================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 10)
------------------------------
DEXTER CORPORATION
(Name of Issuer)
COMMON STOCK, $1.00 PAR VALUE PER SHARE 252165105
(Title of class of securities) (CUSIP number)
RICHARD A. WEINBERG, ESQ.
C/O ISP MANAGEMENT COMPANY, INC.
1361 ALPS ROAD
WAYNE, NEW JERSEY 07470
(973) 628-4000
(Name, address and telephone number of person authorized
to receive notices and communications)
WITH A COPY TO:
STEPHEN E. JACOBS, ESQ.
WEIL, GOTSHAL & MANGES LLP
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153-0119
(212) 310-8000
APRIL 20, 2000
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act. (However, see the
Notes.)
(Continued on following pages)
(Page 1 of 7 Pages)
NY2:\903915\02\JDGR02!.DOC\54104.0016
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<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 252165105 13D Page 2 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON ISP OPCO HOLDINGS INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------------ ------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
3 SEC USE ONLY
- ---------------------- ------------------------------------------------------------------------------------ ------------------
4 SOURCE OF FUNDS: OO
- ---------------------- ------------------------------------------------------------------------------------ ------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- ------------------------------------------------------------------------ ------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 2,299,200
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,299,200
- ---------------------- ------------------------------------------------------------------------ ------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
2,299,200
- ---------------------- ------------------------------------------------------------------------ ------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ------------------------------------------------------------------------ ------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.97%
- ---------------------- ------------------------------------------------------------------------ ------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- ------------------------------------------------------------------------ ------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP No. 252165105 13D Page 3 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON ISP INVESTMENTS INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------------ ------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
3 SEC USE ONLY
- ---------------------- ------------------------------------------------------------------------------------ ------------------
4 SOURCE OF FUNDS: WC, OO
- ---------------------- ------------------------------------------------------------------------------------ ------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- ------------------------------------------------------------------------ ------------------------------
NUMBER OF 7 SOLE VOTING POWER: 2,299,200
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 2,299,200
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------- ------------------------------------------------------------------------ ------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
2,299,200
- ---------------------- ------------------------------------------------------------------------ ------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ------------------------------------------------------------------------ ------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.97%
- ---------------------- ------------------------------------------------------------------------ ------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- ------------------------------------------------------------------------ ------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP No. 252165105 13D Page 4 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON INTERNATIONAL SPECIALTY
S.S. OR I.R.S. IDENTIFICATION NO. PRODUCTS INC.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------------ ------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
3 SEC USE ONLY
- ---------------------- ------------------------------------------------------------------------------------ ------------------
4 SOURCE OF FUNDS: OO
- ---------------------- ------------------------------------------------------------------------------------ ------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- ------------------------------------------------------------------------ ------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 2,299,200
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,299,200
- ---------------------- ------------------------------------------------------------------------ ------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
2,299,200
- ---------------------- ------------------------------------------------------------------------ ------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ------------------------------------------------------------------------ ------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.97%
- ---------------------- ------------------------------------------------------------------------ ------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- ------------------------------------------------------------------------ ------------------------------
</TABLE>
<PAGE>
This Amendment No. 10 ("Amendment No. 10") amends the
Statement on Schedule 13D (the "Schedule 13D") filed on April 22, 1999, as
amended by Amendment No. 1 filed on August 11, 1999, Amendment No. 2 filed on
September 8, 1999, Amendment No. 3 filed on September 27, 1999, Amendment No. 4
filed on December 14, 1999, Amendment No. 5 filed on December 16, 1999,
Amendment No. 6 filed on January 27, 2000, Amendment No. 7 filed on February 11,
2000, Amendment No. 8 filed on February 24, 2000, and Amendment No. 9 filed on
March 23, 2000, by and on behalf of ISP Opco Holdings Inc. ("ISP Opco"), ISP
Investments Inc. ("ISP Investments") and International Specialty Products Inc.
("ISP" and together with ISP Investments and ISP Opco, the "Reporting Persons")
with respect to their ownership of common stock, par value $1.00 per share (the
"Common Stock"), of Dexter Corporation (the "Company"). Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the Schedule
13D, as amended.
ITEM 4. PURPOSE OF THE TRANSACTION
On April 20, 2000, in response to a request for final bids
from the Company's financial advisor, Lehman Brothers Inc. ("Lehman"), ISP
submitted a written proposal to Lehman (the "Bid Letter") to acquire all of the
outstanding Common Stock of the Company for a price per share of $50 plus one
Contingent Value Right (as defined in the Bid Letter). ISP's proposal is subject
to the execution of a definitive merger agreement. For a complete description of
the terms of ISP's proposal, please see the Bid Letter, a copy of which is
attached hereto as Exhibit 1.
On April 20, 2000, ISP Opco entered into a letter agreement
(the "Commitment Letter Amendment") with The Chase Manhattan Bank and Chase
Securities Inc. (collectively, "Chase") that amends certain provisions of the
Commitment Letter, dated March 23, 2000, among ISP Opco and Chase to allow for
the issuance by ISP of the Contingent Value Rights as part of the proposed
acquisition of the Company. A copy of the Commitment Letter Amendment is
attached hereto as Exhibit 2.
While Chase Securities Inc., ISP's financial advisor, has
offered to meet with Lehman to discuss ISP's proposal, no meetings have been
held as of the time of this filing. Lehman has advised Chase Securities Inc.
that the Company has scheduled a Board meeting for 2:00 p.m. on April 24, 2000,
after which ISP would receive a response if appropriate.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit No. 1: Bid Letter.
Exhibit No. 2: Commitment Letter Amendment.
[The remainder of this page intentionally left blank.]
5
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of their knowledge
and belief, the undersigned certify that the information set forth in this
Statement is true, complete and correct.
Dated: April 20, 2000
ISP OPCO HOLDINGS INC.
ISP INVESTMENTS INC.
INTERNATIONAL SPECIALTY PRODUCTS INC.
By: /s/ Susan B. Yoss
-------------------------------------
Susan B. Yoss
Senior Vice President and Treasurer
6
<PAGE>
EXHIBIT INDEX
Exhibit No. Document Page No.
- ---------- -------- -------
1 Bid Letter.
2 Commitment Letter Amendment.
7
Exhibit 1
[LETTERHEAD OF INTERNATIONAL SPECIALTY PRODUCTS]
April 20, 2000
BY HAND AND TELEFAX
Lehman Brothers Inc.
3 World Financial Center, 18th Floor
New York, New York 10285
Attention: Mr. Gary J. Posternack
Re: Dexter Corporation
Dear Gary:
International Specialty Products Inc. ("ISP") is pleased to
submit the following proposal to acquire Dexter Corporation ("Dexter"), upon the
terms and subject to the conditions set forth in this letter. This letter,
together with ISP's enclosed comments to the draft merger agreement prepared by
Skadden, Arps, Slate, Meagher & Flom LLP (the "Merger Agreement"), shall
constitute ISP's proposal (the "Proposal").
The basic terms of the Proposal are as follows:
Price and Form of Consideration
- -------------------------------
For each issued and outstanding share of common stock of
Dexter, ISP will (a) pay $50 per share in cash and (b) issue one Contingent
Value Right ("CVR"), having the terms set forth on the Term Sheet attached to
this letter.
The CVRs are intended to allow Dexter shareholders to
participate in the proceeds from a sale by ISP of Dexter's shares of Life
Technologies, Inc. at a price in excess of $50 per share. Chase Securities Inc.
has advised us that the CVRs would be a source of significant value for Dexter
shareholders. We encourage you to call Federico Mennella of Chase Securities
Inc., at 212-270-1690, if you have any questions or need any assistance in your
valuation of the CVRs.
Financing
- ---------
ISP has received a commitment from The Chase Manhattan Bank
("Chase") to provide senior credit facilities in the aggregate amount of
$1,825,000,000 to finance the acquisition of Dexter, refinance certain existing
indebtedness of ISP's subsidiaries, Dexter and its subsidiaries, and to provide
working capital for the combined companies following the acquisition. A copy of
<PAGE>
Mr. Gary J. Posternack
Lehman Brothers
April 20, 2000
Page 2
the commitment letter from Chase, as amended, is enclosed. If you have any
questions regarding the financing, please call Christopher Iannaccone of Chase,
at 212-270-9802.
Merger Agreement
- ----------------
We submit with this letter our comments to the Merger
Agreement. Our Proposal contemplates that Dexter will continue to hold
approximately 75% of the outstanding shares of Life Technologies. ISP does not
propose to enter into a separate merger agreement with respect to Life
Technologies.
Due Diligence
- -------------
ISP's Proposal is not conditioned on further due diligence.
Contacts
- --------
Questions regarding the Proposal or the Merger Agreement
should be addressed to:
Stephen E. Jacobs, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153-0119
Office Telephone: 212-310-8320
Office Facsimile: 212-735-4777
Home Telephone: 212-628-2489
914-273-2507
Conditions
- ----------
The Proposal has been approved by our Board of Directors
and is not subject to ISP stockholder approval. However, our Proposal is subject
to our satisfaction with the contents of the schedules to the Merger Agreement,
which have not been provided to us to date. ISP does not anticipate any
regulatory issues relating to the acquisition of Dexter by ISP that will affect
ISP's ability to consummate the acquisition of Dexter in a timely fashion.
Neither ISP nor any affiliate thereof will be deemed to
have any liability or obligation whatsoever relating to the transaction
described herein by virtue of this letter or any written or oral expression with
respect to such a transaction by any of its directors, officers, employees or
agents unless and until a definitive Merger Agreement,
<PAGE>
Mr. Gary J. Posternack
Lehman Brothers
April 20, 2000
Page 3
in form satisfactory to ISP, has been executed by ISP and Dexter.
Notwithstanding anything to the contrary contained in your April 12 letter, ISP
does not waive any claims or rights to which it may be entitled by virtue of
submitting this Proposal.
Expiration of Proposal
- ----------------------
Our Proposal will expire on Monday, April 24, 2000, unless
Dexter has commenced substantive negotiations with us before that time.
We welcome the opportunity to discuss with you all aspects
of our Proposal. Accordingly, please feel free to call Stephen Jacobs, of Weil,
Gotshal & Manges, to discuss the Proposal or any related matters.
Very truly yours,
/s/ Samuel J. Heyman
----------------------------
Samuel J. Heyman
/s/ Sunil Kumar
----------------------------
Sunil Kumar
<PAGE>
INTERNATIONAL SPECIALTY PRODUCTS INC.
CONTINGENT VALUE RIGHTS
TERM SHEET
- --------------------------------------------------------------------------------
Issuer International Specialty Products Inc. ("ISP")
- --------------------------------------------------------------------------------
Security Contingent Value Rights ("CVRs"), which would entitle
each former Dexter shareholder to participate in the
proceeds above $50 per share from a sale by ISP of
Dexter's 18,815,000 shares of common stock of Life
Technologies, Inc. (the "Majority Life Technologies
Shares") prior to September 30, 2001.
- --------------------------------------------------------------------------------
Terms of Issuance On the date that ISP and Dexter enter into a
definitive merger agreement, ISP would commit to
issue, subject to the terms and conditions contained
in the merger agreement, a total number of CVRs equal
to one (1) CVR for each share of Common Stock of
Dexter Corporation ("Dexter") issued and outstanding
on that date or reserved for issuance upon the
exercise of an outstanding option, whether or not
then vested. CVRs would be issued (i) upon ISP's
acceptance of tendered Dexter shares for payment and
(ii) in connection with payment of the "back end"
merger consideration to holders of untendered Dexter
shares and unexercised Dexter options. The CVRs would
be certificated.
- --------------------------------------------------------------------------------
Term of CVRs The CVRs would have a term (the "Term") commencing on
the date of issuance (the "Original Issuance Date")
and expiring on the earlier of (i) September 30, 2001
and (ii) the date on which ISP has sold or otherwise
disposed of all of the Majority Life Technologies
Shares; provided, that if ISP has entered into a
definitive agreement providing for a sale or other
disposition of the Majority Life Technologies shares
on or prior to September 30, 2001, the Term shall be
extended, if necessary, past September 30, 2001 until
the earlier of the date on which ISP has consummated
the sale of the Majority Life Technologies Shares
pursuant to such agreement, or the date on which such
agreement is terminated.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Registration and Listing The CVRs would be registered under the Securities
Act, and ISP would use its reasonable best efforts to
cause the CVRs to be listed on the NASDAQ or a
different securities exchange.
- --------------------------------------------------------------------------------
Trustee A trustee or rights agent would be appointed for the
purpose of making payments to, and otherwise acting
on behalf of, the holders of CVRs.
- --------------------------------------------------------------------------------
Contingent Payment Each CVR would entitle the holder to receive a
payment (the "Contingent Payment") in the event that
one or more Disposition(s) (as defined below) of the
Majority Life Technologies Shares is consummated
pursuant to a definitive agreement executed during
the Term. The Contingent Payment, if any, would be
made within 20 business days following the expiration
of the Term.
The Contingent Payment would be in an amount equal to
a quotient, the numerator of which is the Extra
Proceeds (as defined below) and the denominator of
which is the total number of CVRs that have been
issued. The Contingent Payment would be made in cash;
provided, however, that if securities are received by
ISP as proceeds for a Disposition, ISP, at its sole
election, may make the related portion of the
Contingent Payment using such securities.
- --------------------------------------------------------------------------------
Extra Proceeds The "Extra Proceeds" shall be an aggregate amount,
equal to the sum, for each share included in the
Disposition of the Majority Life Technologies Shares
consummated pursuant to a definitive agreement
executed on or prior to September 30, 2001, of (i)
10% of the Net Proceeds Per Share (as defined below)
in excess of $50 and up to $55 per share, (ii) 25% of
the Net Proceeds Per Share in excess of $55 and up to
$65 per share and (iii) 50% of the Net Proceeds Per
Share in excess of $65 per share. Extra Proceeds
would be determined by ISP by aggregating all
Disposition(s) that have been consummated pursuant to
a definitive agreement executed on or prior to
September 30, 2001.
"Net Proceeds" from each Disposition shall mean the
gross amount realized by ISP from such Disposition,
less the sum of all out-of-pocket fees, costs and
expenses incurred by ISP and its affiliates in
connection with such Disposition (including, without
limitation, legal and financial advisory fees). The
value of any non-cash proceeds would be determined by
- --------------------------------------------------------------------------------
<PAGE>
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an independent nationally recognized
investment-banking firm. "Net Proceeds Per Share"
from each Disposition shall mean the Net Proceeds of
such Disposition divided by the number of Majority
Life Technologies Shares sold or otherwise
transferred in such Disposition.
For example, if 8 million Majority Life Technologies
shares were sold by ISP in a Disposition pursuant to
a definitive agreement executed on or prior to
September 30, 2001 at a price of $75 per share, and
ISP incurred related transaction expenses of $2
million, the Extra Proceeds attributable to such
Disposition would be computed as follows:
o Gross Amount Realized = $600 million
o Net Proceeds = $598 million
o Net Proceeds Per Share = $74.75 (i.e. $598 million
divided by 8 million)
With Net Proceeds Per Share of $74.75, CVRs would
entitle the holders to receive, in the aggregate on
account of that Disposition:
o 8,000,000 x 5 x .10 = $4,000,000; plus
o 8,000,000 x 10 x .25 = $20,000,000; plus
o 8,000,000 x 9.75 x .50 = $39,000,000
----------------------------------
Total $63,000,000
A similar calculation would be made for each
Disposition consummated pursuant to a definitive
agreement executed on or prior to September 30, 2001.
The sum of these calculations would be the "Extra
Proceeds".
If ISP were to effect a Disposition of all of the
Majority Life Technologies Shares pursuant to a
definitive agreement(s) executed on or prior to
September 30, 2001 for Net Proceeds Per Share of $74,
the holders of CVRs would receive aggregate Extra
Proceeds of approximately $141,112,500.
- --------------------------------------------------------------------------------
Maximum Extra Proceeds In no event will the holders of CVRs receive more
than $10 per CVR.
- --------------------------------------------------------------------------------
Disposition of the
Life Technologies Shares A "Disposition" shall mean (i) a merger,
consolidation or other business combination involving
Life Technologies as a result of which the Majority
Life Technologies Shares are directly or indirectly
exchanged for cash or non-cash consideration, (ii) a
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
sale or other transfer, directly or indirectly, of
the Majority Life Technologies Shares or (iii) a
sale, transfer or other disposition, in one or a
series of transactions, of all or substantially all
of the assets of Life Technologies.
- --------------------------------------------------------------------------------
Redemption The CVRs would not be redeemable by ISP.
- --------------------------------------------------------------------------------
Merger or Sale of ISP If ISP enters into a merger, consolidation or other
business combination, or a sale of all or
substantially all of its assets during the Term, it
shall make adequate provision for the successor
corporation (unless ISP continues to beneficially own
all of the Majority Life Technologies Shares
following such transaction) to assume all obligations
of ISP under the CVRs.
- --------------------------------------------------------------------------------
Pro Rata Inclusion
in Dispositions If a Disposition involves less than all of the shares
of common stock of Life Technologies beneficially
owned by ISP, the Majority Life Technologies Shares
and the other shares of common stock of Life
Technologies beneficially owned by ISP immediately
prior to the Original Issuance Date will be included
in such Disposition on a pro rata basis.
- --------------------------------------------------------------------------------
Exhibit 2
[LETTERHEAD OF THE CHASE MANHATTAN BANK]
April 20, 2000
Senior Credit Facilities
------------------------
Amendment to Commitment Letter
------------------------------
ISP Opco Holdings Inc.
c/o ISP Management Company, Inc.
1361 Alps Road
Wayne, New Jersey 07470
Attention: Susan Yoss, Treasurer/Senior Vice President
Ladies and Gentlemen:
Reference is made to the Commitment Letter dated March 23,
2000 (the "Commitment Letter"), between you, The Chase Manhattan Bank and Chase
Securities Inc. with respect to the senior credit facilities to be provided to
you in connection with the proposed acquisition of all of the capital stock of
Dexter Corporation. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Commitment Letter.
You have advised us that you are considering modifying the
terms of your current proposal to effect the Acquisition. You have indicated
that you are considering proposing to Target that the consideration to be paid
to the stockholders of Target will consist of a price of $50 per share of Target
stock in cash plus one contingent value right (a "CVR") issued by International
Specialty Products Inc. (the "Modified Proposal"). A summary of the terms of the
CVR is attached hereto as Annex A.
We are pleased to confirm Chase's commitment to provide the
entire amount of the senior credit facilities in order to finance the
Acquisition with the consideration contemplated by the Modified Proposal upon
the terms and subject to the conditions set forth or referred to in the
Commitment Letter and in the Term Sheets, as modified by this letter agreement.
If you do not elect to submit the Modified Proposal to Target, Chase's
commitment will remain unchanged as described in the Commitment Letter. If you
elect to submit the Modified Proposal, with respect to the provisions on
mandatory prepayments and commitment reductions contained in Article III of the
Term Sheets, the net proceeds of any sale or issuance of equity or sale or other
disposition of assets referred to therein shall only be applied to the
prepayments contemplated thereby after giving effect to any payments required to
<PAGE>
be made to the holders of the CVRs. Moreover, the negative covenants referred to
in Article VI of the Term Sheets shall not prohibit the issuance of the CVRs or
the payment obligations contemplated thereby. Finally, each reference to the
Transaction in the Commitment Letter and the documents related thereto shall
include, without limitation, all transactions relating to the CVRs.
Except as expressly amended hereby, the Commitment Letter,
the Term Sheets, the Fee Letter, the highly confident letter and the related
indemnification agreement remain in full force and effect. All future references
to any of such documents shall be deemed to be a reference to such documents as
amended hereby.
Very truly yours,
THE CHASE MANHATTAN BANK
By: /s/ Lawrence Palumbo, Jr.
--------------------------------
Name: Lawrence Palumbo, Jr.
Title: Vice President
CHASE SECURITIES INC.
By: /s/ John K. Kuhn
--------------------------------
Name: John K. Kuhn
Title: Vice President
Accepted and agreed
to as of the date
first written above by:
ISP OPCO HOLDINGS INC.
By: /s/ Susan B. Yoss
-----------------------------
Name: Susan B. Yoss
Title: Senior Vice
President - Treasurer
