Document:

Exhibit 10.87

 

LETTER AGREEMENT REGARDING RECEIVABLES PURCHASE AGREEMENT

 

THIS
LETTER AGREEMENT, dated as of May 31, 2007 (as amended, restated or
otherwise modified from time to time, the “Letter Agreement”) by and among
CHEMTURA CORPORATION (as successor to Crompton & Knowles Corporation) (“Chemtura”),  a Delaware corporation, as the Initial
Collection Agent and as a Seller, HATCO CORPORATION (“Hatco”),  a New Jersey corporation, ANDEROL, INC. (“Anderol”),  a New Jersey corporation, and CROMPTON &
KNOWLES RECEIVABLES CORPORATION, a Delaware corporation, as Buyer (the “Buyer”)  refers
to the RECEIVABLES PURCHASE AGREEMENT, dated as of September 28, 2006 (as
amended, amended and restated or otherwise modified from time to time, the “Agreement”),
by and among Chemtura, as the Initial Collection Agent, the Buyer, and certain
affiliates of Chemtura named therein, as sellers (the “Sellers”).

 

W I T N E S S E T H:

 

WHEREAS,
Chemtura and the Buyer have previously entered into and are currently party to
the Agreement pursuant to which Chemtura and certain other affiliates of
Chemtura agreed to sell to Buyer, and Buyer agreed to buy from those Persons,
all of the Receivables and Related Assets generated by each such Person;

 

WHEREAS,
pursuant to the Fourth Amended and Restated Receivables Sale Agreement, dated
as of September 28, 2006, among the Buyer, the Initial Collection Agent,
Amsterdam Funding Corporation (“Amsterdam”), Atlantic Asset Securitization LLC
(“Atlantic”), Variable Funding Capital Company, LLC (“VFCC”), ABN AMRO Bank
N.V. as the Agent and as Amsterdam Purchaser Agent, Wachovia Bank, National
Association, as the LC Issuer and as VFCC Purchaser Agent, Calyon New York
Branch as the Atlantic Purchaser Agent, the other Purchaser Agents from time to
time party thereto, the Related Bank Purchasers from time to time party thereto
and the other Conduit Purchasers from time to time party thereto (as amended,
restated or otherwise modified from time to time in accordance with its terms,
the “Sale
Agreement”),  the Buyer has
transferred to the Purchaser Agents, for the benefit of the Conduit Purchasers
and the Related Bank Purchasers, all of Buyer’s right, title and interest in
and to the Agreement, including, without limitation, interests in the
Receivables sold to Buyer pursuant thereto;

 

WHEREAS,
each of Hatco and Anderol wishes to sell, transfer and assign Receivables and
Related Purchased Assets to Buyer as though it were a Seller under the
Agreement and Buyer wishes to purchase Receivables and Related Purchased Assets
from each of Hatco and Anderol as though it were a Seller under the Agreement,
all effective as of May 31, 2007;

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

 

SECTION 1.
Defined Terms. Unless otherwise amended by the terms of this Agreement,
terms used in this Letter Agreement shall have the meanings assigned in the
Agreement.

 

 

SECTION 2.
Adoption of Agreement.

 

(a)             Each of the
parties hereto agrees that, effective as of May 31, 2007 (the “Effective
Date”), each of Hatco and Anderol agrees to sell, transfer, assign, set over
and otherwise convey to Buyer, and Buyer agrees to purchase from each of Hatco
and Anderol, all Receivables and other Related Purchased Assets originated by
Hatco and Anderol on the terms and conditions set forth in the Agreement, a
copy of which is attached as Exhibit A hereto.

 

(b)             From and after the
Effective Date, each of the parties hereto shall consider the term “Seller” to
include each of Hatco and Anderol. In addition, from and after the Effective
Date, each of Hatco and Anderol hereby agree to be bound by all of the terms
and conditions applicable to a Seller contained in the Agreement and the other
Transaction Documents.

 

(c)             In connection with
the execution and delivery of this Amendment, each of Hatco and Anderol hereby
makes, with respect to itself, the representations and warranties set forth in Section 5.1
of the Agreement.

 

Hatco
is a corporation organized under the laws of the State of New Jersey. The chief
executive office of Hatco is located at 1020 King George Post Road, Fords, New
Jersey 08863. Hatco has no trade names and has not conducted business under any
other name since the date of its incorporation other than Hatco Chemical
Corporation and Farben Corporation.

 

Anderol
is a corporation organized under the laws of the State of New Jersey. The chief
executive office of Anderol is located at 215 Merry Lane, East Hanover, NJ 07936.
Anderol has no trade names other than Royal Lubricants and has not conducted
business under any other name since the date of its incorporation other than
RLI Acquisition, Inc. and Royal Lubricants, Inc.

 

SECTION 3.
Execution in Counterparts, Effectiveness. This Letter Agreement may be
executed by the parties hereto in several counterparts, each of which shall be
executed by the parties hereto and be deemed an original and all of which shall
constitute together but one and the same agreement.

 

SECTION 4.
Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REFERENCE TO CONFLICT OF LAW
PRINCIPLES, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[Signatures Follow]

 

 

IN
WITNESS WHEREOF, Chemtura, as the Initial Collection Agent and as a Seller,
Hatco and Anderol each as a Seller, the Buyer, and the Agent have caused this
Letter Agreement to be executed by their respective officers thereunto duly
authorized as of the day and year first above written.

 

	
   

  	
   

  	
  CHEMTURA
  CORPORATION (as successor to Crompton

  
	
   

  	
   

  	
  &
  Knowles Corporation),

  
	
   

  	
   

  	
  as
  Initial Collection Agent and as Seller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  199
  Benson Road

  
	
   

  	
   

  	
   

  	
  Middlebury,
  Connecticut 06749

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HATCO
  CORPORATION, as Seller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  199
  Benson Road

  
	
   

  	
   

  	
   

  	
  Middlebury,
  Connecticut 06749

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ANDEROL,
  INC., as Seller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  199
  Benson Road

  
	
   

  	
   

  	
   

  	
  Middlebury,
  Connecticut 06749

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CROMPTON &
  KNOWLES RECEIVABLES

  
	
   

  	
   

  	
  CORPORATION,

  
	
   

  	
   

  	
  as
  the Buyer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  199
  Benson Road

  
	
   

  	
   

  	
   

  	
  Middlebury,
  Connecticut 06749

  
						

 

Letter Agreement

 

 

	
  CONSENTED
  TO AND AGREED BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ABN
  AMRO BANK N.V.,

  	
   

  	
   

  
	
  as
  Agent and as Purchaser Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  
	
  Title:

  	
  SVP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David J. Donofrio

  	
   

  	
   

  
	
   

  	
  DAVID J. DONOFRIO

  	
   

  	
   

  
	
  Title:

  	
  DIRECTOR

  	
   

  	
   

  
					

 

	
  Address:

  	
  Structured
  Finance, Asset Securitization

  
	
   

  	
  540
  West Madison Street

  
	
   

  	
  Chicago,
  IL 60661

  
	
   

  	
  Attention:
  Administrator Amsterdam

  
	
   

  	
  Telephone:

  	
  (312)
  904-6263

  
	
   

  	
  Telecopy:

  	
  (312)
  904-6376

  

 

Letter Agreement

 

 

	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  	
   

  
	
  as LC Issuer and as Purchaser Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael J. Landry

  	
   

  
	
   

  	
  Michael J. Landry

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  171 17th Street NW, 4th Floor

  
	
   

  	
  Atlanta, GA 30363

  
					

Letter Agreement

 

 

	
  CALYON
  NEW YORK BRANCH,

  	
   

  
	
  as
  Purchaser Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Sam Pilcer

  	
   

  
	
   

  	
  SAM
  PILCER

  	
   

  
	
  Title:

  	
  MANAGING
  DIRECTOR

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Kostantina Kourmpetis

  	
   

  
	
   

  	
  Kostantina
  Kourmpetis

  	
   

  
	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  1301
  Avenue of the Americas

  
	
   

  	
  New
  York, New York 10019

  
						

 

Letter Agreement

 

 

EXHIBIT A

 

RECEIVABLES PURCHASE AGREEMENTExhibit 10.88

 

AMENDMENT NUMBER 2 TO AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

 

THIS AMENDMENT NUMBER 2, dated as of June 28, 2007 (the “Amendment”) to
the AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of September 28,
2006 (as amended, modified and supplemented from time to time in accordance
with its terms, the “Agreement”),
is by and among CHEMTURA CORPORATION, a Delaware corporation (“Chemtura”), as
the Initial Collection Agent, Chemtura, Bio-Lab, Inc. and Great Lakes
Chemical Corporation, as sellers (each a “Seller” and collectively, the “Sellers”, and
CROMPTON & KNOWLES RECEIVABLES CORPORATION, a Delaware corporation (“Buyer”), and
is consented to by ABN AMRO BANK N.V. (acting at the direction of the
Instructing Group).

 

W I T N E S S E T H:

 

WHEREAS, the parties have previously entered into the Agreement
pursuant to which Chemtura and certain other entities agreed to sell to Buyer,
and Buyer agreed to buy from each such entity, all of the Receivables and
Related Assets generated by each such entity;

 

WHEREAS, the parties hereto desire to amend the Agreement in certain
respects as set forth herein to exclude certain Receivables generated by the
Sellers;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

 

SECTION 1. Defined Terms.   Unless otherwise
amended by the terms of this Agreement, terms used in this Amendment shall have
the meanings assigned in the Agreement, or if not defined therein, in the Sale
Agreement.

 

SECTION 2. Amendments to Agreement.

 

(a)         From and after the date hereof, Section 1.1(b)(v) of
the Agreement shall be amended and restated in its entirety as follows:

 

“              (v)           all Records relating to any of the
foregoing; provided
that, from and after June 22, 2007, no Excluded Assets
(including any items set forth in paragraphs (i)-(v) hereof) shall be sold
by any Seller.”;

 

(b)        From and after the date hereof, Section 1.1
of the Agreement shall be amended by adding the following sentences at the end
of such Section:

 

“Notwithstanding anything set forth in this Section 1.1 or
otherwise in this Agreement or the other Transaction Documents, from and after June 22,
2007, no Excluded Assets shall be sold or contributed by any Seller to the
Buyer. From and after June 22, 2007, all calculations made pursuant to the
terms of this Agreement and the other Transaction Documents and all
requirements hereunder shall exclude Excluded Assets.”;

 

 

(c)           From
and after the date hereof, Section 1.7(a)(iv) of the Agreement shall
be amended and restated in its entirety as follows:

 

“              (iv)         all
Records relating to any of the foregoing; provided
that, from and after June 22, 2007, no Excluded Assets (including
any items set forth in paragraphs (i)-(iv) hereof) shall be contributed by
any Seller to the Buyer (the items listed above in clauses (ii), (iii) and
(iv) being referred to herein as the “Related Contributed Assets”).”;

 

(d)           From
and after the date hereof, Appendix A to the Agreement shall be amended by
adding the following definition in appropriate alphabetical order therein:

 

“ “Excluded
Asset” means any Receivable or Related Asset relating
to (i) the EPDM product line or (ii) the Chemical Foaming Agents
product line associated with the rubber industry (but not those associated with
plastic additives).”.

 

SECTION 3. Repurchase; Release of Lien. (a) On June 28,
2007, Chemtura shall repurchase any Excluded Assets owned by the Buyer on June 22,
2007, which Excluded Assets are set forth on Schedule 1 hereto and shall pay to
the Buyer on such date in immediately available funds a purchase price (the “Purchase
Price”) in an amount equal to the sum of the then Unpaid Balance of each
Receivable that is an Excluded Asset, which amount is $19,164,638.95.

 

(b)           Upon
receipt by the Buyer of the Purchase Price in immediately available funds, the
Buyer will release, without the need for further action, its lien and security
interest in and to the Excluded Assets. The Buyer will thereafter execute, at
the expense of Chemtura, release documents that, when delivered and registered
in the appropriate public offices, will evidence the release of the Excluded
Assets from the lien created pursuant to the terms of the Agreement.

 

SECTION 4. Effectiveness of Agreement. Except as expressly
amended by the terms of this Amendment, all terms and conditions of the
Agreement, as amended, shall remain in full force and effect.

 

SECTION 5. Execution in Counterparts, Effectiveness. This
Amendment may be executed by the parties hereto in several counterparts, each
of which shall be executed by the parties hereto and be deemed an original and
all of which shall constitute together but one and the same agreement.

 

SECTION 6. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
CONFLICT OF LAW PRINCIPLES, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK.

 

[Signatures Follow]

 

2

 

IN
WITNESS WHEREOF, Chemtura, as the Initial Collection Agent and as a Seller,
Chemtura USA, Great Lakes, BioLab, the Buyer and the Agent have caused this
Amendment Number 1 to the Amended and Restated Receivables Purchase Agreement
to be executed by their respective officers thereunto duly authorized as of the
day and year first above written.

 

	
   

  	
  CHEMTURA CORPORATION (as successor to Crompton 

  & Knowles Corporation), 

  as Initial Collection Agent and as Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  199 Benson Road

  
	
   

  	
   

  	
  Middlebury, Connecticut 06749

  
					

 

 

	
   

  	
  GREAT LAKES CHEMICAL CORPORATION, as Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  199 Benson Road

  
	
   

  	
   

  	
  Middlebury, Connecticut 06749

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BIO-LAB, INC., as Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  199 Benson Road

  
	
   

  	
   

  	
  Middlebury, Connecticut 06749

  
							

 

AMENDMENT 2 TO THE A&R RECEIVABLES
PURCHASE AGREEMENT

 

 

	
   

  	
  CROMPTON & KNOWLES RECEIVABLES

  CORPORATION, 

  as the Buyer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  199 Benson Road

  
	
   

  	
   

  	
  Middlebury, Connecticut 06749

  
					

 

AMENDMENT 2 TO THE A&R RECEIVABLES
PURCHASE AGREEMENT

 

 

	
  CONSENTED TO AND AGREED BY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ABN AMRO BANK N.V.,

  	
   

  
	
  as Agent at the direction of the Instructing Group

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  Title:

  	
  SVP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
  Title:

  	
  VP

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  540 West Madison

  	
   

  
	
   

  	
  Chicago, IL 60661

  	
   

  
						

 

AMENDMENT 2 TO THE A&R RECEIVABLES PURCHASE AGREEMENT

 

 

SCHEDULE 1

 

LIST OF EXCLUDED ASSETS TO BE REPURCHASED

 

AMENDMENT 2 TO THE A&R RECEIVABLES
PURCHASE AGREEMENT

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