AMENDMENT NO. 1 AND WAIVER TO CREDIT AGREEMENT dated as of April 25, 2007 Among ICO, INC., BAYSHORE INDUSTRIAL, L.P. and ICO POLYMERS NORTH AMERICA, INC., as Borrowers, KEYBANK NATIONAL ASSOCIATION, WELLS FARGO BANK, NATIONAL ASSOCIATION, AND THE...
Exhibit
10.1
AMENDMENT
NO. 1 AND WAIVER
dated
as of
April
25, 2007
Among
ICO,
INC.,
BAYSHORE
INDUSTRIAL, L.P. and
ICO
POLYMERS NORTH AMERICA, INC.,
as
Borrowers,
KEYBANK
NATIONAL ASSOCIATION,
XXXXX
FARGO BANK, NATIONAL ASSOCIATION,
AND
THE OTHER LENDING INSTITUTIONS NAMED HEREIN,
as
Lenders,
and
KEYBANK
NATIONAL ASSOCIATION,
as
an LC Issuer, Lead Arranger, Bookrunner,
Administrative
Agent and Syndication Agent
AMENDMENT
NO. 1 AND WAIVER TO CREDIT AGREEMENT
This
Amendment No. 1 and Waiver to Credit Agreement (this “Amendment”)
is
made as of April 25, 2007, by and among the following:
(i) ICO,
INC., a Texas corporation (“ICO”),
BAYSHORE INDUSTRIAL, L.P., a Texas limited partnership (“Bayshore”),
and
ICO POLYMERS NORTH AMERICA, INC., a New Jersey corporation (“ICO
Polymers,”
and
together with ICO and Bayshore, the “Borrowers”
and
individually, each a “Borrower”);
(ii) KEYBANK
NATIONAL ASSOCIATION, a national banking association, XXXXX FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, and the other lending institutions
from time to time party hereto (each a “Lender”
and
collectively, the “Lenders”);
and
(iii) KEYBANK
NATIONAL ASSOCIATION, a national banking association, as an LC Issuer, lead
arranger, bookrunner, and administrative agent (in such capacity as
administrative agent, the “Administrative
Agent”).
RECITALS:
A. The
Borrowers, the Administrative Agent and the Lenders are parties to the Credit
Agreement, dated as of October 27, 2006 (as amended, restated, supplemented
or
otherwise modified from time to time, the “Credit
Agreement”).
B. The
Borrowers, the Administrative Agent and the Lenders desire to amend the Credit
Agreement to modify the definition of “Term Loan Commitment Period” as more
fully set forth herein.
C. The
Borrowers have notified the Administrative Agent and the Lenders that the
Australian Subsidiary has violated the capital adequacy ratio covenant for
the
period ending March 31, 2007 (the “Violation”),
which
covenant is set forth in the loan agreements between the Australian Subsidiary
and the Australian Lender. As a result of the Violation, an Event of Default
has
occurred and is continuing under Section 8.01(e) of the Credit Agreement (the
“Existing
Default”).
The
Borrowers have requested, and the Administrative Agent and the Lenders have
agreed, to permanently waive the Existing Default as more fully set forth
herein.
D. Each
capitalized term used herein and not otherwise defined herein shall have the
same meaning set forth in the Credit Agreement.
AGREEMENT:
In
consideration of the premises and mutual covenants herein and for other good
and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Administrative Agent and the Lenders agree
as
follows:
1. Amendment
to Definition of “Term Loan Commitment Period.”
The
definition of “Term Loan Commitment Period” contained in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety as
follows:
“Term
Loan Commitment Period”
means
the period from and including the Closing Date through and including the date
that is 240 days after the Closing Date.
2. Waiver
of Existing Default.
The
Borrowers have requested that the Administrative Agent and the Lenders
permanently waive the Existing Default. The Administrative Agent and the Lenders
hereby waive, effective upon the satisfaction of the conditions precedent set
forth in section 3 below, the Existing Default upon the terms and conditions
set
forth herein.
3. Conditions
Precedent.
The
amendment and waiver set forth above shall become effective upon the
satisfaction of the following conditions precedent:
(a) this
Amendment has been executed by each Borrower, the Administrative Agent and
the
Lenders, and counterparts hereof as so executed shall have been delivered to
the
Administrative Agent;
(b) the
Borrowers have paid all reasonable out-of-pocket fees and expenses of the
Administrative Agent and of special counsel to the Administrative Agent that
have been invoiced on or prior to such date in connection with the preparation,
negotiation, execution and delivery of this Amendment;
(c) all
representations and warranties of the Loan Parties contained in the Credit
Agreement or in the other Loan Documents shall be true and correct in all
material respects with the same effect as though such representations and
warranties had been made on and as of the date of this Amendment, except to
the
extent that such representations and warranties expressly relate to an earlier
specified date, in which case such representations and warranties shall have
been true and correct in all material respects as of the date when made; and
(b) each
Subsidiary Guarantor has executed and delivered to the Administrative Agent
the
Subsidiary Guarantor Acknowledgment and Agreement attached hereto.
4. Representations
and Warranties.
Each
Borrower hereby represents and warrants to the Administrative Agent and the
Lenders that: (a) such Borrower has the legal power and authority to execute
and
deliver this Amendment; (b) the officials executing this Amendment have been
duly authorized to execute and deliver the same and bind such Borrower with
respect to the provisions hereof; (c) the execution and delivery hereof by
such Borrower and the performance and observance by such Borrower of the
provisions hereof do not violate or conflict with the organizational documents
of such Borrower or any law applicable to such Borrower; (d) no Default or
Event
of Default exists under the Credit Agreement, nor will any occur immediately
after the execution and delivery of this Amendment or by the performance or
observance of any provision hereof; and (e) this Amendment constitutes a valid
and binding obligation of such Borrower in every respect, enforceable in
accordance with its terms.
5. Credit
Agreement Unaffected.
Each
reference that is made in the Credit Agreement or any other Loan Document shall
hereafter be construed as a reference to the Credit Agreement as amended hereby.
Except as herein otherwise specifically provided, all provisions of the Credit
Agreement shall remain in full force and effect and be unaffected
hereby.
6. Counterparts.
This
Amendment may be executed in any number of counterparts, by different parties
hereto in separate counterparts and by facsimile signature, each of which when
so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.
2
7. Entire
Agreement.
This Amendment is specifically limited to the matters expressly set forth
herein. This Amendment and all other instruments, agreements and documents
executed and delivered in connection with this Amendment embody the final,
entire agreement among the parties hereto with respect to the subject matter
hereof and supersede any and all prior commitments, agreements, representations
and understandings, whether written or oral, relating to the matters covered
by
this Amendment, and may not be contradicted or varied by evidence of prior,
contemporaneous or subsequent oral agreements or discussions of the parties
hereto. There are no oral agreements among the parties hereto relating to the
subject matter hereof or any other subject matter relating to the Credit
Agreement.
8. Governing
Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.
(a) THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. TO THE FULLEST EXTENT PERMITTED
BY LAW, THE BORROWERS HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY CLAIM
TO
ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS GOVERNS
THIS AMENDMENT. Any legal action or proceeding with respect to this Amendment
may be brought in any court located in Xxxxxx County, Texas or in any court
of
the United States for the Southern District of Texas, Houston Division, and,
by
execution and delivery of this Amendment, each Borrower hereby irrevocably
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The Borrowers hereby
further irrevocably consent to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to the Borrower
Representative at its address for notices pursuant to Section 11.05 of the
Credit Agreement, such service to become effective 30 days after such mailing
or
at such earlier time as may be provided under applicable law. Nothing herein
shall affect the right of the Administrative Agent or any Lender to serve
process in any other manner permitted by law or to commence legal proceedings
or
otherwise proceed against the Borrowers in any other jurisdiction.
(b) The
Borrowers hereby irrevocably waive any objection that they may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Amendment brought in the courts
referred to in Section 8(a) above and hereby further irrevocably waive and
agree
not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient forum
3
(c) EACH
OF THE PARTIES TO THIS AMENDMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
TO
THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO HEREBY
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS
PARAGRAPH.
(Signature
pages follow.)
IN
WITNESS WHEREOF, this Amendment has been duly executed and delivered as of
the
date first above written.
ICO,
INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
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Chief
Financial Officer & Treasurer
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BAYSHORE
INDUSTRIAL, L.P.
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By:
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Bayshore
Industrial GP, L.L.C.
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Its:
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General
Partner
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Chief
Financial Officer & Treasurer
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ICO
POLYMERS NORTH AMERICA, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
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Senior
Vice President, Chief Financial Officer
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&
Treasurer
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KEYBANK
NATIONAL ASSOCIATION,
as
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Administrative
Agent and as a Lender
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By:
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/s/
Xxxx X. Xxxxxx
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Name:
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Xxxx
X. Xxxxxx
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Title:
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Vice
President
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XXXXX
FARGO BANK, NATIONAL
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ASSOCIATION,
as
a Lender
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By:
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/s/
Xxxx Xxxxxxx
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Name:
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Xxxx
X. Xxxxxxx
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Title:
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Vice
President
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SUBSIDIARY
GUARANTOR ACKNOWLEDGMENT AND AGREEMENT
Each
of
the undersigned (collectively, the “Subsidiary
Guarantors”
and,
individually, “Subsidiary
Guarantor”)
consents and agrees to and acknowledges the terms of the foregoing Amendment
No.
1 and Waiver to Credit Agreement, dated as of April 25, 2007 (the “Amendment”).
Each
Subsidiary Guarantor specifically acknowledges the terms of and consents to
the
amendments set forth in the Amendment. Each Subsidiary Guarantor further agrees
that its obligations pursuant to the Subsidiary Guaranty shall remain in full
force and effect and be unaffected hereby.
Each
Subsidiary Guarantor hereby waives and releases, to the fullest extent permitted
by applicable law, the Administrative Agent and each of the Lenders and their
respective directors, officers, employees, attorneys, affiliates, and
subsidiaries from any and all claims, offsets, defenses, and counterclaims
of
which any of the Subsidiary Guarantors is aware, such waiver and release being
with full knowledge and understanding of the circumstances and effect thereof
and after having consulted legal counsel with respect thereto.
EACH
SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY
IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
SUBSIDIARY GUARANTOR ACKNOWLEDGMENT AND AGREEMENT OR THE AMENDMENT, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH SUBSIDIARY GUARANTOR HEREBY
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT, IN THE EVENT
OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.
(Signature
page follows.)
IN
WITNESS WHEREOF, this Subsidiary Guarantor Acknowledgment and Agreement has
been
duly executed and delivered as of the date of the Amendment.
ICO
GLOBAL SERVICES, INC.
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By:
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/s/
Xxxxxx Xxxx Xxxxxxx
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Name:
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Xxxxxx
Xxxx Xxxxxxx
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Title:
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President
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ICO
P&O, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
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Treasurer
& Chief Financial Officer
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ICO
TECHNOLOGY, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
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Senior
V.P., Treasurer & Chief Financial
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Officer
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WEDCO
TECHNOLOGY, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Treasurer
& Chief Financial Officer
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WORLDWIDE
GP, L.L.C.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
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Manager
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WORLDWIDE
LP, L.L.C.
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By:
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ICO
Global Services, Inc.
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Its
Sole Member
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By:
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/s/
Xxxxxx X. Xxxxxxx
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Name:
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Xxxxxx
X. Xxxxxxx
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Title:
|
President
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ICO
WORLDWIDE, L.P.
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By:
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Worldwide
GP, L.L.C.
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Its
General Partner
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Manager
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BAYSHORE
INDUSTRIAL GP, L.L.C.
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By:
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/s/
Xxx X. Xxxx
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Name:
|
Xxx
X. Xxxx
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Title:
|
Treasurer
& Chief Financial Officer
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BAYSHORE
INDUSTRIAL LP, L.L.C.
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By:
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ICO
Global Services, Inc.
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Its
Sole Member
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By:
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/s/
Xxxxxx Xxxx Xxxxxxx
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Name:
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Xxxxxx
Xxxx Xxxxxxx
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Title:
|
President
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ICO
POLYMERS, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Treasurer
& Chief Financial Officer
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BAYSHORE
RE HOLDINGS, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Senior
V.P., Treasurer & Chief Financial
|
|
Officer
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WEDCO
PETROCHEMICAL, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Treasurer
& Chief Financial Officer
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CHINA
RE HOLDINGS, INC.
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By:
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/s/
Xxx X. Xxxx
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Name:
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Xxx
X. Xxxx
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Title:
|
Senior
V.P., Treasurer & Chief Financial
|
|
Officer
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