Document:

CREDIT SUPPORT ANNEX

to the SCHEDULE

to the

MASTER AGREEMENT

dated as of June 25, 2009

between

GOLDMAN SACHS BANK USA

("Party A")

And

NEWMARKET CORPORATION

("Party B")

Paragraph 13.Elections and Variables

(a) Security Interest for "Obligations".  The term "Obligations" as used in this Annex includes the following additional obligations:

With respect to Party A:Not Applicable.

With respect to Party B:Not Applicable.

(b)Credit Support Obligations.

(i)Delivery Amount, Return Amount and Credit Support Amount.

(A)"Delivery Amount" has the meaning specified in Paragraph 3(a).

(B)"Return Amount" has the meaning specified in Paragraph 3(b).

	"Credit Support Amount" means, for any Valuation Date (i) the Secured Party's Exposure for that Valuation Date plus (ii) the aggregate of all Independent Amounts applicable to the Pledgor, if any, minus (iii) the Pledgor's Threshold; provided, however, that (x) in the case where the sum of the Independent Amounts applicable to the Pledgor exceeds zero, the Credit Support Amount will not be less than the sum of all Independent Amounts applicable to the Pledgor and (y) in all other cases, the Credit Support Amount will be deemed to be zero whenever the calculation of Credit Support Amount yields an amount less than zero.

(ii)Eligible Collateral.  The items in the table below will qualify as "Eligible Collateral" for the party specified, provided, however, letter of credit shall be the only Eligible Collateral if, as of any Valuation Date, the Value of all Cash Posted Collateral, held by Party A has reached $20,000,000.

	 	 	
Party B
	
Valuation Percentage

	
(A)
	
Cash
	
Yes
	
100%

	
(B)
	
letter of credit from a bank and in a form acceptable to Party A
	
Yes
	
100% of its face value, provided however if it expires within twenty days of the Valuation Date, its Value shall be zero and the Secured Party shall be entitled to draw down the letter of credit up to its full face value unless adequate Substitute Credit Support has previously been provided

(iii)Other Eligible Support.  The following items will qualify as "Other Eligible Support" for the party specified: None.

(iv)Thresholds.

(A)"Independent Amount" means with respect to Party A: Not Applicable, it being understood that Party A shall only be a Secured Party hereunder and not a Pledgor and shall be under no obligation to Transfer collateral hereunder.

"Independent Amount" means with respect to Party B:  an amount equal to 5% of the notional value of all Transactions between the parties, unless otherwise specified in the Confirmation.

(B)"Threshold" means with respect to Party A:   Infinity, it being understood that Party A shall only be a Secured Party hereunder and not a Pledgor and shall be under no obligation to Transfer collateral hereunder.

"Threshold" means with respect to Party B: Zero.

(C)"Minimum Transfer Amount" means with respect to Party A and Party B, USD250,000; provided, however, that if an Event of Default or Specified Condition has occurred and is continuing with respect to a party, the Minimum Transfer Amount with respect to such party shall be zero.

(D)Rounding. The Delivery Amount and the Return Amount will be rounded up and down, respectively, to the nearest integral multiple of USD10,000.

(c)Valuation and Timing.

(i)"Valuation Agent" means Party A.  

(ii)"Valuation Date" means each day, provided, however that a Valuation Date shall be a Local Business Day for both parties. 

(iii)"Valuation Time" means the close of business in the Relevant Market on the Local Business Day immediately preceding the Valuation Date or date of calculation as applicable; provided, however, that the calculations of Value and Exposure will, as far as practicable, be made as of approximately the same time on the same date.

For the purposes of this provision, "Relevant Market" means:

	with respect to the calculation of Value, the principal market in which the relevant Eligible Credit Support is traded; and

	with respect to the calculation of Exposure, the location most closely associated with the relevant Transaction;

each as determined by the Valuation Agent, or as otherwise agreed between the parties.

(iv)"Notification Time" means no later than 1:00 p.m., New York time, on a Local Business Day; provided, however, that the Valuation Agent will only give notice of its calculations to a party upon request by such party.

(d)Conditions Precedent and Secured Party's Rights and Remedies.  The following Termination Event(s) will be a "Specified Condition" for the party specified (that party being the Affected Party if the Termination Event occurs with respect to that party): With respect to Party A and Party B, Credit Event Upon Merger, Additional Termination Event and Illegality.

(e)Substitution.

(i)"Substitution Date" has the meaning specified in Paragraph 4(d)(ii).

(ii)Consent.  The Pledgor is not required to obtain the Secured Party's consent for any substitutions pursuant to Paragraph 4(d).

(f)Dispute Resolution.

(i)"Resolution Time" means 1:00 p.m., New York time, on the Local Business Day following the date on which the notice is given that gives rise to a dispute under Paragraph 5.

(ii)"Value".  For the purpose of Paragraph 5(i)(C) and 5(ii), the Value of Posted Credit Support will be calculated as follows:

(A)The Value of Cash will be the face amount thereof, multiplied by the applicable Valuation Percentage.

(B)The Value of letter of credit will 100% of its face value, provided however if it expires within twenty days of the Valuation Date, its Value shall be zero and the Secured Party shall be entitled to draw down the letter of credit up to its full face value unless adequate Substitute Credit Support has previously been provided.

(iii)"Alternative".  The provisions of Paragraph 5 will apply.

(g)Holding and Using Posted Collateral.

(i)Eligibility to Hold Posted Collateral.  

Party A will be entitled to hold Posted Collateral pursuant to Paragraph 6(b), provided that the following conditions applicable to it are satisfied:

(A)Party A is not a Defaulting Party.

	No Specified Condition has occurred and is continuing with respect to Party A.

(ii)Use of Posted Collateral.  The provisions of Paragraph 6(c) will apply to Party A and will not apply to Party B.

(h)Distributions and Interest Amount.

(i)Interest Rate.   The "Interest Rate" will be the Federal Funds (Effective) rate published in N.Y. Federal Reserve Statistical Release H.15(519) for that day, or such other recognized source used for the purpose of displaying such rate.  If the Interest Rate for the relevant day is a negative number, such Interest Rate will be deemed to be zero.

(ii)Transfer of Interest Amount.  The Transfer of the Interest Amount will be made on or prior to the fifth Local Business Day of each calendar month and on any Local Business Day when the cash collateral is returned in its entirety.   

(iii)Alternative to Interest Amount.  Not Applicable.

(iv)Interest Period.  The definition of "Interest Period" in Paragraph 12 shall be deleted and replaced by the following:-

""Interest Period" means the period from (and including) the first Local Business Day of a calendar month to (and excluding) the first Local Business Day of the following calendar month." 

(i)Other Eligible Support and Other Posted Support.

(i)"Value" with respect to Other Eligible Support and Other Posted Support means:  Not Applicable.

(ii)"Transfer" with respect to Other Eligible Support and Other Posted Support means: Not Applicable.

(j)Demands and Notices.

All demands, specifications and notices under this Annex will be made pursuant to the Notices Section of this Agreement, unless otherwise specified here:

With respect to Party A:85 Broad Street

New York, New York 10004

Telephone: (212) 902-1444

Facsimile:  (212) 346-4237

Attention:   Swap Operations

E-mail: ficc-swaps-collateral@gs.com

With respect to Party B:Newmarket Corporation
330 South Fourth Street

Richmond VA 23219-4304
Attention: David A. Fiorenza, Malcolm R. West and Cameron Warner

Telephone:(804)788-5055

Facsimile:(804)788-5435

(k)Addresses for Transfers.

Party A:To be specified by Party A in writing.

Party B:To be specified by Party B in writing.

(l)Other Provisions:

"One-Way Credit Support Agreement". Nothwithstanding anything in this Agreement to the contrary, "Secured Party" shall mean Party A and "Pledgor" shall mean Party B in all instances in this Annex.  This Annex provides for one-way transfer of Credit Support from Party B to Party A.

 

IN WITNESS WHEREOF the parties have executed this Annex as of the date specified on the first page hereof.

	
GOLDMAN SACHS BANK USA
	 	
NEWMARKET CORPORATION

	
/s/ Susan Rudov
	 	
/s/ D. A. Fiorenza

	
Name: Susan Rudov
	 	
Name:  D. A. Fiorenza

	
Title: Vice President
	 	
Title:  VP, Treasurer & Principal Financial Officer

	
Date: June 25, 2009
	 	
Date: June 25, 2009SUPPLEMENT AGREEMENT

SUPPLEMENT AGREEMENT

 

THIS SUPPLEMENT AGREEMENT (this "Agreement") dated as of June 30, 2009, is being executed and delivered pursuant to that certain Second Amended and Restated Revolving Credit Agreement, dated as of December 21, 2006, as amended by the First Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of September 26, 2008, as amended by the Second Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of March 24, 2009 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), among NEWMARKET CORPORATION, a Virginia corporation, as Borrower, the Lenders from time to time party thereto, PNC Bank, National Association, in its capacity as Documentation Agent for the Lenders, General Electric Capital Corporation and Bank of America, N.A., in their capacities as Co-Syndication Agents for the Lenders, and SUNTRUST BANK, as Administrative Agent, as issuing bank and as swingline lender, by Citizens Bank of Pennsylvania (the "Increasing Lender") and the Borrower, and accepted by the Administrative Agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

RECITALS

A.Pursuant to Section 2.23 of the Credit Agreement, the Borrower has notified the Administrative Agent and each of the Lenders that the Borrower proposes to increase the Aggregate Revolving Commitments under the Credit Agreement by the amount of $10,000,000 provided, however, that at no time shall the Aggregate Commitments exceed the unsubscribed amount of the Additional Commitment Amount.

B.The Increasing Lender has agreed to increase its Commitment to the amount specified for it on Schedule I attached to this Agreement.

C.The parties to this Agreement are entering into this Agreement for purposes of effecting the increase in the Commitment of the Increasing Lender, as contemplated by Section 2.23 of the Credit Agreement.

Accordingly, each of the parties to this Agreement hereby agrees as follows:

1.The Increasing Lender hereby agrees to increase the amount of its Commitment to the Borrower under the Credit Agreement to the amount shown as being its increased Commitment amount on Schedule I attached to this Agreement.  Such increase shall take effect for all purposes of the Credit Agreement on the Effective Date (as hereinafter defined) of this Agreement.  

2.Each party hereto acknowledges and agrees that the Commitments of the Increasing Lender and the other Lenders under the Credit Agreement are several and not joint commitments and obligations of such Lenders.  After giving effect to the increased Commitment as provided in this Agreement, each party further acknowledges and agrees that (i) the Commitments in effect for all Lenders under the Credit Agreement shall be those shown on Schedule II attached to this Agreement, (ii) Schedule II attached to the Credit Agreement shall be amended and restated as set forth on Schedule II attached to this Agreement, and (iii) upon any increase in the aggregate amount of the Revolving Commitments that is not pro rata among all Lenders, any and all Base Rate Loans and Eurodollar Loans, and any and all Letters of Credit that are outstanding under the Credit Agreement on the Effective Date shall be subject to the provisions of Section 2.23(e) of the Credit Agreement.

3.Each party hereto agrees that this Agreement and the effectiveness of the increased Commitment as provided in this Agreement shall be subject to satisfaction by the Borrower of the following conditions and requirements:

(a)The Borrower shall have delivered to the Administrative Agent the following in form and substance satisfactory to the Administrative Agent:

(i)a counterpart of this Agreement signed by the Increasing Lender, the Borrower and the Administrative Agent;

(ii)a duly executed Revolving Credit Note payable to the Increasing Lender to the extent requested by the Increasing Lender; and

(iii)a certification on behalf of the Borrower as of the Effective Date of this Agreement that (x) no Default or Event of Default then exists, (y) all representations and warranties of the Borrower set forth in the Credit Agreement are true and correct in all material respects on such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date), and (z) since the date of the financial statements of the Borrower described in Section 5.1 of the Credit Agreement, there has been no change which has had or could reasonably be expected to have a Material Adverse Effect.

(b)The Borrower shall have paid to the Increasing Lender a fee equal to 0.50% of the increase in Commitment of the Increasing Lender.

(c) The Borrower shall have paid to the Administrative Agent all costs and expenses incurred by the Administrative Agent in connection with this Supplement Agreement and the transactions contemplated herein, including without limitation, all reasonable fees and expenses of counsel for the Administrative Agent.

The date on which the foregoing conditions have been satisfied shall be the "Effective Date" of this Agreement.

4.The Borrower represents and warrants to the Administrative Agent and the Lenders that this Agreement has been duly authorized, executed and delivered by the Borrower, and that the Credit Agreement, as supplemented and amended hereby, constitutes the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors' rights generally and by general principles of equity.

5.  The Administrative Agent and Required Lenders have waived the thirty (30) days' written notice requirement of Section 2.23(a) of the Credit Agreement.

6.Except as supplemented and amended hereby, the Credit Agreement and all other documents executed in connection therewith shall remain in full force and effect.  The Credit Agreement, as supplemented and amended hereby, and all rights, powers and obligations created thereby or thereunder and under the Loan Documents and all such other documents executed in connection therewith are in all respects ratified and confirmed.

7.This Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract.  This Agreement constitutes the entire agreement among the parties hereto regarding the subject matter hereof and supersedes all prior agreements and understandings, oral or written, regarding such subject matter.

8.THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

IN WITNESS WHEREOF, the Increasing Lender and the Borrower have caused this Agreement to be duly executed and delivered by their respective authorized officers and representatives, and the Administrative Agent, for the benefit of the Increasing Lender, and all other Lenders under the Credit Agreement, has caused the same to be accepted by its authorized officer, as of the day and year first above written.

 

CITIZENS BANK OF PENNSYLVANIA,

as Increasing Lender

 

By:/s/ Leslie D. Broderick

Name: Leslie D. Broderick

Title: SVP

NEWMARKET CORPORATION,

as Borrower

By:/s/ D. A. Fiorenza

Name: D. A. Fiorenza
Title: Vice President, Treasurer and Principal Financial Officer

 

 

ACCEPTED THIS 30th 

DAY OF JUNE, 2009:

SUNTRUST BANK, 

as Administrative Agent

 

By:/s/ Mark A. Flatin

Name: Mark A. Flatin

Title: Managing Director

ACKNOWLEDGMENT AND AGREEMENT

 

The undersigned, NEWMARKET CORPORATION, as Borrower and each of the subsidiaries of the Borrower listed on Schedule A hereto (each a "Guarantor" and collectively the "Guarantors") acknowledge the execution, delivery and effectiveness of the foregoing Supplement Agreement dated as of June 30, 2009 (the "Agreement") entered into pursuant to the terms of that certain Second Amended and Restated Revolving Credit Agreement, dated as of December 21, 2006, as amended by the First Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of September 26, 2008, as amended by the Second Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of March 24, 2009 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), and hereby acknowledge, confirm and agree as follows:  (i) the Amended and Restated Subsidiary Guaranty Agreement, dated as of December 21, 2006, previously executed and delivered by the undersigned in respect of the obligations of the Borrower pursuant to the Credit Agreement remains in full force and effect on and after the date hereof, after giving effect to the increased Revolving Commitment as provided in the Agreement, (ii) the Obligations as provided in such Amended and Restated Subsidiary Guaranty Agreement shall include, without limitation, all borrowings and other extensions of credit made pursuant to the Revolving Commitments as so supplemented and increased, and (iii) nothing contained in the Agreement shall in any way be deemed to limit, discharge, release or otherwise affect the obligations and liabilities of the undersigned pursuant to such Amended and Restated Subsidiary Guaranty Agreement, all of which obligations and liabilities remain in full force and effect as provided therein and herein.

This Acknowledgment and Agreement made and entered into effective as of June 30, 2009.

 

[Signature Pages Follow]

 
NEWMARKET CORPORATION

By:/s/ D. A. FiorenzaName: D. A. Fiorenza
            Title: VP, Treasurer & Principal Financial Officer

 

Afton Chemical Additives Corporation

By: /s/ M. Rudolph West

Name: /s/ M. Rudolph West

Title: Secretary and Treasurer

 

Afton Chemical Asia Pacific LLC

By: /s/ C.S. Warren Huang

Name: C.S. Warren Huang

Title: Manager

 

Afton Chemical Canada Holdings, Inc.

By: /s/ M. Rudolph West

Name: /s/ M. Rudolph West

Title: Secretary and Treasurer

Afton Chemical Corporation

By: /s/ D. A. Fiorenza

Name: D. A. Fiorenza

Title: Treasurer

Afton Chemical Japan Holdings, Inc.

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

 

AFTON CHEMICAL INTANGIBLES LLC

By: /s/ C.S. Warren Huang
Name: C.S. Warren Huang

Title: Manager

THE EDWIN COOPER CORPORATION

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

Ethyl Asia Pacific LLC

By: /s/ Wayne C. Drinkwater

Name: Wayne C. Drinkwater

Title: Manager

Ethyl Canada Holdings, Inc.

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

ETHYL CORPORATION

By: /s/ Wayne C. Drinkwater

Name: Wayne C. Drinkwater

Title: VP & Treasurer

ETHYL EXPORT CORPORATION

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

Ethyl Interamerica Corporation

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

 

ETHYL VENTURES, INC.

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

Interamerica Terminals Corporation

By: /s/ M. Rudolph West

Name: M. Rudolph West

Title: Secretary and Treasurer

 

NewMarket Investment Company

By: /s/ D. A. Fiorenza 

Name: D. A. Fiorenza
Title: VP, Treasurer & Principal Financial Officer

 

NEWMARKET SERVICES CORPORATION

By: /s/ D. A. Fiorenza 

Name: D. A. Fiorenza
Title: VP, Treasurer & Principal Financial Officer

 

OLD TOWN LLC

By: /s/ Bruce R. Hazelgrove, III

Name:  Bruce R. Hazelgrove, III

Title: Manager

 

 

 

Schedule A

to

Acknowledgement and Agreement to Supplement Agreement

 

	
Guarantor(s)
	
Address

	
Afton Chemical Additives Corporation

Afton Chemical Asia Pacific LLC

Afton Chemical Canada Holdings, Inc.

Afton Chemical Corporation

Afton Chemical Japan Holdings, Inc.

Afton Chemical Intangibles LLC

The Edwin Cooper Corporation

Ethyl Asia Pacific LLC

Ethyl Canada Holdings, Inc.

Ethyl Corporation

Ethyl Export Corporation

Ethyl Interamerica Corporation

Ethyl Ventures, Inc.

Interamerica Terminals Corporation

NewMarket Investment Company

NewMarket Services Corporation

Old Town LLC
	
330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

330 South 4th Street, Richmond, Virginia  23219

 

 

 

Schedule I

INCREASED REVOLVING COMMITMENT

 

 

 

	
Increasing Lender

	
Increased Revolving Commitment

	
Citizens Bank of Pennsylvania
	
$10,000,000

	 	 
	 	 
	 	 
	 	 
	 	 

 

 

Schedule II

COMMITMENT AMOUNTS*

	
Lender
	
Revolving Commitment Amount

	
SunTrust Bank
	
$34,000,000

	
PNC Bank, National Association
	
$28,250,000

	
Bank of America, N.A.
	
$26,000,000

	
General Electric Capital Corporation
	
$21,000,000

	
Citizens Bank of Pennsylvania
	
$20,000,000

	
RZB Finance LLC
	
$10,000,000

	
Total
	
$139,250,000

*Effective as of June 30, 2009

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