Document:

EXHIBIT
10.7.1

 

Union
Carbide Corporation and Subsidiaries

First
Amendment to Second Amended and Restated Revolving Loan Agreement

 

This First Amendment to
the Second Amended and Restated Revolving Loan Agreement (the “Amendment”),
dated as of December 31, 2007, is entered into by and between  Union Carbide Corporation, a New York
corporation (the “Lender”) and The Dow Chemical Company, a Delaware
corporation (the “Borrower”).

 

WHEREAS, the Lender and
the Borrower are parties to the Second Amended and Restated Revolving Loan
Agreement dated as of November 1, 2005 (the “Loan Agreement”);

 

WHEREAS, the Lender and
the Borrower wish to increase the Commitment Amount, as defined in the Loan
Agreement, to a sum not exceeding Four Billion U.S. dollars;

 

NOW, THEREFORE,

 

In view of the following
terms and conditions and for other good and valuable consideration to the
receipt and sufficiency whereof is hereby acknowledged, the parties agree as
follows:

 

1.                             Paragraph 2.1 of the Loan Agreement is
hereby amended to read as follows:

 

2.1           Advances

 

The Lender agrees, on the
terms and conditions stated in this Agreement, to make advances to the Borrower
(the 

“Advance(s)”) in an aggregate outstanding amount not to exceed
$4,000,000,000 (Four Billion U.S. Dollars) (the “Commitment”) during the
period form the Effective Date to the Maturity Date.  The amount of Advances outstanding from time
to time under this Agreement is referred to as the “Loan.”  The amount of Advances repaid pursuant to Section 2.4(d) below
prior to the Maturity Date, may be reborrowed subject to the limitations
contained in this Agreement.

 

2.                             Lender and Borrower expressly confirm
that all amounts previously loaned by Lender to Borrower pursuant to the Loan
Agreement (including those loaned in excess of the prior Commitment of Two
Billion Five Hundred Thousand U.S. Dollars ($2,500,000,000)) are deemed loaned
hereunder.

 

3.                             No Other Amendment or Waiver.  Except as expressly amended by this
Amendment, the Loan Agreement remains in full force and effect in accordance
with its terms.

 

4.                             Execution in Counterparts.  This Amendment may be executed in any number
or counterparts, each of which when so executed will be deemed to be an
original and all of which taken together will 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.

 

5.                             Governing Law.  This Amendment and the rights and obligations
of the parties to this Amendment will be governed by and construed and
interpreted in accordance with the laws of the State of New York.

 

IN WITNESS WHEREOF, the
parties have caused this Amendment to be duly executed by their duly authorized
representatives.

 

	
  UNION CARBIDE
  CORPORATION

  	
  THE DOW CHEMICAL
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ EDWARD W. RICH

  	
   

  	
  By:

  	
  /s/ ANDREAS UNTERSTE

  	
   

  
	
  Name:

  	
   

  	
  Edward W. Rich

  	
  Name: 

  	
  Andreas Unterste

  
	
  Title:

  	
   

  	
  Vice President, Chief
  Financial

  	
  Title:

  	
  Financial Operations
  Director

  
	
   

  	
   

  	
  Officer and Treasurer

  	
   

  	
   

  
											

 

 

82EXHIBIT
10.9

 

 

Union
Carbide Corporation and Subsidiaries

Contribution
Agreement

 

CONTRIBUTION AGREEMENT
(this “Agreement”), effective this 21st day of December, 2007, by and
among Union Carbide Corporation, a New York corporation (“UCC”), Dow
International Holdings Company, a Delaware corporation (“DIHC”) and The
Dow Chemical Company, a Delaware corporation (“TDCC”) (each a “Party”
and, collectively, the “Parties”).

 

WHEREAS, UCC owns all of
the issued and outstanding equity interests of UC Investment B.V., a private limited liability company organized
under the laws of  Netherlands (the “UCI
Interests”);

 

WHEREAS, TDCC currently
directly (and indirectly through its wholly owned subsidiary Essex Specialty
Products LLC) owns 92.59%, and UCC currently owns 7.41%, of the outstanding
equity interests of DIHC; and

 

WHEREAS, UCC desires to
contribute to DIHC, and DIHC desires to acquire from UCC, the UCI Interests and
the Parties wish to set forth their agreements in connection with such
contribution;

 

NOW, THEREFORE, in consideration of the foregoing and
the respective premises, mutual covenants and agreements of the Parties, the
Parties agree as follows:

 

Section 1.  Contribution of UCI Interests.  Upon and
subject to the conditions set forth in this agreement, UCC will contribute,
assign, and transfer the UCI Interests to DIHC (the “Contribution”) by
the execution of a notarial deed in the Netherlands, such deed substantially in
the form of the draft of such deed, indicated with 11097 (Document 003). DIHC
shall accept such Contribution by the execution of the same notarial deed.

 

Section 2.  Issuance of Additional Interests in DIHC.

 

(a)  As consideration for the Contribution, DIHC
shall issue to UCC shares in DIHC that will result in UCC owning an additional
percentage of the equity of DIHC (the “Additional Equity Percentage”)
determined as follows:

 

Additional Equity Percentage = ((ECV/(DIHC EV + ECV))
X 100

 

Where:

 

                                “ECV”
means the contribution value of UCI’s interest in EQUATE Petrochemical Co.
K.S.C. and EQUATE Marketing Co. E.C. (together, the “EQUATE Companies”)
which for the purposes of this Agreement shall be deemed to be (A) $3,011,000,000
adjusted for (B) 42.5% of the Net Debt of the EQUATE Companies as
of December 31, 2007, as calculated by Ernst &Young, less (C) the
amount distributed to DIHC or a subsidiary thereof by the Equate Companies in
respect of the earnings of the EQUATE Companies during their 2007 fiscal year
(the “2008 Distribution”); and

 

                                “DIHC
EV” means the equity value of DIHC, which for the purposes of this
Agreement shall be deemed to be (A) the product of 7.75 times the
2006 EBITDA (earnings before interest, taxes, depreciation and amortization) of
DIHC, as calculated by Ernst & Young, adjusted for (B) the
Net Debt of DIHC as of December 31, 2007, as calculated by Ernst &
Young, plus (C) to the extent not accounted for in the
determination of the Net Debt of DIHC, the value of any additional
contributions made to DIHC on or after January 1, 2007, as approved by UCC’s
President, with the value of the additional contributions as mutually agreed
upon by the Parties and incorporated into the calculation of DIHC EV by Ernst &
Young; and

 

                                “Net
Debt” means the current and non-current portion of long term debt less cash
and cash equivalents (including intercompany notes payable and receivable and
related interest).

 

DIHC shall issue such additional shares to UCC within thirty (30)
business days after delivery by Ernst & Young to the Parties of a
financial summary setting forth the ECV and the DIHC EV, including (i) the
Net Debt of the EQUATE Companies as of December 31, 2007, (ii) the
amount of the 2008 Distribution, (iii) the ECV, (iv) the 2006 EBITDA
of DIHC, (v) the Net Debt of DIHC as of December 31, 2007, (vi) any
amount to be added to the DIHC EV pursuant to clause (C) of the definition
thereof and (vii) the DIHC EV.

 

 

83

 

Union
Carbide Corporation and Subsidiaries

Contribution
Agreement

 

(b)  TDCC shall have the right to acquire, at any time prior to
the issuance of DIHC shares to UCC pursuant to Section 2(a), a number of
shares of DIHC sufficient to allow TDCC to own greater than 80% of the
outstanding shares of DIHC immediately following the issuance of shares to UCC
pursuant to Section 2(a) above at a purchase price determined as
follows:

 

          
Price = Number of Shares to be issued X (DIHC EV / No. of Shares of
DIHC Then Outstanding)

 

Section 3.  Remittance of 2008 Distribution.  Within thirty (30) days of receipt thereof by
DIHC or a subsidiary thereof, TDCC shall pay to UCC, by wire transfer to a bank
account specified by UCC, 65% of the 2008 distribution.

 

Section 4.  UCC Put.  UCC shall have the right (the “Put”),
by giving written notice (the “Exercise Notice”) to TDCC at the address
specified on the signature page to this Agreement at any time during the
period beginning January 1, 2009 and ending on December 31, 2011 to
sell the shares in DIHC issued to UCC pursuant to Section 2(a) for an
amount equal to 110% of ECV, plus an amount of accretion thereon of 2%
compounded annually from January 1, 2008 until the date the sale to TDCC
is consummated.  If UCC exercises the
Put, TDCC will purchase the shares subject thereto and deliver to UCC by wire
transfer to a bank account specified by UCC the purchase price therefore within
ninety (90) business days after delivery of the Exercise Notice to TDCC.  Upon receipt of such purchase price UCC will
deliver the subject shares to TDCC endorsed in blank.

 

Section 5.  Further Assurances.  Each Party hereto covenants and agrees to
take any and all such further action and to execute, acknowledge and deliver
such further instruments, documents and agreements as the other Party hereto
may reasonably request to effectuate, consummate or confirm the transactions
contemplated by this Agreement.

 

Section 6.  Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same Agreement. 
Delivery of an executed signature page by telecopier or other
electronic transmission (e.g., a “pdf” or “tif”) shall be effective as
delivery of a manually executed signature page of this Agreement.

 

Section 7.  Entire Agreement.  This Agreement sets forth the entire agreement
between the Parties with respect to the subject matter hereof and supersedes
any and all prior agreements, understandings or representations, whether
written or oral, by or between the Parties to the extent that they relate in
any way to the subject matter of this Agreement.

 

Section 8.  Applicable Law.  This Agreement shall be governed by the laws
of the State of Delaware, and the Parties submit to the non-exclusive
jurisdiction of any Delaware state court in relation to any dispute that may
arise from it.

 

Section 9.  Severability.  If any provision of this Agreement shall be
held to be invalid, illegal or unenforceable, such provision shall be construed
by limiting it so as to be valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 10.  Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and
permitted assigns.  This Agreement may
not be assigned by any Party without the express prior written consent of the
other Party, and any attempted assignment without such consent shall be null
and void.

 

Section 11.  Amendments.  This Agreement may not be modified, amended
or supplemented except in writing signed by the Parties.

 

84

Union
Carbide Corporation and Subsidiaries

Contribution
Agreement

 

IN WITNESS WHEREOF, each of the Parties, acting
through its duly authorized representative, has caused this Agreement to be
signed in its respective name as of the date first above written.

 

 

 

	
   

  	
  /s/ DAVID G
  WILKINS

  	
   

  
	
   

  	
  UNION CARBIDE
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  David G. Wilkins

  	
   

  	 

	
   

  	
  Title: 

  	
  Authorized Officer

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ WILLIAM L
  CURRY

  	
   

  
	
   

  	
  DOW INTERNATIONAL
  HOLDINGS COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  William L. Curry

  	
   

  	 

	
   

  	
  Title: 

  	
  Authorized Officer

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ WILLIAM L
  CURRY

  	
   

  
	
   

  	
  THE DOW CHEMICAL
  COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  William L. Curry

  	
   

  	 

	
   

  	
  Title: 

  	
  Authorized Officer

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices: 

  Union Carbide
  Corporation 

  400 West Sam Houston Pkwy, South 

  Houston, TX 77042 

  Attn: Legal Department 

   

  Dow International
  Holdings Company 

  2030 Dow Center 

  Midland, MI 48674 

  Attn: Legal Dept.

   

  The Dow Chemical
  Company

  2030 Dow Center

  Midland, MI 48674 

  Attn: Legal Dept.

  	
   

  
									

 

 

85

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