Exhibit 99.13
Execution version
SHARE PLEDGE AGREEMENT
between
SOLUTIA EUROPE SA/NV,
a Belgian company limited by shares, having its registered office at
Boondaelse Xxxxxxxx 0, 0000 Xxxxxxxx, Xxxxxxx and registered at the
Crossroads Bank for Enterprises, under enterprise number 0460.474.440,
(the PLEDGOR)
and
KBC BANK NV,
a Belgian bank, with registered office at Xxxxxxxxx 0, X-0000 Xxxxxxxx,
Xxxxxxx, registered at the Crossroads Bank for Enterprises under enterprise
number 0462.92.0.226, acting for itself and as joint creditor pursuant to
Clause 2.1 of the Collateral Agency Agreement (as defined below),
(the PLEDGEE)
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WHEREAS
(A) The Pledgor and the Noteholders have agreed to amend and restate the
Pledgor's euro 200,000,000 6.25 percent Notes due 2005, as amended and
restated, the euro 200,000,000 10.00 percent Senior Secured Notes due
2008 (together with the Terms and Conditions of Notes annexed thereto,
as amended, modified or supplemented from time to time, the NOTES and
such Terms and Conditions of Notes, as amended, modified or
supplemented from time to time, the TERMS AND CONDITIONS OF NOTES)
pursuant to an Agreement of Understanding and Restructuring dated
30 January 2004 among the Pledgor and the Noteholders party thereto (as
amended, modified or supplemented from time to time, the AGREEMENT OF
UNDERSTANDING). In connection with the Notes, the Pledgor will enter
into a Fiscal Agency Agreement dated on or about the date of this
Agreement among the Pledgor, Kredietbank S.A. Luxembourgeoise as fiscal
agent and paying agent and KBC Bank NV as principal paying agent (as
amended, modified or supplemented from time to time, the FISCAL AGENCY
AGREEMENT). The Noteholders and the Couponholders are entitled to the
benefit of, are bound by and are deemed to have notice of all of the
provisions of the Fiscal Agency Agreement.
(B) It is a requirement of the Agreement of Understanding and the Terms
and Conditions of Notes that the Pledgor pledge its shares in the
Company (as defined below) to the Pledgee to secure its obligations
to the Pledgee as provided herein and undertake the obligations
contemplated by this Agreement.
(C) Pursuant to Clause 2.1 of the Collateral Agency Agreement (as
defined below), the Pledgee shall be the joint creditor (together
with the relevant Noteholder) of each and every obligation of the
Pledgor towards each of the Noteholders under the Notes and the
other Credit Documents to which the Pledgor is party, and
accordingly the Pledgee will have its own independent right to
demand performance by the Pledgor of those obligations. There is as
a result a joint creditorship under New York law between the
Noteholders and the Pledgee with regard to the sums owed under the
Notes and the other Credit Documents.
(D) The Pledgor is the legal and beneficial owner of the entire share
capital of Amcis AG (AMCIS or COMPANY), a stock corporation
(Aktiengesellschaft) organised under the laws of Switzerland,
having its corporate seat at Xxxxxxxxxxxx 000, XX-0000 Xxxxxxxxx,
Xxxxxxxxxxx, which is registered in the Commercial Register
(Handelsregister) of the Canton of Basel-Landschaft, under
registration number
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CH-280.3.916.120-1. The entire share capital of the Company consists
of 100 registered shares with a nominal value of CHF 500.00 each (the
EXISTING SHARES and together with any shares of the Company owned by
the Pledgor in the future, the SHARES).
(E) In consideration of the agreements set forth herein and in the
Terms and Conditions of Notes, the Agreement of Understanding and
the other Credit Documents, the Pledgor agrees to create a first
ranking pledge in respect of the pledged assets described herein in
favor of the Pledgee under the following terms (the AGREEMENT).
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the Parties hereto agree as follows:
1. INTERPRETATION
In this Agreement the following terms have the following meanings:
AGREEMENT has the meaning given to it in the Preamble.
CHF means the lawful currency of Switzerland.
COLLATERAL AGENCY AGREEMENT means the collateral agency agreement
dated on or about the date of this Agreement among the Pledgor, the
Subsidiary Guarantors, the Pledgee and the Noteholders party
thereto, as amended, modified or supplemented from time to time.
PLEDGE means the pledge of the Shares created or arising pursuant
to this Agreement.
SECURED OBLIGATIONS means all present and future actual and
contingent indebtedness, obligations and liabilities of the Pledgor
to the Pledgee which may arise under, out of, or in connection
with, the Collateral Agency Agreement, the Fiscal Agency Agreement,
the Notes, any other Credit Document to which the Pledgor is party.
SHARE CERTIFICATES means the share certificates evidencing the
Shares as set out in the Schedule 1 to this Agreement.
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Unless otherwise defined herein, defined terms shall bear the same
meanings ascribed to them in the Terms and Conditions of Notes, and
if not defined therein, the meaning ascribed to them under Swiss
law.
Where the context so admits, the singular includes the plural and
vice versa.
The headings in this Agreement are for convenience only and are to
be ignored in construing this Agreement.
Any reference in this Agreement to a defined document is a
reference to that defined document as amended, supplemented,
substituted or novated from time to time, in accordance with its
terms.
2. PLEDGE
2.1. As security for the Secured Obligations, the Pledgor hereby pledges, as
a first ranking pledge, in accordance with article 899 et seq. of the
Swiss Civil Code and the provisions set out below to the Pledgee,
acting in its capacity of joint and several creditor with the
Noteholders pursuant to Clause 2.1 of the Collateral Agency Agreement:
(a) the Shares; and
(b) all additional shares in Amcis from time to time acquired or
subscribed for by the Pledgor in any manner (including by
way of capital increases) and all aforesaid claims relating
thereto (all such additional shares hereinafter included
when referring to the Shares); and
(c) all present (whether or not due) and future rights
attributable to the Shares, including but not limited to all
purchase and subscription rights relating to the Shares, all
claims for repayment of share capital, payment of
compensation for redemption of shares, credit balances from
settlements and liquidation proceeds including the right to
the liquidation quota, as well as to any other rights and
benefits attributable to the Shares (all such rights
hereinafter included when referring to the Shares).
2.2. This Pledge shall not in any way be affected by any regrouping or
splitting of the Shares, and, as the case may be, the Future Shares, or
by any similar operation, and the securities resulting from any such
operation shall be part of the Shares, and, as the case may be, the
Future Shares.
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3. PERFECTION OF THE PLEDGE
3.1. The Pledge of the Shares shall be completed at the offices of
Xxxxxxxxxxxx Xxxxxxx, Xxxxxxxxxxxx 00, 0000 Xxxxxx, simultaneously
with the signing of this Agreement, whereby the Pledgor or the
Pledgor's duly authorized representative shall deliver to the Pledgee
the following documents:
(a) the Share Certificates, duly endorsed in blank, to the
Pledgee or the Pledgee's duly authorised representative;
(b) a certified true copy of the resolution of the board of
directors of Amcis acknowledging the pledging of the Shares
in favor of the Pledgee;
(c) a certified and true copy of the public deed containing the
resolution of an extraordinary shareholders' meeting of the
Company resolving on the deletion of all transfer
restrictions relating to the Shares in the Company's
articles of incorporation, with an attached copy of the
amended articles of incorporation as they are registered
with the Commercial register of the Canton of
Basel-Landschaft; and
(d) a copy of the share register of the Company evidencing the
existence of the pledge in favor of the Pledgee.
4. REPRESENTATIONS AND WARRANTIES
Without prejudice and in addition to the representations and
warranties of the Pledgor under the other Credit Documents to which
the Pledgor is party, the Pledgor represents and warrants to the
Pledgee as of the date hereof and undertakes during the subsistence
of this Agreement as follows:
4.1. it is the sole legal and beneficial owner of the Shares, free and
clear from any Lien except for Permitted Liens imposed by mandatory
operation of law; the Shares are validly issued and fully paid up;
4.2. it has full power, authority and legal right to pledge all of its
rights, title and interest in the Shares pursuant to this Agreement
and to perform its obligations hereunder; as a consequence, this
Agreement has been duly and validly executed and delivered by the
Pledgor and constitutes a legal, valid and binding obligation of
the Pledgor, enforceable against it in accordance with its terms;
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4.3. the Shares are free and clear of all Liens, except for Permitted
Liens imposed by mandatory operation of law; there is no cause for
suspension of the voting rights attached to the Shares; as of the
date hereof, none of the Shares is subject to any seizure or
enforcement measure;
4.4. no other certificates have been issued for the Shares than the
Share Certificates listed in Schedule 1;
4.5. the Shares are free and clear of all transfer restrictions under
the Company's Articles of Association, and are free and clear of
options, purchase or similar rights or claims or any other similar
interests in favor of any third party, except for Permitted Liens
imposed by mandatory operation of law. As a consequence, the
entering into, execution, delivery and performance by the Pledgor
of this Agreement does not require any consent of the Company or
any other Person (except for those consents which have been
obtained);
4.6. there are no silent partnership agreements or similar arrangements
by which a person is entitled to a participation in the profits or
revenue of the Company;
4.7. this Agreement creates a valid and enforceable Pledge over the
Shares in favour of the Pledgee under the laws of Switzerland which
pledge shall not be subject to any prior Lien (other than Permitted
Liens imposed by mandatory operation of law);
4.8. the entering into, execution, delivery and performance by the
Pledgor of this Pledge Agreement and the consummation by the
Pledgor of the transactions hereby contemplated will not conflict
with any law of Belgium as of the date hereof, or result in a
breach or default of the articles of association, by-laws,
regulations or other similar charter documents of the Pledgor, or a
breach of or default under any material agreement or other
instrument to which the Pledgor is a party or by which the Pledgor
may be bound.
4.9. the Pledgor is a corporation duly incorporated and validly existing
under the laws of its jurisdiction of incorporation and is not in
liquidation, with the power to enter into this Agreement and to
exercise its rights and perform its obligations hereunder and that
all corporate and other actions required to authorise the execution
and performance of this Agreement have been duly taken;
4.10. the Company is duly incorporated and validly existing as a stock
corporation (Aktiengesellschaft) under the laws of Switzerland, has
the power to own its assets
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and conduct its business as currently conducted, and has a share capital
of CHF 50,000, divided into 100 registered shares with a nominal
value of CHF 500 each, (all of which have been validly issued and)
are fully paid-in, and none of which is subject to any seizure or
enforcement measure as of the date hereof; and
4.11. Neither the Pledgor nor the Company is insolvent, nor subject to
any insolvency proceedings or in any other similar situation of
conflicting claims of creditors in a way, which could give these
creditors reasonable grounds for a claim against the Company or the
Pledgor. No resolutions have been taken, nor has any petition been
filed, to dissolve or liquidate any of the Pledgor or the Company,
nor has the Pledgor or the Company been declared bankrupt nor has a
suspension of payments been granted to either of the Pledgor or the
Company.
5. UNDERTAKINGS
5.1. The Pledgor undertakes to the Pledgee to the extent not already
effectuated by virtue of Clause 2.1(b) hereof, to pledge hereunder,
immediately upon its acquisition or subscription thereof, any and
all additional shares of stock or other securities of Amcis.
5.2. The Pledgor undertakes to the Pledgee that at any time and from
time to time it will promptly take all action or execute all such
documents (including assignments, transfers, charges, notices and
instructions) that the Pledgee may reasonably request upon the
written instructions of the Requisite Noteholders, in order to
perfect the security interest granted or purported to be granted
hereby or for the exercise of all rights, powers and remedies of
the Pledgee provided by or pursuant to this Agreement or by law
and/or to facilitate the realization of the Shares.
5.3. If so reasonably requested by the Pledgee upon the written
instructions of the Requisite Noteholders the Pledgor shall take
all such action as is available to it (including making all filings
and registrations) as may be necessary for the purpose of the
creation, perfection or maintenance of any security conferred or
intended to be conferred on the Pledgee by or pursuant to this
Agreement.
5.4. The Pledgor shall not:
(a) create or permit to arise any Lien on the Shares or any interest
in or part of the Shares (irrespective of whether ranking behind
the pledge created hereby), except for Permitted Liens imposed by
mandatory operation of law;
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(b) permit or resolve on the re-introduction of any transfer
restrictions relating to the Shares in the articles of
incorporation of the Company;
(c) not take any steps, including, without limitation, the exercise
of any right it has under any agreement pertaining to or in
relation with the Shares, which may jeopardise or adversely
affect the security interest constituted in this Agreement,
except as permitted in the Terms and Conditions of Notes; or
(d) sell or attempt to sell or otherwise dispose of the Shares or any
interest in or part of the Shares except in accordance with the
provisions of this Agreement and the Terms and Conditions of
Notes.
6. VOTING RIGHTS AND SUBSCRIPTION RIGHTS
6.1. So long as no Event of Default has occurred and is continuing, the
Pledgor shall be entitled to exercise any and all membership rights
pertaining to the Shares, including, without limitation, the right to
vote in the general meeting of Amcis in a manner (i) which does not
adversely affect the validity or enforceability of this Pledge, and
(ii) which does not cause an Event of Default to occur. In
particular, and unless agreed otherwise by the Requisite Noteholders,
the Pledgor shall cast its votes against any proposal for the
liquidation, merger or split-up of the Company, or against any
proposal which is liable to result in a dilution of the rights
attaching to the Shares.
6.2. Upon the occurrence of an Event of Default which is continuing, in
addition to all the rights and remedies of a secured party on default
under applicable law and subject to the Collateral Agency Agreement
and the Terms and Conditions of Notes, the Pledgor shall exercise the
membership rights conferred by the Shares, including, without
limitation, the right to vote in the general meeting of Amcis in
accordance with the instructions received from the Pledgee, which
instructions the Pledgee shall seek in due time.
6.3. The Pledgor shall forthwith give the Pledgee a copy of any convening
notice or agenda of general shareholders meetings of the Company and
inform the Pledgee about the exercise of the membership rights
pertaining to the Shares.
6.4 Unless agreed otherwise by the Pledgee and subject to the Terms and
Conditions of Notes, the Pledgor shall exercise all subscription
rights to which it may be entitled. The Pledgor shall cause shares
resulting form the exercise of any such right to be
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pledged to the Pledgee as collateral for the Secured Obligations, and
these shares shall be part of the Shares for the purpose of this
Agreement, and shall be delivered immediately to the Pledgee, endorsed
in blank, together with a copy of the updated share register of the
Company evidencing the existence of the pledge of those new Shares
in favor of the Pledgee.
7. DIVIDENDS
7.1. Subject at all times to the restrictions set forth in the Terms and
Conditions of Notes, any payment of dividends or other payments by
Amcis relating to the Shares and claims pledged under this Agreement
shall be made to the Pledgor, provided no Event of Default has
occurred which is continuing.
7.2. Upon the occurrence of an Event of Default which is continuing, any
payment of dividends or other payments by Amcis relating to the
Shares and claims pledged under this Agreement shall be made to the
Pledgee which shall apply the same towards the Secured Obligations as
provided under, and subject to the terms of, the Collateral Agency
Agreement.
7.3. Similarly, upon occurrence of an Event of Default that is continuing,
any and all:
(a) dividends and interest paid or payable other than in cash in
respect of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in
exchange for, the Shares;
(b) dividends and other distributions paid or payable in cash in
respect of the Shares in connection with a partial or total
liquidation or dissolution or in connection with a reduction
of capital, capital surplus or paid-in-surplus; and
(c) cash paid, payable or otherwise distributed in respect of
principal (nominal value/stated capital) of, or in
redemption of, or in exchange for, the Shares;
shall be exclusively made and/or paid to the Pledgee which shall
apply the same towards the Secured Obligations as provided under,
and subject to the terms of, the Collateral Agency Agreement.
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8. CONTINUING SECURITY AND OTHER MATTERS
8.1. Continuing Security
(a) This Pledge shall be a continuing security for the due
performance of the Secured Obligations, and shall remain in
force until expressly released in accordance with Clause 10 of
this Agreement.
(b) This Pledge shall not be discharged or in any way prejudiced or
affected by any change in the constitution or status of the
Pledgor or any other Person or by any legal limitation,
disability, incapacity or other circumstances relating to the
Pledgor or any other Person, by any invalidity, illegality or
unenforceability of the obligations of the Pledgor or any other
Person.
(c) The Pledgee or, as the case may be, Requisite Noteholders may
at any time without discharging or in any way affecting this
Pledge (a) grant the Pledgor or any Subsidiary Guarantor any
time or indulgence, (b) concur in any moratorium of the
Secured Obligations, (c) amend the terms and conditions of the
Secured Obligations in accordance with the provisions of the
Terms and Conditions of Notes and the applicable laws,
(d) abstain from taking or perfecting any other security and
discharge any other security, (e) abstain from exercising any
right or recourse or from proving or claiming any debt and
waive any right or recourse and (f) apply any payment received
from the Pledgor or for its account towards the Secured
Obligations or any other obligations of the Pledgor of the
Pledgee's choice.
8.2. Rights Additional
All the rights of the Pledgee hereunder shall be in addition to any
other right vested in the Pledgee and all such rights may be
exercised from time to time and as often as the Pledgee may deem
expedient. The Pledgor waives any right it may have of first
requiring the Pledgee to proceed against or claim payment from any
other party, or enforce any guarantee or security before enforcing
the Pledge.
8.3. Preservation of Security in Case of Transfer
Without prejudice to the scope of the Secured Obligations, the
Pledgor and the Pledgee agree that in the event of transfer of all
or any part of the Secured Obligations by way of assignment or
novation in accordance with the Credit Documents or in the event of
a change or replacement of the Pledgee or the Pledgor in accordance
with the Credit Documents, this Pledge will be maintained,
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automatically and without any further formality or consent, to
secure the Secured Obligations as assigned or novated in favour of
the Pledgee (or the new Pledgee, if any). To the extent that any
such further formality or consent on the part of Pledgor or of the
Company will, nevertheless, be required, Pledgor hereby undertakes
to perform, and to have the Company perform, any such formality or
consent without delay upon the Pledgee's request.
9. ENFORCEMENT
9.1. At any time after the occurrence of an Event of Default which is
continuing, the pledge created hereunder shall become immediately
enforceable and the Pledgee shall in particular have the right,
subject to the Collateral Agency Agreement and to the Terms and
Conditions of Notes, to:
(a) enforce the Pledge in respect of any or all of the Shares, in
accordance with applicable legal provisions and as set forth
in this Agreement; and
(b) apply any payments which may be received or receivable by the
Pledgee in respect of the Shares to satisfaction of the
Secured Obligations and as provided in the Collateral Agency
Agreement; and
(c) exercise all rights and remedies it possesses, and to act
generally in relation to the Shares in such manner as it shall
determine within the limit of the applicable law and its
rights under this Agreement.
9.2. When exercising its right to enforce the Pledge after the
occurrence of an Event of Default which is continuing, the Pledgee
shall be entitled, at its discretion,
(a) to sell all or part of the Shares either through public
auction (offentliche Versteigerung) or in a private sale
(Selbstverkaufsrecht), without regard to the procedures and
formalities provided for in the Swiss Federal Act Debt
Collection and Bankruptcy of 1889, as amended, and without any
notice thereof to the Pledgor other than a notice intending to
inform the Pledgor that a sale of the Shares will take place,
this notice being sent in accordance with Clause 14.6 of this
Agreement to the Pledgor no later than 10 (ten) Business Days
prior to such sale; or
(b) notwithstanding the foregoing and the provisions of Art. 41 of
the Swiss Federal Law on the Recovery of Debts and Bankruptcy
or any other applicable law, to institute and pursue the
ordinary procedure for recovery of
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debt without having first to dispose of the Shares or to
institute statutory proceedings for the realization thereof.
9.3. The Pledgee has the right to acquire for itself all or any part of
the Shares in any such public auction or private sale
(Selbsteintrittsrecht). In case of an acquisition of the Shares by
the Pledgee in a private sale, such sale has to be at arm's length,
i.e. at the real value (the REAL VALUE (wirklicher Xxxx)) of the
acquired Shares. If the Pledgor and the Pledgee do not reach an
agreement on the Real Value within 30 calendar days following the
Pledgee's corresponding offer, the Real Value shall be determined by
an independent expert to be mutually appointed by the Parties. The
expert's determination of the Real Value shall be final
(Schiedsgutachten). If the parties cannot, within 60 days following
the Pledgee's offer, agree on the expert to be appointed, the
independent expert shall be appointed by the president of the
"Treuhand-Xxxxxx", Zurich, Switzerland.
9.4. In view of a realization of the Pledge in accordance with the terms
and conditions set forth above, the Pledgor, being the sole owner
and holder of the Shares, hereby expressly declares its approval of
the assignment and transfer of the Shares being subject to such
realization to the acquirer of such Shares. The Pledgor further
agrees that the respective acquirer will hold the Shares following
their assignment and transfer and Pledgor will see for it that such
acquirer will without any delay be entered in the Company's share
register as the owner of the Shares.
9.5. The proceeds from the realization of the Pledge shall be applied to
towards the Secured Obligations, including any costs and expenses
of the Pledgee, in accordance with the Collateral Agency Agreement,
but without prejudice to the rights of the Pledgee to recover any
shortfall from the Pledgor.
10. DURATION AND RELEASE
10.1. This Agreement shall remain in full force and effect until the
earlier of (a) the date upon which all Secured Obligations have
been irrevocably paid and discharged in full; and (b) the date
notified by the Pledgee to the Pledgor. The Pledge shall not cease
to exist if any payments made in satisfaction of the Secured
Obligations have only temporarily discharged the Secured
Obligations.
10.2. This Pledge is in addition to any existing or future collateral,
guarantee or other security held by the Pledgee.
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10.3. This Pledge shall be discharged by, and only by, the express
release thereof granted by the Pledgee.
10.4. The Pledgee shall, in accordance with the Collateral Agency
Agreement, grant an express release of this Pledge without delay
upon demand of the Pledgor, as soon as all Secured Obligations
shall have been fully and finally discharged.
10.5. Any release or discharge of the Pledge shall be null and void and
without effect if any payment received by the Pledgee and applied
towards satisfaction of all or part of the Secured Obligations
(a) is avoided or declared invalid as against the creditors of the
maker of such payment; or
(b) becomes repayable by the Pledgee to a third party; or
(c) proves not to have been effectively received by the Pledgee;
and the Pledgee shall be entitled to enforce the Pledge as if such
release or discharge had not occurred.
11. DUTIES OF THE PLEDGEE
The Pledgee shall not be liable for any acts or omissions with respect
to the Shares or the enforcement or the losses arising in connection
with the exercise of any of its rights, powers and discretions
hereunder, save for liabilities and expenses arising from the gross
negligence or willful misconduct of the Pledgee. The Pledgee shall
not be under any obligation to the Pledgor to take any steps
necessary to preserve any rights in the Shares against any other
parties but may do so at its option, and all expenses reasonably
incurred in connection therewith shall be for the account of the
Pledgor and shall be part of the Secured Obligations. If any such
expenses are borne by the Pledgee, the Pledgor shall on first demand
reimburse the Pledgee therefor, and its reimbursement obligation
shall be part of the Secured Obligations.
12. EXPENSES AND COSTS
All expenses that the Pledgee may incur in connection with (i) the
administration of this Agreement as further provided in the
Collateral Agency Agreement, (ii) the custody or preservation of,
or the sale of, collection from, or other realization upon, any of
the Shares, (iii) the exercise or enforcement of any of the rights
of the
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Pledgee hereunder, or (iv) the failure by the Pledgor to perform or
observe any of the provisions hereof, shall be borne by the Pledgor. All
other expenses and duties reasonably incurred in connection with this
Agreement, in particular with regard to the establishment and
perfection of the Pledge, its enforcement and the granting of any
release, shall be borne by the Pledgor. The Pledgor shall on first
demand reimburse the Pledgee for any such expenses or duties paid by
it, and the same shall be part of the Secured Obligations.
13. TAXES
The Pledgor shall pay, promptly on demand of the Pledgee all stamp,
registration, notarial and other similar Taxes or fees paid or
payable by the Pledgee in connection with any action taken or
contemplated by or on behalf of the Pledgee for perfecting,
enforcing, releasing, canceling, reassigning or resolving any doubt
concerning, or for any other purpose in relation to this Agreement,
any amendment thereto, any transfer and/or assignment of the rights
and/or obligations under the same or the Security created or
intended to be created in respect of the Share and shall, from time
to time, indemnify the Pledgee promptly on demand against any
liabilities, costs, claims and expenses resulting from any failure
to pay by the Pledgor or any delay by Pledgor in paying any such
Taxes or fees.
14. MISCELLANEOUS
14.1. During the continuation of this Agreement, so long as no Event of
Default has occurred and is continuing, the Pledgee will not
declare itself to be the beneficial owner of the Shares or any
additional pledged shares and the Pledgee may disclose and deliver
a copy of the present Agreement to any tax or other authority, if
asked to do so.
14.2. If any of the provisions of this Agreement should be or become
invalid, unenforceable or impractical in whole or in part, the
validity of the other provisions hereof shall not be affected. In
that case the invalid, unenforceable or impractical provision is
deemed to be replaced by such valid and enforceable provision or
arrangement, which corresponds as closely as possible to the invalid,
unenforceable or impractical provision and to the parties' economic
aims pursued by and reflected in this Agreement. The same applies in
the event that this Agreement does not contain a provision which it
needs to contain in order to achieve the economic purpose as
expressed herein (Regelungslucke).
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14.3. Notwithstanding any provision to the contrary contained herein, the
parties hereto agree that this Agreement is subject in all respects
to the terms of the Collateral Agency Agreement and for the
avoidance of doubt, in the event of any inconsistency, the
provisions of the Collateral Agency Agreement shall prevail.
14.4. No modification or amendment of this Agreement shall be binding
upon any party hereto unless such modification or amendment shall
be in writing and signed a duly authorized officer of the Pledgee
and the Pledgor.
14.5. No failure or delay by a party hereto in exercising any right,
power or privilege under this Agreement shall operate as a waiver
thereof nor shall any single or partial exercise of any right,
power or privilege preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.
All the rights of the Pledgee hereunder shall be in addition to any
other right vested in the Pledgee and all such rights may be
exercised from time to time and as often as the Pledgee may deem
expedient. The Pledgor waives any right it may have of first
requiring the Pledgee to proceed against or claim payment from any
other party, or enforce any guarantee or security before enforcing
the Pledge.
14.6. All communications to be made hereunder shall be made in writing to
the following addresses:
If made to the Pledgor: Solutia Europe XX/XX
Xxxxxxxxxx Xxxxxxxx 0
X-0000 Xxxxxxxx
Xxxxxxx
Parc Scientifique-Xxxxxxx
rue Laid Burniat 3
X-0000 Xxxxxxx-xx-Xxxxx
Xxxxxxx
Att.: For the Attention of
Legal Department
Fax: x00 (0)0 000 0000
If made to the Pledgee: KBC Bank NV
Xxxxxxxxx 00
X-0000 Xxxxxxxx
Xxxxxxx
Att.: Xx Xxxx Xx Xxxxxx
Fax: x00 (0)0 000 0000
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14.7. Any communication or document made or delivered by one Person to
another under or in connection with this Agreement shall only be
effective:
(a) by way of fax, when received in legible form;
(b) if by way of letter, when it has been left at the relevant
address with acknowledgement of receipt or when it has been
delivered to the addressee by registered mail;
(c) and, if a particular department or officer is specified as
part of its address details provided under Clause 14.6, if
addressed to that department or officer.
14.8. This Agreement shall become effective on 11 February 2004.
15. GOVERNING LAW
This Agreement shall be governed by, and construed in accordance
with, the domestic substantive laws of Switzerland.
16. JURISDICTION
Any and all disputes arising out of or in connection with this
Agreement including but not limited to matters of validity,
conclusion, binding effect, interpretation, construction,
performance or non-performance and remedies shall be subject to the
non-exclusive jurisdiction of the Commercial Court (Handelsgericht)
of the Canton of Zurich, Switzerland, venue being Zurich 1. If
there is no ordinary place of foreclosure in Switzerland according
to the Federal Statute on Debt Collection and Bankruptcy (SchKG),
the place of foreclosure (Betreibungsort) shall be Zurich 1, which
shall be the place of performance for obligations arising under
this Agreement.
17. DELEGATION OF POWERS
The Pledgee shall be entitled, at any time and as often as may be
expedient, to delegate all or any of the powers and discretion
vested in it by, this Agreement in such manner, upon such terms and
to such Person as the Pledgee in its absolute discretion may think
fit.
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18. BENEFIT OF THIS AGREEMENT
This Agreement shall be binding on, and inure for the benefit of,
the Pledgor, the Pledgee and their respective successors and
assigns. The expressions Pledgee and Pledgor include their
respective successors, and, in the case of the Pledgee, its nominee
or such other Person as may from time to time be appointed
Collateral Agent.
19. ASSIGNMENT
The Pledgee shall be entitled to assign or otherwise transfer any
and all of its rights and duties under this Agreement to third
parties. The Pledgor may not assign or transfer any of its rights
or obligations under this Agreement, save prior agreement in
writing of the Pledgee.
20. EVIDENCE OF THE SECURED OBLIGATIONS OWING BY THE PLEDGOR
A certificate by the Pledgee as to the amount and the terms and
conditions of the Secured Obligations owing to the Pledgee from the
Pledgor is, prima facie evidence of the matters to which it
relates.
21. ENGLISH LANGUAGE
This Agreement is executed in English only, and no translation
thereof shall be binding on the parties hereto or consulted in
order to interpret this Agreement. Without prejudice to any other
procedural rule applicable to any dispute, any notice or other
communication under or in connection with this Agreement shall be
in the English language or, if in any other language, accompanied
by a translation into English. In the event of any conflict between
the English text and the text in any other language, the English
text shall prevail except that where a German translation of a
legal term appears in such text, the German translation shall
prevail.
22. RESPONSIBILITY OF THE PLEDGEE
22.1. The Pledgee shall not be responsible to any Noteholder for:
(a) the adequacy, accuracy or completeness of any recitals,
statements, representations or warranties contained in any
Subsidiary Guaranty or Collateral Document;
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(b) the adequacy, accuracy or completeness of any statement or
information (whether written or oral) made in or supplied in
connection with any Subsidiary Guaranty or Collateral Document; or
(c) the legality, validity, effectiveness, adequacy or
enforceability of any Subsidiary Guaranty or Collateral
Document (including but not limited to validity of the
Floating Charge Agreement (overeenkomst pand op
handelszaak/contrat xx xxxx sur fonds de commerce) between the
Issuer and the Pledgee).
22.2. Each Noteholder is responsible to make, and to continue to make,
its own independent appraisal of all risks arising under or in
connection with the Notes, the Subsidiary Guaranties and the
Collateral Documents (including but not limited to the financial
condition and affairs of the Issuer and the Subsidiary Guarantors,
the nature and extent of any recourse against any party or its
assets or the legality, validity, effectiveness, adequacy or
enforceability of any Subsidiary Guaranty or Collateral Document).
11 February 2004
Executed by:
SOLUTIA EUROPE SA/NV, AS PLEDGOR
/s/ Xxxxxxx Xxxxxxxx
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Attorney
.................................
KBC BANK NV, AS PLEDGEE
/s/ Xxxx Xx Xxxxxx
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Head Operations and Accounting
.................................
