Exhibit 10.1

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) dated as of
November 28, 2012 is by and among KAPSTONE KRAFT PAPER CORPORATION, a Delaware
corporation (the “Borrower”), KAPSTONE PAPER AND PACKAGING CORPORATION, a
Delaware corporation (the “Parent”), certain subsidiaries of the Parent
identified on the signature pages hereto as Guarantors, the Lenders identified
on the signature pages hereto and BANK OF AMERICA, N.A., as Administrative Agent
(the “Administrative Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Borrower, the Parent, the other Guarantors party thereto, the
Lenders party thereto, and the Administrative Agent have entered into that
certain Credit Agreement dated as of October 31, 2011 (as amended, restated,
modified or supplemented from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested that the Lenders agree to certain amendments
to the Credit Agreement; and

 

WHEREAS, the Lenders are willing to agree to certain amendments to the Credit
Agreement subject to the terms and conditions specified in this Agreement;

 

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1.                                      Defined Terms.  Capitalized terms used
herein but not otherwise defined herein shall have the meanings provided to such
terms in the Credit Agreement.

 

2.                                      Amendments.  Subject to the other terms
and conditions of this Agreement (including the conditions precedent set forth
in Section 3 hereof), the Credit Agreement is hereby amended as follows:

 

(a)                                 In the definition of “Applicable Rate” in
Section 1.01 of the Credit Agreement the table is hereby amended to read as
follows:

 

Applicable Rate

 

Pricing
Level

 

Total Leverage Ratio

 

Eurodollar
Rate Loans

 

Letter of
Credit Fee

 

Base Rate
Loans

 

Unused
Fee

 

I

 

> 2.75x

 

2.25

%

2.25

%

1.25

%

0.50

%

II

 

> 2.25x but < 2.75x

 

2.00

%

2.00

%

1.00

%

0.45

%

III

 

>1.75x but < 2.25x

 

1.75

%

1.75

%

0.75

%

0.40

%

IV

 

> 1.25x but < 1.75x

 

1.50

%

1.50

%

0.50

%

0.35

%

V

 

<1.25x

 

1.25

%

1.25

%

0.25

%

0.30

%

 

(b)                                 In the definition of “Fixed Charge Coverage
Ratio” clause (a)(iii) is amended to read as follows:

 

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“cash dividends paid by the Parent (excluding the Specified Dividend) during
such period minus”

 

(c)                                  In the definition of “Maturity Date” in
Section 1.01 of the Credit Agreement the reference to “October 31, 2016” is
hereby amended to read “November 28, 2017”.

 

(d)                                 Section 1.01 of the Credit Agreement is
amended by inserting the following new definition in the appropriate
alphabetical order to read as follows:

 

“Specified Dividend” means a one-time cash dividend paid by the Parent, in
accordance with Section 7.04(f), on or prior to December 31, 2012, in an
aggregate amount not to exceed $100,000,000.

 

(e)                                  In Section 2.07 of the Credit Agreement the
table is amended in its entirety to read as follows:

 

Fiscal Quarter Ending (or
Maturity Date)(1)

 

Principal Amortization
Payment

 

June 30, 2014

 

$

5,312,500

 

September 30, 2014

 

$

9,375,000

 

December 31, 2014

 

$

11,718,750

 

March 31, 2015

 

$

11,718,750

 

June 30, 2015

 

$

11,718,750

 

September 30, 2015

 

$

11,718,750

 

December 31, 2015

 

$

14,062,500

 

March 31, 2016

 

$

14,062,500

 

June 30, 2016

 

$

14,062,500

 

September 30, 2016

 

$

14,062,500

 

December 31, 2016

 

$

14,062,500

 

March 31, 2017

 

$

14,062,500

 

June 30, 2017

 

$

14,062,500

 

September 30, 2017

 

$

14,062,500

 

Maturity Date

 

Outstanding Principal Balance of Initial Term Loan

 

 

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(1)  The principal repayment installments listed in the table give effect to the
application of prepayments made before the date of the Second Amendment to
Credit Agreement.

 

2

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(f)                                   Schedule 5.16 of the Credit Agreement is
hereby amended in its entirety to read in the form of such Schedule attached
hereto as Exhibit A.

 

(g)                                  Section 6.07 of the Credit Agreement is
hereby amended by adding the phrase “and Permitted Parent Dividends” after the
term “Permitted Acquisitions”.

 

(h)                                 Schedule 6.14 of the Credit Agreement is
hereby amended in its entirety to read in the form of such Schedule attached
hereto as Exhibit B.

 

3.                                      Conditions Precedent to Effectiveness. 
This Agreement shall become effective as of the date hereof upon the
satisfaction of the following conditions:

 

(a)                                 Execution of Counterparts of Agreement. 
Receipt by the Administrative Agent of counterparts of this Agreement duly
executed by the Borrower, the Parent, the other Guarantors, the Administrative
Agent and the Lenders;

 

(b)                                 Secretary’s Certificates.  Receipt by the
Administrative Agent of a secretary’s certificate of each Loan Party dated as of
the date hereof signed by a Responsible Officer of such Loan Party certifying
and attaching the resolutions adopted by such Loan Party approving or consenting
to this Amendment and attaching certified organizational documents or certifying
that there have been no changes to the organizational documents delivered on the
Closing Date;

 

(c)                                  Good Standings.  Receipt by the
Administrative Agent of such documents and certifications as the Administrative
Agent may reasonably require to evidence that each Loan Party is duly organized
or formed, and is validly existing, in good standing and qualified to engage in
business in its state of organization or formation.

 

(d)                                 Opinions.

 

(i)                                     Receipt by the Administrative Agent of a
favorable opinion of Sidley Austin LLP, counsel to the Loan Parties, addressed
to the Administrative Agent and each Lender, as to such matters concerning the
Loan Parties and the Loan Documents as the Administrative Agent may reasonably
request;

 

(ii)                                  Receipt by the Administrative Agent of a
favorable opinion of Alston & Bird LLP, local Georgia counsel to the Loan
Parties, addressed to the Administrative Agent and each Lender, as to such
matters concerning the Loan Parties and the Loan Documents as the Administrative
Agent may reasonably request; and

 

(e)                                  Fees and Expenses.  The payment by the
Borrower to the Administrative Agent (or one of its Affiliates) of (a) an
amendment fee, for the account of each Lender, equal to 7.5 basis points of the
aggregate amount of such Lender’s Initial Term Loan and Revolving Credit
Commitment as of the date of this Agreement and (b) all other fees and expenses
which are due and payable as of the date hereof or which have been separately
agreed to, under the Credit Agreement or other Loan Documents, including all
reasonable out of pocket costs and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Agreement
(including, without limitation, the reasonable fees and expenses of Moore & Van
Allen PLLC, special counsel to the Administrative Agent).

 

3

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4.                                      Representations and Warranties.  Each
Loan Party hereby represents and warrants that (a) it is duly authorized to
execute and deliver, and perform its obligations under, this Agreement; (b) the
execution, delivery and performance by it of this Agreement do not and will not
(i) require any consent or approval of any governmental agency or authority
(other than any consent or approval which has been obtained and is in full force
and effect), (ii) conflict with (A) any provision of Law, (B) the charter,
by-laws or other organizational documents of any Loan Party or (C) any
agreement, indenture, instrument or other document material to the business of
any Loan Party, or any judgment, order or decree, which is binding upon any Loan
Party or any of their respective properties; (c) the representations and
warranties contained in Article V of the Credit Agreement are true and correct
in all material respects (except to the extent already qualified by materiality
pursuant to the terms thereof) on and as of the date hereof as though made on
and as of such date, except for those which expressly relate to an earlier date,
in which case they are true and correct in all material respects (except to the
extent already qualified by materiality pursuant to the terms thereof) as of
such date; and (d) no Default or Event of Default exists under the Credit
Agreement on and as of the date hereof and after giving effect to this
Agreement, or will occur as a result of the transactions contemplated hereby.

 

5.                                      No Other Changes; Ratification.  Except
as expressly modified or waived hereby, all of the terms and provisions of the
Credit Agreement (including schedules and exhibits thereto) and the other Loan
Documents shall remain in full force and effect.  The term “this Agreement” or
“Credit Agreement” and all similar references as used in each of the Loan
Documents shall hereafter mean the Credit Agreement as modified by this
Agreement.  This Agreement shall constitute a “Loan Document” under, and as
defined in, the Credit Agreement.  Except as herein specifically agreed, the
Credit Agreement is hereby ratified and confirmed and shall remain in full force
and effect according to its terms.  This Agreement shall be effective only to
the extent specifically set forth herein and shall not (i) be construed as a
waiver of any breach or default other than as specifically waived herein nor as
a waiver of any breach or default of which the Lenders have not been informed by
the Borrower, (ii) affect the right of the Lenders to demand compliance by the
Loan Parties with all terms and conditions of the Credit Agreement in all other
instances, (iii) be deemed a waiver of any transaction or future action on the
part of the Loan Parties requiring the Lenders’ or the Required Lenders’ consent
or approval under the Credit Agreement, or (iv) be deemed or construed to be a
waiver or release of, or a limitation upon, the Administrative Agent’s or the
Lenders’ exercise of any rights or remedies under the Credit Agreement or any
other document executed or delivered in connection therewith, whether arising as
a consequence of any Event of Default which may now exist or otherwise, all such
rights and remedies hereby being expressly reserved.

 

6.                                      Expenses.  The Borrower agrees to pay
all reasonable costs and expenses in connection with the preparation, execution
and delivery of this Agreement, including without limitation the reasonable fees
and expenses of Moore & Van Allen PLLC, special counsel to the Administrative
Agent.

 

7.                                      Acknowledgment of Guarantors.  The
Guarantors acknowledge and consent to all of the terms and conditions of this
Agreement and agree that this Agreement and any documents executed in connection
herewith do not operate to reduce or discharge the Guarantors’ obligations under
the Credit Agreement or the other Loan Documents.

 

8.                                      Affirmation of Liens. Each Loan Party
affirms the liens and security interests created and granted by it in the Loan
Documents (including, but not limited to, the Security Agreement) and agrees
that this Agreement shall in no manner adversely affect or impair such liens and
security interests.

 

4

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9.                                      Counterparts.  This Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all of which when taken together
shall constitute a single contract.

 

10.                               Governing Law.  This Agreement shall be deemed
to be a contract made under, and for all purposes shall be construed in
accordance with, the laws of the State of New York (including Sections 5-1401
and 5-1402 of the General Obligations Law of the State of New York but otherwise
without regard to the conflict of law principles thereof).

 

11.                               Entirety. This Agreement and the other Loan
Documents embody the entire agreement between the parties and supersede all
prior agreements and understandings, if any, relating to the subject matter
hereof.  These Loan Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties.  There are no oral agreements between the
parties.

 

[SIGNATURE PAGES FOLLOW]

 

5

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Agreement to be duly executed and delivered as of the date first above written.

 

 

BORROWER:

KAPSTONE KRAFT PAPER CORPORATION,

 

a Delaware corporation

 

 

 

 

 

By:

/s/ Andrea K. Tarbox

 

Name:

Andrea K. Tarbox

 

Title:

Chief Financial Officer

 

 

 

 

GUARANTORS:

KAPSTONE PAPER AND PACKAGING

 

CORPORATION, a Delaware corporation

 

 

 

 

 

By:

/s/ Andrea Tarbox

 

Name:

Andrea Tarbox

 

Title:

Chief Financial Officer

 

 

 

 

 

KAPSTONE CHARLESTON KRAFT LLC,

 

a Delaware limited liability company

 

 

 

 

 

By:

/s/ Andrea Tarbox

 

Name:

Andrea Tarbox

 

Title:

Vice President and Chief Financial Officer

 

 

 

 

 

KAPSTONE CONTAINER CORPORATION,

 

(f/k/a U.S. Corrugated, Inc.) a Georgia corporation

 

 

 

 

 

By:

/s/ Andrea Tarbox

 

Name:

Andrea Tarbox

 

Title:

Treasurer

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.,

 

as Administrative Agent

 

 

 

 

 

By:

/s/ Ken Puro

 

Name:

Ken Puro

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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LENDERS:

BANK OF AMERICA, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ David Bacon

 

Name:

David Bacon

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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BARCLAYS BANK PLC,

 

as a Lender

 

 

 

 

 

By:

/s/ Michael J. Mozer

 

Name:

Michael J. Mozer

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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FIFTH THIRD BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Stephen C. Watts

 

Name:

Stephen C. Watts

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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TD BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ David Perlman

 

Name:

David Perlman

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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COMPASS BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ John R. Bozalis, Jr.

 

Name:

John R. Bozalis, Jr.

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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RBS CITIZENS, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ M. James Barry

 

Name:

M. James Barry

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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COOPERATIEVE CENTRALE

 

RAIFFESEIN-BOERENLEENBANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Peter Duncan

 

Name:

Peter Duncan

 

Title:

Managing Director

 

 

 

 

 

By:

/s/ John L. Church

 

Name:

John L. Church

 

Title:

Managing Director

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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WELLS FARGO BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ John D. Brady

 

Name:

John D. Brady

 

Title:

Director

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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KEYBANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

/s/ James Gelle

 

Name:

James Gelle

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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PNC BANK, NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

/s/ Patrick Flaherty

 

Name:

Patrick Flaherty

 

Title:

Assistant Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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THE PRIVATEBANK AND TRUST COMPANY,

 

as a Lender

 

 

 

 

 

By:

/s/ Manas N. Athanikar

 

Name:

Manas N. Athanikar

 

Title:

Managing Director

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

/s/ Mary Ann Klemm

 

Name:

Mary Ann Klemm

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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THE HUNTINGTON NATIONAL BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Lori Cummins-Meyer

 

Name:

Lori Cummins-Meyer

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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COBANK, ACB,

 

as a Lender

 

 

 

 

 

By:

/s/ Hal Nelson

 

Name:

Hal Nelson

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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FARM CREDIT BANK OF TEXAS,

 

as a Lender

 

 

 

 

 

By:

/s/ Chris M. Levine

 

Name:

Chris M. Levine

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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AGFIRST FARM CREDIT BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Matthew H. Jeffords

 

Name:

Matthew H. Jeffords

 

Title:

Assistant Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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FARM CREDIT SERVICES OF AMERICA, PCA,

 

as a Lender

 

 

 

 

 

By:

/s/ Bruce Dean

 

Name:

Bruce Dean

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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AMERICAN AGCREDIT, PCA

 

as a Lender

 

 

 

 

 

By:

/s/ Michael J. Balok

 

Name:

Michael J. Balok

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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UNITED FCS, PCA d/b/a FCS COMMERCIAL
FINANCE GROUP, as a Lender

 

 

 

 

 

By:

/s/ Lisa Caswell

 

Name:

Lisa Caswell

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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1st FARM CREDIT SERVICES, PCA,

 

as a Lender

 

 

 

 

 

By:

/s/ Corey J. Waldinger

 

Name:

Corey J. Waldinger

 

Title:

Vice President, Capital Markets

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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NORTHWEST FARM CREDIT SERVICES, PCA,

 

as a Lender

 

 

 

 

 

By:

/s/ Jeremy A. Roewe

 

Name:

Jeremy A. Roewe

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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CAPITAL ONE LEVERAGE FINANCE CORP.,

 

as a Lender

 

 

 

 

 

By:

/s/ Ron Walker

 

Name:

Ron Walker

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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THE NORTHERN TRUST COMPANY,

 

as a Lender

 

 

 

 

 

By:

/s/ M. Scott Randall

 

Name:

M. Scott Randall

 

Title:

Officer

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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FIRST TENNESSEE BANK NATIONAL
ASSOCIATION, as a Lender

 

 

 

 

 

By:

/s/ Sharon Shipley

 

Name:

Sharon Shipley

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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AGSTAR FINANCIAL SERVICES, PCA,

 

as a Lender

 

 

 

 

 

By:

/s/ Troy Mostaert

 

Name:

Troy Mostaert

 

Title:

Vice President Capital Markets

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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MANUFACTURERS BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Sean R. Walker

 

Name:

Sean R. Walker

 

Title:

Senior Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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FIRSTMERIT BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ Tim Daniels

 

Name:

Tim Daniels

 

Title:

Vice President

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

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Exhibit A

 

SCHEDULE 5.16

 

REAL PROPERTY

 

Address of Property

 

Leased/Owned

 

Address of Landlord

*KapStone Paper and Packaging Corporation

1101 Skokie Blvd., Suite 300

Northbrook, IL 60062

 

Leased

 

PCS Administration (USA), Inc.

1101 Skokie Blvd., Suite 400

Northbrook, IL 60062

KapStone Kraft Paper Corporation

100 Gaston Road

Roanoke Rapids, NC 27870

 

Owned

 

N/A

KapStone Kraft Paper Corporation

Airstrip Property (as defined in Attachment 1 to Schedule 5.07)

 

Owned

 

N/A

KapStone Charleston Kraft LLC

5600 Virginia Avenue

North Charleston, SC 29406

 

Owned

 

N/A

KapStone Charleston Kraft LLC

309 N. Maple Street

Summerville, SC 29483

 

Owned

 

N/A

KapStone Charleston Kraft LLC

707 Whitehead Road

Elgin, SC 29483

 

Owned

 

N/A

KapStone Charleston Kraft LLC

1382 Elm Street

Hampton, SC 29924

 

Owned

 

N/A

KapStone Charleston Kraft LLC

28026 U.S. Highway 76

Kinards, SC 29355

 

Owned

 

N/A

KapStone Charleston Kraft LLC

Harvey Tract Landfill

Highway 16

Summerville, SC 29483

 

Owned

 

N/A

KapStone Charleston Kraft LLC

665 Chip Mill Road

Andrews, SC 29510

 

Leased

 

MeadWestvaco Forestry, LLC

P.O. Box 118005

Charleston, SC 29423-8005

KapStone Charleston Kraft

105 Doyle Road (sometimes listed as having an address at 107 Motel Drive; also
known as “St. George Maintenance Shop”)

St. George, SC 29477

 

Leased

 

MeadWestvaco Forestry, LLC

P.O. Box 118005

Charleston, SC 29423-8005

KapStone Charleston Kraft LLC

7 miles west of Givans Town and 4 miles west of Givans Ferry

 

Leased

 

MeadWestvaco Forestry, LLC

P.O. Box 118005

Charleston, SC 29423-8005

 

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Bridge

Badham, SC

 

 

 

 

KapStone Charleston Kraft LLC

Water Leases

Tracts 21-24 and Tract 17

(included in the legal description of Parcel 7 by virtue of references to
previously recorded water line easements/leases, including 1938 leases from the
Commissioners of Public Works of Charleston recorded in Book C-32 at Pages 450
and 458, assigned by a recorded Assignment of Lease from MeadWestvaco to
KapStone Charleston Kraft LLC)

Charleston, SC

 

Leased

 

Commissioners of Public Works of the City of Charleston, SC

P.O. Box B

Charleston, SC 29402

*KapStone Acquisition Inc. (f/k/a U.S. Corrugated Acquisition Inc.)

550 Broad Street, Suite 605

Newark, NJ 07102

 

Lease

 

Jeffrey Greenberg

Heritage Capital Group

123 Prospect Street

P.O. Box 627

Ridgewood, NJ 07451

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

28 Park Drive

Amsterdam, NY 12010

 

Lease

 

DLL – Amsterdam, LLC

115 Stevens Avenue

Valhalla, NY 10595

**KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

655A Selig Drive

Atlanta, GA 30336

 

Lease

 

C.B. Richard Ellis

3230 Peachtree Corners Circle Suite H

Norcross, GA 30092

Attn: Cherry Mora

**KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

5560 Gwaltney Drive

Atlanta, GA 30336

 

Lease

 

Avison Young

3350 Riverwood Pkwy., Suite 850

Atlanta, GA 30339

Attn: Jonathan Key, Property Manager

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

225 Mitch McConnell Way

S. Central Ky. Indus. Park

Bowling Green, KY 42101

 

Lease

 

DLL – Bowling Green, LLC

115 Stevens Avenue

Valhalla, NY 10595

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

1601 Blairs Ferry Road, NE

Cedar Rapids, IA 52402

 

Lease

 

DLL – Cedar Rapids, LLC

115 Stevens Avenue

Valhalla, NY 10595

 

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KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

2370 Sullivan Road

College Park, GA 30337

 

Own

 

N/A

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

4200 Cambridge Road

Fort Worth, TX 76155

 

Own

 

 

N/A

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

5400 32nd Avenue South

Grand Forks, ND 58201

 

Lease

 

DLL – Grand Forks, LLC

115 Stevens Avenue

Valhalla, NY 10595

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

1469 294th Road

Seward, NE 68434

 

Lease

 

DLL – Seward, LLC

115 Stevens Avenue

Valhalla, NY 10595

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

100 Palmer Avenue

West Springfield, MA 01089

 

Own

 

N/A

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

5851 East River Road

Fridley, MN 55432

 

Lease

 

DLL – Fridley, LLC

115 Stevens Avenue

Valhalla, NY 10595

KapStone Container Corporation (f/k/a U.S. Corrugated, Inc.)

139 Price Farm Road

Cowpens, SC 29330

 

Own

 

N/A

Anderson Packaging, Inc.

1001 Cale Drive

P.O. Box 350

Lawrenceburg, KY 40342

 

Lease

 

James W. Kessinger

1031 Woodspoint Drive

Lawrenceburg, KY 40342

Anderson Packaging, Inc.

400 Chandler Street

Somerset, KY 42501

 

Lease

 

Somerset Pulaski County Development Holdings, LLC

P.O. Box 450

Somerset, KY 42502

**U.S. Corrugated of Mesquite, LLC

700 N. Sam Houston Road

Mesquite, TX 75149

 

Lease

 

700 N. Sam Houston Road Realty, LLC

115 Stevens Avenue

Valhalla, NY 10595

 

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*Indicates a property that constitutes leased office space and that is excluded
from the Collateral (i.e., no Mortgage required).

 

**Indicates a property where, pursuant to Schedule 6.14(f), the Loan Parties
were required only to use “commercially reasonable efforts” to obtain and
deliver a Mortgage and related real property collateral documents.  The Loan
Parties have been unable to obtain a Mortgage and related documents after using
such efforts.

 

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Exhibit B

 

SCHEDULE 6.14

 

POST –CLOSING OBLIGATIONS

 

(a)           (i) Complete the “satisfaction and discharge” of the U.S.
Corrugated Bonds within 45 days of the Closing Date in a manner that
extinguishes all Debt with respect thereto and (ii) deliver to the
Administrative Agent evidence of such completion.

 

(b)           Complete the Post-Acquisition Consolidation on the same Business
Day as the Closing Date.

 

(c)           Within 5 days of the Closing Date (or such later date as the
Administrative Agent shall agree), provide evidence that the Administrative
Agent, on behalf of the Lenders, has been named as an additional insured with
respect to the environmental insurance policies required to be obtained under
the Pine Merger Agreement.

 

(d)           Within 5 days of the Closing Date (or such later date as the
Administrative Agent shall agree), provide the Administrative Agent with a
revised certificate of property insurance, which shall include the properties of
the Target.

 

(e)           Execute and deliver the Mortgages with respect to the properties
owned by the Target on the same Business Day as the Closing Date, except as set
forth in (f) below.

 

(f)            Except at set forth in (xi) below, within [60] days of the
Closing Date (or such later date as the Administrative Agent shall agree), use
commercially reasonable efforts to provide the Administrative Agent with the
following (all in a form satisfactory to the Administrative Agent) with respect
to the real property locations of the Loan Parties:

 

(i)

Ft. Worth, TX:

 

Estoppel from Declarant under recorded Declaration

 

 

(ii)

Gwaltney Drive, Atlanta, GA:

 

Estoppel, Consent and Agreement from Landlord

 

Consent and SNDA of Fee Lender

 

Memorandum of Lease

 

Mechanics Lien Waivers from contractors to fee owners or mechanics lien coverage

 

Leasehold Mortgage

 

Mortgage Policy of Title Insurance

 

Opinion of local counsel

 

 

(iii)

Selig Drive, Atlanta, GA:

 

Estoppel, Consent and Agreement from Landlord

 

Consent and SNDA of Fee Lender

 

Memorandum of Lease

 

Leasehold Mortgage

 

Mortgage Policy of Title Insurance

 

Opinion of local counsel

 

 

(iv)

Bowling Green, KY:

 

Estoppel from Bowling Green Flex Park

 

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(v)

Fridley, MN:

 

Estoppel from JLT East River Road, LLC

 

 

(vi)

Lawrenceburg, KY:

 

Release of Expired Fee Mortgage

 

Endorsement to Mortgage Policy of Title Insurance deleting exception for two fee
mortgages

 

 

(vii)

Mesquite, TX:

 

Consent and SNDA of Fee Lender

 

Leasehold Mortgage

 

Mortgage Policy of Title Insurance

 

Opinion of local counsel

 

 

(viii)

Somerset, KY:

 

Release of two fee mortgages of record

 

Endorsement to Mortgage Policy of Title Insurance deleting exception for two fee
mortgages

 

 

(ix)

North Charleston, SC

 

Within twenty (20) days of the Closing Date, an endorsement to Mortgage Policy
of Title Insurance deleting exception for mechanic’s liens.

 

(g)           Within 60 days of the date of the Second Amendment (or such later
date as the Administrative Agent shall agree), provide the Administrative Agent
with the following (all in a form satisfactory to the Administrative Agent) with
respect to the real property locations of the Loan Parties:

 

(i)

Fridley, MN

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

 

(ii)

College Park, GA

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

 

(iii)

Bowling Green, KY

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

 

(iv)

Lawrenceburg, KY

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

 

(v)

Somerset, KY

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

 

(vi)

Grand Forks, ND

 

Amendment to Mortgage reflecting the new Maturity Date

 

Endorsement to Mortgage Policy of Title Insurance

 

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