Document:

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:

 

 

“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
    	
 
    

 

(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

 

(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

 

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

 

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

 

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

 

 

	
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

 

 

	
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

 

 

	
 
    	
BARCLAYS BANK PLC,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Mozer
    
	
 
    	
Name:
    	
Michael   J. Mozer
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
FIFTH   THIRD BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen C. Watts
    
	
 
    	
Name:
    	
Stephen   C. Watts
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
TD BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Perlman
    
	
 
    	
Name:
    	
David   Perlman
    
	
 
    	
Title:
    	
Senior Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
KEYBANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Gelle
    
	
 
    	
Name:
    	
James   Gelle
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
PNC BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Patrick Flaherty
    
	
 
    	
Name:
    	
Patrick   Flaherty
    
	
 
    	
Title:
    	
Assistant Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
COBANK, ACB,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Hal Nelson
    
	
 
    	
Name:
    	
Hal   Nelson
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
AMERICAN AGCREDIT, PCA
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Balok
    
	
 
    	
Name:
    	
Michael   J. Balok
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
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

 

 

	
 
    	
THE NORTHERN TRUST COMPANY,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   M. Scott Randall
    
	
 
    	
Name:
    	
M.   Scott Randall
    
	
 
    	
Title:
    	
Officer
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
FIRST   TENNESSEE BANK NATIONAL
   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sharon Shipley
    
	
 
    	
Name:
    	
Sharon   Shipley
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
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

 

 

	
 
    	
MANUFACTURERS BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sean R. Walker
    
	
 
    	
Name:
    	
Sean   R. Walker
    
	
 
    	
Title:
    	
Senior Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

	
 
    	
FIRSTMERIT BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tim Daniels
    
	
 
    	
Name:
    	
Tim   Daniels
    
	
 
    	
Title:
    	
Vice President
    

 

KAPSTONE KRAFT PAPER CORPORATION

SECOND AMENDMENT

 

 

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
    

 

 

	
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
    

 

 

	
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
    

 

 

*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.

 

 

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
    

 

 

	
(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 InsuranceExhibit 10.(a)

 

STEPHEN E. ROTH

DIRECT LINE: 202.383.0158

E-mail: steve.roth@sutherland.com

 

 

November 27, 2012

 

 

Board of Directors

Protective Life and Annuity Insurance Company

2801 Highway 201 South

Birmingham, Alabama 35223

 

Directors:

 

We hereby consent to the reference to our name under the caption “Legal Matters” in the statement of additional information filed as part of post-effective amendment number 3 to the registration statement on Form N-4 (File No. 333-179963) filed by Protective Life and Annuity Insurance Company and Variable Annuity Account A of Protective Life with the Securities and Exchange Commission.  In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.

 

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
SUTHERLAND   ASBILL & BRENNAN LLP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Stephen E. Roth
    
	
 
    	
 
    	
Stephen   E. Roth

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]