Document:

Exhibit 4.1

 

 

 

TWELFTH
SUPPLEMENTAL INDENTURE

 

FROM

 

WISCONSIN
PUBLIC SERVICE CORPORATION

 

TO

 

U.S. BANK
NATIONAL ASSOCIATION

(SUCCESSOR TO FIRSTAR BANK, MILWAUKEE, N.A., NATIONAL ASSOCIATION)

 

TRUSTEE

 

 

 

Dated as of November 21, 2018

 

SUPPLEMENTAL
TO INDENTURE

Dated as of December 1, 1998

 

Senior Debt Securities

 

 

 

    	 

     

    

 

This TWELFTH SUPPLEMENTAL INDENTURE is made
as of the 21st day of November, 2018, by and between WISCONSIN PUBLIC SERVICE CORPORATION, a corporation duly organized and existing
under the laws of the State of Wisconsin (the “Company”), and U.S. BANK NATIONAL ASSOCIATION (successor to Firstar
Bank Milwaukee, N.A., National Association), a national banking association duly organized and existing under the laws of the United
States, as trustee (the “Trustee”).

 

RECITALS
OF THE COMPANY:

 

WITNESSETH: that

 

The Company has heretofore executed and delivered
its Indenture (hereinafter referred to as the “Indenture”), made as of December 1, 1998; and

 

Section 3.01 of the Indenture provides that
Securities may be issued from time to time in series pursuant to a supplemental indenture specifying the terms of each series of
Securities; and

 

The Company desires to establish a series
of Securities to be designated Senior Notes, 3.35% Series Due November 21, 2021 (the “Securities of the Series Due 2021”);
and

 

Section 10.01 of the Indenture provides that
the Company and the Trustee may enter into indentures supplemental thereto for the purposes, among others, of establishing the
form or terms of Securities of any series and adding to the covenants of the Company; and

 

The execution and delivery of this Twelfth
Supplemental Indenture (herein, this “Supplemental Indenture”) has been duly authorized by a Board Resolution;

 

NOW, THEREFORE, this Supplemental Indenture

 

WITNESSETH, that, in order to set forth the
terms and conditions upon which Securities of the Series Due 2021 are, and are to be, authenticated, issued and delivered, and
in consideration of the sum of one dollar duly paid to it by the Trustee at the execution of this Supplemental Indenture, the receipt
whereof is hereby acknowledged, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the
respective Holders from time to time of such Securities as follows:

 

    	1

     

    

 

Article
I

RELATION TO INDENTURE; DEFINITIONS

 

SECTION 1.1

 

This Supplemental Indenture constitutes an
integral part of the Indenture.

 

SECTION 1.2

 

For all purposes of this Supplemental Indenture:

 

(a) Capitalized
terms used but not otherwise defined herein shall have the respective meanings assigned to such terms in the Indenture;

 

(b) All
references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this
Supplemental Indenture; and

 

(c) The
terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder,” and “herewith”
refer to this Supplemental Indenture.

 

Article
II

THE SECURITIES

 

There is hereby established a series of Securities
pursuant to Section 3.01 of the Indenture as follows:

 

(a) The
title of the Securities of the series hereby established is “Senior Notes, 3.35% Series Due November 21, 2021.”

 

(b) The
aggregate principal amount of the Securities of the Series Due 2021 which may be authenticated and delivered under the Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of other Securities
of such series pursuant to Sections 2.05, 3.04, 3.05, 3.06, 10.06 or 12.07) shall initially be limited to Four Hundred Million
Dollars ($400,000,000), subject to the right of the Company to reopen the Securities of the Series Due 2021 for the issuance of
additional Securities of the Series Due 2021 on the terms and subject to the conditions specified below.

 

(c) The
Company shall have the right to reopen the Securities of the Series Due 2021 for the issuance of additional Securities of such
series (“Additional Securities of the Series Due 2021”). The issuance of any Additional Securities of the Series Due
2021 shall constitute a further issuance of, and will be consolidated with, the Securities of the Series Due 2021, so as to form
a single series. The Additional Securities of the Series Due 2021 shall have the same terms hereinafter recited, except for the
issue date, the public offering price and, if applicable, the initial interest payment date. Where appropriate, references to the
Securities of the Series Due 2021 in this Supplemental Indenture shall be deemed to include the Additional Securities of the Series
Due 2021.

 

    	2

     

    

 

(d) The
Securities of the Series Due 2021 are to be issued in permanent global form without coupons. The beneficial owners of interests
in such permanent Global Security or Securities may not exchange such interests for Securities of such series other than in the
manner provided in Section 2.05 of the Indenture. The Depositary for the Securities of the Series Due 2021 shall be The Depository
Trust Company.

 

(e) The
Stated Maturity of the Securities of the Series Due 2021 is November 21, 2021.

 

(f) The
Securities of the Series Due 2021 shall bear interest at the rate of 3.35% per annum, and such interest shall accrue from November
21, 2018 (or from the most recent Interest Payment Date to which interest on the Securities of the Series Due 2021 has been paid
or provided for). The Interest Payment Dates for the Securities of the Series Due 2021 shall be May 21 and November 21 in each
year commencing May 21, 2019, or if not a Business Day, the next succeeding Business Day (and without any interest or other payment
in respect of any such delay) and the Regular Record Date for the interest payable on any Interest Payment Date shall be the May
6 or November 6 (whether or not such day is a Business Day) immediately preceding such Interest Payment Date. Interest shall be
computed on the basis of a 360 day year consisting of twelve 30-day months.

 

(g) Principal
of and interest on the Securities of the Series Due 2021 shall be payable in U.S. Dollars at the Corporate Trust Office of the
Trustee in St. Paul, Minnesota.

 

(h) The
Securities of the Series Due 2021 are subject to redemption in whole at any time or in part from time to time at the option and
direction of the Company at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities of the
Series Due 2021 being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest
thereon (exclusive of interest accrued to the Redemption Date), discounted to the Redemption Date on a semi-annual basis (assuming
a 360 day year consisting of twelve 30-day months) at the Treasury Rate as hereinafter defined, plus 10 basis points, plus in each
case accrued and unpaid interest to, but not including, the Redemption Date.

 

Such Redemption Date shall be set forth in
an Officer’s Certificate delivered to the Trustee on or before the Redemption Date and upon which the Trustee may conclusively
rely.

 

For purposes of this paragraph (h):

 

“Treasury Rate” means, with respect
to any Redemption Date, the rate per year equal to the semiannual equivalent yield to maturity or interpolated (on a day count
basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date; provided that, if the Independent Investment Banker
shall determine that there is no such Comparable Treasury Issue, such rate per year shall be equal to the estimated semiannual
equivalent yield to maturity that a United States Treasury security having a maturity comparable to the remaining term of the Securities
of the Series Due 2021 to be redeemed would bear, if such security were available, such estimate to be made by the Reference Treasury
Dealers on the basis of interpolation, extrapolation and other accepted financial practices, taking into account (a) the yields
to maturity of United States Treasury securities of other maturities, (b) yields to maturity of other U.S. dollar denominated debt
securities having a maturity comparable to the remaining term of the Securities of the Series Due 2021 to be redeemed and (c) applicable
interest rate spreads between United States Treasury securities and such other debt securities, all as of 5:00 p.m., New York City
time, on the third Business Day preceding such Redemption Date.

 

    	3

     

    

 

“Comparable Treasury Issue” means
the United States Treasury security or securities selected by the Independent Investment Banker as having an actual or interpolated
maturity comparable to the remaining term of the Securities of the Series Due 2021 being redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a
comparable maturity to the remaining term of such Securities of the Series Due 2021.

 

“Independent Investment Banker”
means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company.

 

“Comparable Treasury Price” means,
with respect to any Redemption Date, (a) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding
such redemption date.

 

“Reference Treasury Dealer” means
each of Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and their respective successors, one primary U.S. government securities
dealer in the City of New York, New York (a “Primary Treasury Dealer”) selected by MUFG Securities Americas Inc. and
three other Primary Treasury Dealers selected by the Company. If any Reference Treasury Dealer shall cease to be a Primary Treasury
Dealer, the Company will select another Primary Treasury Dealer which will be substituted for that dealer.

 

(i) The
Securities of the Series Due 2021 shall not be subject to any sinking fund and shall not be redeemable at the option of the Holders
thereof.

 

(j) The
Securities of the Series Due 2021 shall initially be issued in whole in the form of one or more Global Securities. If individual
securities of the Series Due 2021 are issued under the conditions specified in Section 2.05 of the Indenture, individual certificates
will be issued in denominations of $1,000 or any integral multiple thereof.

 

Such Securities of the Series Due 2021 and
Additional Securities of the Series Due 2021, if any, shall be initially authenticated and delivered from time to time upon delivery
to the Trustee of the documents required by Section 3.01 of the Indenture and the form of Securities for the Securities of the
Series Due 2021 and Additional Securities of the Series Due 2021, if any, substantially in the form of Security attached hereto
as Appendix I, which is incorporated herein by reference.

 

    	4

     

    

 

Article
III

MISCELLANEOUS

 

SECTION 3.1

 

The Trustee has accepted the amendment of
the Indenture effected by this Supplemental Indenture and agrees to execute the trust created by the Indenture as hereby amended,
but only upon the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the
liabilities and responsibilities of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be
responsible in any manner whatsoever for or with respect of any of the recitals or statements contained herein, all of which recitals
or statements are made solely by the Company, or for or with respect to (a) the validity or sufficiency of this Supplemental Indenture
or any of the terms or provisions hereof, (b) the proper authorization hereof by the Company by corporate action or otherwise,
and (c) the due execution hereof by the Company.

 

SECTION 3.2

 

This Supplemental Indenture shall be construed
in connection with and as a part of the Indenture.

 

SECTION 3.3

 

(a) If
any provision of this Supplemental Indenture conflicts with another provision of the Indenture required to be included in indentures
qualified under the Trust Indenture Act of 1939, as amended (as enacted prior to the date of this Supplemental Indenture), by any
of the provisions of Sections 310 to 317, inclusive, of said act, such required provision shall control.

 

(b) In
case any one or more of the provisions contained in this Supplemental Indenture or in the Securities issued hereunder should be
invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected, impaired, prejudiced or disturbed thereby.

 

SECTION 3.4

 

Whenever in this Supplemental Indenture either
of the parties hereto is named or referred to, such name or reference shall be deemed to include the successors or assigns of such
party, and all the covenants and agreements contained in this Supplemental Indenture by or on behalf of the Company or by or on
behalf of the Trustee shall bind and inure to the benefit of the respective successors and assigns of such parties, whether so
expressed or not.

 

    	5

     

    

 

SECTION 3.5

 

(a) This
Supplemental Indenture may be simultaneously executed in several counterparts, and all such counterparts executed and delivered,
each as an original, shall constitute but one and the same instrument.

 

(b) The
descriptive headings of the several Articles of this Supplemental Indenture were formulated, used and inserted in this Supplemental
Indenture for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

    	6

     

    

 

IN WITNESS WHEREOF, WISCONSIN PUBLIC SERVICE
CORPORATION has caused this Supplemental Indenture to be executed by its Chairman, Chief Executive Officer, President, Vice Chairman
or a Vice President, or any other officer selected by the Board of Directors, and its corporate seal to be hereunto affixed, duly
attested by its Secretary or an Assistant Secretary, and U.S. BANK NATIONAL ASSOCIATION, as Trustee as aforesaid, has caused this
Supplemental Indenture to be executed by one of its authorized signatories, as of November 21, 2018.

 

	 	WISCONSIN PUBLIC SERVICE
	 	CORPORATION
	 	 	 
	[SEAL]	 	 
	 	 	 
	 	By:	/s/ Scott J. Lauber
	 	 	Scott J. Lauber
	 	 	Executive Vice President, Chief Financial 
	 	 	Officer and Treasurer

 

	ATTEST:	 
	 	 
	By:	/s/ Keith H. Ecke	 
	 	Keith H. Ecke	 
	 	Assistant Corporate Secretary	 

 

	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ Peter M. Brennan
	 	 	Peter M. Brennan
	 	 	Vice President

 

[ Signature Page to Closing Document No. 4(f) - Twelfth Supplemental Indenture ]  

 

    	7

     

    

 

APPENDIX I

 

$___________

 

CUSIP: No. 976843 BL5

 

THIS SECURITY IS A GLOBAL SECURITY REGISTERED
IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY
TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.*

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (55 WATER STREET, NEW YORK, NEW YORK), TO THE
TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO
CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.*

 

 

* To be included so long as Security
is a Global Security.

 

    	8

     

    

 

WISCONSIN PUBLIC SERVICE CORPORATION

Senior Note, 3.35% Series Due November 21, 2021

 

WISCONSIN PUBLIC SERVICE CORPORATION, a corporation
duly organized and existing under the laws of Wisconsin (herein called the “Company,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to ____________________, or
registered assigns, the principal sum of ____________________ on November 21, 2021 and to pay interest thereon from November 21,
2018 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on May 21
and November 21 in each year, commencing May 21, 2019, or if not a Business Day, the next succeeding Business Day (and without
any interest or other payment in respect of any such delay) at the rate of 3.35% per annum, until the principal hereof is paid
or made available for payment and (to the extent that the payment of such interest shall be legally enforceable) at the rate of
3.35% per annum on any overdue principal and premium and on any overdue installment of interest. Interest shall be computed on
the basis of a 360 day year consisting of twelve 30-day months. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
the close of business on the May 6 or November 6 (whether or not such day is a Business Day) immediately preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture.

 

Payment of the principal of (and premium,
if any) and any such interest on this Security will be made at the office or agency of the Trustee maintained for that purpose,
in St. Paul, Minnesota, in Dollars, provided, however, that at the option of the Company payment of interest may be made by wire
transfer of immediately available funds into the account specified by the Depositary so long as this note is in the form of Global
Security and otherwise by check mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register.

 

Reference is hereby made to the further provisions
of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

 

Unless the certificate of authentication hereon
has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

 

    	9

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed under its corporate seal.

 

	 	WISCONSIN PUBLIC SERVICE CORPORATION
	 	 
	 	By	             

 

	Attest:	 	 
	 	 	 
	 	 	[SEAL]

 

    	10

     

    

 

Form of Trustee’s Certificate
of Authentication.

 

Dated: November 21, 2018

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

	 	 
	 	As Trustee

 

	 	By	 
	 	 	Authorized Signatory

 

Form of Reverse of Security.

 

This Security is one of a duly authorized
issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of December 1, 1998 (herein called the “Indenture”), between the Company and a predecessor
of U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities
and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, limited in aggregate principal amount to Four Hundred Million Dollars ($400,000,000), subject to
the right of the Company to reopen the Securities of this series for the issuance of additional Securities of this series on the
terms and subject to the conditions specified in the Twelfth Supplemental Indenture to the Indenture.

 

The Securities of this series are subject
to redemption upon not less than 30 nor more than 45 days’ notice by first class mail, in whole at any time or in part from
time to time at the option and direction of the Company at a Redemption Price equal to the greater of (i) 100% of the principal
amount of the Securities of this series being redeemed or (ii) the sum of the present values of the remaining scheduled payments
of principal and interest thereon (exclusive of interest accrued to the Redemption Date), discounted to the Redemption Date on
a semi-annual basis (assuming a 360 day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the Twelfth
Supplemental Indenture to the Indenture), plus 10 basis points, plus in each case accrued and unpaid interest to, but not including,
the Redemption Date.

 

In the event of redemption of this Security
in part only, a new Security or Securities of this series for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

 

    	11

     

    

 

If any Event of Default with respect to Securities
of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal and overdue interest (in each case to the extent that the payment of such interest
shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and interest,
if any, on the Securities of this series shall terminate.

 

This Security is subject to Defeasance as
described in the Indenture.

 

The Indenture may be modified by the Company
and the Trustee without consent of any Holder with respect to certain matters as described in the Indenture. In addition, the Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive certain
past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall bind
such Holder and all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of (and premium, if any) and interest on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

 

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of
this Security for registration of transfer at the office or agency of the Company in any place where the principal of (and premium,
if any) and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series, of authorized denominations and for the same Stated Maturity and aggregate
principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable
only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture
and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

    	12

     

    

 

Prior to due presentment of this Security
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture imposes certain limitations
on the ability of the Company to, among other things, merge or consolidate with any other Person or sell, assign, transfer or lease
all or substantially all of its properties or assets. All such covenants and limitations are subject to a number of important qualifications
and exceptions. The Company must report periodically to the Trustee on compliance with the covenants in the Indenture.

 

A director, officer, employee or shareholder,
as such, of the Company shall not have any liability for any obligations of the Company under this Security or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder, by accepting a Security,
waives and releases all such liability. The waiver and release are part of the consideration for the issuance of this Security.

 

Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures (“CUSIP”), the Company has caused CUSIP numbers to be printed
on the Securities of this series as a convenience to the Holders of the Securities of this series. No representation is made as
to the correctness or accuracy of such numbers as printed on the Securities of this series and reliance may be placed only on the
other identification numbers printed hereon.

 

All capitalized terms used in this Security
without definition which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

    	13

     

    

 

ASSIGNMENT
FORM

 

To assign this Security, fill in the form
below: (I) or (we) assign and transfer this Security to

 

	 
	(Insert assignee’s social security or tax I.D. number)
	 
	 
	 
	 
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint ___________________________________________________________________
agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

 

	Dated:	 	 	Your Signature:_________________________________________________________
	 	 	(Sign exactly as your
	 	 	name appears on the other
	 	 	side of this Security)

 

	Signature Guaranty:	 
	 	[Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements will include membership or participation in STAMP or such other signature guarantee program as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.]

 

Social Security Number or Taxpayer Identification

Number:_______________________________________

 

 

    	14Exhibit 10.1

 

AMENDMENT
No. 10 TO

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO.
10 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of November 21, 2018, among
ORCHIDS PAPER PRODUCTS COMPANY, a Delaware corporation (“Borrower”), the Guarantors party hereto, the lenders
party hereto (“Lenders”) and U.S. BANK NATIONAL ASSOCIATION, as a Lender and as LC Issuer, Swing Line Lender
and Administrative Agent for the Lenders (in such capacity, “Administrative Agent”).

 

BACKGROUND

 

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

 

B.       Borrower
has requested that Administrative Agent and Lenders increase the Revolving Credit Commitment and amend certain provisions of the
Credit Agreement as set forth herein.

 

C.       Administrative
Agent and Lenders are willing to increase the Revolving Credit Commitment and amend certain provisions of the Credit Agreement
upon the terms and conditions set forth below.

 

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

 

AGREEMENT

 

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

 

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

 

(a)              
Article I of the Credit Agreement is hereby amended to delete the definition of Eligible Assignee and insert in substitution
therefor the following:

 

“Eligible
Assignee” means any Person except a natural Person, the Borrower, any of the Borrower’s Affiliates or Subsidiaries
or any Defaulting Lender or any of its Subsidiaries.

 

(b)              
Article I of the Credit Agreement is hereby amended to add the following defined term:

 

     

     

    

 

“Tenth
Amendment” shall mean Amendment No. 10 to Second Amended and Restated Credit Agreement dated as of November 21, 2018
among Borrower, Guarantors, Administrative Agent and Lenders.”

 

(c)              
Section 6.1(j) of the Credit Agreement is hereby amended to provide that the Cash-Flow Forecast for the period starting
the week ending November 9, 2018 to and including December 14, 2018, tendered by Borrower to and accepted by Administrative Agent
prior to the Effective Date shall replace the Cash Flow Forecast in existence on the date of this Agreement. On or before the third
Business Day of each week, commencing November 14, 2018, Borrower shall provide to Administrative Agent (A) a line-by-line
reconciliation of (1) the amounts of budgeted expenditures and receipts for the immediately preceding week as set forth in the
Cash-Flow Forecast most recently delivered to and approved by Administrative Agent for such week and (2) the actual expenditures
and receipts for such week (together with an explanation, in reasonable detail, of any material differences between the budgeted
and actual amounts) and (B) a certification by the CSO, that such person has no reason to believe that such reconciliation
is incorrect or misleading in any material respect, and on or before the second Business Day of each week commencing November 13,
2018, Borrower shall provide to Administrative Agent, a report on the prior weekly sales by customer, together with a comparison
to budgeted sales for such period and a certification by the CEO or CSO that such person has no reason to believe that such reconciliation
is incorrect or misleading in any material respect.

 

(d)              
Notwithstanding anything contained in the Credit Agreement to the contrary, (i) payments of principal, interest and the
Commitment Fee due and payable on the Term Loans and Draw Loans and payment of interest on the Revolving Loans otherwise due and
payable on October 31, 2018, November 1, 2018 and December 1, 2018 or at the end of the applicable Interest Period if not falling
on such dates, shall instead be due and payable on the earlier of the occurrence of an Event of Default or December 31, 2018, (ii)
Borrower shall not be entitled to request and Lenders shall have no obligation to make Revolving Loans from and after the Effective
Date of this Agreement in excess of the lesser of $7,250,000 (“Cap Amount”) or the amount of Draws on the Revolver
set forth in the Cash-Flow Forecast for such period, (iii) the actual ending Revolving Loan balance for each week shall not exceed
the projected amount of the ending Revolving Loan balance for such week set forth in the Cash-Flow Forecast, and (iv) Borrower
shall use the proceeds of such Revolving Loans solely for the Borrower’s operating and other expenses set forth in the Cash-Flow
Forecast.

 

(e)              
Notwithstanding anything contained in the Credit Agreement to the contrary, Borrower agrees to, by not later than December
14, 2018, either provide Administrative Agent with a signed purchase agreement in form and content acceptable to Administrative
Agent for the purchase of the equity or assets of Borrower in an amount sufficient to repay the outstanding Obligations in full
or a fully executed firm binding commitment from an institutional lender, in form and substance acceptable to Administrative Agent,
for replacement financing in an amount sufficient to repay all of Borrower’s Obligations to Administrative Agent and Lenders
in full. By not later than December 31, 2018, Borrower shall have closed on the sale of its equity or assets or refinancing and
repaid the Obligations in full.

 

    	 	 -2-	 

     

    

 

(f)               
To the extent Borrower has cash on deposit in its domestic operating accounts (other than the account ending in 9314) in
excess of (i) $2,500,000 as measured as of the end of any given week ending prior to December 14, 2018 and (ii) $1,500,000 as of
the end of any given week ending on or after December 14, 2018, Borrower shall promptly pay such excess to Administrative Agent
for application to the Obligations under the Revolving Loans. Such excess payments shall increase the maximum total amount of permitted
Draws on the Revolver under Section 2(c)(ii) hereof; provided, that for the avoidance of doubt, in no event shall the aggregate
amount of Revolving Loans after the Effective Date of this Agreement exceed the Cap Amount.

 

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

 

“(f) [Reserved].

 

(g)The Revolving
Commitment is increased by $5,900,000 and the Revolving Commitment Column to Schedule 1 to the Credit Agreement is hereby amended
to read as follows:

 

	Lender	Revolving Commitment
	 	 
	U.S. Bank National Association	$21,282,516.67
	 	 
	JPMorgan Chase Bank, N.A.	$16,072,733.94
	 	 
	SunTrust Bank	$10,668,969.96
	 	 
	First Tennessee Bank	$3,879,625.43
	 	 
	Total Commitments	$51,903,846.00

 

(h)Borrower
covenants and agrees with Administrative Agent and Lenders, to endorse and deposit with Administrative Agent, the check in the
approximate amount of $2,200,000 to be received by Borrower from FM Global related to an insurance damage claim by Borrower by
not later than November 26, 2018. Such proceeds shall be applied to the outstanding Revolving Loans, but shall not increase the
Cap Amount.

 

(i)Section
10.12 of the Credit Agreement is hereby amended to delete the following sentence where it appears therein:

 

“Any successor
Administrative Agent shall be a commercial bank having capital and retained earnings of at least $100,000,000.”

 

    	 	 -3-	 

     

    

 

(j)Notwithstanding
anything contained in Section 12.3 to the contrary, the Borrower’s consent shall not be required for any assignment by a
Lender to be effective.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	 -4-	 

     

    

 

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

 

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

 

4.5             
Payment of Fees and Attorney Costs. Borrower shall have paid to Administrative Agent all reasonable out-of-pocket
costs and expenses of Administrative Agent (including legal fees, auditor fees, and consultant fees) in connection with the negotiation,
documentation and closing of this Agreement.

 

4.6             
Investment Banker. Borrower shall have retained Houlihan Lokey as its replacement Investment Banker to assist Borrower
in the sale of the equity or assets of Borrower on terms reasonably acceptable to Administrative Agent

 

4.7             
CSO Contract. Borrower shall have entered into a revised contract with its CSO on terms reasonably acceptable to
Administrative Agent.

 

Section 5.               
Fees. In consideration for Administrative Agent and Lenders entering into this Agreement, Borrower agrees to pay
to Administrative Agent, (i) for its own benefit, a fee in the amount of $25,000, and (ii) the pro rata benefit of Lenders executing
this Agreement, an amendment fee in the amount of $250,000, which fees shall be non-refundable and fully earned on the Effective
Date of this Agreement, and shall be due and payable, along with the Amendment Fee (as defined in the Eighth Amendment) and Amendment
Commitment Fee (as defined in the Ninth Amendment) on the earliest of (i) December 31, 2018, (ii) occurrence of an Event of Default,
or (iii) sale of all or substantially all of Borrower’s Assets or equity interests or refinancing of the Obligations.

 

Section 6.               
Miscellaneous.

 

6.1             
Effect of Agreement. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of
any right, power or remedy of Administrative Agent or Lenders under the Credit Agreement or any other Loan Document, or constitute
a waiver of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein, and Borrower
and each Guarantor hereby fully confirms, affirms and ratifies each Loan Document to which it is a party. Except as specifically
modified hereby, the Credit Agreement and the other Loan Documents remain in full force and effect.

 

6.2             
Counterparts. This Agreement may be executed in any number of counterparts and by the different parties on separate
counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument. Delivery of the executed counterpart of this Agreement by telecopy or electronic mail shall be
as effective as delivery of a manually executed counterpart to this Agreement.

 

    	 	 -5-	 

     

    

 

6.3             
Costs and Expenses. Borrower shall pay all invoices of Administrative Agent’s auditors, financial consultants
and any legal counsel of Agent within five days of written request.

 

6.4             
Severability. The illegality or unenforceability of any provision of this Agreement or any instrument or agreement
required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement
or any instrument or agreement required hereunder.

 

6.5             
Captions. Section captions used in this Agreement are for convenience only, and shall not affect the construction
of this Agreement.

 

6.6             
Entire Agreement. This Agreement embodies the entire agreement and understanding among the parties hereto and supersedes
all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof.

 

6.7             
References. Any reference to the Credit Agreement contained in any notice, request, certificate, or other document
executed concurrently with or after the execution and delivery of this Agreement shall be deemed to include this Agreement unless
the context shall otherwise require. Reference in any of this Agreement, the Credit Agreement or any other Loan Document to the
Credit Agreement shall be a reference to the Credit Agreement as amended hereby and as further amended, modified, restated, supplemented
or extended from time to time.

 

    	 	 -6-	 

     

    

 

6.8             
Waiver of Claims and Defenses. By execution of this Agreement, Borrower and each Guarantor acknowledges and confirms
that it does not have any offsets, defenses or claims arising out of or relating to this Agreement, the Credit Agreement or the
other Loan Documents against Administrative Agent, any Lender, or any of their subsidiaries, affiliates, officers, directors, employees,
agents, attorneys, predecessors, successors or assigns whether asserted or unasserted. The Borrower and Guarantors, for and on
behalf of themselves and their legal representatives, successors and assigns, do waive, release, relinquish and forever discharge
the Administrative Agent and each Lender, its parents, subsidiaries, and affiliates, its and their respective past, present and
future directors, officers, managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs,
successors and assigns (collectively, the “Released Parties”), of and from any and all manner of action or causes
of action, suits, claims, demands, judgments, damages, levies and executions of whatsoever kind, nature or description arising
on or before the date hereof, including, without limitation, any claims, losses, costs or damages, including compensatory and punitive
damages, in each case whether known or unknown, asserted or unasserted, liquidated or unliquidated, fixed or contingent, direct
or indirect, which the Borrower or the Guarantors, or their legal representatives, successors or assigns, ever had or now have
or may claim to have against any of the Released Parties, with respect to any matter whatsoever, including, without limitation,
the Loan Documents, the administration of the Loan Documents, the negotiations relating to this Agreement and the other Loan Documents
executed in connection with this Agreement and any other instruments and agreements executed by the Borrower or any Guarantor in
connection with the Loan Documents or this Agreement, arising on or before the date hereof (collectively, “Claims”). 
The Borrower and each Guarantor acknowledges that they are aware that they may discover facts different from or in addition to
those they now know or believe to be true with respect to the Claims, and agree that the release contained in this Agreement is
and will remain in effect in all respects as a complete and general release as to all matters released in this Agreement, notwithstanding
any such different or additional facts.  The Borrower and each Guarantor agrees not to sue any Released Party or in any way
assist any other person or entity in suing a Released Party with respect to any claim released in this Section. Borrower and each
Guarantor acknowledges and agrees that Administrative Agent and the Lenders have fully and timely performed all of their respective
obligations and duties in compliance with the Loan Documents and applicable law, and has acted reasonably, in good faith, and appropriately
under the circumstances.

 

6.9             
Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OKLAHOMA
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

[signature page follows]

 

    	 	 -7-	 

     

    

 

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

 

 

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

 

     

     

    

 

	 	 	 	 
	 	ADMINISTRATIVE AGENT:
	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender, LC Issuer, Swing Line Lender and Administrative Agent
	 	 	 	 
	 	By:	/s/ Mike Warren	 
	 	Name:	Mike Warren	 
	 	Title:	Sr. V.P.	 
	 	 	 	 
	 	 	 	 
	 	LENDERS:	 
	 	 	 	 
	 	 JPMORGAN CHASE BANK, N.A., as a Lender
	 	 	 	 
	 	By:	/s/ Kevin Kemp	 
	 	Name:	Kevin Kemp	 
	 	Title:	VP	 
	 	 	 	 
	 	 	 	 
	 	SUNTRUST BANK, as a Lender	 
	 	 	 	 
	 	By:	/s/ Samuel M. Ballesteros	 
	 	Name:	Samuel M. Ballesteros	 
	 	Title:	Senior Vice President	 
	 	 	 	 
	 	 	 	 
	 	FIRST TENNESSEE BANK, as a Lender
	 	 	 	 
	 	By:	/s/ Jim Hennigan	 
	 	Name:	Jim Hennigan	 
	 	Title:	SVP

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