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EXHIBIT 2.3
AMENDMENT TO
RECAPITALIZATION AGREEMENT
This Amendment to Recapitalization Agreement (this "Agreement") is
dated this 31st day of May, 2000 by and between Huntsman Packaging Corporation,
a Utah corporation (the "Company"), Chase Domestic Investments, L.L.C. (the
"Buyer") and the other parties hereto.
WHEREAS, reference is hereby made to that certain Recapitalization
Agreement dated as of March 31, 2000 by and between the Company, the Buyer and
the Shareholders identified therein (as amended, restated, supplemented or
otherwise modified from time to time, the "Recapitalization Agreement");
WHEREAS, the parties to the Recapitalization Agreement wish to
amend and restate certain provisions of the Recapitalization Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained
hereon and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
SECTION 1. Amendments.
1.1. Definitions. Article I of the Recapitalization Agreement is
hereby amended by:
(a) deleting the definition of "Buyer Group" and inserting the
following in lieu thereof:
"Buyer Group" shall mean the Buyer, its successors and
permitted assigns and their respective Affiliates."
(b) inserting the following at the end of the definition of
"Closing Date Indebtedness:"
";provided, however, that in calculating Closing Date
Indebtedness, any indebtedness incurred to finance insurance premiums for
insurance carried by the Company shall be disregarded to the extent that
the Company has recorded, in accordance with GAAP, an asset resulting
from the prepayment of such insurance premiums."
1.2. Section 2.2 of the Recapitalization Agreement. Section 2.2
of the Recapitalization Agreement is hereby amended by inserting the following
at the end of such section:
"; provided, however, notwithstanding anything in this
Agreement to the contrary, Durham Capital, Ltd. shall not be obligated to
sell to the Buyer, and the Buyer shall not have any right to purchase
from Durham Capital Ltd., any
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of the shares of Common Stock (received pursuant to Section 2.1(c)) owned
and held by Durham Capital, Ltd. and, provided, further, the aggregate
number of shares of Common Stock which Durham Capital, Ltd. would have
otherwise sold, and which the Buyer would have otherwise purchased from
Durham Capital, Ltd., pursuant to this Section 2.2 but for the provisos
contained in this Section 2.2 shall be sold by the Christena Karen H.
Durham Trust and purchased by the Buyer."
1.3 Schedule 3.1 to the Recapitalization Agreement. Schedule
3.1 of the Recapitalization Agreement is hereby amended by deleting it in its
entirety and replacing it in full with Schedule I to this Agreement.
1.4 Section 10.3 of the Recapitalization Agreement. Section
10.3 of the Recapitalization Agreement is hereby amended by inserting the
following at the end of such section:
"(c) Actions by Permitted Assigns. Notwithstanding anything in
this Agreement to the contrary, in no event shall any permitted assign of
the Buyer initiate any action or assert, raise or claim any Loss under
this Agreement unless the Buyer has consented in writing to such action
and has assumed the responsibility for the prosecution thereof."
1.5 Section 12.7 of the Recapitalization Agreement. Section
12.7 of the Recapitalization Agreement is hereby amended by inserting the
following immediately following clause (ii) thereof:
"or (iii) the Buyer shall be permitted to transfer shares
of Common Stock purchased hereunder having an aggregate value of not more
than $12,000,000 to The Northwestern Mutual Life Insurance Company, New
York Life Capital Partners, L.P. and First Union Capital Partners, LLC,
provided that such Persons shall not be bound by the non-solicitation
provisions of the Confidentiality Agreement,"
1.6 Section 12.11 to the Recapitalization Agreement. Section
12.11 of the Recapitalization Agreement is hereby amended by deleting it in its
entirety and inserting the following in lieu thereof:
"12.11 Chase Capital Partners Guarantee. Chase Capital Partners
hereby guarantees the performance by the Buyer and any permitted assign
thereof of all of their respective obligations hereunder."
SECTION 2. Miscellaneous.
2.1. Defined Terms. All capitalized and undefined terms used
herein shall have the meanings ascribed to such terms in the Recapitalization
Agreement.
2.2. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become
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effective when one or more counterparts have been signed by each of the parties
and delivered to the other party.
2.3. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without reference
to the choice of law principles thereof.
2.4. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided, however, that the Buyer, so long as the Buyer
remains liable for its obligations under the Recapitalization Agreement, may
transfer any of its rights or obligations hereunder to any of its Affiliates.
2.5. Confirmation of the Recapitalization Agreement. Except as
expressly modified hereby, the Recapitalization Agreement shall remain in full
force and effect and is hereby ratified and confirmed in all respects.
[signature page follows]
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IN WITNESS WHEREOF the undersigned have entered into this Amendment
to the Recapitalization Agreement as of the date first written above.
CHASE DOMESTIC INVESTMENTS, L.L.C.
By: Chase Capital Investments L.P.,
its sole Member
By: Chase Capital Partners,
as Investment Manager
By:
/s/ DONALD HOFMANN
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Name: Donald Hofmann
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Title: General Partner
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HUNTSMAN PACKAGING CORPORATION
By:
/s/ RICHARD P. DURHAM
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Name: Richard P. Durham
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Title: President and CEO
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/s/ RICHARD P. DURHAM
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Richard P. Durham, as Representative
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SCHEDULE I
Schedule 3.1
CAPITAL STOCK AND
QUALIFICATIONS
The Company is qualified to do business as a foreign corporation in the
following states: Alabama, California, Delaware, Florida, Georgia, Illinois,
Indiana, Kentucky, Massachusetts, Minnesota, Missouri, New Jersey, New York,
Ohio, Pennsylvania, Tennessee, Texas, Washington and Wisconsin
SUBSIDIARIES
FOREIGN
JURISDICTIONS
WHERE QUALIFIED
SUBSIDIARY OWNERSHIP OF OUTSTANDING EQUITY TO DO BUSINESS
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Huntsman Film Products of Canada Ltd., Huntsman Packaging Corporation - 100% Quebec, Prince
an Ontario, Canada company Edward Island, Nova
Scotia, New
Brunswick, Manitoba,
Alberta,
Saskatechewan,
Newfoundland and
British Columbia
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Huntsman Packaging Georgia, Inc., a Huntsman Packaging Corporation - 100%
Georgia corporation
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Huntsman KCL Corporation, a Utah Huntsman Packaging Corporation - 100% Indiana, Ohio and
corporation Texas
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Huntsman Film Products of Mexico, Inc., Huntsman Packaging Corporation - 100%
a Utah corporation
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Huntsman Container Corporation Huntsman Packaging Corporation - 100%
International, a Utah corporation
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Huntsman Film Products, UK, Limited, a Huntsman Container Corporation
U.K. company International - 100%
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Huntsman Film Products GmbH, a Huntsman Packaging Corporation - 100%
German limited liability company
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Huntsman Film Products Pty. Ltd., a Huntsman Packaging Corporation - 99.99%
Victoria, Australia proprietary company Third party holders of statutory shares -
0.01%
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Huntsman Bulk Packaging Corporation, a Huntsman Packaging Corporation - 100%
Utah corporation
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Huntsman/IPEX, a Utah general IPEX (U.S.) Pty. Ltd. - 50%
partnership Huntsman Bulk Packaging Corporation - 50%
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Huntsman Packaging of Canada, LLC, a Huntsman Packaging Corporation - 100% British Columbia
Utah limited liability company
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FOREIGN
JURISDICTIONS
WHERE QUALIFIED
SUBSIDIARY OWNERSHIP OF OUTSTANDING EQUITY TO DO BUSINESS
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HPC Investment, Inc., a Utah corporation Huntsman Packaging Corporation - 100%
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Huntsman Edison Films Corporation, a Huntsman Packaging Corporation - 100% Georgia, New Jersey,
Delaware corporation Oklahoma and
Virginia
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Edison Exports, Inc. FSC Limited, a Edison Plastics International, Inc. - 100%
Jamaican corporation
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Edison Plastics International Inc., a Huntsman Edison Films Corporation - 100%
Delaware corporation
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Aspen Industrial S.A. de Huntsman Packaging Corporation - 99.99%
C.V., a Mexican corporation Huntsman Container Corporation
International - 0.01%
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Mexicana de Tintas, S.A., a Mexican Aspen Industrial S.A. de C.V. - 99.99%
corporation Huntsman Edison Films Corporation - 0.01%
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NEPSA de Mexico S.A. de C.V., a Aspen Industrial S.A. de C.V. - 99.99%
Mexican corporation Huntsman Edison Films Corporation - 0.01%
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