**Exhibit 4.1.2**

 

SUPPLEMENTAL INDENTURE 

 

SUPPLEMENTAL INDENTURE (this “*Supplemental Indenture*”), dated as of December 23, 2003 among Rose Holdings Limited, Bemrose Group Limited,The Henry Booth Group Limited, BemroseBooth Limited, HBGI Holdings Limited, Bemrose Security & Promotional Printing Limited and BemroseBooth USA Inc. (each a “*Guaranteeing Subsidiary*” and collectively the “*GuaranteeingSubsidiaries*”), each a subsidiary of Appleton Papers Inc. (or its permitted successor), a Delaware corporation (the “*Company*”), the Company, the other Guarantors (as defined in the Indenture referred to herein) and U.S.Bank National Association, as trustee under the indenture referred to below (the “*Trustee*”). 

 

W I T N E S S E T H 

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “*Indenture*”), dated as of December 14, 2001 providing for the issuance of an aggregate principal amount ofup to $250 million of 12 1⁄2% Senior Subordinated Notes due 2008 (the “*Notes*”); 

 

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Parent or Guaranteeing Subsidiary shall execute and deliver to theTrustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary or Guaranteeing Parent, as the case may be, shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms andconditions set forth herein (the “*Parent Guarantee*” or “*Subsidiary Guarantee*”); and 

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 

 

NOW THEREFORE, in consideration of the foregoing and for other good andvaluable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

 

1. CAPITALIZED TERMS. Capitalized terms used herein without definition shallhave the meanings assigned to them in the Indenture. 

 

2.AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiaries hereby agree as follows: 

 

(a) Along with all Guarantors named in the Indenture, to jointly and severally Guarantee to each Holder of a Note authenticated anddelivered by the Trustee and to the Trustee and its successors and assigns, the Notes or the obligations of the Company hereunder or thereunder, that: 

 

(i) the principal of and interest on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption orotherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Company to the Holders or the Trustee hereunder or 

 

 
thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and 

 

(ii) in case of any extension of time of payment or renewalof any Notes or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. 

 

Failing payment when due of any amount so guaranteed or any performance so guaranteed forwhatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately. 

 

(b) The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or theIndenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or anyother circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. 

 

(c) The following is hereby waived: diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency orbankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever. 

 

(d) This Subsidiary Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and theIndenture, and each Guaranteeing Subsidiary accepts all obligations of a Guarantor under the Indenture. 

 

(e) If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors, or any Custodian,Trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstatedin full force and effect. 

 

(f) No GuaranteeingSubsidiary shall be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. 

 

(g) As between the Guarantors, on the one hand, and theHolders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of this Subsidiary Guarantee, notwithstanding any stay, injunction orother prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article 6 of the Indenture, such obligations (whether or notdue and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Subsidiary Guarantee. 

 

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(h) The Guarantors shall have the right to seek contribution from any non-payingGuarantor so long as the exercise of such right does not impair the rights of the Holders under the Guarantee. 

 

(i) Pursuant to Section 11.03 of the Indenture, after giving effect to any maximum amount and any other contingent and fixed liabilitiesthat are relevant under any applicable Bankruptcy of fraudulent conveyance laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of theobligations of such other Guarantor under Article 11 of the Indenture, this new Subsidiary Guarantee shall be limited to the maximum amount permissible such that the obligations of each such Guarantor under this Subsidiary Guarantee will notconstitute a fraudulent transfer or conveyance. 

 

3. EXECUTIONAND DELIVERY. Each Guaranteeing Subsidiary agrees that the Parent Guarantee and Subsidiary Guarantee shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such guarantees. 

 

4. GUARANTEEING SUBSIDIARIES MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

 

(a) No Guaranteeing Subsidiary mayconsolidate with or merge with or into (whether or not such Guarantor is the surviving person) another corporation, Person or entity whether or not affiliated with such Guarantor unless: 

 

(i) subject to Sections 11.05 and 11.06 of the Indenture, the person formed by or surviving any suchconsolidation or merger (if other than a Guarantor or the Company) unconditionally assumes all the obligations of such Guarantor, pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee, under the Indentureand its Subsidiary Guarantee on the terms set forth herein or therein; 

 

(ii) immediately after giving effect to such transaction, no Default or Event of Default exists; and 

 

(iii) if the Guarantor is a party to the Environmental Indemnity Agreements, all rights afforded to such Guarantor are effectivelyassigned in full to the Person formed by or surviving any consolidation or merger (if other than the Company or another Guarantor) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made, pursuant toagreements reasonably satisfactory to the Trustee. 

 

(b) In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the ParentGuarantee or Subsidiary Guarantee, as applicable, endorsed upon the Notes and the due and punctual performance of all of the covenants and conditions of the Indenture to be performed by the Guarantor, such successor person shall succeed to and besubstituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor person thereupon may cause to be signed any or all of the Parent Guarantees or 

 

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Subsidiary Guarantees, as applicable, to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company anddelivered to the Trustee. All Parent Guarantees and all Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture as the Parent Guarantee and Subsidiary Guarantee theretofore and thereafter issuedin accordance with the terms of the Indenture as though all of such Parent Guarantees and Subsidiary Guarantees had been issued at the date of the execution hereof. 

 

(c) Except as set forth in Article 4 and 5 and Section 11.06 of Article 11 of the Indenture, andnotwithstanding clauses (a) and (b) above, nothing contained in the Indenture or in any of the Notes shall prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor, or shall prevent any sale or conveyance ofthe property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor. 

 

5. RELEASES. 

 

(a) In the event of a sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or asale or other disposition of all to the Capital Stock of any Guarantor, in each case to a person that is not (either before or after giving effect to such transaction) a Subsidiary of the Company, then such Guarantor (in the event of a sale or otherdisposition, by way of merger, consolidation or otherwise, of all of the capital stock of such Guarantor) or the corporation acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of suchGuarantor) will be released and relieved of any obligations under its Parent Guarantee or Subsidiary Guarantee, as applicable; *provided* that (i) the Net Proceeds of such sale or other disposition are applied in accordance with the applicableprovisions of the Indenture, including without limitation Section 4.10 of the Indenture and (ii) if the Guarantor is a party to the Environmental Indemnity Agreements, all rights afforded to such Guarantor are effectively assigned in full to thePerson formed by or surviving any consolidation or merger (if other than the Company or another Guarantor) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made, pursuant to agreements reasonablysatisfactory to the Trustee. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that such sale or other disposition was made in accordance with the provisions of the Indenture,including without limitation Section 4.10 of the Indenture, and the Trustee’s satisfaction with the agreements described in clause (ii) above, if applicable, the Trustee shall execute any documents reasonably required in order to evidence therelease of such Guarantor from its obligations under its Parent Guarantee or Subsidiary Guarantee, as applicable. 

 

(b) Any Guarantor not released from its obligations under its Parent Guarantee or Subsidiary Guarantee, as applicable, shall remain liablefor the full amount of principal of and interest on the Notes and for the other obligations of any Guarantor under the Indenture as provided in Article 11 of the Indenture. 

 

6. NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator or stockholder of theGuaranteeing Subsidiaries, as such, shall 

 

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have any liability for any obligations of the Company or any Guaranteeing Parent or Guaranteeing Subsidiary under the Notes, any Parent Guarantee, anySubsidiary Guarantee, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by accepting a Note waives and releases all such liability.The waiver and release are part of the consideration for issuance for the Notes. 

 

7. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THEEXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

 

8. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

 

9. EFFECT OF HEADINGS. The Section headings herein are for convenience onlyand shall not affect the construction hereof. 

 

10. THE TRUSTEE.The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by eachGuaranteeing Subsidiary and the Company. 

 

[REMAINDER OF THISPAGE INTENTIONALLY LEFT BLANK] 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed andattested, all as of the date first above written. 

 

ROSE HOLDINGS LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

BEMROSE GROUP LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

THE HENRY BOOTH GROUP LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

BEMROSEBOOTH LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

HBGI HOLDINGS LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

BEMROSE SECURITY & PROMOTIONAL

PRINTING LIMITED
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Director
 

**[ SignaturesContinue on Following Page ]**

 

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BEMROSEBOOTH USA INC.
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Secretary
 

C & H PACKAGING COMPANY, INC.
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Vice President and Secretary
 

AMERICAN PLASTICS COMPANY, INC.
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Vice President and Secretary
 

AMERICAN REAL ESTATE CORPORATION
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Vice President and Secretary
 

APPLETON PAPERS INC.
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Vice President and Secretary
 

PAPERWEIGHT DEVELOPMENT CORP.
By: 
/s/    Paul J. Karch        
  
Name:
 Paul J. Karch
Title:
 Vice President and Secretary
 

WTA INC.
By: 
/s/    Dale E. Parker        
  
Name:
 Dale E. Parker
Title:
 President
 

U.S. BANK NATIONAL ASSOCIATION

as Trustee
By: 
/s/    Rick Prokosch
    **Authorized Signatory**
 

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