Document:

Exhibit 10.1  (W0658030.DOC;1)

Exhibit 10.1

Execution Version

FIRST AMENDMENT TO

ASSET PURCHASE AGREEMENT

This FIRST AMENDMENT, dated as of June 26, 2013 (this “Amendment”), to that certain Asset Purchase Agreement, dated as of May 18, 2013 (as amended hereby, the “Agreement”), by and among Specialty Papers Acquisition, LLC (the “Buyer”), Wausau Paper Mills, LLC (the “Seller”), Wausau Paper Corp. (the “Seller Parent”), and, solely with respect to Section 13.19, Specialty Papers Intermediate Holdings, Inc. and Specialty Paper Holdings, L.P.  All capitalized terms used herein but not defined herein shall have the meanings set forth in the Agreement.

W I T N E SS E T H:

WHEREAS, the transfer of certain assets to be transferred at Closing pursuant to the Agreement requires FERC Approval (as defined below) and such FERC Approval has not been obtained as of the date hereof, but is expected to be obtained on or about August 1, 2013; 

WHEREAS, until FERC Approval is obtained, the Seller shall (i) retain title to the licenses for the Rhinelander Hydroelectric Project, FERC No. 2161 and the Mosinee Hydroelectric Project, FERC No. 2207 and the real property related to such licenses; (ii) lease a portion of the real property of the Mosinee Facility and the Rhinelander Facility to the Buyer or one or more of its Affiliates; (iii) enter into a power sales agreement with the Buyer or one or more of Affiliates with respect to the power generated by the Rhinelander Hydroelectric Project, FERC No. 2161 and the Mosinee Hydroelectric Project, FERC No. 2207 (the “FERC Projects”); and (iv) enter into an operating and management agreement with the Buyer or one or more of its Affiliates with respect to the operation of the FERC Projects;

WHEREAS, in accordance with Section 13.13 of the Agreement the parties are hereby making appropriate amendments to the Agreement as necessary to permit the Closing prior to FERC Approval and make such other amendments as are agreed between the parties; and

WHEREAS, in accordance with Section 7.18 and Section 13.2 of the Agreement, the Seller is permitted to provide an update to the Disclosure Letter, and the Seller has, contemporaneously with the date of this Amendment, provided the Buyer with a first amendment to the Disclosure Letter (the “First Disclosure Letter Amendment”).

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, each of the Seller, the Seller Parent and the Buyer agrees as follows:

1.

Section 1.1 of the Agreement is hereby amended by adding the following definitions:

“Escrow Agent” means Chicago Title Insurance Company.

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“Escrow Agreement” means the escrow agreement in a form agreed between the parties.

“FERC Approval” approval from the Federal Energy Regulatory Commission with respect to the transfer of the FERC Licenses from Seller to Buyer or one of its Affiliates.

“FERC Licenses” means the Federal Energy Regulatory Commission licenses for the Rhinelander Hydroelectric Project, FERC No. 2161 and the Mosinee Hydroelectric Project, FERC No. 2207.

“Mosinee Mill Property” means the property set forth on Schedule A to this Amendment.

“O&M Agreement” means an operating and management agreement between the Seller and the Buyer or one of its Affiliates in a form agreed between the parties.

“Power Sales Agreement” means a power sales agreement between the Seller and the Buyer or one of its Affiliates in a form agreed between the parties.

“Rhinelander Mill Property” means the property set forth on Schedule B to this Amendment.

2.

The Agreement is hereby amended by adding a new Section 2.10  as follows:

“Section 2.10

FERC Approval.  In furtherance of, and not in limitation of, Section 2.9 and notwithstanding any other provision to the contrary herein,

(a)

until FERC Approval has been obtained:

(i)

the Seller shall retain title to the FERC Licenses, the Mosinee FERC Project Lands, the Mosinee Mill Property, the Rhinelander FERC Project Lands and the Rhinelander Mill Property (collectively, the “Retained Property”);

(ii)

the limitations set forth in Section 7.1 (other than the obligations contained in clauses (iii), (iv), (v), and (xii) of the introductory paragraph of Section 7.1 or as otherwise provided in the Mosinee Mill Lease or the Rhinelander Mill Lease) shall continue to apply with respect to the Retained Property;

(iii)

the Seller shall lease a specified portion of the Mosinee Mill Property to the Buyer or one of its Subsidiaries pursuant to a lease in a form agreed between the parties (the “Mosinee Mill Lease”); and

(iv)

the Seller shall lease a specified portion of the Rhinelander Mill Property to the Buyer or one of its Subsidiaries pursuant to a lease in a form agreed between the parties (the “Rhinelander Mill Lease”).

(b)

at Closing:

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(i)

the Seller and the Buyer or one of its Affiliates shall enter into the Mosinee Mill Lease;

(ii)

the Seller and the Buyer or one of its Affiliates shall enter into the Rhinelander Mill Lease;

(iii)

the Seller and the Buyer or one of its Affiliates shall enter into the Power Sales Agreement;

(iv)

the Seller and the Buyer or one of its Affiliates shall enter into the O&M Agreement;

(v)

the Seller, the Buyer or one of its Affiliates and the Escrow Agent shall enter into the Escrow Agreement; and

(vi)

the Seller shall deliver, or cause to be delivered, to the Escrow Agent undated Warranty Deeds with respect to the Mosinee FERC Project Lands, the Mosinee Mill Property, the Rhinelander FERC Project Lands and the Rhinelander Mill Property (collectively, the “Escrowed Warranty Deeds”).

(c)

if FERC Approval is obtained and the other conditions of the Escrow Agreement have been satisfied, the Escrowed Warranty Deeds shall be recorded in the applicable land records and the Mosinee Mill Lease, the Rhinelander Mill Lease, the Power Sales Agreement and the O&M Agreement shall terminate in accordance with their terms and the Escrow Amount (as defined below), if any, shall be returned to the Seller.

(d)

if FERC Approval has not been obtained on or before December 31, 2013, the Seller shall deposit, on such date, or shall cause to be deposited on such date, with the Escrow Agent cash in the amount of Two Million and No/100ths Dollars ($2,000,000.00) (the “Escrow Amount”), by wire transfer of immediately available funds to an account designated in writing by the Escrow Agent (the “Escrow Account”).

(e)

until FERC Approval is obtained, the parties shall (i) use their best efforts to obtain FERC Approval, (ii) continue to abide by the Mosinee Mill Lease, the Rhinelander Mill Lease, the Power Sales Agreement and the O&M Agreement and (iii) commencing on September 1, 2013, take such steps as are necessary to convey the property that is the subject of the Mosinee Mill Lease and the Rhinelander Mill Lease in fee, including subdividing the parcels.”

3.

The Agreement is hereby amended by adding a new Section 3.2(c) as follows:

“(c)

The Seller shall deliver the Escrowed Warranty Deeds to the Escrow Agent.”

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4.

The Agreement is hereby amended by adding a new Section 9.17  as follows:

“Section 9.17

Additional Transaction Documents.  The Seller shall have delivered to the Buyer duly executed versions of (i) the Mosinee Mill Lease, (ii) the Rhinelander Mill Lease, (iii) the Power Sales Agreement and (iv) the O&M Agreement.”

5.

The Agreement is hereby amended by adding a new Section 9.18  as follows:

“Section 9.18

Escrow Agreement.  The Seller and Escrow Agent shall have delivered to the Buyer the duly executed Escrow Agreement.”

6.

The Agreement is hereby amended by adding a new Section 10.11 as follows:

“Section 10.11

Additional Transaction Documents.  The Buyer or one of its Affiliates shall have delivered to the Seller duly executed versions of (i) the Mosinee Mill Lease, (ii) the Rhinelander Mill Lease, (iii) the Power Sales Agreement, (iv) the O&M Agreement and (v) the Escrow Agreement.”

7.

The Agreement is hereby amended by adding a new Section 7.22 as follows:

“Section 7.22

Submission of Information to WDNR.  Within seven (7) Business Days following the Closing Date, the Seller or one of its Affiliates shall deliver to the Wisconsin Department of Natural Resources (the “WDNR”), with a copy to the Buyer or one of its Affiliates, notice that the Seller is transferring the Mosinee Landfill and Brokaw Landfill to the Buyer or one of its Affiliates. Within twenty (20) Business Days following the delivery of such notice, the Buyer or one of its Affiliates shall deliver to the WDNR the following information:  (i) a copy of the executed unrecorded warranty deed pursuant to which the Seller conveyed the Mosinee Landfill to Expera Mosinee, LLC, a Delaware limited liability company (the “Mosinee Landfill Operator”); (ii) a copy of the executed unrecorded warranty deed pursuant to which the Seller conveyed the Brokaw Landfill to Expera Brokaw, LLC, a Delaware limited liability company (the “Brokaw Landfill Operator”); (iii) a letter from the Mosinee Landfill Operator describing its ownership of the Mosinee Landfill and acknowledging that the Mosinee Landfill Operator is subject to all license and plan approval requirements that are applicable to the Mosinee Landfill, including without limitation those related to long-term care, and requesting a transfer of the operating license relating to the Mosinee Landfill; (iv) a letter from the Brokaw Landfill Operator describing its ownership of the Brokaw Landfill and acknowledging that the Brokaw Landfill Operator is subject to all license and plan approval requirements that are applicable to the Brokaw Landfill, including without limitation those related to long-term care, and requesting a transfer of the operating license relating to the Brokaw Landfill; (v) all fees required by the WDNR for the transfer of the operating licenses relating to the Mosinee Landfill and the Brokaw Landfill, together with any other fees required by the WDNR; (vi) information relating to 

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the operator and license facility manager for the Mosinee Landfill and the Brokaw Landfill to the extent required by the WDNR; (vii) proof of financial responsibility for the Mosinee Landfill Operator and the Brokaw Landfill Operator that is deemed acceptable by the WDNR; and (viii) any other documentation or information requested by the WDNR in connection with the transfer of the operating permits for or otherwise relating to the Mosinee Landfill and the Brokaw Landfill following the Closing Date; provided that it is understood that this Section 7.22 shall not modify or alter any other obligation of the parties under this Agreement.”

8.

Section 2.3(c) of the Agreement shall be amended in its entirety to read as follows:

“(c)

subject to Section 7.15(s), all accrued salaries, wages (and related withholding and payroll taxes) and Accrued Vacation in respect of Transferred Employees to the extent accrued in the ordinary course of business consistent with past practice and constitute Current Liabilities included in Section 2.3(a);”

9.

The first sentence of Section 7.15(g) shall be amended in its entirety to read as follows:

“The Buyer or the Buyer’s employee benefit plans shall be responsible for all health and welfare claims incurred on and after the Closing Date by the Transferred Employees and their eligible dependents.”

10.

The third sentence of Section 7.15(g) shall be amended in its entirety to read as follows:

“The Seller, its Affiliates and/or the Seller Benefit Plans shall be responsible for all health and welfare claims incurred prior to the Closing Date by the Transferred Employees and their eligible dependents, provided that such claims are submitted within the timeframes required by the respective plans.”

11.

The first sentence of Section 7.15(h) shall be amended in its entirety to read as follows:

“The Buyer shall be responsible for all workers’ compensation claims relating to any Transferred Employees if the incident or alleged incident giving rise to the claim occurred on or after the Closing Date.”

12.

The Agreement is amended by renaming Section 7.15(s) as Section 7.15(t) and adding a new Section 7.15(s) to read as follows:

“(s)

The Buyer or one of its Affiliates shall be responsible for all salary and wages (and related withholding and payroll taxes) due to Transferred Employees in respect of their employment with the Buyer or its Affiliates as of the Closing Date (or such later transfer date set forth in Section 7.15(c) with respect to any Inactive Employee); provided, however, that, in respect of the period beginning on the Closing Date and ending on the first scheduled payroll 

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date following the Closing Date, the Seller (i) shall pay or cause to be paid, and hereby assumes the Liabilities of the Buyer and its Affiliates for, all accrued salaries and wages (and related withholding and payroll taxes) payable to non-collectively bargained Transferred Employees (minus any applicable deductions for such Transferred Employees’ participation in the health and welfare plans of the Buyer and its Affiliates) and (ii) shall make, or cause to be made, in respect of such Transferred Employees, all applicable employee deductions and company contributions to the Wausau Paper Corp. Savings and Investment Plan.  The amounts paid by Seller pursuant to clauses (i) and (ii) of the previous sentence shall be taken into account for purposes of the determination of Net Working Capital.   In connection with such payroll services, Seller shall cause all withholding, tax payments and other deductions to be made in a timely manner and consistent with Seller’s business practices immediately prior to the Closing.  For the avoidance of doubt, any and all Liabilities arising out of, relating to, or resulting from the Wausau Paper Corp. Savings and Investment Plan shall be Retained Employee Liabilities.”

13.

The Agreement is hereby amended by adding a new Section 7.23 as follows:

“Section 7.23

Obligations of Seller Regarding Railroad Crossing at Mosinee Facility.  Seller acknowledges and agrees that Wisconsin Central Ltd. (the “Railroad”), the owner of a railroad benefitting the Mosinee Facility, has indicated that (a) the 32’ private crossing of the railroad at the Mosinee Facility (the “Private Crossing”), of which the Seller is a licensee, is beyond its useful life and in need of full rehabilitation (the “Railroad Improvements”); (b) the cost of the Railroad Improvements is approximately Thirty Three Thousand Six Hundred Thirty-One and No/100ths Dollars ($33,631); (c) the Railroad Improvements will be performed by contractors on behalf of the Railroad after the Closing Date; and (d) the cost for the Railroad Improvements is chargeable to Seller as licensee for the Private Crossing.  Seller agrees that it will be responsible for and shall promptly pay the cost of the Railroad Improvements.

14.

Section 2.1(p) of the Agreement is amended to read as follows:

(p) The 8,160 shares of capital stock held by the Seller Parent in Wisconsin Valley Improvement Corporation, a corporation organized under Section 182.70 of the Wisconsin Statutes (the “WVIC Stock); provided, however, that the WVIC Stock shall be transferred from Seller Parent to Buyer within five (5) Business Days after FERC Approval is obtained.

15.

The Buyer acknowledges that, contemporaneously with the date of this Amendment, the Seller has provided the Buyer with the First Disclosure Letter Amendment, and the Buyer accepts the First Disclosure Letter Amendment as of the date of this Amendment.

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16.

Except as expressly amended or modified hereby, the terms and conditions of the Agreement shall continue in full force and effect.

17.

The Seller Parent acknowledges and agrees that it shall cause the Seller to comply with its obligations under the Agreement  and acknowledges and agrees that any action taken by it will be deemed to constitute an action taken through an Affiliate of Seller for purposes of the Agreement. 

18.

This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

19.

This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. Signatures delivered by facsimile shall be effective for all purposes.

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.

WAUSAU PAPER MILLS, LLC

By:

HENRY C. NEWELL

     Name:  Henry C. Newell

     Title:    President/Treasurer

WAUSAU PAPER CORP.

By:

HENRY C. NEWELL

     Name:  Henry C. Newell

     Title:    President

[Signature Page to Amendment to APA]

SPECIALTY PAPERS ACQUISITION, LLC

By:

RAQUEL PALMER

     Name:  Raquel Palmer

     Title:    President

[Signature Page to Amendment to APA]

Solely with respect to Section 13.19, the signatories below:

SPECIALTY PAPERS INTERMEDIATE HOLDINGS, INC.

By:  

RAQUEL PALMER

Name:  Raquel Palmer

Title:    President

SPECIALTY PAPER HOLDINGS, L.P.

By:

KPS Investors III (AIV), LTD.

Its:

General Partner

By:  

RAQUEL PALMER

Name:  Raquel Palmer

Title:    President

 

[Signature Page to Amendment to APA]

Schedule A

Mosinee Mill Property

PARCEL II:

Government Lot seven (7) in Section twenty-nine (29), Township twenty-seven (27) North, Range seven (7) East, in the City of Mosinee, Marathon County, Wisconsin; EXCEPTING the South 417.42 feet of the North 450.42 feet of that part lying East of Highway 51; also EXCEPTING the railroad right of way; and EXCEPTING those parcels described in deeds recorded in the office of the Register of Deeds for Marathon County, Wisconsin, in:

Deed Book 352 on page 565;

Deed Book 361 on page 494;

Deed Book 372 on page 403;

Deed Book 445 on page 46;

Micro-Record 282 on page 992;

Micro-Record 305 on page 1002;

Deed Book 146 on page 511;

Deed Book 147 on page 389;

Deed Book 150 on page 92;

Deed Book 156 on page 318; and

Document No. 1567172; but including that part thereof described in Record Book 29 on page 493;

subject to easements of record.

Tax Key: 53. 292707. GL. 7. 2

PIN: 37-251-4-2707-295-9964

 

Schedule B

Rhinelander Mill Property

Parcel 30: (RH 9106-1305)

Parcel A:

A strip of land 100 feet in width extending over and across part of Government Lot 11, Section 6, Township 36 North, Range 9 East of the Fourth Principal Meridian, said strip of land being 50 feet in width on each side of the center line of the main track (now removed) of the Milwaukee, Lake Shore and Western Railway Company (now the Chicago and North Western Railway Company), as said main track center line was originally located and established across said Section 6, and lying Southeasterly of the Northerly line of Phillip Street and Westerly of the Wisconsin River.

AND

A strip of land 100 feet in width extending over and across part of Government Lots 1 and 2, Section 6, Township 36 North, Range 9 East of the Fourth Principal Meridian, said strip of land being 50 feet in width on each side of the center line of the main track (now removed) of the Milwaukee, Lake Shore and Western Railway Company (now the Chicago and North Western Railway Company), as said main track center line was originally located and established across said Section 6, and lying Westerly of the Westerly line of Thayer Street and Easterly of the Wisconsin River.

ALSO

A strip of land 50 feet in width, extending Northwesterly from the Northerly line of the above described 100 foot wide strip, across part of said Government Lot 1, said strip of land being 25 feet in width on each side of the center line of the main branch or spur track (now removed) of the Milwaukee, Lake Shore and Western Railway Company (now the Chicago and North Western Railway Company), as said spur track center line was originally located, and lying Southeasterly of a line drawn radially to said spur track center line at a point distant 200 feet Southeasterly from the Southerly line of Phillips Street, as measured along the Southwesterly right of way of said spur track.

Parcel B:

All of the unplatted part of Government Lot 11, Section 6, Township 36 North, Range 9 East, excepting premises conveyed in Volume 110 of Deeds at page 374 and excepting the right of way of the Chicago and Northwestern Railroad described in Volume 2 of Deeds at page 405, lying easterly of the Mill Race.

All of the unplatted part of Government Lot 10, Section 6, Township 36 North, Range 9 East, except premises conveyed for Railroad right of way in Volume 9 of Misc. on page 197 and in Volume 2 of Deeds on page 405, lying easterly of the Mill Race.

Together with the Dam across the Wisconsin River and other rights as conveyed in Vol. 41 of Deeds at page 72.

EXCEPT that part described in Document No. 680410.

Parcel C:

Lots 4, 5, 6 and 7 of Block 4 of the West Park Addition to the City of Rhinelander, according to the recorded Plat thereof.Exhibit 10.2  (W0658037.DOC;1)

Exhibit 10.2

THIRD AMENDMENT TO CREDIT AGREEMENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of June [26], 2013 is by and among Wausau Paper Corp., a Wisconsin corporation (the “Borrower”), the Lenders identified on the signature pages hereto and Bank of America, N.A., as Administrative Agent (the “Administrative Agent”), Swing Line Lender and an L/C Issuer.

W I T N E S S E T H

WHEREAS, a $125 million revolving credit facility has been established in favor of the Borrower pursuant to the terms of that certain Credit Agreement dated as of June 23, 2010 (as amended by that certain First Amendment to Credit Agreement dated as of October 26, 2011, as amended by that certain Second Amendment to Credit Agreement dated as of February 3, 2012 and as further amended, restated, modified or supplemented from time to time, the “Credit Agreement”) among the Borrower, certain Subsidiaries of the Borrower from time to time party thereto (the “Guarantors”), the Lenders from time to time party thereto (the “Lenders”) and the Administrative Agent;

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement to modify certain provisions contained therein; and

WHEREAS, the Required Lenders have agreed to amend the Credit Agreement on the terms and subject to the conditions set forth herein.

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 satisfaction of the conditions precedent set forth in Section 3 hereof, as of the date hereof the Credit Agreement is hereby amended as follows: 

(a)

The definition of “Aggregate Commitments” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Aggregate Commitments” means the Commitments of all the Lenders.  The Aggregate Commitments as of the Third Amendment Effective Date shall be $100,000,000.

(b)

The definition of “Eurodollar Rate” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Eurodollar Rate” means:

(a)

for any Interest Period with respect to a Eurodollar Rate Committed Loan, the rate per annum equal to (i) the British Bankers Association LIBOR Rate or the successor thereto if the British Bankers Association is no longer making a LIBOR rate 

available (“LIBOR”), as published by Reuters (or such other commercially available source providing quotations of LIBOR as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two London Banking Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or, (ii) if such rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Committed Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two London Banking Days prior to the commencement of such Interest Period; and

(b)

for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) LIBOR, at approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the London interbank Eurodollar market at their request at the date and time of determination.  

(c)

The definition of “Loan Documents” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Loan Documents” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, each Note, each Issuer Document, any Guaranty (if any), any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of Section 2.15 of this Agreement, and the Fee Letter. 

(d)

The following new definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

“Specialty Paper Disposition” means Wausau Paper Mills, LLC’s sale of its specialty paper business and assets substantially defined as all specialty paper finished goods inventories, customer accounts receivable, intangible assets as well as substantially all plant, property, equipment, inventories and related assets at its facilities in Brainerd, Minnesota, Rhinelander, Wisconsin and Mosinee, Wisconsin.

“Third Amendment” means that certain Third Amendment to Credit Agreement dated as of the Third Amendment Effective Date by and among the Borrower, the Lenders and the Administrative Agent.

“Third Amendment Effective Date” means June [26], 2013.

(e)

Section 7.04(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

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“(a)

(i) More than 20% of Consolidated Total Assets during any fiscal year measured as of the last day of the immediately preceding fiscal year or (ii) more than 40% of Consolidated Total Assets measured as of March 31, 2010 during the term of this Agreement; provided, however, that so long as the assets subject to each of the Printing and Writing Disposition and the Timberlands Disposition do not exceed 24 percent of Consolidated Total Assets, such assets shall be excluded from the definition of Consolidated Total Assets solely for the purposes of determining compliance with Section 7.04(a)(i) but such assets shall be included in the definition of Consolidated Total Assets for the purposes of determining compliance with Section 7.04(a)(ii) and for all other purposes; provided, further, that so long as (x) the assets subject to the Specialty Paper Disposition do not exceed 36 percent of Consolidated Total Assets and (y) at least $70,000,000 (or, if less, an amount equal to the aggregate amount of all Indebtedness of the Borrower outstanding under this Agreement and all Indebtedness of the Borrower consisting of commercial paper issued by the Borrower) of the proceeds from the sale of the assets subject to the Specialty Paper Disposition are used to repay Indebtedness of the Borrower outstanding under this Agreement or Indebtedness of the Borrower consisting of commercial paper issued by the Borrower within thirty (30) days after the date upon which the Specialty Paper Disposition is consummated, such assets shall be excluded from the definition of Consolidated Total Assets solely for the purposes of determining compliance with each of clauses (i) and (ii) of this Section 7.04(a) but such assets shall be included in the definition of Consolidated Total Assets for all other purposes;”

(f)

Section 8.01(o) of the Credit Agreement is hereby amended and restated in its entirety as follows:

“(o)

ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in the enforcement by the PBGC of liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of such amount as is set forth in Schedule 8.01(o) with respect to each Pension Plan maintained by the Borrower on the date hereof, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $10,000,000.”

(g)

Schedules 2.01 and 8.01(o) to the Credit Agreement are hereby amended and restated in their entirety in the form attached hereto as Annex I.

3.

Conditions Precedent.  This Amendment shall become effective as of the date hereof upon receipt by the Administrative Agent of the following:

(a)

counterparts of this Amendment duly executed by the Borrower, the Guarantors (if any) and the Required Lenders; 

(b)

a fully-executed copy of an amendment to the 2010 Note Agreement (the “2010 Note Amendment”) evidencing amendments to the 2010 Note Agreement, in a manner similar to and consistent with the amendments set forth in this Amendment, mutatis mutandis, and otherwise reasonably satisfactory to the Administrative Agent; 

(c)

an amendment fee in an amount equal to 10 basis points of the Commitment (after giving effect to this Amendment) of each Lender that executes and delivers a counterpart of 

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this Amendment to the Administrative Agent prior to 1:00 p.m. Eastern time on June 13, 2013 (each such fee, an “Amendment Fee”; and collectively, the “Amendment Fees”); provided that, notwithstanding the foregoing, the amount (in basis points) of such Amendment Fees received by each Lender pursuant to this Section 3(c) shall not be less than the amount (in basis points) of fees paid to the holders of the 2010 Senior Notes in connection with the 2010 Note Amendment; and

(d)

all reasonable costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of Moore & Van Allen PLLC.

4.

Representations and Warranties.  Each of the Borrower and each Guarantor (if any) hereby represents and warrants that (a) it has the requisite corporate power and authority to execute, deliver and perform this Amendment, (b) it is duly authorized to, and has been authorized by all necessary corporate action to, execute, deliver and perform this Amendment, (c) no consent, approval, authorization or order of or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by it of this Amendment, (d) the execution, delivery and performance by it of this Amendment do not and will not conflict with, result in a breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of either the Borrower or the Guarantors (if any) or any of their Subsidiaries or any indenture or other material agreement or instrument to which any such Person is a party or by which any of its properties may be bound or the approval of any Governmental Authority relating to such Person except as could not reasonably be expected to have a Material Adverse Effect, (e) the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct on and as of the Third Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Amendment, the representations and warranties contained in Section 5.13 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement and (f) after giving effect to this Amendment, no Default or Event of Default exists under the Credit Agreement on and as of the date hereof or will occur as a result of the transactions contemplated hereby.

5.

No Other Changes; Ratification.  Except as expressly modified 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 amended by this Amendment.  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 Amendment shall be deemed a Loan Document as referred to, and defined in, the Credit Agreement for all purposes.

6.

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

7.

Counterparts; Facsimile; Email.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original and it shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart.  Delivery of an executed counterpart of this Amendment by telecopy or email (in PDF format) by any party hereto shall be effective as such party’s original executed counterpart.

4

8.

Governing Law.  This Amendment 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.

9.

Entirety.  This Amendment 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.  This Amendment and the other 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.

10.

Acknowledgment of Loan Parties.  Each of the Loan Parties affirms and acknowledges that this Amendment constitutes a Loan Document under the Credit Agreement and any reference to the Loan Documents under the Credit Agreement contained in any notice, request, certificate or other document executed concurrently with or after the execution and delivery of this Amendment shall be deemed to include this Amendment unless the context shall otherwise specify.

[SIGNATURE PAGES FOLLOW]

5

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

BORROWER:

WAUSAU PAPER CORP.

By:

SHERRI LEMMER

Name:

Sherri Lemmer

Title: 

Chief Financial Officer

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as

Administrative Agent

By:

DORA A. BROWN

Name:

Dora A. Brown

Title:

Vice President

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

LENDERS:

BANK OF AMERICA, N.A., as a Lender,

Swing Line Lender and as L/C Issuer

By:

MIKE DELANEY

Name:

Mike Delaney

Title:

Director

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

NORTHWEST FARM CREDIT SERVICES, PCA, as a Lender

By:

CANDY BOSWELL

Name:

Candy Boswell

Title:

Vice President

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

1ST FARM CREDIT SERVICES,

as a Lender

By:

COREY J. WALDINGER

Name:

Corey J. Waldinger

Title:

Vice President

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

BMO HARRIS BANK N.A., 

as a Lender

By:

RONALD J. CAREY

Name:

Ronald J. Carey

Title:

Senior Vice President

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By:

RANDALL PETERSON

Name:

Randall Peterson

Title:

Vice President

WAUSAU PAPER CORP.

THIRD AMENDMENT TO CREDIT AGREEMENT

Annex I

(see attached)

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

			
	

Lender

	

Commitment

	Applicable Percentage

	Bank of America, N.A.

	$20,000,000.00

	20.000000000%

	Northwest Farm Credit Services, PCA

	$20,000,000.00

	20.000000000%

	1st Farm Credit Services

	$20,000,000.00

	20.000000000%

	BMO Harris Bank National Association

	$20,000,000.00

	20.000000000%

	Wells Fargo Bank, National Association

	$20,000,000.00

	20.000000000%

	Total

	$100,000,000.00

	100.000000000%

SCHEDULE 8.01(o)

Pension Plan Liability Limits

		
	Name of Plan or Plan Combination

	Liability Limit

	 
	 

	Wausau Paper Corp. Retirement Plan

Rhinelander Paper Company, Inc. Pension Plan

Wausau Paper Corp. Pension Plan

	$66,000,000

	 
	 

The Liability Limit for any Plan Combination is set forth in the table.  Liability with respect to any Pension Plan in a Plan Combination will count towards the Liability Limit for that Plan Combination.  The Liability Limit will be considered to have been reached when the aggregate amount of liability for all Pension Plans in the Plan Combination exceeds the Liability Limit for that Plan Combination.

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