Document:

Fifth Amendment to the Credit Agreement

 Exhibit 10.1 
  

 FIFTH AMENDMENT 
 FIFTH AMENDMENT, dated as of December 4, 2009 (this “Amendment”), to the CREDIT AGREEMENT, dated as of June 12,
2006 (as amended pursuant to the First Amendment, dated as of March 21, 2007, the Second Amendment, dated as of July 2, 2008, the Third Amendment, dated as of September 26, 2008, and the Fourth Amendment dated May 19, 2009 and as
further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among CELLU PAPER HOLDINGS, INC. (“Holdings”), CELLU TISSUE HOLDINGS, INC. (the “Borrower”),
INTERLAKE ACQUISITION CORPORATION LIMITED, the Loan Guarantors party thereto, the lenders party thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A., as US Administrative Agent (in such capacity, the “Administrative
Agent”) and JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian Administrative Agent. 
 RECITALS 

WHEREAS, the Borrower intends to reorganize its corporate structure through a series of mergers whereby Cellu Parent Corporation and
Holdings will be merged into the Borrower (the “Reorganization”); 
 WHEREAS, following the Reorganization, the
Borrower intends to issue common stock in an initial public offering (the “IPO”) and use the proceeds of such issuance to repay, repurchase, redeem or otherwise retire certain existing Indebtedness, including, but not limited to,
potentially redeeming or repurchasing the Atlantic Seller Note and a portion of the 2009 Senior Secured Notes; 
 WHEREAS,
subsequent to the IPO, the Investor Group intends to sell common stock of the Borrower in a secondary public offering; 
 WHEREAS, in connection with such issuance, the Lenders are willing to agree to certain amendments to the Credit Agreement subject to the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto hereby agree as follows: 
 AGREEMENT 
 1. Defined Terms. Terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit
Agreement. As used in this Amendment, the following term has the meaning specified below: 
 “Final Prospectus”
means the “Prospectus” as such term is defined in the Underwriting Agreement. 
 “Underwriting
Agreement” means the underwriting agreement to be entered into in connection with the IPO between Cellu Tissue Holdings, Inc., Weston Presidio V, L.P., the selling stockholders named therein, and Goldman, Sachs & Co. and J.P.
Morgan Securities Inc. as representatives of the several underwriters named therein. 

 2 
  

 2. Amendment to Section 1.01. Section 1.01 of the Credit Agreement is
hereby amended by: 
 (a) replacing the definition of “Change in Control” in its entirety with the following:

 “Change in Control” means: 
 (a) any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) other than the Investor Group becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have “beneficial ownership” of all shares that any
such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the voting Equity Interests of the US Borrower or
any of its direct or indirect parent entities (or their successors by merger, consolidation or purchase of all or substantially all of their assets) (for the purposes of this clause, such person or group shall be deemed to beneficially own any
voting Equity Interests of the US Borrower or any of its direct or indirect parent entities held by a parent entity, if such person or group “beneficially owns” (as defined above), directly or indirectly, more than 50% of the voting power
of the voting Equity Interests of such parent entity); or 
 (b) the first day on which a majority of the members
of the board of directors of the US Borrower are not Continuing Directors; or 
 (c) the sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the US Borrower and its Subsidiaries taken as a whole to any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or 
 (d) the adoption by the
stockholders of the US Borrower of a plan or proposal for the liquidation or dissolution of the US Borrower; or 
 (e) the US Borrower ceases to own, free and clear of all Liens other than Permitted Encumbrances, 100% of the outstanding Equity Interests of the Canadian Borrower. 
 (b) adding the following definitions in the appropriate alphabetical order: 
 “Continuing Director” means as of any date of determination, any member of the board of directors of the US
Borrower who (a) was a member of such board of directors on the Fifth Amendment Effective Date or (b) was nominated for election or election to such board of directors with the approval of a majority of the Continuing Directors who were
members of such board of directors at the time of such nomination or election. 
 “Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the United States Securities and Exchange Commission promulgated thereunder. 

 3 
  

 “Fifth Amendment” means that certain Fifth Amendment dated
as of December 4, 2009 by and among the US Borrower, the Canadian Borrower, the other Loan Guarantors party thereto, the Lenders party thereto, the US Administrative Agent and the Canadian Administrative Agent. 
 “Fifth Amendment Effective Date” means the “Effective Date” as defined in the Fifth Amendment.

 “IPO” has the meaning assigned thereto in the Fifth Amendment. 
 “Reorganization” has the meaning assigned thereto in the Fifth Amendment. 
 (c) deleting the words “or dividends or distributions paid by the US Borrower to Holdings pursuant to Sections 6.08(a)(iii) and
6.08(a)(v)” in the definition of “Excess Cash Flow” thereof. 
 (d) deleting the words “plus,
dividends or distributions paid in cash by the US Borrower to Holdings other than dividends paid pursuant to Section 6.08(a)(v),” in the definition of “Fixed Charges” thereof. 
 (e) deleting the words “(i) subject to the last sentence of Section 5.13(a), Holdings, and (ii)” in the definition of
“Loan Guarantor” thereof. 
 (f) deleting the word “Holdings,” in the definition of “Loan Parties”
thereof. 
 (g) replacing subsection (b) in the definition of “Prepayment Event” in its entirety with the
following: 
 “(b) the issuance by the US Borrower of any Equity Interests, or the receipt by the US
Borrower of any capital contribution, other than any issuance by the US Borrower of Equity Interests or receipt of any such capital contributions in connection with the Reorganization or the IPO; or” 
 (h) amending the definition of “Swap Agreement” thereof by (i) inserting the words “(including, for the avoidance of
doubt, any Energy Hedging Contract)” after the word “transactions” in the fifth line thereof, and (ii) deleting the words “no Energy Hedging Contract and” in the first line of the proviso thereof. 
 3. Amendment to Section 3.11. Section 3.11 of the Credit Agreement is hereby amended by deleting the words “and
Holdings” each time such words appear in such Section. 
 4. Amendment to Section 3.14. Section 3.14 of
the Credit Agreement is hereby amended by deleting the words “and Holdings believe” and substituting therefor the word “believes”. 
 5. Amendment to Section 3.15. Section 3.15 of the Credit Agreement is hereby amended by (i) inserting the words “and its Subsidiaries’” after the words “the US
Borrower’s”, and (ii) inserting the words “, in the case of the Subsidiaries of the US Borrower,” before the word “owned”, in each case where such words appear in subsection (b) thereof. 

 4 
  

 6. Amendment to Section 5.13. Section 5.13 of the Credit Agreement is
hereby amended by deleting the last sentence of subsection (a) thereof in its entirety. 
 7. Amendment to
Section 5.14. Section 5.14 of the Credit Agreement is hereby amended by deleting the word “Holdings,” each time such word appears in such Section and replacing the words “the Borrowers” in the first line thereof
with “The Borrowers”. 
 8. Amendment to Section 6.03. Section 6.03 of the Credit Agreement is hereby
amended by: 
 (a) inserting the words “ (other than in connection with the Reorganization or the IPO)” immediately
after the words “or liquidate or dissolve” in the third line of subsection (a) thereof. 
 (b) replacing
subsection (c) thereof in its entirety with the word “Reserved.” 
 9. Amendment to Section 6.04.
Section 6.04 of the Credit Agreement is hereby amended by deleting the words “by Holdings in the US Borrower and” in subsection (c) thereof. 
 10. Amendment to Section 6.08. Section 6.08 of the Credit Agreement is hereby amended by: 
 (a) replacing subsection (a) thereof in its entirety with the following: 
 (a) No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to
do so, except (i) the Borrowers and each Subsidiary may declare and pay dividends with respect to its common stock payable solely in additional shares of its common stock, and, with respect to any preferred stock, payable solely in additional
shares of such preferred stock or in shares of its common stock, (ii) Subsidiaries may declare and pay dividends or distributions ratably with respect to their Equity Interests, (iii) the US Borrower may make Restricted Payments to pay
for, or discharge any promissory note in respect of, the repurchase, retirement or other acquisition or retirement for value of any equity interests of the US Borrower held by any future, present or former employee, director or consultant pursuant
to any management equity plan or stock option plan or any other management or employee benefit plan or agreement, not exceeding US$5,000,000 during any fiscal year (with unused amounts in any calendar year being permitted to be carried over to the
next succeeding calendar year); (iv) the US Borrower may pay management fees pursuant to the Sponsor Management Agreement so long as such fees are permitted to be paid under Section 6.09; (v) each Subsidiary of the US Borrower may
pay, fees and expenses to the US Borrower for certain management services (including without limitation marketing, human resources and payroll and other financial services) provided by the US Borrower to such Subsidiary in accordance with the terms
of the applicable Cellu Tissue Management Agreement; and (vi) each Subsidiary of the US Borrower may pay fees and expenses to the US Borrower for certain group purchasing services provided by the US Borrower in accordance with the terms of the
applicable Cellu Tissue Purchasing Agreement. 
 (b) striking the word “and” at the end of clause (ix) of
subsection (b) thereof, replacing the period at the end of clause (x) of subsection (b) with the word “; and” and adding the following clause (xi) at the end of subsection (b) thereof: 

 5 
  

 “(xi) payment, redemption or repurchase of all or any portion of the
2009 Senior Secured Notes, the Atlantic Seller Note and the CityForest Bonds, financed in each case with proceeds from the IPO.” 
 11. Amendment to Section 6.09. Section 6.09 of the Credit Agreement is hereby amended by replacing the word “Holdings” with “the US Borrower” each time such word appears in such Section. 
 12. Amendment to Section 6.11. Section 6.11 of the Credit Agreement is hereby amended by inserting the words “(other
than amendments to the certificate of incorporation, bylaws and other organizational documents of the US Borrower in connection with the Reorganization or the IPO)” at the end of subclause (b) thereof. 
 13. Amendment to Schedules. Schedule 3.15 of the Credit Agreement is hereby replaced in its entirety with Schedule 3.15 attached
hereto. 
 14. Consent to IPO and Reorganization. The Administrative Agent and the Lenders hereby consent to the IPO and
the Reorganization and acknowledge and agree that neither the IPO nor the Reorganization shall trigger any Default or Event of Default under the Credit Agreement. 
 15. Conditions to Effectiveness. This Amendment shall become effective on the date (the “Effective Date”) on which the following conditions shall have been duly satisfied or waived
to the reasonable satisfaction of the Administrative Agent, as confirmed in writing by the Administrative Agent: 
 (a) the
Administrative Agent shall have received this Amendment, duly executed and delivered by the Loan Parties and the Lenders; 
 (b)
the Administrative Agent shall have received a certified copy of the Final Prospectus; 
 (c) the Administrative Agent shall have
received a certified copy of the Underwriting Agreement, duly executed and delivered by the parties thereto, and all conditions to the effectiveness thereof shall have been duly satisfied or waived; and 
 (d) the Administrative Agent shall have received a certified copy of the amended organizational documents of the Borrower. 
 16. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed signature page of this Amendment by email or facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. 
 17. Representations and Warranties. The Borrower hereby represents and warrants to the Lenders and
the Administrative Agent as follows: 
 (a) The Borrower has the corporate power and authority and the legal right to execute,
deliver and perform this Amendment and has taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment. This Amendment has been duly executed and delivered on behalf of the Borrower and constitutes the
legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and

 6 
  

 
subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
 (b) The representations and warranties of the Borrower set forth in Article III of the Credit Agreement as amended hereby are true and correct in all material respects as of the date hereof. 

18. Fees, Costs and Expenses. The Borrower agrees to reimburse the Administrative Agent for all reasonable fees, costs and expenses
incurred by it in connection with this Amendment, including but not limited to the reasonable fees, costs and expenses of counsel. 
 19. Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. 
 [Signature pages follow] 

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

			
	CELLU PAPER HOLDINGS, INC.
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

	
	CELLU TISSUE HOLDINGS, INC.
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

	
	INTERLAKE ACQUISITION CORPORATION LIMITED
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

	
	CELLU TISSUE LLC
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

	
	CELLU TISSUE CORPORATION – NATURAL DAM
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

	
	CELLU TISSUE CORPORATION – NEENAH
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  
  
  
  
  

 Signature Page to Fifth Amendment 

			
	COASTAL PAPER COMPANY
		
	By:	 	 Van Paper Company,
 its
Managing Partner

		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

			
	VAN PAPER COMPANY
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

			
	VAN TIMBER COMPANY
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

			
	MENOMINEE ACQUISITION CORPORATION
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

			
	CELLU TISSUE-CITYFOREST LLC
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

			
	CELLU TISSUE – LONG ISLAND, LLC
		
	By:	 	/s/ David Morris
		 	 Name:  David Morris
 Title:    Chief Financial Officer

  

 Signature Page to Fifth Amendment 

			
	CELLU TISSUE–THOMASTON, LLC
		
	By:	 	/s/ David Morris
		 	 Name: David Morris
 Title:
Chief Financial Officer

  

 Signature Page to Fifth Amendment 

			
	 JPMORGAN CHASE BANK, N.A., individually, as US Administrative Agent, Issuing Bank, Swingline Lender

 and a Lender

		
	By:	 	/s/ Thomas G. Williams
		 	 Name: Thomas G. Williams
 Title: Vice President

  
  

			
	 JPMORGAN CHASE BANK, N.A., TORONTO
 BRANCH, individually and as Canadian Administrative
 Agent and a Lender

		
	By:	 	/s/ Dan Howat
		 	 Name: Dan Howat
 Title: Senior
Vice President

  

 Signature Page to Fifth Amendment 

			
	REGIONS BANK, as a Lender
		
	By:	 	/s/ C. Mark Smith
		 	 Name: C. Mark Smith
 Title:
Senior Vice President

  

 Signature Page to Fifth Amendment 

 Schedule 3.15 
 Capitalization and Subsidiaries 
 Following the consummation of the
IPO, the authorized Equity Interests of Cellu Tissue Holdings, Inc., a Delaware corporation, shall be as set forth in the Final Prospectus and submitted to the Administrative Agent supplementally after the Effective Date. 
  

											
	 Owner
	 	 Subsidiary
	 	 Ownership
 Interest
	 	 Subsidiary Jurisdiction
of
Organization/Type
of Entity
	 	 Number of
Authorized
Shares/
Interests
	 	 Number of
Outstanding
Shares/Interests

	 Cellu Tissue
 Holdings, Inc.
	 	Cellu Tissue LLC	 	100%	 	Delaware (limited liability company)	 	N/A	 	N/A; Sole Member
						
	 Cellu Tissue
 Holdings, Inc.
	 	Cellu Tissue Corporation- Natural Dam	 	100%	 	Delaware (corporation)	 	1,000 common, $0.01 par value	 	1,000
						
	 Cellu Tissue
 Holdings, Inc.
	 	Cellu Tissue Corporation- Neenah	 	100%	 	Delaware (corporation)	 	1,000 common, $0.01 par value	 	700
						
	 Cellu Tissue
 Holdings, Inc.
	 	Interlake Acquisition Corporation Ltd.	 	100%	 	Nova Scotia, Canada (corporation)	 	100,000 common, no par value	 	1,000
						
	 Cellu Tissue
 Holdings, Inc.
	 	Menominee Acquisition Corporation	 	100%	 	Delaware (corporation)	 	1,000 common, $0.01 par value	 	1,000
						
	 Cellu Tissue
 Holdings, Inc.
	 	Van Paper Company	 	100%	 	Mississippi (corporation)	 	100,000 common	 	10,000
						
	 Cellu Tissue
 Holdings, Inc.
	 	Van Timber Company	 	100%	 	Mississippi (corporation)	 	100,000 common	 	1,000
						
	 Van Paper
 Company
	 	Coastal Paper Company	 	99%	 	Virginia (general partnership)	 	N/A	 	99%
						
	 Van Timber
 Company
	 	Coastal Paper Company	 	1%	 	Virginia (general partnership)	 	N/A	 	1%
						
	 Cellu Tissue
 Holdings, Inc.
	 	Cellu Tissue- CityForest LLC	 	100%	 	Minnesota (limited liability company)	 	N/A	 	N/A; Sole Member
						
	 Cellu Tissue
 Holdings, Inc.
	 	Cellu Tissue- Thomaston, LLC	 	100%	 	Delaware (limited liability company)	 	N/A	 	N/A; Sole Member
						
	 Cellu Tissue
 Corporation-
 Natural Dam
	 	Cellu Tissue- Long Island, LLC	 	100%	 	Delaware (limited liability company)	 	N/A	 	N/A; Sole MemberFirst Amendment to the Amended and Restated Reimbursement Agreement

 Exhibit 10.2 
 FIRST AMENDMENT TO AMENDED AND RESTATED 
 REIMBURSEMENT AGREEMENT 
 This Amendment, dated as of December 4, 2009, is made by and between CELLU
TISSUE-CITYFOREST LLC, a Minnesota limited liability company (the “Borrower”), and ASSOCIATED BANK, NATIONAL ASSOCIATION, a national banking association (the “Bank”). 
 RECITALS 
 The Borrower and the Bank have entered into an
Amended and Restated Reimbursement Agreement dated as of March 21, 2007, (the “Reimbursement Agreement”). Capitalized terms used in these recitals have the meanings given to them in the Reimbursement Agreement unless otherwise
specified. 
 The Borrower has requested that certain amendments be made to the Reimbursement Agreement, which the Bank is
willing to make pursuant to the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises and
of the mutual covenants and agreements herein contained, it is agreed as follows: 
 1. Defined Terms. Capitalized terms
used in this Amendment which are defined in the Reimbursement Agreement shall have the same meanings as defined therein, unless otherwise defined herein. In addition, Section 1.1 of the Reimbursement Agreement is amended by adding or amending,
as the case may be, the following definitions: 
 The table set forth in the definition of “Applicable Margin and Applicable
Letter of Credit Fee Percentage”: is hereby amended in its entirety to read as follows: 
  

									
	 	  	 	  	 Revolving Loans
 Applicable Margin
	 	 	 Applicable Letter of
 Credit Fee Percentage
	 
	 Levels
	  	Leverage Ratio	  	Per Annum	 	 	Per Annum	 
	 3
	  	33	  	2.25	% 	 	2.50	% 
	 2
	  	32 & <3	  	2.00	% 	 	2.50	% 
	 1
	  	<2	  	1.75	% 	 	2.50	% 

 “Change of Control”: The occurrence of any of the following events
(or any combination of the following) whether arising from any single transaction or event or any series of transactions or events (whether as the most recent transaction in a series of transactions) which, individually or in the aggregate, results
in a change in the direct or indirect ownership of Borrower, such that: 

 (a) any “person” or “group” of related persons (as such
terms are used in Sections 13(d) and 14(d) of the Exchange Act) other than the Sponsor becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have
“beneficial ownership” of all shares that any such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total
outstanding voting Equity Interests of Cellu Tissue or any of its direct or indirect parent entities (or their successors by merger, consolidation or purchase of all or substantially all of their assets) (for the purposes of this clause, such person
or group shall be deemed to beneficially own any outstanding voting Equity Interests of Cellu Tissue or any of its direct or indirect parent entities held by a parent entity, if such person or group “beneficially owns” (as defined above),
directly or indirectly, more than 50% of the outstanding voting Equity Interests of such parent entity); or 
 (b) the first day on which a majority of the members of the Board of Directors of Cellu Tissue are not Continuing Directors; or 
 (c) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of
Cellu Tissue and its Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or 
 (d) the adoption by the shareholders of Cellu Tissue of a plan or proposal for the liquidation or dissolution of Cellu Tissue; or 
 (e) Cellu Tissue shall cease to own, free and clear of all Liens other than Liens not prohibited by the Cellu Tissue JPMorgan
Credit Agreement, 100% of the outstanding Equity Interests of the Borrower; or 
 (f) any other “Change of
Control” (howsoever defined) shall occur under the Cellu Tissue Senior Secured Notes Loan Documents or the Cellu Tissue Credit Facility Loan Documents; 
 provided, that a holding company with no material assets or operations independent of its ownership of the Equity Interests of Cellu Tissue that is a direct or indirect parent Cellu Tissue shall not be
deemed to “beneficially own,” directly or indirectly, the voting Equity Interests of Cellu Tissue or a direct or indirect parent of Cellu Tissue provided that the beneficial ownership of such parent remains the same as existed prior to the
creation of such entity. 
 2. In addition, the following defined terms are hereby added to Section 1.1 of the Reimbursement
Agreement: 
  

 -2- 

 “Board of Directors”: As to any Person, the board of directors or managers,
as applicable, of such Person (or, if such Person is a partnership, the board of directors or other governing body of the general partner of such Person) or any duly authorized committee thereof. 
 “Continuing Directors”: As of any date of determination, any member of the Board of Directors of Cellu Tissue who:
(1) was a member of such Board of Directors on the First Amendment Effective Date; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such
Board of Directors at the time of such nomination or election. 
 “Exchange Act”: the Securities Exchange Act of
1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
 “First Amendment Effective
Date”: means December 4, 2009. 
 3. Section 9.18 of the Reimbursement Agreement is hereby amended in its
entirety to read as follows: 
 Section 9.18 Leverage Ratio. The Borrower shall not permit, as of any Quarterly
Measurement Date, the Leverage Ratio to be greater than 2.5 to 1.0. 
 4. Section 9.19 of the Reimbursement Agreement is
hereby amended in its entirety to read as follows: 
 Section 9.19 Fixed Charge Coverage Ratio. The Borrower shall
not permit, as of any Quarterly Measurement Date, the Fixed Charge Coverage Ratio to be less than 1.2 to 1.0. 
 5. No Other
Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Reimbursement Agreement shall remain in full force and effect and shall apply to any advance or letter of credit thereunder. 
 6. Consent to IPO and Reorganization. The Bank hereby consents to the IPO and the Reorganization and acknowledges and agrees that
neither the IPO nor the Reorganization shall trigger any Default or Event of Default under the Reimbursement Agreement. As defined herein, “IPO” means the initial public offering of shares of common stock of Cellu Tissue as described in
the S-1 Registration Statement filed by Holdings with the Securities and Exchange Commission on October 16, 2009, (File No. 333-162543) (the “S-1”). “Reorganization” means Cellu Tissue’s reorganization of its
corporate structure through a series of mergers whereby Cellu Parent Corporation and Holdings will be merged into the Cellu Tissue in connection with the IPO as described in the S-1. 
 7. Amendment Fees. The Borrower shall pay the Bank as of the date hereof, a fully earned, non-refundable fee in the amount of
$5,000 in consideration of the Bank’s execution of this Amendment. Upon effectiveness of this Amendment, the Borrower

  

 -3- 

 
shall pay the Bank an additional fully earned, non-refundable fee in the amount of $20,000 in consideration of the Bank’s execution of this Amendment. 
 8. Conditions Precedent. This Amendment shall be effective at the “First Time of Delivery” (as defined in the Underwriting
Agreement to be entered into in connection with the IPO) when the Bank shall have received an executed original hereof, together with each of the following, each in substance and form acceptable to the Bank in its sole discretion: 
 (a) The Acknowledgment and Agreement of Guarantor set forth at the end of this Amendment, duly executed by Cellu Tissue. 
 (b) A Certificate of the Secretary of the Borrower certifying as to (i) the resolutions of the board of governors of the Borrower
approving the execution and delivery of this Amendment, (ii) the fact that the articles of organization and operating agreement of the Borrower, which were previously certified and delivered to the Bank continue in full force and effect and
have not been amended or otherwise modified except as set forth in the Certificate to be delivered, and (iii) setting forth the sample signatures of each of the officers and agents of the Borrower authorized to execute and deliver this
Amendment and all other documents, agreements and certificates on behalf of the Borrower. 
 (c) A Certificate of the Secretary
of the Cellu Tissue certifying as to (i) the resolutions of the board of governors of the Cellu Tissue approving the execution and delivery of this Amendment, (ii) attaching a true and correct copy of the articles of incorporation and
bylaws of the Cellu Tissue which will become effective on the Closing Date, and (iii) setting forth the sample signatures of each of the officers and agents of the Cellu Tissue authorized to execute and deliver this Amendment and all other
documents, agreements and certificates on behalf of the Cellu Tissue. 
 9. Expiration and Renewal of Bonds Letter of
Credit. Pursuant to Section 2.10(a) of the Reimbursement Agreement, the Bonds Letter of Credit will expire on February 15, 2011, and may thereafter be renewed from time to time if the Bank decides to renew the Bonds Letter of Credit
upon request of the Borrower. Section 2.10(a) provides that any such renewal shall be for an additional period of at least twelve (12) months. The Borrower is hereby notified that while the Bank will consider requests for renewal by the
Borrower pursuant to Section 2.10(a), any such renewals shall be for an additional period of not more than twelve (12) months. 
 10. Representations and Warranties. The Borrower hereby represents and warrants to the Bank as follows: 
 (a) The Borrower has all requisite power and authority to execute this Amendment and to perform all of its obligations hereunder, and this Amendment has been duly executed and delivered by the Borrower
and constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’

  

 -4- 

 
rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
 (b) The execution, delivery and performance by the Borrower of this Amendment have been duly authorized by all necessary limited liability
company action and do not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) violate any Governmental Rule, or the articles of
organization or limited liability company agreement of the Borrower, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other material agreement, lease or instrument to which the
Borrower is a party or by which it or its properties may be bound or affected. 
 (c) All of the representations and warranties
contained in Article VII of the Reimbursement Agreement are correct in all material respects on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an
earlier date. 
 11. References. All references in the Reimbursement Agreement to “this Agreement” shall be
deemed to refer to the Reimbursement Agreement as amended hereby; and any and all references in the Loan Documents to the Reimbursement Agreement shall be deemed to refer to the Reimbursement Agreement as amended hereby. 
 12. No Waiver. The execution of this Amendment and acceptance of any documents related hereto shall not be deemed to be a waiver of
any Default or Event of Default under the Reimbursement Agreement or breach, default or event of default under any Loan Document or other document held by the Bank, whether or not known to the Bank and whether or not existing on the date of this
Amendment. 
 13. Release. The Borrower and Cellu Tissue by signing the Acknowledgment and Agreement of Guarantor set
forth below, each hereby absolutely and unconditionally releases and forever discharges the Bank, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns
thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon
contract or tort or under any state or federal law or otherwise, which the Borrower or Cellu Tissue has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising
from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown. 
 14. Costs and Expenses. The Borrower hereby reaffirms its agreement under the Reimbursement Agreement to pay or reimburse the Bank on demand for all costs and expenses incurred by the Bank in
connection with the Reimbursement Agreement, the Loan Documents and all other documents contemplated thereby, including without limitation all reasonable fees and disbursements of legal counsel. Without limiting the

  

 -5- 

 
generality of the foregoing, the Borrower specifically agrees to pay all fees and disbursements of counsel to the Bank for the services performed by such counsel in connection with the
preparation of this Amendment and the documents and instruments incidental hereto whether or not this Amendment becomes effective. The Borrower hereby agrees that the Bank may, at any time or from time to time in its sole discretion and without
further authorization by the Borrower, make a loan to the Borrower under the Reimbursement Agreement, or apply the proceeds of any loan, for the purpose of paying any such fees, disbursements, costs and expenses and the fees required under paragraph
7 hereof. 
 15. Miscellaneous. This Amendment and the Acknowledgment and Agreement of Guarantor may be executed in any
number of counterparts, each of which when so executed and delivered shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same instrument. 
 [Remainder of this page intentionally left blank.] 
  

 -6- 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first written above. 
  

											
	ASSOCIATED BANK, NATIONAL ASSOCIATION	 		 	CELLU TISSUE-CITYFOREST LLC
					
		 		 		 	By	 	 /s/ David Morris

	By	 	 /s/ Paul E. Way
	 		 		 	Name: David Morris
		 	Paul E. Way	 		 		 	Title: Chief Financial Officer
		 	Its: Senior Vice President	 		 		 		 	
		 		 		 		 		 	

  

 -7- 

 ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR 
 The undersigned, a guarantor of the indebtedness of Cellu Tissue CityForest, LLC, a Minnesota limited liability company (the
“Borrower”) to Associated Bank, National Association. (the “Bank”) pursuant to a Guaranty dated as of March 21, 2007, (the “Guaranty”), hereby (i) acknowledges receipt of the foregoing Amendment;
(ii) consents to the terms (including without limitation the release set forth in paragraph 13 of the Amendment) and execution thereof; (iii) reaffirms its obligations to the Bank pursuant to the terms of his its Guaranty; and
(iv) acknowledges that the Bank may amend, restate, extend, renew or otherwise modify the Reimbursement Agreement and any indebtedness or agreement of the Borrower, or enter into any agreement or extend additional or other credit
accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under its Guaranty for all of the Borrower’s present and future indebtedness to the Bank. 
  

			
	CELLU TISSUE HOLDINGS, INC.
		
	By	 	 /s/ David Morris

		 	Name: David Morris
		 	Title: Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]