Document:

EXHIBIT 10.2

AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT

as of April 29, 2014

TD Bank, N.A., as Agent

317 Madison Avenue, 3rd Floor

New York, New York 10017

Ladies and Gentlemen:

TD BANK, N.A., in its capacity as agent (in such capacity, “Agent”) pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the Secured Parties (as defined in the Loan Agreement), the parties to the Loan Agreement as lenders (individually, each a “Lender” and, collectively, “Lenders”), PRIMO WATER CORPORATION, a corporation organized under the laws of the State of Delaware (“Parent”), PRIMO PRODUCTS, LLC, a limited liability company organized under the laws of the State of North Carolina (“Products”), PRIMO DIRECT, LLC, a limited liability company organized under the laws of the State of North Carolina (“Direct”), PRIMO REFILL, LLC, a limited liability company organized under the laws of the State of North Carolina (“Refill”), PRIMO ICE, LLC, a limited liability company organized under the laws of the State of North Carolina (“ICE”; and together with Parent, Products, Direct and Refill, each a “Borrower” and collectively, “Borrowers”), and PRIMO REFILL CANADA CORPORATION, a corporation organized under the laws of the Province of British Columbia, Canada (“Canadian Guarantor”), have entered into certain financing arrangements pursuant to which Agent and Lenders may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Loan and Security Agreement, dated April 30, 2012, by and among Agent, Lenders, Borrowers and Canadian Guarantor, as amended by Amendment No. 1 to Loan and Security Agreement and Consent  dated as of February 22, 2013 (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”), and the Other Documents (as defined in the Loan Agreement).

 

Borrowers and Canadian Guarantor have requested that Agent and Required Lenders make certain amendments to the  Loan Agreement  which Agent and Required Lenders are willing to do subject to the terms hereof.

 

The parties hereto wish to enter into this Amendment No. 2 to evidence and effectuate such consent, amendments and certain other agreements relating thereto, in each case subject to the terms and conditions and to the extent set forth herein.

 

In consideration of the premises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                    Interpretation.  All capitalized terms used herein shall have the meanings assigned thereto in the Loan Agreement and the Other Documents, unless otherwise defined herein.

2.                   Amendments to Loan Agreement.

 

(a)            Additional Definition.  As used herein, the following term shall have the meaning given to it below, and the Loan Agreement and the Other Documents are hereby amended to include, in addition and not in limitation, the following definition:

 

“Amendment No. 2” shall mean Amendment No. 2 to Loan and Security Agreement, dated as of April 29, 2014, by and among Borrowers, Canadian Guarantor, Agent and the Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

     

(b)            Amendment to Section 13.1 (Term).  The last sentence of Section 13.1 is hereby deleted in its entirety and replaced by the following:

 

“Loan Parties may terminate this Agreement at any time upon not less than thirty (30) days prior written and irrevocable notice to Agent upon Payment in Full of all of the Obligations; provided, that, the Loan Parties may revoke any such termination notice relative to the proposed Payment in Full of the Obligations if the closing of any refinancing the proceeds of which will be used in whole, or in part, to make such Payment in Full does not occur on or before the date of the proposed termination.

 

3.                   Representations, Warranties and Covenants.  Each Borrower and Canadian Guarantor hereby represents, warrants and covenants to Agent and Lenders the following (which shall survive the execution and delivery of this Amendment No. 2), the truth and accuracy of which are a continuing condition of the making of Loans to Borrowers:

 

(a)            this Amendment No. 2 and each other agreement or instrument to be executed and delivered by Borrowers and Canadian Guarantor in connection herewith (collectively, together with this Amendment No. 2, the “Amendment Documents”) have been duly authorized, executed and delivered by all necessary action on the part of Borrowers and Canadian Guarantor which are a party hereto and thereto and, if necessary, their respective stockholders, as the case may be, and the agreements and obligations of Borrowers and Canadian Guarantor, as the case may be, contained herein and therein constitute the legal, valid and binding obligations of Borrowers and Canadian Guarantor, enforceable against them in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought;

 

(b)           the execution, delivery and performance of the Amendment Documents (a) are all within Borrowers’ and Canadian Guarantor’s respective corporate or limited liability company powers (or, in the case of Canadian Borrower, its unlimited liability company powers), (b) are not in contravention of law or the terms of Borrowers’ or Canadian Guarantor’s certificate or articles of incorporation of organization or formation, bylaws, operating agreement or other organizational documentation, or any indenture, agreement or undertaking to which Borrowers or Canadian Guarantor is a party or by which Borrowers or Canadian Guarantor or its property are bound and (c) shall not result in the creation or imposition of any lien, claim, charge or encumbrance upon any of the Collateral, except in favor of Agent and Lender pursuant to the Loan Agreement and the Other Documents as amended hereby;

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(c)            all of the representations and warranties set forth in the Loan Agreement and the Other Documents, each as amended hereby, are true and correct in all material respects on and as of the date hereof, as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct as of such date; and

 

(d)            no Default or Event of Default exists as of the date of this Amendment No. 2.

 

4.                   Conditions Precedent.  This Amendment No. 2 shall not be effective until the satisfaction of each of the following conditions precedent in a manner satisfactory to Agent:

 

(a)            Agent shall have received an original (or faxed or electronic copy) of this Amendment No. 2, duly authorized and executed by Borrowers and Canadian Guarantor; and

 

(b)            no Default or Event of Default exists as of the date of this Amendment No. 2.

 

5.                  Effect of this Amendment No. 2.  Except as modified pursuant hereto, no other changes or modifications to the Financing Arrangements are intended or implied and in all other respects the Other Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof.  To the extent of conflict between the terms of this Amendment No. 2 and the Other Documents, the terms of this Amendment No. 2 shall control.  The Loan Agreement and this Amendment No. 2 shall be read and construed as one agreement.

 

6.                   Further Assurances.  The parties hereto shall execute and deliver such additional documents and take such additional action as may be necessary or desirable to effectuate the provisions and purposes of this Amendment No. 2.

 

7.                   Governing Law.  The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the internal laws of the State of New York (without giving effect to principles of conflict of laws).

 

8.                   Binding Effect.  This Amendment No. 2 shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

 

9.                    Counterparts.  This Amendment No. 2 may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement.  In making proof of this Amendment No. 2, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.  Delivery of an executed counterpart of this Amendment No. 2 by telecopier or other electronic method of transmission shall have the same force and effect as delivery of an original executed counterpart of this Amendment No. 2.  Any party delivering an executed counterpart of this Amendment No. 2 by telecopier or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment No. 2, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment No. 2 as to such party or any other party. 

 

[SIGNATURE PAGE FOLLOWS]

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By the signature hereto of their duly authorized officers, the parties hereto agree as set forth herein.

	
 

	
Very truly yours,

	
 

	
 

	
 

	
 

	
 

	
 

	
PRIMO WATER CORPORATION,

	
 

	
 

	
PRIMO PRODUCTS, LLC,

	
 

	
 

	
PRIMO REFILL, LLC,

	
 

	
 

	
PRIMO ICE, LLC,

	
 

	
 

	
as Borrowers

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Mark Castaneda

	
 

	
 

	
Name:

	
/s/ Mark Castaneda

	
 

	
 

	
Title:

	
CFO

	
 

	
 

	
 

	
 

	
 

	
 

	
PRIMO DIRECT, LLC,

	
 

	
 

	
as a Borrower

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Mark Castaneda

	
 

	
 

	
Name:

	
/s/ Mark Castaneda

	
 

	
 

	
Title:

	
CFO

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
PRIMO REFILL CANADA CORPORATION,

	
 

	
 

	
as Canadian Guarantor

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
Mark Castaneda

	
 

	
 

	
Name:

	
/s/ Mark Castaneda

	
 

	
 

	
Title:

	
CFO

	
 

[Signatures Continued on Next Page]

 

[Signature Page to Amendment No. 2 to LSA and Consent]

 

[Signatures Continued from Previous Page]

	
AGREED:

	
 

	
TD BANK, N.A., as Agent

	
 

	
 

	
 

	
 

	
By:

	
Frank Bertelle

	
 

	
Name:

	
/s/ Frank Bertelle

	
 

	
Title:

	
VP

	
 

[Signature Page to Amendment No. 2 to LSA and Consent]GXP-3/31/2014-EX10.1 PS Agreement

Exhibit 10.1

PERFORMANCE SHARE AGREEMENT

THIS PERFORMANCE SHARE AGREEMENT (the “Award Agreement”) is entered into as of March 3, 2014 (the “Grant Date”), by and between Great Plains Energy Incorporated (the “Company”) and _______________________ (the “Grantee”).  All capitalized terms in this Award Agreement that are not defined herein shall have the meanings ascribed to such terms in the Company’s Amended Long-Term Incentive Plan, effective as of January 1, 2014 (the “Plan”).

WHEREAS, the Grantee is employed by the Company or one of its subsidiaries in a key capacity, and the Company desires to (i) encourage the Grantee to acquire a proprietary and vested long-term interest in the growth and performance of the Company, (ii) provide the Grantee with an incentive to enhance the value of the Company for the benefit of its customers and shareholders, and (iii) encourage the Grantee to remain in the employ of the Company as one of the key employees upon whom the Company’s success depends; and

WHEREAS, the Company wishes to grant to Grantee, and Grantee wishes to accept, an Award of Performance Shares as approved on February 11, 2014, pursuant to the terms and conditions of the Plan and this Award Agreement.

NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto agree as follows:

		
	1.
	Performance Share Award.  The Company hereby grants to the Grantee an Award of _________ Performance Shares for the three-year period ending December 31, 2016 (the “Award Period”).  The Performance Shares may be earned based upon the Company’s performance as set forth in Appendix A.

		
	2.
	Terms and Conditions.  The Award of Performance Shares is subject to the following terms and conditions:

		
	a.
	The Performance Shares shall be credited with a hypothetical cash credit equal to the per share dividend paid on the Company’s common stock as of the date of any such dividend paid during the entire Award Period, and not just the period of time after the Grant Date.  At the end of the Award Period and provided the Performance Shares have not been forfeited in accordance with the terms of the Plan, the Grantee shall be paid, in a lump sum cash payment, the aggregate amount of such hypothetical dividend equivalents.  

    
		
	b.
	No Company common stock will be delivered under this or any other outstanding awards of performance shares until either (i) the Grantee (or the Grantee’s successor) has paid to the Company the amount that must be withheld under federal, state and local income and employment tax laws or  (ii) the Grantee and the Company have made satisfactory provision for the payment of such taxes.  The Company shall first withhold such taxes from the cash portion, if any, of the Award.  To the extent the cash portion of the Award is insufficient to cover the full withholding amount,  unless otherwise elected by the Grantee or not permitted by the Compensation and Development Committee (which may 

disallow share withholding at any time), the remaining tax withholding will be accomplished through the Company’s withholding of a number of shares having a Fair Market Value equal to the Company’s applicable tax withholding obligation.  

As an alternative to the Company retaining that number of shares (valued at their Fair Market Value) necessary to satisfy the Company’s applicable tax withholding obligations, the Grantee or the Grantee’s successor may elect to make a cash payment to the Company in an amount equal to the Company’s applicable tax withholding obligation.  If the Grantee desires to satisfy his or her remaining tax withholding liability through a cash payment to the Company, or to have shares withheld having a Fair Market Value in excess of the Company’s minimum state income tax withholding obligation (but in no event in excess of the state’s highest marginal tax rate), the Grantee must make a withholding election on the form provided by the Corporate Secretary of the Company and return it to the designated person set forth on the form no later than the date specified thereon (which shall in no event be more than thirty (30) days from the Grant Date of the Award).  Following satisfaction of all tax withholding liabilities, the Company will release or deliver, as applicable, the shares owed to the Grantee.

		
	c.
	The Company will, to the full extent permitted by law, have the discretion based on the particular facts and circumstances to require that the Grantee reimburse the Company for all or any portion of any awards if and to the extent the awards reflected the achievement of financial results that were subsequently the subject of a restatement, or the achievement of other objectives that were subsequently found to be inaccurately measured, and a lower award would have occurred based upon the restated financial results or inaccurately measured objectives.  The Company may, in its discretion, (i) seek repayment from the Grantee; (ii) reduce the amount that would otherwise be payable to the Grantee  under current or future awards; (iii) withhold future equity grants or salary increases; (iv) pursue other available legal remedies; or (v) any combination of these actions. The Company may take such actions against any Grantee, whether or not such Grantee engaged in any misconduct or was otherwise at fault with respect to such restatement or inaccurate measurement. The Company will, however, not seek reimbursement with respect to any awards paid more than three years prior to such restatement or the discovery of inaccurate measurements, as applicable.

		
	d.
	Except as otherwise specifically provided herein, the Award of Performance Shares is subject to and governed by the applicable terms and conditions of the Plan, which are incorporated herein by reference. 

		
	3.
	Amendment.  This Agreement may be amended only in the manner provided by the Company evidencing both parties’ agreement to the amendment.  This Agreement may also be amended, without prior notice to Grantee and without Grantee’s consent prior to any Change in Control by the Committee if the Committee in good faith determines the amendment does not materially adversely affect any of Grantee’s rights under this Agreement.

		
	4.
	Entire Agreement.  This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior agreements or understandings between the parties relating thereto. 

	
		
	GREAT PLAINS ENERGY INCORPORATED
	 

	 
	 

	By: _____________________________________
	________________________________________

	       Terry Bassham
	_______________________

	 
	Grantee

	 
	 

	 
	_____________________ _____, 2014

Appendix

2014 – 2016 Performance Criteria

	
							
	 
	Objective
	Weighting 
(Percent)
	Threshold
(50%)
	Target
(100%)
	Stretch
(150%)
	Superior
(200%)

	 
	 
	 
	 
	 
	 
	 

	1.
	Three-year (2014-2016)
Average FFO to Total Adjusted 
Debt1
	50%
	14.5%
	15.0%
	15.5%
	16.0%

	 
	 
	 
	 
	 
	 
	 

	2.
	Total Shareholder Return (TSR) versus EEI Index2
	50%
	See Below

_________________________

1 S&P calculation of FFO to total adjusted debt. This is a financial measure that is not calculated in accordance with generally accepted accounting principles (“GAAP”).
2 TSR is compared to an industry peer group of the Edison Electric Institute (EEI) index of electric companies during the three-year measurement period from 2014-2016. At the end of the three-year measurement period, the Company will assess its total shareholder return compared to the EEI index. Depending on how the Company ranks, the executive will receive a percentage of the performance share grants according to the following table:

	
		
	Percentile Rank
	Payout Amount

	 
	 

	75th and above
	200%

	60th to 74th
	150%

	40th to 59th
	100%

	25th to 39th
	50%

	24th and below
	0%

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