Document:

Exhibit
10.1

 

EXECUTION
VERSION

 

AMENDMENT NO. 2 TO CREDIT
AGREEMENT

 

This Amendment No. 2 to Credit Agreement, dated as of
September 15, 2004 (this “Amendment”), is entered into by and among Blue Ridge
Paper Products Inc., a Delaware corporation (“Borrower”), as Borrower; Blue
Ridge Holding Corp., a Delaware corporation (“Holdings”), as a Credit Party;
BRPP, LLC, a North Carolina limited liability company (the “IP Subsidiary”), as
a Credit Party; and General Electric Capital Corporation, as a Lender and as
Agent for Lenders (in such capacity, “Agent”).

 

RECITALS

 

A.            Borrower,
Holdings, the IP Subsidiary, Agent and Lender are parties to that certain
Credit Agreement, dated as of December 17, 2003 (as amended by Amendment No. 1
thereto, dated as of February 17, 2004, and as from time to time hereafter
further amended, restated, supplemented or otherwise modified and in effect,
the “Credit Agreement”), pursuant to which Lender has made and will hereafter
make loans and advances and other extensions of credit to Borrower.

 

B.            Borrower,
Agent and Lender are desirous of amending the Credit Agreement as and to the
extent set forth herein and pursuant to, and subject to, the terms and
conditions set forth in this Amendment.

 

C.            This
Amendment shall constitute a Loan Document and these Recitals shall be
construed as part of this Amendment. 
Capitalized terms used herein without definition are so used as defined
in the Credit Agreement and Annex A thereto.

 

NOW, THEREFORE, in consideration of the premises and
the mutual covenants hereinafter contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.             Amendments to Credit Agreement.

 

1.1.          The aggregate Commitments and
Revolving Loan Commitments under the Credit Agreement are hereby increased from
$45,000,000 to $50,000,000.  Annex J to
the Credit Agreement is hereby amended and restated in its entirety as set
forth on the form of Annex J attached hereto.

 

1.2.          Paragraph (b) of Annex G (Financial
Covenants) to the Credit Agreement is amended and restated in its entirety as
follows:

 

“(b)         Minimum
Fixed Charge Coverage Ratio.  If at
any time other than during the period beginning September 15, 2004 and ending
January 15, 2005, Borrowing Availability falls below $15,000,000, or if at any
time during the period beginning September 15, 2004 and ending January 15,
2005, Borrowing Availability falls below $10,000,000, then, for the most
recently ended Fiscal Quarter and for each Fiscal Quarter

 

 

thereafter, Borrower and its Subsidiaries shall have
on a consolidated basis at the end of each such Fiscal Quarter, a Fixed Charge
Coverage Ratio for the 12-month period then ended of not less than 1.10 to
1.00.”

 

2.             Representations
and Warranties.  Borrower and the IP
Subsidiary jointly and severally represent and warrant to Agent and Lender that
the execution, delivery and performance by Borrower and the IP Subsidiary of
this Amendment (a) have been duly authorized by all necessary action on the
part of Borrower and the IP Subsidiary, and (b) do not and will not conflict
with, result in the breach or termination of, constitute a default under, or
accelerate or permit the acceleration of any performance required by, any
indenture (including, without limitation, the Senior Secured Notes Indenture),
mortgage, deed of trust, lease, agreement or other instrument to which Borrower
or the IP Subsidiary is a party.

 

3.             Conditions
to Effectiveness.  The effectiveness
of this Amendment is expressly conditioned upon the satisfaction of each of the
following conditions precedent in a manner acceptable to Agent:

 

3.1.          Agent’s receipt of counterparts of
this Amendment, duly executed by Borrower, Holdings, the IP Subsidiary, Agent
and Lender.

 

3.2.          No Default or Event of Default shall
have occurred and be continuing or would result from the effectiveness of this
Amendment.

 

3.3.          The representations and warranties
contained in Section 2 of this Amendment shall be true, correct and complete.

 

3.4.          Borrower shall have paid an amendment
fee to Agent and Lender in the amount of $50,000.

 

3.5.          Borrower shall have delivered to Agent
copies of resolutions of Borrower’s board of directors approving this
Amendment, certified by an officer of Borrower as being in full force and
effect as of the date hereof without any amendments or modifications thereto.

 

4.             Reference to and Effect Upon the
Credit Agreement and other Loan Documents.

 

4.1.          The Credit Agreement, the Notes and
each other Loan Document shall remain in full force and effect and each is
hereby ratified and confirmed by Borrower, Holdings and the IP Subsidiary.  Without limiting the foregoing, the Liens
granted pursuant to the Collateral Documents shall continue in full force and
effect and the guaranties of Holdings and the IP Subsidiary shall continue in
full force and effect.

 

4.2.          Each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words
of similar import shall mean and be a reference to the Credit Agreement as
amended hereby, and each reference in any other Loan Document to the Credit
Agreement or any word or words of similar import shall be and mean a reference
to the Credit Agreement as amended hereby.

 

2

 

5.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed shall be deemed an original but
all such counterparts shall constitute one and the same instrument.  A counterpart signature page delivered by fax
transmission shall be as effective as delivery of an originally executed
counterpart.

 

6.             Costs
and Expenses.  As provided in Section
11.3 of the Credit Agreement, Borrower shall pay the fees, costs and expenses
incurred by Agent in connection with the preparation, execution and delivery of
this Amendment (including, without limitation, reasonable attorneys’ fees).

 

7.             GOVERNING
LAW.  THIS AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (AS
OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF THE STATE OF NEW YORK.

 

8.             Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose.

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

IN WITNESS WHEREOF, this Amendment has been duly
executed as of the date first written above.

 

 

	
   

  	
  BLUE RIDGE PAPER PRODUCTS INC.,
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BLUE RIDGE HOLDING CORP.,
  as a Credit Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BRPP, LLC, as
  a Credit Party

  
	
   

  	
  By:

  	
  Blue Ridge Paper
  Products Inc., sole Member and

  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL
  CORPORATION,

  
	
   

  	
  as Agent and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title: Duly Authorized
  Signatory

  
						

 

 

AMENDMENT
NO. 2 TO BLUE RIDGE CREDIT AGREEMENTPrepared and filed by St Ives Burrups

Exhibit 10.1

	STATE OF TEXAS	:
	COUNTY
OF HARRIS	:

 EMPLOYMENT AGREEMENT

     THIS
    AGREEMENT, made and entered into effective the 1st day of September, 2004
    (the “Effective Date”), by and between BLACK WARRIOR WIRELINE
    CORP., a Delaware corporation (hereinafter referred to as the “Employer”),
    and RON WHITTER (hereinafter referred to as the “Employee”), as follows:

WITNESSETH:

     WHEREAS, Employer and Employee desire to desire to reduce to writing and
 formalize the basis on which Employee will continue to be employed by Employer;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, faithfully to be kept by the parties hereto, it is agreed as follows:

     1.      Term.  The Employer will employ the Employee, and the Employee agrees to remain in the employ of the Employer, for a period of three (3) years commencing on the Effective Date.

     2.      Duties.  Employee shall serve as the Chief Financial Officer of Employer, working in an office to be established, at Employer’s expense, by Employer in the Houston, Texas area.  Employee shall work at the direction and control of the president and officers of Employer.  Employee shall devote the whole of his time during business hours, and at any other time when he is reasonably needed, for the benefit of the Employer.  The Employee shall use his best efforts to promote the interest and welfare of the Employer at all times.  Any outside employment, consulting or any other active commercial business activity of any kind is strictly forbidden without written permission of
an Officer of the Company and shall be grounds for immediate termination.  Employee hereby accepts the employment on the terms and conditions as hereinafter set forth.

-5-

     3.      Compensation.  As compensation for his services, the Employee shall be paid a base salary of$135,000 per year, and, in addition, a one-time signing bonus of $25,000.  On each anniversary date of this Agreement,
Employee’s salary shall be reviewed for possible adjustment in line with the policies and practices of the managers and officers of Black Warrior Wireline Corp. Employee shall also receive a monthly car allowance of $750.

     4.      Non-Competition.  The Employee agrees that for and during the duration of his employment he will not directly or indirectly become employed by or associated with, in any capacity, any other person, firm or corporation which operates a wireline or directional drilling business in the general business area of the Employer.  It is agreed by the parties hereto that, in the event of any breach of the non-competition provisions herein, legal remedies available to the Employer would be inadequate.  Therefore, in the event of such breach, the Employer is specifically authorized to apply to a court of competent jurisdiction to enjoin any violation of such provision.

     5.      Benefits.  The Employee shall be entitled to the same benefits package as the employees of Black Warrior Wireline Corp.   So long as the senior executives of Employer receive company-paid family health coverage, the Employee shall receive this benefit.  

     6.      Termination.Employee’s employment shall be terminated upon the happening of any of the following events:

          (i)      At the end of the 3rd year of employment hereunder, unless extended by mutual agreement of the parties; or

          (ii)      Upon any material breach of the employment relationship, including the failure of Employee to perform his duties, as reasonably directed by Employer; or

          (iii)      Upon the death or disability of the Employee; provided that, for clarification, death or disability shall not be considered a breach of this agreement; or

          (iv)      Conviction in a court of law of any felony or offense involving company property; or

          (v)      Violation of any part of the company’s standard policies and procedures, drug and alcohol policy or any policy letters which may be issued from time to time.

	

	Employment Agreement – Ron Whitter – September
    1, 2004	Page 6

     7.      Amendments.  This agreement shall not be modified or amended except by a writing signed by both parties.

     8.      Prior Agreements.  This agreement replaces and supersedes any and all employment agreements, deferred compensation agreements, or employment arrangements, whether written or oral, between the parties hereto, made at any time prior to the date hereof.

     9.      Applicable Law.  This agreement shall be construed and enforced in accordance with the laws of the state of Texas.

     10.      Notices.
    All notices, request, demands, and other communications hereunder shall be
    deliverer in writing, by fax or verbal. If in writing shall be delivered
to the following: 

	 	(i)	If to the employer, to:	 
	 	 	 	 
	 	 	 	Black Warrior Wireline Corp.

    100 Rosecrest Lane

    Columbus, Mississippi 39701

    Attn: William L. Jenkins
	 	 	 	 
	 	(ii)	 If to the employee, to:
	 	 	 	 
	 	 	 	Ron Whitter

      6402 Gladehill Drive

    Kingwood, TX 77345

 

 

	

	Employment Agreement – Ron Whitter – September
    1, 2004	Page 7

 

     11.      Change of Control.   Upon a Change of Control, the Employer shall pay to the Employee the sum of $125,000 (the “COC Payment”).  As used herein, a Change of Control shall mean any of the following:  (i) any person or group of persons (within the meaning of the Securities Exchange Act of 1934,) shall have acquired, after the Closing Date, beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934,) of 20% or more of the issued and outstanding shares of capital stock of Company having the right to vote for the election of Directors of Company under ordinary circumstances; (ii)
more than 25% of the assets of the Company are sold in a transaction or series of  transactions closing within twenty-four (24) months of one another; (iii) the Company shall merge with any other person or firm;  (iv) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors of Company (together with any new directors whose election by the Board of Directors of Company or whose nomination for election by the Stockholders of Company was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of such period or whose election or nomination for election was previously so approved cease) for any reason other than death or disability to constitute a
majority of the Directors then in office; (v) St. James Capital Corp. ceases to be the general partner, managing partner or otherwise ceases to be in control of St. James Capital Partners, LP or SJMB, LLC ceases to be the general partner, managing partner or otherwise ceases to be in control of  SJMB, LP, (vi) William L. Jenkins ceases to serve in as Chief Executive Officer, President or Director of the Company.  

     12.      Captions.  The captions or headings in this Agreement are made for convenience and general reference only and shall not be construed to describe, define or limit the scope or intent of the provisions of this Agreement.

     13.      Assignment.
    In the event of a sale of the Employer, or a sale of substantially all of
    the assets of the Employer, the Employer shall either (i) cause the purchaser
    to assume its rights and obligations under this Agreement or (ii) terminate
    this agreement and pay to Employee an early termination fee equal to fifty
    percent (50%) of the compensation due to Employee during the remainder of
the Term.

 

	

	Employment Agreement – Ron Whitter – September
    1, 2004	Page 8

     IN WITNESS WHEREOF, the Employer by and through its duly authorized officers and the Employee have caused this instrument to be executed under seal effective the 15th day of September, 2004, but
 effective upon the Effective Date.

 

	

	Employment Agreement – Ron Whitter – September
    1, 2004	Page 9

 

 

                         

	WITNESS:	BLACK WARRIOR WIRELINE CORP.
	 	 
	 /s/ Cheryl Hicks	            By:/s/ William L. Jenkins
	 	William L. Jenkins
	 	Its CEO
	 	 
	WITNESS:	EMPLOYEE:
	 	 
	/s/Olivia Jackson	/s/ Ron Whitter
	 	 Ron Whitter

 

	

	Employment Agreement – Ron Whitter – September
    1, 2004	Page 10

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