Document:

Exhibit 10.1

 

 

GRAPHIC
PACKAGING INTERNATIONAL, INC.,

 

 

THE SEVERAL
LENDERS

FROM TIME TO TIME PARTIES HERETO,

 

 

JPMORGAN CHASE
BANK, N.A.,

as administrative agent

 

 

and

 

 

J.P. MORGAN
SECURITIES INC.,

as sole lead arranger and sole bookrunner

 

 

SECOND
AMENDMENT TO THE CREDIT AGREEMENT

 

October 17, 2005

 

 

SECOND
AMENDMENT, dated as of October 17, 2005 (this “Second Amendment”),
to the Credit Agreement, dated as of August 8, 2003, as amended,
supplemented or otherwise modified prior to the date hereof (the “Credit
Agreement”), among GRAPHIC PACKAGING INTERNATIONAL, INC., a Delaware
corporation (the “Borrower”), the several banks and other financial
institutions parties thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A.
(formerly known as JPMORGAN CHASE BANK), as administrative agent, for the
Lenders thereunder (in such capacity, the “Administrative Agent”), and
the other Agents parties thereto.

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, the
Borrower, the Lenders and the Administrative Agent are parties to the Credit
Agreement;

 

WHEREAS, the
Borrower has requested that the Administrative Agent and the Lenders agree to
amend certain provisions of the Credit Agreement as more fully described
herein; and

 

WHEREAS, the
Lenders and the Administrative Agent are willing to agree to such amendment,
but only upon the terms and subject to the conditions set forth herein;

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants hereinafter set
forth, the parties hereto hereby agree as follows:

 

1.               Defined
Terms.  Unless otherwise defined
herein, capitalized terms that are defined in the Credit Agreement are used
herein as therein defined.

 

2.               Amendments
to Subsection 1.1.

 

(a)          The definition of “Applicable
Margin” contained in subsection 1.1 of the Credit Agreement is hereby
amended by replacing clause (3)(y) therein as follows:

 

(y)         the Applicable Margin in respect of the Term Loans shall be 1.50% per
annum, in the case of ABR Loans, and 2.50% per annum, in the case of Eurodollar
Loans, provided that, at any time that (and for so long as) the Borrower’s
Indebtedness under this Agreement is rated less than B+ by S&P or less than
B1 by Moody’s, then the foregoing percentages in this clause (y) shall each be
increased by 0.25% (it being understood that the foregoing shall not limit the
rights of the Administrative Agent and the Lenders set forth in Section 9).

 

(b)         The definition of “Pricing Grid” contained in subsection 1.1
of the Credit Agreement is hereby amended by adding the following proviso after
the table in clause (b) therein:

 

provided that, at any time that (and
for so long as) the Borrower’s Indebtedness under this Agreement is rated less
than B+ by S&P or less than B1 by Moody’s, then each of the foregoing
Applicable Margins set forth in clause (b) above shall be increased by
0.25%.

 

1

 

3.               Amendment
to Subsection 4.4(a).  Subsection 4.4(a) of
the Credit Agreement is hereby amended by deleting the words “first anniversary”
from the first proviso thereto and substituting in lieu thereof the words “second
anniversary”.

 

4.               Amendment
to Subsection 8.1.  Subsection 8.1
of the Credit Agreement is hereby amended by deleting such subsection in
its entirety and substituting in lieu thereof the following:

 

8.1.                Financial
Condition Covenants.

 

(a)          Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as at
the last day of any period of four consecutive fiscal quarters of Holding
ending during any test period set forth below to exceed the ratio set forth
below opposite such test period below:

 

	
  Test
  Period

  	
   

  	
  Consolidated

  Leverage Ratio

  
	
   

  	
   

  	
   

  
	
  October 1, 2003 – December 30, 2004

  	
   

  	
  6.40 to 1.00

  
	
  December 31, 2004 – September 29, 2005

  	
   

  	
  6.15 to 1.00

  
	
  September 30, 2005 – March 30, 2007

  	
   

  	
  6.75 to 1.00

  
	
  March 31, 2007 – December 30, 2007

  	
   

  	
  6.50 to 1.00

  
	
  December 31, 2007 – December 30,
  2008

  	
   

  	
  6.00 to 1.00

  
	
  December 31, 2008 – March 30,
  2009

  	
   

  	
  5.50 to 1.00

  
	
  March 31, 2009 and thereafter

  	
   

  	
  4.50 to 1.00

  

 

(b)         Maintenance of Consolidated
Interest Expense Ratio.  Permit, for any period of four consecutive
fiscal quarters of Holding ending during any test period set forth below, the
Consolidated Interest Expense Ratio at the last day of such consecutive fiscal
quarter period, to be less than the ratio set forth opposite such test period below:

 

	
  Test
  Period

  	
   

  	
  Consolidated

  Interest Expense Ratio

  
	
   

  	
   

  	
   

  
	
  October 1, 2003 – December 30, 2004

  	
   

  	
  2.00 to 1.00

  
	
  December 31, 2004 – September 29, 2005

  	
   

  	
  2.25 to 1.00

  
	
  September 30, 2005 – December 30, 2007

  	
   

  	
  1.75 to 1.00

  
	
  December 31, 2007 – December 30, 2008

  	
   

  	
  1.85 to 1.00

  
	
  December 31, 2008 – March 30, 2009

  	
   

  	
  2.00 to 1.00

  
	
  March 31, 2009 and thereafter

  	
   

  	
  2.90 to 1.00

  

 

5.               Conditions
to Effectiveness of this Second Amendment. 
This Second Amendment shall become effective upon the date (the “Second
Amendment Effective Date”) when the following conditions are satisfied:

 

(a)          the Administrative Agent shall have received (i) counterparts
of this Second Amendment, duly executed and delivered by the Borrower and the
Administrative Agent, (ii)

 

2

 

executed Lender Addenda, or facsimile
transmissions thereof, substantially in the form of Exhibit A hereto
(each, a “Lender Addendum”), from the Required Lenders under the Credit
Agreement, (iii) an executed Acknowledgment and Confirmation,
substantially in the form of Exhibit B hereto, from an authorized officer
of each Loan Party (other than the Borrower) and (iv) all fees required to
be paid on or before the Second Amendment Effective Date, and all expenses
required to be paid on or before the Second Amendment Effective Date for which
invoices have been presented; and

 

(b)         the Borrower shall have paid to the Administrative Agent, on
behalf of each Lender which shall have executed and delivered a Lender Addendum
to counsel of the Administrative Agent by 5:00 p.m. (New York City time)
on October 12, 2005, an amendment fee in an amount equal to 0.25% of the
sum of each such Lender’s Revolving Credit Commitment and Term Loans then
outstanding.

 

6.               Representations
and Warranties.

 

(a)          No Default.  No Default or Event of Default shall have
occurred and be continuing on the Second Amendment Effective Date after giving
effect to the transactions contemplated herein.

 

(b)         Representations and Warranties.  Each of the representations and warranties
made by the Loan Parties in or pursuant to the Loan Documents shall be true and
correct in all material respects on and as of the Second Amendment Effective
Date (after giving effect hereto) as if made on and as of such date, except to
the extent such representations and warranties expressly relate to a particular
date, in which case such representations and warranties were true and correct
in all material respects as of such date

 

7.               Payment
of Expenses.  The Borrower agrees to
pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with this Second
Amendment, any other documents prepared in connection herewith and the
transactions contemplated hereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent.

 

8.               Continuing
Effect of the Credit Agreement.  This
Second Amendment shall not constitute an amendment or waiver of any provision
of the Credit Agreement not expressly referred to herein and shall not be
construed as an amendment, waiver or consent to any further or future action on
the part of the Loan Parties that would require an amendment, waiver or consent
of the Lenders or Administrative Agent. 
Except as expressly amended hereby, the provisions of the Credit
Agreement are and shall remain in full force and effect.  Any reference to the “Credit Agreement” in
the Loan Documents or any related documents shall be deemed to be a reference
to the Credit Agreement as amended by this Second Amendment. 

 

9.               Counterparts.  This Second Amendment may be executed by one
or more of the parties hereto on any number of separate counterparts (including
by facsimile), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

 

10.         Severability.  Any provision of this Second Amendment which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such

 

3

 

prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

11.         Integration.  This Second Amendment and the other Loan
Documents represent the agreement of the Loan Parties, the Administrative Agent
and the Lenders with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents.

 

12.         GOVERNING
LAW.  THIS SECOND AMENDMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SECOND AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

 

[THE REMAINDER
OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS
WHEREOF, the parties hereto have caused this Second Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

 

 

	
   

  	
  GRAPHIC PACKAGING INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel J. Blount

  	
   

  
	
   

  	
   

  	
  Name: Daniel J. Blount

  
	
   

  	
   

  	
  Title: Senior Vice President and CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter S. Predun

  	
   

  
	
   

  	
   

  	
  Name: Peter S. Predun

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

Graphic Packaging
Second Amendment Signature Page

 

 

EXHIBIT A

 

[FORM OF]

 

LENDER ADDENDUM

 

 

The
undersigned Lender (i) agrees to all of the provisions of the Second
Amendment, dated as of October 17, 2005, to the Credit Agreement, dated as
of August 8, 2003, as amended, supplemented or otherwise modified prior to
the date hereof, among Graphic Packaging International, Inc., a Delaware
corporation, the several banks and other financial institutions parties thereto
(the “Lenders”), JPMorgan Chase Bank, N.A. (formerly known as JPMorgan
Chase Bank), as administrative agent for the Lenders thereunder (the “Administrative
Agent”), and the other Agents parties thereto and (ii) consents to the
execution of such Second Amendment by the Administrative Agent.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of Lender)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

Dated as of October 17, 2005

 

 

EXHIBIT B

 

FORM OF

ACKNOWLEDGMENT AND CONFIRMATION

 

1.                                       Reference
is made to Second Amendment, dated as of October 17, 2005 (the “Second
Amendment”), to the Credit Agreement, dated as of August 8, 2003, as
amended, supplemented or otherwise modified prior to the date hereof (the “Credit
Agreement”), among Graphic Packaging International, Inc., a Delaware
corporation, the several banks and other financial institutions parties thereto
(the “Lenders”), JPMorgan Chase Bank, N.A. (formerly known as JPMorgan
Chase Bank), as administrative agent for the Lenders thereunder (in such
capacity, the “Administrative Agent”), and the other Agents parties
thereto.  Unless otherwise defined
herein, capitalized terms that are defined in the Credit Agreement are used
herein as therein defined.

 

2.                                       Each of the parties hereto hereby (a) consents
to the transactions contemplated by the Second Amendment and (b) agrees
that such party’s obligations under the Guarantee and Collateral Agreement
shall remain in full force and effect after giving effect to the Second
Amendment.

 

3.                                      THIS
ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

4.                                       This
Acknowledgment and Confirmation may be executed by one or more of the parties
hereto on any number of separate counterparts (including by telecopy), and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument.

 

 

[rest of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgement
and Confirmation to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

 

 

	
   

  	
  GRAPHIC PACKAGING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GPI
  HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAPHIC
  PACKAGING INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RIVERWOOD
  INTERNATIONAL MACHINERY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  SLEVIN
  SOUTH COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN
  TECHNOLOGIES COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN
  EQUITIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAUENER
  ENGINEERING LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title:Exhibit 10.1

 

October 17, 2005

 

Lisa
Bayne

33 Aladdin Terrace

San
Francisco, CA 94133

 

Dear Lisa,

 

On behalf of The J. Jill Group, Inc. (“J. Jill” or the “Company”),
I am pleased to offer you the position of Executive Vice President/Chief
Marketing Officer in accordance with the following:

 

•                  We
understand that you will not be relocating to this area for a period of up to
15 months.  During the initial period
prior to your relocation, however, you will be expected to spend, on average,
at least two weeks per month working in Quincy, MA at the Company’s
headquarters.

 

•                  Prior
to your relocation, your base salary will be at the rate of $300,000 per
annum.  Following relocation within 15
months of your employment start date, your base salary will be increased to
$375,000 per annum.  Your salary will be
paid to you on a bi-weekly basis.  Your
first salary review will take place in 2007 concurrent with the salary reviews
for the officers of the Company.  You
will report to me, and your start date will be October 31, 2005.

 

•                  If
during the initial 15-month period, it becomes apparent to you that you would
not be able to relocate to the Quincy, MA area without substantial personal
hardship, you agree to notify us promptly and we will work with you to
determine if mutually satisfactory arrangements can be made.

 

•                  You
will be eligible for participation in the corporate bonus program at the
executive vice president level, commencing in 2007.  For 2006 only, you will receive a bonus for
the Spring 2006 season and the Fall 2006 season equal to 80% of the base salary
paid to you for the relevant season. 
Bonus payments for the Spring 2006 season (payable in July 2006)
and the Fall 2006 season (payable in January 2007) are guaranteed and will
be paid to you whether or not the Company’s performance goals under the 2006
corporate bonus program are achieved, unless you voluntarily leave J. Jill or
your employment is terminated by J. Jill for “Just Cause” prior to the first
day of the month in which such bonuses are typically paid out (July 1,
2006 and January 1, 2007, respectively). 
If you

 

 

voluntarily leave or resign for other than “Good
Reason” or if your employment by J. Jill is terminated for “Just Cause” during
your first two years of employment, however, you will be required to reimburse
the Company for the Spring 2006 season and Fall 2006 season bonus payments paid
to you.  “Just Cause” for termination
shall be deemed to exist upon (a) your willful failure or refusal to
perform your designated responsibilities, or gross negligence or willful
misconduct in the performance of such responsibilities, or (b) your
conviction of, or the entry of a pleading guilty or nolo contendere by you to,
any crime involving moral turpitude or any felony.  “Good Reason” for resignation shall be a
resignation based on one or more of the following events occurring without your
express written consent:  (a) a
substantial and adverse reduction in your duties and authority at J. Jill; or (b) a
material reduction in your base salary without good business reasons.

 

•                  You
will receive an option to purchase 30,000 shares of J. Jill Common Stock.  The exercise price will be the current fair
market value (i.e., the Nasdaq
closing price) on the day the Compensation Committee of the Board of Directors
votes its approval.  The option will vest
1/3 per year over a three-year period, on the first, second and third
anniversaries of the date of grant, with vesting on any vesting date contingent
on continued employment with J. Jill.

 

•                  You
will be eligible for a full range of company and executive benefits made
available generally to J. Jill executive vice presidents.  Currently these benefits include a standard
form of severance agreement relating to change of control events, life
insurance with a $750,000 death benefit subject to evidence of insurability and
passing a standard physical exam, and estate/tax planning benefits at the rate
of $7,500 for the first year of employment and $5,000 for each subsequent
year.  Health benefits are currently
provided by Blue Cross and Blue Shield of Massachusetts and will be explained
to you during your first few days of employment.  These employee benefit plans and fringe
benefits may be amended, enlarged, diminished or terminated by J. Jill from
time to time.  Your eligibility to
participate in any benefit plans and to receive benefits thereunder will be
subject to the plan documents governing such plans.

 

•                  Included
in your benefit package is an annual vacation benefit of four weeks.

 

•                  You
will be eligible to participate in the Executive Deferred Compensation
Program.  Additional information
regarding this benefit will be discussed with you within the first few days of
your employment.

 

•                  You
will also be eligible to participate in The J. Jill Group 401(k) Plan on the
first of the month following your hire date.

 

•                  The
Company will reimburse you for all reasonable and customary business expenses
reasonably incurred by you, including travel and lodging relating to trips

 

2

 

to and from Quincy, MA during the initial
period, in accordance with the policies of the Company from time to time in
effect.

 

•                  The
Company will also reimburse you for relocation expenses incurred by you during
the period beginning with your acceptance of this offer and ending 15 months
from your employment start date (unless subsequent arrangements are reached
with the Company) in accordance with the relocation policies of the Company in
effect at the time of your relocation. 
If you voluntarily leave J. Jill or resign for other than “Good Reason”
(as defined above) or if your employment is terminated by J. Jill for “Just
Cause” (as defined above) during the one-year period following the completion
of your relocation, you will be required to reimburse the Company for the total
relocation expenses paid to you.

 

•                  It
is understood and agreed that either you or J. Jill may terminate the
employment relationship at any time and for any reason upon giving thirty days’
prior written notice.  In the event of
any such termination, you will be eligible to receive the salary and benefits
accrued up to the date of termination. 
In addition, in the event your employment is terminated by J. Jill for
any reason other than for “Just Cause” (as defined above) between your employment
start date and the second anniversary of your employment start date or you
resign for “Good Reason” (as defined above) between your employment start date
and the second anniversary of your employment start date, and provided you sign
a release of claims in favor of J. Jill and its affiliates, J. Jill will make a
lump-sum severance payment to you within 30 days of the termination of your
employment equal to (i) your annual base salary plus (ii) notwithstanding
any provision of any incentive compensation or bonus plan applicable to you and
in lieu of any payment to you under any such plan, a pro rata portion to the
date of termination of the aggregate value of all contingent incentive
compensation awards to you for all performance periods under any such plans in
effect but uncompleted at the date of termination, calculated as to each such
award by multiplying such aggregate value, treating any and all performance
goals for the full period with respect to which such awards have been made as
having been met, by a fraction the numerator of which is the number of days in
such period which elapsed to the date of termination and the denominator of
which is the number of days in such period. 
In the event, however, that J. Jill determines in good faith that such
severance payment is required to be delayed for a period of six months in order
to satisfy the requirements of Internal Revenue Code 409A, J. Jill will advise
you, and such payment will be made six months after termination of your
employment.  During the year following
the date of your severance payment, you will continue to be available upon the
reasonable request of the President/CEO of J. Jill to provide information and
assistance to J. Jill concerning matters within the scope of your
responsibilities as of the date of termination of your employment, and no
additional compensation shall be due to you for providing such information and
assistance.  In the event your employment
is terminated by J. Jill for any reason other than for “Just Cause” or if you resign
for “Good Reason” after such two-

 

3

 

year period, and if at the time of such
termination or resignation there is not in effect a company severance policy
applicable to executive vice presidents, J. Jill agrees to negotiate a
severance arrangement with you in good faith.

 

As required by federal law, employment at J. Jill is dependent upon
providing documentation that proves your eligibility to work in the United
States.  Typically, this would include
such items as a driver’s license, birth certificate, social security card, etc.

 

By accepting this offer, you represent that you are not under any
obligation to any former employer or any person, firm or corporation, which
would prevent, limit or impair in any way the performance by you of your duties
as an employee of J. Jill.

 

This offer is effective only through Wednesday, October 19, 2005
and is contingent upon securing satisfactory references and a satisfactory
background check.  In addition, this
offer is contingent upon your signing the Agreement to Protect Corporate
Property enclosed with this letter.  If
you wish to accept our offer as outlined above, please sign and return this
letter to me along with a signed copy of the Agreement to Protect Corporate
Property.  The enclosed copy is for your
records.

 

Lisa, we are thrilled you are joining the “J. Jill Team” and look
forward to the contributions you will make to the overall continued success of
the Company!

 

 

Very truly yours,

 

	
  /s/ Gordon R. Cooke

  	
   

  
	
  Gordon R. Cooke

  
	
  President and Chief Executive Officer

  

 

 

 

Accepted and agreed

this 17th day of October, 2005

 

 

	
  /s/ Lisa Bayne

  	
   

  
	
  Lisa Bayne

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]