Document:

Ex-10.2

 

EXHIBIT 10.2

Fourth Amendment

to the

Bowater Incorporated

Retirement Plan for Outside Directors

As Amended and Restated

February 26, 1999

     WHEREAS, Bowater Incorporated, a Delaware corporation (the “Corporation”), established
the Bowater Incorporated Retirement Plan for Outside Directors (the “Plan”); and

     WHEREAS, the Executive Committee of the Board of Directors of the Corporation desires to amend
the Plan;

     NOW, THEREFORE, effective May 11, 2005 (the “Effective Date”), the Plan shall be amended as
follows:

     1. No person who is not a Participating Director immediately prior to the Effective Date
shall become a Participating Director in the Plan on or after the Effective Date.

     2. For purposes of determining a Participating Director’s Final Average Earnings, amounts
payable for periods on and after the Effective Date shall be disregarded.

     3. To the extent that a Participating Director’s rights under the Plan are contingent on the
Participating Director’s age, the determination of such age shall be based on the Participating
Director’s age on the date relevant to the applicable provision of the Plan, without regard to
whether such date occurs before, on, or after the Effective Date.

     4. For purposes of determining a Participating Director’s retirement benefits in accordance
with section 4.01 of the Plan, including benefits provided to pursuant to other portions of the
Plan that are based on the determination under section 4.01 of the Plan, a Participating Director’s
years of continuous service after the Effective Date shall be disregarded.

     5. For purposes of determining whether a Participating Director has completed five years of
service and continuous service for purposes of sections 3.01, 3.02, and 3.03, periods before and
after the Effective Date shall be taken into account.

     6. Notwithstanding the foregoing, this amendment shall not apply to any person who is either:

	(a)  	A Participating Director who is not a member of the Board on December 31, 2005.

	(b)  	A Participating Director who, as of the Effective Date, had completed five years of service
with the Board and who has elected in accordance with the procedures established by the
Company not to have this amendment apply to him.

 

 

     7. Subject to the foregoing, the Plan shall remain in full force and effect on and after the
Effective Date.

Capitalized terms not defined in this amendment shall have the meaning ascribed to them in the
Plan.

     IN WITNESS WHEREOF, Bowater Incorporated has caused this Fourth Amendment to be executed by a
duly authorized member of the Executive Committee of the Board of Directors as of the
23rd day of March, 2005.

	 	 	 	 	 
	 	 	BOWATER INCORPORATED
	 
	 	 	 	 
	 	 	Executive Committee of the Board of Directors
	 
	 	 	 	 
	

	 	By:
	 	          /s/ Arnold M. Nemirow
	

	 	 	 	 
	

	 	 	 	Arnold M. Nemirow

2Ex-10.3

 

EXHIBIT 10.3

EXECUTION COPY

AMENDMENT NO. 1

          AMENDMENT NO. 1 dated as of April 4, 2005, between BOWATER INCORPORATED, a Delaware
corporation (the “Company”). BOWATER CANADIAN FOREST PRODUCTS, INC., a Canadian corporation
(“BCFPI” and, together with the Company, the
“Initial Borrowers”), each of the Subsidiaries of the
Company from time to time designated as “Subsidiary
Borrowers” pursuant to the Credit Agreement
(each, a “Subsidiary Borrower” and, together with
the Initial Borrowers, the “Borrowers”),
the SUBSIDIARY GUARANTORS party hereto, the LENDERS party hereto, JPMORGAN CHASE BANK, N.A.
(formerly known as JPMorgan Chase Bank) and THE BANK OF NOVA SCOTIA, as the Administrative Agents.

          The Borrowers, the Subsidiary Guarantors, the Lenders and the Administrative Agents are
parties to a Credit Agreement dated as of April 22, 2004 (as heretofore modified and supplemented
and in effect on the date hereof, the “Credit Agreement”), providing, subject to the terms and
conditions thereof, for loans and extensions of credit to be made by said Lenders to the Borrowers
in an aggregate principal or face amount not exceeding U.S. $435,000,000 (which may, pursuant to
the Credit Agreement, be increased to U.S. $500,000,000) at any one time outstanding.

          The Borrowers wish to amend the Credit Agreement in certain respects. Accordingly,
the parties hereto hereby agree as follows:

          Section 1. Definitions. Except as otherwise defined in this Amendment No. 1, terms
defined in the Credit Agreement are used herein as defined therein.

          Section 2. Amendments. Subject to the satisfaction of the conditions precedent
specified in Section 4 below, but effective as of the date hereof, the Credit Agreement shall be
amended as follows:

          2.01. References in the Credit Agreement (including references to the Credit
Agreement as amended hereby) to “this Agreement” (and indirect references such as
“hereunder”, “hereby”, “herein” and, “hereof”). shall be deemed to be references to the Credit
Agreement as amended hereby.

          2.02. Indebtedness of the Company. Section 7.03(a)(v) is hereby amended in its
entirety to read as follows:

     “(v) unsecured Guarantees by the Company of Indebtedness of Subsidiaries in an
aggregate principal amount up to but not exceeding U.S. $100,000,000;”

Amendment No. 1

 

 

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     2.03. Indebtedness of Subsidiaries. Section 7.03(b)(x) is hereby amended in its
entirety to read as follows:

     “(x) other Indebtedness of Subsidiaries of the Company, of which no more than U.S.
$100,000,000 may be secured at any time, provided that the aggregate outstanding
principal amount of such Indebtedness, together with the aggregate amount of Indebtedness
(whether of the Company or Subsidiaries of the Company) secured by Liens permitted under
Section 7.02(1), shall not at any time exceed 5% of Total Assets at such time.”

          2.04. Consolidated Net Worth. Section 7.04 is hereby amended in its entirety to
read as follows:

     “SECTION 7.04 Consolidated Net Worth. The Company will not permit Consolidated
Net Worth at any time to be less than the sum of (a) U.S. $1,400,000,000 plus (b)
50% of the Consolidated Net Income for each fiscal quarter of the Company from and including
the first fiscal quarter in 2004 to and including the fiscal quarter ending on (or most
recently ended prior to) such time; provided that, if there is a consolidated net
loss for any such fiscal quarter, Consolidated Net Income for such fiscal quarter shall, for
the purposes of clause (b) of this Section, be deemed to be zero.”

          2.05. Total Debt to Total Capital Ratio. Section 7.05(a) is hereby amended in its
entirety to read as follows:

     “(a) Total Debt to Total Capital Ratio. The Company will not permit the
ratio of (a) Total Debt to (b) Total Capital to exceed 0.65 to 1 at any time.”

          Section 3. Representations and Warranties. The Borrowers represent and warrant to the
Lenders that the representations and warranties set forth in Article IV of the Credit Agreement are
true and complete on the date hereof as if made on and as of the date hereof (or, if any such
representation or warranty is expressly stated to have been made as of a specific date, as of such
specific date) and as if each reference in said Article IV to “this Agreement” included reference
to this Amendment No. 1.

          Section 4. Condition Precedent. The amendments set forth in Section 2 hereof shall
become effective, as of the date hereof, upon (i) the execution and delivery of counterparts of
this Amendment No. 1 by the Borrowers and the Required Lenders and (ii) the receipt by the U.S.
Administrative Agent, for the account of each Lender that has executed and delivered this Amendment
No. 1 not later than 5:00 p.m. New York City time on April 4, 2005, an amendment fee in an amount
equal to 10 bps of the aggregate amount of such Lender’s Revolving Credit Exposure.

Amendment No. 1

 

 

- 3 -

          Section 5.
Miscellaneous. Except as provided herein, the Credit Agreement shall
remain unchanged and in full force and effect. This Amendment No. 1 may be executed in any number
of counterparts, all of which taken together shall constitute one and the same amendatory
instrument and any of the parties hereto may execute this Amendment No. 1 by signing any such
counterpart. This Amendment No. 1 shall be governed by, and construed in accordance with, the law
of the State of New York.

Amendment No. 1

 

 

- 4 -

     IN WITNESS WHEREOF, this Amendment No. 1 has been duly executed as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	BOWATER INCORPORATED
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey	 	 
	

	 	 	 	Title: Senior Vice President and	 	 
	

	 	 	 	          Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BOWATER CANADIAN FOREST PRODUCTS INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey	 	 
	

	 	 	 	Title: Vice President and Treasurer	 	 

Amendment No. 1

 

 

- 5 -

SUBSIDIARY GUARANTORS

	 	 	 	 	 	 	 
	 	 	BOWATER ALABAMA INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey

Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	BOWATER NEWSPRINT SOUTH INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey	 	 
	

	 	 	 	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	BOWATER MISSISSIPPI LLC
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ David G. Maffucci	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: David G. Maffucci	 	 
	

	 	 	 	Title: Manager	 	 
	 
	 	 	 	 	 	 
	 	 	BOWATER MISSISSIPPI HOLDINGS INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey	 	 
	

	 	 	 	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	BOWATER NUWAY INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ William G. Harvey	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: William G. Harvey	 	 
	

	 	 	 	Title: Vice President and Assistant Treasurer	 	 

Amendment No. 1

 

 

- 6 -

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,
	

	 	 	 	individually and as U.S. Administrative Agent
	 
	 	 	 	 
	

	 	By
	 	/s/ Peter S. Predun
	

	 	 	 	 
	

	 	 
	 	Name: Peter S. Predun
	

	 	 
	 	Title: Vice President
	 
	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA,
	

	 	 	 	individually and as Canadian Administrative Agent
	 
	 	 	 	 
	

	 	By	 	[ILLEGIBLE]
	

	 	 	 	 
	

	 	 	 	Name: [ILLEGIBLE]
	

	 	 	 	Title: Managing Director 

Amendment No. 1

 

 

- 7 -

	 	 	 	 	 
	 	LENDERS 

BANK OF MONTREAL 

 	 
	 	By:  	          /s/ Bruno Jarry
 	 
	 	 	Name:  	Bruno Jarry      	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	LENDERS

SUNTRUST BANK 

 	 
	 	By:  	/s/ Kelly Gunter
 	 
	 	 	Name:  	Kelly Gunter  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LENDERS 

Wachovia Bank, N.A.

 	 
	 	By:  	/s/ Shawn Janko
 	 
	 	 	Name:  	Shawn Janko  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LENDERS 

UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/ Marie Haddad
 	 
	 	 	Marie Haddad 	 
	 	 	Associate Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	         /s/ Edward L. Cripps
 	 
	 	 	Edward L. Cripps 	 
	 	 	Director 	 
	 

	 	 	 	 	 
	 	LENDERS 

Toronto Dominion (Texas) LLC

 	 
	 	By:  	/s/ Neva Nesbitt
 	 
	 	 	Name:  	Neva Nesbitt 	 
	 	 	Title:  	Authorized Agent 	 
	 

	 	 	 	 	 
	 	LENDERS 

THE BANK OF NEW YORK

 	 
	 	By:  	/s/ David C. Siegel
 	 
	 	 	Name:  	David C. Siegel  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LENDERS 

Carolina First Bank

 	 
	 	By:  	/s/ Kevin M. Short
 	 
	 	 	Name:  	Kevin M. Short 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	LENDERS 

REGIONS BANK 

 	 
	 	By:  	/s/ Elaine B. Passman
 	 
	 	 	Name:  	Elaine B. Passman  	 
	 	 	Title:  	Asst. Vice President 	 
	 

Amendment No. 1

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