Document:

EXECUTION COPY

WAIVER NO. 2 dated as of March 26, 2004, (this

"Waiver") to the FIVE-YEAR CREDIT AGREEMENT dated as

of October 28, 1999, as amended through the date hereof (as it may

be further amended, restated, supplemented or otherwise modified

from time to time, the "Credit Agreement"), among CROMPTON

CORPORATION (formerly known as CK Witco Corporation) (the

"Company"); the Eligible Subsidiaries referred to therein; the

BANKS referred to therein; JPMORGAN CHASE BANK, as 

Syndication Agent; CITICORP USA, INC. (as successor to

Citibank, N.A. in its capacity as Administrative Agent), as

Administrative Agent; and BANK OF AMERICA, N.A. and

DEUTSCHE BANK SECURITIES INC. (formerly known as

DEUTSCHE BANC ALEX. BROWN INC.), as Co-

Documentation Agents.

WHEREAS, the Company, the Eligible Subsidiaries, the Banks, the Co-

Documentation Agents, the Syndication Agent and the Administrative Agent are parties

to the Credit Agreement;

WHEREAS, pursuant to the Credit Agreement, the Banks have made and

agreed to make certain loans to the Borrowers; and

WHEREAS, the Company has requested, and the Banks whose signatures

appear below, constituting the Required Banks, have agreed that certain provisions of the

Credit Agreement be waived in the manner and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual agreements herein

contained and other good and valuable consideration, the sufficiency and receipt of which

are hereby acknowledged, the parties hereto hereby agree as follows:

	Defined Terms.  Capitalized terms used but not

defined herein have the meanings assigned to them in the Credit Agreement.

	Waiver.  The Required Banks hereby (a) waive

the provisions of Section 5.09 of the Credit Agreement to the extent, and

only to the extent, necessary to permit the sale by the Company of the

Equity Interests held by it in Gustafson LLC, a Delaware limited liability

company, and Gustafson Partnership, a general partnership formed under the

laws of the Province of Ontario, Canada, (collectively, the "Gustafson

Equity Interests") for cash in an aggregate amount at least equal to

$100,000,000 (the "Proposed Sale") and (b) acknowledge and agree that the

Proposed Sale shall not be deemed to utilize the basket set forth in clause

(C) of Section 5.09 for sales, leases and transfers of the assets of the

Company and its Subsidiaries; provided that the foregoing waiver shall be

effective only if (i) the date the Proposed Sale is consummated shall be on

or prior to June 30, 2004, and (ii) the Company shall prepay Loans in an

amount equal to 100% of the Net Cash Proceeds of the Proposed Sale as

required by Section 2.11(f) of the Credit Agreement.

	Collateral Release.  The Banks hereby

acknowledge and agree that, in accordance with the provisions of the

Security Agreement, upon the completion of the sale of the Gustafson

Equity Interests, any security interest held by the Collateral Agent for the

benefit of the Secured Parties in the Equity Interests which are sold or

otherwise transferred in such sale will, subject to the application of the

proceeds of such sale as provided in Section 2 hereof, terminate without

further action on the part of the Company, the Collateral Agent or any other

party.

	Waiver Fee.  The Company agrees to pay to

the Administrative Agent, for the account of each Bank that shall have

executed and delivered to the Syndication Agent a counterpart of this

Waiver prior to 5:00 p.m., New York City time, on March 26, 2004, a

nonrefundable waiver fee (the "Waiver Fee") equal to .05% of the aggregate

amount of such Bank's Commitment, whether used or unused, on the date

hereof, payable in immediately available funds.

	Representations and Warranties.  To induce the

other parties hereto to enter into this Waiver, the Company hereby

represents and warrants that:

	The representations and warranties set forth in Article 4 of the Credit

Agreement are true and correct on and as of the date hereof, except (i) to the extent such

representations and warranties specifically relate to an earlier date and (ii) with respect to

Section 4.04(b) of the Credit Agreement, as to any matter which has heretofore been

disclosed in writing by the Company to the Banks;
	No Default or Event of Default has occurred and is continuing; 
	This Waiver shall, when duly executed and delivered by the Company

and upon satisfaction of the conditions to effectiveness of this Waiver set forth in Section

6 below, constitute a legal, valid and binding obligation of the Company enforceable

against the Company in accordance with its terms.

	Conditions to Effectiveness.  This Waiver shall

become effective on the date on which each of the following conditions has

been satisfied:

	The Syndication Agent shall have received counterparts of this Waiver

that, when taken together, bear the signatures of the Company and the Required Banks.
	The Administrative Agent shall have received payment of the Waiver

Fee.

	Effect of Waiver.  Except as expressly set

forth herein, this Waiver shall not by implication or otherwise limit, impair,

constitute a waiver of or otherwise affect the rights and remedies of the

Banks under the Credit Agreement or any other Loan Document (except to

the extent Section 3 hereof constitutes a release of all Liens, if any, on the

Gustafson Equity Interests pursuant to the Security Agreement), and shall

not alter, modify, amend or in any way affect any of the terms, conditions,

obligations, covenants or agreements contained in the Credit Agreement or

any other Loan Document, all of which are ratified and affirmed in all

respects and shall continue in full force and effect.  Nothing herein shall be

deemed to entitle the Company 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 other

Loan Document in similar or different circumstances.  This Waiver shall

apply and be effective only with respect to the provisions of the Credit

Agreement specifically referred to herein.

	Nothing herein will be deemed to reduce the obligations of any

Subsidiary Guarantor under the Subsidiary Guarantee Agreement, which shall remain in

full force and effect.

	Counterparts.  This Waiver may be executed

by one or more parties to this Waiver in any number of separate

counterparts, each of which shall constitute an original, but all of which

when taken together shall constitute but one contract.  Delivery of an

executed counterpart of a signature page of this Waiver by facsimile

transmission shall be as effective as delivery of a manually executed

counterpart hereof.

	APPLICABLE LAW.  THIS WAIVER

SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED

BY THE LAWS OF THE STATE OF NEW YORK.

	Headings.  Section headings used herein are

for convenience of reference only, are not part of, and are not to be taken

into consideration in interpreting, this Waiver.

	Expenses.  The Company shall reimburse the

Syndication Agent and the Collateral Agent for their reasonable out-of-

pocket expenses in connection with this Waiver, including the reasonable

fees, charges and disbursements of Cravath, Swaine & Moore LLP.

IN WITNESS WHEREOF, the Company, the Administrative Agent and

the undersigned Banks have caused this Waiver to be duly executed by their duly

authorized officers, all as of the date first above written.
CROMPTON CORPORATION,

 

 

By

Name: 

Title:

 

 

By

Name: 

Title:

Each of the Subsidiary Guarantors hereby

acknowledges receipt of, and consents to the terms

of, this Waiver.

 

UNIROYAL CHEMICAL COMPANY, INC.

(D/B/A

CROMPTON MANUFACTURING COMPANY,

INC.),

 

 

By

Name: 

Title:

 

 

By

Name: 

Title:

 

 

CROMPTON INTERNATIONAL CORPORATION,

 

 

By

Name: 

Title:

 

 

By

Name: 

Title:

 

 

 

CITICORP USA, INC., individually, as

Administrative Agent and as Collateral Agent,

 

 

By

Name: 

Title:

JPMORGAN CHASE BANK (formerly known as

THE CHASE MANHATTAN BANK), individually

and as Syndication Agent,

 

 

By

Name: 

Title:

 

 

Name: 

Title:

270 Park Avenue

New York, NY 10017

Signature Page to the Crompton

corporation WAIVER dated as of

MARCH 26, 2004 to the FIVE-YEAR Credit

Agreement dated as of October 28,

1999, as amended through the date

hereof

 

Name of Institution:__________________________________

By

Name: 

Title:FIRST AMENDMENT

                                                           Sixth Amendment

                                                        Dated as of April 15, 2004

                                                                           to

                                                       Amended and Restated

                                                 Receivables Sale Agreement

                                                       Dated as of January 18, 2002

       This Sixth Amendment (the "Amendment"), dated as of April 15, 2004, is entered into

among Crompton & Knowles Receivables Corporation (the "Seller"), Crompton Corporation (as

successor by merger with Crompton & Knowles Corporation) (the "Initial Collection Agent"),

Amsterdam Funding Corporation, a Delaware corporation ("Amsterdam"), ABN AMRO Bank

N.V., as Amsterdam's program letter of credit provider (the "Enhancer"), the Liquidity Provider

listed on the signature page hereof (the "Liquidity Provider") and ABN AMRO Bank N.V., as

agent for Amsterdam, the Enhancer and the Liquidity Provider (the "Agent").

       Reference is hereby made to that certain Amended and Restated Receivables Sale

Agreement, dated as of January 18, 2002 (as amended, supplemented or otherwise modified

through the date hereof, the "Sale Agreement"), among the Seller, the Initial Collection Agent,

Amsterdam, the Enhancer, the Liquidity Provider and the Agent.  Terms used herein and not

otherwise defined herein which are defined in the Sale Agreement or the other Transaction

Documents (as defined in the Sale Agreement) shall have the same meaning herein as defined

therein.

       For good and valuable consideration, the receipt and adequacy of which are hereby

acknowledged, the parties hereto hereby agree as follows:

       Section 1.Upon execution by the parties hereto in the space provided for that purpose

below, the Sale Agreement shall be, and it hereby is, amended as follows:
        (a)      The defined term "Aggregate Commitment" appearing in Schedule I of the

Sale Agreement is hereby amended in its entirety to read as follows
"Aggregate Commitment" means $117,300,000, as such

amount may be reduced pursuant to Section 1.6.

        (b)      Clause (vi) of the defined term "Eligible Receivables" appearing in

Schedule I of the Sale Agreement is hereby amended by deleting the following

parenthetical:
"(other than, prior to the occurrence of the Receivable

Setoff Downgrade Event, a Receivable Setoff)"

        (c)      The date "April 15, 2004" appearing in clause (d) of the defined term

"Liquidity Termination Date" appearing in Schedule I of the Sale Agreement is deleted

and replaced with the date "April 14, 2005".

        (d)      The defined term "Purchase Limit" appearing in Schedule I of the Sale

Agreement is hereby amended in its entirety to read as follows:
"Purchase Limit" means $115,000,000.

        (e)The date "April 15, 2004" appearing in clause (ii) of the defined term

"Termination Date" appearing in Schedule I of the Sale Agreement is deleted and

replaced with the date "April 14, 2005".

        (f)      Exhibit G of the Sale Agreement is hereby amended in its entirety to

reflect the addition of account 910-252-8917 (the "New Account") and as so amended

shall read as set forth on Exhibit G attached hereto.

        (g)      The following new Section 5.1(n) is hereby added to the Sale Agreement

as follows:
            (n)       Notwithstanding the provisions in Section 5.1(i) of

the Receivables Sale Agreement, Obligors originated by Crompton

Corporation that are currently sending Collections into accounts

not listed on Exhibit G may continue to send Collections to such

accounts through and including July 14, 2004.  On or before

July 14, 2004, the Collection Agent shall have established the New

Account into which such Collections shall be deposited.  At all

times on and after July 14, 2004, such New Account shall be

subject to a deposit account control agreement substantially in the

form of Exhibit A hereto.  For purposes of this Agreement, such

deposit account control agreement shall be known as a "Lock-box

Agreement", such New Account shall be known as a "Lock-box

Account" and the financial institution at which such New Account

is maintained shall be known as a "Lock-box Bank".  In addition,

on or after July 15, 2004, the Collection Agent shall take all actions

requested by the Agent to verify that all such Collections are being

deposited into the New Account listed on Exhibit G.

               Section 2.       The Sale Agreement, as amended and supplemented hereby or as

contemplated herein, and all rights and powers created thereby and thereunder or under the other

Transaction Documents and all other documents executed in connection therewith, are in all

respects ratified and confirmed.  From and after the date hereof, the Sale Agreement shall be

amended and supplemented as herein provided, and, except as so amended and supplemented,

the Sale Agreement, each of the other Transaction Documents and all other documents executed

in connection therewith shall remain in full force and effect.  By executing this Amendment,

Crompton Corporation confirms that it is the "Guarantor" under the Limited Guaranty and that

the Limited Guaranty and Crompton Corporation's obligations thereunder remain in full force

and effect.

             Section 3.      This Amendment shall become effective only once (i) the Agent has

received executed counterparts of this Amendment and (ii) a renewal fee in the amount of

$57,500.

            Section 4.       This Amendment may be executed in two or more counterparts, each of

which shall constitute an original but both or all of which, when taken together, shall constitute

but one instrument.

            Section 5.       This Amendment shall be governed and construed in accordance with the

internal laws of the State of New York.

 

In Witness Whereof, the parties have caused this Amendment to be executed and

delivered by their duly authorized officers as of the date first above written.
ABN AMRO Bank N.V., as the Agent, as the

Liquidity Provider and as the Enhancer

By:

Title:

By:

Title:

Amsterdam Funding Corporation

By:

Title:

Crompton & Knowles Receivables

Corporation

By:

Title:

 

Crompton Corporation (as successor by

merger with Crompton & Knowles

Corporation)

By:

Title:

If you agree to and accept the foregoing, please so indicate by executing and returning to

us the enclosed duplicate of this letter.
Very truly yours,

Crompton Corporation

By:

Name:

Title:

Crompton & Knowles Receivables

Corporation

By:

Name:

Title:

Address:

 

Accepted and Agreed

as of date set forth above:

ABN AMRO Bank N.V.

By:
Name:

Title:

By:
Name:

Title:

Acknowledged and Agreed

as of date set forth above:

JPMorgan Chase Bank

By:
Name:

Title:

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