Exhibit 10.1
THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT
          THIS AMENDMENT (this “Amendment") is entered into as of November 16,
2007, by and among:
     (a) Rock-Tenn Financial, Inc., a Delaware corporation (“Borrower"),
     (b) Rock-Tenn Converting Company, a Georgia corporation (“Converting"), as
initial Servicer (the Servicer together with Borrower, the “Loan Parties” and
each, a “Loan Party"),
     (c) Variable Funding Capital Company LLC, a Delaware limited liability
company, as assignee of Blue Ridge Asset Funding Corporation (“VFCC” or a
“Conduit"), and Wachovia Bank, National Association, in its capacity as
liquidity provider to VFCC (together with its successor, “Wachovia” and together
with VFCC, the “VFCC Group” or a “Conduit Group"),
     (d) Three Pillars Funding LLC, a Delaware limited liability company (“TPF”
or a “Conduit"), and SunTrust Bank, in its capacity as liquidity provider to TPF
(together with its successor, “SunTrust” and together with TPF, the “TPF Group”
or a “Conduit Group"),
     (e) Wachovia Bank, National Association, in its capacity as agent for the
VFCC Group (together with its successors and assigns in such capacity, the “VFCC
Agent” or a “Co-Agent"), and SunTrust Robinson Humphrey, Inc. (f/k/a SunTrust
Capital Markets, Inc.), in its capacity as agent for the TPF Group (together
with its successors and assigns in such capacity, the “TPF Agent” or a
“Co-Agent"), and
     (f) Wachovia Bank, National Association, in it capacity as administrative
agent for the Lenders hereunder or any successor administrative agent hereunder
(together with its successors and assigns hereunder, the “Administrative Agent”
and together with the Co-Agents, the “Agents"),
with respect to that certain Amended and Restated Credit and Security Agreement
dated as of September 30, 2005, by and among the parties, as amended (the
“Existing Agreement"). The Existing Agreement as amended hereby is sometimes
hereinafter referred to as the “Agreement.”
          Unless otherwise indicated, capitalized terms used in this Amendment
are used with the meanings attributed thereto in the Existing Agreement.
W I T N E S S E T H :
     WHEREAS, the parties wish to modify the Existing Agreement as hereinafter
set forth;
          NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereto hereby agree as follows:

 

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          1. Amendments to Existing Agreement. Subject to the terms and
conditions hereinafter set forth, the parties hereby agree as follows:
          1.1. The definitions of the following terms in Exhibit I to the
Existing Agreement are hereby amended and restated in their entirety to read,
respectively, as follows:
     “Aggregate Commitment” means, on any date of determination, the aggregate
amount of the Liquidity Banks’ Commitments to make Loans hereunder. As of the
date hereof, the Aggregate Commitment is $110,000,000.
     “Excess Terms Allowance” means the excess, if any, of the aggregate
Outstanding Balance of all Eligible Receivables which by its terms are due and
payable greater than 60 days from the original invoice date thereof that exceeds
2.5% of the Outstanding Balance of all Eligible Receivables.
     “Foreign Receivable Excess” means the excess, if any, of the aggregate
Outstanding Balance of all Eligible Foreign Receivables over 1.5% of the
Outstanding Balance of all Eligible Receivables.
     “Obligor Concentration Limit” means, at any time, in relation to the
aggregate Outstanding Balance of Receivables owed by any single Obligor and its
Affiliates (if any), the applicable concentration limit shall be determined as
follows for Obligors who have short term unsecured debt ratings currently
assigned to them by S&P and Moody’s (or in the absence thereof, the equivalent
long term unsecured senior debt ratings), the applicable concentration limit
shall be determined according to the following table:

                  Allowable % of S&P Rating   Moody’s Rating   Eligible
Receivables
A-1+
  P-1   10%
A-1
  P-1   8%
A-2
  P-2   7%
A-3
  P-3   3%
Below A-3 or Not Rated by either S&P or Moody’s
  Below P-3 or Not Rated by either S&P or Moody’s   2.5%

; provided, however, that (a) if any Obligor has a split rating, the applicable
rating will be the lower of the two, (b) if any Obligor is not rated by either
S&P or Moody’s, the applicable Obligor Concentration Limit shall be the one set
forth in the last line of the table above, and (c) subject to satisfaction of
the Rating Agency Condition and/or an increase in the percentage set forth in
clause (a)(i) of the definition of “Required Reserve,” upon Borrower’s request
from time to time, the Administrative Agent may agree to a higher percentage of
Eligible Receivables for a particular Obligor and its Affiliates (each such
higher percentage, a “Special Concentration Limit”), it being understood that
any Special Concentration Limit may be cancelled by the Administrative Agent
upon not less than five (5) Business Days’ written notice to the Loan Parties.

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     “Required Reserve Factor Floor” means, for any Calculation Period, the sum
(expressed as a percentage) of (a) 19% plus (b) the product of the Adjusted
Dilution Ratio and the Dilution Horizon Ratio, in each case, as of the
immediately preceding Cut-Off Date.
          1.2. Schedule A to the Existing Agreement are hereby amended and
restated in its entirety to read as set forth in Schedule A hereto.
          2. Conditions Precedent. This Amendment shall become effective as of
the date first above written upon (a) receipt by the Administrative Agent of a
counterpart hereof duly executed by each of the parties hereto, (b) receipt by
the Administrative Agent of a counterpart of a third amendment and restatement
of the Fee Letter, duly executed by each of the parties thereto, and (c) receipt
by the Administrative Agent of a counterpart of an amended and restated
administrative agent’s fee letter with the Borrower and the Parent, duly
executed by the parties thereto, and of payment in immediately available funds
of all fees required to be paid thereunder on the date hereof.
          3. Miscellaneous.
          3.1. Except as expressly amended hereby, the Existing Agreement shall
remain unaltered and in full force and effect, and each of the parties hereby
ratifies and confirms each of the Transaction Documents to which it is a party.
          3.2. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA WITHOUT REFERENCE TO PRINCIPLES
OF CONFLICTS OF LAW.
          3.3. EACH OF THE COMPANIES HEREBY ACKNOWLEDGES AND AGREES THAT:
          3.3.1. IT IRREVOCABLY (i) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION,
FIRST, OF ANY UNITED STATES FEDERAL COURT, AND SECOND, IF FEDERAL JURISDICTION
IS NOT AVAILABLE, OF ANY GEORGIA STATE COURT, IN EITHER CASE SITTING IN FULTON
COUNTY, GEORGIA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE
AGREEMENTS, AND (ii) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF AN ACTION OR PROCEEDING
IN SUCH COURTS.
          3.3.2. TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM THE JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID TO EXECUTION,
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, IT HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER OR IN
CONNECTION WITH THE EXISTING AGREEMENT (OR EXISTING AGREEMENTS) TO WHICH IT IS A
PARTY.

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          3.4. This Amendment may be executed in any number of counterparts and
by the different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same Amendment.
<Signature pages follow>

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          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first above written.
ROCK-TENN FINANCIAL, INC., as Borrower

         
By:
Name:
  /s/ Bradley W. Prince
 
Bradley W. Prince     
Title:
  Treasurer    

ROCK-TENN CONVERTING COMPANY, as Servicer

         
By:
Name:
  /s/ Gregory L. King
 
Gregory L. King     
Title:
  Vice President Risk Management, Treasurer and Assistant Secretary    

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VARIABLE FUNDING CAPITAL COMPANY LLC
BY: WACHOVIA CAPITAL MARKETS, LLC, ITS ATTORNEY-IN-FACT

         
By:
  /s/ Douglas R. Wilson, Sr.
 
Name: Douglas R. Wilson     
 
  Title: Director    

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WACHOVIA BANK, NATIONAL ASSOCIATION, as VFCC Agent, a Liquidity Bank and as
Administrative Agent

         
By:
  /s/ Elizabeth R. Wagner    
 
       
Name:
  Elizabeth R. Wagner    
Title:
  Managing Director    

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          THREE PILLARS FUNDING LLC    
 
       
By:
  /s/ Doris J. Hearn    
 
       
Name:
  Doris J. Hearn    
Title:
  Vice President    

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SUNTRUST ROBINSON HUMPHREY, INC., as TPF Agent

         
By:
Name:
  /s/ Timothy S. Mueller
 
Timothy S. Mueller    
Title:
  Managing Director    

SUNTRUST BANK, as TPF Liquidity Bank

         
By:
Name:
  /s/ Robert Maddox
 
Robert Maddox    
Title:
  Vice President    

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SCHEDULE A
COMMITMENTS OF LIQUIDITY BANKS

      Blue Ridge Liquidity Banks   Commitment Wachovia Bank, National
Association   $55,000,000

      TPF Liquidity Banks   Commitment SunTrust Bank   $55,000,000

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