AMENDED AND RESTATED TAX SHARING AGREEMENT
AMENDED AND RESTATED TAX SHARING AGREEMENT, made as of March 15,
2001, by and among BPC Holding Corporation, a Delaware corporation having its
principal place of business at 000 Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxx 00000
("Holding"), and those corporations that have executed this Agreement and whose
names and principal places of business are set forth on Exhibit A hereto (all of
which are direct or indirect domestic subsidiaries of Holding and are includible
in the consolidated Federal income tax return of the affiliated group (within
the meaning of Section 1504 of the Internal Revenue Code of 1986, as amended
(the "Code")) of which Holding is the common parent corporation (hereinafter,
the "Holding Group") for the fiscal year ended December 31, 1994), and such
other parties as may become members of the Holding Group in subsequent fiscal
years for which Holding files a consolidated Federal income tax return as the
common parent corporation of an affiliated group, and who execute this Agreement
(hereinafter, sometimes collectively referred to as the "Subsidiaries").
This Amended and Restated Tax Sharing Agreement amends and restates
the Tax Sharing Agreement dated as of April 20, 1994, among Holding and the
other parties thereto, for the purpose of memorializing certain oral agreements
previously made by the parties hereto.
Holding and the Subsidiaries wish to provide for payment of the
consolidated Federal income tax and certain state and local tax liabilities of
the Holding Group by Holding; for the contribution to such payment by the
various members of the Holding Group, including Xxxxx Plastics Corporation, a
Delaware corporation having its principal place of business at 000 Xxxxxx
Xxxxxx, Xxxxxxxxxx, Xxxxxxx 00000 ("Xxxxx"), and any direct and indirect
subsidiaries of Xxxxx ("Xxxxx Subsidiaries") that may be includible in the
Holding Group (hereinafter, Xxxxx
and such Xxxxx Subsidiaries are sometimes collectively referred to as the "Xxxxx
Group"), to which such liability may be attributable in whole or in part; and
for the reimbursement by Holding to those Subsidiaries that produce losses or
credits in any fiscal year in the amount of the benefit that such Subsidiary
would be entitled to with respect to such losses or credits on a separate return
basis, or for the benefit, in whole or in part, that such losses or credits
produce for the Holding Group.
In consideration of the foregoing, and of the mutual covenants and
promises herein contained, Holding and the Subsidiaries agree as follows:
1. Allocation and Payment of Tax Liability of Members of Group.
(a) For the fiscal year ended December 31, 1994 and for each
subsequent fiscal year for which this Agreement may remain in effect, each
Subsidiary shall be required to pay to Holding (in the manner provided in
paragraph 1(c) hereof), as its share of the consolidated Federal income tax
liability of the Holding Group, an amount equal to the Federal income tax
liability that would have been payable by such Subsidiary for such year if it
had filed a separate income tax return for such year and all prior years;
provided, however, that in computing separate return tax liability, no account
shall be taken of any deduction, loss or credit of any Subsidiary to the extent
that such Subsidiary has previously received payment therefor, pursuant to
Section 3 hereof. Payments shall be required to be made in each fiscal year
pursuant to this Section without regard to the actual consolidated Federal
income tax liability, if any, of the Holding Group for such year.
(b) For the purposes of this Agreement, if, in any fiscal year, one
or more Xxxxx Subsidiaries are includible in the Holding Group, all members of
the Xxxxx Group shall be deemed to constitute a single member of the Holding
Group, and any portion of the Holding
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Group consolidated Federal income tax liability for any fiscal year that is
apportioned to the Xxxxx Group in accordance with this Section shall be
allocated among the members thereof in such manner as they may agree. The amount
of separate return tax liability required to be paid to Holding by Xxxxx or the
Xxxxx Group in any year pursuant to this Section shall be determined as if Xxxxx
had filed a consolidated Federal income tax return for such year and for all
prior years, on behalf of itself and all Xxxxx Subsidiaries that were includible
corporations described in Section 1504(a)(1) of the Code for such year or prior
years, as the case may be.
(c) Each member (or group of members) of the Holding Group shall
make payment to Holding of any consolidated Federal income tax liability
allocated to it pursuant to this Section 1, and Holding shall have sole
responsibility for making any required payments to the Internal Revenue Service
(the "IRS") in satisfaction of the consolidated Federal income tax liability of
the Holding Group for each fiscal year. Subject to the provisions of Section
1(d) below, for each quarter of each fiscal year after the year ended December
31, 1994, each member (or group of members) of the Holding Group shall make
payment to Holding of any amount required to be paid pursuant to this Section no
later than the date upon which such member (or group of members) would be
required to make an installment payment of estimated income tax to the IRS for
such quarter, in accordance with Section 6655 of the Code. The amount of any
overpayment or underpayment pursuant to this Section shall be credited against
or added to, as the case may be, the amount otherwise required to be paid for
the fiscal quarter within which the amount of such overpayment or underpayment
first becomes reasonably ascertainable; provided, however, that, upon written
request (including supporting schedules) of any member (or group of members),
made after the close of any fiscal year but within the period described in
Section 6425(a)(1) of the Code, Holding shall repay to such member (or group of
members), within the
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period described in Section 6425(b)(1) of the Code, the amount of any net
remaining overpayment of consolidated tax liability made by such member (or
group of members) for such year.
(d) Anything contained in this Agreement to the contrary
notwithstanding, any payment to be made by any party hereto to any other party
hereto may be deferred until such time as either (I) the party obligated to make
such payment elects to make the relevant payment or (II) the party entitled to
receive such payment demands that such payment be made. All such deferred
payments shall bear interest at an annual rate that approximates the average
interest rate under Xxxxx'x revolving credit facility over the time period that
such payment is deferred, computed on the basis of the actual number of days
elapsed over a 365-day period. The provisions of this Section 1(d) shall apply
to all payment obligations that arose since the inception of this Agreement as
originally entered into as of April 20, 1994.
2. Payment for Tax Benefits of Members. From and after the date hereof, if
any member (or group of members) of the Holding Group would be entitled to a
refund of Federal income taxes previously paid in any prior fiscal year,
computed on a separate return basis (in the manner described in Section 1
hereof), as a result of any losses, deductions or credits claimed by such member
(or group of members) for any fiscal year for which this Agreement may be in
effect (any such entitlement to a refund being referred to herein as a "Separate
Return Tax Benefit"), whether by reason of a carryback of a net operating loss,
or a net capital loss or tax credit, or otherwise, then, upon written request
(including supporting schedules) of such member (or group of members), made
within the period described in Section 6411(a) of the Code, Holding shall pay
the amount of such Separate Return Tax Benefit to such member, within the period
described in Section 6411(b) of the Code (subject to the provisions of Section
1(d)
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above). In the case of Xxxxx and Xxxxx Subsidiaries, the amount of the Separate
Return Tax Benefit for any year shall be computed as if Xxxxx had filed a
consolidated Federal income tax return for such year and for all prior years on
behalf of itself and all other Xxxxx Subsidiaries that were includible
corporations described in Section 1504(a)(1) of the Code. The amount of any
payment required to be made to any member (or group of members) pursuant to this
Section 2 shall be reduced by any amount previously paid to such member (or
group of members) with respect to such losses, deductions or credits pursuant to
Section 3 hereof.
3. Payment for Tax Benefits of Group.
(a) If, for any fiscal year during which this Agreement is in
effect, any member (or group of members) shall have a negative separate return
tax liability (hereinafter, a "Loss Member"), Holding intends to pay to such
Loss Member an amount equal to the tax benefit realized by the Holding Group for
such year (the "Group Tax Benefit") as a result of such negative separate return
tax liability. For purposes of this Agreement, the Group Tax Benefit for any
fiscal year shall be equal to the excess, if any, of (i) the sum of the separate
return tax liabilities of each member of the Holding Group having a positive
separate return tax liability for such year, over (ii) the actual consolidated
Federal income tax liability of the Holding Group for such year. For purposes of
this Section 3, "separate return tax liability" shall be computed in accordance
with, and subject to the exceptions and limitations provided in Treas. Reg. ss.
1.1552-1(a)(2)(ii). "negative separate return tax liability" shall similarly be
ascertained under the principles of Treas. Reg. ss. 1.1552-1(a)(2)(ii), as if
the Loss Member had filed a separate return for such fiscal year as its first
separate return year and allocated to such separate return year carryover and
carryback items of consolidated net operating loss, consolidated net capital
loss, consolidated unused investment credit, consolidated unused foreign tax
credit, and consolidated
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excess charitable contributions under the provisions of Treas. Reg. ss.
1.1502-79. In the case of the Xxxxx Group, separate return tax liability and
negative separate return tax liability shall be computed in accordance with the
principles set forth in this Section 3, on a consolidated basis.
(b) Within 90 days after the beginning of each fiscal year for which
this Agreement may be in effect, Holding shall give written notice to each
Subsidiary of its intention to pay one or more Loss Members in an amount equal
to all, or any portion, of their proportionate part (determined in the manner
provided in paragraph 3(a)) of any Group Tax Benefit that may be realized by the
Holding Group for such year. Holding intends to make such payments on a
quarterly basis, in the manner described in paragraph 1(c) hereof; provided,
however, that all payments made pursuant to this Section 3 shall be made in the
sole discretion of Holding, and Holding shall have no obligations or liability
whatsoever with respect thereto to any Loss Member; and provided, further, that
any payment made to any Loss Member in a fiscal year pursuant to this Section 3
shall be reduced by any amount previously paid to such Loss Member with respect
to such year under Section 2 hereof.
4. Adjustments. Any adjustment of income, deduction, or credit that
results after the fiscal year in question by reason of any carryback, amended
return, claim for refund, or audit shall be given effect by redetermining
amounts payable and reimbursable for such fiscal year hereunder as if such
adjustment had been part of the original determination hereunder, with interest
payable in the amounts provided in Section 6611 of the Code. Any increases in
the consolidated Federal income tax liability of the Holding Group, and any
penalties and interest imposed with respect to any consolidated Federal income
tax return filed on behalf of the Holding Group, shall be given effect by
redetermining amounts payable for such fiscal year as if such adjustment had
been part of the original determination hereunder.
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5. Alternative Minimum Tax. Each Subsidiary shall be required to pay to
Holding, as its share of any alternative minimum tax imposed on the Holding
Group pursuant to Section 55 of the Code, an amount of such liability that
Holding shall allocate to each Subsidiary, provided that any such amounts so
allocated pursuant to this Section 5.1 shall be allocated by Holding in a manner
that is equitable and is consistent with Section 55 and Section 1502 of the
Code, and the Treasury Regulations promulgated thereunder, including any
amendments thereto and consistent with the allocations of tax liability pursuant
to Section 1 hereof.
6. State Taxes. If, at any time from and after the date hereof, the
liability of Holding and the Subsidiaries for any state or local income or
franchise taxes is determined on a consolidated or combined basis, this
Agreement shall be applied in like manner to determine liability for, and tax
benefit payments with respect to, such taxes.
7. Termination. This Agreement may be terminated at any time upon mutual
agreement of the parties hereto; provided, however, that such termination shall
not relieve Holding of the obligation to make payments to any Subsidiary
pursuant to Section 2 hereof for any separate return tax benefit to which such
Subsidiary would have been entitled (if this Agreement had remained in effect)
as a result of any loss, deductions or credits taken by such Subsidiary for any
fiscal year for which this Agreement was in effect, nor will it relieve Holding
or the Subsidiaries of any obligations pursuant to Sections 1.3, 4, and 6
hereof.
8. Effective Date. This Agreement shall be effective for the taxable year
of the Holding Group ended December 31, 1994, and for all taxable years
thereafter.
9. Captions. All section captions contained in this Agreement are for
convenience only and shall not be deemed a part of this Agreement.
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10. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original and all of which, when taken together, shall
constitute one agreement.
11. Governing Law. This Agreement shall be governed by the laws applicable
to contracts entered into and to be fully performed within the State of New York
by residents thereof.
12. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns.
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IN WITNESS WHEREOF, Holding and the Subsidiaries have executed this
Agreement as of the day and year first above written.
XXXXX PLASTICS CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
BPC HOLDING CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX IOWA CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX TRI-PLAS CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX XXXXXXXX CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
AEROCON, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
PACKERWARE CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX PLASTICS DESIGN CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
VENTURE PACKAGING, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX PLASTICS TECHNICAL SERVICES, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
VENTURE PACKAGING MIDWEST, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
KNIGHT PLASTICS, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
CPI HOLDING CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
CARDINAL PACKAGING, INC.
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX PLASTICS ACQUISITION
CORPORATION II
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
XXXXX PLASTICS ACQUISITION
CORPORATION III
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
POLY-SEAL CORPORATION
By: /s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Xxxxx X. Xxxxxxxxxx
Executive Vice President, Chief
Financial Officer, Treasurer and
Secretary
EXHIBIT A
Name Principal Place of Business
--------------------------------------------- ---------------------------------
Xxxxx Plastics Corporation 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
BPC Holding Corporation 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
Xxxxx Iowa Corporation 0000 Xxxxxxxxxx Xxxx Xxxx
Xxxx Xxxxx, Xxxx 00000
Xxxxx Tri-Plas Corporation 0000 Xxxxxx Xxxxxx-Xxxxxx Xxxx
Xxxxxx, XX 00000
Xxxxx Xxxxxxxx Corporation 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
AeroCon, Inc. 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
PackerWare Corporation 0000 Xxxxxx Xxxx
Xxxxxxxx, XX 00000
Xxxxx Plastics Design Corporation 0000 Xxxxxxxx Xxxx
Xxxxxxx, Xxxxxxxx 00000
Venture Packaging, Inc. 000 X. Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Xxxxx Plastics Technical Services, Inc. 0000 Xxxxxxxxxx Xxxx
Xxxxxx, XX 00000
Venture Packaging Midwest, Inc. 000 X. Xxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Knight Plastics, Inc. 0000 Xxxxxxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
CPI Holding Corporation 0000 Xxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Cardinal Packaging, Inc. 0000 Xxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Xxxxx Plastics Acquisition Corporation II 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
Xxxxx Plastics Acquisition Corporation III 000 Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
Poly-Seal Corporation 0000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
