Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 1

TO

AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

     This AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT, dated as of April
15, 2009 (this “Amendment”), is entered into by and among PACKAGING RECEIVABLES COMPANY,
LLC, a Delaware limited liability company, as borrower (together with its successors and permitted
assigns, the “Borrower”), PACKAGING CREDIT COMPANY, LLC, a Delaware limited liability
company, as initial servicer (together with its successors, the “Servicer”), YC SUSI Trust,
a Delaware statutory trust, and Bank of America, National Association (“Bank of America”),
as lenders (collectively, the “Lenders”), and Bank of America, as agent for the Lenders (in
such capacity, the “Agent”).

RECITALS

     WHEREAS, the parties hereto have entered into that certain Amended and Restated Credit and
Security Agreement dated as of September 19, 2008 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

     WHEREAS, the parties hereto wish to make certain changes to the Credit Agreement as herein
provided;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein
and in the Credit Agreement, the parties hereto agree as follows:

          SECTION 1. Definitions. All capitalized terms not otherwise defined herein are used
as defined in the Credit Agreement.

          SECTION 2. Amendments.

     2.1. The following definitions in Annex A of the Credit Agreement are hereby amended and
restated in their entirety to read as follows:

          ““Credit Event” means, with respect to the Performance Guarantor, the lowering of the
Performance Guarantor’s issuer rating or bank debt rating to below “BB-” or “Ba3” by either S&P or
Moody’s, as applicable, or the withdrawal or suspension of either such rating.”

          ““Default Rate” means a rate per annum equal to the sum of (i) the Alternate Base Rate
plus (ii) 2.50%, changing when and as the Alternate Base Rate changes.”

          ““Dilution Horizon Ratio” means, on any Settlement Date, an amount calculated by
dividing (a) cumulative sales of the Originator generated during the most recent Settlement Period
by (b) the aggregate Unpaid Balance of all Receivables as of the most recent Cut-off
Date; provided that if a Rating Event has occurred, the numerator shall be calculated based on
the cumulative sales of the Originator generated during the two (2) most recent Settlement
Periods.”

 

 

          “Dilution Reserve” means, as of any Settlement Date, a percentage equal to the product
of (a) the sum of (i) the product of 2.5 times the Adjusted Dilution Ratio, plus (ii) the Dilution
Volatility Component, multiplied by (b) the Dilution Horizon Ratio.

          ““Fee Letter” means that certain Second Amended and Restated Fee Letter dated as of
April 15, 2009 and among the Servicer, the Borrower, YC SUSI and the Agent, as the same may be
amended, restated, supplemented, replaced or otherwise modified from time to time.”

          ““Interest Reserve” shall mean, as of any date of determination, an amount equal to
(a) the product of (i) 2.5 times (ii) the Days Sales Outstanding as of such date of determination
times (iii) the Base Rate as of such date of determination plus 2.50%, divided by (b) 365 or 366,
as applicable, times the Net Pool Balance as of such date of determination.”

          ““Loss Reserve” as of any Cut-Off Date means a percentage equal the product of (a) 2.5
times the highest three-month rolling average Default Ratio during the most recent twelve (12)
Settlement Periods and (b) the Default Horizon Ratio.”

          ““Minimum Reserve Ratio” means, as of any Settlement Date, the sum of (a) 10.0% and
(b) the product of (i) the Adjusted Dilution Ratio and (ii) the Dilution Horizon Ratio, each
calculated as of the Settlement Date immediately following such Settlement Period.”

          ““Rating Event” means, with respect to the Performance Guarantor, the lowering of the
Performance Guarantor’s issuer rating or bank debt rating to below “BBB-” or “Baa3” by either S&P
or Moody’s, as applicable.”

          ““Scheduled Termination Date” means April 14, 2010, unless extended by unanimous
agreement of the Agent and the Lenders.”

     2.2. The chart in the definition of “Obligor Concentration Limit” in Annex A of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&P Long-Term	 	Moody’s Long-Term	 	S&P Short-Term	 	Moody’s Short-Term	 	Allowable % of
	Rating	 	Rating	 	Rating	 	Rating	 	Eligible Receivables
	AAA to AA-
	 	Aaa to Aa2	 	 	A-1+	 	 	P	-1	 	 	 	10	%
	A+ to A
	 	 	 	 	 	 	A-1	 	 	 	 	 	 	 	8	%
	A- to BBB+
	 	A3 to Baa1	 	 	A-2	 	 	P	-2	 	 	 	4	%
	BBB-BBB-
	 	Baa2 to Baa3	 	 	A-3	 	 	P	-3	 	 	 	3	%
	Below BBB- or
	 	Below Baa3  or	 	Below A-3 or	 	Below P-3 or	 	 	2	%
	Not Rated
	 	Not Rated	 	Not Rated	 	Not Rated	 	 	 	 

     2.3. The following language is hereby added to the end of Section 7.2(b) of the Credit
Agreement as follows:

          “In addition, Borrower will provide a report covering such fiscal year to the effect that such
accountants have applied certain agreed-upon procedures (such procedures to be agreed upon from
time to time by the Borrower, such accountants and the Agent) to certain documents and records
relating to the Collateral under any Transaction Document, compared the information contained in
the Information Packages delivered during the period covered by such

2

 

report with such documents and
records and that no matters came to the attention of such accountants that caused them to believe
that such servicing was not conducted in compliance with this Article VII, except for such
exceptions as such accountants shall believe to be immaterial and such other exceptions as shall be
set forth in such statement. Such report shall be provided annually, as soon as available and in
any event within ninety (90) days after the end of each fiscal year of the Borrower; provided that
such report shall first be delivered within ninety (90) days of April 15, 2009.”

          SECTION 3. Conditions Precedent. This Amendment shall become effective on the first
date on which (i) the Agent shall have received an original counterpart (or counterparts) of this
Amendment, executed and delivered by each of the parties hereto, or other evidence satisfactory to
the Agent of the execution and delivery of this Amendment by such parties, (ii) the Agent shall
have received a renewal fee in the amount equal to the product of (a) 10 basis points (0.10%) times
(b) the Aggregate Commitment as of the date hereof as more fully described in the Fee Letter, and
(iii) the Agent shall have received all fees and expenses in connection with this Amendment,
including the fees of the Agent’s legal counsel, Mayer Brown LLP.

          SECTION 4. Miscellaneous.

     4.1. Reaffirmation of Covenants, Representations and Warranties. Upon the
effectiveness of this Amendment, each of the Borrower and the Servicer hereby reaffirms all
covenants, representations and warranties made in the Credit Agreement to the extent the same are
not amended hereby and agrees that all such covenants, representations and warranties shall be
deemed to have been remade as of the effective date of this Amendment.

     4.2. References to Credit Agreement. Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of
like import shall mean and be a reference to the Credit Agreement as amended hereby, and each
reference to the Credit Agreement in any other document, instrument or agreement executed and/or
delivered in connection with the Credit Agreement shall mean and be a reference to the Credit
Agreement as amended hereby.

     4.3. Effect on Credit Agreement. Except as specifically amended above, the Credit
Agreement and all other documents, instruments and agreements executed and/or delivered in
connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

     4.4. Governing Law. This Amendment, including the rights and duties of the parties
hereto, shall be governed by, and construed in accordance with, the internal laws of the State of
New York (without reference to conflicts of laws principles thereof other than Section 5-1601 of
the New York General Obligations Law).

     4.5. Successors and Assigns. This Amendment shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

     4.6. Headings. The Section headings in this Amendment are inserted for convenience of
reference only and shall not affect the meaning or interpretation of this Amendment or any
provision hereof.

3

 

     4.7. Counterparts. This Amendment may be executed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. Facsimiles shall be effective as originals.

[Signature Pages Follow]

4

 

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

	 	 	 	 	 
	 	BORROWER:

PACKAGING RECEIVABLES COMPANY, 

LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ DARLA J. OLIVIER
 	 
	 	 	Name:  	Darla J. Olivier 	 
	 	 	Title:  	Secretary 	 
	 
	 	SERVICER:

PACKAGING CREDIT COMPANY, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ DARLA J. OLIVIER
 	 
	 	 	Name:  	Darla J. Olivier 	 
	 	 	Title:  	Secretary 	 
	 

[Signature Pages Continue]

					
	 	 	 	 	 
	 	 	 	 	 
	 
	 	5
	 	 

 

 

	 	 	 	 	 
	 	LENDERS:

YC SUSI TRUST,

as a Lender

 	 
	 	By:  	Bank of America, National Association, its
 	 
	 	 	attorney-in-fact 	 
	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ STEVEN MAYSONET
 	 
	 	 	Name:  	Steven Maysonet 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 	 	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ STEVEN MAYSONET
 	 
	 	 	Name:  	Steven Maysonet 	 
	 	 	Title:  	Vice President 	 
	 
	 	AGENT:

BANK OF AMERICA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ STEVEN MAYSONET
 	 
	 	 	Name:  	Steven Maysonet 	 
	 	 	Title:  	Vice President 	 
	 

					
	 	 	 	 	 
	 	 	 	 	 
	 
	 	6EX-10.7

Exhibit 10.7

MANAGEMENT BONUS GUIDELINES

Purpose:

     Attract, retain and motivate management with exceptional ability.

Eligibility Requirements:

	 	•	 	Management personnel are eligible for consideration

	 
	 	•	 	Employed by the company for a minimum of six months of the fiscal year
	 
	 	•	 	Be actively employed by the company at the time of payment or retired between
the last day of the fiscal year and the payment date. Retirees must meet the
definition of normal retirement — sixty-five years old with a minimum of five years of
service with the company
	 
	 	•	 	Rated Meets Expectations or higher on last performance evaluation

Calculations:

	 	•	 	Bonus percentages are based on a Board approved matrix which consists of eight
company performance levels and five categories of management
	 
	 	•	 	Bonus percentages for Category A are 0%, 10%, 18%, 20%, 23%, 27%, 31%, and 35%.
	 
	 	•	 	Bonuses will be calculated on base salaries as of the last day of the fiscal
year
	 
	 	•	 	Bonuses will be prorated for those with six but less than twelve months of
service in the fiscal year and those promoted to an eligible position during the fiscal
year
	 
	 	•	 	Bonuses for those on an approved leave of absence, including disability, will
be prorated based upon the number of full months actually worked during the fiscal year
	 
	 	•	 	Bonuses will be rounded to the nearest hundredth — up or down

 

MANAGEMENT BONUS GUIDELINES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LEVEL 1	 	LEVEL 2	 	LEVEL 3	 	LEVEL 4	 	LEVEL 5	 	LEVEL 6	 	LEVEL 7	 	LEVEL 8
	 	 	Return on Average Assets (ROAA)	 	< .75%	 	.75% - .79%	 	.80% - 84%	 	.85% - .89%	 	.90% - .94%	 	.95% - .99%	 	1.00% - 1.10%	 	>1.10%
	 	 	Return on Average Equity (ROAE)	 	< 9.00%	 	9.0% - 9.99%	 	10.0% - 10.99%	 	11.0% -11.99%	 	12.0% - 12.99%	 	13.0% - 13.99%	 	14.0% - 14.99%	 	>15.00%
	 	 	Return on Average Tang. Equity	 	<12.00%	 	12.0% - 12.99%	 	13.0% - 13.99%	 	14.0% - 14.99%	 	15.0% - 15.99%	 	16.0% - 16.99%	 	17.0% - 17.99%	 	>18.00%
	 	 	% Growth in Earnings per Share	 	< 9.00%	 	9.0% - 9.99%	 	10.0% - 10.99%	 	11.0% - 11.99%	 	12.0% - 12.99%	 	13.0% - 13.99%	 	14.0% - 14.99%	 	>15.00%
	 	 	Retail Asset Growth	 	< 4.00%	 	4.0% - 5.99%	 	6.0% - 7.99%	 	8.0% - 9.99%	 	10.0% - 11.99%	 	12.0% - 13.99%	 	14.0% - 15.99%	 	>16.00%
	 
	CATEGORY	 	RATING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	A
	 	 	 	0%
	 	10%
	 	18%
	 	20%
	 	23%
	 	27%
	 	31%
	 	35%
	 
	B
	 	 	 	0%
	 	8%
	 	16%
	 	18%
	 	21%
	 	24%
	 	27%
	 	30%
	 
	C
	 	5
	 	0%
	 	7%
	 	14%
	 	16%
	 	19%
	 	21%
	 	24%
	 	27%
	C
	 	4
	 	0%
	 	6%
	 	12%
	 	14%
	 	17%
	 	19%
	 	21%
	 	23%
	C
	 	3
	 	0%
	 	4%
	 	8%
	 	9%
	 	10%
	 	11%
	 	12%
	 	13%
	C
	 	1 & 2
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 
	D
	 	5
	 	4%
	 	6%
	 	12%
	 	14%
	 	17%
	 	19%
	 	21%
	 	23%
	D
	 	4
	 	3%
	 	5%
	 	10%
	 	12%
	 	15%
	 	17%
	 	19%
	 	20%
	D
	 	3
	 	1%
	 	3%
	 	6%
	 	7%
	 	8%
	 	9%
	 	10%
	 	11%
	D
	 	1 & 2
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 
	E
	 	5
	 	3%
	 	5%
	 	10%
	 	12%
	 	14%
	 	15%
	 	16%
	 	17%
	E
	 	4
	 	2%
	 	4%
	 	8%
	 	10%
	 	12%
	 	13%
	 	14%
	 	15%
	E
	 	0%
	 	0%
	 	0%
	 	4%
	 	5%
	 	5%
	 	6%
	 	6%
	 	7%
	E
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%
	 	0%

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