuing through three (3) years following the effective date hereof (the “Renewal Term”), the Company
hereby employs Executive as President and Chief Executive Officer of the Company with responsibility for the performance of such executive services and duties as shall be reasonably assigned to and requested of him by, and subject to the direction
and supervision of, the Board of Directors of the Company. In addition, Executive shall be the Chairman of the Board of Directors during the Employment Period (as hereinafter defined). Subject to the provisions of Section 11 hereof, commencing on
March 25, 2006 and the 25th day of each March thereafter, the term of this Agreement shall be automatically extended for additional one (1) year period(s), on the same terms and conditions as contained herein, unless either party gives written
notice to the other party of his or its intention not to extend the employment hereunder at least ninety (90) days prior to March 25th of any year following the Renewal Term of this Agreement (the “Additional Term(s)”) (the Renewal
Term and the Additional Term(s), if any, are hereinafter referred to as the “Employment Period”). Executive hereby accepts such employment and agrees that he will devote his full time and undivided efforts to the business and
affairs of the Company and serve the Company in its business and perform his duties to the best of his ability. 
  

 1 

 2.    Salary and Bonus.  (a) As compensation for his services during
the Employment Period, Executive shall receive a base salary at the rate of Three Hundred Eighty Thousand Dollars ($380,000) per year. The Company will make a good faith effort to adjust Executive’s salary to be consistent with the top quartile
of similarly situated executives. Such salary shall be subject to being increased, but not decreased, based upon an annual review, although any increase shall be at the sole discretion of the Board of Directors of the Company. Such salary shall be
payable no less frequently than in equal monthly installments. In the event Executive’s employment with the Company is terminated for any reason prior to the expiration of the Employment Period, other than a discharge by the Company without
Cause, as defined in that certain Shareholders Agreement, originally dated March 25, 1997, and amended and restated as of July 31, 1998, entered into by and among the Company, Charter Oak Partners, Charter Oak Capital Partners L.P., GEO Chemicals
Limited, Executive, William P. Eckman, and others, Executive’s receipt of such salary shall terminate immediately. In the event Executive is discharged by the Company without Cause, such salary shall be either (i) payable for (A) the remainder
of the Employment Period or (B) one (1) year after the date of Executive’s termination, whichever is greater, or (ii) at the election of Executive, waived in consideration for the release of Executive by the Company from the restrictive
covenant contained in Section 7. Any such waiver shall be in writing and shall be deemed, without further action on the part of Executive, to be a waiver of the right to receive the employee benefits referred to in the last sentence of Section 4.

  
 (b)    In addition to the base salary
referred to in Section 2(a) hereof, and subject to the discretion of the Company’s Board of Directors, Executive will be eligible to receive bonus compensation in each year of the Employment Period based upon the achievement of annual financial
and non-financial executive goals as agreed between the Company’s Board of Directors and Executive. The parties shall seek to agree upon such executive goals in writing each year concurrently with the determination of Executive’s salary.
The executive goals for any period may be attached to this Agreement from time to time and marked Exhibit A. 
  
 3.    Expenses. The Company shall reimburse Executive for reasonable expenses incurred by him on behalf of the Company in the
performance of his duties during the Employment Period. Executive shall furnish the Company with such documentation as is requested by the Company in order for it to comply with the Internal Revenue Code and regulations thereunder in connection with
the proper deduction of such expenses. 
  
 4.    Benefits. During the Employment Period, Executive shall be entitled to participate in any employee benefit plans which are maintained or established by the Company for its senior executives generally,
subject, however, to all of the terms and conditions thereof, including any eligibility requirements therefor. In any event, the Company agrees to provide (i) medical insurance coverage equal to that provided for other senior executives of the
Company; (ii) life insurance coverage equal to two (2) times Executive’s base salary; and (iii) participation in the Company’s 401(k) plan or other standard retirement plan maintained by the Company. In the event Executive’s
employment with the Company is terminated for any reason prior to the expiration of the Employment Period, other than a discharge without Cause, Executive’s receipt of such benefits shall immediately cease. In the event Executive is discharged
without Cause, Executive shall either (i) receive such benefits for (A) the remainder of the Employment Period or (B) for one (1) year after the date of Executive’s termination, whichever is greater, or (ii) elect to waive his right to receive
such benefits in consideration for 
  

 2 

 the release of Executive by the Company from the restrictive covenant contained in Section 7 below. 
  
 5.    Vacations. During the Employment Period,
Executive shall be entitled to four (4) weeks of paid vacation per annum. 
  
 6.    Nondisclosure. Except for information which is already in the public domain, which is publicly disclosed by persons other than Executive, or which is required by law to be disclosed,
Executive shall at all times during and after his employment with the Company hold in strictest confidence any and all confidential information within his knowledge (whether acquired prior to or during his employment with the Company) concerning the
products, processes, services, business, suppliers and customers of the Company. Such confidential information includes, without limitation, financial information, sales and distribution information, price lists, the identity and lists of actual and
potential customers and technical information, all to the extent that such information is not intended by the Company for public dissemination. 
  
 7.    Noncompetition. Subject to the right of Executive to obtain a release as provided in Sections 2(a) and 4 above, and to
the last sentence of this Section 7, commencing as of the effective date hereof and continuing through the date of the expiration of the Employment Period, or, one (1) year after the termination of his employment with the Company, whichever is
later, Executive shall not, without the prior written consent of the Company, (a) solicit business from or compete with the Company for the business of any customer of the Company as reflected on the books of the Company either as of the date hereof
or as of the date of Executive’s termination of employment with the Company or (b) either directly or indirectly operate or perform any advisory or consulting services for, invest in (other than stock in a publicly-held corporation which is
traded on a recognized securities exchange or in an established over-the-counter market, provided that the ownership of such equity interest does not give Executive the right to control or substantially influence the policy or operational decisions
of such corporation), or otherwise become associated with in any capacity, any company, partnership, organization, proprietorship or other entity which develops, manufactures, prepares, sells or distributes products or performs services then in
competition with the products developed, manufactured, prepared, sold or distributed or services rendered by the Company anywhere in the markets in which the Company competes at any time during such period. In the event that Executive terminates
this Agreement pursuant to Section 11(b) below, the one year restriction contained in this Section 7 shall bind Executive only if the Company continues to pay Executive a base salary during such period at the rate in effect immediately prior to such
termination. 
  
 8.    Noninterference.
Executive shall not, at any time during the Employment Period, or, within one (1) year after the termination of his employment with the Company, whichever is later, without the prior written consent of the Company, directly or indirectly, induce or
attempt to induce any employee, agent or other representative or associate of the Company to terminate its relationship with the Company, or in any way directly or indirectly interfere with such a relationship or any relationship between the Company
and any of its suppliers or customers. 
  
 9.    Disclosure of Proprietary Information. Executive will promptly disclose in writing to the Board each improvement, discovery, idea and invention relating to the business of the Company made or conceived by
Executive, either alone or in conjunction with others, while 
  

 3 

 (a) employed by the Company or, (b) if Executive is receiving the applicable severance payments, (i) during the
Employment Period, or (ii) one (1) year after the termination of his employment with the Company, whichever is later, if such improvement, discovery, idea or invention results from or was suggested by such employment. Executive will not disclose any
such improvement, discovery, idea or invention to any person, except the Company. Each such improvement, discovery, idea or invention shall be the sole and exclusive property of, and is hereby assigned to, the Company and at the request of the
Company, Executive will assist and cooperate with the Company and any person or persons from time to time designated by the Company to obtain for the Company the grant of any letters patent in the United States and/or any foreign country, covering
any such improvement, discovery, idea or invention, and will in conjunction therewith execute such applications, statements, assignments or other documents, furnish such information and data and take all such other action (including without
limitation the giving of testimony) as the Company may from time to time reasonably request. Should Executive not be an employee of the Company at the time such cooperation and assistance is rendered, he shall be reimbursed for all reasonable and
related out-of-pocket expenses incurred by him. 
  
 10.    Remedies. Executive acknowledges that Sections 6, 7, 8 and 9 hereof were negotiated at arms’ length, with the advice of counsel and are required for the fair and reasonable protection of the Company.
In the event of an alleged breach by Executive of his obligations under Sections 6, 7, 8 and 9, the Company shall give Executive written notice thereof, and Executive shall have thirty (30) days to cease such activities to the satisfaction of the
Company before the Company may file any legal action pursuant to this Section 10. Executive and the Company further acknowledge and agree that a continued breach of any of those obligations and agreements will result in irreparable and continuing
damage to the Company for which there will be no adequate remedy at law, and therefore, Executive and the Company agree that, in the event of any breach of said obligations and agreements, the Company and its successors and assigns shall be entitled
to injunctive relief and such other and further relief, including monetary damages, as is proper in the circumstances. It is further agreed that the running of the periods provided above in Sections 7, 8 and 9, respectively, shall be tolled during
any period during which Executive shall be adjudged to have been in violation of any of his obligations under such Sections. 
  
 11.    Termination. This Agreement shall terminate and, except for the obligations of the Company set forth in Sections 2 and 4
hereof and the obligations of Executive set forth in Sections 6, 7, 8 and 9, which shall survive such termination, all rights and obligations of the Company and Executive hereunder shall be completely void upon the earliest to occur of the
following: 
  
 (a) expiration of the Employment Period;

  
 (b) voluntary termination by Executive of his employment with
the Company, a right reserved to Executive hereunder; 
  
 (c)
discharge of Executive with or without good cause; 
  
 (d) the
death of Executive; and 
  

 4 

 (e) at the election of the Company, the disability of Executive, which, for purposes
hereof, shall mean the inability of Executive for a continuous period of six (6) months to perform the essential functions of his position hereunder on an active full time basis, with or without reasonable accommodations, by reason of disability or
impairment of health. A certificate from a physician acceptable to both the Company and Executive to the effect that Executive is or has been disabled and incapable of performing the essential functions of his position with or without reasonable
accommodations for the Company as previously performed shall be conclusive of the fact that Executive is incapable of performing such reasonable services and is or has been disabled for the purposes of this Agreement. 
  
 12.    Reformation of Agreement; Severability. In
the event that any of Sections 6, 7, 8 or 9 shall be found by a court of competent jurisdiction to be invalid or unenforceable as against public policy, such court shall exercise its discretion in reforming such provision to the end that Executive
shall be subject to such restrictions and obligations as are reasonable under the circumstances and enforceable by the Company. In the event that any other provision or term of this Agreement is found to be void or unenforceable to any extent for
any reason, it is the agreed upon intent of the parties hereto that all remaining provisions or terms of the Agreement shall remain in full force and effect to the maximum extent permitted and that the Agreement shall be enforceable as if such void
or unenforceable provision or term had never been a part hereof. 
  
 13.    Assignment. This Agreement shall inure to the benefit of, and shall be binding upon, the Company, its successors and assigns. Executive shall not assign this Agreement without the written consent of the
Company, but this Agreement shall be binding upon Executive and his heirs, estate and personal representatives. 
  
 14.    Arbitration. In the event a dispute concerning the terms and operation of this Agreement arises, and if the Company and
Executive do not come to an agreement with respect to such dispute within thirty (30) days after the notice of said dispute is provided by either party under Section 15 hereof, the Company and Executive shall submit the dispute to arbitration in
Cleveland, Ohio, under the commercial rules of the American Arbitration Association then in effect. Such arbitration shall be final and binding upon the parties and enforceable in a court of competent jurisdiction. Judgment on such arbitration
award, from which no appeal or review may be taken, may be entered in any court having jurisdiction and enforced accordingly. 
  
 15.    Notice. Any notice required to be given under the terms of this Agreement shall be in writing, and mailed to the
recipient’s last known address or delivered in person. If sent by registered or certified mail, such notice shall be effective when mailed; otherwise, it shall be effective upon delivery. 
  
 (i) If to the Company, to: 
  
 GEO Specialty Chemicals, Inc. 
 c/o Charter Oak Partners 
 10 Wright Street 
 Building B 
 Westport, Connecticut 06880 
 Attn:  Anthony J. Dowd 
 Telecopier: (203) 222-2720 
  

 5 

 (ii)  If to Executive, to: 
  
 George P. Ahearn 
 8387 Whispering Pines Drive 
 Novelty, Ohio 44072 
  
 16.    Entire Agreement; Amendments; Waivers. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof. It may not be changed orally but only by a written
agreement signed by Executive and an officer of the Company specifically designated by the Board of Directors of the Company to execute such amendment. The terms or covenants of this Agreement may be waived only by a written instrument specifically
referring to this Agreement and executed by the party waiving compliance. The failure of the Company at any time or from time to time to require performance of any of Executive’s obligations under this Agreement shall in no manner affect the
Company’s right to enforce any provisions of this Agreement at a subsequent time; and the waiver by the Company of any right arising out of any breach shall not be construed as a waiver of any right arising out of any subsequent breach.

  
 17.    Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the State of Ohio. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
  
  

	 	 	 	 	 GEO SPECIALTY CHEMICALS, INC.

				
	
	 	 	 	By:	 	

	GEORGE P. AHEARN	 	 	 	 	 	Name:
	 	 	 	 	 	 	Title:

  

 6 

 Exhibit A 
  

Executive Goals For Calendar Year 2003 
 Financial and Non-Financial 
  
 1.    General Terms 
  
 Bonus
shall range from 0-100% of basic salary in effect. Bonus to be based upon achievement of both financial and non-financial goals. 
  
 2.    Non-Financial Goals 
  
 Achievement of non-financial goals will be determined by the Board of Directors, in its discretion, and may represent up to 50% of the total bonus amount.
The non-financial goals for Executive will be: 
  

	 	•	 	To provide strategic direction to the Company with the objective of continuing profitability in order to meet all financial obligations. 

  

	 	•	 	To provide visionary and effective leadership for all of the Company’s employees so they can understand and endorse the Company’s business plans and execute them in an
enthusiastic and efficient manner. 

  

	 	•	 	To take the initiative to institute prudent actions to control costs, conserve capital, and optimize the working capital or cash required to run the Company’s business.

  

	 	•	 	To set the highest standards for ethical business practices and conduct the Company’s business in compliance with all laws, particularly in the area of safety, environmental,
and community awareness. 

  

	 	•	 	To provide the organizational tools to execute the Company’s business plans by instituting an effective planning process, responsible stewardship programs, employee training
and development techniques and appropriate incentive awards. 

  
 3.    Financial Goals 
  
 The
remaining 50% of the total bonus amount may be determined by the Board of Directors, in its discretion, based upon the achievement of financial goals related to: 
  

	 	•	 	Improving the cash position of the Company relative to 2002 

  

	 	•	 	Improving the EBITDA of the Company relative to 2002 

  

	 	•	 	Compliance with senior loan agreement leverage ratios throughout 2003 

  

 7

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