Document:

EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT 
 TO

 LOAN AND SECURITY AGREEMENT 

This First Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 5th day of August, 2015, by and between (i) SILICON VALLEY BANK, a California corporation (“Bank”) and (ii) PLANAR SYSTEMS, INC., an Oregon corporation
(“Planar”), CLARITY, A DIVISION OF PLANAR SYSTEMS, INC., an Oregon corporation (“Clarity”), PLANAR CHINA LLC, an Oregon limited liability company (“Planar China”) and PLANAR TAIWAN
LLC, an Oregon limited liability company (“Planar Taiwan” and together with Planar, Clarity and Planar China, individually and collectively, jointly and severally, the “Borrower”). 

RECITALS 

A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of November 21, 2013, (as the same may
from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank has
extended credit to Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan
Agreement to (i) increase the Revolving Line, (ii) extend the Revolving Line Maturity Date and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject
to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT

 NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan
Agreement. 
 2. Amendments to Loan Agreement. 

2.1 Section 2.4(b) (Termination Fee). Section 2.4(b) is amended in its entirety and replaced with the following: 

(b) [Reserved]. 

  
 1 

 2.2 Section 2.4(c) (Unused Revolving Line Facility Fee). Section 2.4(c) is
amended in its entirety and replaced with the following: 
 (c) Unused Revolving Line Facility Fee. Payable monthly in arrears, on the
last day of each month occurring thereafter prior to the Revolving Line Maturity Date, and on the Revolving Line Maturity Date, a fee (the “Unused Revolving Line Facility Fee”) in an amount equal to four-tenths of one percent
(0.40%) per annum of the average unused portion of the Revolving Line, as determined by Bank; provided that during a Quarterly Streamline Period or a Monthly Streamline Period, such fee shall be reduced to one-quarter of one percent
(0.25%) per annum of the average unused portion of the Revolving Line, as determined by Bank. The unused portion of the Revolving Line, for purposes of this calculation, shall be calculated on a calendar year basis and shall equal the
difference between (i) the Revolving Line (including, without limitation, the Non-formula Availability Amount), and (ii) the average for the period of the daily closing balance of the Revolving Line outstanding plus the sum of the
aggregate amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve); 

2.3 Section 6.6 (Access to Collateral; Books and Records). Section 6.6 is amended in its entirety and replaced with the
following: 
 6.6 Access to Collateral; Books and Records. At reasonable times, on five (5) Business Days’ notice (provided
no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books. The foregoing inspections and audits shall be
conducted at Borrower’s expense and shall occur no more often than once every twelve (12) months (or more frequently as Bank shall determine is necessary); provided, that no such inspections and audits shall be conducted
while a Streamline Period remains in effect. The charge for each such inspection/audit shall be $850 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket
expenses. In the event Borrower and Bank schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to or reschedules the audit with less than ten (10) days written notice to Bank, then (without limiting any of
Bank’s rights or remedies) Borrower shall pay Bank a fee of $1,000 plus any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 

2.4 Section 6.8 (Operating Accounts). Section 6.8 is amended in its entirety and replaced with the following: 

6.8 Operating Accounts. 

(a) Maintain all of its and all of its Subsidiaries’ domestic operating and other deposit accounts and securities accounts located in the
United States with Bank and Bank’s Affiliates; 

  
 2 

 (b) Provide Bank five (5) days prior-written notice before establishing any Collateral
Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account located in the United States that Borrower at any time maintains, Borrower shall cause the applicable bank or financial
institution (other than Bank) at or with which any such Collateral Account, is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such
Collateral Account, in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts (i) located outside
the United States, or (ii) exclusively used for payroll, payroll taxes, and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such. 

2.5 Section 6.9 (Financial Covenants). Section 6.9 is amended in its entirety and replaced with the following: 

6.9 Financial Covenants. 

(a) Tangible Net Worth. From and after the First Amendment Effective Date, maintain at all times, subject to periodic reporting as of
(i) during a Quarterly Streamline Period, the last day of each quarter; and (ii) at all other times when a Quarterly Streamline Period is not in effect, the last day of each calendar month, on a consolidated basis with respect to Borrower
and its Subsidiaries, a Tangible Net Worth of at least Thirty Two Million Two Hundred Fifty One Thousand Dollars ($32,251,000), increasing by (i) fifty percent (50%) of quarterly Net Income and (ii) seventy-five percent (75%) of
the net proceeds from issuances after the First Amendment Effective Date of additional equity by Borrower and the principal amount of Subordinated Debt issued by Borrower. 

(b) Maximum Capital Expenditures. Do not exceed at any time, subject to periodic reporting as of (i) during a Quarterly Streamline
Period, the last day of each quarter; and (ii) at all other times when a Quarterly Streamline Period is not in effect, the last day of each calendar month, Capital Expenditures, measured on a cumulative basis, on a consolidated basis with
respect to Borrower and its Subsidiaries, in excess of Two Million Dollars ($2,000,000) in the aggregate in any fiscal year. 
 2.6
Section 13.1 (Definitions). The following terms and their respective definitions are hereby deleted: 
 “Existing
Accounts” is defined in Section 6.8(a). 

  
 3 

 “Existing Accounts Trigger Date” is the date that the Existing Accounts are
either (i) closed, with all proceeds thereof transferred to an account of Borrower maintained at Bank or (ii) subject to a Control Agreement in favor of Bank. 

2.7 Section 13.1 (Definitions). The following terms and their respective definition are hereby deleted and replaced with the
following: 
 “Revolving Line” is an aggregate principal amount (including, without limitation, any outstanding Non-formula
Advances), not to exceed Fourteen Million Dollars ($14,000,000) outstanding at any time. 
 “Revolving Line Maturity Date”
is August 5, 2017. 
 2.8 Section 13 (Definitions). The following new terms and their respective definitions are hereby
inserted in Section 13.1, each in its applicable alphabetical order: 
 “First Amendment Effective Date” is
August 5, 2015. 
 2.9 Compliance Certificate. The Compliance Certificate attached as Exhibit D to the Loan Agreement is
amended in its entirety and replaced with Exhibit A attached hereto. 
 3. Limitation of Amendments. 

3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as
part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as
follows: 
 4.1 Immediately after giving effect to this Amendment (including, without limitation Section 6 below), (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is continuing; 

  
 4 

 4.2 Borrower has the corporate power and authority to execute and deliver this Amendment
and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 In connection with this Amendment,
Planar has delivered to Bank its Amended and Restated Articles of Incorporation. All other organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or
restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public
body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and 
 4.7 This
Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

5. Fees. Borrower shall reimburse Bank for all legal fees and expenses incurred in connection with this Amendment and the existing Loan
Documents. 
 6. Updated Perfection Certificate. In connection with this Amendment, Borrower has delivered to Bank an updated
Perfection Certificate, dated on or about the date hereof (the “Updated Perfection Certificate”). Such Updated Perfection Certificate amends, restates and replaces in its entirety the Perfection Certificate previously delivered by
Borrower to Bank. From and after the date hereof, each reference in any Loan Document to the “Perfection Certificate” shall be deemed to be a reference to the Updated Perfection Certificate. Borrower acknowledges, confirms and agrees the
disclosures and information Borrower provided to Bank in said Updated Perfection Certificate are true and complete as of the date hereof. 

  
 5 

 7. Ratification of Loan Documents. Other than as may be supplemented, amended or otherwise
updated through and including the date hereof, Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Loan Documents, and acknowledges, confirms and agrees that the disclosures and information
provided to Bank in each Loan Document have not changed, as of the date hereof. 
 8. Integration. This Amendment and the Loan
Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of
this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 9. Counterparts. This Amendment may be
executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

10. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims
against Bank with respect to the Obligations, or otherwise as of the date hereof, and that if Borrower now has, or ever did have prior to the date hereof, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law
or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 11.
Effectiveness/Conditions Precedent. This Amendment shall be deemed effective on the First Amendment Effective Date upon: 
 (a) the due
execution and delivery to Bank of this Amendment, by each party hereto; 
 (b) Borrower’s payment to Bank of the fees described in
Section 5 above; 
 (c) a duly executed Secretary’s Certificate (with attachments, as necessary) for each Borrower; 

(d) updated evidence of insurance, in form and substance acceptable to Bank; and 

(e) such other documents, as Bank shall reasonably request. 

[Signature page follows.] 

  
 6 

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

									
	PLANAR SYSTEMS, INC.	 		 	 CLARITY, A DIVISION OF PLANAR

SYSTEMS, INC.

					
	By	 	/s/ Gerald K. Perkel	 		 	By	 	/s/ Gerald K. Perkel
	Name:	 	Gerald K. Perkel	 		 	Name:	 	Gerald K. Perkel
	Title:	 	President and Chief Executive Officer	 		 	Title:	 	President

  

									
	PLANAR TAIWAN LLC	 		 	PLANAR CHINA LLC
					
	By	 	/s/ Gerald K. Perkel	 		 	By	 	/s/ Gerald K. Perkel
	Name:	 	Gerald K. Perkel	 		 	Name:	 	Gerald K. Perkel
	Title:	 	Manager and President	 		 	Title:	 	Manager and President

 BANK: 
  

			
	SILICON VALLEY BANK
		
	By	 	s/ Mark Peterson
	Name:	 	Mark Peterson
	Title:	 	Managing Director

  
 7 

 Exhibit A to First Amendment 

EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

							
	 TO:
	 	SILICON VALLEY BANK	  	Date:	  	 
	 FROM:
	 	PLANAR SYSTEMS, INC., et al	  		  	

 The undersigned authorized officer of Planar Systems, Inc. (for itself and on behalf of each other
“Borrower”, the “Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete
compliance for the period ending                      with all required covenants except as noted below, (2) there are no Events of
Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate
and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments,
deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating
to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with
GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in
compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

 Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	 Monthly consolidated and consolidating financial statements – Borrower prepared
	  	 Monthly within 30 days when not on a Quarterly Streamline Period
	  	Yes     No
			
	 Quarterly consolidated financial statements
	  	 Quarter end within 30 days for each quarterly period in which Borrower is in a Quarterly Streamline Period and is not required to file with
the SEC
	  	Yes     No
			
	 Quarterly consolidating financial statements – Borrower prepared
	  	 Quarter end within 30 days for each quarterly period in which Borrower is in a Quarterly Streamline Period
	  	Yes     No

  
 8 

							
	 Compliance Certificate
	  	 (i) during a Quarterly Streamline Period, within thirty (30) days after the end of each quarter, and (ii) at all other times when a Quarterly Streamline
Period is not in effect, monthly, within thirty (30) days after the end of each month
	  	 	Yes     No	  
			
	 Annual financial statement (CPA Audited) (on a consolidated basis)
	  	 FYE within 120 days for each FYE in which Borrower is not required to file with the SEC
	  	 	Yes     No	  
			
	 10-Q, 10-K and 8-K
	  	 Within 5 days after filing with SEC
	  	 	Yes     No	  
			
	 A/R & A/P Agings
	  	 (i) during a Quarterly Streamline Period, within thirty (30) days after the end of each quarter, and (ii) at all other times when a Quarterly Streamline
Period is not in effect, monthly, within thirty (30)days after the end of each month
	  	 	Yes     No	  
			
	 Transaction Reports
	  	 (i) with each request for an Advance; (ii) during a Quarterly Streamline Period, quarterly, within thirty (30) days after
the end of each quarter;
 (iii) during a Monthly Streamline Period, monthly, within thirty (30) days after the end of each month;and
(iii) weekly, on the last business Day of each week when a Streamline Period is not in effect
	  	 	Yes     No	  
			
	 Projections
	  	 within thirty (30) days prior to the end of each fiscal year of Borrower and as updated and/or amended
	  	 	Yes     No	  

			                                   
                                  		                                   
                                  
	
	 The following Intellectual Property was registered after the Effective Date (if no registrations,
state
“None”)

	  
	  	

  

											
	 Financial Covenant
	  	Required	  	Actual	 	  	Complies	 
	 Maintain as indicated:
	  		  				  			
	 Minimum Tangible Net Worth
	  	*	  	 	$            	  	  	 	Yes     No	  
	 Maximum Capital Expenditures
	  	**	  	 	$            	  	  	 	Yes     No	  

  

	*	See Section 6.9(a) of the Loan and Security Agreement 

	**	See Section 6.9(b) of the Loan and Security Agreement 

  
 9 

							
	 	  	 Interest Rate
	  	Applies	 
	unrestricted cash plus the unused Availability Amount (excluding, in each calculation, any unused portion of the Non-formula Availability Amount)	  		  			
			
	 > $12,000,000
	  	LIBOR + 2.25%; Prime + 0.25%	  	 	Yes     No	  
			
	 < $12,000,000
	  	 Prime + 0.75%
 (LIBOR Not
Applicable)
	  	 	Yes     No	  

 The following financial covenant analyses and information set forth in Schedule 1 attached
hereto are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the
certification above: (If no exceptions exist, state “No exceptions to note.”) 
  

			           		           
	  

	  

	  

			           		           
	  
	  	

  

									
	Planar Systems, Inc., for itself and each other
Borrower	 		 	BANK USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
	Name:	 	 	 		 		 	AUTHORIZED SIGNER
	Title:	 	 	 		 	Date:	 	 
					
		 		 		 	Verified:	 	 
		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	 
				
		 		 		 	Compliance Status:     Yes     No

  
 10 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:
                                     

 

	I.	Tangible Net Worth (Section 6.9(a)) 

 Required:         From and
after the First Amendment Effective Date, maintain at all times, subject to periodic reporting as of (i) during a Quarterly Streamline Period, the last day of each quarter; and (ii) at all other times when a Quarterly Streamline Period is
not in effect, the last day of each calendar month, on a consolidated basis with respect to Borrower and its Subsidiaries, a Tangible Net Worth of at least Thirty Two Million Two Hundred Fifty One Thousand Dollars ($32,251,000), increasing by
(i) fifty percent (50%) of quarterly Net Income and (ii) seventy-five percent (75%) of the net proceeds from issuances after the First Amendment Effective Date of additional equity by Borrower and the principal amount of
Subordinated Debt issued by Borrower. 
 Actual: 
  

							
	     A.
	  	Consolidated total assets of Borrower and its Subsidiaries	  	 	$                	  
			
	     B.
	  	Goodwill	  	 	$                	  
			
	     C.
	  	Intangible items including unamortized debt discount and expense, Patents, Trademarks, Copyrights, and research and development expenses except prepaid expenses	  	 	$                	  
			
	     D.
	  	Notes, accounts receivable and other obligations owing to Borrower from its officers or other Affiliates	  	 	$                	  
			
	     E.
	  	Reserves not already deducted from assets	  	 	$                	  
			
	     F.
	  	Without duplication, outstanding amounts due to Borrower pursuant to that certain promissory note made by Benaq Product Oy	  	 	$                	  
			
	     G.
	  	Total Liabilities	  	 	$                	  
			
	     H.
	  	Subordinated Debt	  	 	$                	  
			
	     I.
	  	TANGIBLE NET WORTH [line A minus line B minus line C minus line D minus line E minus line F minus line G plus line H]	  	 	$                	  

 Is line I equal to or greater than the sum of (i) $32,251,000, plus (ii) fifty percent (50%) of
quarterly Net Income plus (iii) seventy-five percent (75%) of the net proceeds from issuances of additional equity by Borrower after the First Amendment Effective Date and the principal amount of Subordinated Debt issued by
Borrower? 
  

			
	                No, not in compliance
	 	              Yes, in compliance

  
 11 

	II.	Maximum Capital Expenditures (Section 6.9(b)) 

 Required: Do not exceed at any time, subject to periodic
reporting as of (i) during a Quarterly Streamline Period, the last day of each quarter; and (ii) at all other times when a Quarterly Streamline Period is not in effect, the last day of each calendar month, Capital Expenditures, measured on
a cumulative basis, on a consolidated basis with respect to Borrower and its Subsidiaries, in excess of Two Million Dollars ($2,000,000) in the aggregate in any fiscal year. 

Actual: 
  

							
	     A.
	  	Capital Expenditures – fiscal year total	  	$	                        	  

 Is line A equal to or less than $2,000,000 for any fiscal year? 

 

			
	                No, not in compliance
	 	              Yes, in compliance

  
 12Form of Executive Officer Performance Unit Award for 2015 Awards - Ex-10.1

PACKAGING CORPORATION OF AMERICA
AMENDED AND RESTATED 1999 LONG-TERM EQUITY INCENTIVE PLAN
PERFORMANCE UNIT AGREEMENT

	
		
	PARTICIPANT:
	 

	DATE OF GRANT:
	 

	NUMBER OF PERFORMANCE UNITS:
	 

	PERFORMANCE PERIOD:
	2016-2018

	SERVICE VESTING DATE
	 

This Agreement is entered into between Packaging Corporation of America., a Delaware corporation (the "Company"), and the Participant named above. In consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the Company and the Participant hereby agree as follows:
	
		
	1.
	Grant of Performance Units. Subject to the restrictions, terms and conditions of this Agreement and the Plan Documents (as hereafter defined), the Company hereby awards to the Participant the number of performance units stated above (the “Performance Units”).

	
		
	2.
	Governing Documents. This Agreement and the Performance Units awarded hereby are subject to all the restrictions, terms and provisions of the Amended and Restated 1999 Long-Term Equity Incentive Plan (the “Plan”) and the 2015 Performance-Based Equity Award Pool for Executive Officers (the “Award Pool”) adopted by the  Section 162(m) Subcommittee of the Compensation Committee on June 22, 2015 (together with the Plan, the “Plan Documents”) which are herein incorporated by reference and to the terms of which the Participant hereby agrees. Capitalized terms used in this Agreement that are not defined herein shall have the meaning set forth in the Plan Documents.

	
		
	3.
	No Stockholder Rights. The Performance Units will be a book entry credited in the name of the Participant representing a Full Value Award under the Plan and are not actual Shares. The Participant will not have the right to vote the Performance Units.  

	
		
	4.
	Vesting. Except as otherwise provided in the Plan Documents and subject to paragraphs 6 and 8 hereof, all of the Participant’s Performance Units covered hereby shall (to the extent not previously forfeited) vest as of the occurrence of a Vesting Date (as defined on Exhibits A and B).  The terms and conditions of vesting shall be as provided on Exhibit A and Exhibit B, which are separate and independent from each other, with the amount of Shares being paid out on vesting to equal the sum of: (i) the number of Shares vesting pursuant to Exhibit A; and (ii) the number of Shares vesting pursuant to Exhibit B.  Payout on any vesting shall be in the form of Shares.  

	
		
	5.
	Forfeiture Upon Separation from Service. Except as provided by the Company’s Compensation Committee or the Board of Directors, upon the Participant’s cessation of employment (or provision of other services as permitted under the Plan Documents) prior to a Vesting Date for any reason, all Performance Units granted hereunder shall be forfeited.

	
		
	6.
	Recovery of Unearned Compensation. The Performance Units are subject to the Company’s compensation recovery policy as shall be in effect from time to time.

	
		
	7.
	Dividend Equivalents.  Dividend equivalents are hereby granted on the Performance Units, which shall accrue to the extent that dividends are declared on the Shares of the Company’s common stock.  Accrued dividend equivalents shall be paid out on the Vesting Date in Shares equal in value to the amount of dividends declared between the date of award and the Vesting Date on the number of Shares actually paid out pursuant to these Performance Units on such Vesting Date pursuant to Exhibits A and B (howsoever such vesting occurs).

	 
	 

	8.
	Pool Provisions.  This award is subject to the Award Pool.  The number of Shares to be awarded on any Vesting Date may in no event exceed the number of Shares to which Participant is entitled under the Award Pool for this Award as certified by the Committee in accordance with the Award Pool (the “Certified Share Amount”).  In the event the number of Performance Units awarded hereby exceeds the Certified Share Amount, then such excess will be forfeited as of the date of such certification.

	 
	 

	9.
	Miscellaneous. The Committee may from time to time modify or amend this Agreement in accordance with the provisions of the Plan Documents. This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns and shall be binding upon and inure to the benefit of the Participant and his or her legatees, distributees and personal representatives. By signing this Agreement, the Participant acknowledges and expressly agrees that the Participant has read the Agreement and the Plan Documents and agrees to their terms. This Agreement may be executed by the Company and the Participant by means of electronic or digital signatures, which shall have the same force and effect as manual signatures. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

	 
	 

	10.
	Section 409A Compliance.  It is the intention that this Agreement conform and be administered in all respects in a manner that complies with Section 409A of the Code; provided, however, that the Company does not make any representations or guarantees of the tax treatment of the award under Section 409A or otherwise. 

Notwithstanding any provision contained in this Agreement to the contrary, if (i) any payment hereunder is subject to Section 409A of the Code, (ii) such payment is to be paid on account of the Participant’s separation from service (within the meaning of Section 409A of the Code) and (iii) the Participant is a “specified employee” (within the meaning of Section 409A(a)(2)(B) of the Code), then such payment shall be delayed, if necessary, until the first day of the seventh month following the Participant’s separation from service (or, if later, the date on which such payment is otherwise to be paid under this Agreement).  With respect to any payments hereunder that are subject to Section 409A of the Code and that are payable on account of a separation from service, the determination of whether the Recipient has had a separation from service shall be determined in accordance with Section 409A of the Code.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly authorized, and the Participant has hereunto set his or her hand, all as of the Date of Grant written above.

	
				
	PACKAGING CORPORATION OF AMERICA
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	BY:
	 
	 
	 

	 
	 
	 
	Participant

	 
	 
	 
	 

Exhibit A

Vesting Provision-Formula Component

1. Vesting Date. Vesting Date means, with respect to the vesting of  Performance Units pursuant to this Exhibit A, the earliest of (i) the fourth anniversary of the Date of Grant (subject to the terms and conditions of paragraph 2 below) (the “Service Vesting Date”), (ii) the occurrence of a Change in Control, and (iii) the Participant’s death or termination on account of Disability.

2. ROIC Peer Group Rank: In determining the actual number of Shares to vest pursuant to this Exhibit A on the Service Vesting Date, the Committee  will determine the Company’s average ROIC (as hereinafter defined) over the three years comprising the Performance Period (i.e., the arithmetic mean of ROICs for the three individual years) and compare such number against the average ROIC for the companies included in the Peer Group (as hereinafter defined).  Based on the ranking of the Company’s ROIC with the Peer Group, the Applicable Percentage of Shares will vest as follows:

	
			
	Peer Group Ranking
	Applicable Percentage

	Top quartile
	100% 

	Second quartile
	80% 

	Third quartile
	40%

	Fourth quartile
	0%

The “Peer Group” will include Aptargroup, Bemis, Berry Plastics, Cascades, Clearwater Paper, Crown Holdings, Domtar, Glatfelter, Graphic Packaging, Grief, International Paper, KapStone, Owens Illinois, Resolute Forest Products, Rock Tenn (to be replaced by West Rock if the merger of Rock Tenn and Meadwestvaco is completed), Sealed Air, Silgan and Sonoco.  The Committee may modify the Peer Group for significant or extraordinary events outside the ordinary course of business, such as mergers or acquisitions, recapitalizations, bankruptcy or other events in which a Peer Group company ceases reporting financial results to the public.  
 
“ROIC” means return on invested capital, which is calculated by dividing (a) operating profit by (b) average invested capital over the applicable period.   In calculating ROIC for the Company or a Peer Group company, the Committee may adjust for reported special, non-recurring or non-operating items or the effects of mergers, acquisitions or extraordinary transactions.  The Committee may establish rules for calculating ROIC for purposes of ensuring consistency in calculations across the Company and the Peer Group.

3.  Vesting Upon Change in Control or Death or Disability.  In the event a Vesting Date occurs as a result of a Change in Control or the Participant’s death or termination on account of Disability, then the number of Shares to be awarded to such Participant shall equal 100% of  the number of Performance Units.  

Exhibit B

Vesting Provision-Committee Determination Component

1. Vesting Date. Vesting Date means, with respect any vesting of Performance Units pursuant to this Exhibit B, the Service Vesting Date.  No vesting may occur under this Exhibit B in any other case.

2. Committee Determination. The Committee shall have the right to determine, on or around the Service Vesting Date, to pay out a number of Shares vested pursuant to this Exhibit B.  The number of Shares that the Committee may pay out on vesting pursuant to this Exhibit B will depend upon the Company’s ranking on average ROIC against the Peer Group (as determined pursuant to Exhibit A).  The Committee is not obligated to award any Shares pursuant to this Exhibit B.  The maximum number of Shares that may be awarded pursuant to vesting under this Exhibit B are as follows:

	
			
	Peer Group Ranking
	Applicable Percentage

	Top quartile
	Up to 20% of the Performance Units 

	Second quartile
	Up to 20% of the Performance Units 

	Third quartile
	Up to 40% of the Performance Units

	Fourth quartile
	No Performance Units may be vested under this Exhibit B

The Committee shall determine whether to pay out any Shares and the amount of Shares to be paid out.  In making such determination, the Committee may consider the level of ROIC performance within the quartile, the business conditions relating to the Company’s and the Peer Group companies’ performance during the Performance Period and such other factors that the Committee determines to be appropriate for purposes of assessing performance over the Performance Period.

Packaging Corporation of America

2015 Performance-Based Equity Award Pool for Executive Officers

Adopted June 22, 2015

1.   Purpose. The Committee intends to grant the Full Value Awards described herein (the “Awards”)  to the executive officers of Packaging Corporation of America (the “Company”) named herein (the “Participants”) pursuant to the Company’s Amended and Restated 1999 Long-Term Equity Incentive Plan (the “Plan”) on or around June 25, 2015 (or July 1, 2015, in the case of awards to Robert P. Mundy).  The Section 162(m) Subcommittee desires to designate such Awards as Performance-Based Compensation and hereby adopts an award pool (the “Award Pool”) of Shares available for such Awards subject to the Performance Criterion and other terms and conditions provided herein.  Capitalized terms not otherwise defined herein shall have the meanings given to them in the Plan.

2.  Performance Criterion.  The Company’s Earnings before Interest, Taxes, Depreciation and Amoritzation (“EBITDA”) shall be established as the Performance Criterion for the Award Pool.  

3.  Award Pool Shares.  The aggregate amount of Shares (the “Award Pool Shares”) available for award to all Participants in the Award Pool shall be the number equal to (i) 3.0%  of the Corporation’s EBITDA for the period beginning April 1, 2015 and ending March 31, 2016 (the “EBITDA Performance Period”); divided by (ii) the closing price of a Share on the New York Stock Exchange on June 25, 2015.

4.  Awards.  Awards shall be in the form of “Restricted Stock Awards” (pursuant to the Restricted Stock Award Agreements attached hereto as Exhibit A-1 and A-2) and “Performance Unit Awards” (pursuant to the Performance Unit Agreement attached hereto as Exhibit B).

5.  Participant Percentages and Maximums.   The percentage of Award Pool Shares (the “Award Pool Percentage”) and the maximum number of Award Pool Shares (the “Participant Maximum”) available to be awarded to each Participant for each Award, shall be as set forth in the following table.   For each Participant, half of his percentage of Award Pool shares is allocated to each type of Award.

	
				
	Participant
	Percentage of Award Pool Shares
	Maximum for Restricted Stock Awards (in shares)
	Maximum for Performance Units (in shares)*1

	Mark W. Kowlzan
	37.5%
	20,122
	24,146

	Thomas A. Hassfurther
	30%
	16,024
	19,228

	Robert P. Mundy
	15%
	13,043
	6,707

	Thomas W.H. Walton
	6.25%
	4,286
	5,143

	Charles J. Carter
	6.25%
	4,099
	4,919

	Kent A. Pflederer
	5%
	2,981
	3,577

1  In all cases, PLUS the number of dividend equivalents provided in the Performance Unit Agreement

6.  Certification of Award Pool.   The Committee (or the Section 162(m) Subcommittee) shall certify the number of Award Pool Shares available for each Participant for each Award (the “Certified Share Number”) within 75 days after the end of the EBITDA Performance Period, which shall be calculated by (a) multiplying (i) the Award Pool Percentage for such Participant for such Award by (ii) the 

aggregate number of Award Pool Shares and (b) if applicable, reducing the number calculated pursuant to subsection (a) to the Participant Maximum for such Award.   

7.  Award Agreement.  The Committee (or the Section 162(m) Subcommittee) will reduce (but not increase) the actual number of Shares to be awarded to a Participant on vesting of an Award from the Certified Share Number for such Award to the extent necessary to achieve the level of vesting provided in the Award agreements attached hereto.  

8.  Plan Provisions.  The Award Pool and Awards described herein are subject to, and made pursuant to, the terms and conditions of the Plan.  If there is any inconsistency between the terms of the Award Pool or any Award agreement and the terms of the Plan, the terms of the Plan shall control unless expressly stated that an exception to the Plan is being made.

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