Document:

Exhibit 4.2

 

EXECUTION VERSION

 

 

 

REGISTRATION RIGHTS AGREEMENT

by and among

WestRock Company, 

the Guarantors

party hereto

and

Wells Fargo Securities, LLC

Merrill Lynch, Pierce, Fenner & Smith
Incorporated 

Mizuho Securities USA LLC

MUFG Securities Americas Inc.

Scotia Capital (USA) Inc. 

SMBC Nikko Securities America, Inc.

SunTrust Robinson Humphrey, Inc.

as Representatives of the Initial Purchasers 

Dated as of March 6, 2018

 

     

     

    

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this
“Agreement”) is made and entered into as of March 6, 2018, by and among WestRock Company, a Delaware corporation (the
“Company”), the Guarantors party hereto (collectively, the “Guarantors”) and Wells Fargo Securities, LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital
(USA) Inc., SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey, Inc., as representatives (the “Representatives”)
of the several initial purchasers named in Schedule A-1 (the “2025 Notes Initial Purchasers”) and the several initial
purchasers named in Schedule A-2 (the “2028 Notes Initial Purchasers” and, together with the 2025 Notes Initial Purchasers,
the “Initial Purchasers”), as the case may be. Pursuant to the Purchase Agreement (as defined below), the 2025 Notes
Initial Purchasers have agreed to purchase the Company’s 3.750% Senior Notes due 2025 (the “2025 Notes”) and
the 2028 Notes Initial Purchasers have agreed to purchase the Company’s 4.000% Senior Notes due 2028 (the “2028 Notes”
and, together with the 2025 Notes, the “Notes”), both series of which are fully and unconditionally guaranteed by the
Guarantors (the “Guarantees”). The Notes and the Guarantees are herein collectively referred to as the “Securities.”

 

This Agreement is made pursuant to the Purchase
Agreement, dated March 1, 2018 (the “Purchase Agreement”), by and among the Company, the Guarantors and the Representatives,
for themselves and on behalf of the several Initial Purchasers, (i) for the benefit of the Initial Purchasers and (ii) for the
benefit of the holders from time to time of the Securities, including the Initial Purchasers. In order to induce the Initial Purchasers
to purchase the Securities, the Company has agreed to provide the registration rights set forth in this Agreement. The execution
and delivery of this Agreement is a condition to the obligations of the Initial Purchasers set forth in Section 5(f) of the Purchase
Agreement.

 

The parties hereby agree as follows:

 

Section
1.          
Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings:

 

2025 Notes: As defined in the preamble
hereof.

 

2025 Notes Initial Purchasers: As
defined in the preamble hereof.

 

2028 Notes: As defined in the preamble
hereof.

 

2028 Notes Initial Purchasers: As
defined in the preamble hereof.

 

Additional Interest: As defined in
Section 5 hereof.

 

Additional Interest Payment Date: With
respect to the Transfer Restricted Securities, each Interest Payment Date.

 

Advice: As defined in Section 6(c)
hereof.

 

    	 	1	 

     

    

Agreement: As defined in the preamble
hereof.

 

Broker-Dealer: Any broker or dealer
registered under the Exchange Act.

 

Business Day: Any day other than
a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located in New York, New York
are authorized or obligated to be closed.

 

Closing Date: The date of this Agreement.

 

Commission: The Securities and Exchange
Commission.

 

Company: As defined in the preamble
hereof.

 

Consummate: A registered Exchange
Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of (i) the filing and effectiveness
under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange
Offer, (ii) the maintenance of such Registration Statement continuously effective and the keeping of the Exchange Offer open for
a period not less than the minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the
Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal amount of
Transfer Restricted Securities that were tendered by Holders thereof pursuant to the Exchange Offer.

 

Exchange Act: The Securities Exchange
Act of 1934, as amended.

 

Exchange Date: As defined in Section
3(a) hereof.

 

Exchange Offer: The registration
by the Company under the Securities Act of the Exchange Securities pursuant to a Registration Statement pursuant to which the Company
offers the Holders of all outstanding Transfer Restricted Securities the opportunity to exchange all such outstanding Transfer
Restricted Securities held by such Holders for Exchange Securities in an aggregate principal amount equal to the aggregate principal
amount of the Transfer Restricted Securities tendered in such exchange offer by such Holders.

 

Exchange Offer Registration Statement:
The Registration Statement relating to the Exchange Offer, including the related Prospectus.

 

Exchange Securities: The (x) 3.750%
Senior Notes due 2025, of the same series under the Indenture as the Transfer Restricted Securities, and the Guarantees thereof,
and (y) 4.000% Senior Notes due 2028, of the same series under the Indenture as the Transfer Restricted Securities, and the Guarantees
thereof, to be issued to Holders in exchange for Transfer Restricted Securities pursuant to this Agreement, as applicable.

 

FINRA: Financial Industry Regulatory
Authority, Inc.

 

    	 	-2-	 

     

    

Free Writing Prospectus: Each free
writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Company or used or referred
to by the Company in connection with the sale of the Securities or the Exchange Securities.

 

Given: With respect to any notice
to be given to a Holder pursuant to this Agreement, notice sent to such Holder by first class mail or by overnight air courier
promising next Business Day, in each case prepaid, at its address or by electronic transmission at its email address as it appears
on the records of the Registrar under the Indenture in accordance with Section 12(d). Notice so “given” shall be deemed
to include any notice to be “mailed” “sent” or “delivered,” as applicable, under this Agreement.

 

Guarantees: As defined in the preamble
hereof.

 

Guarantors: As defined in the preamble
hereof.

 

Holder: As defined in Section 2(b)
hereof.

 

Indenture: The Indenture, dated as
of August 24, 2017, by and among the Company, the Guarantors and The Bank of New York Mellon Trust Company, N.A., as trustee (the
“Trustee”), as supplemented by the Second Supplemental Indenture, dated as of March 6, 2018, by and among the Company,
the Guarantors and the Trustee, pursuant to which the Securities are to be issued.

 

Initial Purchasers: As defined in
the preamble hereof.

 

Interest Payment Date: As defined
in the Indenture and the Securities.

 

Notes: As defined in the preamble
hereof.

 

Person: An individual, partnership,
corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

Prospectus: The prospectus included
in a Registration Statement (including, without limitation, any “issuer free writing prospectus” as defined in Rule
433 under the Securities Act), as amended or supplemented by any prospectus supplement and by all other amendments thereto, including
post-effective amendments, and all material incorporated by reference into such Prospectus.

 

Purchase Agreement: As defined in
the preamble hereof.

 

Registration Default: As defined
in Section 5 hereof.

 

Registration Statement: Any registration
statement of the Company relating to (a) an offering of Exchange Securities pursuant to an Exchange Offer or (b) the registration
for resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the provisions
of this Agreement, in each case, including the Prospectus included therein, all amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference therein.

 

    	 	-3-	 

     

    

Representatives: As defined in the
preamble hereof.

 

Securities: As defined in the preamble
hereof.

 

Securities Act: The Securities Act
of 1933, as amended.

 

Shelf Filing Deadline: As defined
in Section 4(a) hereof.

 

Shelf Registration Statement: As
defined in Section 4(a) hereof.

 

Transfer Restricted Securities: The
Securities; provided that a Security shall cease to be a Transfer Restricted Security on the earliest to occur of (a) the
date on which such Security is exchanged in the Exchange Offer for an Exchange Security entitled to be resold to the public by
the holder of such Exchange Security without complying with the prospectus delivery requirements of the Securities Act, (b) the
date on which such Security has been effectively registered under the Securities Act and disposed of in accordance with a Shelf
Registration Statement and (c) the date on which such Security is distributed to the public by a Broker-Dealer pursuant to the
“Plan of Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the Prospectus
contained therein).

 

Trust Indenture Act: The Trust Indenture
Act of 1939, as amended.

 

Underwritten Registration or Underwritten
Offering: A registration in which securities of the Company are sold to an underwriter for reoffering to the public.

 

Section
2.          
Securities Subject to this Agreement.

 

(a)               
Transfer Restricted Securities. The securities entitled to the benefits of this Agreement are the Transfer Restricted
Securities.

 

(b)              
Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer Restricted Securities (each,
a “Holder”) whenever such Person owns Transfer Restricted Securities.

 

Section
3.          
Registered Exchange Offer.

 

(a)               
Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth
in Section 6(a) hereof have been complied with), each of the Company and the Guarantors shall (i)(A) use its commercially reasonable
efforts to cause to be filed with the Commission a Registration Statement under the Securities Act relating to the Exchange Securities
and the Exchange Offer and (B) use commercially reasonable efforts to cause such Registration Statement to become effective,
(ii) in connection with the foregoing, (A) file all pre-effective amendments to such Registration Statement as may be necessary
in order to cause such Registration Statement to become effective, (B) if applicable, file a post-effective amendment to such Registration
Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with the registration
and qualification of the Exchange Securities to be made under the state securities or blue sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iii) upon the effectiveness of such Registration Statement, commence
the Exchange Offer. Each of the Company and the Guarantors shall use commercially reasonable efforts to Consummate the Exchange
Offer not later than September 1, 2019 (the “Exchange Date”). The Exchange Offer, if required pursuant to this Section 3(a),
shall be on the appropriate form permitting registration of the Exchange Securities of the applicable series to be offered in exchange
for the Transfer Restricted Securities of such series and to permit resales of Transfer Restricted Securities of such series held
by Broker-Dealers as contemplated by Section 3(c) hereof.

 

    	 	-4-	 

     

    

(b)              
If an Exchange Offer Registration Statement is required to be filed and declared effective pursuant to Section 3(a) above,
each of the Company and the Guarantors shall use commercially reasonable efforts to cause the Exchange Offer Registration Statement
to be effective continuously and shall keep the Exchange Offer open for a period of not less than the minimum period required under
applicable federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event
shall such period be less than 20 Business Days after the date notice of the Exchange Offer is given to the Holders. The Company
shall cause the Exchange Offer to comply with all applicable federal and state securities laws. No securities other than the Exchange
Securities shall be included in the Exchange Offer Registration Statement. Each of the Company and the Guarantors shall use its
commercially reasonable efforts to cause the Exchange Offer to be Consummated by the Exchange Date.

 

(c)               
The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus forming a part of
the Exchange Offer Registration Statement that any Broker-Dealer who holds Transfer Restricted Securities that were acquired for
its own account as a result of market-making activities or other trading activities (other than Transfer Restricted Securities
acquired directly from the Company) may exchange such Transfer Restricted Securities pursuant to the Exchange Offer; however, such
Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver
a prospectus meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received
by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer
of the Prospectus contained in the Exchange Offer Registration Statement. Such “Plan of Distribution” section shall
also contain all other information with respect to such resales by Broker-Dealers that the Commission may require in order to permit
such resales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the
amount of Transfer Restricted Securities held by any such Broker-Dealer except to the extent required by the Commission.

 

Each of the Company and the Guarantors shall
use its commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented
and amended as required by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for resales
of Exchange Securities acquired by Broker-Dealers for their own accounts as a result of market-making activities or other trading
activities, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules
and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from the date
on which the Exchange Offer Registration Statement is declared effective and (ii) the date on which a Broker-Dealer is no longer
required to deliver a prospectus in connection with market-making or other trading activities.

 

    	 	-5-	 

     

    

The Company shall provide sufficient copies
of the latest version of such Prospectus to Broker-Dealers promptly upon request at any time during such 180-day (or shorter as
provided in the foregoing sentence) period in order to facilitate such resales.

 

It is agreed that if the Exchange Offer
required to be Consummated pursuant to this Agreement is not so Consummated by the Exchange Date, the only remedy to the Holders,
except as provided in Section 4 hereof, after the Exchange Date will be Additional Interest as set forth in Section 5 hereof.

 

Section
4.          
Shelf Registration.

 

(a)               
Shelf Registration. If (i) the Company is not required to file an Exchange Offer Registration Statement or to Consummate
the Exchange Offer solely because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures
set forth in Section 6(a) hereof have been complied with), (ii) for any reason the Exchange Offer is not Consummated by the Exchange
Date or (iii) prior to the Exchange Date: (A) the Initial Purchasers so request from the Company with respect to Transfer Restricted
Securities not eligible to be exchanged for Exchange Securities in the Exchange Offer, (B) with respect to any Holder of Transfer
Restricted Securities, such Holder notifies the Company that (i) such Holder is prohibited by applicable law or Commission policy
from participating in the Exchange Offer, (ii) such Holder may not resell the Exchange Securities acquired by it in the Exchange
Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement
is not appropriate or available for such resales by such Holder, or (iii) such Holder is a Broker-Dealer and holds Transfer Restricted
Securities acquired directly from the Company or one of its affiliates or (C) in the case of any Initial Purchaser, such Initial
Purchaser notifies the Company it will not receive Exchange Securities in exchange for Transfer Restricted Securities constituting
any portion of such Initial Purchaser’s unsold allotment, the Company and the Guarantors shall:

 

(x)       cause
to be filed a shelf registration statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the Exchange
Offer Registration Statement (in either event, the “Shelf Registration Statement”) on or prior to the 30th
day after the date such obligation arises but no earlier than September 1, 2019 (such date being the “Shelf Filing Deadline”),
which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities the Holders of which shall have
provided the information required pursuant to Section 4(b) hereof; and

 

(y)       use
their commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective by the Commission on
or before the 30th day after the Shelf Filing Deadline (or if such 30th day is not a Business Day, the next
succeeding Business Day).

 

    	 	-6-	 

     

    

Each of the Company and the Guarantors shall
use commercially reasonable efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended
as required by the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales
of Transfer Restricted Securities by the Holders of such Securities entitled to the benefit of this Section 4(a), and to ensure
that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission
as announced from time to time, from the date on which the Shelf Registration Statement is declared effective by the Commission
until the expiration of the one-year period from the effective date of the Shelf Registration Statement (or such shorter period
that will terminate when all the Transfer Restricted Securities covered by such Shelf Registration Statement have been sold pursuant
to such Shelf Registration Statement); provided that the Company may for a period of up to 60 days in any three-month period,
not to exceed 90 days in any calendar year, determine that the Shelf Registration Statement is not usable under certain circumstances
relating to corporate developments, public filings with the Commission and similar events, and suspend the use of the Prospectus
that is part of the Shelf Registration Statement (any such period, a “Suspension Period”).

 

It is agreed that if a Shelf Registration
Statement is required to be filed and effective pursuant to this Agreement and is not so filed and effective after the Shelf Filing
Deadline, the only remedy to the Holders after the Shelf Filing Deadline will be Additional Interest as set forth in Section 5
hereof.

 

(b)              
Provision by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder of Transfer
Restricted Securities may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this
Agreement unless and until such Holder furnishes to the Company in writing, within 20 Business Days after receipt of a written
request therefor, such information as the Company may reasonably request for use in connection with any Shelf Registration Statement
or Prospectus or preliminary Prospectus included therein. Each Holder as to which any Shelf Registration Statement is being effected
agrees to furnish promptly to the Company all information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.

 

Section
5.          
Additional Interest. If, with respect to any series of Transfer Restricted Securities, either (i) the Exchange
Offer has not been Consummated by the Exchange Date; (ii) any Shelf Registration Statement, if required hereby, has not been declared
effective by the Commission by the date set forth in Section 4(a)(y) or (iii) any Registration Statement required by this Agreement
has been declared effective but ceases to be effective at any time at which it is required to be effective under this Agreement
other than during a Suspension Period (each such event referred to in clauses (i) through (iii), a “Registration Default”),
the Company hereby agrees that the interest rate borne by the Transfer Restricted Securities of the applicable series shall be
increased by 0.25% per annum during the 90-day period immediately following the occurrence of any Registration Default and shall
increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 0.50% per annum
(such increases, collectively, “Additional Interest”). Following the cure of all Registration Defaults relating to
the particular Transfer Restricted Securities, the interest rate borne by the relevant Transfer Restricted Securities of the applicable
series will be reduced to the original interest rate borne by such Transfer Restricted Securities of the applicable series; provided,
however, that, if after any such reduction in interest rate, a different Registration Default occurs, the interest rate
borne by the relevant Transfer Restricted Securities of the applicable series shall again be increased pursuant to the foregoing
provisions.

 

    	 	-7-	 

     

    

All obligations of the Company and the Guarantors
set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted Security of any series at the
time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect
to such security shall have been satisfied in full.

 

Section
6.          
Registration Procedures.

 

(a)               
Exchange Offer Registration Statement. In connection with the Exchange Offer, if required pursuant to Section 3(a)
hereof, the Company and the Guarantors shall comply with all of the provisions of Section 6(c) hereof, shall use their commercially
reasonable efforts to effect such exchange to permit the sale of Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof, and shall comply with all of the following provisions:

 

(i)              
If in the reasonable opinion of counsel to the Company there is a question as to whether the Exchange Offer is permitted
by applicable law, each of the Company and the Guarantors hereby agrees to seek a no-action letter or other favorable decision
from the Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for such Transfer Restricted Securities.
Each of the Company and the Guarantors hereby agrees to pursue the issuance of such a decision to the Commission staff level but
shall not be required to take commercially unreasonable action to effect a change of Commission policy. Each of the Company and
the Guarantors hereby agrees, however, to (A) participate in telephonic conferences with the Commission, (B) deliver to the Commission
staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such counsel has concluded
that such an Exchange Offer should be permitted and (C) diligently pursue a favorable resolution by the Commission staff of such
submission.

 

(ii)              
As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer
Restricted Securities shall furnish, upon the request of the Company, prior to the Consummation thereof, a written representation
to the Company (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement)
to the effect that (A) it is not an affiliate (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor,
(B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate
in, a distribution of the Exchange Securities to be issued in the Exchange Offer and (C) it is acquiring the Exchange Securities
in its ordinary course of business. In addition, all such Holders of Transfer Restricted Securities shall otherwise cooperate in
the Company’s preparations for the Exchange Offer. Each Holder hereby acknowledges and agrees that any Broker-Dealer and
any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired in the Exchange Offer
(1) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission enunciated
in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13,
1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters
(which may include any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus
delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale
transaction should be covered by an effective registration statement containing the selling security holder information required
by Item 507 or 508, as applicable, of Regulation S-K under the Securities Act if the resales are of Exchange Securities obtained
by such Holder in exchange for Transfer Restricted Securities acquired by such Holder directly from the Company.

 

    	 	-8-	 

     

    

(b)              
Shelf Registration Statement. If required pursuant to Section 4, in connection with the Shelf Registration Statement,
each of the Company and the Guarantors shall comply with all the provisions of Section 6(c) hereof and shall use its commercially
reasonable efforts to effect such registration to permit the sale of the Transfer Restricted Securities being sold in accordance
with the intended method or methods of distribution thereof, and pursuant thereto each of the Company and the Guarantors will as
expeditiously as possible prepare and file with the Commission a Registration Statement relating to the registration on any appropriate
form under the Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in accordance with
the intended method or methods of distribution thereof.

 

(c)               
General Provisions. In connection with any Registration Statement and any Prospectus required by this Agreement to
permit the sale or resale of Transfer Restricted Securities (including, without limitation, any Registration Statement and the
related Prospectus required to permit resales of Transfer Restricted Securities by Broker-Dealers), each of the Company and the
Guarantors shall:

 

(i)              
use its commercially reasonable efforts to keep such Registration Statement continuously effective and provide all requisite
financial statements, including, if required by the Securities Act or any regulation thereunder, financial statements of the Guarantors
for the period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that would cause any such Registration
Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required by this Agreement, the Company shall file promptly
an appropriate amendment to such Registration Statement, in the case of clause (A), correcting any such misstatement or omission,
and, in the case of either clause (A) or (B), use its commercially reasonable efforts to cause such amendment to be declared effective
and such Registration Statement and the related Prospectus to become usable for their intended purpose(s) as soon as practicable
thereafter;

 

    	 	-9-	 

     

    

(ii)              
prepare and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement
as may be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof,
as applicable, or such shorter period as will terminate when all Transfer Restricted Securities covered by such Registration Statement
have been sold; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 under the Securities Act, and to comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods
of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;

 

(iii)              
advise the underwriter(s), if any, and selling Holders promptly and, if requested by such Persons, confirm such advice in
writing, (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to
any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the
Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information
relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement
under the Securities Act or of the suspension by any state securities commission of the qualification of the Transfer Restricted
Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D)
of the existence of any fact or the happening of any event that makes any statement of a material fact made in the Registration
Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements
therein not misleading. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration
Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or
exemption from qualification of the Transfer Restricted Securities under state securities or blue sky laws, each of the Company
and the Guarantors shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest
possible time;

 

(iv)              
furnish without charge to each of the Initial Purchasers, each selling Holder named in any Registration Statement, and each
of the underwriter(s), if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included
therein or any amendments or supplements to any such Registration Statement or Prospectus (including all documents incorporated
by reference after the initial filing of such Registration Statement if not available on EDGAR), which documents will be subject
to the review and comment of such Holders and underwriter(s) in connection with such sale, if any, for a period of at least three
Business Days, and the Company will not file any such Registration Statement or Prospectus or any amendment or supplement to any
such Registration Statement or Prospectus (excluding any documents incorporated by reference) to which an Initial Purchaser of
Transfer Restricted Securities covered by such Registration Statement or the underwriter(s), if any, shall reasonably object in
writing within three Business Days after the receipt thereof (such objection to be deemed timely made upon confirmation of telecopy
transmission within such period). The objection of an Initial Purchaser or underwriter, if any, shall be deemed to be reasonable
if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material
misstatement or omission;

 

    	 	-10-	 

     

    

(v)              
make available at reasonable times for inspection by the Initial Purchasers, the managing underwriter(s), if any, participating
in any disposition pursuant to such Registration Statement and any attorney or accountant retained by such Initial Purchasers or
any of the underwriter(s), all financial and other records, pertinent corporate documents and properties of each of the Company
and the Guarantors and cause the Company’s and the Guarantors’ officers, directors and employees to supply all information
reasonably requested by any such Initial Purchaser, underwriter, attorney or accountant in connection with such Registration Statement
or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness and to participate in meetings
with investors to the extent reasonably requested by the managing underwriter(s), if any;

 

(vi)              
if requested by any selling Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or
Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and underwriter(s),
if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan
of Distribution” of the Transfer Restricted Securities, information with respect to the principal amount of Transfer Restricted
Securities being sold to such underwriter(s), the purchase price being paid therefor and any other terms of the offering of the
Transfer Restricted Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after the Company is notified of the matters to be incorporated in such Prospectus supplement
or post-effective amendment;

 

(vii)              
cause the Transfer Restricted Securities covered by the Registration Statement to be rated, if not then rated, with the
appropriate rating agencies, if so requested by the Holders of a majority in aggregate principal amount of Securities covered thereby
or the underwriter(s), if any;

 

(viii)              
furnish to each Initial Purchaser, each selling Holder and each of the underwriter(s), if any, without charge, at least
one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, including financial
statements and schedules, all documents incorporated by reference therein (if specifically requested) and all exhibits (including
exhibits incorporated therein by reference);

 

(ix)              
deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus
(including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; each of
the Company and the Guarantors hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of
the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the Transfer Restricted
Securities covered by the Prospectus or any amendment or supplement thereto;

 

    	 	-11-	 

     

    

(x)              
enter into such customary agreements (including an underwriting agreement), and make such representations and warranties,
and take all such other actions in connection therewith in order to expedite or facilitate the disposition of the Transfer Restricted
Securities pursuant to any Registration Statement contemplated by this Agreement, all to such extent as may be reasonably requested
by any Initial Purchaser or by any Holder of Transfer Restricted Securities or underwriter in connection with any sale or resale
pursuant to any Registration Statement contemplated by this Agreement; and whether or not an underwriting agreement is entered
into and whether or not the registration is an Underwritten Registration, each of the Company and the Guarantors shall:

 

(A)            
furnish to each Initial Purchaser, each selling Holder and each underwriter, if any, in such substance and scope as they
may reasonably request and as are customarily made by issuers to underwriters in primary underwritten offerings, upon the date
of the Consummation of the Exchange Offer or, if applicable, the effectiveness of the Shelf Registration Statement:

 

(1)              
a certificate, dated the date of Consummation of the Exchange Offer or the date of effectiveness of the Shelf Registration
Statement, as the case may be, signed by (x) the President or any Vice President and (y) a principal financial or accounting officer
of each of the Company and the Guarantors, confirming, as of the date thereof, the matters set forth in paragraphs (i), (ii) and
(iii) of Section 5(e) of the Purchase Agreement and such other matters as such parties may reasonably request;

 

(2)              
an opinion, dated the date of Consummation of the Exchange Offer or the date of effectiveness of the Shelf Registration
Statement, as the case may be, of counsel for the Company and the Guarantors, covering such matters as are customarily covered
in opinions requested in an underwritten offering and such other matters as such parties may reasonably request, and in any event
including a statement to the effect that such counsel has participated in conferences with officers and other representatives of
the Company and the Guarantors, representatives of the independent public accountants for the Company and the Guarantors, representatives
of the underwriter(s), if any, and counsel to the underwriter(s), if any, in connection with the preparation of such Registration
Statement and the related Prospectus and have considered the matters required to be stated therein and the statements contained
therein, although such counsel has not independently verified the accuracy, completeness or fairness of such statements; and that
such counsel advises that, on the basis of the foregoing, no facts came to such counsel’s attention that caused such counsel
to believe that the applicable Registration Statement, at the time such Registration Statement or any post-effective amendment
thereto became effective, and, in the case of the Exchange Offer Registration Statement, as of the date of Consummation, contained
an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Prospectus contained in such Registration Statement as of its date and, in the case
of the opinion dated the date of Consummation of the Exchange Offer, as of the date of Consummation, contained an untrue statement
of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. Without limiting the foregoing, such counsel may state further that such counsel assumes
no responsibility for, and has not independently verified, the accuracy, completeness or fairness of the financial statements,
notes and schedules and other financial data included in any Registration Statement contemplated by this Agreement or the related
Prospectus; and

 

    	 	-12-	 

     

    

(3)              
solely in connection with an Underwritten Offering, a customary comfort letter, dated the date of effectiveness of the Shelf
Registration Statement, from the Company’s independent accountants, in customary form and covering matters of the type customarily
requested to be covered in comfort letters by underwriters in connection with primary underwritten offerings, and covering or affirming
the matters set forth in the comfort letters delivered pursuant to Section 5(a) of the Purchase Agreement, without exception;

 

(B)             
set forth in full or incorporate by reference in the underwriting agreement, if any, the indemnification provisions and
procedures of Section 8 hereof with respect to all parties to be indemnified pursuant to said Section; and

 

(C)             
deliver such other documents and certificates as may be reasonably requested by such parties to evidence compliance with
Section 6(c)(x)(A) hereof and with any customary conditions contained in the underwriting agreement or other agreement entered
into by the Company or any of the Guarantors pursuant to this Section 6(c)(x), if any.

 

If at any time the representations
and warranties of the Company and the Guarantors contemplated in Section 6(c)(x)(A)(1) hereof cease to be true and correct, the
Company or the Guarantors shall so advise the Initial Purchasers and the underwriter(s), if any, and each selling Holder promptly
and, if requested by such Persons, shall confirm such advice in writing;

 

    	 	-13-	 

     

    

(xi)              
prior to any public offering of Transfer Restricted Securities, cooperate with the selling Holders, the underwriter(s),
if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Securities
under the state securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s), if any, may reasonably
request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the Shelf Registration Statement; provided, however, that none of the Company nor
the Guarantors shall be required to register or qualify as a foreign corporation where it is not then so qualified or to take any
action that would subject it to periodic reporting obligations or the service of process in suits or to taxation, other than as
to matters and transactions relating to the Registration Statement, in any jurisdiction where it is not then so subject;

 

(xii)              
issue, upon the request of any Holder of Transfer Restricted Securities covered by the Shelf Registration Statement, Exchange
Securities having an aggregate principal amount equal to the aggregate principal amount of Transfer Restricted Securities surrendered
to the Company by such Holder in exchange therefor or being sold by such Holder; such Exchange Securities to be registered in the
name of such Holder or in the name of the purchaser(s) of such Exchange Securities, as the case may be; in return, the Transfer
Restricted Securities held by such Holder shall be surrendered to the Company for cancellation;

 

(xiii)              
cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the Holders or the underwriter(s), if any, may
request at least two Business Days prior to any sale of Transfer Restricted Securities made by such Holders or underwriter(s);

 

(xiv)              
use its commercially reasonable efforts to cause the Transfer Restricted Securities covered by the Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or
sellers thereof or the underwriter(s), if any, to consummate the disposition of such Transfer Restricted Securities, subject to
the proviso contained in Section 6(c)(xi) hereof;

 

(xv)              
if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred, prepare a supplement or post-effective
amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;

 

(xvi)              
cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation
by any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance
with the rules and regulations of FINRA;

 

    	 	-14-	 

     

    

(xvii)              
provide a CUSIP number for all Securities not later than the effective date of the Registration Statement covering such
Securities and provide the Trustee under the Indenture with printed certificates for such Securities which are in a form eligible
for deposit with The Depository Trust Company and take all other action necessary to ensure that all such Securities are eligible
for deposit with The Depository Trust Company;

 

(xviii)              
cause all Securities covered by the Registration Statement to be listed on each securities exchange or automated quotation
system on which similar securities issued by the Company are then listed if requested by the Holders of a majority in aggregate
principal amount of such Securities or the managing underwriter(s), if any;

 

(xix)              
otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission,
and make generally available to its security holders, as soon as practicable, a consolidated earnings statement meeting the requirements
of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period (A) commencing at the end of any fiscal
quarter in which Transfer Restricted Securities are sold to underwriters in a firm commitment or best efforts Underwritten Offering
or (B) if not sold to underwriters in such an offering, beginning with the first month of the Company’s first fiscal quarter
commencing after the effective date of the Registration Statement; provided that their requirements shall be deemed satisfied
by the Company complying with Section 4.3 of the Indenture;

 

(xx)              
cause the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration
Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Securities to
effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the
Trust Indenture Act; and to execute, and use its commercially reasonable efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable
such Indenture to be so qualified in a timely manner;

 

(xxi)              
provide promptly to each Holder upon written request each document filed with the Commission pursuant to the requirements
of Section 13 and Section 15 of the Exchange Act and not available on EDGAR; and

 

(xxii)              
to the extent any Free Writing Prospectus is used, file with the Commission any Free Writing Prospectus that is required
to be filed by the Company or the Guarantors with the Commission in accordance with the Securities Act and to retain any Free Writing
Prospectus not required to be filed in accordance with the Securities Act.

 

Each Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of any notice from the Company of the existence of any fact of the kind described in Section
6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the applicable
Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xv) hereof, or until it is advised in writing (the “Advice”) by the Company that the use of the Prospectus
may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus.
If so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of such notice. In the event the Company shall give any such notice, the time period regarding
the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number
of days during the period from and including the date of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and
including the date when each selling Holder covered by such Registration Statement shall have received the copies of the supplemented
or amended Prospectus contemplated by Section 6(c)(xv) hereof or shall have received the Advice; provided, however,
that no such extension if in excess of a Suspension Period shall be taken into account in determining whether Additional Interest
is due pursuant to Section 5 hereof or the amount of such Additional Interest, it being agreed that the Company’s option
to suspend use of a Registration Statement pursuant to this paragraph if in excess of a Suspension Period shall be treated as a
Registration Default for purposes of Section 5 hereof.

 

    	 	-15-	 

     

    

Section
7.          
Registration Expenses.

 

(a)               
All expenses incident to the Company’s and the Guarantors’ performance of or compliance with this Agreement
will be borne by the Company and the Guarantors, jointly and severally, regardless of whether a Registration Statement becomes
effective, including, without limitation: (i) all registration and filing fees and expenses (including filings made by any purchaser
of Transfer Restricted Securities or Holder with FINRA (and, if applicable, the reasonable fees and expenses of any “qualified
independent underwriter” and its counsel that may be required by the rules and regulations of FINRA)); (ii) all fees and
expenses of compliance with federal securities and state securities or blue sky laws; (iii) all expenses of printing (including
printing certificates for the Exchange Securities to be issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for the Company, the Guarantors and, subject to Section
7(b) hereof, the Holders of Transfer Restricted Securities; (v) all application and filing fees in connection with listing the
Exchange Securities on a securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees
and disbursements of independent certified public accountants of the Company and the Guarantors (including the expenses of any
special audit and comfort letters required by or incident to such performance).

 

Each of the Company and the Guarantors will,
in any event, bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.

 

(b)              
In connection with any Registration Statement required by this Agreement (including, without limitation, the Exchange Offer
Registration Statement and the Shelf Registration Statement), the Company and the Guarantors, jointly and severally, will reimburse
the Initial Purchasers and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer and/or resold pursuant
to the “Plan of Distribution” contained in the Exchange Offer Registration Statement or registered pursuant to the
Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall
be Cahill Gordon & Reindel llp or
such other counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for
whose benefit such Registration Statement is being prepared.

 

    	 	-16-	 

     

    

Section
8.          
Indemnification.

 

(a)               
Each of the Company and the Guarantors, jointly and severally, agrees to indemnify and hold harmless (i) each Holder,
its directors, officers and employees, and each person, if any, who controls any Holder within the meaning of the Securities Act
and the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which such Holder, director, officer,
employee or controlling person may become subject, under the Securities Act, the Exchange Act or other U.S. federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected in
accordance with Section 8(d) hereof), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof
as contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom
of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; and to reimburse each Holder and each such director, officer, employee or controlling person for any and all expenses
(including the fees and disbursements of counsel) as such expenses are reasonably incurred by such Holder or such director, officer,
employee or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply to
any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement
or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished
to the Company by such Holder expressly for use in any Registration Statement or Prospectus (or any amendment or supplement thereto).
The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company may otherwise have.

 

(b)              
Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, each of their
respective directors, officers and employees and each person, if any, who controls the Company or any Guarantor within the meaning
of the Securities Act or the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to which the Company,
any Guarantor or any such director, officer, employee or controlling person may become subject, under the Securities Act, the Exchange
Act, or other U.S. federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected in accordance with Section 8(d) hereof), insofar as such loss, claim, damage, liability
or expense (or actions in respect thereof as contemplated below) arises out of or is based upon any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement or Prospectus (or any amendment or supplement thereto),
or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was made in any Registration Statement or Prospectus
(or any amendment or supplement thereto), in reliance upon and in conformity with written information furnished to the Company
by such Holder expressly for use therein; and to reimburse the Company, any Guarantor and each such director, officer, employee
or controlling person for any and all expenses (including the fees and disbursements of counsel) as such expenses are reasonably
incurred by the Company, any Guarantor or such director, officer, employee or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The indemnity agreement
set forth in this Section 8(b) shall be in addition to any liabilities that each Initial Purchaser may otherwise have.

 

    	 	-17-	 

     

    

(c)               
Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify the indemnifying
party in writing of the commencement thereof, but the omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party for contribution or otherwise other than under the indemnity agreement contained
in this Section 8 or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought
against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly
notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified
party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however,
if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in
conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties
which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have
the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on
behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such
indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 8 for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed
separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel (together with local counsel), reasonably approved
by the indemnifying party, representing the indemnified parties who are parties to such action) or (ii) the indemnifying party
shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party.

 

    	 	-18-	 

     

    

(d)              
The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees
to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse
the indemnified party for fees and expenses of counsel as contemplated by this Section 8, the indemnifying party agrees that
it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall
not have reimbursed the indemnified party in accordance with such request or disputed in good faith the indemnified party’s
entitlement to such reimbursement prior to the date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have
been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an unconditional release
of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (ii)
does not include any statements as to or any findings of fault, culpability or failure to act by or on behalf of any indemnified
party.

 

(e)               
If the indemnification provided for in Section 8 hereof is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result
of any losses, claims, damages, liabilities or expenses referred to therein, (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, or (ii)
if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Guarantors, on
the one hand, and the Holders, on the other hand, in connection with the statements or omissions or inaccuracies in the representations
and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors, on the one hand, and the Holders, on the other hand, shall
be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact or any such inaccurate or alleged inaccurate representation or warranty relates to
information supplied by the Company and the Guarantors, on the one hand, or the Holders, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or inaccuracy.

 

(f)               
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above
shall be deemed to include, subject to the limitations set forth in Section 8 hereof, any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending any action or claim. The provisions set forth in
Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for contribution is to be made
under Section 8(e) above; provided, however, that no additional notice shall be required with respect to any action
for which notice has been given under Section 8 hereof for purposes of indemnification. The Company, the Guarantors and each
Holder of Transfer Restricted Securities agree that it would not be just and equitable if contribution pursuant to Section 8(e)
were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations referred to in Section 8(e).

 

    	 	-19-	 

     

    

(g)              
Notwithstanding the provisions of Section 8(e), no Holder shall be required to contribute any amount in excess of the
dollar amount by which the total discount, commission or gain (if any) received by such Holder from the sale of any Transfer Restricted
Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11 of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute
pursuant to Section 8(e) above are several, and not joint, on a pro rata basis based on such Holder’s aggregate principal
amount of Transfer Restricted Securities included in such Registration Statement or Prospectus. For purposes of Section 8(e) above,
each director, officer and employee of a Holder and each person, if any, who controls a Holder within the meaning of the Securities
Act and the Exchange Act shall have the same rights to contribution as such Holder, and each director, officer and employee of
the Company or any Guarantor, and each person, if any, who controls the Company or any Guarantor within the meaning of the Securities
Act and the Exchange Act shall have the same rights to contribution as the Company and the Guarantors.

 

Section
9.          
Rule 144A. Each of the Company and the Guarantors hereby agrees with each Holder, for so long as any Transfer
Restricted Securities remain outstanding, to make available to any Holder or beneficial owner of Transfer Restricted Securities
in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial
owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A under the Securities Act.

 

Section
10.       Participation
in Underwritten Registrations. No Holder may participate in any Underwritten Registration hereunder unless such Holder (a)
agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved
by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers
of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting
arrangements.

 

Section
11.       Selection
of Underwriters. The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do
so may sell such Transfer Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the investment
banker(s) and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate
principal amount of the Transfer Restricted Securities included in such offering; provided, however, that such investment
banker(s) and managing underwriter(s) must be reasonably satisfactory to the Company.

 

    	 	-20-	 

     

    

Section
12.       Miscellaneous.

 

(a)               
Remedies. Each of the Company and the Guarantors hereby agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the defense in
any action for specific performance that a remedy at law would be adequate.

 

(b)              
No Inconsistent Agreements. Each of the Company and the Guarantors will not on or after the date of this Agreement
enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement
or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with
and are not inconsistent with the rights granted to the holders of the Company’s or any of the Guarantors’ securities
under any agreement in effect on the date hereof.

 

(c)               
Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers
or consents to or departures from the provisions hereof may not be given unless the Company has (i) in the case of Section 5 hereof
and this Section 12(c)(i), obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in
the case of all other provisions hereof, obtained the written consent of Holders of a majority of the outstanding principal amount
of Transfer Restricted Securities (excluding any Transfer Restricted Securities held by the Company or its affiliates). Notwithstanding
the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose
securities are being tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other
Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities being tendered or registered; provided, however, that,
with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall
obtain the written consent of each such Initial Purchaser with respect to which such amendment, modification, supplement, waiver,
consent or departure is to be effective.

 

(d)              
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail (registered or certified, return receipt requested), telex, telecopier or air courier guaranteeing overnight delivery:

 

(i)              
if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar
under the Indenture; and

 

    	 	-21-	 

     

    

(ii)              
if to the Company:

 

WestRock Company

1000 Abernathy Road NE

Atlanta, Georgia 30328

Facsimile: (770) 263-3582

Attention: General Counsel

With copies to:

 

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, New York 10019

Facsimile: (212) 474-3700

Attention: Andrew J. Pitts

 

All such notices and communications shall
be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited
in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture.

 

(e)               
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties, including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer
Restricted Securities; provided, however, that this Agreement shall not inure to the benefit of or be binding upon
a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Securities from
such Holder.

 

(f)               
Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

 

(g)              
Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

 

(h)              
Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

 

(i)                
Severability. In the event that any one or more of the provisions contained herein, or the application thereof in
any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

    	 	-22-	 

     

    

(j)                
Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

[Remainder of Page Intentionally
Left Blank]

 

 

 

 

 

    	 	-23-	 

     

    

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

 

 

	 	WESTROCK COMPANY
	 	 	 	 
	 	By:	/s/ Robert B. McIntosh
	 	 	Name:	Robert B. McIntosh
		 	Title:	Executive Vice President, General Counsel and Secretary

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

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

 

 

	 	WESTROCK MWV, LLC 

WESTROCK RKT COMPANY, 

as
Guarantors
	 	 	 	 
	 	By:	/s/ Robert B. McIntosh
	 	 	Name:	Robert B. McIntosh
	 	 	Title:	Executive Vice President, General Counsel and Secretary

 

 

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

The foregoing Registration Rights Agreement
is hereby confirmed and accepted as of the date first above written:

 

WELLS FARGO SECURITIES, LLC

Merrill Lynch, Pierce,
Fenner & Smith 

Incorporated

Mizuho Securities USA
LLC

MUFG Securities Americas
Inc.

Scotia Capital (USA)
Inc. 

SMBC Nikko Securities
America, Inc.

SunTrust Robinson Humphrey,
Inc.

 

Acting on behalf of themselves

and as the Representatives of

the several Initial Purchasers

 

	By:		Wells Fargo Securities, LLC	 

 

 

	By:		/s/ Carolyn
                                         Hurley	 
	 	 	Name: Carolyn Hurley
	 	 	Title: Director

     

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		Merrill Lynch, Pierce, Fenner & Smith
	 	 	Incorporated

 

 

	By:	 	/s/ Happy Hazelton	 
	 	 	Name: Happy Hazelton
	 	 	Title: Managing Director

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		Mizuho Securities USA LLC	 

 

 

	By:		/s/ James
                                         Guardino	 
	 	 	Name:
James Guardino	 
	 	 	Title:Managing
Director	 

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		MUFG Securities Americas Inc.

 

 

	By:		/s/ Richard
                                         Testa	 
	 	 	Name:
Richard Testa	 
	 	 	Title:Managing
Director	 

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		Scotia Capital (USA) Inc.

 

 

	By:		/s/ Paul
                                         McKeown	 
	 	 	Name:
Paul McKeown	 
	 	 	Title:Managing Director & Head

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		SMBC Nikko Securities America, Inc.

 

 

	By:		/s/ Yoshihiro
                                         Satake	 
	 	 	Name:
Yoshihiro Satake	 
	 	 	Title:Managing
Director	 

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

	By:		SunTrust Robinson Humphrey, Inc.

 

 

	By:		/s/ Robert
                                         Nordlinger	 
	 	 	Name:
Robert Nordlinger	 
	 	 	Title:Director	 

 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

Schedule A-1

 

2025 Notes Initial Purchasers

 

	Wells Fargo Securities, LLC
	
        Merrill Lynch, Pierce, Fenner & Smith

        Incorporated

	Mizuho Securities USA LLC
	MUFG Securities Americas Inc.
	Scotia Capital (USA) Inc.
	SMBC Nikko Securities America, Inc.
	SunTrust Robinson Humphrey, Inc.
	Fifth Third Securities, Inc.
	HSBC Securities (USA) Inc.
	ING Financial Markets LLC
	J.P. Morgan Securities LLC
	PNC Capital Markets LLC
	Rabo Securities USA, Inc.
	RBC Capital Markets, LLC
	TD Securities (USA) LLC

 

 

    	 	Schedule A-1	 

     

    

Schedule A-2

 

2028 Notes Initial Purchasers

 

	Wells Fargo Securities, LLC
	
        Merrill Lynch, Pierce, Fenner & Smith

        Incorporated

	Mizuho Securities USA LLC
	MUFG Securities Americas Inc.
	Scotia Capital (USA) Inc.
	SMBC Nikko Securities America, Inc.
	SunTrust Robinson Humphrey, Inc.
	Fifth Third Securities, Inc.
	HSBC Securities (USA) Inc.
	ING Financial Markets LLC
	J.P. Morgan Securities LLC
	PNC Capital Markets LLC
	Rabo Securities USA, Inc.
	RBC Capital Markets, LLC
	TD Securities (USA) LLC

 

 

Schedule A-2Exhibit 10.1

 

AMENDMENT
No. 7 TO

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO.
7 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of February 28, 2018, among ORCHIDS
PAPER PRODUCTS COMPANY, a Delaware corporation (“Borrower”), the Guarantors party hereto, the lenders party
hereto (“Lenders”) and U.S. BANK NATIONAL ASSOCIATION, as a Lender and as LC Issuer, Swing Line Lender and Administrative
Agent for the Lenders (in such capacity, “Administrative Agent”).

 

BACKGROUND

 

A.       Borrower,
Administrative Agent and Lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of June 25,
2015 (as amended, supplemented and modified from time to time, the “Credit Agreement”).

 

B.       Events
of Default have occurred and are continuing as a result of Borrower’s breach of Sections 6.21(a) and 6.21(b) of the Credit
Agreement for the period ending December 31, 2017 (“Existing Events of Default”), and Borrower anticipates that
it will be in breach of Sections 6.21(a) and 6.21(b) of the Credit Agreement for the period ending March 31, 2018 (“Anticipated
Events of Default”).

 

C.       Borrower
has requested that Administrative Agent and Lenders waive the Existing Events of Default and Anticipated Events of Default and
amend the Credit Agreement as set forth herein.

 

D.       Administrative
Agent and Lenders are willing to waive the Existing Events of Default and Anticipated Events of Default and enter into this Agreement
upon the terms and conditions set forth below.

 

E.       NOW
THEREFORE, in consideration of the matters set forth in the recitals and the covenants and provisions herein set forth, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

AGREEMENT

 

Section 1.               
Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto
in the Credit Agreement.

 

Section 2.               
Amendments to the Credit Agreement. As of the Effective Date (as defined below), the Credit Agreement is hereby amended
as follows:

 

     

     

    

 

(a)              
The definition of “Borrowing Base” in Article I of the Credit Agreement is hereby deleted in its entirety and
the following is inserted in substitution therefor:

 

“Borrowing
Base” means, as of any date of calculation, an amount, as set forth on the most current Borrowing Base Certificate delivered
to the Administrative Agent, equal to the sum of (a) 85% of Eligible Receivables as of such date, with such advance rate reducing
to 82% on May 31, 2018 and further reducing to 80% on June 30, 2018, plus (b) 60% of Eligible Raw Materials Inventory (which for
the avoidance of doubt shall include supplies up to and including March 1, 2018 and shall thereafter be excluded), with such advance
rate reducing to 55% on May 31, 2018 and further reducing to 50% on June 30, 2018, plus (c) 65% of Eligible Parent Roll Inventory,
with such advance rate reducing to 62% on May 31, 2018 and further reducing to 60% on June 30, 2018, plus (d) 65% of Eligible Finished
Goods Inventory, with such advance rate reducing to 60% on May 31, 2018 and further reducing to 50% on June 30, 2018, minus (e)
the Borrowing Base Adjustments. On the date of each such reduction in advance rates, Borrower shall repay any amount by which the
Revolving Exposure exceeds the Borrowing Base.

 

(b)              
Notwithstanding anything contained in the Credit Agreement to the contrary, (i) Borrower shall not be permitted to request
and Swing Line Lender shall have no obligation to extend, Swing Line Loans, (ii) Borrower shall not be permitted to request and
Administrative Agent and Lenders shall have no obligation to consider increases in the Revolving Commitments or Draw Loan Commitments,
(iii) Borrower shall not be permitted to request and LC Issuer shall have no obligation to issue Letters of Credit, unless Borrower
Cash Collateralizes each such Letter of Credit requested, and (iv) Borrower shall provide the reports required by Section 6.1(c)
of the Credit Agreement regardless of the amount of outstanding Revolving Exposure and shall provide Borrowing Base Certificates
on the 15th day of each month reflecting the Borrowing Base as of the last day of the prior month and on the last day
of each month reflecting the Borrowing Base as of the 15th day of such month. The Borrowing Base Certificates provided
as of the end of each month shall contain the actual amount of Eligible Inventory for the period ended as of the end of the previous
month and an estimate of Eligible Inventory amounts for the period covered thereby and the Borrowing Base Certificates provided
on the 15th of each month will contain an estimate of the amount of Eligible Inventory for the period ended as of the
end of the previous month. The Borrowing Base Certificates shall continue to report the actual Eligible Accounts for each period
covered thereby.

 

(c)              
Notwithstanding anything contained in the Credit Agreement to the contrary, (i) each Revolving Loan made after the
date of this Agreement shall either be a Base Rate Advance or a Eurocurrency Advance with an Interest Period of one (1) month and
(ii) all other outstanding Loans shall, on the last day of the then current Interest Period applicable to each such Loan,
be automatically converted into a Base Rate Loan or a Eurocurrency Loan with an Interest Period of one (1) month.

 

(d)              
The Applicable Margin and Applicable Fee Rate percentages in the Level IX Status column in the Pricing Schedule for Eurocurrency
Rate and Base Rate Advances and the Commitment Fee shall each be increased by one percent (1.0%). Any increase in the interest
payments due to Lenders as a result of such increase shall accrue and be due and payable on July 1, 2018.

 

    	 	 -2-	 

     

    

 

(e)              
Sections 2.12(c) and 2.12(d) of the Credit Agreement are hereby deleted in their entirety and the following are inserted
in substitution therefor:

 

“(c)Prior
to April 1, 2018, Borrower shall repay the Term Loans on a quarterly basis on the first day of each March, June, September and
December (or, if such date is not a Business Day, on the immediately preceding Business Day) in the aggregate principal amount
of (i) $675,000.00 commencing September 1, 2015 and continuing thereafter to and including June 1, 2016, and (ii) $1,000,000.00
commencing September 1, 2016 and each quarterly date referenced above thereafter. Commencing April 1, 2018, the outstanding principal
balance of the Term Loans shall be payable monthly, on the first day of each month, in the amount of $333,333.33 each. To the extent
not previously paid, all unpaid Term Loans shall be paid in full by Borrower on the Facility Termination Date.

 

(d)       Prior
to April 1, 2018, Borrower shall repay the Draw Loans on a quarterly basis on the first day of each March, June, September and
December (or, if such date is not a Business Day, on the immediately preceding Business Day) commencing on September 1, 2017, in
the aggregate principal amount equal to: (i) for the payment due on September 1, 2017, 1.5% of the outstanding principal balance
of Draw Loans as of August 31, 2017, (ii) for the payment due on December 1, 2017, 1.5% of the outstanding balance of Draw Loans
as of November 30, 2017, and (iii) for the payment due on March 1, 2018, 1.5% of the outstanding balance of Draw Loans as of December
31, 2017. Commencing April 1, 2018, the outstanding principal balance of the Draw Loans shall be payable monthly, on the first
day of each month, in the amount of $526,523.89. To the extent not previously paid, all unpaid Draw Loans shall be paid in full
by Borrower on the Facility Termination Date.”

 

(f)               
Section 6.1(e) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:

 

“(e)Together
with the financial statements required under Sections 6.1(a), (b) and (k), a compliance certificate in substantially the form of
Exhibit B signed by its CFO showing the calculations necessary to determine compliance with Section 6.21 of this
Agreement and stating that no Default or Event of Default exists, or if any Default or Event of Default exists, stating the nature
and status thereof and accompanied by a report and analysis of management of Borrower of the financial results for the period covered
thereby.”

 

    	 	 -3-	 

     

    

 

(g)              
Section 6.1(j) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:

 

“(j)(i) On
the Effective Date, a rolling 13-week cash-flow forecast, for the immediately succeeding 13-week period, in form and substance
acceptable to Administrative Agent, which shall (A) detail all sources and uses of cash, (B) be accompanied by a certification
of the CFO that the cash-flow forecast is based on reasonable estimates, information and assumptions and that the CFO has no reason
to believe that such cash-flow forecast is incorrect or misleading in any respect and (C) shall be approved by Administrative
Agent in writing (“Cash-Flow Forecast”), (ii) on or before March 24, 2018 and on or before the third Business
Day of each third week thereafter, an updated Cash-Flow Forecast, which in each case shall be acceptable to and approved in writing
by Administrative Agent, it being understood and agreed, upon such approval by Administrative Agent, each updated Cash-Flow Forecast
shall be the Cash-Flow Forecast for purposes of measuring compliance with the covenant set forth in Section 6.21(f) of this Agreement,
(iii) on or before the third Business Day of each week, (A) a line-by-line reconciliation of (1) the amounts of budgeted
expenditures and receipts for the immediately preceding week as set forth in the Cash-Flow Forecast most recently delivered to
and approved by Administrative Agent for such week and (2) the actual expenditures and receipts for such week (together with an
explanation, in reasonable detail, of any material differences between the budgeted and actual amounts) and (B) a certification
by the CFO that the CFO has no reason to believe that such reconciliation is incorrect or misleading in any material respect, and
(iv) on or before the second Business Day of each week, a report on the prior weekly sales, by customer and respective tons,
together with a comparison to budgeted sales for such period and a certification by the CFO that the CFO has no reason to believe
that such reconciliation is incorrect or misleading in any material respect.”

 

(h)              
Section 6.1(k) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:

 

“(k)Within
30 days after the last day of each calendar month, for itself and its Subsidiaries, consolidated unaudited balance sheets as at
the close of each such period and consolidated profit and loss and reconciliation of surplus statements (including sufficient detail
for independent calculation of the financial covenants set forth in Section 6.21), and a statement of cash flows for the period
from the beginning of such fiscal year to the end of such month, all certified by its CFO.”

 

    	 	 -4-	 

     

    

 

(i)                
Section 6.21(a) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution
therefor:

 

“(a)Fixed
Charge Coverage Ratio. Commencing with the fiscal quarter ending on June 30, 2018, the Borrower will not permit the ratio,
determined as of the end of each of its fiscal quarters for the then most-recently ended four (4) fiscal quarters, of (i) Consolidated
EBITDA plus Consolidated Rentals plus an amount equal to the net cash proceeds received by Borrower from the issuance
of its equity interests during the period commencing on April 1, 2017 and ending on September 30, 2017, plus such other
adjustments approved by Required Lenders, minus Maintenance Capital Expenditures minus Restricted Payments minus
cash taxes minus, the Cash Flow Reserve, to (ii) Consolidated Interest Expense, plus Consolidated Rentals, plus
Consolidated Principal Payments over the four (4) fiscal quarters then ending, all calculated for the Borrower and its Subsidiaries
on a consolidated basis, to be less than 1.20 to 1.00.”

 

(j)                
Section 6.21(b) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution
therefor:

 

“(b)Leverage
Ratio. Commencing with the month ending June 30, 2018, the Borrower will not permit the ratio, determined as of the end of
each of its fiscal quarters commencing with the fiscal quarter ending on June 30, 2018, of (i) Consolidated Funded Indebtedness
to (ii) Consolidated EBITDA for the then most-recently ended four (4) fiscal quarters to be greater than the ratio indicated
for each determination date specified below:

 

	Determination Dates	Ratio
	On June 30, 2018	5.50:1.00
	On September 30, 2018 and on the last day of each calendar quarter thereafter	3.50:1.00

 

(k)              
Section 6.21(c) of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution
therefor:

 

“(c)Minimum
Consolidated EBITDA. Borrower shall not permit Consolidated EBITDA determined as of the last day of each month for the then
most-recently ended three month period to be less than (i) $4,600,000 as of January 31, 2018, (ii) $4,600,000 as of February 28,
2018, (iii) $4,900,000 as of March 31, 2018, (iv) 5,700,000 as of April 30, 2018, (v) $6,400,000 as of May 31, 2018, (vi) $7,100,0000
as of June 30, 2018, (vii) $8,000,000 as of July 31, 2018, and (viii) $9,000,000 as of August 31, 2018.”

 

    	 	 -5-	 

     

    

 

(l)                
Section 6.21 of the Credit Agreement is amended by adding the following as subsections 6.21(d), (e) and (f) thereto:

 

“(d)Borrower
shall maintain a book cash balance of not less than $500,000 at all times until March 15, 2018 and $1,300,000 at all times from
and after March 16, 2018, tested weekly, commencing March 2, 2018 and as of the last day of each week thereafter.

 

(e)       Borrower
shall not incur Capital Expenditures, measured monthly, on a trailing three month basis, to be more than (i) $3,152,000 as of February
28, 2018, (ii) $1,450,000 as of March 31, 2018, (iii) $1,345,000 as of April 30, 2018, (iv) $1,089,000 as of May 31, 2018, (v)
$1,384,000 as of June 30, 2018, (vi) $1,506,000 as of July 31, 2018 and (vii) $1,628,000 as of August 31, 2018.

 

(f)       Borrower
shall not permit total disbursements for the weekly period covered by the Cash-Flow Forecast to exceed the projected cash disbursements
as set forth in the Cash-Flow Forecast for such period by more than ten percent (10%) on a cumulative basis, or permit total Net
Cash Flow (as defined in the Cash-Flow Forecast) to be more than ten percent (10%) less than the projected Net Cash Flow as set
forth in the Cash-Flow Forecast for such weekly period.”

 

(m)            
Schedule I to the Form of Compliance Certificate attached to the Credit Agreement as Exhibit B is hereby deleted
and Schedule I attached to this Agreement is inserted in place thereof.

 

(n)              
Borrower shall at all times continue to engage its current financial consultant and/or such other consultants acceptable
to Administrative Agent.

 

(o)              
By not later than March 15, 2018, Borrower shall retain consultants and/or advisors reasonably acceptable to Administrative
Agent to assist Borrower in formulating a strategic plan together with viable alternatives available to Borrower to facilitate
the repayment of the outstanding Obligations in full. By not later than March 9, 2018, Borrower and its consultants shall provide
Administrative Agent with a revised 2018 financial plan. By not later than May 1, 2018, Borrower and its consultants and/or advisors
shall provide Administrative Agent with an updated 2019 through 2021 financial plan, together with their analysis of strategic
alternatives available to Borrower to facilitate the repayment of the outstanding Obligations in full. Upon consultation with and
approval by Administrative Agent, Borrower shall, by not later than June 1, 2018, have initiated such strategic alternative acceptable
to Administrative Agent and Required Lenders.

 

(p)              
Borrower shall make its consultants and/or advisors (i) directly accessible to Administrative Agent and its consultants,
and Borrower’s consultants and/or advisors shall be authorized to respond directly to reasonable information requests of
Administrative Agent and its consultants, (ii) available to meet with Administrative Agent and Lenders at any time, upon request
by Administrative Agent and (iii) provide Administrative Agent and Lenders with any reports prepared by such consultants and/or
advisors.

 

    	 	 -6-	 

     

    

 

(q)              
Notwithstanding anything contained in the Credit Agreement to the contrary, any proceeds from the issuance of equity interests
of Borrower on and after the Effective Date shall, to the extent of the first $10,000,000 of such proceeds, be applied as a prepayment
of the Revolving Loans and, to the extent in excess of $10,000,000, as a prepayment of the principal installments of the Term Loans
in the inverse order of their maturity.

 

(r)               
In the event that Borrower fails to raise market equity proceeds of at least $5,000,000 by not later than March 31, 2018,
Borrower shall, on April 1, 2018, pay Administrative Agent a fee for the pro rata benefit of Lenders, in the amount of $210,000.

 

Section 3.               
Representations and Warranties. To induce Administrative Agent and Lenders to execute this Agreement, Borrower hereby
represents and warrants to Administrative Agent and Lenders as follows:

 

(a)              
Authorization; No Conflict. Borrower is duly authorized to execute and deliver this Agreement. The execution, delivery
and performance by Borrowers of this Agreement, do not and will not (a) 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), (b) conflict with (i)
any provision of applicable law, (ii) the charter, by-laws or other organizational documents of Borrower or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree, which is binding upon Borrower or any of its properties
or (c) require, or result in, the creation or imposition of any Lien on any asset of Borrower or any other Loan Party (other than
Liens in favor of Administrative Agent created pursuant to the Loan Documents).

 

(b)              
Binding Effect. This Agreement constitutes the legal, valid and binding obligation of Borrower enforceable against
Borrower in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’
rights generally and to general principles of equity (whether enforcement is sought by proceeding in equity or at law).

 

(c)              
Continuation of Representations and Warranties. After giving effect to this Agreement, each of the representations
and warranties of Borrower in the Credit Agreement and the other Loan Documents are true and correct in all material respects with
the same effect as though made on and as of the date hereof (except to the extent such representations and warranties expressly
relate to a specific earlier date, in which case such representations and warranties shall be true and correct in material respects
as of such earlier date).

 

    	 	 -7-	 

     

    

 

(d)              
No Event of Default. After giving effect to this Agreement, no Event of Default exists.

 

Section 4.               
Conditions Precedent. This Agreement shall be effective as of the date first set forth above, subject to the satisfaction
of the following conditions precedent (the date of such satisfaction being the “Effective Date”):

 

4.1             
Execution and Delivery. Borrower, Administrative Agent and Lenders shall have executed and delivered this Agreement.

 

4.2             
No Events of Default. No Event of Default under the Credit Agreement (other than the Existing Events of Default and
Anticipated Events of Default) shall have occurred and be continuing or will result from the consummation of the transactions contemplated
by this Agreement.

 

4.3             
Representations and Warranties. The representations and warranties set forth in Section 3 hereof are true
and correct.

 

4.4             
Organizational Documents. The Administrative Agent shall have received such customary documents and certificates
as Administrative Agent may reasonably request relating to the organization, existence and good standing of Borrower and the authorization
of the transactions contemplated by this Agreement.

 

4.5             
Cash-Flow Forecast. Administrative Agent shall have received the initial Cash-Flow Forecast.

 

4.6             
Payment of Fees and Attorney Costs. Borrower shall have paid to Administrative Agent for the pro rata benefit of
Lenders, the portion of the Amendment Fee (as defined below) in the amount of $210,000 due upon the execution of this Agreement
and all reasonable out-of-pocket costs and expenses of Administrative Agent (including legal fees, auditor fees, and consultant
fees).

 

Section 5.               
Amendment Fee. In consideration for Administrative Agent and Lenders entering into this Agreement, Borrower agrees
to pay to Administrative Agent, for the pro rata benefit of Lenders executing this Agreement, an amendment fee in the amount of
$632,000 (“Amendment Fee”), which shall be non-refundable and fully earned on the Effective Date of this Agreement.
A portion of the Amendment Fee in the amount of $210,000 shall be paid on the Effective Date of this Agreement as set forth in
Section 4.6 above and the balance of the Amendment Fee shall be paid on the earlier of June 30, 2018, or the occurrence of a Default
or Event of Default. In the event Borrower (i) refinances the Obligations and prepays the Obligations in full by June 30, 2018
or (ii) sells assets or equity interests which generates cash proceeds of not less than $50,000,000, and permanently prepays the
Obligations with the proceeds thereof by June 30, 2018, $211,000 of the Amendment Fee owed on June 30, 2018 shall be waived.

 

Section 6.               
Waiver. As of the Effective Date, Administrative Agent and Lenders waive the Existing Events of Default and Anticipated
Events of Default. The waiver contained herein does not apply to any other Default or Event of Default, other than the Existing
Events of Default and Anticipated Events of Default, which may now or hereafter exist under the Credit Agreement or the other Loan
Documents. No consent or waiver, express or implied, by Administrative Agent and Lenders to or for any breach of or deviation from
any covenant, condition, or duty by Borrower or any Guarantor, including the waiver of the Existing Events of Default and Anticipated
Events of Default, shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition,
or duty set forth in the Credit Agreement or the other Loan Documents. Administrative Agent’s and Lenders’ waiver contained
herein does not constitute a course of dealing nor does it constitute a course of conduct.

 

    	 	 -8-	 

     

    

 

Section 7.               
Miscellaneous.

 

7.1             
Effect of Agreement. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of
any right, power or remedy of Administrative Agent or Lenders under the Credit Agreement or any other Loan Document, or constitute
a waiver of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein, and Borrower
and each Guarantor hereby fully confirms, affirms and ratifies each Loan Document to which it is a party. Except as specifically
modified hereby, the Credit Agreement and the other Loan Documents remain in full force and effect.

 

7.2             
Counterparts. This Agreement may be executed in any number of counterparts and by the different parties on separate
counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument. Delivery of the executed counterpart of this Agreement by telecopy or electronic mail shall be
as effective as delivery of a manually executed counterpart to this Agreement.

 

7.3             
Costs and Expenses. Borrower shall pay all invoices of Administrative Agent’s auditors and financial consultants
and any legal counsel of Agent within five days of written request.

 

7.4             
Severability. The illegality or unenforceability of any provision of this Agreement or any instrument or agreement
required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement
or any instrument or agreement required hereunder.

 

7.5             
Captions. Section captions used in this Agreement are for convenience only, and shall not affect the construction
of this Agreement.

 

7.6             
Entire Agreement. This Agreement embodies the entire agreement and understanding among the parties hereto and supersedes
all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof.

 

7.7             
References. Any reference to the Credit Agreement contained in any notice, request, certificate, or other document
executed concurrently with or after the execution and delivery of this Agreement shall be deemed to include this Agreement unless
the context shall otherwise require. Reference in any of this Agreement, the Credit Agreement or any other Loan Document to the
Credit Agreement shall be a reference to the Credit Agreement as amended hereby and as further amended, modified, restated, supplemented
or extended from time to time.

 

    	 	 -9-	 

     

    

 

7.8             
Waiver of Claims and Defenses. By execution of this Agreement, Borrower and each Guarantor acknowledges and confirms
that it does not have any offsets, defenses or claims arising out of or relating to this Agreement, the Credit Agreement or the
other Loan Documents against Administrative Agent, any Lender, or any of their subsidiaries, affiliates, officers, directors, employees,
agents, attorneys, predecessors, successors or assigns whether asserted or unasserted. The Borrower and Guarantors, for and on
behalf of themselves and their legal representatives, successors and assigns, do waive, release, relinquish and forever discharge
the Administrative Agent and each Lender, its parents, subsidiaries, and affiliates, its and their respective past, present and
future directors, officers, managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs,
successors and assigns (collectively, the “Released Parties”), of and from any and all manner of action or causes
of action, suits, claims, demands, judgments, damages, levies and executions of whatsoever kind, nature or description arising
on or before the date hereof, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive
damages, in each case whether known or unknown, asserted or unasserted, liquidated or unliquidated, fixed or contingent, direct
or indirect, which the Borrower or the Guarantors, or their legal representatives, successors or assigns, ever had or now have
or may claim to have against any of the Released Parties, with respect to any matter whatsoever, including, without limitation,
the Loan Documents, the administration of the Loan Documents, the negotiations relating to this Amendment and the other Loan Documents
executed in connection with this Amendment and any other instruments and agreements executed by the Borrower or any Guarantor in
connection with the Loan Documents or this Amendment, arising on or before the date hereof (collectively, “Claims”). 
The Borrower and each Guarantor acknowledges that they are aware that they may discover facts different from or in addition to
those they now know or believe to be true with respect to the Claims, and agree that the release contained in this Amendment is
and will remain in effect in all respects as a complete and general release as to all matters released in this Amendment, notwithstanding
any such different or additional facts.  The Borrower and each Guarantor agrees not to sue any Released Party or in any way
assist any other person or entity in suing a Released Party with respect to any claim released in this Section. Borrower and each
Guarantor acknowledges and agrees that Administrative Agent and the Lenders have fully and timely performed all of their respective
obligations and duties in compliance with the Loan Documents and applicable law, and has acted reasonably, in good faith, and appropriately
under the circumstances.

 

7.9             
Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OKLAHOMA
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

 

 

[signature page follows]

 

 

    	 	 -10-	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date
first set forth above.

 

		BORROWER:	 
	 	 	 	 
	 	ORCHIDS
    PAPER PRODUCTS COMPANY	 
	 	 	 	 
	 	By:	Rod
Gloss	 
	 	Name:	/s/ Rod Gloss	 
	 	Title:	CFO 	 
	 	 	 	 
	 	 	 	 
	 	GUARANTORS:	 
	 	 	 	 
	 	ORCHIDS
    MEXICO (DE) HOLDINGS, LLC	 
	 	 	 	 
	 	By:	Rod Gloss	 
	 	Name:	/s/ Rod Gloss	 
	 	Title:	CFO	 
	 	 	 	 
	 	 	 	 
	 	ORCHIDS
    MEXICO (DE) MEMBER, LLC	 
	 	 	 	 
	 	By:	Rod Gloss	 
	 	Name:	/s/ Rod Gloss	 
	 	Title:	CFO	 
	 	 
	 	ORCHID
    PAPER PRODUCTS COMPANY OF SOUTH CAROLINA
	 	 	 	 
	 	By:	Rod Gloss	 
	 	Name:	/s/ Rod Gloss	 
	 	Title:	CFO	 
	 	 	 	 
	 	OPP
    ACQUISITION MEXICO, S. de. R.L.de C.V.
	 	 	 	 
	 	By:	Rod Gloss	 
	 	Name:	/s/ Rod Gloss	 
	 	Title:	CFO	 

 

     

     

    

  

	 	ADMINISTRATIVE AGENT:	 
	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as

                                                                      a Lender, LC Issuer, Swing Line Lender and Administrative Agent
	 
	 	 	 	 
	 	By:	Mike Warren	 
	 	Name:	/s/ Mike Warren	 
	 	Title:	SR V.P.	 
	 	 	 	 
	 	 	 	 
	 	LENDERS:	 
	 	 	 	 
	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender	 
	 	 	 	 
	 	By:	R. Alan Green	 
	 	Name:	/s/ R. Alan Green	 
	 	Title:	Authorized Signer	 
	 	 	 	 
	 	 	 	 
	 	SUNTRUST BANK, as a Lender	 
	 	 	 	 
	 	By:	Samuel M. Ballesteras	 
	 	Name:	/s/ Samuel M. Ballesteras	 
	 	Title:	Senior Vice President	 
	 	 	 	 
	 	 	 	 
	 	FIRST TENNESSEE BANK, as a Lender	 
	 	 	 	 
	 	By:	Jim Hennigan	 
	 	Name:	/s/ Jim Hennigan	 
	 	Title:	Senior Vice President	 

  

     

     

    

 

SCHEDULE I TO COMPLIANCE CERTIFICATE

 

Compliance as of [________________], 20[_____]
with

Provisions of Section 6.21 of

the Agreement

 

		(a)	Fixed
                                         Charge Coverage Ratio (determined as of the end of each fiscal quarter for the then
                                         most-recently ended four (4) fiscal quarters)

 

	i.  Consolidated EBITDA	$ 
	ii.  Consolidated Rentals	$
	iii.  Net cash proceeds received from the issuance of its equity interest during the period commencing on April 1, 2017 and ending on September 30, 2017	$
	iv.  Such other adjustments as approved by Required Lenders	$
	v.  Maintenance Capital Expenditures	$
	vi.  Restricted Payments	$
	vii.  Cash taxes	$
	viii.  Cash Flow Reserve	
	ix.  Line i, plus ii, iii and iv, minus lines v, vi, vii, and viii	$
	x.  Consolidated Interest Expense	$
	xi.  Consolidated Rentals	$
	xii.  Consolidated Principal Payments over the four (4) fiscal quarters then ending	$
	xiii.  Line x, plus xi and xii	$
	xiv.  Line ix divided by Line xiii	 
	Required Ratio	1.20  to 1.00
	Compliance	Yes
 ̈       No  ̈

 

		(b)	Leverage
                                         Ratio (determined as of the end of each fiscal quarter for the then most-recently
                                         ended four (4) fiscal quarters)

 

	i.  Consolidated Funded Indebtedness	$
	ii.  Consolidated EBITDA	$
	iii.  Line i. divided by line ii.	 
	Required Ratio	______ to 1.00
	Compliance	Yes
 ̈       No  ̈

 

     

     

    

 

		(c)	Minimum
                                         EBITDA (determined as of the last day of each month for the then most-recently ended
                                         three month period)

 

	Consolidated EBITDA	$
	Required Consolidated EBITDA	$
	Compliance	Yes
 ̈       No  ̈

 

		(d)	Book
                                         Cash Balance (determined as of the last day of each month)

 

	Book Cash Balance	$
	Required Book Cash Balance	$
	Compliance	Yes
 ̈       No  ̈

 

		(e)	Capital
                                         Expenditures (determined as of the last day of each month for the most recently ended
                                         three month period)

 

	Capital Expenditures	$
	Maximum Permitted Capital Expenditures	$
	Compliance	Yes
 ̈       No  ̈

 

		(f)	Cash-Flow
                                         Forecast Compliance (measured weekly on a cumulative basis)

 

	Actual Cash Expenditures	$
	Budget Cash Expenditures	$
	Compliance (after application of variance)	Yes
 ̈       No  ̈

 

	Actual Net Cash Flow	$
	Budget Net Cash Flow	$
	Compliance (after application of variance)	Yes
 ̈       No  ̈

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]