Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

$300,000,000

AVENTINE RENEWABLE
ENERGY HOLDINGS, INC

10% Senior Notes
due 2017

Purchase Agreement

	
  

  	
  March 21, 2007

  

 

J.P. Morgan
Securities Inc.

  As Representative of the

  several Initial Purchasers listed

  in Schedule 1 hereto

c/o J.P. Morgan
Securities Inc.

270 Park Avenue

New York, New York
10017

Ladies and
Gentlemen:

Aventine Renewable Energy
Holdings, Inc, a Delaware corporation (the “Company”), proposes, subject to the
terms and conditions stated herein, to issue and sell to the several initial
purchasers listed in Schedule 1 hereto (the “Initial Purchasers”), for whom you
are acting as representative (the “Representative”), $300,000,000 principal
amount of its 10% Senior Notes due 2017 (the “Securities”).  The Securities will be issued pursuant to an
Indenture to be dated as of March 26, 2007 (the “Indenture”) among the Company,
the guarantors  listed in Schedule 2 hereto (the “Guarantors”) and Wells Fargo Bank, N.A., as trustee (the
“Trustee”), and will be guaranteed
on an unsecured senior basis by each of the Guarantors (the “Guarantees”).

The Securities will be
sold to the Initial Purchasers without being registered under the Securities
Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption
therefrom.  The Company and the Guarantors have prepared a preliminary
offering memorandum dated March 9, 2007 (the “Preliminary Offering Memorandum”)
and will prepare an offering memorandum dated the date hereof (the “Offering
Memorandum”) setting forth information concerning the Company and the
Securities.  Copies of the Preliminary
Offering Memorandum have been, and copies of the Offering Memorandum will be,
delivered by the Company to the Initial Purchasers pursuant to the terms of
this Agreement.  The Company hereby
confirms that it has authorized the use of the Preliminary Offering Memorandum,
the other Time of Sale Information (as defined below) and the Offering
Memorandum in connection with the offering and resale of the Securities by the
Initial Purchasers in the manner contemplated by this Agreement.  Capitalized terms used but not defined herein
shall have the meanings

given to such terms in
the Preliminary Offering Memorandum. 
References herein to the Preliminary Offering Memorandum, the Time of
Sale Information and the Offering Memorandum shall be deemed to refer to and
include any document incorporated by reference therein.

At or prior to the time
when sales of the Securities were first made (the “Time of Sale”), the following
information shall have been prepared (collectively, the “Time of Sale
Information”): the Preliminary Offering Memorandum, as supplemented and amended
by the written communications listed on Annex A hereto.

Holders of the Securities
(including the Initial Purchasers and their direct and indirect transferees)
will be entitled to the benefits of a Registration Rights Agreement, to be
dated the Closing Date (as defined below) and substantially in the form
attached hereto as Exhibit A (the “Registration Rights Agreement”), pursuant to
which the Company and the Guarantors
will agree to file one or more registration statements with the Securities and
Exchange Commission (the “Commission”) providing for the registration under the
Securities Act of the Securities or the Exchange Securities referred to (and as
defined) in the Registration Rights Agreement.

The Company hereby
confirms its agreement with the several Initial Purchasers concerning the
purchase and resale of the Securities, as follows:

1.             Purchase and Resale of the
Securities.  (a)  The Company agrees to issue and sell the
Securities to the several Initial Purchasers as provided in this Agreement, and
each Initial Purchaser, on the basis of the representations, warranties and
agreements set forth herein and subject to the conditions set forth herein,
agrees, severally and not jointly, to purchase from the Company the respective
principal amount of Securities set forth opposite such Initial Purchaser’s name
in Schedule 1 hereto at a price equal to 98.000% of the principal amount
thereof plus accrued interest, if any, from March 27, 2007 to the Closing
Date.  The Company will not be obligated
to deliver any of the Securities except upon payment for all the Securities to
be purchased as provided herein.

(b)           The
Company understands that the Initial Purchasers intend to offer the Securities
for resale on the terms set forth in the Time of Sale Information.  Each Initial Purchaser, severally and not
jointly, represents, warrants and agrees that:

(i)            it is a qualified institutional
buyer within the meaning of Rule 144A under the Securities Act (a “QIB”) and an
accredited investor within the meaning of Rule 501(a) under the Securities Act;

(ii)           it has not solicited offers for, or
offered or sold, and will not solicit offers for, or offer or sell, the
Securities by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D under the Securities Act
(“Regulation D”) or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act; and

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(iii)          it has not solicited offers for, or
offered or sold, and will not solicit offers for, or offer or sell, the
Securities as part of their initial offering except:

(A)          within the United States to persons
whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A
under the Securities Act (“Rule 144A”) and in connection with each such sale,
it has taken or will take reasonable steps to ensure that the purchaser of the
Securities is aware that such sale is being made in reliance on Rule 144A; or

(B)           in accordance with the restrictions
set forth in Annex C hereto.

(c)           Each
Initial Purchaser acknowledges and agrees that the Company and, for purposes of
the opinions to be delivered to the Initial Purchasers pursuant to Sections
6(f) and 6(g), counsel for the Company and counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties
of the Initial Purchasers, and compliance by the Initial Purchasers with their
agreements, contained in paragraph (b) above (including Annex C hereto), and
each Initial Purchaser hereby consents to such reliance.

(d)           The
Company acknowledges and agrees that the Initial Purchasers may offer and sell
Securities to or through any affiliate of an Initial Purchaser and that any
such affiliate may offer and sell Securities purchased by it to or through any
Initial Purchaser.

(e)           The
Company and the Guarantors
acknowledge and agree that the Initial Purchasers are acting solely in the
capacity of an arm’s length contractual counterparty to the Company and the Guarantors with respect to the
offering of Securities contemplated hereby (including in connection with
determining the terms of the offering) and not as financial advisors or
fiduciaries to, or agents of, the Company, the Guarantors or any other person. 
Additionally, neither the Representative nor any other Initial Purchaser
is advising the Company, the Guarantors
or any other person as to any legal, tax, investment, accounting or regulatory
matters in any jurisdiction.  The Company
and the Guarantors shall consult
with their own advisors concerning such matters and shall be responsible for
making their own independent investigation and appraisal of the transactions
contemplated hereby, and neither the Representative nor any other Initial
Purchaser shall have any responsibility or liability to the Company or the Guarantors with respect thereto.  Any review by the Representative or any
Initial Purchaser of the Company, the Guarantors,
and the transactions contemplated hereby or other matters relating to such
transactions will be performed solely for the benefit of the Representative or
such Initial Purchaser, as the case may be, and shall not be on behalf of the
Company, the Guarantors or any
other person.

2.             Payment and Delivery.  (a) 
Payment for and delivery of the Securities will be made at the offices
of Shearman & Sterling LLP located at 599 Lexington Avenue, New York, New
York 10022 at 10:00 A.M., New York City time, on March 27, 2007, or

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at such other time or
place on the same or such other date, not later than the fifth business day
thereafter, as the Representative and the Company may agree upon in
writing.  The time and date of such
payment and delivery is referred to herein as the “Closing Date”.

(b)           Payment
for the Securities shall be made by wire transfer in immediately available
funds to the account(s) specified by the Company to the Representative against
delivery to the nominee of The Depository Trust Company (“DTC”), for the
account of the Initial Purchasers, of one or more global notes representing the
Securities (collectively, the “Global Note”), registered in the name of Cede
& Co., as nominee for DTC.  The
Global Note will be made available for inspection by the Representative not
later than 1:00 P.M., New York City time, on the business day prior to the
Closing Date.

3.             Representations and Warranties
of the Company and the Guarantors. 
The Company and the Guarantors jointly and severally represent and
warrant to each Initial Purchaser that:

(a)           Preliminary Offering Memorandum, Time of Sale
Information and Offering Memorandum. 
The Preliminary Offering Memorandum, as of its date, did not, the Time
of Sale Information, at the Time of Sale, did not, and the Offering Memorandum,
in the form first used by the Initial Purchasers to confirm sales of the
Securities and as of the Closing Date, will not, contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; provided that the Company and the Guarantors make no
representation or warranty with respect to any statements or omissions made in
reliance upon and in conformity with information relating to any Initial
Purchaser furnished to the Company or the Guarantors in writing by such Initial
Purchaser through the Representative expressly for use in the Preliminary
Offering Memorandum, the Time of Sale Information or the Offering Memorandum.

(b)           Additional Written Communications.  The Company (including its agents and
representatives, other than the Initial Purchasers in their capacity as such)
has not prepared, made, used, authorized, approved or referred to and will not
prepare, make, use, authorize, approve or refer to any written communication
that constitutes an offer to sell or solicitation of an offer to buy the
Securities (each such communication by the Company or its agents and
representatives (other than a communication referred to in clauses (i), (ii)
and (iii) below) an “Issuer Written Communication”) other than (i) the
Preliminary Offering Memorandum, (ii) the Offering Memorandum, (iii) the
documents listed on Annex A hereto, including a term sheet substantially in the
form of Annex B hereto, which constitute part of the Time of Sale Information,
and (iv) any electronic road show or other written communications, in each case
used in accordance with Section 4(c).  Each
such Issuer Written Communication, when taken together with the Time of Sale
Information, did not, and at the Closing Date will not, contain any untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made,

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not misleading; provided that the Company makes no
representation and warranty with respect to any statements or omissions made in
each such Issuer Written Communication in reliance upon and in conformity with
information relating to any Initial Purchaser furnished to the Company in
writing by such Initial Purchaser through the Representative expressly for use
in any Issuer Written Communication.

(c)           Financial Statements.  The financial statements and the related
notes thereto included in each of the Time of Sale Information and the Offering
Memorandum present fairly the financial position of the Company and its
consolidated subsidiaries as of the dates indicated and the results of their
operations and the changes in their cash flows for the periods specified; such
financial statements have been prepared in conformity with generally accepted
accounting principles in the United States (GAAP) applied on a consistent basis
throughout the periods covered thereby and in accordance with Regulation S-X
promulgated by the Commission other than Rule 3-10 thereof;  the other financial information included in
each of the Time of Sale Information and the Offering Memorandum has been
derived from the accounting records of the Company and its subsidiaries and
presents fairly the information shown thereby.

(d)           No Material Adverse Change.  Since the date of the most recent financial
statements of the Company included in each of the Time of Sale Information and
the Offering Memorandum (i) there has not been any material change in the
capital stock or long-term debt of the Company or any of its subsidiaries, or
any dividend or distribution of any kind declared, set aside for payment, paid
or made by the Company on any class of capital stock, or any material adverse
change, or any development involving a prospective material adverse change, in
or affecting the business, properties, management, financial position, results
of operations or prospects of the Company and its subsidiaries taken as a whole;
(ii) neither the Company nor any of its subsidiaries has entered into any
transaction or agreement that is material to the Company and its subsidiaries
taken as a whole or incurred any liability or obligation, direct or contingent,
that is material to the Company and its subsidiaries taken as a whole; and
(iii) neither the Company nor any of its subsidiaries has sustained any
material loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or
arbitrator or governmental or regulatory authority, except in each case as
otherwise disclosed in the Time of Sale Information.

(e)           Organization and Good Standing.  The Company and each of its subsidiaries have
been duly incorporated or formed and are validly existing and in good standing
under the laws of their respective jurisdictions of incorporation or formation,
are duly qualified to do business and are in good standing in each jurisdiction
in which their respective ownership or lease of property or the conduct of
their respective businesses requires such qualification, and have all power and
authority necessary to own or hold their respective properties and to conduct
their businesses as described in each of the Time of Sale Information and the
Offering Memorandum, except where the failure to be so qualified, in good
standing or have such power or authority would not, individually or in the
aggregate, have a material adverse effect on the business, properties,
management, financial position, results of operations or prospects of the

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Company and its subsidiaries taken as a whole or on the performance by
the Company and the Guarantors of their obligations under the Securities and
the Guarantees (a “Material Adverse Effect”). 
The Company does not own or control, directly or indirectly, any
corporation, association or other entity other than Aventine Renewable Energy,
Inc., Aventine Renewable Energy, LLC, Aventine Renewable Energy-Aurora West,
LLC, Aventine Renewable Energy-Mt. Vernon, LLC, Aventine Power, LLC and
Nebraska Energy, LLC.  The Company has a
78.4% ownership interest in Nebraska Energy, LLC.

(f)            Capitalization.  The Company has an authorized capitalization as
set forth in each of the Time of Sale Information and the Offering Memorandum
under the heading “Capitalization”; and all the outstanding shares of capital
stock or other equity interests of each subsidiary of the Company have been
duly and validly authorized and issued, are fully paid and non-assessable
except for the member interests in Nebraska Energy, LLC owned by Nebraska
Energy Corporation and are owned directly or indirectly by the Company, free
and clear of any lien, charge, encumbrance, security interest, restriction on
voting or transfer or any other claim of any third party except as disclosed in
the Time of Sale of Information and the Offering Memorandum.

(g)           Due Authorization.  The Company and each of the Guarantors have
full right, power and authority to execute and deliver this Agreement, the
Securities, the Indenture (including each Guarantee set forth therein), the
Exchange Securities and the Registration Rights Agreement (collectively, the
“Transaction Documents”) and to perform their respective obligations hereunder
and thereunder; and all action required to be taken for the due and proper
authorization, execution and delivery of each of the Transaction Documents and
the consummation of the transactions contemplated thereby has been duly and
validly taken.

(h)           The Indenture.  The Indenture has been duly authorized by the
Company and each of the Guarantors and, when duly executed and delivered in
accordance with its terms by each of the parties thereto, will constitute a
valid and legally binding agreement of the Company and each of the Guarantors
enforceable against the Company and each of the Guarantors in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, receivership, moratorium and similar laws relating
to or affecting the enforcement of creditors’ rights generally or by equitable
principles relating to enforceability (collectively, the “Enforceability
Exceptions”); and on the Closing Date, the Indenture will conform in all
material respects to the requirements of the Trust Indenture Act of 1939, as
amended (the “Trust Indenture Act”), and the rules and regulations of the
Commission applicable to an indenture that is qualified thereunder.

(i)            The Securities and the Guarantees. 
The Securities have been duly authorized by the Company and, when
executed and authenticated, in accordance with the provisions of the Indenture
and delivered to and paid for by the Initial Purchasers, will constitute valid
and legally binding obligations of the Company enforceable against the Company
in accordance with their terms, subject to the Enforceability Exceptions, and
will be entitled to the benefits of the Indenture; and the Guarantees have been
duly authorized by each of the Guarantors and, when the Guarantees have been
duly

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executed, the Notes have been executed and authenticated and delivered
to and paid for by the Initial Purchasers as provided herein, will be valid and
legally binding obligations of each of the Guarantors, enforceable against each
of the Guarantors in accordance with their terms, subject to the Enforceability
Exceptions, and will be entitled to the benefits of the Indenture.

(j)            The Exchange Securities.  On the Closing Date, the Exchange Securities
(including the related guarantees) will have been duly authorized by the
Company and each of the Guarantors and, when duly executed, authenticated,
issued and delivered as contemplated by the Registration Rights Agreement, will
be duly and validly issued and outstanding and will constitute valid and
legally binding obligations of the Company, as issuer, and each of the
Guarantors, as guarantor, enforceable against the Company and each of the
Guarantors in accordance with their terms, subject to the Enforceability
Exceptions, and will be entitled to the benefits of the Indenture.

(k)           Purchase and Registration Rights Agreements.  This Agreement has been duly authorized,
executed and delivered by the Company and each of the Guarantors; and the
Registration Rights Agreement has been duly authorized by the Company and each
of the Guarantors and, when duly executed and delivered in accordance with its
terms by each of the parties thereto, will constitute a valid and legally
binding agreement of the Company and each of the Guarantors enforceable against
the Company and each of the Guarantors in accordance with its terms, subject to
the Enforceability Exceptions, and except that rights to indemnity and
contribution thereunder may be limited by applicable law and public policy.

(l)            Descriptions of the Transaction Documents.  Each Transaction Document conforms in all
material respects to the description thereof contained in each of the Time of
Sale Information and the Offering Memorandum.

(m)          No Violation or Default.  Neither the Company nor any of the Guarantors
is (i) in violation of its charter or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or
lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries is bound or to which any of the property or assets
of the Company or any of its subsidiaries is subject; or (iii) in violation of
any law, ordinance or statute or any judgment, order, rule or regulation of any
court or arbitrator or governmental or regulatory authority, except, in the
case of clauses (ii) and (iii) above, as disclosed in the Time of Sale
Information and the Offering Memorandum and for any such default or violation
that would not, individually or in the aggregate, have a Material Adverse Effect.

(n)           No Conflicts.  The execution, delivery and performance by
the Company and each of the Guarantors of each of the Transaction Documents to
which each is a party, will not (i) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
or result in the creation or imposition of any

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lien, charge or encumbrance upon any property or assets of the Company
or any of its subsidiaries pursuant to, any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Company or any of
its subsidiaries is a party or by which the Company or any of its subsidiaries
is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject, (ii) result in any violation of the provisions of the
charter or by-laws or similar organizational documents of the Company or any of
its subsidiaries or (iii) result in the violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or governmental
or regulatory authority, except, in the case of clauses (i) and (iii) above,
for any such conflict, breach, violation or default that would not,
individually or in the aggregate, have a Material Adverse Effect.

(o)           No Consents Required.  No consent, approval, authorization, order,
registration or qualification of or with any court or arbitrator or
governmental or regulatory authority is required for the execution, delivery
and performance by the Company and each of the Guarantors of each of the
Transaction Documents to which each is a party, the issuance and sale of the
Securities (including the Guarantees) and compliance by the Company and each of
the Guarantors with the terms thereof and the consummation of the transactions contemplated
by the Transaction Documents, except for such consents, approvals,
authorizations, orders and registrations or qualifications as may be required
(i) under applicable state securities laws in connection with the offer and
sale of the Securities by the Initial Purchasers (ii) with respect to the
Exchange Securities (including the related guarantees) under the Securities
Act, the Trust Indenture Act and applicable state securities laws as
contemplated by the Registration Rights Agreement.

(p)           Legal Proceedings.  Except as described in each of the Time of
Sale Information and the Offering Memorandum, there are no legal, governmental
or regulatory investigations, actions, suits or proceedings pending or
threatened to which the Company or any of its subsidiaries is or may be a party
or to which any property of the Company or any of its subsidiaries is or may be
the subject that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

(q)           Independent Accountants.  Ernst & Young LLP, who have certified
certain financial statements of the Company and its subsidiaries are
independent public accountants with respect to the Company and its subsidiaries
within the applicable rules and regulations adopted by the Commission and the
Public Company Accounting Oversight Board (United States) and as required by
the Securities Act.

(r)            Title to Real and Personal Property.  Except as disclosed in the Time of Sale
Information and the Offering Memorandum, the Company and its subsidiaries have
good and marketable title in fee simple to, or have valid rights to lease or
otherwise use, all items of real and personal property that are material to the
respective businesses of the Company and its subsidiaries, (except, in the case
of the member interests of Nebraska Energy, LLC which are owned by Nebraska
Energy Cooperation) in each case free and clear of all liens, encumbrances,
claims and defects and imperfections of

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title except those that would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect.

(s)           Title to Intellectual Property.  The Company and its subsidiaries own or
possess or can acquire on reasonable terms adequate rights to use all material
patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures) necessary for the conduct
of their respective businesses , except where the failure to own or possess, or
the ability to acquire on reasonable terms, any of the foregoing would not,
singly or in the aggregate, reasonably be expected to result in a Material
Adverse Effect and the conduct of their respective businesses will not conflict
in any material respect with any such rights of others, and the Company and its
subsidiaries have not received any notice of any claim of infringement of or
conflict with any such rights of others which singly or in the aggregate, if
the subject of an unfavorable decision would reasonably be expected to have a
Material Adverse Effect.

(t)            No Undisclosed Relationships.  No relationship, direct or indirect, exists
between or among the Company or any of its subsidiaries, on the one hand, and
the directors, officers, stockholders or other affiliates of the Company or any
of its subsidiaries, on the other, that would be required by the Securities Act
to be described in a registration statement to be filed with the Commission and
that is not so described in each of the Time of Sale Information and the
Offering Memorandum.

(u)           Investment Company Act.  The Company and each Guarantor is not, and
after giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in each of the Time of Sale
Information and the Offering Memorandum will not be, required to register as an
“investment company,” as such term is defined in the Investment Company Act
1940, as amended.

(v)           Taxes. 
The Company and each of its subsidiaries have timely filed all material
federal, state, local and foreign tax returns required to be filed through the
date hereof (taking into account any extension of time to file granted or
obtained on behalf of the Company or any of its subsidiaries) and have paid all
taxes and similar charges, (except as contested in good faith and adequately
reserved for in accordance with GAAP), except in each case where the failure to
so file or pay would not have a Material Adverse Effect; no tax deficiency has
been determined, as a result of a final determination, adversely to the Company
or any of its subsidiaries which has had (nor does the Company have any
knowledge of any tax deficiency which, if determined adversely to the Company
or any of its subsidiaries, would have) a Material Adverse Effect; and since
the date of most recent audited financial statements, the Company and its
subsidiaries have not incurred any liability for taxes other than in the ordinary
course of its business and there is no tax lien, whether imposed by any
federal, state, foreign or other taxing authority, outstanding against the
assets, properties or business of the Company or its subsidiaries which, in
either case, has had or could have, individually or in the aggregate, a
Materially Adverse Effect;

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(w)          Licenses and Permits.  Except as described in the Time of Sale
Information and the Offering Memorandum, the Company and each of its
subsidiaries possess all licenses, certificates, authorizations and permits
(collectively, “Governmental Licenses”) issued by, and have made all
declarations and filings with, the appropriate federal, state, foreign or other
regulatory agencies or bodies, which are necessary for the ownership of their respective
properties or the conduct of their respective businesses now operated by them,
except where the failure to possess or make the same would not, singularly or
in the aggregate, have a Material Adverse Effect; all of the Governmental
Licenses are valid and in full force and effect, except where the invalidity of
such Governmental Licenses or the failure of such Governmental Licenses to be
in full force and effect would not, singularly or in the aggregate, reasonably
be expected to have a Material Adverse Effect; and none of the Company or any
of its subsidiaries has received notification of any proceeding relating to the
revocation or modification of any such Governmental Licenses or has any reason
to believe that any such Governmental Licenses will not be renewed in the
ordinary course, except where such revocation, modification or nonrenewal,
would not singularly or in the aggregate, reasonably be expected to have a
Material Adverse Effect;

(x)            No Labor Disputes.  No labor disturbance by or dispute with
employees of the Company or any of its subsidiaries exists or, to the best
knowledge of the Company and each of the Guarantors, is threatened or imminent
and neither the Company nor any Guarantor is aware of any existing or imminent
labor disturbance by, or dispute with, the employees of any of the Company’s or
any of the Company’s subsidiaries’ principal suppliers, contractors or
customers, that could have a Material Adverse Effect.

(y)           Compliance With Environmental Laws.  Except as described in the Time of Sale
Information and the Offering Memorandum, (i) the Company and its subsidiaries
(x) are in compliance with any and all applicable federal, state, local and
foreign laws, rules, regulations, requirements, decisions and orders relating
to the protection of human health or safety, the environment, natural
resources, hazardous or toxic substances or wastes, pollutants or contaminants
(collectively, “Environmental Laws”), (y) have received and are in compliance
with all permits, licenses, certificates or other authorizations or approvals
required of them under applicable Environmental Laws to conduct their
respective businesses, and (z) have not received notice of any actual or
potential liability under or relating to any Environmental Laws, including for the
investigation or remediation of any disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants, and have no knowledge of any
event or condition that would reasonably be expected to result in any such
notice, and (ii) there are no costs or liabilities associated with
Environmental Laws of or relating to the Company or its subsidiaries, except in
the case of each of (i) and (ii) above, for any such failure to comply, or
failure to receive required permits, licenses or approvals, or cost or
liability, as would not, individually or in the aggregate, have a Material
Adverse Effect.

(z)            Compliance With ERISA.  (i) Each employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), for which the Company or any member of its “Controlled
Group” (defined as any organization which is a member of a controlled group of
corporations

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within the meaning of Section 414 of the Internal Revenue Code of 1986,
as amended (the “Code”)) would have any liability (each, a “Plan”) has been
maintained in compliance with its terms and the requirements of any applicable
statutes, orders, rules and regulations, including but not limited to ERISA and
the Code, except where such noncompliance, individually or in the aggregate,
would have a Material Adverse Effect; 
(ii) no prohibited transaction, within the meaning of Section 406 of
ERISA or Section 4975 of the Code, has occurred with respect to any Plan
excluding transactions effected pursuant to a statutory or administrative
exemption that would have a Material Adverse Effect; none of the Company, any
of its subsidiaries, or any entity that was at any time required to be treated
as a single employer together with the Company under Section 414(b)(c)(m) or
(o) of the Code or Section 4001(a)(l4) of ERISA has incurred or reasonably
expects to incur any liability under Section 302 of ERISA, Section 412 of the
Code or Title IV of ERISA that would have a Material Adverse Effect; and each such
pension plan that is intended to be qualified under Section 401(a) of the Code
is so qualified in all material respects and, to the best knowledge of the
Company, nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.

(aa)         Material Contracts.  The Representative or its counsel have been
provided with complete and genuine copies (or, to the extent not executed as of
the date hereof, current drafts) of all material contracts, agreements,
instruments and other documents of the Company that are required at the Closing
Time to be described in the Offering Memorandum or the Time of Sale
Information, and the copies of all such material contracts, agreements,
instruments and other documents (including governmental licenses,
authorizations, permits, consents and approvals and all amendments or waivers
relating to any of the foregoing) that have been previously furnished to the
Representative or its counsel are complete and genuine; and there are no legal
proceedings, contracts, agreements or other documents of a character required
to be described in the Offering Memorandum or the Time of Sale Information
which are not so described as required.

(bb)         Disclosure Controls.  The Company and its subsidiaries maintain
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the
Exchange Act) that are designed to ensure that information required to be
disclosed by the Company in reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported within the time periods
specified in the Commission’s rules and forms, including controls and
procedures designed to ensure that such information is accumulated and
communicated to the Company’s management as appropriate to allow timely
decisions regarding required disclosure. 
The Company and its subsidiaries have carried out evaluations of the
effectiveness of their disclosure controls and procedures as required by Rule
13a-15 of the Exchange Act and have concluded that such disclosure controls and
procedures are effective as of the most recent evaluation.

(cc)         Accounting Controls.  The Company and its subsidiaries maintain
systems of “internal control over financial reporting” (as defined in Rule
13a-15(f) of the Exchange Act) that comply with the requirements of the
Exchange Act and have been designed by, or under the supervision of, their
respective principal executive and

 11
 

principal financial officers, or persons performing similar functions,
to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles.  The Company and its subsidiaries maintain internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.  Except
as disclosed in each of the Time of Sale Information and the Offering
Memorandum, there are no material weaknesses or significant deficiencies in the
Company’s internal controls.

(dd)         Insurance. 
Except as disclosed in the Time of Sale Information and the Offering
Memorandum, the Company and its subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as, in management’s judgment, are prudent and customary in the business
in which they are engaged, neither the Company nor any of its subsidiaries has
been refused any material insurance coverage sought or applied for; and neither
the Company nor any of its subsidiaries has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business to a cost that would not have a Material Adverse
Effect.

(ee)         No Unlawful Payments.  Neither the Company nor any of its
subsidiaries nor, to the best knowledge of the Company and each of the
Guarantors, any director, officer, agent, employee or other person associated
with or acting on behalf of the Company or any of its subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; (ii) made any direct or
indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; (iii) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment.

(ff)           Other Registration.  There are no, and as of the Closing Time
there will not be any, persons or entities with registration or other similar
rights to have any securities registered pursuant to a registration statement
or otherwise by the Company or any of its subsidiaries other than the
Registration Rights Agreement and as otherwise described in the Offering
Memorandum and the Time of Sale Information.

(gg)          Compliance with OFAC.  None of the Company, any of its subsidiaries
or, to the knowledge of the Company, any director, officer, agent, employee or
affiliate of the Company or any of its subsidiaries is currently subject to any
U.S. sanctions administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury (“OFAC”); and the Company will not directly or
indirectly use the proceeds of

 12
 

the offering of the Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner
or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC.

(hh)         No Restrictions on Subsidiaries.  No subsidiary of the Company is currently
prohibited, directly or indirectly, under any agreement or other instrument to
which it is a party or is subject, from paying any dividends to the Company,
from making any other distribution on such subsidiary’s capital stock, from
repaying to the Company any loans or advances to such subsidiary from the Company
or from transferring any of such subsidiary’s properties or assets to the
Company or any other subsidiary of the Company.

(ii)           No Broker’s Fees.  Neither the Company nor any of its
subsidiaries is a party to any contract, agreement or understanding with any
person (other than this Agreement) that would give rise to a valid claim
against any of them or any Initial Purchaser for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the
Securities.

(jj)           Rule 144A Eligibility.  On the Closing Date, the Securities will not
be of the same class as securities listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in an automated
inter-dealer quotation system; and each of the Preliminary Offering Memorandum
and the Offering Memorandum, as of its respective date, contains or will
contain all the information that, if requested by a prospective purchaser of
the Securities, would be required to be provided to such prospective purchaser
pursuant to Rule 144A(d)(4) under the Securities Act or the Company will
provide such information upon request by a prospective purchaser.

(kk)         No Integration.  Neither the Company nor any of its affiliates
(as defined in Rule 501(b) of Regulation D) has, directly or through any agent,
sold, offered for sale, solicited offers to buy or otherwise negotiated in
respect of, any security (as defined in the Securities Act), that is or will be
integrated with the sale of the Securities in a manner that would require
registration of the Securities under the Securities Act.

(ll)           No General Solicitation or Directed Selling Efforts.  None of the Company or any of its affiliates
or any other person acting on its or their behalf (other than the Initial
Purchasers, as to which no representation is made) has (i) solicited offers
for, or offered or sold, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of
Regulation D or in any manner involving a public offering within the meaning of
Section 4(2) of the Securities Act or (ii) engaged in any directed selling
efforts within the meaning of Regulation S under the Securities Act
(“Regulation S”), and all such persons have complied with the offering restrictions
requirement of Regulation S.

(mm)       Securities Law Exemptions.  Assuming the accuracy of the representations
and warranties of the Initial Purchasers contained in Section 1(b) (including
Annex C hereto) and their compliance with their agreements set forth therein,

 13
 

it is not necessary, in connection with the issuance and sale of the
Securities to the Initial Purchasers and the offer, resale and delivery of the
Securities by the Initial Purchasers in the manner contemplated by this
Agreement, the Time of Sale Information and the Offering Memorandum, to
register the Securities under the Securities Act or to qualify the Indenture
under the Trust Indenture Act.

(nn)         No Stabilization.  Neither the Company nor any of the Guarantors
has taken, directly or indirectly, any action designed to or that could
reasonably be expected to cause or result in any stabilization or manipulation
of the price of the Securities.

(oo)         Margin Rules.  Neither the issuance, sale and delivery of
the Securities nor the application of the proceeds thereof by the Company as
described in each of the Time of Sale Information and the Offering Memorandum
will violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System or any other regulation of such Board of Governors.

(pp)         Forward-Looking Statements.  No forward-looking statement (within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) contained in any of the Time of Sale Information or the Offering
Memorandum has been made or reaffirmed without a reasonable basis or has been
disclosed other than in good faith.

(qq)         Statistical and Market Data.  Nothing has come to the attention of the
Company that has caused the Company to believe that the statistical and
market-related data included in each of the Time of Sale Information and the
Offering Memorandum is not based on or derived from sources that are reliable
and accurate in all material respects.

(rr)           Sarbanes-Oxley Act.  There is and has been no material failure on
the part of the Company or any of the Company’s directors or officers, in their
capacities as such, to comply with any provision of the Sarbanes-Oxley Act of
2002 and the rules and regulations promulgated in connection therewith (the
“Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302
and 906 related to certifications.

4.             Further Agreements of the
Company and the Guarantors.  The Company and each of the Guarantors
jointly and severally covenant and agree with each Initial Purchaser that:

(a)           Delivery of Copies.  The Company will deliver, without charge, to
the Initial Purchasers as many copies of the Preliminary Offering Memorandum,
any other Time of Sale Information, any Issuer Written Communication and the
Offering Memorandum (including all amendments and supplements thereto) as the
Representative may reasonably request.

(b)           Offering Memorandum, Amendments or Supplements.  Before finalizing the Offering Memorandum or
making or distributing any amendment or supplement to any of the Time of Sale
Information or the Offering Memorandum, the Company will furnish to the
Representative and counsel for the Initial Purchasers a copy of the

 14
 

proposed Offering Memorandum or such amendment or supplement for
review, and will not distribute any such proposed Offering Memorandum,
amendment or supplement to which the Representative reasonably objects (by
providing notice to the Company after a reasonable period of review).

(c)           Additional Written Communications.  Before making, preparing, using, authorizing,
approving or referring to any Issuer Written Communication, the Company will
furnish to the Representative and counsel for the Initial Purchasers a copy of
such written communication for review and will not make, prepare, use,
authorize, approve or refer to any such written communication to which the
Representative reasonably objects (by providing notice to the Company after a
reasonable period of review).

(d)           Notice to the Representative.  The Company will advise the Representative
promptly, and confirm such advice in writing, (i) of the issuance by any
governmental or regulatory authority of any order preventing or suspending the
use of any of the Time of Sale Information, any Issuer Written Communication or
the Offering Memorandum or the initiation or threatening of any proceeding for
that purpose; (ii) of the occurrence of any event at any time prior to the
completion of the initial offering of the Securities as a result of which any
of the Time of Sale Information, any Issuer Written Communication or the Offering
Memorandum as then amended or supplemented would include any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances existing when such
Time of Sale Information, Issuer Written Communication or the Offering
Memorandum is delivered to a purchaser, not misleading; and (iii) of the
receipt by the Company of any notice with respect to any suspension of the
qualification of the Securities for offer and sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and the Company
will use its reasonable best efforts to prevent the issuance of any such order
preventing or suspending the use of any of the Time of Sale Information, any
Issuer Written Communication or the Offering Memorandum or suspending any such
qualification of the Securities and, if any such order is issued, will obtain
as soon as possible the withdrawal thereof provided that in connection with
obtaining such withdrawal the Company shall not be required to (i) qualify as a
foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify (ii) file
any general consent to service of process in any such jurisdiction or (iii)
subject itself to taxation in any such jurisdiction if it is not so subject.

(e)           Time of Sale Information.  If at any time prior to the
Closing Date (i) any event shall occur or condition shall exist as a result of
which any of the Time of Sale Information as then amended or supplemented would
include any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading or (ii) it is
necessary to amend or supplement any of the Time of Sale Information to comply
with law, the Company will immediately notify the Initial Purchasers thereof
and forthwith prepare and, subject to paragraph (b) above, furnish to the
Initial Purchasers such amendments or supplements to any of the Time of Sale
Information as may be necessary so that the statements in any of the Time of
Sale

 15

Information as so amended or supplemented will not, in light of the
circumstances under which they were made, be misleading or so that any of the
Time of Sale Information will comply with law.

(f)            Ongoing
Compliance of the Offering Memorandum. If at any time prior to the
completion of the initial offering of the Securities (i) any event shall occur
or condition shall exist as a result of which the Offering Memorandum as then
amended or supplemented would include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances existing when the Offering
Memorandum is delivered to a purchaser, not misleading or (ii) it is necessary
to amend or supplement the Offering Memorandum to comply with law, the Company
will immediately notify the Initial Purchasers thereof and forthwith prepare
and, subject to paragraph (b) above, furnish to the Initial Purchasers such
amendments or supplements to the Offering Memorandum as may be necessary so
that the statements in the Offering Memorandum as so amended or supplemented
will not, in the light of the circumstances existing when the Offering
Memorandum is delivered to a purchaser, be misleading or so that the Offering
Memorandum will comply with law.

(g)           Blue Sky
Compliance. The Company will qualify the Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions as the
Representative shall reasonably request and will continue such qualifications
in effect so long as required for the offering and resale of the Securities; provided
that neither the Company nor any of the Guarantors
shall be required to (i) qualify as a foreign corporation or other entity or as
a dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (ii) file any general consent to service of process in
any such jurisdiction or (iii) subject itself to taxation in any such
jurisdiction if it is not otherwise so subject.

(h)           Clear
Market. During the period from the date hereof through and including
the date that is 90 days after the date hereof, the Company and each of the Guarantors will not, without the prior
written consent of the Representative, offer, sell, contract to sell or
otherwise dispose of any debt securities issued or guaranteed by the Company or any of the Guarantors and having a tenor of more than one year.

(i)            Use of
Proceeds. The Company will apply the net proceeds from the sale of
the Securities as described in each of the Time of Sale Information and the
Offering Memorandum under the heading “Use of proceeds”.

(j)            Supplying Information. While the Securities remain outstanding and are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, the Company and
each of the Guarantors will, during any period in which
the Company is not subject to and in compliance with Section 13 or 15(d) of the
Exchange Act, furnish to holders of the Securities and prospective purchasers of the Securities
designated by such holders, upon the request of such holders or such
prospective purchasers, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

 16
 

(k)           PORTAL and DTC. The Company will use its commercially reasonable
efforts to assist the Initial Purchasers in arranging for the Securities to be
designated Private Offerings, Resales and Trading through Automated Linkages (“PORTAL”)
Market securities in accordance with the rules and regulations adopted by the
National Association of Securities Dealers, Inc. (the “NASD”) relating to
trading in the PORTAL Market and for the Securities to be eligible for
clearance and settlement through The Depository Trust Company (“DTC”).

(l)            No Resales by the Company. The Company will not, and will not permit any of
its affiliates (as defined in Rule 144 under the Securities Act) to,
resell any of the Securities that have been acquired by any of them, except for
Securities purchased by the Company or any of its affiliates and resold in a
transaction registered under the Securities Act.

(m)          No
Integration. Neither the Company nor any of its affiliates (as
defined in Rule 501(b) of Regulation
D) will, directly or through any agent, sell, offer for sale, solicit offers to
buy or otherwise negotiate in
respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the
Securities in a manner that would require registration of the Securities under
the Securities Act.

(n)           No
General Solicitation or Directed Selling Efforts. None of the
Company or any of its affiliates or any other person acting on its or their
behalf (other than the Initial Purchasers, as to which no covenant is given)
will (i) solicit offers for, or offer or sell, the Securities by means of any
form of general solicitation or general advertising within the meaning of Rule
502(c) of Regulation D or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act or (ii) engage in any directed
selling efforts within the meaning of Regulation S, and all such persons will
comply with the offering restrictions requirement of Regulation S.

(o)           No Stabilization. Neither the Company nor any of the Guarantors will take, directly
or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the price
of the Securities.

 17
 

5.             Certain Agreements
of the Initial Purchasers. Each Initial Purchaser hereby represents and
agrees that it has not and will not use, authorize use of, refer to, or
participate in the planning for use of, any written communication that
constitutes an offer to sell or the solicitation of an offer to buy the
Securities other than (i) the Preliminary Offering Memorandum and the Offering
Memorandum, (ii) a written communication that contains no “issuer information”
(as defined in Rule 433(h)(2) under the Securities Act) that was not or will
not, be included (including through incorporation by reference) in the
Preliminary Offering Memorandum or the Offering Memorandum, (iii) any written
communication listed on Annex A or prepared pursuant to Section 4(c) above
(including any electronic road show), (iv) any written communication prepared
by such Initial Purchaser and approved by the Company in advance in writing or
(v) any written communication relating to or that contains the terms of the
Securities and/or other information that was included (including through
incorporation by reference) in the Preliminary Offering Memorandum or the
Offering Memorandum.

6.             Conditions of
Initial Purchasers’ Obligations. The obligation of each Initial Purchaser
to purchase Securities on the Closing Date as provided herein is subject to the
performance by the Company and each of the Guarantors of their respective covenants and
other obligations hereunder and to the following additional conditions:

(a)           Representations
and Warranties. The representations and warranties of the Company and
the Guarantors contained herein shall be true and correct on the date hereof
and on and as of the Closing Date; and the statements of the Company, the Guarantors and their respective
officers made in any certificates delivered pursuant to this Agreement shall be
true and correct on and as of the Closing Date.

(b)           No
Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B)
the execution and delivery of this Agreement, (i) no downgrading shall have
occurred in the rating accorded the Securities or any other debt securities or
preferred stock issued or guaranteed
by the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization”, as such term is defined by the Commission for
purposes of Rule 436(g)(2) under the Securities Act; and (ii) no such
organization shall have publicly announced that it has under surveillance or
review, or has changed its outlook with respect to, its rating of the
Securities or of any other debt securities or preferred stock issued or guaranteed by the Company or any of
its subsidiaries (other than an announcement with positive implications of a
possible upgrading).

(c)           No
Material Adverse Change. No event or condition of a type described
in Section 3(d) hereof shall have occurred or shall exist, which event or
condition is not described in each of the Time of Sale Information (excluding
any amendment or supplement thereto) and the Offering Memorandum (excluding any
amendment or supplement thereto) the effect of which in the judgment of the
Representative makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner
contemplated by this Agreement, the Time of Sale Information and the Offering
Memorandum.

 18
 

(d)           Officer’s
Certificate. The Representative shall have received on and as of the
Closing Date a certificate of an executive officer of the Company and of each Guarantor who has specific knowledge
of the Company’s or such Guarantor’s
financial matters and is satisfactory to the Representative (i) confirming that
such officer has carefully reviewed the Time of Sale Information and the
Offering Memorandum and, to the best knowledge of such officer, the
representations set forth in Sections 3(a) and 3(b) hereof are true and
correct, (ii) confirming that the other representations and warranties of the
Company and the Guarantors in
this Agreement are true and correct and that the Company and the Guarantors have complied with all
agreements and satisfied all conditions on their part to be performed or
satisfied hereunder at or prior to the Closing Date and (iii) to the effect set
forth in paragraphs (b) and (c) above.

(e)           Comfort
Letters. On the date of this Agreement and on the Closing Date,
Ernst & Young LLP, shall have furnished to the Representative, at the
request of the Company, letters, dated the respective dates of delivery thereof
and addressed to the Initial Purchasers, in form and substance reasonably
satisfactory to the Representative, containing statements and information of
the type customarily included in accountants’ “comfort letters” to underwriters
with respect to the financial statements and certain financial information
contained in each of the Time of Sale Information and the Offering Memorandum; provided
that the letter delivered on the Closing Date shall use a “cut-off” date no
more than three business days prior to the Closing Date.

(f)            Opinion
and 10b-5 Statement of Counsel for the Company. Davis Polk &
Wardwell, counsel for the Company, shall have furnished to the Representative,
at the request of the Company, their written opinion and 10b-5 statement, dated
the Closing Date and addressed to the Initial Purchasers, in form and substance
reasonably satisfactory to the Representative, to the effect set forth in Annex
D hereto.

(g)           Opinion
and 10b-5 Statement of Counsel for the Initial Purchasers. The
Representative shall have received on and as of the Closing Date an opinion and
10b-5 statement of Shearman & Sterling LLP, counsel for the Initial
Purchasers, with respect to such matters as the Representative may reasonably
request, and such counsel shall have received such documents and information as
they may reasonably request to enable them to pass upon such matters.

(h)           No Legal
Impediment to Issuance. No action shall have been taken and no
statute, rule, regulation or order shall have been enacted, adopted or issued
by any federal, state or foreign governmental or regulatory authority that
would, as of the Closing Date, prevent the issuance or sale of the Securities
or the issuance of the Guarantees;
and no injunction or order of any federal, state or foreign court shall have
been issued that would, as of the Closing Date, prevent the issuance or sale of
the Securities or the issuance of the Guarantees.

(i)            Good
Standing. The Representative shall have received on and as of the
Closing Date satisfactory evidence of the good standing of the Company and its
subsidiaries in their respective jurisdictions of organization and their good
standing in such other jurisdictions as the Representative may reasonably
request, except where

 19
 

the failure to maintain such good standing in such other jurisdiction
would not result in a Material Adverse Effect, in each case in writing or any
standard form of telecommunication, from the appropriate governmental
authorities of such jurisdictions.

(j)            Registration Rights Agreement. The Initial Purchasers shall have received a
counterpart of the Registration Rights Agreement that shall have been executed
and delivered by a duly authorized officer of the Company and each of the Guarantors.

(k)           PORTAL and DTC. The Securities shall have been approved by the
NASD for trading in the PORTAL Market and shall be eligible for clearance and
settlement through DTC.

(l)            Additional
Documents. On or prior to
the Closing Date, the Company shall have furnished to the Representative such
further certificates and documents as the Representative may reasonably
request.

All opinions, letters, certificates and evidence
mentioned above or elsewhere in this Agreement shall be deemed to be in
compliance with the provisions hereof only if they are in form and substance
reasonably satisfactory to counsel for the Initial Purchasers.

7.             Indemnification
and Contribution.

(a)           Indemnification of the Initial Purchasers. The
Company and each of the Guarantors jointly and severally agree to
indemnify and hold harmless each Initial Purchaser, its affiliates, directors
and officers and each person, if any, who controls such Initial Purchaser
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, legal fees and other expenses
incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several, that arise
out of, or are based upon, any untrue statement or alleged untrue statement of
a material fact contained in the Preliminary Offering Memorandum, any of the
other Time of Sale Information, any Issuer Written Communication or the
Offering Memorandum (or any amendment or supplement thereto) or any omission or
alleged omission to state therein a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, in each case except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Initial Purchaser furnished to the
Company in writing by such Initial Purchaser through the Representative
expressly for use therein.

(b)           Indemnification
of the Company. Each Initial Purchaser agrees, severally and not
jointly, to indemnify and hold harmless the Company, each of the Guarantors, each of their respective
directors and officers and each person, if any, who controls the Company or any
of the Guarantors within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
to the same extent as the indemnity set forth in paragraph (a) above, but only
with respect to any losses, claims, damages or liabilities

 20
 

that arise out of, or are based upon, any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity
with any information relating to such Initial Purchaser furnished to the
Company in writing by such Initial Purchaser through the Representative
expressly for use in the Preliminary Offering Memorandum, any of the other Time
of Sale Information, any Issuer Written Communication or the Offering
Memorandum (or any amendment or supplement thereto), it being understood and
agreed that the only such information consists of the following: (i) the names
of the Initial Purchasers appearing on the cover page of the Preliminary
Offering Memorandum; and (ii) the sixteenth paragraph of text of the “Plan of
Distribution” in the Preliminary Offering Memorandum.

(c)           Notice
and Procedures. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or
asserted against any person in respect of which indemnification may be sought
pursuant to either paragraph (a) or (b) above, such
person (the “Indemnified Person”) shall promptly notify the person against whom
such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve
it from any liability that it may have under subsections 7(a) and 7(b) except
to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further,
that the failure to notify the Indemnifying Person shall not relieve it from
any liability that it may have to an Indemnified Person otherwise than under subsections
7(a) and 7(b). If any such proceeding shall be brought or asserted against an
Indemnified Person and it shall have notified the Indemnifying Person thereof,
the Indemnifying Person shall retain counsel reasonably satisfactory to
the Indemnified Person (who shall not, without the consent of the Indemnified
Person, be counsel to the Indemnifying Person) to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 7
that the Indemnifying Person may designate in such proceeding and shall pay the
fees and expenses of such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding, as incurred. In any such proceeding,
any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary; (ii) the Indemnifying Person has failed within
a reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person; (iii) the Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or in addition
to those available to the Indemnifying Person; or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood and agreed that the Indemnifying
Person shall not, in connection with any proceeding or related proceeding in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all Indemnified Persons,
and that all such fees and expenses shall be reimbursed as they are incurred. Any
such separate firm for any Initial Purchaser, its affiliates, directors and
officers and any control persons of such Initial Purchaser shall be designated
in writing by J.P. Morgan Securities Inc. and any such separate firm for the
Company, the

 21
 

Guarantors,
their respective directors and officers and any control persons of the Company
and the Guarantors  shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. No Indemnifying Person
shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party and indemnification could have
been sought hereunder by such Indemnified Person, unless such settlement (x)
includes an unconditional release of such Indemnified Person, in form and
substance reasonably satisfactory to such Indemnified Person, from all
liability on claims that are the subject matter of such proceeding and (y) does
not include any statement as to or any admission of fault, culpability or a
failure to act by or on behalf of any Indemnified Person.

(d)           Contribution.
If the indemnification provided for in paragraphs (a) and (b) above
is unavailable to an Indemnified Person or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each
Indemnifying Person under such paragraph, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable
by such Indemnified Person as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors on the one hand and the Initial
Purchasers on the other from the offering of the Securities or (ii) if the
allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) but also the relative fault of the Company and the Guarantors
on the one hand and the Initial Purchasers on the other in connection
with the statements or omissions that resulted in such losses, claims, damages
or liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company and
the Guarantors on the one hand and the Initial
Purchasers on the other shall be deemed to be in the same respective
proportions as the net proceeds (before deducting expenses) received by the
Company from the sale of the Securities and the total discounts and commissions
received by the Initial Purchasers in connection therewith, as provided in this
Agreement, bear to the aggregate offering price of the Securities. The relative
fault of the Company and the Guarantors on the one hand and the Initial Purchasers
on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company or any Guarantor or by the Initial Purchasers and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

(e)           Limitation
on Liability. The Company, the Guarantors
and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined
by pro  rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
paragraph (d) above.

 22
 

The amount paid or payable by an Indemnified Person as a result of the
losses, claims, damages and liabilities referred to in paragraph (d) above
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses incurred by such Indemnified Person in connection with
any such action or claim. Notwithstanding the provisions of this Section 7, in
no event shall an Initial Purchaser be required to contribute any amount in
excess of the amount by which the total discounts and commissions received by
such Initial Purchaser with respect to the offering of the Securities exceeds
the amount of any damages that such Initial Purchaser has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Initial Purchasers’ obligations to contribute pursuant
to this Section 7 are several in proportion to their respective purchase
obligations hereunder and not joint.

(f)            Non-Exclusive
Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies that may otherwise be
available to any Indemnified Person at law or in equity.

8.             Termination. The
obligations of the Initial Purchasers hereunder shall be subject to termination
in the absolute discretion of the Representative, at any time prior to the
Closing Time, (i) if there has occurred any outbreak or escalation of
hostilities or other national or international calamity or crisis or change in
economic, political or other conditions, the effect of which on the United
States or international financial markets is such as to make it, in the
judgment of the Representative, impracticable to market the Securities or
enforce contracts for the sale of the Securities, or (ii) if trading in any
securities of the Company has been suspended by the Commission or by the New
York Stock Exchange, or if trading generally on the New York Stock Exchange or
in the Nasdaq over-the-counter market has been suspended (including an
automatic halt in trading pursuant to market-decline triggers, other than those
in which solely program trading is temporarily halted), or limitations on
prices for trading (other than limitations on hours or numbers of days of
trading) have been fixed, or maximum ranges for prices for securities have been
required, by such exchange or the NASD or the over-the-counter market or by
order of the Commission or any other governmental authority, or (iii)
declaration of a banking moratorium by either federal or New York State
authorities, or (iv) a material disruption in commercial banking or securities
settlement or clearance services in the United States. If the Representative
elects to terminate this Agreement as provided in this Section 8, the Company
shall be notified promptly by telephone, promptly confirmed by fax or email.

9.             Defaulting
Initial Purchaser. (a) If, on the
Closing Date, any Initial Purchaser defaults on
its obligation to purchase the Securities that it has agreed to purchase hereunder,
the non-defaulting Initial Purchasers may in their discretion arrange for the
purchase of such Securities by other persons satisfactory to the Company on the
terms contained in this Agreement. If, within 36 hours after any such default
by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange
for the purchase of such

 23
 

Securities,
then the Company shall be entitled to a further period of 36 hours within which
to procure other persons satisfactory to the non-defaulting Initial Purchasers
to purchase such Securities on such terms. If other persons become obligated or
agree to purchase the Securities of a defaulting Initial Purchaser, either the
non-defaulting Initial Purchasers or the Company may postpone the Closing Date
for up to five full business days in order to effect any changes that in the
opinion of counsel for the Company or counsel for the Initial Purchasers may be
necessary in the Time of Sale Information, the Offering Memorandum or in any
other document or arrangement, and the Company agrees to promptly prepare any
amendment or supplement to the Time of Sale Information or the Offering
Memorandum that effects any such changes. As used in this Agreement, the term “Initial
Purchaser” includes, for all purposes of this Agreement unless the context
otherwise requires, any person not listed in Schedule 1 hereto that, pursuant
to this Section 9, purchases Securities that a defaulting Initial Purchaser
agreed but failed to purchase.

(b)           If, after giving effect to any arrangements
for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Company as provided
in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased does not exceed one-eleventh of the aggregate principal
amount of all the Securities, then the Company shall have the right to require
each non-defaulting Initial Purchaser to purchase the principal amount of
Securities that such Initial Purchaser agreed to purchase hereunder plus such
Initial Purchaser’s pro  rata share (based on the principal amount
of Securities that such Initial Purchaser agreed to purchase hereunder) of the
Securities of such defaulting Initial Purchaser or Initial Purchasers for which
such arrangements have not been made.

(c)           If, after giving effect to any arrangements for
the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Company as provided
in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the Company shall
not exercise the right described in paragraph (b) above, then this Agreement
shall terminate without liability on the part of the non-defaulting Initial
Purchasers. Any termination of this Agreement pursuant to this Section 9 shall
be without liability on the part of the Company or the Guarantors, except that the Company and each of the Guarantors will continue to be liable for the payment
of expenses as set forth in Section 10 hereof and except that the
provisions of Section 7 hereof shall not terminate and shall remain in effect.

(d)           Nothing contained herein shall relieve a
defaulting Initial Purchaser of any liability it may have to the Company, the Guarantors or any non-defaulting Initial Purchaser
for damages caused by its default.

10.           Payment of Expenses. (a)
Whether or not the transactions contemplated by this Agreement are consummated
or this Agreement is terminated, the Company and each of the Guarantors jointly
and severally agree to pay or cause to be paid all costs and expenses incident
to the performance of their respective obligations hereunder, including without
limitation, (i) the costs incident to the authorization, issuance, sale,

 24
 

preparation and delivery
of the Securities and any taxes payable in that connection; (ii) the costs
incident to the preparation and printing of the Preliminary Offering Memorandum,
any other Time of Sale Information, any Issuer Written Communication and the
Offering Memorandum (including any amendment or supplement thereto) and the
distribution thereof; (iii) the costs of reproducing and distributing each
of the Transaction Documents; (iv) the fees and expenses of the Company’s and
the Guarantors’ counsel and independent accountants; (v) the fees and expenses
incurred in connection with the registration or qualification and determination
of eligibility for investment of the Securities under the laws of such
jurisdictions as the Representative may designate and the preparation, printing
and distribution of a Blue Sky Memorandum (including the related reasonable fees
and expenses of counsel for the Initial Purchasers); (vi) any fees charged
by rating agencies for rating the Securities; (vii) the fees and expenses
of the Trustee and any paying agent (including related fees and expenses of any
counsel to such parties); (viii) all expenses and application fees incurred in
connection with the application for the inclusion of the Securities on the
PORTAL Market and the approval of the Securities for book-entry transfer by
DTC; and (ix) all expenses incurred by the Company in connection with any “road
show” presentation to potential investors, provided that one half of the costs
of any aircraft chartered in connection with the road show will be paid by the
Initial Purchasers. It is understood that except as expressly provided in this
Section (a) and (b) and Section 7, the Initial Purchasers will pay all of their
costs and expenses, including fees and disbursements of their counsel, transfer
taxes payable on resale of any of the Securities by them and any advertising
expenses connected with any offers they may make.

(b)           If (i) this Agreement is terminated pursuant
to Section 8, (ii) the Company for any reason fails to tender the Securities
for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline
to purchase the Securities for any reason permitted under this Agreement, the
Company and each of the Guarantors
jointly and severally agrees to reimburse the Initial Purchasers for all
out-of-pocket costs and expenses (including the fees and expenses of their
counsel) reasonably incurred by the Initial Purchasers in connection with this
Agreement and the offering contemplated hereby.

11.           Persons Entitled to
Benefit of Agreement. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and any
controlling persons referred to herein, and the affiliates, officers and
directors of each Initial Purchaser referred to in Section 7 hereof. Nothing in
this Agreement is intended or shall be construed to give any other person any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision contained herein. No purchaser of Securities from any Initial
Purchaser shall be deemed to be a successor merely by reason of such purchase.

12.           Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company, the Guarantors
and the Initial Purchasers contained in this Agreement or made by or on behalf
of the Company, the Guarantors or the Initial
Purchasers pursuant to this
Agreement or any certificate delivered pursuant hereto shall survive the
delivery of and payment for the Securities and shall remain in full

 25
 

force
and effect, regardless of any termination of this Agreement or any
investigation made by or on behalf of the Company, the Guarantors or the Initial Purchasers.

13.           Certain Defined
Terms. For purposes of this Agreement, (a) except where otherwise expressly
provided, the term “affiliate” has the meaning set forth in Rule 405 under the
Securities Act; (b) the term “business day” means any day other than a day on
which banks are permitted or required to be closed in New York City; (c) the
term “Exchange Act” means the
Securities Exchange Act of 1934, as amended; (d) the term “subsidiary” has the
meaning set forth in Rule 405 under the Securities Act; and (e) the term “written
communication” has the meaning set forth in Rule 405 under the Securities Act.

14.           Miscellaneous. (a)
Authority of the Representative. Any
action by the Initial Purchasers hereunder may be taken by J.P. Morgan
Securities Inc. on behalf of the Initial Purchasers, and any such action taken
by J.P. Morgan Securities Inc. shall be binding upon the Initial Purchasers.

(b)           Notices. All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Initial Purchasers shall be
given to the Representative c/o J.P. Morgan Securities Inc., 270 Park Avenue,
New York, New York 10017 (fax: (212) 270-1063); Attention: Gerry Murray. Notices
to the Company and the Guarantors shall be given to them at 1300
South 2nd Street, Pekin, Illinois 61554, fax: (309) 347-8541;
Attention: Ronald Miller, with a copy to Richard Truesdell, Davis Polk &
Wardwell, 450 Lexington Avenue, NY, NY 10017, fax: (212) 450-3674.

(c)           Governing
Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

(d)           Counterparts.
This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of
which shall be an original and all of which together shall constitute one and
the same instrument.

(e)           Amendments or Waivers. No amendment or waiver of any provision of this
Agreement, nor any consent or approval to any departure therefrom, shall in any
event be effective unless the same shall be in writing and signed by the parties hereto.

(f)            Headings. The headings herein are included for convenience
of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.

 26
 

If the foregoing
is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name:

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Guarantors:

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name:

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name:

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE POWER, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name:

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 27
 

 

	
  

  	
  AVENTINE RENEWABLE ENERGY-AURORA WEST, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name 

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY-MT. VERNON, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajay Sabherwal

  	
   

  
	
   

  	
  Name

  	
  Ajay Sabherwal

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

	
  Accepted:

  	
   

  	
  , 2007

  
	
   

  
	
  J.P. MORGAN
  SECURITIES INC.

  
	
   

  
	
  For itself and
  on behalf of the

  
	
  several Initial
  Purchasers listed

  
	
  in Schedule 1
  hereto.

  
	
   

  
	
   

  
	
  By

  	
  /s/ Thomas
  Bergen

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
  Thomas Bergen

  	
   

  
	
   

  	
  Executive Director

  	
   

  
					

 

 28
 

Schedule 1

	
  Initial Purchaser

  	
   

  	
  Principal Amount

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  $

  	
  120,000,000

  	
   

  
	
  Goldman, Sachs
  & Co.

  	
   

  	
  $

  	
  90,000,000

  	
   

  
	
  UBS Securities
  LLC

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Banc of America
  Securities LLC

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  Wachovia Capital
  Markets, LLC

  	
   

  	
  $

  	
  7,500,000

  	
   

  
	
  Friedman,
  Billings, Ramsey & Co., Inc.

  	
   

  	
  $

  	
  7,500,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  300,000,000

  	
   

  

 

 29
 

Schedule 2

List of Guarantors

Aventine Renewable
Energy, Inc.

Aventine Renewable Energy, LLC

Aventine Renewable Energy - Aurora West, LLC

Aventine Renewable Energy – Mt. Vernon, LLC

Avnetine Power, LLC

 30
 

ANNEX A

a.             Additional Time of
Sale Information

1.             Term sheet containing the terms of the
securities, substantially in the form of Annex B.

 31

ANNEX B

AVENTINE
RENEWABLE ENERGY HOLDINGS, INC

 

Pricing
Term Sheet

 

	
  Issuer:

  	
   

  	
  Aventine Renewable Energy Holdings, Inc.

  
	
  Security Description:

  	
   

  	
  Senior Notes

  
	
  Distribution:

  	
   

  	
  144A/RegS w/ Registration Rights

  
	
  Face:

  	
   

  	
  $300,000,000

  
	
  Gross Proceeds:

  	
   

  	
  $300,000,000

  
	
  Coupon:

  	
   

  	
  10%

  
	
  Maturity:

  	
   

  	
  April 1, 2017

  
	
  Offering Price:

  	
   

  	
  100.000%

  
	
  Yield to Maturity:

  	
   

  	
  10%

  
	
  Spread to Treasury:

  	
   

  	
  +453 basis points

  
	
  Benchmark:

  	
   

  	
  UST 4.625% due 2/15/2017

  
	
  Ratings:

  	
   

  	
  B3/B-

  
	
  Interest Pay Dates:

  	
   

  	
  April 1 and October 1

  
	
  Beginning:

  	
   

  	
  October 1, 2007

  
	
  Equity Clawback:

  	
   

  	
  Up to 35% at 110%

  
	
  Until:

  	
   

  	
  April 1, 2010

  
	
   

  	
   

  	
   

  
	
  Optional redemption:

  	
   

  	
   

  

 

	
  On or after:

  	
   

  	
  Price:

  	
   

  
	
  April 1, 2012

  	
   

  	
  105.000

  	
   

  
	
  April 1, 2013

  	
   

  	
  103.333

  	
   

  
	
  April 1, 2014

  	
   

  	
  101.667

  	
   

  
	
  April 1, 2015 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

	
  Change of Control (as defined):

  	
   

  	
  Put @ 101% of principal plus accrued interest

  
	
  Trade Date:

  	
   

  	
  March 21, 2007

  
	
  Settlement Date:

  	
  (T+4)

  	
   

  	
  March 27, 2007

  
	
  CUSIP:

  	
   

  	
  144A: 053505AB9

  
	
   

  	
   

  	
  Reg S: U05353AA2

  
	
  ISIN:

  	
   

  	
  USU05353AA29

  
	
  Denominations:

  	
   

  	
  2,000x1,000

  
	
   

  	
   

  	
   

  
	
  Bookrunners:

  	
   

  	
  JPMorgan

  
	
   

  	
   

  	
  Goldman, Sachs & Co.

  
	
   

  	
   

  	
  UBS Investment Bank

  
				

 

  
 32
 

 

	
  Co-Managers:

  	
   

  	
  Banc of America Securities LLC

  
	
   

  	
   

  	
  Wachovia Securities

  
	
   

  	
   

  	
  Friedman Billings Ramsey

  
	
   

  	
   

  	
   

  
	
  Additional Comments:

  	
   

  	
  The following language replaces clause (3) of the
  Limitation on liens found in the Preliminary Offering Memorandum: (3) Liens
  securing Indebtedness not to exceed the greater of (x) the Borrowing Base
  determined at the time of Incurrence of such Indebtedness plus 1.0 times
  EBITDA for the most recently ended four fiscal quarters for which internal
  financial statements are available at the time of Incurrence of such
  Indebtedness and (y) $250 million, provided that any Liens securing
  Indebtedness outstanding under the Credit Facilities on the Closing Date
  shall be deemed to have been Incurred under this clause (3);

  

 

On March 21, 2007, Aventine Renewable Energy Holdings, Inc. filed an
8-K detailing two new contracts related to the construction of their two
proposed 113 million gallon ethanol facilities in Aurora, Nebraska and Mount
Vernon, Indiana.  This 8-K is
incorporated herein by reference.

  
 33
 

ANNEX C

 

Restrictions on Offers and Sales Outside the United States

In connection with offers and sales of Securities outside the United
States: 

(a)           Each Initial Purchaser acknowledges that the
Securities have not been registered under the Securities Act and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons except pursuant to an exemption from, or in transactions not
subject to, the registration requirements of the Securities Act.

 

(b)           Each Initial Purchaser, severally and not
jointly, represents, warrants and agrees that:

 

(i)            Such Initial Purchaser has offered and sold
the Securities, and will offer and sell the Securities, (A) as part of their
distribution at any time and (B) otherwise until 40 days after the later of the
commencement of the offering of the Securities and the Closing Date, only in
accordance with Regulation S under the Securities Act (“Regulation S”) or Rule
144A or any other available exemption from registration under the Securities
Act.

 

(ii)           None of such Initial Purchaser or any of its affiliates or any other
person acting on its or their behalf has engaged or will engage in any directed
selling efforts with respect to the Securities, and all such persons have
complied and will comply with the offering restrictions requirement of Regulation
S.

 

(iii)          At or prior to the confirmation of sale of any Securities sold in
reliance on Regulation S, such Initial Purchaser will have sent to each
distributor, dealer or other person receiving a selling concession, fee or
other remuneration that purchase Securities from it during the distribution
compliance period a confirmation or notice to substantially the following
effect:

 

“The Securities
covered hereby have not been registered under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons (i) as part
of their distribution at any time or (ii) otherwise until 40 days after the
later of the commencement of the offering of the Securities and the date of
original issuance of the Securities, except in accordance with Regulation S or
Rule 144A or any other available exemption from registration under the
Securities Act.  Terms used above have
the meanings given to them by Regulation S.”

(iv)          Such Initial Purchaser has not and will not enter into any contractual
arrangement with any distributor with respect to the distribution of the
Securities, except with its affiliates or with the prior written consent of the
Company.

  
 34
 

Terms used in paragraph (a) and this paragraph (b) and not otherwise
defined in this Agreement have the meanings given to them by Regulation S.

  
 35
 

ANNEX D

[Opinion of Davis Polk
& Wardwell, counsel for the Company]

  
 36
 

Exhibit
A

 

[Form of Registration Rights Agreement]

  
 37Exhibit
10.1

FOURTH AMENDMENT, dated
as of March 23, 2007 (this “Amendment”), to the CREDIT AGREEMENT dated
as of July 30, 2004 (as amended by the First Amendment, dated as of October 8,
2004, the Second Amendment, dated as of December 10, 2004, and the Third
Amendment, dated as of December 13, 2005, and as otherwise amended,
supplemented or modified from time to time, the “Credit Agreement”),
among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the “US
Borrower”), ROCKWOOD SPECIALTIES LIMITED, a company incorporated under the
laws of England and Wales (the “UK Borrower”), ROCKWOOD SPECIALTIES
INTERNATIONAL, INC., a Delaware corporation (“Holdings”), the lending
institutions from time to time parties thereto, CREDIT SUISSE (formerly known
as Credit Suisse First Boston) (“Credit Suisse”), as Administrative
Agent and as Collateral Agent, and GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”),
and UBS SECURITIES LLC (“UBS”), as Co-Syndication Agents.

A.  The
Borrowers have requested that the Credit Agreement be amended to, among other
things, provide for new Tranche G Term Loans, the proceeds of which will be
used to repay in full all currently outstanding Tranche F Term Loans.  The Borrowers have appointed Credit Suisse
and GSCP to act as exclusive joint lead arrangers and exclusive joint
bookrunners for this Amendment and have agreed that Credit Suisse will have “left”
placement in any and all marketing materials or other documentation used in
connection with this Amendment and the syndication of the Tranche G Term Loans.

B.  Each existing Lender with a Tranche F Term
Loan Commitment or with outstanding Tranche F Term Loans (an “Existing
Tranche F Term Loan Lender”) that executes and delivers a signature page to
this Amendment specifically in the capacity of a “Continuing Tranche F Term
Loan Lender” (a “Continuing Tranche F Term Loan Lender”) will be deemed
upon the Fourth Amendment Effective Date to have agreed to the terms of this
Amendment and to have made a commitment to make Tranche G Term Loans in an aggregate
principal amount up to, but not in excess of, the aggregate principal amount of
such Existing Tranche F Term Loan Lender’s outstanding Tranche F Term Loans
immediately prior to the Fourth Amendment Effective Date (“Existing Tranche
F Term Loans”).  Each Existing
Tranche F Term Loan Lender that executes and delivers this Amendment solely in
the capacity as an Existing Tranche F Term Loan Lender and not specifically as
a Continuing Tranche F Term Loan Lender shall be deemed to have agreed to this
Amendment, but will not be deemed by virtue of such execution and delivery to
have undertaken any commitment to make Tranche G Term Loans.

C.  Each Person (other than a Continuing Tranche
F Term Loan Lender in its capacity as such) that agrees to make Tranche G Term
Loans (an “Additional Tranche G Term Loan Lender”) will, on the Fourth
Amendment Effective Date, make such Tranche G Term Loans to the US Borrower in
Euro in the manner contemplated by Section 3. 
The cash proceeds to the US Borrower of any such Tranche G Term Loans
will be used solely to repay in full the outstanding principal amount of the
Existing Tranche F Term Loans of the Existing Tranche F Term Loan Lenders
(other than any such Existing Tranche F Term Loans refinanced pursuant to an
exchange thereof for Tranche G Term Loans as provided herein) and to pay fees
and expenses in connection with such prepayments and with this Amendment.

D.  The Required Lenders are willing to effect
such amendment (and the other amendments set forth herein) and the Continuing
Tranche F Term Loan Lenders and the 

 

Additional Tranche
G Term Loan Lenders are willing to make Tranche G Term Loans as contemplated
hereby, in each case, on the terms and subject to the conditions of this
Amendment.

E.  Capitalized
terms used but not defined herein shall have the meanings assigned to such
terms in the Credit Agreement, as amended hereby.

Accordingly, 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 agree as follows:

SECTION 1. 
Amendment of the Credit Agreement.  The Credit Agreement is hereby amended,
effective as of the Fourth Amendment Effective Date, as follows:

(a)  Amendment
of Section 1.01. 
Section 1.01 is hereby revised by

(i) inserting the following definitions in the appropriate alphabetical
order therein:

“Continuing
Tranche F Term Loan Lenders” shall mean those Lenders under the Credit
Agreement immediately prior to the Fourth Amendment Effective Date that execute
and deliver a signature page to the Fourth Amendment specifically in the
capacity of a “Continuing Tranche F Term Loan Lender”.

“Fourth Amendment” shall mean the Fourth Amendment to this
Agreement, dated as of March 23, 2007.

“Fourth Amendment Effective Date” shall mean March 23, 2007, the
date on which the conditions set forth in Section 3(c) of the Fourth Amendment
are satisfied.

“Required
Tranche G Term Loan Lenders” shall mean, at any date, Non-Defaulting
Lenders having or holding a majority of the sum of (a) the portion of the
Adjusted Total Term Loan Commitment that relates to Tranche G Term Loan
Commitments at such date and (b) the outstanding principal amount of the
Tranche G Term Loans (excluding the Tranche G Term Loans held by Defaulting
Lenders) in the aggregate at such date.

“Tranche G Repayment Amount” shall have the meaning
provided in Section 2.5(b)(iv).

“Tranche G Repayment Date” shall have the meaning provided
in Section 2.5(b)(iv).

“Tranche G Term Loan” shall mean
a Loan made to the US Borrower in Euro on the Fourth Amendment Effective Date
pursuant to Section 3 of the Fourth Amendment. 
On the Fourth Amendment Effective Date, the aggregate principal amount
of the Tranche G Term Loans shall be €269,314,259.17.

“Tranche G Term Loan Commitment” shall mean, with respect to
each Lender, the commitment of such Lender to make Tranche G Term Loans
hereunder pursuant to Section 3 of the Fourth Amendment on the Fourth Amendment
Effective Date.  The amount of each
Lender’s Tranche G Term Loan Commitment is set forth on Schedule A to the
Fourth Amendment (as 

 2
 

appended to the Fourth Amendment on the
Fourth Amendment Effective Date) or in the Assignment and Acceptance pursuant
to which such Lender assumed its Tranche G Term Loan Commitment, in each case
as the same may be changed from time to time pursuant to the terms hereof.

“Tranche G Term Loan Lender” shall mean each Lender with a
Tranche G Term Loan Commitment or with outstanding Tranche G Term Loans.

“Tranche G Term Loan Maturity Date” shall mean the date
that is eight years after the Funding Date, or, if such date is not a Business
Day, the next preceding Business Day; provided, however, that the
Tranche G Term Loan Maturity Date will automatically become the Refinancing
Date in the event that on or prior to the Refinancing Date either (a) the
Subordinated Notes shall not have been extended, renewed, replaced or otherwise
refinanced in full in accordance with the terms hereof by Indebtedness which
shall have a final maturity no earlier than (and which shall not require any
mandatory payments of principal in excess of $75,000,000 (except pursuant to
asset sale or change of control provisions that are no more materially adverse
to the interests of the Lenders than those relating to the Subordinated Notes
as in effect on the date hereof) any earlier than) the date that is 182 days
following the date that is eight years after the Funding Date or (b) legal
defeasance or similar arrangements reasonably satisfactory to the Administrative
Agent shall not have been made for the repayment or redemption of the
Subordinated Notes in full.

(ii) revising the definitions of the terms set forth below to read as
follows:

“Applicable Eurodollar Margin” shall mean at any date with
respect to each Eurodollar Loan that is a Revolving Credit Loan, a Tranche A-1
Term Loan, a Tranche A-2 Term Loan, a Tranche E Term Loan or a Tranche G Term
Loan, the applicable percentage per annum set forth below based upon the Status
in effect on such date:

	
   

  	
  Status

  	
   

  	
   

  	
  Applicable Eurodollar

  Margin Revolving

  Credit Loans, Tranche

  A-1 Term Loans and

  Tranche A-2 Term Loans

  	
   

  	
  Applicable Eurodollar

  Margin Tranche E

  Term Loans

  	
   

  	
  Applicable Eurodollar

  Margin Tranche G

  Term Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level I Status

  	
   

  	
  2.50

  	
  %

  	
  2.00

  	
  %

  	
  2.25

  	
  %

  
	
  Level II Status

  	
   

  	
  2.25

  	
  %

  	
  2.00

  	
  %

  	
  2.25

  	
  %

  
	
  Level III Status

  	
   

  	
  2.00

  	
  %

  	
  1.75

  	
  %

  	
  2.00

  	
  %

  
	
  Level IV Status

  	
   

  	
  1.75

  	
  %

  	
  1.75

  	
  %

  	
  2.00

  	
  %

  

 

Notwithstanding the foregoing, (a) the term “Applicable Eurodollar
Margin” shall mean, with respect to each Eurodollar Loan that is a Revolving
Credit Loan, a Tranche A-1 Term Loan or a Tranche A-2 Term Loan, 2.50% during
the period from and including the Funding Date to but excluding the Initial
Financial Statement Delivery Date, (b) in the event that the Tranche E Term
Loans shall at any time be rated at least Ba3 by Moody’s and at least BB- by
S&P, the term “Applicable Eurodollar Margin” shall mean, from and after
such date and until such time as 

 3
 

such ratings shall no longer be applicable,
with respect to each Eurodollar Loan that is a Tranche E Term Loan, the
applicable percentage per annum set forth above based upon the Status in effect
on such date minus 0.25% and (c) in the event that the Tranche G Term Loans
shall at any time be rated at least Ba3 by Moody’s and at least BB- by S&P,
the term “Applicable Eurodollar Margin” shall mean, from and after such date
and until such time as such ratings shall no longer be applicable, with respect
to each Eurodollar Loan that is a Tranche G Term Loan, the applicable
percentage per annum set forth above based upon the Status in effect on such
date minus 0.25%.

“Lenders” shall mean (a) the Persons listed on Schedule 1.1(c),
(b) effective as of the Fourth Amendment Effective Date, the Persons
listed on Schedule A to the Fourth Amendment (as appended to the Fourth
Amendment on the Fourth Amendment Effective Date) and (c) any other Person that
becomes a party hereto pursuant to an Assignment and Acceptance, other than any
such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance
or otherwise ceases to have any Loans or Commitments hereunder.

“Term Loan” shall mean any Tranche A-1 Term Loan, Tranche A-2
Term Loan, Tranche E Term Loan or Tranche G Term Loan (or, as the context may
require, any other term loan made hereunder prior to the Fourth Amendment
Effective Date).

(iii) in the definition of “Available Amount”, (A) deleting the words “Closing
Date” in sub-clause (i) of clause (b) of such definition and replacing them
with the words “Fourth Amendment Effective Date”, (B) deleting the words “Closing
Date” in sub-clause (ii) of clause (b) of such definition and replacing them
with the words “Fourth Amendment Effective Date”, and (C) inserting after the
words “of the Subordinated Notes” in sub-clause (iii) of clause (b) of such
definition the words “(other than any such prepayment made pursuant to
sub-clause (z) of the proviso of Section 10.7(a))”.

(iv) in the definition of “Available Excess Cash Flow”, inserting after
the words “of the Subordinated Notes” in sub-clause (iii) of sub-clause (B) of
clause (y) of such definition the words “(other than any such prepayment made
pursuant to sub-clause (z) of the proviso of Section 10.7(a))”.

(v) in the definition of “CAM Dollar Lender”, deleting the words “Tranche
F Term Loans” and replacing them with “Tranche G Term Loans”.

(vi) in the definition of “Class”, deleting the words (A) “Tranche F
Term Loans” and replacing them with “Tranche G Term Loans” and (B) “Tranche F
Term Loan Commitment” and replacing them with “Tranche G Term Loan Commitment”.

(vii) in the definition of “Eurodollar Rate” deleting the words “the
Tranche C Term Loans” in the first parenthetical in such definition and
replacing them with the words “ the Tranche G Term Loans”.

(viii) in the definition of “Foreign Currency Borrowing” deleting the
words “Tranche C Term Loans” and replacing them with the words “Tranche G Term
Loans”.

(ix) in the definition of “Foreign Currency Loan” deleting the words “Tranche
C Term Loans” and replacing them with the words “Tranche G Term Loans”.

 4
 

 

(x) in the definition of “Maturity Date” deleting the words “Tranche F
Term Loan Maturity Date” and replacing them with the words “Tranche G Term Loan
Maturity Date”.

(xi) in the definition of “Qualified Preferred Stock” deleting the
words “Tranche C Term Loan Maturity Date” in each instance in which they appear
in such definition and replacing them with the words “Tranche G Term Loan
Maturity Date”.

(xii) in the definition of “Repayment Amount” deleting the words “Tranche
F Repayment Amount” and replacing them with the words “Tranche G Repayment
Amount”.

(xiii) in the definition of “Repayment Date” deleting the words “Tranche
D Repayment Date or a Tranche C Repayment Date” and replacing them with the
words “Tranche E Repayment Date or a Tranche G Repayment Date”.

(xiv) in the definition of “Term Loan Commitment” deleting the words “Tranche
F Term Loan Commitment” and replacing them with the words “Tranche G Term Loan
Commitment”.

(xv) in the definition of “Type” deleting the words “Tranche F Term Loan”
and replacing them with the words “Tranche G Term Loan”.

and

(xvi) deleting the following definitions in
their entirety:  “Required Tranche F
Lenders”, “Tranche F Repayment Amount”, “Tranche F Repayment Date”, “Tranche F
Term Loan”, “Tranche F Term Loan Commitment” and “Tranche F Term Loan Maturity
Date”.

(b)  Amendment of Section 2.1.

(i) Section 2.1(a)(v) is deleted in its
entirety and replaced with the following: “each Lender having a Tranche G Term
Loan Commitment severally agrees, pursuant to, and in accordance with, the
Fourth Amendment, to make a Tranche G Term Loan or Tranche G Term Loans on the
Fourth Amendment Effective Date to the US Borrower in Euro, which Tranche G
Term Loans shall not exceed for any such Lender the Tranche G Term Loan Commitment
of such Lender as of the Fourth Amendment Effective Date, provided that
each Continuing Tranche F Term Loan Lender having a Tranche G Term Loan
Commitment shall make Tranche G Term Loans on the Fourth Amendment Effective
Date by exchanging its existing term loans designated as “Tranche F Term Loans”
under the Credit Agreement immediately prior to the Fourth Amendment Effective
Date for Tranche G Term Loans in the manner contemplated by Section 3 of the
Fourth Amendment.”

(ii) The second paragraph of Section 2.1(a)
is deleted in its entirety and replaced with the following: “Such Term Loans
shall be made on the Funding Date (except as provided in clause (iii), clause
(iv) or clause (v) above).  Such Term
Loans (i) may, in respect of Tranche E Term Loans and at the option of the US
Borrower, be incurred and maintained as, and/or converted into, ABR Loans or
Eurodollar Term Loans, provided that all such Term Loans made by each of
the Lenders pursuant to the same Borrowing shall, unless otherwise specifically
provided herein, consist entirely of Term Loans of the same Type, (ii) shall,
in respect of Tranche A-1 Term Loans, Tranche A-2 Term Loans and Tranche G Term
Loans, be incurred and maintained as Eurodollar Term Loans, (iii) may be
repaid or prepaid in accordance with the provisions hereof, but once repaid or
prepaid, may not be 

 5
 

reborrowed and (iv) shall not exceed in the aggregate the total of all
Tranche A Term Loan Commitments, Tranche E Term Loan Commitments or
Tranche G Term Loan Commitments, as applicable. 
On the Tranche A-1 Term Loan Maturity Date, all Tranche A-1 Term Loans
shall be repaid in full.  On the
Tranche A-2 Term Loan Maturity Date, all Tranche A-2 Term Loans shall
be repaid in full.  On the Tranche E
Term Loan Maturity Date, all Tranche E Term Loans shall be repaid in
full.  On the Tranche G Term Loan
Maturity Date, all Tranche G Term Loans shall be repaid in full.”

(c)  Amendment
of Section 2.5.  Section 2.5 is
revised by:

(i) deleting the fourth sentence of clause (a) of such section in its
entirety and replacing it with the following sentence: “The US Borrower shall
repay to the Administrative Agent, for the benefit of the Lenders, on the
Tranche G Term Loan Maturity Date, the then-unpaid Tranche G Term Loans, in
Euro.”;

(ii) deleting the lead-in sentence above the table in clause (b)(iv) of
such section in its entirety and replacing it with the following lead in
sentence:  “The US Borrower shall repay
to the Administrative Agent, in Euro, for the benefit of the Lenders of
Tranche G Term Loans, on each date set forth below (each a “Tranche G
Repayment Date”), the principal amount of the Tranche G Term Loans
equal to (x) the outstanding principal amount of Tranche G Term Loans
immediately after funding on the Fourth Amendment Effective Date multiplied by
(y) the percentage set forth below opposite such Tranche G Repayment Date
(each a “Tranche G Repayment Amount”):”;

(iii) deleting in clause (b)(iv) of such section (A) the words “Tranche
F Repayment Amount” at the top of the second column in the table and replacing
them with the words “Tranche G Repayment Amount” and (B) the words “Tranche F
Term Loan Maturity Date” in the last row in the first column in the table and
replacing them with the words “Tranche G Term Loan Maturity Date”.

(d)  Amendment
of Section 2.6.  Section 2.6 is
revised by deleting the words “Tranche F Term Loans” in clause (b) of such
section and replacing them with the words “Tranche G Term Loans”.

(e)  Amendment
of Section 4.3.  Section 4.3(a) is
revised by deleting such section in its entirety and replacing it with the
following paragraph:

“(a)  €167,630,542.28 of the
Tranche A Term Loan Commitments shall terminate at 5:00 p.m. (New York time) on
the Funding Date.  €41,907,635.58 of the
Tranche A Term Loan Commitments shall terminate at 5:00 p.m. (New York time) on
September 30, 2004. All of the Tranche E Term Loan Commitments shall terminate
at 5:00 p.m. (New York time) on the Third Amendment Effective Date.  All of the Tranche G Term Loan Commitments
shall terminate at 5:00 p.m. (New York time) on the Fourth Amendment Effective
Date”.

(f)  Amendment of Section 5.1.  Section 5.1 is revised by (i) deleting the
words “Tranche F Term Loans” in clause (a) of the second sentence of such
section and replacing them with the words “Tranche G Term Loans” and (ii)
deleting the words “Tranche F Repayment Amounts” in clause (b) of the second
sentence of such section and replacing them with the words “Tranche G Repayment
Amounts”.

 6
 

 

(g)  Amendment
of Section 5.2.  Section 5.2 is revised
by (A) inserting the following sentence at the end of sub-clause (i) of clause
(a) of such section: “For avoidance of doubt, no prepayment shall be required
pursuant to this Section 5.2(a)(i) for any Prepayment Events that have occurred
prior to the Fourth Amendment Effectiveness Date.” and (B)(i) deleting the
words “the Tranche F Term Loans” in clause (c) of such section and
replacing them with the words “the Tranche G Term Loans”, (ii) deleting the
words “each Tranche F Term Loan Lender” in the second sentence of clause (c) of
such section and replacing them with the words “each Tranche G Term Loan Lender”,
(iii) deleting the words “Tranche F Term Loans” in the second sentence of
clause (c) of such section and replacing them with the words “Tranche G Term
Loans” and (iv) deleting the words “Tranche F Term Loans” in clause (d) of such
section and replacing them with the words “Tranche G Term Loans”.

(h)  Amendment
of Section 9.13.  Section 9.13 is
revised by:

(i) deleting the words “other than any Term Loans funded under the
Tranche A Term Loan Commitment after the Funding Date, any Tranche E Term Loans
funded pursuant to Section 2.1(a)(iv)(y) on the First Amendment Effective Date
and Tranche F Term Loans funded pursuant to Section 2.1(a)(v)(y) on the First
Amendment Effective Date” in the parenthetical of the second sentence of such
section and replacing them with the words “other than any Term Loans funded
under the Tranche A Term Loan Commitment pursuant to Section 2.1(a)(i) or
Section 2.1(a)(ii), as applicable, after the Funding Date, any Tranche E Term
Loans funded pursuant to Section 2.1(a)(iv) on the Third Amendment Effective
Date and any Tranche G Term Loans funded pursuant to Section 2.1(a)(v) on the
Fourth Amendment Effective Date”; and

(ii) deleting clause (ii) of the last sentence of such section and
replacing it with the following: “ (ii) use the proceeds of all Tranche G Term
Loans funded on the Fourth Amendment Effective Date solely to repay in full the
outstanding principal amount of those existing term loans designated as “Tranche
F Term Loans” under the Credit Agreement immediately prior to the Fourth
Amendment Effective Date and to pay fees and expenses in connection with such
prepayments and with the Fourth Amendment”.

(i)  Amendment
of Section 10.1.  Section 10.1 is
revised by:

(i) deleting the words “Closing Date” in sub-clause (iii) of clause (f)
of such section and replacing them with the words “Fourth Amendment Effective
Date”;

(ii) inserting before the words “the aggregate amount of such
Indebtedness and all Indebtedness incurred under clause (k) below” in
sub-clause (z) of the proviso to sub-clause (i) of clause (j) of such section
the words “in respect of any such Indebtedness incurred on and after the Fourth
Amendment Effective Date,”;

(iii) inserting before the words “the aggregate amount of such
Indebtedness and all Indebtedness assumed or permitted to exist under
clause (j) above” in sub-clause (z) of the proviso to sub-clause (i) of
clause (k) of such section the words “in respect of any such Indebtedness
incurred on and after the Fourth Amendment Effective Date,”;

 7

(iv) inserting before the words “Indebtedness of Restricted Foreign
Subsidiaries” in clause (l) of such section the following: “(i)”;

(v) inserting after the words “Indebtedness of Restricted Foreign
Subsidiaries” in clause (l) of such section the words “existing as of the
Fourth Amendment Effective Date and any refinancing, refunding, renewal or
extension thereof, provided that the principal amount thereof is not
increased above the principal amount thereof outstanding as of the Fourth
Amendment Effective Date and (ii)(x) Indebtedness of Restricted Foreign
Subsidiaries incurred after the Fourth Amendment Effective Date”;

(vi) deleting the words “minus (ii)” in clause (l) of such
section and replacing them with the words “minus (y)” and inserting
before the words “clause (n)” in clause (l) of such section the words “sub-clause
(ii) of”;

(vii) inserting after the words “additional Indebtedness” in sub-clause
(i) of clause (n) of such section the following words: “incurred and
outstanding pursuant to this clause (n) prior to the Fourth Amendment Effective
Date, (ii) additional Indebtedness incurred after the Fourth Amendment
Effective Date”;

(viii) deleting the words “this clause (n)” in the proviso of
sub-clause (i) of clause (n) of such section and replacing them with the words “this
sub-clause (ii) of this clause (n) on or after the Fourth Amendment Effective
Date”;

(ix) deleting the words “(ii) any refinancing, refunding, renewal or
extension of any Indebtedness specified in subclause (i) above” in clause (n)
of such section and replacing them with the words “(iii) any refinancing,
refunding, renewal or extension of any Indebtedness specified in sub-clauses
(i) and (ii) above; provided that in the case of any such refinancing,
refunding, renewal or extension relating to Indebtedness under sub-clause (i),
the principal amount thereof is not increased above the principal amount
thereof outstanding as of the Fourth Amendment Effective Date “; and

(x) deleting the “and” at the end of clause (n) of such section and inserting
after clause (o) the following:  “; and
(p) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness
represented by letters of credit, bank guarantees or other similar instruments,
provided that such Indebtedness shall not exceed $50,000,000 in the
aggregate at any time outstanding”.

(j)  Amendment
of Section 10.2.  Section 10.2 is
revised by:

(i)  deleting the “and” at the
end of clause (g) of such section and deleting clause (h) in its entirety and
replacing it with the following:  “(h)
(i) Liens existing as of the Fourth Amendment Effective Date and any
replacement, extension or renewal (without increase in the amount or change in
any direct or contingent obligor except to the extent otherwise permitted
hereunder) of the Indebtedness secured thereby and (ii) additional Liens
incurred after the Fourth Amendment Effective Date so long as the aggregate
principal amount of the obligations so secured does not exceed $75,000,000 at
any time outstanding.”; and

(ii) inserting after clause (h) of such section the following “; and
(i) Liens securing Indebtedness permitted pursuant to Section 10.1(p), provided
that if such Liens shall exist on any Collateral, the beneficiaries thereof (or
an agent on their behalf) shall have entered into an 

 8
 

intercreditor
agreement with the Collateral Agent that is reasonably satisfactory to the
Collateral Agent”.

(k)  Amendment
of Section 10.4.  Section 10.4 is
revised by:

(i) deleting the words “as of the Closing Date” in sub-clause (i) of
the proviso in clause (b) of such section and replacing them with the words “as
of December 31, 2006”;

(ii) inserting after the words “provided that” in the proviso in
clause (b) of such section the words “in the case of any such sale, transfer or
other disposition on and after the Fourth Amendment Effective Date”; and

(iii) deleting the “and” at the end of clause (d) of such section and
inserting at the end of clause (e) of such section the following words “; and
(f) the sale of the Groupe Novasep segment.”

(l)  Amendment
of Section 10.5.  Section 10.5 is
revised by:

(i) inserting after the words “provided that” in clause (j) of
such section the words “, in the case of any Permitted Acquisition on or after
the Fourth Amendment Effective Date”;

(ii) inserting after the words “provided that” in clause (k) of
such section the words “, in the case of any such investment made on or after
the Fourth Amendment Effective Date”;

(iii) deleting the words “Section 10.5(m)” in the proviso of clause (k)
of such section and replacing them with the words “Section 10.5(m)(ii)”;

(iv) deleting the words “additional investments (including investments
in Minority Investments and Unrestricted Subsidiaries)” in clause (m) of such
section and replacing them with the words “(i) additional investments
(including investments in Minority Investments and Unrestricted Subsidiaries)
made under this clause (m) prior to the Fourth Amendment Effective Date or (ii)
such additional investments (including investments in Minority Investments and
Unrestricted Subsidiaries) made thereafter”;

(v) inserting after the words “provided, that with respect to
investments in Foreign Joint Ventures” in clause (m) of such section the words “made
on or after the Fourth Amendment Effective Date”; and

(vi) deleting the words “Section 10.5(m)” in the proviso of clause (m)
of such section and replacing them with the words “Section 10.5(m)(ii)”.

(m)  Amendment
of Section 10.6.  Section 10.6 is
revised by inserting after the words “exceed $5,000,000 in the aggregate per
fiscal year” in clause (e) of such section the words “, except that such
expenses may exceed $5,000,000 in fiscal year 2007, provided that such
expenses for the period from the Fourth Amendment Effective Date to December
31, 2007 shall in no event exceed $5,000,000 in the aggregate”.

(n)  Amendment
of Section 10.7.  Section 10.7 is
revised by deleting the “or” prior to sub-clause (y) of the proviso of clause
(a) of such section and replacing it with “,”, and 

 9
 

inserting at the end of such sub-clause (y) the following “or (z) so
long as no Default or Event of Default has occurred and is continuing, in the
case of the Subordinated Notes only, at any time on or after May 15, 2007 (it
being understood that any such prepayment, repurchase or redemption pursuant to
this sub-clause (z) shall be made without utilization of the Available Amount)”.

(o)  Amendment
of Section 14.1.  Section 14.1 is
revised by:

(i) deleting the words “Required Tranche F Lenders” in clause (ii) of
the proviso in the second sentence of such section and replacing them with the
words “Required Tranche G Lenders”;

(ii) deleting clause (xi) in its entirety and replace it with the
following clause: “(xi) decrease any Tranche G Repayment Amount, extend
any scheduled Tranche G Repayment Date or decrease the amount or
allocation of any mandatory prepayment to be received by any Lender holding any
Tranche G Term Loans (other than a decrease in such mandatory prepayment
amount that is accompanied by a proportionate decrease in mandatory prepayments
to be allocated to other Term Loans pursuant to Section 5.2(c)), in each
case without the written consent of the Required Tranche G Term Loan
Lenders;”; and

(iii) at the end of such section, inserting the following: “Upon any
sale or other transfer to any Person (other than the US Borrower and any
Restricted Domestic Subsidiary) by any Credit Party of any Collateral that is
permitted under the Credit Agreement, the relevant Credit Party, together with
the Administrative Agent and/or Collateral Agent, shall be permitted, without
consent of any Lender, to amend, modify or waive any provision of the Pledge
Agreement, the Security Agreement, the Foreign Security Documents or the
Mortgages, as applicable, to the extent necessary to effect release of the
security interest in such Collateral.”

(p)  Amendment
of Section 14.6.  Section 14.6 is
revised by:

(i) deleting the words “Tranche F Commitment, Tranche E Term Loan or
Tranche F Term Loan” in clause (b)(ii)(A) of such section and replacing them
with the words “Tranche G Commitment, Tranche E Term Loan or Tranche G Term
Loan”; and

(ii) deleting the words “Tranche F Term Loans” in clause (d) of such
section and replacing them with the words “Tranche G Term Loans”.

(q)  Amendment
of Exhibits to the Credit Agreement. 
The Exhibits to the Credit Agreement are revised by deleting the
contents of Exhibit R-4 to the Credit Agreement in their entirety and replacing
them with the contents of Exhibit A to this Amendment.

SECTION 2. 
Representations and Warranties. 
To induce the other parties hereto to enter into this Amendment, the
Borrowers represent and warrant to each of the Lenders (including the
Additional Tranche G Term Loan Lenders) and the Administrative Agent that, as
of the Fourth Amendment Effective Date:

(a) 
This Amendment has been duly authorized, executed and delivered by the
Borrowers and Holdings and this Amendment and the Credit Agreement, as amended
hereby, 

 10
 

constitutes each of the Borrowers’ and Holdings’ legal, valid and
binding obligation, enforceable against it in accordance with its terms except
as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights
generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity).

(b) 
The representations and warranties set forth in Section 8 of the Credit
Agreement are, after giving effect to this Amendment, true and correct in all
material respects on and as of the Fourth Amendment Effective Date, except
where such representations and warranties expressly relate to an earlier date
(in which case they were true and correct in all material respects as of such
earlier date).

(c)  No
Default or Event of Default has occurred and is continuing.

SECTION 3. 
Tranche G Term Loans.  

(a)  Subject to the terms and
conditions set forth herein, each Continuing Tranche F Term Loan Lender and
each Additional Tranche G Term Loan Lender agrees to make Tranche G Term Loans
to the US Borrower in Euro on the Fourth Amendment Effective Date in amounts
equal to its Tranche G Term Loan Commitment (as defined below).  Notwithstanding anything herein or in the
Credit Agreement to the contrary, the aggregate principal amount of the Tranche
G Term Loans shall not exceed the aggregate principal amount of the Existing
Tranche F Term Loans immediately prior to the Fourth Amendment Effective
Date.  For purposes hereof, a Person
shall become an Additional Tranche G Term Loan Lender and a party to the Credit
Agreement by executing and delivering to the Administrative Agent, on or prior
to the Fourth Amendment Effective Date, a signature page to this Amendment
specifically in the capacity of an “Additional Tranche G Term Loan Lender”
setting forth the amounts of Tranche G Term Loans such Person commits to make
on the Fourth Amendment Effective Date. 
The “Tranche G Term Loan Commitment” for any Tranche G Term Loans
of (i) any Continuing Tranche F Term Loan Lender shall be the principal amount
of its Existing Tranche F Term Loans or such lesser amount as is determined by
Credit Suisse and GSCP and notified to such Lender and (ii) any Additional
Tranche G Term Loan Lender shall be the amount of such commitment set forth on
its signature page hereto or such lesser amount as is allocated to it by Credit
Suisse and GSCP and notified to such Lender. 
The aggregate amount of Tranche G Term Loan Commitments shall equal the
aggregate principal amount of the Existing Tranche F Term Loans.

(b)  Each Continuing Tranche F
Term Loan Lender and each Additional Tranche G Term Loan Lender shall make
Tranche G Term Loans on the Fourth Amendment Effective Date by (i) exchanging
its Existing Tranche F Term Loans, if any, for Tranche G Term Loans in an equal
principal amount (to the extent the amounts of such Existing Tranche F Term
Loans, if any, do not exceed the Tranche G Term Loan Commitment of such Lender)
and (ii) transferring to the Administrative Agent, in the manner contemplated
by the Credit Agreement (including Section 2.4 thereof), an amount equal to the
excess, if any, of its Tranche G Term Loan Commitment over the principal amount
of 

 11
 

Existing
Tranche F Term Loans, if any, exchanged by it pursuant to clause (i)
above.  The US Borrower hereby
irrevocably directs the Administrative Agent pursuant to Section 5.1 of the
Credit Agreement to apply all proceeds of the Tranche G Term Loans received
hereunder immediately upon the receipt thereof to prepay outstanding Existing
Tranche F Term Loans.  The commitments of
the Additional Tranche G Term Loan Lenders and the exchange undertakings of the
Continuing Tranche F Term Loan Lenders are several and no such Lender shall be
responsible for any other Lender’s failure to make or acquire by exchange any
Tranche G Term Loans.

(c) 
The obligations of each Continuing Tranche F Term Loan Lender and each
Additional Tranche G Term Loan Lender to make Tranche G Term Loans on the
Fourth Amendment Effective Date are subject to the satisfaction of the
following conditions:

(i) The
Administrative Agent shall have received a certificate of the US Borrower and
Holdings dated the Fourth Amendment Effective Date, substantially in the form
of Exhibit P to the Credit Agreement, with appropriate insertions, executed by
the President or any Vice President and the Secretary or any Assistant
Secretary of such Credit Party, and attaching the documents referred to in
Sections 6.7 and 6.8 of the Credit Agreement and, where applicable, certifying
as to the incumbency and specimen signature of each officer executing any
Credit Document or any other document delivered in connection herewith on
behalf of such Credit Party;

(ii) The
Administrative Agent shall have received the executed legal opinions of (A)
Simpson Thacher & Bartlett LLP, special New York counsel to the Credit
Parties substantially in the form of Exhibit B-1 to this Amendment and (B) Tom
Riordan, general counsel to the Credit Parties, substantially in the form of
Exhibit B-2 to this Amendment;

(iii) Each US
Subsidiary Guarantor that has not executed and delivered this Amendment shall
have entered into a written instrument reasonably satisfactory to Credit Suisse
and GSCP pursuant to which it confirms that it consents to this Amendment and
that the Security Documents to which it is party will continue to apply in
respect of the Credit Agreement, as amended hereby, and the Obligations
thereunder;

(iv) Credit
Suisse and GSCP shall have received evidence satisfactory to them that the US
Borrower has made the payment referred to in Section 3(e) or is making such
payment on the Fourth Amendment Effective Date with the cash proceeds of the
Tranche G Term Loans and such other funds of the US Borrower as may be
required; and

(v) The
conditions to effectiveness of this Amendment set forth in Section 4 shall
have been satisfied.

(d) 
All Borrowings of Tranche G Term Loans made on the Fourth Amendment
Effective Date will have initial Interest Periods ending on the same dates as
the Interest Periods applicable at such time to the Existing Tranche F Term
Loans, and the Eurodollar Rate applicable to such Tranche G Term Loans during
such initial Interest Periods will be the same as that applicable at such time
to the Existing Tranche F Term Loans being refinanced.  The US Borrower will not be required to make
any payments to Existing Tranche F Term Loan Lenders under Section 2.11 of the
Credit Agreement in respect of the repayment of Existing Tranche F Term Loans
on the Fourth Amendment Effective Date pursuant to their exchange for Tranche G
Term Loans.

 12
 

 

(e)  On
the Fourth Amendment Effective Date, the US Borrower shall apply the cash
proceeds of the Tranche G Term Loans and such other amounts as may be necessary
to (i) prepay in full all Existing Tranche F Term Loans (other than those that
are exchanged for Tranche G Term Loans as provided herein), (ii) pay all
accrued and unpaid interest and fees, if any, on all Existing Tranche F Term
Loans, (iii) pay to each Existing Tranche F Term Loan Lender all amounts
payable pursuant to Section 2.11 of the Credit Agreement as a result of the
prepayment of such Lender’s Existing Tranche F Term Loans (other than any
portion thereof that is exchanged for Tranche G Term Loans as provided herein)
on the Fourth Amendment Effective Date and (iv) pay all other Obligations then
due and owing to the Existing Tranche F Term Loan Lenders, in their capacity as
such, under the Credit Agreement.

(f) 
The Required Lenders hereby waive the requirements of Section 5.1 of the
Credit Agreement solely to the extent that such section requires any notice of
prepayment given in respect of the Existing Tranche F Term Loans to be prepaid
on the Fourth Amendment Effective Date.

SECTION 4. 
Effectiveness of Amendment. 
The effectiveness of this Amendment and the occurrence of the Fourth
Amendment Effective Date are subject to receipt by the Administrative Agent (or
its counsel) of duly executed counterparts of this Amendment that, when taken
together, bear the signatures of (a) the Borrowers and Holdings, (b) the
Required Lenders and (c) each of the Continuing Tranche F Term Loan Lenders and
Additional Tranche G Term Loan Lenders.

SECTION 5. 
Effect of Amendment. 
Except as expressly set forth herein, this Amendment shall not by
implication or otherwise limit, impair, constitute a waiver of or otherwise
affect the rights and remedies of the Lenders, the Administrative Agent or the
Collateral Agent under the Credit Agreement or any other Credit Document, 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 provision of the Credit Agreement or of any other Credit
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 Borrowers to a further
consent to, or a further waiver, amendment, modification or other change of,
any of the terms, conditions, obligations, covenants or agreements contained in
the Credit Agreement or any other Credit Document in similar or different
circumstances. The parties hereto agree that this Amendment does not represent
or create a novation of the Credit Agreement and the other Credit Documents or
any of the Obligations and liabilities existing thereunder.

SECTION 6. 
Costs and Expenses.  The US
Borrower agrees to reimburse Credit Suisse and GSCP for their reasonable out of
pocket expenses in connection with this Amendment, including the reasonable
fees, charges and disbursements of their counsel to the extent provided for in
Section 14.5 of the Credit Agreement.

SECTION 7. 
Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument. 
Delivery of any executed counterpart of a signature 

 13
 

page of this Amendment by facsimile transmission shall be as effective
as delivery of a manually executed counterpart hereof.

SECTION 8. 
Applicable Law.  THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

SECTION 9. 
Headings.  The headings of
this Amendment are for purposes of reference only and shall not limit or
otherwise affect the meaning hereof.

 14
 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed by their respective officers as of the day
and year first above written.

	
  

  	
   

  	
  ROCKWOOD SPECIALTIES GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ SEIFI GHASEMI

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Seifi Ghasemi

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   Chief
  Executive Officer

  

 

 

	
  

  	
   

  	
  ROCKWOOD SPECIALTIES LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ THOMAS J. RIORDAN

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  Thomas
  J. Riordan

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
              Law
  & Administration

  

 

 

	
  

  	
   

  	
  ROCKWOOD SPECIALTIES INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ ROBERT J. ZATTA

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  Robert
  J. Zatta

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
              Chief
  Financial Officer

  

 

 15

SIGNATURE PAGE TO

FOURTH AMENDMENT

DATED AS OF MARCH 23, 2007,

TO THE CREDIT AGREEMENT

DATED AS OF JULY 30, 2004, AS AMENDED

AS OF OCTOBER 8, 2004, DECEMBER 10, 2004

AND DECEMBER 13, 2005

 

 

	
  To approve this Amendment as a Lender and a Continuing Tranche F Term
  Loan Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Institution:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT SUISSE, acting through its Cayman Island
  Branch

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  by

  	
  /s/ James Moran

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James Moran

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  by

  	
  /s/ Nupur Kumar

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Nupur Kumar

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Associate

  	
   

  	
   

  
						

 

EXHIBIT A

TO THE FOURTH AMENDMENT TO THE CREDIT AGREEMENT

EXHIBIT R- 4

TO THE CREDIT AGREEMENT

FORM OF PROMISSORY NOTE (TRANCHE G TERM LOANS)

	
  $

  	
   

  	
   

  	
  New York

  [           ], 20[  ]

  

 

FOR VALUE RECEIVED, the undersigned, ROCKWOOD SPECIALTIES
GROUP, INC., a  Delaware corporation (the
“US Borrower”), hereby unconditionally promises to pay to the order of
[Lender] or its registered assigns (the “Lender”), at the Administrative
Agent’s Office or such other place as Credit Suisse (formerly known as Credit
Suisse First Boston, acting through its Cayman Islands Branch (the “Administrative
Agent”), shall have specified, in Euro and in immediately available
funds, in accordance with Section 2.5 of the Credit Agreement (as defined
below) on the Tranche G Term Loan Maturity Date (capitalized terms used and not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement), the principal amount of [           ] Euro (€ [        ]) or, if less, the aggregate unpaid
principal amount of all Tranche G Term Loans, if any, made by the Lender to the
US Borrower pursuant to the Credit Agreement. 
The US Borrower further unconditionally promises to pay interest in like
money at such office on the unpaid principal amount hereof from time to time
outstanding at the rates per annum and on the dates specified in Section 2.8 of
the Credit Agreement.

This Promissory Note is one of the promissory notes
referred to in Section 14.6 of the Credit Agreement dated as of July 30, 2004
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the US Borrower, Rockwood Specialties Limited (the “UK
Borrower”), Rockwood Specialties International, Inc., the several lenders
from time to time parties thereto, the Administrative Agent and UBS Securities
LLC and Goldman Sachs Credit Partners L.P., as Co-Syndication Agents.  This Promissory Note is subject to, and the
Lender is entitled to the benefits of, the provisions of the Credit Agreement,
and the Tranche G Term Loans evidenced hereby are guaranteed and secured as
provided therein and in the other Credit Documents.  The Tranche G Term Loans evidenced hereby are
subject to prepayment prior to the Tranche G Term Loan Maturity Date, in whole
or in part, as provided in the Credit Agreement.

All parties now and hereafter liable with respect to
this Promissory Note, whether maker, principal, surety, guarantor, endorser or
otherwise, hereby waive diligence, presentment, demand, protest and notice of
any kind whatsoever in connection with this Promissory Note.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or the Lender, any right,
remedy, power or privilege 

 

hereunder or under the
Credit Documents shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder or
thereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. 
A waiver by the Administrative Agent or the Lender of any right, remedy,
power or privilege hereunder or under any Credit Document on any one occasion
shall not be construed as a bar to any right or remedy that the Administrative
Agent or the Lender would otherwise have on any future occasion.  The rights, remedies, powers and privileges
herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any rights, remedies, powers and privileges provided by law.

All payments in respect of the principal of and
interest on this Promissory Note shall be made to the Person recorded in the
Register as the holder of this Promissory Note, as described more fully in
Section 14.6(b) of the Credit Agreement, and such Person shall be treated
as the Lender hereunder for all purposes of the Credit Agreement.

THIS PROMISSORY NOTE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

	
  

  	
  ROCKWOOD SPECIALTIES GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

Schedule A

to Fourth Amendment

Tranche G
Term Loan Commitments

	
  Continuing Tranche F Term Loan Lenders:

  	
   

  	
   

  
	
  See list attached hereto

  	
   

  	
  € 269,314,259.17

  
	
   

  	
   

  	
   

  
	
  Additional Tranche G Term Loan Lenders:

  	
   

  	
  €0

  

 

 

CONTINUING
TRANCHE F TERM LOAN LENDERS

HAMLET I LEVERAGED LOAN
FD BV

JUBILEE CDO III BV

JUBILEE CDO IV B.V.

JUBILEE CDO V BV

WOOD STREET CLO I BV

WOOD STREET CLO II BV

WOODSTREET CLO IV BV

CONCERTO I BV

NASH POINT CLO

SANKATY ADV LLC AC ALIE
ST INV

SANKATY HY PARTNERS II

SANKATY HY PARTNERS III
LP

JUBILEE CDO II BV

SPIRET IV LOAN TRUST
2003-B

GREEN PARK CDO BV

CELF LOAN PARTNERS BV

CIC - CREDIT INDUSTRIEL
ET COM

COMMERZBANK AG

DRESDNER BANK AG

EATON VANCE CDO VII PLC

EATON VANCE SHORT
DURATION DIV

SCOTIABANK (IRELAND)
LIMITED

AUGUSTA TRADING LLC

COPERNICUS EURO CDO-1 BV

EUROCREDIT CDO I BV

EUROCREDIT CDO III

EUROCREDIT CDO VII

EUROCREDIT OPPORTUNITIES
I PLC

EUROCREDIT V PLC

ALZETTE EUROPEAN CLO S A

MOSELLE CLO SA

 

PETRUSSE EUROPEAN CLO SA

WATERFALL EUROPEAN CLO SA

REGENTS PARK CDO BV

NATEXIS

OHSF FINANCING, LTD

OHSF II FINANCING, LTD

CLARENVILLE CDO SA

INTERCONTINENTAL CDO SA

DRYDEN X - EURO CLO 2005
PLC

DRYDEN XIV - EURO CLO
2006 PLC

LEOPARD CLO III BV

DRYDEN IX SENIOR LOAN

LEOPARD CLO I B.V.

COOPERATIVE CENTRALE
RAIFFEISE

RMF EURO CDO II

RMF EURO CDO S.A

COOKSMILL

ECF MAPLE LEAF

SEB AG

KAUPTHING SINGER N
FRIEDLANDER

UBS AG

AZURE FUNDING EUROPE SA

CAIRN CLO 1 BV

GROSVENOR PLACE CLO I BV

HARBOURMASTER CLO 6 BV

HARBOURMASTER CLO 8 BV

HIGHLANDER EURO CDO III B
V

OAK HILL EUR CREDIT PTRS
I PLC

WOOD STREET CLO III

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]