Document:

Exhibit 10.52

SECOND AMENDMENT

THIS SECOND AMENDMENT
(this “Amendment”), is dated March 30, 2007, and relates to (i) that
certain Receivables Funding and Administration Agreement, dated as of November
25, 2005 (as amended pursuant to that certain First Amendment dated as of
September 5, 2006 and as further amended, restated, supplemented or otherwise
modified from time to time, the “Funding Agreement”), among Vertis
Receivables II, LLC, a Delaware limited liability company (“Borrower”),
the financial institutions from time to time party thereto (each a “Lender”
and collectively, the “Lenders”), General Electric Capital Corporation,
a Delaware corporation, as administrative agent for the Lenders (the “Administrative
Agent”) and (ii) that certain Receivables Sale and Servicing Agreement,
dated as of November 25, 2005 (as amended, restated, supplemented or otherwise
modified from time to time, the “Sale Agreement” and together with the
Funding Agreement, the “Agreements” and each an “Agreement”)
among Borrower, Vertis, Inc., a Delaware corporation, as servicer (in such
capacity, the “Servicer”) and in its individual capacity (in such
capacity, “Parent”) and each of the Originators listed on the signature
pages hereto (collectively, the “Originators”), and is hereby made by
Borrower, the Administrative Agent, the Servicer, the Parent, the Originators
and the Lenders. Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to them in the Funding Agreement or the Sale
Agreement, as applicable.

W I T N E S S E T H:

WHEREAS, the
Administrative Agent, the Lenders and Borrower desire to amend the Funding
Agreement on the terms and conditions set forth herein; and

WHEREAS, Borrower,
Servicer, Parent and the Originators desire to amend the Sale Agreement on the
terms and conditions set forth herein;

NOW, THEREFORE, in
consideration of the foregoing premises, the parties hereto agree as follows:

1.             Amendment to Sale Agreement.  As of the “Effective Date” (as defined in Section
4 below), Annex Z to the Sale Agreement is hereby amended and restated in
its entirety as Attachment I attached hereto and made part hereof.

2.             Amendment to Funding Agreement.  As of the “Effective Date” (as defined in Section
4 below), Section 2.03(a) of the Funding Agreement is hereby amended to
delete the sixth sentence of such section and to replace such sentence with the
following sentences:

The
Administrative Agent shall review (x) the Borrowing Base Certificate delivered
in connection with each Borrowing Request and (y) such other information deemed
reasonably necessary or desirable by the Administrative Agent (including,
without limitation, the amount of any Collections received by the Borrower, the
Servicer or the Administrative Agent up to and including the date of such
requested Borrowing that are

 

not
reflected on the Borrowing Base Certificate delivered in connection with such
Borrowing Request (“Additional Collections”) and the application of such
Additional Collections in accordance with Section 2.08 hereof) to
confirm whether a Funding Excess exists or would arise after giving effect to
the Borrowing requested in the related Borrowing Request (including, without
limitation, any Funding Excess arising because Additional Collections have been
applied to reduce calculation of the Borrowing Base as of the date of such
requested Borrowing but such Additional Collections have not yet been applied
to reduce the Outstanding Principal Amount pursuant to Section 2.08
hereof as of the date of such requested Borrowing). For the avoidance of doubt
and without limiting the terms of the definition of “Funding Excess” set forth
herein, the Administrative Agent’s determination as to the existence of a
Funding Excess before or after giving effect to any Requested Borrowing  shall be final, binding and conclusive on all
parties to the Funding Agreement (absent manifest error).

3.             Representations and Warranties.

(a)           As of the Effective
Date, Borrower hereby represents and warrants to Administrative Agent and the
Lenders that (i) all of the representations and warranties of Borrower in the
Related Documents are true and correct in all material respects on and as of
such date as though made to each such Person on and as of such date (other than
representations and warranties which expressly speak as of a different date,
which representations shall be made only on such date), (ii) each of the
recitals accurately describes the transactions described therein in all
respects, and (iii) as of such date, no Incipient Termination Event, Termination
Event, Incipient Servicer Termination Event or Event of Servicer Termination
Event has occurred and is continuing.

(b)           As of the Effective
Date, each of the Transaction Parties hereby represents and warrants to
Borrower that (i) all of the representations and warranties of such Person in
the Related Documents are true and correct in all material respects on and as
of such date as though made to each such Person on and as of such date (other
than representations and warranties which expressly speak as of a different
date, which representations shall be made only on such date), (ii) each of the
recitals accurately describes the transactions described therein in all
respects, and (iii) as of such date, no Incipient Termination Event,
Termination Event, Incipient Servicer Termination Event or Event of Servicer
Termination Event has occurred and is continuing.

4.             Effective Date.  The “Effective Date” shall occur upon
the Administrative Agent’s receipt of each of the following:

(a)            counterparts of
this Amendment executed by each of the Persons identified on the signature
pages hereto; and

(b)           an amendment fee
from Borrower in an amount equal to 0.20% of the aggregate amount of all of the
Commitments, to be distributed by Administrative

 2
 

 

Agent pro rata
to the Lenders (which such amendment fee shall be fully earned and
non-refundable on the date paid).

5.             Reference to and Effect on the
Related Documents.

(a)           As applicable, on
and after the Effective Date, each reference in any Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import, and each reference
in the other Related Documents to such Agreement, shall mean and be a reference
to such Agreement as modified hereby.

(b)           Except as
specifically amended or consented to above, all of the terms of each Agreement
and all other Related Documents remain unchanged and in full force and effect.

(c)           The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of any party under any of the Related Documents, nor
constitute an amendment, other than as set forth herein, or waiver of any
provision of any of the Related Documents, nor obligate any such party to agree
to similar consents in the future.

(d)           This Amendment shall
constitute a Related Document.

6.             Costs and Expenses.  Borrower agrees to pay upon demand in
accordance with the terms of Section 12.04 of the Funding Agreement all
reasonable costs and expenses of the Administrative Agent in connection with
the preparation, negotiation, execution and delivery of this Amendment,
including, without limitation, the reasonable fees, expenses and disbursements
of Sidley Austin LLP, counsel for the Administrative Agent with respect to any
of the foregoing.

7.             Miscellaneous.  The headings herein are for convenience of
reference only and shall not alter or otherwise affect the meaning hereof.

8.             Counterparts.  This Amendment may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered by facsimile shall be an original,
but all of which shall together constitute one and the same instrument.

9.             GOVERNING LAW.  THIS AMENDMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES)
EXCEPT TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR PRIORITY OF
THE INTERESTS OF BORROWER OR THE ADMINISTRATIVE AGENT IN THE RECEIVABLES OR
REMEDIES HEREUNDER OR THEREUNDER, IN RESPECT THEREOF, ARE GOVERNED BY THE LAWS
OF A JURISDICTION OTHER THAN THE STATE OF

 3
 

 

NEW YORK, AND ANY APPLICABLE LAWS OF THE UNITED STATES
OF AMERICA.

*              *              *

 

 4

 

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

	
  

  	
  VERTIS RECEIVABLES II, LLC, as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  VERTIS, INC., as Servicer, Parent and as an
  Originator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT, LLC, as an Originator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT CHEMICALS, LLC, as an Originator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  ENTERON GROUP, LLC, as an Originator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  VERTIS MAILING, LLC, as an Originator

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Stephen
  E. Tremblay

  
	
   

  	
  Name:

  	
  Stephen E. Tremblay

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Susan
  Bassett

  
	
   

  	
  Name:

  	
  Susan Bassett

  
	
   

  	
  Title:

  	
  Duly Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as the Lender
  and Swing Line Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Susan
  Bassett

  
	
   

  	
  Name:

  	
  Susan Bassett

  
	
   

  	
  Title:

  	
  Duly Authorized Signatory

  
	
   

  	
   

  	
   

  

 

 

 

ATTACHMENT I TO SECOND AMENDMENT

AMENDED AND RESTATED ANNEX Z TO
SALE AGREEMENT

[ATTACHED]

 

ANNEX Z

FINANCIAL TEST

Minimum EBITDA. 
Holdings and its Subsidiaries on a consolidated basis shall have, (i) at
the end of each Fiscal Month ending during Fiscal Year 2007, EBITDA (as
calculated in accordance with the table set forth below) for the twelve
trailing Fiscal Months, of not less than $125,000,000, (ii) at the end of each
Fiscal Quarter ending during Fiscal Year 2008, EBITDA (as calculated in
accordance with the table set forth below) for the four Fiscal Quarter period
then ended of not less than $125,000,000 and (iii) at all other times, at the
end of each Fiscal Quarter, EBITDA (as calculated in accordance with the table
set forth below) for the four Fiscal Quarter period then ended of not less than
$160,000,000.  In the event that Holdings
and its Subsidiaries are not in compliance with the preceding sentence, THL and
Evercore shall have the option to make a common equity or, on terms and
conditions acceptable to Administrative Agent, preferred equity, contribution
to Holdings and the net proceeds of such equity contribution shall be treated
on a dollar for dollar basis as EBITDA for purposes of determining compliance
with the preceding sentence; provided, that, such an equity contribution shall, for
purposes of its treatment as EBITDA, (i) not be made more than once in any
fiscal year and (ii) not exceed $15,000,000 in amount (i.e.,
not more than $15,000,000 of such an equity contribution shall be treated as a
replacement for EBITDA in any year and such an equity contribution may only be
made once per year).

“EBITDA” shall be calculated in accordance with the following
table:

	
  Consolidated Net Income is
  defined as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Net income during the measuring period on a
  consolidated basis excluding:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  the income (or deficit) accrued prior to the date a
  Subsidiary was merged or consolidated into Holdings or any of Holdings’
  Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  the income (or deficit) from operations of any
  entity that is not a Subsidiary of Holdings but in which Holdings has an
  ownership interest, except to the extent any such income has actually been
  received by Holdings or any of its Subsidiaries in the form of cash dividends
  or distributions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any restoration to income of any contingency reserve
  greater than $1,000,000, except to the extent that provision for such reserve
  was made out of income accrued during such period

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any net gain (or loss) attributable to the write-up
  (or write-down) of any asset (other than accounts and inventory)

  	
   

  	
   

  

 

	
  

  	
  any net gain from the collection of the proceeds of
  life insurance policies

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any net gain (or loss) arising from the sale of any
  securities, or the extinguishment of any Indebtedness, of Holdings or any of
  their Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consolidated Net Income

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  EBITDA is defined as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consolidated Net Income (from above)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  Plus:

  	
  (in each case to the extent included in the calculation
  of Consolidated Net Income, but without duplication):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Interest Expense, net of interest income

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Non-cash interest expense and amortization of
  original issue discount

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any fees payable with respect to the Related
  Documents

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  gain/ (losses) from extraordinary items

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any gain (or loss) arising from the sale, exchange
  or other disposition of assets out of the ordinary course of business, other
  than accounts and inventory

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (i) any other non-cash gains/(losses) (other than
  non-cash losses relating to write-offs, write-downs or reserves with respect
  to accounts and inventory) and (ii) any management fees permitted to be paid
  to (A) THL and/or any THL Affiliates or (B) Evercore and/or any Evercore
  Affiliates, in accordance with Section 5.8 of the Credit Agreement (as in
  effect as of March 30, 2007 without giving effect to any subsequent
  amendments or modifications thereto) to the extent such management fees are
  accrued rather than paid

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  non-recurring gains/ (losses)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any provision for income taxes/ (net of income tax
  credits)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  amortization of deferred financing fees

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  restructuring charges (GAAP)

  	
   

  	
   

  

 

	
  

  	
  restructuring charges (non-GAAP)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  depreciation and amortization

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  any deduction as the result of any grant to any
  members of the management of Holdings or any of its Subsidiaries of any Stock

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  Required EBITDA

  	
   

  	
  $[160,000,000] $[125,000,000]

  

 

Capitalized
terms used in this Annex Z and not otherwise defined herein shall have
the respective meanings ascribed to them in Annex X.  In addition, when used herein, the following
defined terms shall have the definitions set forth below:

“Fiscal
Month” means any of the monthly accounting periods of Parent of each Fiscal
Year.

“Fiscal
Quarter” means any of the quarterly accounting periods of Parent, ending on
March 31, June 30, September 30 and December 31 of each year.

“Fiscal
Year” means any of the annual accounting periods of Parent ending on
December 31 of each year.

Rules of
Construction Concerning Financial Tests.  Unless
otherwise specifically provided therein, any accounting term used in any
Related Document shall have the meaning customarily given such term in
accordance with GAAP, and all financial computations thereunder shall be
computed in accordance with GAAP consistently applied.  That certain items or computations are
explicitly modified by the phrase “in accordance with GAAP” shall in no way be
construed to limit the foregoing.  If any
Accounting Changes occur and such changes result in a change in the calculation
of the financial tests, standards or terms used in any Related Document, then
the parties thereto agree to enter into negotiations in order to amend such
provisions so as to equitably reflect such Accounting Changes with the desired
result that the criteria for evaluating the financial condition of such Persons
and their Subsidiaries shall be the same after such Accounting Changes as if
such Accounting Changes had not been made. 
If the parties thereto agree upon the required amendments thereto, then
after appropriate amendments have been executed and the underlying Accounting
Change with respect thereto has been implemented, any reference to GAAP
contained therein shall, only to the extent of such Accounting Change, refer to
GAAP consistently applied after giving effect to the implementation of such
Accounting Change.  If such parties
cannot agree upon the required amendments within 30 days following the date of
implementation of any Accounting Change, then all financial statements
delivered and all calculations of financial tests and other standards and terms
in accordance with the Related Documents shall be prepared, delivered and made
without regard to the underlying Accounting Change.Exhibit
10.35

[EKAE Letterhead]

December 13, 2006

UBE Services

Attention: Ron Hansen, President

2868 North Ridge Road

Wichita, KS  67205-1039

RE:                            TERMINATION
OF MANAGEMENT AGREEMENT BETWEEN EAST KANSAS AGRI-ENERGY, LLC AND UBE SERVICES,
LLC (SUCCESSOR TO UNITED BIO ENERGY MANAGEMENT, LLC)

Dear Mr. Hansen:

This letter
agreement is sent to confirm our conversations of December 12, 2006 in which we
agreed upon the essential terms for the termination of that certain Management
Agreement dated as of November 12, 2004 (the “Management Agreement”) between
East Kansas Agri-Energy, LLC (“EKAE”) and UBE Services, LLC, successor
to United Bio Energy Management, LLC (“UBE Services”) ahead of its
scheduled termination date.

EKAE and UBE Services now agree to terminate the Management Agreement
on the following terms:

·                  Termination
of Management Agreement. 
Notwithstanding any other provision in the Management Agreement, the
Management Agreement shall terminate in its entirety as of December 31, 2006
(the “Termination Date”) and the provisions of the Management Agreement
will be of no further force and effect other than the provisions of Paragraph
14 (Proprietary Information) of the Management Agreement.  Accordingly, as of the Termination Date both
parties are released from all any and all further obligations under the
Management Agreement except for those certain provisions of Paragraph 14 of the
Management Agreement.

·                  Amounts
Due under Management Agreement.  Notwithstanding any provision contained herein to
the contrary, EKAE shall pay all Management Fees and Incentive Bonuses due to
UBE Services under Paragraphs 8 and 9 of the Management Agreement for services rendered to EKAE pursuant to the
Management Agreement through the Termination Date.

·                  Mutual
Release.  Except as specifically
provided herein, upon the Termination Date each party irrevocably releases the
other party and its affiliates and representatives, in full, from any and all
claims, losses, expenses, and damages, of any kind or nature, now known or
hereafter arising in contract, tort or otherwise, as to or under the Management
Agreement.

Hansen,
Page 2

March 29, 2007

·                  Participation in the UBE Plant Manager and Group
Buying Programs.  Commencing as of the Termination Date and
continuing for a term of one (1) year, the plant manager employed by EKAE shall
have to right to participate in the UBE Plant Manager Program and EKAE shall
have the right to participate in the UBE Group Buying Program.   In exchange for this right to participate in
the UBE Plant Manager and Group Buying Programs, EKAE shall pay $10,000
per month to UBE Services for twelve (12) months following the Termination
Date.  The first monthly installment
shall be due and payable on January 1, 2007 and each successive monthly
installment shall be due and payable on the same day of each month thereafter
during such twelve (12) month period. 
The terms of EKAE’s continued involvement in the UBE Plant Manager and Group Buying Programs after expiration of
the initial one (1) year term shall be subject to renegotiation and such
renegotiation shall occur during the ninety (90) days prior to the expiration
of the then current term.

·                  Definitions/Contract
Terms.  All capitalized terms used in
this Agreement which are not defined in this Agreement shall have the meaning
given to such terms in the Management Agreement.

·                  Scope of Agreement.  The
parties expressly acknowledge and agree that this Agreement shall not effect
those certain separate service agreements between EKAE and certain
affiliates of UBE Services (i.e., United Bio Energy Trading, LLC, United Bio
Energy Ingredients, LLC, and Provista Renewable Fuels Marketing, LLC, formerly
known as United Bio Energy Fuels, LLC).

·                  Miscellaneous.  This letter agreement is binding upon and
benefits the parties and their successors and assigns.  It represents the entire understanding and
agreement between the parties with respect to the subject matter hereof and
will not be modified except in a writing signed by both parties.  If any provision is invalid or unenforceable,
the remaining provisions will not be affected. 
No omission or delay by a party in enforcing its rights shall constitute
a waiver.  This letter agreement may be
executed in counterparts, and shall be jointly and severally enforceable
against each signatory upon execution.

If you agree that
this letter accurately sets forth the terms of the termination of the
Management Agreement, please countersign sign both enclosed originals and
return one executed original to me in the enclosed envelope.  You may retain the other original for your
files.  Thank you.

	
  

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ William R. Pracht

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  William R. Pracht

  
	
   

  	
   

  	
  Chairman, President and CEO

  
	
   

  	
   

  	
  East Kansas Agri-Energy, LLC

  

 

Hansen,
Page 2

March 29, 2007

 

AGREED TO
AND ACCEPTED:

UBE Services, LLC
(Successor to United Bio Energy Management, LLC)

 

/s/ UBE Services, LLC

By: /s/ illegible

Its: VP

Date: 1/3/07

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