Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

AMENDMENT NO. 3 AND WAIVER TO

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 5, 2004

     AMENDMENT NO. 3 AND WAIVER TO AMENDED AND RESTATED CREDIT AGREEMENT among
POLYONE CORPORATION, an Ohio corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders parties to the Amended and
Restated Credit Agreement referred to below (collectively, the “Lenders”) and
CITICORP USA, INC., as administrative agent (the “Agent”) for the Lenders.

PRELIMINARY STATEMENTS:

     (1) The Borrower, the Lenders and the Agent have entered into an Amended
and Restated Credit Agreement dated as of May 6, 2003, as amended by Amendment
No. 1 dated as of August 27, 2003 and Amendment No. 2 dated as of September 25,
2003 (such Agreement, as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; terms defined in
the Credit Agreement are used herein as therein defined).

     (2) The Borrower has requested, and the Required Lenders have agreed, that
certain provisions of the Credit Agreement be amended and waived as hereinafter
set forth.

     SECTION 1. Waiver to the Credit Agreement. Effective as of the date
hereof, the Required Lenders hereby agree to waive, solely with respect to the
DeForest Equipment Sale (as defined below), the requirement of Section
5.02(d)(z) of the Credit Agreement that, upon consummation of any sale
permitted under Section 5.02(d)(iv), 75% of the proceeds of such sale are
payable in cash to the seller. As used herein, “Deforest Equipment Sale” means
the sale by the Borrower to Johnsonite Rubber of a used mixer with drop mill,
take off mill, bale cutter, bale hoist and charge/weigh belts owned by the
Borrower and located at the Borrower’s DeForest Facility in Wisconsin.

     SECTION 2. Amendment to the Credit Agreement. The Credit Agreement is,
effective as of the date hereof and subject to the satisfaction of the
conditions precedent set forth in Section 3 of this Amendment and Waiver,
hereby amended as follows:

     (a) Section 1.01 is amended by inserting the following new definitions
therein in the appropriate alphabetical order:

     “Elastomers Sale” means the sale or other disposition of all or
substantially all of the Borrower’s assets that constitute the Borrower’s
Elastomers and Performance Additives business unit.

     “Geon Debenutres” means the 6.875% Debentures with an aggregate principal
amount of $75,000,000 due December 15, 2005, issued by The Geon Company.

 

 

     “M.A. Hanna Notes” means, collectively, the following:

(i) the 7.070% Medium Term Notes with an aggregate principal amount of
$20,000,000 due June 26, 2006, issued by M.A. Hanna Company;

(ii) the 6.740% Medium Term Notes with an aggregate principal amount
$20,000,000 due September 22, 2005, issued by M.A. Hanna Company; and

(iii) the 6.875% Medium Term Notes with an aggregate principal amount of
$20,000,000 due December 1, 2004, issued by M.A. Hanna Company.

     “Senior Notes” means the 10.625% Senior Notes with an aggregate principal
amount of $300,000,000 due May 6, 2010, issued by the Borrower.

     “2012 Notes” means the 8.875% Senior Notes with an aggregate principal
amount of $200,000,000 due May 1, 2012, issued by the Borrower.

     (b) Section 5.02(j) is hereby amended by deleting “and” at the end of
clause (vi) thereof, renumbering clause (vii) thereof as clause (viii), and
inserting a new clause (vii) immediately before the new clause (viii) to read
in its entirety as follows:

     “(vii) to the extent that the Borrower (a) consummates the Elastomers
Sale, the Borrower may apply the net cash proceeds (as such amount shall be
certified to the Agent by a duly authorized officer of the Borrower) received
by the Borrower in connection therewith to prepay, redeem or otherwise
repurchase, at the Borrower’s election, the Geon Debentures and/or the M.A.
Hanna Notes, in an aggregate principal amount of such debt not to exceed
$80,000,000 collectively or (b) sells or otherwise disposes of any assets
(other than in connection with the Elastomers Sale) in accordance with the
requirements of Section 5.02(d) (as certified to the Agent by a duly authorized
officer of the Borrower), the Borrower may apply up to 70% of the net cash
proceeds received by the Borrower in connection with any such sale or other
disposition (as such amount shall be certified to the Agent by a duly
authorized officer of the Borrower) to prepay, redeem or otherwise repurchase,
at the election of the Borrower, any Geon Debentures and/or M.A. Hanna Notes
outstanding after giving effect to the prepayment, redemption or repurchase
contemplated by the preceding clause (a), the Senior Notes and/or the 2012
Notes; provided that, in the case of each of the foregoing clauses (a) and (b),
both before and after giving effect to any such prepayment, redemption or
repurchase, (x) each of the representations and warranties contained in Article
IV of this Agreement, the other Loan Documents or in any certificate, document
or financial or other statement furnished at any time under or in connection
therewith is true and correct in all material respects as if made on and as of
such date and except to the extent that such representations and warranties
specifically relate to a specific date, in which case such representations and
warranties shall be true and correct in all material respects as of such
specific date and (y) no Default or Event of Default shall have occurred and be
continuing on and as of such date, and”

     (c) Schedule 5.02(d) is hereby amended by deleting the phrase “Section
5.02(b)” in the first sentence therein and replacing it with phrase “Section
5.02(d)”.

2

 

     SECTION 3. Conditions to Effectiveness. This Amendment and Waiver shall
become effective as of the date first above written when, and only when the
Agent shall have received (i) counterparts of this Amendment and Waiver
executed by the Borrower and the Required Lenders, (ii) notice from the
Borrower pursuant to Section 2.05 of the Credit Agreement reducing the
aggregate commitments to $30,000,000, (iii) projections by the Borrower in form
and substance satisfactory to the Required Lenders, (iv) notice from the
Borrower confirming the Elastomers Sale and (v) payment of an amendment fee for
the ratable benefit of the Lenders equal to 0.10% of the aggregate Commitments
after giving effect to the reduction of Commitments referred to in clause (ii)
above. Notwithstanding the foregoing, Section 1 of this Amendment and Waiver
shall become effective upon the Agent’s receipt of counterparts of this
Amendment and Waiver executed by the Borrower and the Required Lenders. This
Amendment and Waiver is subject to the provisions of Section 8.01 of the Credit
Agreement.

     SECTION 4. Representations and Warranties of the Company. The Company
represents and warrants as follows:

     (a) The execution, delivery and performance by the Borrower of this
Amendment and Waiver and the Credit Agreement, as amended hereby, and the
consummation of the transactions contemplated hereby, are within the Borrower’s
corporate powers, have been duly authorized by all necessary corporate action,
and do not (i) contravene the Borrower’s charter or code of regulations, (ii)
violate any applicable law, rule, regulation, order, writ judgment, injunction,
decree, determination or award, or (iii) breach or result in a default under,
or result in the acceleration of (or entitle any party to accelerate) the
maturity of any obligation of the Borrower under, or result in or require the
creation of any Lien upon any property of the Borrower pursuant to the terms of
any agreement or instrument binding on or affecting the Borrower or any of its
properties other than in favor of the Collateral Trustee for the benefit of the
Secured Parties.

     (b) No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body or any other third
party is required for the due execution, delivery and performance by the
Borrower of this Amendment and Waiver and the Credit Agreement, as amended
hereby.

     (c) This Amendment and Waiver and the Credit Agreement, as amended hereby,
have been duly executed and delivered by the Borrower. This Amendment and
Waiver and the Credit Agreement, as amended hereby, are the legal, valid and
binding obligation of the Borrower enforceable against the Borrower in
accordance with their respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights of creditors
generally and to general equitable principles.

     (d) The representations and warranties contained in the Loan Documents are
correct on and as of the date of this Amendment and Waiver, as though made on
and as of such date.

3

 

     SECTION 5. Reference to and Effect on the Credit Agreement.

     (a) On and after the effectiveness of this Amendment and Waiver, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or
words of like import referring to the Credit Agreement, and each reference in
each of the other Loan Documents to “the Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement, as amended by this Amendment and
Waiver.

     (b) The Credit Agreement and each of the other Loan Documents, as
specifically amended by this Amendment and Waiver, is and shall continue to be
in full force and effect and is hereby in all respects ratified and confirmed.
Without limiting the generality of the foregoing, the Collateral Documents and
the Collateral described therein do and shall continue to secure the payment of
all Obligations of the Loan Parties under the Loan Documents, in each case as
amended by this Amendment.

     (c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Agent under the Credit Agreement or any other Loan
Document, nor constitute a waiver of any provision of the Credit Agreement.

     SECTION 6. Costs and Expenses. The Borrower agrees to pay on demand all
costs and expenses of the Agent in connection with the preparation, execution,
delivery and administration, modification and amendment of this Amendment and
Waiver and the other instruments and documents to be delivered hereunder
(including, without limitation, title insurance premiums and search fees and
the reasonable fees and expenses of counsel for the Agent) in accordance with
the terms of Section 8.04 of the Credit Agreement

     SECTION 7. Execution in Counterparts. This Amendment and Waiver may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment and Waiver by telecopier shall be effective as delivery of a manually
executed counterpart of this Amendment and Waiver.

     SECTION 8. Governing Law. This Amendment and Waiver shall be governed by,
and construed in accordance with, the laws of the State of New York.

4

 

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

	 	 	 	 	 	 	 
	 	 	POLYONE CORPORATION
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	CITICORP USA, INC.,

as Agent and as Lender
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK,

as Issuing Bank and as Lender
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC.,

as Lender
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as Lender
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Title:exv10w2

 

EXHIBIT 10.2

Amendment No. 2

          Amendment No. 2 dated as of August 5, 2004 (this “Amendment”), to the
Receivables Purchase Agreement, dated as of May 6, 2003 (as amended by that
certain Amendment No. 1 dated as of September 25, 2003 and as otherwise
amended, supplemented or modified to the date hereof, the “Receivables Purchase
Agreement”), among Polyone Funding Corporation, a Delaware corporation (the
“Seller”), Polyone Corporation, an Ohio corporation (“PolyOne”), as the
Servicer (as therein defined), the Purchasers (as therein defined), Citicorp
USA, Inc., a Delaware corporation, as administrative agent (in such capacity,
the “Agent”) for the Purchasers and the other Owners (as therein defined),
Citibank, N.A., a national association, as issuing bank (the “Issuing Bank”),
and National City Business Credit, Inc., an Ohio corporation, as the
syndication agent. Capitalized terms used herein but not defined herein are
used as defined in the Receivables Purchase Agreement.

W i t n e s s e t h:

          Whereas, the Seller, the Servicer, the Purchasers, the Issuing Bank and
the Agent are party to the Receivables Purchase Agreement and the undersigned
Purchasers constitute the Required Purchasers;

          Whereas, the Seller has requested that the Agent and the Purchasers
constituting the Required Purchasers permit the Servicer to prepay, redeem or
otherwise repurchase certain indebtedness with the net cash proceeds received
by the Servicer from the sale or other disposition of certain assets of the
Servicer, as more fully described in this Amendment;

          Whereas, the Seller has requested that the Agent and the Purchasers
constituting the Required Purchasers permit the Servicer to prepay, redeem or
otherwise repurchase certain of its outstanding Debt with up to 70% of the net
cash proceeds received by the Servicer from certain other permitted asset sales
under the Receivables Purchase Agreement;

          Whereas, the Seller has advised the Agent that it desires to reduce the
aggregate amount of the Commitments available under the Receivables Purchase
Agreement;

          Whereas, the Seller has requested that the Agent and each of the
Purchasers agree to amend the Receivables Purchase Agreement to reduce (w) the
aggregate amount of the Commitments under the Facility, (x) the Applicable
Margin, (y) the Applicable L/C Margin and (z) the Unused Commitment Fee Rate;
and

          Whereas, pursuant to Section 11.01 (Amendments, Etc.) of the Receivables
Purchase Agreement, the consent of the Required Purchasers is required to amend
the provisions of the Receivables Purchase Agreement as set forth herein;
provided, that the Pricing Amendments (as defined below) require the consent of
each Purchaser holding a Commitment;

          Now, Therefore, in consideration of the premises and the covenants and
obligations contained herein the parties hereto agree as follows:

 

 

     Section 1. Certain Amendments to Receivables Purchase Agreement.
Effective as of the Amendment Effective Date (as defined below), and subject
the satisfaction (or due waiver) of the conditions set forth in Section 3
(Conditions Precedent to Effectiveness of this Amendment) hereof, the
Receivables Purchase Agreement is hereby amended as follows:

          (a) Section 1.01 of the Receivables Purchase Agreement is hereby amended
by amending and restating the definition of “Commitment” to read in its
entirety as follows:

          “Commitment” means (i) from and after the Closing Date and prior to the
Second Amendment Effective Date, (x) in respect of each Initial Purchaser, the
commitment of such Purchaser to make Purchases and acquire other Capital
Investments in the aggregate principal amount set forth as the “Commitment”
under the name of such Initial Purchaser on the signature pages hereto and (y)
in respect of each other Purchaser that became a Purchaser by entering into an
Assignment and Acceptance, the amount set forth as the “Commitment” for such
Purchaser in the Register maintained by the Agent pursuant to Section 9.01(c);
and (ii) from and after the Second Amendment Effective Date, (x) in respect of
each Purchaser party to this Agreement on the Second Amendment Effective Date
after giving effect to the Second Amendment, the commitment of such Purchaser
to make Purchases and acquire other Capital Investments in the aggregate
principal amount set forth as the “Commitment” of such Purchaser on Schedule I
to the Second Amendment and (y) in respect of each other Purchaser that became
a Purchaser by entering into an Assignment and Acceptance from and after the
Second Amendment Effective Date, the amount set forth as the “Commitment” for
such Purchaser in the Register maintained by the Agent pursuant to Section
9.01(c); in the case of clauses (i) and (ii), as each such amount may be
reduced from time to time as the result of any assignment of any Commitment or
any portion thereof pursuant to Section 9.01 or as such amount may be reduced
from time to time pursuant to Section 2.05.

          (b) Section 1.01 of the Receivables Purchase Agreement is hereby amended
by inserting the following definitions in such Section 1.01 in the appropriate
place to preserve the alphabetical order of the definitions in such Section
1.01:

          “Elastomers Sale” means the sale or other disposition, in a single
transaction or series of related transactions (including the sale or other
disposition of the Servicer’s assets located at its DeForest, Wisconsin
facility), of all or substantially all of the Servicer’s assets which
constitute the Servicer’s elastomers business unit.

          “Geon Notes” means the 6.875% Medium Term Notes with an aggregate
principal amount of $75,000,000 due December 15, 2005, issued by Geon Company.

          “MA Hanna Notes” means, collectively, the following:

          (i) the 7.070% Medium Term Notes due June 26, 2006, issued by MA Hanna
Company;

          (ii) the 6.740% Medium Term Notes due September 22, 2005, issued by MA
Hanna Company; and

          (iii) the 6.875% Debentures due December 1, 2004 issued by MA Hanna
Company.

          “Second Amendment” means that certain Amendment No. 2 to this Agreement,
dated as of August 5, 2004, among the Seller, the Servicer, the Agent, each of
the Purchasers, the Issuing Bank and the Syndication Agent.

2

 

          “Second Amendment Effective Date” means August 5, 2004.

          “2012 Notes” means the 8.875% Senior Notes due May 1, 2012, issued by the
Servicer.

          (c) Clause (ii) of the definition of “Scheduled Other Debt Payment” in
Section 1.01 of the Receivables Purchase Agreement is hereby amended by
replacing each reference therein to “December 22, 2005” with a reference to
“September 22, 2005”.

          (d) Section 5.03(a) of the Receivables Purchase Agreement is hereby
amended by replacing the phrase “Except as otherwise provided herein,” with the
phrase “Except as required to consummate the Elastomers Sale or as otherwise
provided herein,”.

          (e) Section 5.03(k) of the Receivables Purchase Agreement is hereby
amended and restated in its entirety to read as follows:

          “(k) Sales, Etc., of Assets.

          Except as required to consummate the Elastomers Sale or as otherwise
contemplated by this Agreement, sell, lease, transfer or otherwise dispose of
any assets.”

          (f) Section 5.06(f) of the Receivables Purchase Agreement is hereby
amended and restated in its entirety to read as follows:

          “(f) Asset Sales. Sell, convey, transfer, lease or otherwise dispose of,
any of its assets or any interest therein (including the sale or factoring at
maturity or collection of any accounts), whether in a single transaction, or a
series of related transactions, to any Person, or permit or suffer any other
Person to acquire any interest in any of its assets (other than the sale or
disposition of inventory in the ordinary course of business) unless (i) no
Potential Event of Termination or Event of Termination is continuing or would
result therefrom, (ii) such sale or other transfer is for Fair Market Value,
(iii) 75% of the proceeds of such sale or transfer (or such series of related
sales or transfers) are payable in cash to the Servicer upon the consummation
of each such sale or transfer, and (iv) if the Fair Market Value of such asset
is in excess of $25,000,000, the Board of Directors of the Servicer has
approved such sale.”

          (g) Section 5.08(c) of the Receivables Purchase Agreement is hereby
amended by deleting the “and” at the end of clause (vi) thereof, renumbering
clause (vii) thereof as clause (viii) and inserting a new clause (vii)
immediately before new clause (viii) to read in its entirety as follows:

          “(vii) to the extent that the Servicer (a) consummates the Elastomers
Sale, the Servicer may apply the net cash proceeds (as such amount shall be
certified to the Agent by a Responsible Officer of the Servicer) received by
the Servicer in connection therewith to prepay, redeem or otherwise repurchase,
at the Servicer’s election, the Geon Notes and/or the MA Hanna Notes, in an
aggregate principal amount of such Debt not to exceed $80,000,000 collectively
or (b) sells or otherwise disposes of any assets (other than in connection with
the Elastomers Sale) in accordance with the requirements of Section 5.06(f) (as
certified to the Agent by a Responsible Officer of the Servicer), the Servicer
may apply up to 70% of the net cash proceeds received by the Servicer in
connection with any such sale or other disposition (as such amount shall be
certified to the Agent by a Responsible Officer of the Servicer) to prepay,
redeem or otherwise repurchase, at the election of the Servicer, any Geon Notes
and/or MA Hanna Notes outstanding after giving effect to the prepayment,
redemption or repurchase contemplated by the preceding clause (a), the Senior
Notes and/or the 2012 Notes; provided, that, in the case of each of

3

 

the foregoing clauses (a) and (b), both before and after giving effect to any
such prepayment, redemption or repurchase, (x) each of the representations and
warranties contained in Article IV (Representations and Warranties) of the
Receivables Purchase Agreement, the other Transaction Documents or in any
certificate, document or financial or other statement furnished at any time
under or in connection therewith is true and correct in all material respects
as if made on and as of such date and except to the extent that such
representations and warranties specifically relate to a specific date, in which
case such representations and warranties shall be true and correct in all
material respects as of such specific date and (y) no Potential Event of
Termination or Event of Termination shall have occurred and be continuing on
and as of such date, and”.

     Section 2. Pricing Amendments to Receivables Purchase Agreement. Section
1.01 of the Receivables Purchase Agreement is, effective as of the Reduction
Effective Date (as defined below) and subject the satisfaction (or due waiver)
of the conditions set forth in Section 4 (Conditions Precedent to Effectiveness
of Pricing Amendments) hereof, hereby amended by deleting the defined terms
“Applicable L/C Margin”, “Applicable Margin” and “Unused Commitment Fee Rate”
in their respective entireties and inserting in lieu thereof, in proper
alphabetical order, the following:

          “Applicable L/C Margin” means, as of any date of determination, a per
annum rate equal to the rate set forth below opposite the then applicable
Average Monthly Excess Availability (determined on the last day of the most
recently concluded calendar month):

	 	 	 	 	 
	Average Monthly Excess Availability
	 	Applicable L/C Margin

	Greater than $120,000,000
	 	 	1.75	%
	Less than or equal to $120,000,000 and greater than $60,000,000
	 	 	2.00	%
	Less than or equal to $60,000,000
	 	 	2.25	%

provided, however, that upon the occurrence and during the continuance of an
Event of Termination, the “Applicable L/C Margin” shall be the sum of the
highest rate set forth in the table above plus 2.00% per annum. Changes in the
Applicable L/C Margin resulting from a change in the Average Monthly Excess
Availability for any month shall become effective as to all Issuances on the
first day of the next consecutive calendar month.

          “Applicable Margin” means, as of any date of determination, a per annum
rate equal to the rate set forth below opposite the then applicable Average
Monthly Excess Availability (determined on the last day of the most recently
concluded calendar month):

	 	 	 	 	 	 	 	 	 
	Average Monthly Excess Availability
	 	Alternate Base Rate
	 	Adjusted LIBO Rate

	Greater than $120,000,000
	 	 	1.00	%	 	 	2.00	%
	Less than or equal to $120,000,000
and greater than $60,000,000
	 	 	1.25	%	 	 	2.25	%
	Less than or equal to $60,000,000
	 	 	1.50	%	 	 	2.50	%

provided, however, that upon the occurrence and during the continuance of an
Event of Termination, the “Applicable Margin” shall be the sum of the highest
rate set forth in the table above (as may be converted

4

 

pursuant to Section 2.16) plus 2.00% per annum. Changes in the Applicable
Margin resulting from a change in the Average Monthly Excess Availability for
any month shall become effective as to all Capital Investments on the first day
of the next consecutive calendar month.

          “Unused Commitment Fee Rate” means, as of any date of determination, a per
annum rate equal to the rate set forth below opposite the then applicable
Average Monthly Excess Availability (determined on the last day of the most
recently concluded calendar month for which financial statements have been
delivered):

	 	 	 	 	 
	Average Monthly Excess Availability
	 	Unused Commitment Fee Rate

	Greater than $120,000,000
	 	 	0.625	%
	Less than or equal to $120,000,000 and
greater than $60,000,000
	 	 	0.500	%
	Less than or equal to $60,000,000
	 	 	0.375	%

provided, however, that upon the occurrence and during the continuance of an
Event of Termination, the “Unused Commitment Fee Rate” shall be the highest
rate set forth in the table above. Changes in the Unused Commitment Fee Rate
resulting from a change in the Average Monthly Excess Availability for any
month shall become effective on the first day of the next consecutive calendar
month.

     Section 3. Conditions Precedent to the Effectiveness of this Amendment.
Subject to Section 4 (Conditions Precedent to Effectiveness of Pricing
Amendments) hereof with respect to the Pricing Amendments (as defined below),
this Amendment shall become effective as of the date first written above when,
and only when, each of the following conditions precedent shall have been
satisfied (the “Amendment Effective Date”) or duly waived by the Agent:

          (a) Certain Documents.

          The Agent shall have received each of the following, each dated the
Amendment Effective Date (unless otherwise agreed by the Agent), in form and
substance satisfactory to the Agent and in sufficient copies for each
Purchaser:

               (i) this Amendment, duly executed by the Seller, the Servicer, the
Agent and Purchasers constituting Required Purchasers;

               (ii) a notice from the Seller, at least five (5) Business Days prior
to the date of this Amendment and otherwise in form and substance
satisfactory to the Agent, in accordance with the terms and conditions of
Section 2.05 (Termination or Reduction of the Commitments) of the
Receivables Purchase Agreement, pursuant to which the Seller shall have
elected to permanently reduce the Commitments by an amount equal to
$50,000,000 such that the aggregate amount of Commitments outstanding
under the Receivables Purchase Agreement shall equal $175,000,000; and

               (iii) such customary additional documentation as the Agent may
reasonably require.

          (b) Fees and Expenses Paid.

          The Seller shall have paid to the Agent:

5

 

               (i) on behalf of each Purchaser approving this Amendment on or prior
to 5:00 pm on July 27, 2004, an amendment fee equal to one-tenth of one
percent (0.10%) of the aggregate amount of the Commitments (after giving
effect to this Amendment) of each consenting Purchaser and each other fee
payable in connection with this Amendment; and

               (ii) all other obligations of the Seller due under the Transaction
Documents, after giving effect to this Amendment, on or before the later
of the date hereof and the Amendment Effective Date and all costs and
expenses of the Agent in connection with the preparation, reproduction,
execution and delivery of this Amendment and all other Transaction
Documents entered into in connection herewith (other than the reasonable
fees and out-of-pocket expenses of counsel for the Agent in connection
with this Amendment and the other Transaction Documents, in respect of
which fees and out-of-pocket expenses the Agent shall present an invoice
to the Seller and the Seller shall pay promptly (and in any event within
five Business Days) after the Amendment Effective Date) and all other
costs, expenses and fees due under any Transaction Document.

     Section 4. Conditions Precedent to Effectiveness of Pricing Amendments.
The amendments set forth in Section 2 (Pricing Amendments to Receivables
Purchase Agreement) (the “Pricing Amendments”) shall become effective when, and
only when, the Amendment Effective Date shall have occurred and the Agent shall
have received this Amendment, duly executed by the Seller, the Servicer, the
Agent and each Purchaser, in form and substance satisfactory to the Agent and
in sufficient copies for each Purchaser (the “Reduction Effective Date”).

     Section 5. Commitments. On and as of the Amendment Effective Date, the
Commitments of each Purchaser shall be the aggregate principal amount set forth
as the “Commitment” of such Purchaser on Schedule I to this Amendment.

     Section 6. Representations and Warranties

          On and as of the date hereof and as of each of the Amendment Effective
Date and the Reduction Effective Date, after giving effect to this Amendment,
each of the Seller (as to itself) and the Servicer (as to itself) hereby
represents and warrants to the Agent and each Purchaser as follows:

          (a) this Amendment has been duly authorized, executed and delivered by the
Seller and the Servicer and constitutes a legal, valid and binding obligation
of the Seller and the Servicer, enforceable against the Seller and the Servicer
in accordance with its terms and the Receivables Purchase Agreement as amended
by this Amendment and constitutes the legal, valid and binding obligation of
the Seller and the Servicer, enforceable against the Seller and the Servicer in
accordance with its terms;

          (b) each of the representations and warranties made by the Seller or the
Servicer, as the case may be, contained in Article IV (Representations and
Warranties) of the Receivables Purchase Agreement, the other Transaction
Documents or in any certificate, document or financial or other statement
furnished at any time under or in connection therewith by or on behalf of such
Person is true and correct in all material respects on and as of the date
hereof, the Amendment Effective Date and the Reduction Effective Date, in each
case as if made on and as of such date and except to the extent that such
representations and warranties specifically relate to a specific date, in which
case such representations and warranties shall be true and correct in all
material respects as of such specific date; provided, however, that references
therein to the “Receivables Purchase Agreement” shall be deemed to refer to the
Receivables Purchase Agreement as amended hereby and after giving effect to the
consents and other modifications set forth herein;

6

 

          (c) after giving effect to this Amendment, no Potential Event of
Termination or Event of Termination (except for those that may have been duly
waived) shall have occurred and be continuing, either on the date hereof or on
the Amendment Effective Date; and

          (d) no litigation has been commenced against the Seller, the Servicer, or
any Originator or any of their respective Subsidiaries seeking to restrain or
enjoin (whether temporarily, preliminarily or permanently) the performance of
any action by the Seller, the Servicer, or an Originator required or
contemplated by this Amendment, the Receivables Purchase Agreement or any
Transaction Document, in each case as amended or otherwise modified hereby (if
applicable).

     Section 7. Costs and Expenses

          The Seller hereby agrees to pay upon receipt of a written invoice therefor
in accordance with the terms of Section 11.04 (Costs and Expenses) of the
Receivables Purchase Agreement all costs and expenses of the Agent in
connection with the preparation, reproduction, execution and delivery of this
Amendment and all other Transaction Documents entered into in connection
herewith (including, without limitation, the reasonable fees and out-of-pocked
expenses of counsel for the Agent with respect thereto and all other
Transaction Documents).

     Section 8. Matters Relating to Certain Receivables

          In connection with the sale or other disposition, in a single transaction
or series of related transactions (including the sale or other disposition of
the Servicer’s assets located at its DeForest, Wisconsin facility), of all or
substantially all of the Servicer’s assets which constitute the Servicer’s
elastomers business unit (the “Elastomers Sale”), each of the Purchasers hereby
(i) directs the Agent to assign and reconvey to Seller on behalf of the
Purchasers all of the right, title and interest of the Purchasers in the
Receivables Interests outstanding under the Receivables Purchase Agreement as
of the date of the consummation of the Elastomers Sale which arise from the
Receivables being sold in connection with the Elastomers Sale (such
Receivables, the “Elastomers Receivables”) and (ii) to take any other actions
and do such other things as are necessary to effectuate the provisions of this
Section 8.

     Section 9. Amendment to Receivables Sale Agreement

          Each of the Purchasers hereby (i) consents to the amendment of the
Receivables Sale Agreement to permit the Elastomers Sale and otherwise on
substantially the same terms and conditions as the amendments contained in
Section 1 (Certain Amendments to Receivables Purchase Agreement) of this
Amendment and (ii) directs the Agent to enter into such amendment on behalf of
the Purchasers.

     Section 10. Reference to the Effect on the Transaction Documents

          (a) As of the Amendment Effective Date and the Reduction Effective Date,
each reference in the Receivables Purchase Agreement to “this Agreement,”
“hereunder,” “hereof,” “herein,” or words of like import, and each reference in
the other Transaction Documents to the Receivables Purchase Agreement
(including, without limitation, by means of words like “thereunder,” “thereof”
and words of like import), shall mean and be a reference to the Receivables
Purchase Agreement as amended or otherwise modified hereby, and this Amendment
and the Receivables Purchase Agreement shall be read together and construed as
a single instrument. Each of the table of contents and lists of Exhibits and
Schedules of the Receivables Purchase Agreement shall be amended to reflect the
changes made in this Amendment as of the Amendment Effective Date.

          (b) Except as expressly amended hereby or specifically waived above, all
of the terms and provisions of the Receivables Purchase Agreement and all other
Transaction Documents are and shall remain in full force and effect and are
hereby ratified and confirmed.

7

 

          (c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of the Purchasers, Issuing Bank or the Agent under any of the
Transaction Documents, nor constitute a waiver or amendment of any other
provision of any of the Transaction Documents or for any purpose except as
expressly set forth herein.

          (d) This Amendment is a Transaction Document.

     Section 11. Execution in Counterparts

          This Amendment may be executed in any number of counterparts and by
different parties in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Signature pages may be detached from
multiple separate counterparts and attached to a single counterpart so that all
signature pages are attached to the same document. Delivery of an executed
counterpart by telecopy shall be effective as delivery of a manually executed
counterpart of this Amendment.

     Section 12. Governing Law

          This Amendment shall be governed by and construed in accordance with the
law of the State of New York.

     Section 13. Section Titles

          The section titles contained in this Amendment are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the
agreement between the parties hereto, except when used to reference a section.

     Section 14. Notices

          All communications and notices hereunder shall be given as provided in the
Transaction Documents.

     Section 15. Severability

          The fact that any term or provision of this Agreement is held invalid,
illegal or unenforceable as to any person in any situation in any jurisdiction
shall not affect the validity, enforceability or legality of the remaining
terms or provisions hereof or the validity, enforceability or legality of such
offending term or provision in any other situation or jurisdiction or as
applied to any person

     Section 16. Successors

          The terms of this Amendment shall be binding upon, and shall inure to the
benefit of, the parties hereto and their respective successors and assigns.

     Section 17. Waiver of Jury Trial

          Each of the parties hereto irrevocably waives trial by jury in any action
or proceeding with respect to this Amendment or any other Transaction Document.

8

 

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

	 	 	 	 	 
	 	POLYONE FUNDING CORPORATION,

       as Seller

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	POLYONE CORPORATION,

       as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITICORP USA, INC.,

       as Agent and Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	NATIONAL CITY BUSINESS CREDIT, INC.,

       as Syndication Agent and Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	THE CIT GROUP/BUSINESS CREDIT, INC.,

       as a Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	FLEET CAPITAL CORPORATION,

       as a Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	GMAC COMMERCIAL FINANCE LLC,

       as a Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL,

       a division of Merrill Lynch Business

       Financial Services, Inc.,

       as an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	LASALLE BUSINESS CREDIT, LLC,

       as an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	PNC BANK, N.A.,

       as an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ORIX FINANCIAL SERVICES, INC.,

       as an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

       as an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	WEBSTER BUSINESS CREDIT CORPORATION,

       an Initial Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Schedule I – Commitments

	 	 	 	 	 
	Purchaser
	 	Commitment

	Citicorp USA, Inc.
	 	$	32,781,690	 
	National City Business Credit, Inc.
	 	$	32,781,689	 
	The Cit Group/Business Credit, Inc.
	 	$	16,431,925	 
	Fleet Capital Corporation
	 	$	16,431,925	 
	GMAC Commercial Finance LLC
	 	$	16,431,925	 
	LaSalle Business Credit, LLC
	 	$	11,666,667	 
	Merrill Lynch Capital
	 	$	16,431,925	 
	PNC Bank, N.A.
	 	$	12,323,944	 
	U.S. Bank National Association
	 	$	9,859,155	 
	Webster Business Credit Corporation
	 	$	9,859,155	 
	 
	 	 	
 	 
	Total:
	 	$	175,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]