Fiscal Agency Agreement

EXHIBIT 10(l)
EXECUTION COPY


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FISCAL AGENCY AGREEMENT


AMONG


CABOT FINANCE B.V.
AS ISSUER


AND


CABOT CORPORATION
AS GUARANTOR


AND


U.S. BANK TRUST
NATIONAL ASSOCIATION
AS FISCAL AGENT


5.25% NOTES DUE SEPTEMBER 1, 2013


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Dated as of September 24, 2003


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TABLE OF CONTENTS


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ARTICLE ONE


DEFINITIONS


Section 1.01. Definitions.......................................................................................... 1 Section 1.02. Other Definitions.................................................................................... 4 Section 1.03. Rules of Construction................................................................................ 5


ARTICLE TWO


THE SECURITIES


Section 2.01. Form and Dating...................................................................................... 5 Section 2.02. Execution and Authentication......................................................................... 7 Section 2.03. Fiscal Agent, Registrar and Paying Agent............................................................. 8 Section 2.04. Paying Agent to Hold Money in Trust.................................................................. 8 Section 2.05. Holder Lists......................................................................................... 9 Section 2.06. Transfer and Exchange................................................................................ 9 Section 2.07. Replacement Securities............................................................................... 15 Section 2.08. Outstanding Securities............................................................................... 15 Section 2.09. Treasury Securities.................................................................................. 16 Section 2.10. Temporary Securities................................................................................. 16 Section 2.11. Cancellation......................................................................................... 16 Section 2.12. Defaulted Interest................................................................................... 16 Section 2.13. Persons Deemed Owners................................................................................ 17 Section 2.14. CUSIP Numbers........................................................................................ 17 Section 2.15. Issuance of Additional Securities.................................................................... 17 Section 2.16. Legal Holidays....................................................................................... 18


ARTICLE THREE


REDEMPTION


Section 3.01. Notice to Fiscal Agent of Election to Redeem......................................................... 18 Section 3.02. Selection of Securities to be Redeemed............................................................... 18 Section 3.03. Notice of Redemption................................................................................. 19 Section 3.04. Payment of Securities Called for Redemption.......................................................... 19 Section 3.05. Exclusion of Certain Securities from Eligibility for Selection for Redemption........................ 20 Section 3.06. Optional Redemption.................................................................................. 20 Section 3.07. Optional Redemption Due to Changes in Tax Treatment.................................................. 22


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ARTICLE FOUR


COVENANTS


Section 4.01. Certain Definitions.................................................................................. 23 Section 4.02. Payment of Securities................................................................................ 24 Section 4.03. Limitation on Liens.................................................................................. 28 Section 4.04. Limitation on Sale and Leaseback..................................................................... 29 Section 4.05. Limitation on Sale or Transfer of Restricted Property................................................ 29 Section 4.06. No Lien Created...................................................................................... 30 Section 4.07. Compliance Certificate............................................................................... 30 Section 4.08. SEC Reports.......................................................................................... 30


ARTICLE FIVE


SUCCESSOR COMPANY OR GUARANTOR


Section 5.01. When the Company or the Guarantor May Merge, etc..................................................... 31 Section 5.02. When Securities Must Be Secured...................................................................... 31


ARTICLE SIX


DEFAULTS AND REMEDIES


Section 6.01. Events of Default.................................................................................... 32 Section 6.02. Acceleration......................................................................................... 33 Section 6.03. Other Remedies....................................................................................... 33 Section 6.04. Waiver of Past Defaults.............................................................................. 33 Section 6.05. Control by Majority.................................................................................. 34 Section 6.06. Limitation on Suits.................................................................................. 34 Section 6.07. Rights of Holders to Receive Payment................................................................. 34 Section 6.08. Collection Suit by Fiscal Agent...................................................................... 35 Section 6.09. Fiscal Agent May File Proofs of Claim................................................................ 35 Section 6.10. Priorities........................................................................................... 35 Section 6.11. Undertaking for Costs................................................................................ 35 Section 6.12. Notice to Holders by Fiscal Agent.................................................................... 35


ARTICLE SEVEN


FISCAL AGENT


Section 7.01. Duties of Fiscal Agent............................................................................... 36 Section 7.02. Rights of Fiscal Agent............................................................................... 37 Section 7.03. Individual Rights of Fiscal Agent.................................................................... 37 Section 7.04. Fiscal Agent's Disclaimer............................................................................ 37 Section 7.05. Compensation and Indemnity........................................................................... 37


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---- Section 7.06. Replacement of Fiscal Agent.......................................................................... 38 Section 7.07. Successor Fiscal Agent by Merger, etc................................................................ 39


ARTICLE EIGHT


DEFEASANCE AND DISCHARGE


Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance............................................. 39 Section 8.02. Legal Defeasance..................................................................................... 39 Section 8.03. Covenant Defeasance.................................................................................. 40 Section 8.04. Conditions to Legal or Covenant Defeasance........................................................... 40 Section 8.05. Discharge............................................................................................ 41 Section 8.06. Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions........ 42 Section 8.07. Repayment to Company................................................................................. 42 Section 8.08. Reinstatement........................................................................................ 43


ARTICLE NINE


AMENDMENTS, SUPPLEMENTS AND WAIVERS


Section 9.01. Without Consent of Holders........................................................................... 43 Section 9.02. With Consent of Holders.............................................................................. 44 Section 9.03. Revocation and Effect of Consents.................................................................... 45 Section 9.04. Notation on or Exchange of Securities................................................................ 45 Section 9.05. Fiscal Agent to Sign Amendments, etc................................................................. 45


ARTICLE TEN


GUARANTEE


Section 10.01. Guarantee........................................................................................... 45 Section 10.02. No Subrogation...................................................................................... 47 Section 10.03. Assumption by the Guarantor......................................................................... 47


ARTICLE ELEVEN


MISCELLANEOUS


Section 11.01. Notices............................................................................................. 47 Section 11.02. Certificate and Opinion as to Conditions Precedent.................................................. 48 Section 11.03. Statements Required in Certificate or Opinion....................................................... 48 Section 11.04. Rules by Fiscal Agent, Paying Agent, Registrar...................................................... 49 Section 11.05. Governing Law....................................................................................... 49 Section 11.06. No Recourse Against Others.......................................................................... 49 Section 11.07. Successors.......................................................................................... 49


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---- Section 11.08. Execution in Counterparts........................................................................... 49


SIGNATURES........................................................................................................... 53 EXHIBIT A -- FORM OF SECURITY EXHIBIT B -- FORM OF CERTIFICATE OF TRANSFER EXHIBIT C -- FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR


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FISCAL AGENCY AGREEMENT dated as of September 24, 2003 (the "Agreement"), among CABOT FINANCE B.V., a private company with limited liability organized under the laws of the Netherlands (the "Company"), CABOT CORPORATION, a Delaware corporation (the "Guarantor"), and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association, as fiscal agent (the "Fiscal Agent").


Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company's Securities:


ARTICLE ONE


DEFINITIONS


Section 1.01. Definitions.


"Additional Securities" means 5.25% Notes due September 1, 2013 of the Company issued under this Agreement after the Issuance Date in accordance with Sections 2.02 and 2.15 hereof, and having identical terms and conditions to the Securities.


"Affiliate" means any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Guarantor.


"Agent" means any Registrar or Paying Agent. See Section 2.03.


"Agreement" means this Fiscal Agency Agreement as amended or supplemented from time to time.


"Applicable Procedures" means, with respect to any transfer or exchange of or for beneficial interests in any Global Security, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.


"Board of Directors" means the Management Board of the Company or any committee of the Management Board duly authorized to act for it hereunder.


"Board Resolution" means a resolution of the Board of Directors, which may be evidenced by a certificate of the Secretary or an Assistant Secretary of the Company stating that such resolution has been duly adopted by the Board of Directors and in is full force and effect.


"Company" means the party named as such in this Agreement until a successor replaces it pursuant to this Agreement and thereafter means the successor.


"Default" means any event which is, or after notice or passage of time or both would be, an Event of Default.


"Depositary" shall mean, with respect to the Securities issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depositary by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if


at any time there is more than one such person, "Depositary" as used with respect to the Securities shall mean the Depositary.


"Distribution Compliance Period" shall mean, the period that begins on the closing of any offering of Securities (including any Additional Securities) and ends 40 days later.


"Exchange Act" means the Securities Exchange Act of 1934, as amended.


"Fiscal Agent" means the party named as such in this Agreement until a successor replaces it pursuant to this Agreement and thereafter means the successor.


"Global Security" or "Global Securities" means a Security or Securities, as the case may be, in the form prescribed in Section 2.01 of this Agreement evidencing all or part of the Securities, issued to the Depositary or its nominee, and registered in the name of such Depositary or nominee.


"guarantee" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for purposes of assuring in any other manner the obligee of such indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term "guarantee" will not include endorsements for collection or deposit in the ordinary course of business. The term "guarantee" used as a verb has a corresponding meaning.


"Guarantee" means the guarantee of payment of the Securities by the Guarantor pursuant to the terms of this Agreement.


"Guarantor" means the party named as such in this Agreement until a successor replaces it pursuant to this Agreement and thereafter means the successor.


"Holder" or "Securityholder" or "Holder of Securities" or "Noteholder" means a person in whose name a Security is registered on the Registrar's books.


"Indirect Participant" means a Person who holds a beneficial interest in a Global Security through a Participant.


"Institutional Accredited Investor" means an institution that is an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, that is not also a Qualified Institutional Buyer.


"Issuance Date" means September 24, 2003.


"Officer" means the Chairman of the Board of Directors, the President, any Vice President, the Treasurer, the Secretary or the Controller of the Company.


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"Officers' Certificate" means a certificate signed by two Officers or by an Officer and an Assistant Treasurer, Assistant Secretary or Assistant Controller of the Company.


"Opinion of Counsel" means a written opinion from legal counsel who may be an employee of or counsel to the Company, or who may be other counsel reasonably satisfactory to the Fiscal Agent.


"Participant" means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).


"Person" means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.


"Place of Payment" means, when used with respect to Securities, the place or places where the principal of, interest, if any, or Additional Amounts, if any, on the Securities are payable.


"Qualified Institutional Buyer" means a "qualified institutional buyer" as defined in Rule 144A.


"Responsible Officer" means any officer in the Corporate Trust Division of the Fiscal Agent or any other officer of the Fiscal Agent assigned by the Fiscal Agent to administer its corporate trust matters.


"Rule 144" means Rule 144 promulgated under the Securities Act.


"Rule 144A" means Rule 144A promulgated under the Securities Act.


"Rule 903" means Rule 903 promulgated under the Securities Act.


"Rule 904" means Rule 904 promulgated the Securities Act.


"SEC" means the Securities and Exchange Commission.


"Securities" means the 5.25% Notes due September 1, 2013 of the Company (including, without limitation, any Additional Securities) issued under this Agreement.


"Securities Act" means the Securities Act of 1933, as amended from time to time.


"Securities Custodian" means the Fiscal Agent, as custodian with respect to the Securities in global form, or any successor entity thereto.


"U.S. Government Obligations" means direct obligations of the United States for the payment of which the full faith and credit of the United States is pledged.


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Section 1.02. Other Definitions.


TERM DEFINED IN SECTION - ---- ------------------ "Additional Amounts".................................................................. 4.02 "Additional Taxing Jurisdiction"...................................................... 4.02 "Adjusted Treasury Rate".............................................................. 3.06 "Attributable Debt"................................................................... 4.01 "Bankruptcy Law"...................................................................... 6.01 "Cash Equivalents".................................................................... 8.04 "Change in Tax Law"................................................................... 3.07 "Comparable Treasury Issue"........................................................... 3.06 "Comparable Treasury Price"........................................................... 3.06 "Consolidated Net Tangible Assets".................................................... 4.01 "Covenant Defeasance"................................................................. 8.03 "Custodian"........................................................................... 6.01 "Debt"................................................................................ 4.01 "Definitive Securities"............................................................... 2.01 "Directive"........................................................................... 4.02 "Discharge"........................................................................... 8.05 "DTC"................................................................................. 2.01 "DTC Participants".................................................................... 2.01 "Exempted Debt"....................................................................... 4.01 "Existing Lien"....................................................................... 4.03 "Event of Default".................................................................... 6.01 "IAI Global Security"................................................................. 2.01 "Independent Investment Banker"....................................................... 3.06 "Legal Defeasance".................................................................... 8.02 "Legal Holiday"....................................................................... 12.06 "Lien"................................................................................ 4.01 "Long-Term Debt"...................................................................... 4.01 "Notice of Default"................................................................... 6.01 "Obligations"......................................................................... 11.01 "Outstanding Securities............................................................... 3.02 "144A Global Security"................................................................ 2.01 "Paying Agent"........................................................................ 2.03 "Payor"............................................................................... 4.02 "Principal Property".................................................................. 4.01 "Private Placement Legend"............................................................ 2.06 "Reference Treasury Dealer"........................................................... 3.06 "Reference Treasury Dealer Quotations"................................................ 3.06 "Register"............................................................................ 2.03 "Registrar"........................................................................... 2.03 "Regulation S Global Security"........................................................ 2.01 "Relevant Taxing Jurisdiction"........................................................ 4.02 "Remaining Life"...................................................................... 3.06 "Restricted Property"................................................................. 4.01


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TERM DEFINED IN SECTION - ---- ------------------ "Restricted Subsidiary"............................................................... 4.01 "Sale-Leaseback Transaction".......................................................... 4.01 "Subsidiary".......................................................................... 4.01 "Tax Redemption Date"................................................................. 3.07 "Taxes"............................................................................... 4.02 "United States"....................................................................... 4.01


All other terms used in this Agreement that are defined by SEC rule have the meanings assigned to them.


Section 1.03. Rules of Construction.


Unless the context otherwise requires:


(1) a term has the meaning assigned to it;


(2) an accounting term, not otherwise defined, has the meaning
assigned to it in accordance with generally accepted accounting
principles; ...