Document:

Exhibit
10.5

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement and its Exhibits (this “Agreement”), entered into the 23rd
day of April, 2008, effective as of January 1, 2008 is by and
between Dynamic Materials Corporation, a Delaware corporation (the “Company”), and John G. Banker,
a resident of the State of Colorado (“Executive”)
(together, the “parties”).

 

Recitals

 

A.            Executive has significant experience in
the management of companies and is willing to serve the Company on the terms
and subject to the conditions hereinafter set forth.

 

B.            The Company desires to secure the
continued services of Executive subject to the terms and conditions hereinafter
set forth.

 

C.            This agreement replaces, in its entirety,
that certain Employment Agreement between the Company and Executive dated March 3,
2005.

 

Agreement

 

In consideration of the foregoing and the mutual covenants and promises
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Employment. 
The Company hereby employs Executive as Senior Vice President, Customers
and Technology of the Company reporting to the Chief Executive Officer of the
Company, and Executive hereby accepts such employment and agrees to perform
such duties and responsibilities as are assigned to him from time-to-time by
the Chief Executive Officer of the Company.

 

2.             Full-time Best Efforts.  Executive shall
devote his full and exclusive professional time and attention to the performance
of his obligations under this Agreement, and will at all times faithfully,
industriously and to the best of his ability, experience and talent, perform
all of this obligations hereunder. 
Executive shall not, without the express written consent of the Company,
directly or indirectly, engage, alone or with others, in any other enterprises
or business concerns, nor render professional services to, own, control,
manage, consult with, be employed by, or otherwise have an interest in, any
such enterprises or concerns, during the term of his continued employment with
the Company.  Without limiting the
generality of any other provision herein, transactions in securities of
publicly traded companies and other passive investment activities shall not be
considered prohibited by the foregoing sentence, except as such transactions
and activities may violate the Company’s conflict of interest policy, if any,
in place from time to time.

 

3.             Term of Agreement.  This agreement
shall be effective on January 1, 2008 (the “Effective Date”) and
shall continue until December 31, 2008 (the “Term”), unless
otherwise terminated by either party pursuant to Section 5 below.

 

4.             Compensation Reimbursement.

 

(a)           Salary.  During the term of this Agreement, the
Company shall pay Executive an annual salary (“Salary”) of $275,000
payable in accordance with the Company’s standard payroll practices for
similarly situated employees.  The compensation committee of the Company’s
board of directors (the “Compensation Committee”) will review Executive’s
Salary at least annually and may increase (but not reduce) Executive’s Salary
in its sole discretion.  All compensation
paid to Executive hereunder is subject to all deductions required by law.

 

(b)           Bonus.  Executive shall be eligible to receive a non-discretionary
annual bonus equal to 1.0% of the Company’s 2008 net income.  Executive shall also be eligible to receive a
discretionary annual bonus in an amount up to 20% of Executive’s Salary.  The discretionary bonus will be determined
based on performance goals 

 

 

and rules established by the
Compensation Committee.  The bonus and
discretionary bonus, if any, will be payable before March 15, 2009.  Executive is not guaranteed any bonus
payment.

 

(c)           Stock
Incentives.  Executive
shall be eligible to receive restricted shares of the Common Stock of the
Company under the Company’s 2006 Stock Incentive Plan (the “Incentive Plan”)
subject to the terms and conditions of such plan and as granted by the
Compensation Committee.  If the Company terminates Executive’s employment
for any reason other than Cause pursuant to Section 5(b), all restricted
stock held by Executive shall immediately vest, subject to the terms and
conditions of the Incentive Plan.

 

(d)           Benefits.  Executive shall receive the following Company
benefits:

 

(i)            term
life insurance coverage in the amount of $415,000 which is in addition to the
standard term life insurance provided in the Company’s standard benefit plan;

 

(ii)           participation
in the Company’s executive long-term disability plan, subject to any waiting
periods or exclusions required by the insurance provider;

 

(iii)         five
weeks of vacation per year until such time as Executive’s length of service
entitles Executive to additional vacation;

 

(iv)          participation
in the Company’s standard benefit programs including health and dental
insurance, term life insurance, accidental death and dismemberment insurance,
short and long term disability, paid holidays and certain other standard
benefits provided by the Company;

 

(v)            participation
in the Company’s 401(k) retirement plan; and

 

(vi)          reimbursement
of up to $5,000 of professional service fees for a financial planning and/or
tax consultant to advise Executive.

 

(e)           Expense
Reimbursement.  The
Company shall reimburse Executive for all travel expenses and other
disbursements incurred by Executive for or on behalf of the Company in the
performance of his duties hereunder, subject to and in accordance with the
Company’s expense reimbursement policies and procedures, as in effect from
time-to-time.

 

5.             Termination.

 

(a)           The Company may terminate Executive’s
employment at any time for Cause (as hereinafter defined), effective
immediately upon written notice to Executive. Such notice shall specify that a
termination is being made for Cause and shall state the basis therefor. Any
termination under this subparagraph shall serve to relieve Executive of all his
duties and authority on behalf of the Company as of the date such notice states
the termination is to take effect.  All
obligations of the Company to Executive hereunder shall terminate as of the
effective date of any such termination, except for obligations accrued prior to
such effective date.  For purposes of
this Agreement, termination for “Cause” shall include any of the following that
detrimentally affect the Company:

 

(i)            a
willful and substantial breach by Executive of the terms of this Agreement or
any written agreement between Executive and the Company that has a materially
adverse effect on the business and affairs of the Company;

 

(ii)           the
failure by Executive to substantially perform, or the gross negligence in the
performance of, his duties hereunder for a period of fifteen days after the
Chief Executive Officer of the Company has made a written demand for
performance which specifically identities the manner in which he believes that
Executive has not substantially performed his duties;

 

2

 

(iii)         the
commission by Executive of a willful act or failure to act of misconduct which
is injurious to the Company, including, but not limited to, material violations
of any Company policy (such as the Company’s code of ethics);

 

(iv)          a
conviction or a plea of guilty or nolo contendere in connection with fraud or
any crime that constitutes a felony in the jurisdiction involved; or

 

(v)            an
act of failure to act constituting fraud or dishonesty that compromises
Executive’s ability to act effectively as a high-level executive of the
Company.

 

(b)           The Company may terminate Executive’s
employment for any reason other than Cause at any time upon the payment to
Executive of (i) an amount equal to one year’s Salary, which amount shall
be payable in twelve monthly payments (the “Termination Payments”), plus
(ii) a bonus for such period, based on the average bonus (if any) paid to
Executive for the two years preceding the termination; provided, that Executive
shall execute a release, prepared by the Company, releasing the Company from
all claims as a condition of receiving the Salary and bonus (if any) pursuant to
this Agreement.  Such amounts received
under this provision shall be reduced to the extent that Executive accepts
other employment prior to the receipt of the final Termination Payment.  Any termination under this subparagraph shall
serve to relieve Executive of all his duties and authority on behalf of the
Company as of the date such notice states the termination is to take
effect.  All obligations of the Company
to Executive under this Agreement shall terminate as of the effective date of
any such termination, except for obligations accrued prior to such effective
date.

 

(c)           Upon the termination of Executive’s
employment hereunder, neither Executive nor Executive’s beneficiary or estate
shall have any further rights or claims against the Company under this
Agreement except the right to receive:

 

(i)            the
unpaid portion of the earned Salary computed on a pro rata basis to the date of
termination;

 

(ii)           any
unpaid bonus owing under Section 4(b) or 5(b); and

 

(iii)         reimbursement
for any expenses for which Executive shall not have theretofore been reimbursed
as provided in Section 4(e).

 

(d)           Notwithstanding any other provision
of this Section 5, Executive shall have the right to terminate his
employment at any time upon sixty days’ written notice to the Company (or upon
such shorter notice as the Company may agree in writing in connection with such
termination). Any such termination by Executive shall be deemed effective upon
receipt by the Company of such notice. 
Any termination under this subparagraph shall be effective as of the
date stated in the notice and shall serve to relieve both parties from all
their duties and obligations to one another hereunder after such date, except
for obligations accrued prior to such effective date.

 

(e)           If Executive dies during the term of
his employment hereunder, this Agreement shall automatically terminate as of
the date of his death and the parties shall be relieved from their respective
duties and obligations to one another as of the effective date of any such
termination.  Executive’s estate or
designated beneficiaries shall receive any accrued but unpaid portion of
Executive’s Salary and the bonus, if any, he would have received in respect of
the portion of the fiscal year prior to his termination, payable at the same
time as bonuses are paid to other executives and any other amounts owing to
Executive under Section 5(c).  If
Executive is unable to fully and satisfactorily perform any of the essential
functions of his position by reason of disability, with or without reasonable
accommodation as may be required under law, for a period of at least ninety
consecutive calendar days, this Agreement and Executive’s employment hereunder
may be terminated at the election of the Company, effective upon sixty days’
written notice given at any time after such consecutive ninety day period of
continuous disability elapses, provided Executive continues to be suffering
from such disability at the time notice of such termination is given by the
Company.  In the event of termination
under the previous sentence, the parties shall be relieved from their
respective duties and obligations to one another from and after the date such
termination takes effect.  Executive
shall receive any accrued but unpaid portion of Executive’s Salary and the bonus,
if any, he would have 

 

3

 

received in respect of the portion of the
fiscal year prior to his termination, payable at the same time as bonuses are
paid to other executives and any other amounts owing to Executive under Section 5(c).  Should Executive’s disability, if any, be of
an intermittent nature, the disability shall nonetheless be considered to be
continuing during any period of time that the disability abates for seven or
less consecutive calendar days, but any such intermittent periods during which
the disability has abated for seven or less consecutive calendar days shall not
be counted for purposes of determining the consecutive ninety day period of “continuous”
disability following which the Company may elect to give notice of termination.

 

For purposes of this subparagraph (e), “disability” shall mean
that Executive is unable, by reason of physical or mental sickness or illness,
injury, or incapacity, to perform any of the essential functions of his regular
employment by the Company.  Executive
shall be considered to be suffering from a disability if he is determined to be
disabled by any disability insurer insuring Executive on the date the condition
of disability commenced.  In the event
there is no disability determination made by a relevant insurer, Executive
shall be considered to be suffering from a disability if, in the opinion of a
qualified physician selected by mutual agreement of Executive and the Company,
Executive is determined to be unable to perform any of the essential functions
of his regular employment by the Company by reason of any physical or mental
sickness, injury, or incapacity.  In the
event Executive and the Company cannot agree upon the selection of a qualified
physician, each party shall appoint a qualified physician of his or its choice
and the two physicians so appointed shall mutually select a qualified physician
to render the subject opinion as to whether or not Executive is suffering from
a disability as defined above.  A “qualified
physician” shall mean a person who is licensed to practice medicine and
prescribe and administer prescription drugs and/or to perform surgery in the
state of Executive’s residence at the time of the commencement of the believed
disability (or is so licensed in such other state as the parties shall
reasonably agree is a convenient place in which to examine Executive and/or
review his medical records) and who is acting within the scope of his/her
medical license and qualified by his/her licensure, certification, training or
experience to render the subject opinion.

 

(f)            In
the event of any termination of this Agreement in connection with which
Executive is entitled by law or is allowed by the Company to continue his
coverage under the Company’s health, dental, eye and other medical insurance
policies, Executive shall be responsible for paying the cost of all insurance
premiums and charges necessary to keep such coverage in force during any period
of time that such coverage is so continued following termination.

 

6.             Proprietary Information and Non-Competition
Agreements.  Executive
shall be bound by the terms of the Company’s standard form of the Key Employee
Proprietary Information and Inventions Agreement, attached hereto as Exhibit A,
and the Non-Competition and Non-Solicitation Agreement, attached hereto as Exhibit B,
from and after the date hereof.

 

7.             Miscellaneous.

 

(a)           Judicial
Limitation.  In the event
that any provision of this Agreement is more restrictive than permitted by the
law of the jurisdiction in which the Company seeks enforcement thereof, the
provisions of this Agreement shall be limited only to that extent that a
judicial determination finds the same to be unreasonable or otherwise
enforceable. Such invalidity or unenforceability shall not affect any other
terms herein, but such term shall be deemed deleted, and such deletion shall
not affect the validity of the other terms thereof. In addition, if any one or
more of the terms contained in this Agreement shall for any reason be held to
be excessively broad or of an overly long duration, that term shall be
construed in a manner to enable it to be enforced to the extent compatible with
applicable law. Moreover, notwithstanding any judicial determination that any
provision of this Agreement is not specifically enforceable the parties intend
that the Company shall nonetheless be entitled to recover monetary damages as a
result of any breach hereof.

 

(b)           Injunctive
Relief.  In view of the
nature of the rights in goodwill, business reputation and prospects of the
Company to be protected under this Agreement, Executive understands and agrees
that the Company could not be reasonably or adequately compensated in damages
in an action at law for Executive’s breach of his obligations hereunder.
Accordingly, Executive specifically agrees that the Company shall be entitled
to temporary and permanent injunctive relief to enforce the provisions of this
Agreement and that such relief may be granted without the necessity of proving
actual damages. This provision with respect to injunctive relief shall not,
however, diminish the right of the Company to claim and recover damages in
addition to injunctive relief.

 

4

 

(c)           Waiver.  The failure of the Company to enforce at
any time of the provisions of this Agreement or to require any performance by
Executive of the provisions hereof shall in no way be construed to be a waiver
of such provisions or to affect either the validity of this Agreement, or any
part hereof, or the right of the Company thereafter to enforce each and every
provision in accordance with the terms of this Agreement.

 

(d)           Severability.  The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such
invalid or unenforceable provisions were omitted.

 

(e)           Binding
Effect.  This Agreement
shall be binding upon the parties, their successors, executors and heirs.

 

(f)            Assignability.  This Agreement shall be freely assignable by
the Company and shall inure to the benefit of its successors and assigns.

 

(g)           Entire
Agreement.  This Agreement,
including the Key Employee Proprietary Information and Inventions Agreement and
the Non Competition Agreement referred to herein, and which are incorporated
herein and made a part hereof by reference, embody the entire agreement and
understanding of the parties hereto and supersede all prior agreements or
understanding (whether written or oral) with respect to the subject matter
hereof.

 

(h)           Governing
Law and Venue.  The
validity of this Agreement and any of its terms and provisions, as well as the
rights and duties of the parties hereunder, shall be governed by the laws of
the State of Colorado (without regard to its conflicts of law doctrines) and
the venue for any action to enforce or to interpret this Agreement shall be in
a court of competent jurisdiction located in the State of Colorado and each of
the parties consent to the jurisdiction of such court in any such action or
proceeding and waives any objection to venue laid therein.

 

(i)            Amendments.  This agreement may not be amended,
altered or modified other than by a written agreement between the parties
hereto.

 

(j)            Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original and all
of which shall together constitute one and the same instrument. This Agreement
shall become binding when one or more counterparts hereof shall bear the
signatures of all the parties indicated as the signatories hereto.

 

(k)           Notices.  All notices, requests, demands and other
communications under the Agreement shall be given in writing and shall be
served either personally, by facsimile or delivered by first class mail,
registered or certified, return receipt requested, postage prepaid and properly
addressed to the parties as noticed herein. Notice shall be deemed received
upon the earliest of actual receipt, confirmed facsimile or three (3) days
following mailing pursuant to this section.

 

If to Executive:

 

John G. Banker

6220 Old Brompton Rd.

Boulder, CO  80301

 

If to the Company:

 

Dynamic Materials Corporation

Attention: Chief Executive Officer

5405 Spine Road

Boulder, CO 80301

Facsimile:  (303) 604-1897

 

5

 

(l)            Interpretation.  Each party has had the opportunity and
has reviewed and revised this Agreement (and has had an opportunity to consult
with counsel if desired) and, therefore, the rule of construction
requiring that any ambiguity be resolved against the drafting party shall not
be employed in the interpretation of this Agreement.  The section headings
contained in this Agreement are for convenience and reference purposes only and
shall not affect in any way the meaning and interpretation of this Agreement.

 

(m)          Attorney’s
Fees and Costs.  If either
party shall commence any action or proceeding against the other to enforce the
provisions hereof, or to recover damages as a result of the alleged breach of
any provisions hereof, the prevailing party therein shall be entitled to
recover all reasonable costs incurred in connection therewith, including
reasonable attorney’s fees.

 

[Signature Page Follows]

 

6

 

Acknowledgment

 

Each party’s signature below acknowledges that the
party has read this document fully, that the party fully understands and agrees
to its contents and effect, that the party understands that it is a legally
binding document, that the party is mentally and physically competent and
capable of reading, understanding and signing this Agreement, and that the
party has signed this document voluntarily and of its own free will, and not as
a result of any pressure or coercion. 
Each party’s signature below further acknowledges that the party has had
the opportunity to consult with an attorney about the meaning and effect of the
terms of this Agreement and that each party has in fact consulted with an
attorney of the party’s own choosing about this Agreement.

 

This Agreement is executed as of the date first set above:

 

 

	
   

  	
  DYNAMIC MATERIALS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yvon Cariou

  
	
   

  	
   

  	
  Yvon
  Cariou

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
  /s/
  John G. Banker

  
	
   

  	
  John G. Banker

  

 

 

[EXHIBITS OMITTED]

 

 [Company-Wide Form Of  Certain Employment Agreements]

 

8

 

2009
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This 2009 Amendment to Employment Agreement (this “Amendment”), entered into the 4th day
of February, 2009, effective as of January 1, 2009, is by and
between Dynamic Materials Corporation, a Delaware corporation (the “Company”), and John G. Banker,
a resident of the State of Colorado (“Executive”).  This Amendment amends the Employment Agreement  dated April 23, 2008 to be effective
as of January 1, 2008, between the
Company and Executive (the “Agreement”).

 

In consideration of the foregoing and the mutual covenants and promises
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Term. 
Section 3 of the Agreement is hereby amended by replacing “2008”
with “2009” in both occurrences.

 

2.             Salary.  Section 4(a) of the Agreement is
hereby amended by replacing “$275,000” with “$284,625.”

 

3.             Non-discretionary Annual Bonus.  Section 4(b) of
the Agreement is hereby amended to read in its entirety as follows:

 

(b)           Bonus. 
Executive shall be eligible to receive a non-discretionary annual bonus
equal to an amount equal to 1.0% of the Company’s
2009 net income up to an amount equal to 125% of such Executive’s Salary and
thereafter 0.5% of the Company’s 2009 net income.  Executive shall also be eligible to receive a
discretionary annual bonus in an amount up to 20% of Executive’s Salary.  The discretionary bonus will be determined
based on performance goals and rules established by the Compensation
Committee.  The bonus and discretionary
bonus, if any, will be payable before March 15, 2010.  Executive is not guaranteed any bonus payment.

 

4.             Miscellaneous.  All other provisions of the Agreement shall
remain effective.

 

In witness whereof, the parties have
executed this Amendment as of the date set forth above.

 

	
   

  	
  DYNAMIC MATERIALS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yvon Cariou

  
	
   

  	
   

  	
  Yvon Cariou

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  John G. Banker

  
	
   

  	
  John G. Banker

  

 

 

2010
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This 2010 Amendment to Employment Agreement (this “Amendment”), entered into the 5th day
of March, 2010, effective as of January 1, 2010, is by and between
Dynamic Materials Corporation, a Delaware corporation (the “Company”), and John G. Banker,
a resident of the State of Colorado (“Executive”).  This Amendment further amends the Employment
Agreement dated April 23, 2008 to be effective as of January 1,
2008, between the Company and
Executive, as amended by the 2009 Amendment (the “Agreement”).

 

In consideration of the foregoing and the mutual covenants and promises
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Term. 
Section 3 of the Agreement is hereby amended to read in its
entirety as follows:

 

This agreement
shall be effective on January 1, 2010 (the “Effective Date”) and
shall continue until December 31, 2012 (the “Term”), unless
otherwise terminated by either party pursuant to Section 5 below.

 

2.             Termination.  Section 5(b) of
the Agreement is hereby amended to read in its entirety as follows:

 

(b)           The Company may terminate Executive’s
employment for any reason other than Cause at any time upon the payment to
Executive of (i) an amount equal to the greater of (A) the remaining
Salary payable through the Term of this Agreement, or (B) one year’s
Salary, which amount shall be payable in equal monthly payments (the “Termination
Payments”), plus (ii) a bonus for such period, equal to (X) the
amount of the average bonus (if any) paid to Executive for the two years
preceding the termination, multiplied by (Y) three, two or one if the
Executive’s employment is terminated pursuant to this Section 5(b) during
the first, second or third, respectively, 12-month period of the Term;
provided, that Executive shall execute a release, prepared by the Company,
releasing the Company from all claims as a condition of receiving the Salary
and bonus (if any) pursuant to this Agreement. 
Such amounts received under this provision shall be reduced to the
extent that Executive accepts other employment prior to the receipt of the
final Termination Payment.  Any
termination under this subparagraph shall serve to relieve Executive of all his
duties and authority on behalf of the Company as of the date such notice states
the termination is to take effect.  All
obligations of the Company to Executive under this Agreement shall terminate as
of the effective date of any such termination, except for obligations accrued
prior to such effective date.

 

3.             Miscellaneous.  All other provisions of the Agreement shall
remain effective.

 

In witness whereof, the parties have
executed this Amendment as of the date set forth above.

 

	
   

  	
  DYNAMIC MATERIALS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yvon Cariou

  
	
   

  	
   

  	
  Yvon Cariou

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s
  /John G. Banker

  
	
   

  	
  John G. BankerExhibit 10.57

 

AMENDMENT NO. 3 TO THE

CREDIT AGREEMENT

 

	
   

  	
  Dated as of January 15, 2010

  

 

AMENDMENT NO. 3 TO THE CREDIT AGREEMENT (this “Amendment”) among Chemtura
Corporation, a Delaware corporation (the “Borrower”), the guarantors
party thereto (the “Guarantors”), the banks, financial institutions and
other institutional lenders party to the Credit Agreement referred to below
(collectively, the “Lenders”) and Citibank, N.A., as administrative
agent (the “Administrative Agent”) for the Lenders.

 

PRELIMINARY STATEMENTS:

 

(1)           The Borrower, the Guarantors, the
Lenders and the Administrative Agent have entered into the Senior Secured
Superpriority Debtor-in-Possession Credit Agreement dated as of March 18,
2009 (as heretofore amended or otherwise modified, the “Credit Agreement”).  Capitalized terms not otherwise defined in
this Amendment have the same meanings as specified in the Credit Agreement.

 

(2)           The Borrower has requested that the
Lenders amend certain provisions of the Credit Agreement.  The Lenders party hereto are, on the terms
and conditions stated below, willing to grant the request of the Borrower.

 

SECTION 1.           Amendments
to the Credit Agreement.  The Credit Agreement is, effective as
of the date hereof and subject to the satisfaction of the applicable conditions
precedent set forth in Section 2 of this Amendment, hereby amended as
follows:

 

(a)   Section 1.01 of the Credit Agreement is
hereby amended by inserting the following new definitions in the appropriate
alphabetical position:

 

“Albemarle
Settlement and Cross License” means, collectively, (a) the mutual
release by the Borrower and Great Lakes Chemical Corporation (“GLCC”), on the
one hand, and Albemarle Corporation, on the other hand, of claims and
counterclaims raised or that could be raised (i) in Albemarle
Corporation v. Great Lakes Chemical Corporation, Civil Action Nos.
02-505-JVP-DLD and 02-506-JVP-DLD, consolidated, pending on the Third Amendment
Effective Date in the United States District Court for the Middle District of
Louisiana; (ii) in Albemarle Corporation v.
Chemtura Corporation and Great Lakes Chemical Corporation, Civil
Action No. 05-1239-JJB-SCR,
pending on the Third Amendment Effective Date in the United States District
Court for the Middle District of Louisiana; and (iii) in Chemtura Corporation v. Albemarle Corporation, Civil Action No. 3:09cv143-JRS,
pending on the Third Amendment Effective Date in the United States District
Court for the Eastern District of Virginia, (iv) in controversies relating
to the Borrower’s and GLCC’s concerns that former employees of the Borrower or
GLCC made available to Albemarle certain of the Borrower’s and/or GLCC’s trade
secrets, confidential information and/or know-how, and/or (v) under
U.S. Patent Numbers 4,719096, 4,725,425, 4,978518, 5,008,477, 5,030,778,
5,053,447, 5,077,334, 5,124,496, 5,302,768, 5,387,636, 5,457,248 and 6,958,423;
and (b) the grant by the Borrower and/or GLCC to Albemarle Corporation of
a nonexclusive, fully paid-up, royalty-free, irrevocable, world-wide license

 

 

to manufacture,
use, sell, offer for sale and import FM 2100 or any other products under the
claims of U.S. Patent Number 5,457,248 and its respective foreign counterparts
and continuations, including reissue patents, reexamined patents, as well as
all of the applications to which this patent claims priority, the patents
claiming priority from it, including continuation applications,
continuation-in-part applications, CPA and RCE applications, divisional
applications, and any patent that issues from a patent application that is
subject to this clause (b), in consideration of the grant by Albemarle
Corporation of certain licenses to the Borrower and GLCC with respect to
certain of Albemarle Corporation’s intellectual property, in each case on
substantially the terms set forth in the Settlement and Cross-License Agreement
signed on December 24, 2009 among Albemarle Corporation, the Borrower and
GLCC.

 

“PVC Additives
Sale” means the sale of all or substantially all of the assets of the
business of the Borrower and its Subsidiaries known as the “PVC Additives
business”, consisting primarily of (a) the ownership interest in Chemtura
Vinyl Additives GmbH (“Chemtura Vinyl”) and (b) certain assets used
in the manufacture and distribution of tin and mixed metal stabilizers and related
intermediates, organic based stabilizers, epoxidized soybean oil, liquid
phosphate esters, chemical foaming agents and impact modifiers, as engaged in
by the Borrower at its Taft, Louisiana facility and by Chemtura Vinyl to (a) SK
Atlas, LLC and certain of its affiliates on substantially the terms set forth
in (or on terms taken as a whole more favorable to the Borrower than those set
forth in) the Share and Asset Purchase Agreement dated as of December 23,
2009 among SK Atlas, LLC, SK Capital Partners II, LP and the Borrower or (b) another
third-party purchaser, in each case pursuant to auction procedures approved by
the Bankruptcy Court, for consideration consisting of cash and/or the
assumption of certain liabilities by the buyer thereof.

 

“Third Amendment”
means Amendment No. 3 to this Agreement dated as of January 15, 2010
by and among the Borrower, the Guarantors and the Lenders party thereto.

 

“Third
Amendment Effective Date” means the “Effective Date” as defined in the
Third Amendment.

 

(b)   Section 5.02(a) of the Credit
Agreement is hereby amended by (i) deleting the “and” immediately
preceding clause (ix) thereof and (ii) adding immediately prior
to the “.” at the end thereof the following new clause (x):

 

“; and (x) the
Albemarle Settlement and Cross License, so long as the same is approved by the
Bankruptcy Court”.

 

(c)   Section 5.02(h) of the Credit
Agreement is hereby amended by (i) deleting the “and” immediately
preceding clause (xv) thereof and (ii) adding immediately prior to
the “.” at the end thereof the following new clauses (xvi) and (xvii):

 

“; (xvi) the
PVC Additives Sale, so long as the same is approved by the Bankruptcy Court;
and (xvii) the Albemarle Settlement and Cross License, so long as the same
is approved by the Bankruptcy Court”.

 

2

 

SECTION 2.           Conditions
to Effectiveness.

 

(a)   This Amendment shall become effective as of
the date first above written (the “Effective Date”) when, and only when
the Administrative Agent shall have received counterparts of this Amendment
executed by the Borrower, each Guarantor and the Required Lenders or, as to any
such Lenders, advice satisfactory to the Administrative Agent that such Lender
has executed this Amendment.

 

(b)   This Amendment is subject to the provisions
of Section 10.01 of the Credit Agreement.

 

SECTION 3.           Reference
to and Effect on the Credit Agreement and the Loan Documents.  (a)  On and after the effectiveness of
this Amendment, 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 the Notes and 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
further amended by this Amendment.

 

(b)   The Credit Agreement and the Notes and each
of the other Loan Documents, as specifically amended by this Amendment, are and
shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed.

 

(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 Administrative Agent
under the Credit Agreement or any other Loan Document, nor constitute a waiver
of any provision of the Credit Agreement or any other Loan Document.

 

SECTION 4.           Costs
and Expenses.  The Borrower agrees to
pay within 10 Business Days of demand all reasonable costs and expenses of the
Administrative Agent in connection with the preparation, execution, delivery
and administration, modification and amendment of this Amendment and the other
instruments and documents to be delivered hereunder in accordance with the
terms of Section 10.04 of the Credit Agreement.

 

SECTION 5.           Execution
in 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 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 by telecopier shall be
effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 6.           Governing
Law.  This Amendment shall be
governed by, and construed in accordance with, the laws of the State of
New York.

 

[Remainder of
Page Intentionally Left Blank]

 

3

 

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

 

	
   

  	
  CHEMTURA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  A & M
  CLEANING PRODUCTS, LLC

  
	
   

  	
  AQUA CLEAR
  INDUSTRIES, LLC

  
	
   

  	
  ASCK, INC.

  
	
   

  	
  ASEPSIS, INC.

  
	
   

  	
  BIOLAB TEXTILE
  ADDITIVES, LLC

  
	
   

  	
  BIO-LAB, INC.

  
	
   

  	
  CNK CHEMICAL
  REALTY CORPORATION

  
	
   

  	
  CROMPTON COLORS
  INCORPORATED

  
	
   

  	
  CROMPTON HOLDING
  CORPORATION

  
	
   

  	
  CROMPTON
  MONOCHEM, INC.

  
	
   

  	
  GREAT LAKES
  CHEMICAL CORPORATION

  
	
   

  	
  GREAT LAKES
  CHEMICAL GLOBAL, INC.

  
	
   

  	
  GT SEED
  TREATMENT, INC.

  
	
   

  	
  HOMECARE LABS,
  INC.

  
	
   

  	
  ISCI, INC.

  
	
   

  	
  LAUREL
  INDUSTRIES HOLDINGS, INC.

  
	
   

  	
  KEM
  MANUFACTURING CORPORATION

  
	
   

  	
  MONOCHEM, INC.

  
	
   

  	
  NAUGATUCK
  TREATMENT COMPANY

  
	
   

  	
  RECREATIONAL
  WATER PRODUCTS, INC.

  
	
   

  	
  UNIROYAL
  CHEMICAL COMPANY LIMITED (DELAWARE)

  
	
   

  	
  WEBER CITY ROAD
  LLC

  
	
   

  	
  WRL OF INDIANA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

	
   

  	
  SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE CREDIT AGREEMENT, DATED AS OF THE DATE
  FIRST WRITTEN ABOVE, AMONG CHEMTURA CORPORATION, THE GUARANTORS PARTY THERETO, THE VARIOUS
  LENDERS PARTY THERETO AND CITIBANK. N.A., AS ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  BIOLAB COMPANY
  STORE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOLAB FRANCHISE
  COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GLCC LAUREL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  SIGNATURE
  PAGE TO AMENDMENT NO. 3 TO THE CREDIT AGREEMENT, DATED AS OF THE DATE
  FIRST WRITTEN ABOVE, AMONG CHEMTURA CORPORATION, THE GUARANTORS PARTY THERETO, THE VARIOUS
  LENDERS PARTY THERETO AND CITIBANK. N.A., AS ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  Accepted
  and agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CITIBANK, N.A.,

  as Administrative Agent and as a Lender

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

 

	
  SIGNATURE
  PAGE TO AMENDMENT NO. 3 TO THE CREDIT AGREEMENT, DATED AS OF THE DATE
  FIRST WRITTEN ABOVE, AMONG CHEMTURA CORPORATION, THE GUARANTORS PARTY THERETO, THE VARIOUS
  LENDERS PARTY THERETO AND CITIBANK. N.A., AS ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  Accepted
  and agreed:

  	
   

  
	
   

  	
   

  
	
                                                                                                

  	
  ,

  	
   

  
	
  as a Lender

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]