Guarantee and Collateral Agreement



 Exhibit 10.3 
 GUARANTEE AND COLLATERAL AGREEMENT 
 Dated and effective as of August 1, 2006, 
 among 
 VERSO PAPER FINANCE HOLDINGS LLC

 VERSO PAPER HOLDINGS LLC 
 as
Borrower 
 each Subsidiary of the Borrower 
 identified herein, 
 and 
 CREDIT SUISSE, CAYMAN ISLANDS BRANCH, 
 as Administrative Agent 







 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I
 DEFINITIONS

			
	 Section 1.01.
	  	Credit Agreement	  	1
	 Section 1.02.
	  	Other Defined Terms	  	1
	
	 ARTICLE II
 GUARANTEE

			
	 Section 2.01.
	  	Guarantee	  	5
	 Section 2.02.
	  	Guarantee of Payment	  	6
	 Section 2.03.
	  	No Limitations, Etc.	  	6
	 Section 2.04.
	  	Reinstatement	  	7
	 Section 2.05.
	  	Agreement To Pay; Contribution; Subrogation	  	7
	 Section 2.06.
	  	Information	  	8
	 Section 2.07.
	  	Maximum Liability	  	8
	 Section 2.08.
	  	Payment Free and Clear of Taxes	  	8
	
	 ARTICLE III
 PLEDGE OF SECURITIES

			
	 Section 3.01.
	  	Pledge	  	9
	 Section 3.02.
	  	Delivery of the Pledged Collateral	  	9
	 Section 3.03.
	  	Representations, Warranties and Covenants	  	10
	 Section 3.04.
	  	Registration in Nominee Name; Denominations	  	12
	 Section 3.05.
	  	Voting Rights; Dividends and Interest, Etc.	  	12
	
	 ARTICLE IV
 SECURITY INTERESTS IN OTHER PERSONAL PROPERTY

			
	 Section 4.01.
	  	Security Interest	  	14
	 Section 4.02.
	  	Representations and Warranties	  	17
	 Section 4.03.
	  	Covenants	  	19
	 Section 4.04.
	  	Other Actions	  	21
	 Section 4.05.
	  	Covenants Regarding Patent, Trademark and Copyright Collateral	  	23
	
	 ARTICLE V
 REMEDIES

			
	 Section 5.01.
	  	Remedies Upon Default	  	24
	 Section 5.02.
	  	Application of Proceeds	  	26

  

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	 Section 5.03.
	  	Securities Act, Etc.	  	27
	
	 ARTICLE VI
 INDEMNITY, SUBROGATION AND SUBORDINATION

			
	 Section 6.01.
	  	Indemnity	  	27
	 Section 6.02.
	  	Contribution and Subrogation	  	28
	 Section 6.03.
	  	Subordination	  	28
	
	 ARTICLE VII
 MISCELLANEOUS

			
	 Section 7.01.
	  	Notices	  	29
	 Section 7.02.
	  	Security Interest Absolute	  	29
	 Section 7.03.
	  	Limitation By Law	  	29
	 Section 7.04.
	  	Binding Effect; Several Agreement	  	29
	 Section 7.05.
	  	Successors and Assigns	  	30
	 Section 7.06.
	  	Administrative Agent’s Fees and Expenses; Indemnification	  	30
	 Section 7.07.
	  	Administrative Agent Appointed Attorney-in-Fact	  	30
	 Section 7.08.
	  	GOVERNING LAW	  	31
	 Section 7.09.
	  	Waivers; Amendment	  	31
	 Section 7.10.
	  	WAIVER OF JURY TRIAL	  	32
	 Section 7.11.
	  	Severability	  	32
	 Section 7.12.
	  	Counterparts	  	32
	 Section 7.13.
	  	Headings	  	32
	 Section 7.14.
	  	Jurisdiction; Consent to Service of Process	  	32
	 Section 7.15.
	  	Termination or Release	  	33
	 Section 7.16.
	  	Additional Subsidiaries	  	34
	 Section 7.17.
	  	Right of Set-off	  	34

 Schedules 
  

					
	 Schedule I
	  	Subsidiary Parties	  	44
	 Schedule II
	  	Pledged Stock; Debt Securities	  	45
	 Schedule III
	  	Intellectual Property	  	47
	 Schedule IV
	  	Filing Jurisdictions	  	55
	 Schedule V
	  	Commercial Tort Claims	  	56
	 Schedule VI
	  	Matters Relating to Accounts and Inventory	  	57

 Exhibits 
  

			
	 Exhibit I
	  	Form of Supplement to the Guarantee and Collateral Agreement

  

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 GUARANTEE AND COLLATERAL AGREEMENT dated and effective as of August 1, 2006 (this
“Agreement”), among VERSO PAPER FINANCE HOLDINGS LLC, a Delaware limited liability company (“Holdings”), VERSO PAPER HOLDINGS LLC, a Delaware limited liability company (the “Borrower”) each
Subsidiary of the Borrower identified on Schedule I or otherwise identified herein as a party (each, a “Subsidiary Party”) and CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent (in such capacity, the
“Administrative Agent”) for the Secured Parties (as defined below). 
 Reference is made to the Credit Agreement dated as of
August 1, 2006 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”), among Holdings, the Borrower, the LENDERS party thereto from time to time, CREDIT SUISSE, CAYMAN
ISLANDS BRANCH, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders, LEHMAN BROTHERS INC., as syndication agent, and CITIGROUP GLOBAL MARKETS INC. and BANC OF AMERICA SECURITIES LLC, as
co-documentation agents. 
 The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the
Credit Agreement. The obligations of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Agreement. Holdings and the Subsidiary Parties are affiliates of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto agree as
follows: 
 ARTICLE I 
 DEFINITIONS

 Section 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the
respective meanings assigned thereto in the Credit Agreement. All terms defined in the New York UCC (as defined herein) and not defined in this Agreement have the meanings specified therein. The term “instrument” shall have the meaning
specified in Article 9 of the New York UCC. 
 (b) The rules of construction specified in Section 1.02 of the Credit Agreement also
apply to this Agreement. 
 Section 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings
specified below: 
 “Account Debtor” means any person who is or who may become obligated to any Pledgor under, with respect
to or on account of an Account, Chattel Paper, General Intangibles, Instruments or Investment Property. 
 “Article 9
Collateral” has the meaning assigned to such term in Section 4.01. 







 “Bucksport Co-Gen Assets” means all right, title and interest of CMP Bucksport LLC in,
to and under the Amended and Restated Co-Owners Ownership, Operating & Mutual Sales Agreement by and between Champion International Corporation and Bucksport Energy LLC, including without limitation any ownership interests as tenants in
common in the property rights established pursuant thereto. 
 “Collateral” means Article 9 Collateral and Pledged
Collateral. 
 “Control Agreement” means a deposit account control agreement, a securities account control agreement or a
commodity account control agreement, as applicable, enabling the Administrative Agent to obtain “control” (within the meaning of the New York UCC) of any such accounts, in form and substance reasonably satisfactory to the Administrative
Agent. 
 “Copyright License” means any written agreement, now or hereafter in effect, granting any right to any Pledgor
under any Copyright now or hereafter owned by any third party, and all rights of any Pledgor under any such agreement (including, without limitation, any such rights that such Pledgor has the right to license). 
 “Copyrights” means all of the following now owned or hereafter acquired by any Pledgor: (a) all copyright rights in any work
subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise, (b) all registrations and applications for registration of any such Copyright in the United States or any other
country, including registrations, supplemental registrations and pending applications for registration in the United States Copyright Office and the right to obtain all renewals thereof, including those listed on Schedule III, (c) all
claims for, and rights to sue for, past or future infringements of any of the foregoing and (d) all income, royalties, damages and payments now or hereafter due and payable with respect to any of the foregoing, including damages and payments
for past or future infringement thereof. 
 “Credit Agreement” has the meaning assigned to such term in the preliminary
statement of this Agreement. 
 “Excluded Minority Interests” means any Equity Interests owned by CMP Holdings LLC in each
of (a) Androscoggin Reservoir Company and (b) Gulf Island Oxygenation Project L.P., provided that such Equity Interests shall constitute Excluded Minority Interest only for so long as they are subject to an enforceable contractual
obligation (including, for this purpose, rights of first refusal) restricting the grant of a security interest therein. 
 “Federal
Securities Laws” has the meaning assigned to such term in Section 5.03. 
 “General Intangibles” means all “General
Intangibles” as defined in the New York UCC, including all choses in action and causes of action and all other intangible personal property of any Pledgor of every kind and nature (other than Accounts) now owned or hereafter acquired by any
Pledgor, including corporate or other business records, indemnification claims, contract rights (including rights under leases, whether entered into as lessor or lessee, Swap Agreements and other agreements), Intellectual Property (but excluding
“intent-to-use” applications for trademark or service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until an Amendment to Allege Use or a Statement of Use under 

  

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Sections 1(c) and 1(d) of Lanham Act has been filed, to extent that, and solely during the period for which, any assignment of an “intent-to-use”
application prior to such filing would violate the Lanham Act), goodwill, registrations, franchises, tax refund claims and any guarantee, claim, security interest or other security held by or granted to any Pledgor to secure payment by an Account
Debtor of any of the Accounts. 
 “Guarantors” means Holdings and the Subsidiary Parties. 
 “Intellectual Property” means all intellectual property of every kind and nature now owned or hereafter acquired by any Pledgor,
including, inventions, designs, Patents, Copyrights, Trademarks, Patent Licenses, Copyright Licenses, Trademark Licenses, trade secrets, domain names, confidential or proprietary technical and business information, know-how, show-how or other data
or information and all related documentation. 
 “Intellectual Property Security Agreement” means a security agreement in
the form hereof or a short form hereof, in each case, which form shall be reasonably acceptable to the Administrative Agent. 
 “IP
Agreements” means all material Copyright Licenses, Patent Licenses, Trademark Licenses, and all other agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any material Intellectual
Property to which a Pledgor, now or hereafter, is a party or a beneficiary, including, without limitation, the agreements set forth on Schedule III hereto. 
 “Loan Document Obligations” means (a) the due and punctual payment by the Borrower of (i) the unpaid principal of and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans made to the Borrower, when and as due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise, (ii) each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon
(including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and obligations to provide cash collateral and (iii) all
other monetary obligations of the Borrower to any of the Secured Parties under the Credit Agreement and each of the other Loan Documents, including obligations to pay fees, expense and reimbursement obligations and indemnification obligations,
whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding), (b) the due and punctual performance of all other obligations of the Borrower under or pursuant to the Credit Agreement and each of the other Loan Documents and (c) the due and punctual payment and performance of all the
obligations of each other Loan Party under or pursuant to this Agreement and each of the other Loan Documents. 
 “New York
UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York. 
  

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 “Obligations” means (a) the Loan Document Obligations, (b) the due and
punctual payment and performance of all obligations of each Loan Party under each Swap Agreement that (i) is in effect on the Closing Date with a counterparty that is a Lender or an Affiliate of a Lender as of the Closing Date or (ii) is
entered into after the Closing Date with any counterparty that is a Lender or an Affiliate of a Lender at the time such Swap Agreement is entered into and (c) the due and punctual payment and performance of all obligations of the Borrower and
any of its Subsidiaries in respect of overdrafts and related liabilities and/or arising from cash management services (including treasury, depository, overdraft, credit or debit card, electronic funds transfer, netting, ACH services and other cash
management arrangements), in each case owed to a counterparty that is a Lender or an Affiliate of a Lender at the time the arrangements governing such obligation is entered into. 
 “Patent License” means any written agreement, now or hereafter in effect, granting to any Pledgor any right to make, use or sell any
invention covered by a Patent, now or hereafter owned by any third party (including, without limitation, any such rights that such Pledgor has the right to license). 
 “Patents” means all of the following now owned or hereafter acquired by any Pledgor: (a) all letters patent of the United States or the equivalent thereof in any other country or jurisdiction,
including those listed on Schedule III, and all applications for letters patent of the United States or the equivalent thereof in any other country or jurisdiction, including those listed on Schedule III, (b) all provisionals,
reissues, extensions, continuations, divisions, continuations-in- part, reexaminations or revisions thereof, and the inventions disclosed or claimed therein, including the right to make, use, import and/or sell the inventions disclosed or claimed
therein, (c) all claims for, and rights to sue for, past or future infringements of any of the foregoing and (d) all income, royalties, damages and payments now or hereafter due and payable with respect to any of the foregoing, including
damages and payments for past or future infringement thereof. 
 “Permitted Liens” means any Lien permitted by
Section 6.02 of the Credit Agreement. 
 “Pledged Collateral” has the meaning assigned to such term in
Section 3.01. 
 “Pledged Debt Securities” has the meaning assigned to such term in Section 3.01. 
 “Pledged Securities” means any promissory notes, stock certificates or other certificated securities now or hereafter included in the
Pledged Collateral, including all certificates, instruments or other documents representing or evidencing any Pledged Collateral. 
 “Pledged Stock” has the meaning assigned to such term in Section 3.01. 
 “Pledgor” shall
mean the Borrower and each Guarantor. 
 “Secured Parties” means (a) the Lenders, (b) the Administrative Agent,
(c) each Issuing Bank, (d) each counterparty to any Swap Agreement entered into with a Loan Party the obligations under which constitute Obligations, (e) each counterparty to any cash management or similar obligation described in
clause (c) of the definition of Obligations entered into with a Loan Party, (f) the beneficiaries of each indemnification obligation undertaken by any Loan 

  

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Party under any Loan Document and (g) the successors and permitted assigns of each of the foregoing. 
 “Security Interest” has the meaning assigned to such term in Section 4.01. 
 “Subsidiary Party” has the meaning assigned to such term in the preliminary statement of this Agreement, and any Subsidiary that becomes
a party hereto pursuant to Section 7.16. 
 “Trademark License” means any written agreement, now or hereafter in
effect, granting to any Pledgor any right to use any Trademark now or hereafter owned by any third party (including, without limitation, any such rights that such Pledgor has the right to license). 
 “Trademarks” means all of the following now owned or hereafter acquired by any Pledgor: (a) all trademarks, service marks,
corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all
registrations thereof (if any), and all registration and recording applications filed in connection therewith, including registrations and registration applications in the United States Patent and Trademark Office or any similar offices in any State
of the United States or any other country or any political subdivision thereof (except for “intent-to-use” applications for trademark or service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. §
1051, unless and until an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of Lanham Act has been filed, to extent that, and solely during the period for which, any assignment of an “intent-to-use” application
prior to such filing would violate the Lanham Act), and all renewals thereof, including those listed on Schedule III, (b) all goodwill associated therewith or symbolized thereby, (c) all claims for, and rights to sue for, past or
future infringements of any of the foregoing and (d) all income, royalties, damages and payments now or hereafter due and payable with respect to any of the foregoing, including damages and payments for past or future infringement thereof.

 ARTICLE II 
 GUARANTEE

 Section 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, to the
Administrative Agent, for the ratable benefit of the Secured Parties, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations. Each Guarantor further agrees that the Obligations may be
extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. Each Guarantor waives presentment to, demand of
payment from and protest to the Borrower or any other Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. 
  

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 Section 2.02. Guarantee of Payment. Each Guarantor further agrees that its guarantee hereunder
constitutes a guarantee of payment when due (whether at the stated maturity, by acceleration or otherwise) and not of collection, and waives any right to require that any resort be had by the Administrative Agent or any other Secured Party to any
security held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Administrative Agent or any other Secured Party in favor of the Borrower or any other person. 
 Section 2.03. No Limitations, Etc. (a) Except for termination of a Guarantor’s obligations hereunder as expressly provided for in
Section 7.15 and except as provided in Section 2.07, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise (other than
defense of payment or performance). Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder, to the fullest extent permitted by applicable law, shall not be discharged or impaired or otherwise affected by, and
each Guarantor hereby waives any defense to the enforcement hereof by reason of: 
 (i) the failure of the Administrative
Agent or any other Secured Party to assert any claim or demand or to exercise or enforce any right or remedy under the provisions of any Loan Document or otherwise; 
 (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any
other agreement, including with respect to any other Guarantor under this Agreement; 
 (iii) the failure to perfect any
security interest in, or the exchange, substitution, release or any impairment of, any security held by the Administrative Agent or any other Secured Party for the Obligations; 
 (iv) any default, failure or delay, willful or otherwise, in the performance of the Obligations; 
 (v) any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a
discharge of any Guarantor as a matter of law or equity (other than the payment in full in cash or immediately available funds of all the Obligations), 
 (vi) any illegality, lack of validity or enforceability of any Obligation, 
 (vii) any change
in the corporate existence, structure or ownership of the Borrower, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or its assets or any resulting release or discharge of any Obligation, 

 

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 (viii) the existence of any claim, set-off or other rights that the Guarantors may have
at any time against the Borrower, the Administrative Agent, or any other corporation or person, whether in connection herewith or any unrelated transactions, provided that nothing herein will prevent the assertion of any such claim by separate suit
or compulsory counterclaim, 
 (ix) any action permitted or authorized hereunder, or 
 (x) any other circumstance (including without limitation, any statute of limitations) or any existence of or reliance on any
representation by the Administrative Agent that might otherwise constitute a defense to, or a legal or equitable discharge of, the Borrower or the Guarantors or any other guarantor or surety. 
 Each Guarantor expressly authorizes the Secured Parties to take and hold security for the payment and performance of the Obligations, to exchange, waive or release any
or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in
respect of the Obligations, all without affecting the obligations of any Guarantor hereunder. 
 (b) To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of any defense of any other Loan Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any
other Loan Party, other than the payment in full in cash or immediately available funds of all the Obligations (other than contingent indemnity or expense reimbursement obligations as to which no claim has been made). The Administrative Agent and
the other Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of
the Obligations, make any other accommodation with any other Loan Party or exercise any other right or remedy available to them against any other Loan Party, without affecting or impairing in any way the liability of any Guarantor hereunder except
to the extent the Obligations (other than contingent indemnity or expense reimbursement obligations as to which no claim has been made) have been paid in full in cash or immediately available funds. To the fullest extent permitted by applicable law,
each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor
against any other Loan Party, as the case may be, or any security. 
 Section 2.04. Reinstatement. Each Guarantor agrees that its
guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by the Administrative Agent or any other Secured Party
upon the bankruptcy or reorganization of the Borrower or any other Loan Party or otherwise. 
 Section 2.05. Agreement To Pay;
Contribution; Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent or any other 
  

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Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower to pay any Obligation when and as the same
shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the applicable Secured
Parties in cash the amount of such unpaid Obligation. Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Secured Party under this guarantee or any other guarantee, such
Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Loan Documents. Upon
payment by any Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against the Borrower, or other Loan Party or any other Guarantor arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article VI. 
 Section 2.06. Information. Each
Guarantor assumes all responsibility for being and keeping itself informed of the financial condition and assets of the Borrower and each other Loan Party, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the
nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Administrative Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of
them regarding such circumstances or risks. 
 Section 2.07. Maximum Liability. Each Guarantor, and by its acceptance of this
guarantee, the Administrative Agent and each Lender hereby confirms that it is the intention of all such Persons that this guarantee and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of
the U.S. Bankruptcy Code or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the
extent applicable to thus guarantee and the Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Administrative Agent, the Lenders and the Guarantors hereby irrevocably agree that the Obligations of each Subsidiary
Party under this guarantee at any time shall be limited to the maximum amount as will result in the Obligations of such Guarantor under this guarantee not constituting a fraudulent transfer or conveyance. 
 Section 2.08. Payment Free and Clear of Taxes. Any and all payments by or on account of any obligation of any Guarantor hereunder or under any
other Loan Document shall be made free and clear of, and without deduction for, any Indemnified Taxes or Other Taxes on the same terms and to the same extent that payments by the Borrower and Holdings are required to be made pursuant to the terms of
Section 2.17 of the Credit Agreement. The provisions of Section 2.17 of the Credit Agreement shall apply to each Guarantor mutatis mutandis. 
  

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 ARTICLE III 
 PLEDGE OF SECURITIES 
 Section 3.01. Pledge. As security for the payment or performance, as the case
may be, in full of its Obligations, each Pledgor hereby assigns and pledges to the Administrative Agent, its successors and permitted assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Administrative Agent, its
successors and permitted assigns, for the ratable benefit of the Secured Parties, a security interest in all of such Pledgor’s right, title and interest in, to and under (a) the Equity Interests directly owned by it (including those listed
on Schedule II) and any other Equity Interests obtained in the future by such Pledgor and any certificates representing all such Equity Interests (the “Pledged Stock”); provided that the Pledged Stock shall not
include (i) the issued and outstanding voting Equity Interests of any Foreign Subsidiary directly owned by such Pledgor, to the extent the pledge of any such Equity Interests would cause more than 65% of the outstanding voting Equity Interests
of such Foreign Subsidiary to be pledged hereunder, (ii) to the extent applicable law requires that a Subsidiary of such Pledgor issue directors’ qualifying shares, such shares or nominee or other similar shares, (iii) any Equity
Interests of a Subsidiary to the extent that, as of the Closing Date, and for so long as, such a pledge of such Equity Interests would violate applicable law or an enforceable contractual obligation binding on or relating to such Equity Interests,
or (iv) any Equity Interests of a person that is not directly or indirectly a Subsidiary, as to which Article IV shall apply; (b)(i) the debt obligations listed opposite the name of such Pledgor on Schedule II, (ii) any debt
securities in the future issued to such Pledgor having, in the case of each instance of debt securities, an aggregate principal amount in excess of $5.0 million, and (iii) the certificates, promissory notes and any other instruments, if any,
evidencing such debt securities (the “Pledged Debt Securities”); (c) subject to Section 3.05 hereof, all payments of principal or interest, dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other proceeds received in respect of, the securities referred to in clauses (a) and (b) above; (d) subject to Section 3.05
hereof, all rights and privileges of such Pledgor with respect to the securities and other property referred to in clauses (a), (b) and (c) above; and (e) all proceeds of any of the foregoing (the items referred to in clauses
(a) through (e) above being collectively referred to as the “Pledged Collateral”). 
 TO HAVE AND TO HOLD the
Pledged Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Administrative Agent, its successors and permitted assigns, for the ratable benefit of the Secured Parties,
forever; subject, however, to the terms, covenants and conditions hereinafter set forth. 
 Section 3.02. Delivery of the
Pledged Collateral. (a) Each Pledgor agrees promptly to deliver or cause to be delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, any and all Pledged Securities to the extent such Pledged Securities, in
the case of promissory notes or other instruments evidencing Indebtedness, are required to be delivered pursuant to paragraph (b) of this Section 3.02. 
 (b) Each Pledgor will cause any Indebtedness for borrowed money having an aggregate principal amount in excess of $5.0 million (other than (i) intercompany current liabilities incurred in the ordinary course of
business in connection with the cash management 

  

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operations and intercompany sales of Holdings, the Borrower and its Subsidiaries or (ii) to the extent that a pledge of such promissory note or
instrument would violate applicable law) owed to such Pledgor by any person to be evidenced by a duly executed promissory note that is pledged and delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, pursuant to the
terms hereof. To the extent any such promissory note is a demand note, each Pledgor party thereto agrees, if requested by the Administrative Agent, to immediately demand payment thereunder upon an Event of Default specified under
Section 7.01(b), (c), (f), (h) or (i) of the Credit Agreement unless such demand would not be commercially reasonable or would otherwise expose Pledgor to liability to the maker. 
 (c) Upon delivery to the Administrative Agent, (i) any Pledged Securities required to be delivered pursuant to the foregoing paragraphs (a) and
(b) of this Section 3.02 shall be accompanied by stock powers or note powers, as applicable, duly executed in blank or other instruments of transfer reasonably satisfactory to the Administrative Agent and by such other instruments and
documents as the Administrative Agent may reasonably request and (ii) all other property composing part of the Pledged Collateral delivered pursuant to the terms of this Agreement shall be accompanied to the extent necessary to perfect the
security interest in or allow realization on the Pledged Collateral by proper instruments of assignment duly executed by the applicable Pledgor and such other instruments or documents (including issuer acknowledgments in respect of uncertificated
securities) as the Administrative Agent may reasonably request. Each delivery of Pledged Securities shall be accompanied by a schedule describing the securities, which schedule shall be attached hereto as Schedule II (or a supplement to
Schedule II, as applicable) and made a part hereof; provided that failure to attach any such schedule hereto shall not affect the validity of such pledge of such Pledged Securities. Each schedule so delivered shall supplement any prior
schedules so delivered. 
 Section 3.03. Representations, Warranties and Covenants. The Pledgors, jointly and severally, represent,
warrant and covenant to and with the Administrative Agent, for the ratable benefit of the Secured Parties, that: 
 (a) Schedule II
correctly sets forth the percentage of the issued and outstanding shares of each class of the Equity Interests of the issuer thereof represented by such Pledged Stock and includes all Equity Interests, debt securities and promissory notes or
instruments evidencing Indebtedness required to be (i) pledged in order to satisfy the Collateral and Guarantee Requirement, or (ii) delivered pursuant to Section 3.02(b); 
 (b) the Pledged Stock and Pledged Debt Securities (solely with respect to Pledged Debt Securities issued by a person that is not a Subsidiary of Holdings
or an Affiliate of any such Subsidiary, to the best of each Pledgor’s knowledge) have been duly and validly authorized and issued by the issuers thereof and (i) in the case of Pledged Stock, are fully paid and nonassessable (other than
with respect to Pledged Stock consisting of membership interests of limited liability companies to the extent provided in Sections 18-502 and 18-607 of the Delaware Limited Liability Company Act) and (ii) in the case of Pledged Debt Securities
(solely with respect to Pledged Debt Securities issued by a person that is not a Subsidiary of Holdings or an Affiliate of any such subsidiary, to the best of each Pledgor’s knowledge) are legal, valid and binding obligations of the issuers
thereof, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting 

  

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creditors’ rights generally, general equitable principles (whether considered in a proceeding at law or in equity) and an implied covenant of good faith
and fair dealing; 
 (c) except for the security interests granted hereunder, each Pledgor (i) is and, subject to any transfers made in
compliance with the Credit Agreement, will continue to be the direct owner, beneficially and of record, of the Pledged Securities indicated on Schedule II as owned by such Pledgor, (ii) holds the same free and clear of all Liens, other
than Permitted Liens, (iii) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any security interest in or other Lien on, the Pledged Collateral, other than pursuant to a transaction permitted by the
Credit Agreement and other than Permitted Liens and (iv) subject to the rights of such Pledgor under the Loan Documents to dispose of Pledged Collateral, will use commercially reasonable efforts to defend its title or interest hereto or therein
against any and all Liens (other than Permitted Liens), however arising, of all persons; 
 (d) other than as set forth in the Credit
Agreement or the schedules thereto, and except for restrictions and limitations imposed by the Loan Documents or securities laws generally or otherwise permitted to exist pursuant to the terms of the Credit Agreement, the Pledged Stock (other than
partnership interests) is and will continue to be freely transferable and assignable, and none of the Pledged Stock is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual
restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Stock hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Administrative Agent of rights and remedies
hereunder; 
 (e) each Pledgor has the power and authority to pledge the Pledged Collateral pledged by it hereunder in the manner hereby done
or contemplated; 
 (f) other than as set forth in the Credit Agreement or the schedules thereto, no consent or approval of any Governmental
Authority, any securities exchange or any other person was or is necessary to the validity of the pledge effected hereby (other than such as have been obtained and are in full force and effect); 
 (g) by virtue of the execution and delivery by the Pledgors of this Agreement and the Foreign Pledge Agreements, when any Pledged Securities (including
Pledged Stock of any Domestic Subsidiary or any foreign stock covered by a Foreign Pledge Agreement) are delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, in accordance with this Agreement and a financing
statement covering such Pledge Securities is filed in the appropriate filing office, the Administrative Agent will obtain, for the ratable benefit of the Secured Parties, a legal, valid and perfected lien upon and security interest in such Pledged
Securities under the New York UCC, subject only to Liens permitted under the Credit Agreement, as security for the payment and performance of the Obligations; 
 (h) each Pledgor that is an issuer of the Pledged Collateral confirms that is has received notice of the security interest granted hereunder; 
 (i) as of the Closing Date, none of the Equity Interests in limited liability companies or partnerships that is pledged by the Pledgors hereunder
constitutes a security under 

  

 11 








 
Section 8-103 of the New York UCC or the corresponding code or statute of any other applicable jurisdiction; and 
 (j) the Pledgors shall not amend, or permit to be amended, the limited liability company agreement (or operating agreement or similar agreement) or
partnership agreement of any Subsidiary of any Loan Party whose Equity Interests are, or are required to be, Collateral in a manner to cause such Equity Interests to constitute a security under Section 8-103 of the New York UCC or the
corresponding code or statute of any other applicable jurisdiction unless such Loan Party shall have first delivered 10 days written notice to the Administrative Agent and shall have taken all actions contemplated hereby and as otherwise reasonably
required by the Administrative Agent to maintain the security interest of the Administrative Agent therein as a valid, perfected, first priority security interest. 
 Section 3.04. Registration in Nominee Name; Denominations. The Administrative Agent, on behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged Securities
in the name of the applicable Pledgor, endorsed or assigned in blank or in favor of the Administrative Agent or, if an Event of Default shall have occurred and be continuing, in its own name as pledgee or the name of its nominee (as pledgee or as
sub-agent). Each Pledgor will promptly give to the Administrative Agent copies of any notices or other communications received by it with respect to Pledged Securities registered in the name of such Pledgor. If an Event of Default shall have
occurred and be continuing, the Administrative Agent shall have the right to exchange the certificates representing Pledged Securities for certificates of smaller or larger denominations for any purpose consistent with this Agreement. Each Pledgor
shall use its commercially reasonable efforts to cause any Loan Party that is not a party to this Agreement to comply with a request by the Administrative Agent, pursuant to this Section 3.04, to exchange certificates representing Pledged
Securities of such Loan Party for certificates of smaller or larger denominations. 
 Section 3.05. Voting Rights; Dividends and Interest,
Etc. (a) Unless and until an Event of Default shall have occurred and be continuing and the Administrative Agent shall have given notice to the relevant Pledgors of the Administrative Agent’s intention to exercise its rights hereunder:

 (i) Each Pledgor shall be entitled to exercise any and all voting and/or other consensual rights and powers inuring to an
owner of Pledged Collateral or any part thereof for any purpose consistent with the terms of this Agreement, the Credit Agreement and the other Loan Documents; provided, that, except as permitted under the Credit Agreement, such rights and
powers shall not be exercised in any manner that could materially and adversely affect the rights inuring to a holder of any Pledged Collateral, the rights and remedies of any of the Administrative Agent or the other Secured Parties under this
Agreement, the Credit Agreement or any other Loan Document or the ability of the Secured Parties to exercise the same. 
 (ii)
The Administrative Agent shall promptly execute and deliver to each Pledgor, or cause to be executed and delivered to such Pledgor, all such proxies, powers of attorney and other instruments as such Pledgor may reasonably request for the purpose


  

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of enabling such Pledgor to exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to subparagraph (i) above.

 (iii) Each Pledgor shall be entitled to receive and retain any and all dividends, interest, principal and other
distributions paid on or distributed in respect of the Pledged Collateral to the extent and only to the extent that such dividends, interest, principal and other distributions are permitted by, and otherwise paid or distributed in accordance with,
the terms and conditions of the Credit Agreement, the other Loan Documents and applicable laws; provided, that (A) any noncash dividends, interest, principal or other distributions, payments or other consideration in respect thereof,
including any rights to receive the same to the extent not so distributed or paid, that would constitute Pledged Securities, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of
any Pledged Securities, received in exchange for Pledged Securities or any part thereof, or in redemption thereof, as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise or
(B) any non-cash dividends and other distributions paid or payable in respect of any Pledged Securities that would constitute Pledged Securities in connection with a partial or total liquidation or dissolution or in connection with a reduction
of capital, capital surplus or paid in surplus, shall be and become part of the Pledged Collateral, and, if received by any Pledgor, shall not be commingled by such Pledgor with any of its other funds or property but shall be held separate and apart
therefrom, shall be held in trust for the benefit of the Administrative Agent, for the ratable benefit of the Secured Parties, and shall be forthwith delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, in the same
form as so received (endorsed in a manner reasonably satisfactory to the Administrative Agent). 
 (b) Upon the occurrence and during the
continuance of an Event of Default and after notice by the Administrative Agent to the Borrower of the Administrative Agent’s intention to exercise its rights hereunder, all rights of any Pledgor to dividends, interest, principal or other
distributions that such Pledgor is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.05 shall cease, and all such rights shall thereupon become vested, for the ratable benefit of the Secured Parties, in the Administrative
Agent which shall have the sole and exclusive right and authority to receive and retain such dividends, interest, principal or other distributions; provided, however, that even after the occurrence of an Event of Default, any Pledgor may
continue to exercise dividend and distribution rights solely to the extent permitted under subclause (i), subclause (iii) and subclause (v) of Section 6.06(b) of the Credit Agreement. All dividends, interest, principal or other
distributions received by any Pledgor contrary to the provisions of this Section 3.05 shall not be commingled by such Pledgor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the
benefit of the Administrative Agent, for the ratable benefit of the Secured Parties, and shall be forthwith delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, in the same form as so received (endorsed in a manner
reasonably satisfactory to the Administrative Agent). Any and all money and other property paid over to or received by the Administrative Agent pursuant to the provisions of this paragraph (b) shall be retained by the Administrative Agent in an
account to be established by the Administrative Agent upon receipt of such money or other property and shall be applied in accordance with the provisions of Section 5.02 hereof. After all Events of Default have been cured or waived and the
Borrower has delivered to the 

  

 13 








 
Administrative Agent a certificate to that effect, the Administrative Agent shall promptly release to each Pledgor (without interest) all dividends,
interest, principal or other distributions that such Pledgor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.05 and that remain in such account. 
 (c) Upon the occurrence and during the continuance of an Event of Default and after notice by the Administrative Agent to the Borrower of the
Administrative Agent’s intention to exercise its rights hereunder, all rights of any Pledgor to exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 3.05, and the
obligations of the Administrative Agent under paragraph (a)(ii) of this Section 3.05, shall cease, and all such rights shall thereupon become vested in the Administrative Agent, for the ratable benefit of the Secured Parties, which shall have
the sole and exclusive right and authority to exercise such voting and consensual rights and powers; provided that, unless otherwise directed by the Required Lenders, the Administrative Agent shall have the right from time to time following
and during the continuance of an Event of Default to permit the Pledgors to exercise such rights. After all Events of Default have been cured or waived and the Borrower has delivered to the Administrative Agent a certificate to that effect, each
Pledgor shall have the right to exercise the voting and/or consensual rights and powers that such Pledgor would otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i) above. 
 ARTICLE IV 
 SECURITY INTERESTS IN OTHER
PERSONAL PROPERTY 
 Section 4.01. Security Interest. (a) As security for the payment or performance when due (whether at the
stated maturity, by acceleration or otherwise), as the case may be, in full of its Obligations, each Pledgor hereby assigns and pledges to the Administrative Agent, its successors and permitted assigns, for the ratable benefit of the Secured
Parties, and hereby grants to the Administrative Agent, its successors and permitted assigns, for the ratable benefit of the Secured Parties, a security interest (the “Security Interest”) in all right, title and interest in or to
any and all of the following assets and properties now owned or at any time hereafter acquired by such Pledgor or in which such Pledgor now has or at any time in the future may acquire any right, title or interest (collectively, the “Article
9 Collateral”): 
 (i) all Accounts; 
 (ii) all Chattel Paper; 
 (iii) all cash and Deposit Accounts; 
 (iv) all Documents; 
 (v) all Equipment; 
 (vi) all General Intangibles; 
  

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 (vii) all Instruments; 
 (viii) all Inventory; 
 (ix) all Investment Property; 
 (x) all Letter of Credit Rights; 
 (xi) all Commercial Tort Claims; 
 (xii) (1) Securities Accounts, (2) Financial Assets credited to Securities Accounts or Deposit Accounts from time to time and all Security Entitlements in respect thereof, (3) all cash held any Securities
Account or Deposit Account and (4) all other money in the possession of the Administrative Agent; 
 (xiii) all timber to
be cut; 
 (xiv) all other personal property not otherwise described above (except for property specifically excluded from any
defined term used in any of the foregoing clauses); 
 (xv) all books and records pertaining to the Article 9 Collateral; and

 (xvi) to the extent not otherwise included, all proceeds, Supporting Obligations and products of any and all of the
foregoing and all collateral security and guarantees given by any person with respect to any of the foregoing. 
 Notwithstanding anything to the contrary in
this Agreement, this Agreement shall not constitute a grant of a security interest in (a) any vehicle covered by a certificate of title or ownership, whether now owned or hereafter acquired, (b) (i) the Bucksport Co-Gen Assets,
(ii) the Excluded Minority Interests, (iii) any Equity Interests acquired after the Closing Date in a Person that is not a Subsidiary if, and to the extent that, and for so long as, a grant of a security interest in such Equity Interests
would violate applicable law or an enforceable contractual obligation binding on or relating to such Equity Interests (if such obligation exited at the time of acquisition of such Equity Interests and was not created or made binding on such Equity
Interests in contemplation of or in connection with the acquisition of such Equity Interests), and (iv) any assets acquired after the Closing Date to the extent that, and for so long as, granting a security interest in such assets would violate
an enforceable contractual obligation binding on such assets that existed at the time of acquisition thereof and was not created or made binding on such assets in contemplation or in connection with the acquisition of such assets (except in the case
of assets acquired with Indebtedness pursuant to Section 6.01(i) of the Credit Agreement that is secured by a Permitted Lien), (c) any property excluded from the definition of Pledged Collateral by virtue of the proviso to
Section 3.01 hereof (other than Section 3.01(a)(iv)), (d) any Letter of Credit Rights to the extent any Pledgor is required by applicable law to apply the proceeds of a drawing of such Letter of Credit for a specified purpose or
(e) any Pledgor’s right, title or interest in any license, contract or agreement to which such Pledgor is a party or any of its right, title or interest thereunder to the extent, but only to the extent, that such a grant would, under the
terms of such license, contract or agreement, result in a breach of the terms of, or constitute a default 

  

 15 








 
under, or result in the abandonment, invalidation or unenforceability of, any license, contract or agreement to which such Pledgor is a party (other than to
the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the New York UCC or any other applicable law (including, without limitation, Title 11 of the United States Code) or principles of
equity); provided, that immediately upon the ineffectiveness, lapse or termination of any such provision, the Collateral shall include, and such Pledgor shall be deemed to have granted a security interest in, all such rights and interests as
if such provision had never been in effect. 
 (b) Each Pledgor hereby irrevocably authorizes the Administrative Agent at any time and from
time to time to file in any relevant jurisdiction any financing statements (including fixture filings and filings with respect to timber to be cut) with respect to the Article 9 Collateral or any part thereof and amendments thereto that contain the
information required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment, including (i) whether such Pledgor is an organization, the type of organization and any
organizational identification number issued to such Pledgor, (ii) in the case of a financing statement filed as a fixture filing, a sufficient description of the real property to which such Article 9 Collateral relates and (iii) a
description of collateral that describes such property in any other manner as the Administrative Agent may reasonably determine is necessary or advisable to ensure the perfection of the security interest in the Article 9 Collateral granted under
this Agreement, including describing such property as “all assets” or “all property”. Each Pledgor agrees to provide such information to the Administrative Agent promptly upon request, including providing within 30 days of any
reasonable request therefor legal descriptions of real property (other than real property subject to a Mortgage) on which timber to be cut of such Pledgor is located. 
 The Administrative Agent is further authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office) such documents as may be reasonably necessary or
advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each Pledgor, without the signature of any Pledgor, and naming any Pledgor or the Pledgors as debtors and the Administrative
Agent as secured party. Notwithstanding anything to the contrary herein, no Pledgor shall be required to take any action under the laws of any jurisdiction other than the United States (or any political subdivision thereof) and its territories and
possessions for the purpose of perfecting the Security Interest in any Article 9 Collateral of such Pledgor constituting Patents, Trademarks or Copyrights. 
 (c) The Security Interest is granted as security only and shall not subject the Administrative Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Pledgor with
respect to or arising out of the Article 9 Collateral. 
 (d) Notwithstanding anything to the contrary in this Agreement or the Credit
Agreement, none of the Pledgors shall be required to enter into any Control Agreement with respect to any cash or Deposit Account or (except as otherwise provided in Section 4.04(b)) any Securities Account. 
  

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 Section 4.02. Representations and Warranties. The Pledgors jointly and severally represent and
warrant to the Administrative Agent and the Secured Parties that: 
 (a) Each Pledgor has good and valid rights in and title to the Article 9
Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Administrative Agent the Security Interest in such Article 9 Collateral pursuant hereto and to execute, deliver
and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person other than any consent or approval that has been obtained and is in full force and effect or has otherwise been disclosed
herein or in the Credit Agreement. 
 (b) The information set forth in the Schedules attached hereto is correct and complete, in all material
respects, as of the Closing Date. The Uniform Commercial Code financing statements (including fixture filings, as applicable) or other appropriate filings, recordings or registrations containing a description of the Article 9 Collateral that have
been prepared by the Administrative Agent for filing in each governmental, municipal or other office specified in Schedule IV (or specified by notice from the Borrower to the Administrative Agent after the Closing Date in the case of filings,
recordings or registrations required by Section 5.10 of the Credit Agreement) and in each relevant governmental, municipal or other office pertaining to real property for which a legal description is provided pursuant to Section 4.01(b)
constitute all the filings, recordings and registrations (except to the extent that filings are required to be made in the United States Patent and Trademark Office and the United States Copyright Office, or any similar office in any other
jurisdiction, in order to perfect the Security Interest in Article 9 Collateral consisting of United States Patents, United States registered Trademarks and United States registered Copyrights) that are necessary to publish notice of and protect the
validity of and to establish a legal, valid and perfected security interest in favor of the Administrative Agent (for the ratable benefit of the Secured Parties) in respect of all Article 9 Collateral in which the Security Interest may be perfected
by filing, recording or registration in the United States (or any political subdivision thereof) and its territories and possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary
in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation statements or amendments. Each Pledgor represents and warrants that a fully executed Intellectual Property Security Agreement containing a
description of all Article 9 Collateral consisting of Intellectual Property with respect to United States Patents (and Patents for which United States applications are pending), United States registered Trademarks (and Trademarks for which United
States registration applications are pending) and United States registered Copyrights (and Copyrights for which United States registration applications are pending) has been delivered to the Administrative Agent for recording with the United States
Patent and Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable, and reasonably requested by the Administrative Agent,
to protect the validity of and to establish a legal, valid and perfected security interest in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, in respect of all Article 9 Collateral consisting of such Intellectual
Property in which a security interest may be perfected by recording with the United States Patent and Trademark Office and the United States Copyright Office, and no further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary (other than the Uniform Commercial Code financings statements referred to above, and other than such actions as are 

  

 17 








 
necessary to perfect the Security Interest with respect to any Article 9 Collateral consisting of United States Patents, Trademarks and Copyrights (or
registration or application for registration thereof) acquired or developed after the date hereof). 
 (c) The Security Interest constitutes
(i) a legal and valid security interest in all the Article 9 Collateral securing the payment and performance of the Obligations, (ii) subject to the filings described in Section 4.02(b), a perfected security interest in all Article 9
Collateral in which a security interest may be perfected by filing, recording or registering a financing statement or analogous document in the United States (or any political subdivision thereof) and its territories and possessions pursuant to the
Uniform Commercial Code or other applicable law in such jurisdictions and (iii) a security interest that shall be perfected in all Article 9 Collateral in which a security interest may be perfected upon the receipt and recording of the
Intellectual Property Security Agreement with the United States Patent and Trademark Office and the United States Copyright Office, as applicable. The Security Interest is and shall be prior to any other Lien on any of the Article 9 Collateral other
than Permitted Liens. 
 (d) The Article 9 Collateral is owned by the Guarantors free and clear of any Lien, other than Permitted Liens. None
of the Pledgors has filed or consented to the filing of (i) any financing statement or analogous document under the Uniform Commercial Code or any other applicable laws covering any Article 9 Collateral, (ii) any assignment in which any
Pledgor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral with the United States Patent and Trademark Office or the United States Copyright Office or (iii) any assignment in which
any Pledgor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral with any foreign governmental, municipal or other office, which financing statement or analogous document, assignment,
security agreement or similar instrument is still in effect, except, in each case, for Permitted Liens. 
 (e) None of the Pledgors holds any
Commercial Tort Claim individually in excess of $2.0 million as of the Closing Date except as indicated on Schedule V. 
 (f) Except as set
forth in Schedule VI, as of the Closing Date, all Accounts have been originated by the Pledgors and all Inventory has been produced or acquired by the Pledgors in the ordinary course of business. 
 (g) As to itself and its Article 9 Collateral consisting of Intellectual Property (the “Intellectual Property Collateral”), to the best
of each Pledgor’s knowledge: 
 (i) The Intellectual Property Collateral set forth on Schedule III includes all of
the material Patents, Trademarks, Copyrights and IP Agreements owned by such Pledgor as of the date hereof. 
 (ii) The
Intellectual Property Collateral is subsisting and, to the best of such Pledgor’s knowledge, has not been adjudged invalid or unenforceable in whole or part (except for office actions issued in the ordinary course by the United States Patent
and Trademark Office or any similar office in any foreign jurisdiction), and to the best of such Pledgor’s knowledge, is valid and enforceable, except as would not reasonably be 

  

 18 








 
expected to have a Material Adverse Effect. Such Pledgor is not aware of any uses of any item of Intellectual Property Collateral that would be expected to
lead to such item becoming invalid or unenforceable, except as would not reasonably be expected to have a Material Adverse Effect. 
 (iii) Such Pledgor has made or performed all commercially reasonable acts, including without limitation filings, recordings and payment of all required fees and taxes, required to maintain and protect its interest in each and every item of
Intellectual Property Collateral in full force and effect in the United States and such Pledgor has used proper statutory notice in connection with its use of each Patent, Trademark and Copyright in the Intellectual Property Collateral, in each
case, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect. 
 (iv) With respect to each IP Agreement, the absence, termination or violation of which would reasonably be expected to have a Material Adverse Effect: (A) such Pledgor has not received any notice of termination or cancellation under
such IP Agreement; (B) such Pledgor has not received any notice of a breach or default under such IP Agreement, which breach or default has not been cured or waived; and (C) to the knowledge of such Pledgor, neither such Pledgor nor any
other party to such IP Agreement is in breach or default thereof in any material respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit termination, modification or
acceleration under such IP Agreement. 
 (v) Except as would not reasonably be expected to have a Material Adverse Effect, no
Pledgor or Intellectual Property Collateral is subject to any outstanding consent, settlement, decree, order, injunction, judgment or ruling restricting the use of any Intellectual Property Collateral or that would impair the validity or
enforceability of such Intellectual Property Collateral. 
 Section 4.03. Covenants. (a) Each Pledgor agrees to provide at least
10 days’ prior written notice to Administrative Agent of any change (i) in its corporate or organization name, (ii) in its identity or type of organization or corporate structure, (iii) in its Federal Taxpayer Identification
Number or organizational identification number or (iv) in its “location” (determined as provided in UCC Section 9-307). Each Pledgor agrees promptly to provide the Administrative Agent with certified organizational documents
reflecting any of the changes described in the immediately preceding sentence. Each Pledgor agrees not to effect or permit any change referred to in the first sentence of this paragraph (a) unless all filings have been made, or will have been
made within any applicable statutory period, under the Uniform Commercial Code or otherwise that are required in order for the Administrative Agent to continue at all times following such change to have a valid, legal and perfected first priority
security interest in all the Article 9 Collateral, for the ratable benefit of the Secured Parties. Each Pledgor agrees promptly to notify the Administrative Agent if any material portion of the Article 9 Collateral owned or held by such Pledgor is
damaged or destroyed. 
 (b) Subject to the rights of such Pledgor under the Loan Documents to dispose of Collateral, each Pledgor shall, at
its own expense, use commercially reasonable efforts to defend title to the Article 9 Collateral against all persons and to defend the Security Interest of 

  

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the Administrative Agent, for the ratable benefit of the Secured Parties, in the Article 9 Collateral and the priority thereof against any Lien that is not a
Permitted Lien. 
 (c) Each Pledgor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Administrative Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the
payment of any fees and taxes required in connection with the execution and delivery of this Agreement and the granting of the Security Interest and the filing of any financing statements (including fixture filings) or other documents in connection
herewith or therewith. If any amount payable under or in connection with any of the Article 9 Collateral that is in excess of $5.0 million shall be or become evidenced by any promissory note or other instrument, such note or instrument shall be
promptly pledged and delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, duly endorsed in a manner reasonably satisfactory to the Administrative Agent. 
 Without limiting the generality of the foregoing, each Pledgor hereby authorizes the Administrative Agent, with prompt notice thereof to the Pledgors, to
supplement this Agreement by supplementing Schedule III or adding additional schedules hereto to specifically identify any asset or item that may constitute material Copyrights, Patents, Trademarks, Copyright Licenses, Patent Licenses or
Trademark Licenses; provided that any Pledgor shall have the right, exercisable within 30 days after the Borrower has been notified by the Administrative Agent of the specific identification of such Article 9 Collateral, to advise the
Administrative Agent in writing of any inaccuracy of the representations and warranties made by such Pledgor hereunder with respect to such Article 9 Collateral. Each Pledgor agrees that it will use its commercially reasonable efforts to take such
action as shall be necessary in order that all representations and warranties hereunder shall be true and correct with respect to such Article 9 Collateral within 30 days after the date it has been notified by the Administrative Agent of the
specific identification of such Article 9 Collateral. 
 (d) After the occurrence of an Event of Default and during the continuance thereof,
the Administrative Agent shall have the right to verify under reasonable procedures the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, the Article 9 Collateral, including, in the case of
Accounts or Article 9 Collateral in the possession of any third person, by contacting Account Debtors or the third person possessing such Article 9 Collateral for the purpose of making such a verification. The Administrative Agent shall have the
right to share any information it gains from such inspection or verification with any Secured Party. 
 (e) At its option, the Administrative
Agent may discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9 Collateral and not a Permitted Lien, and may pay for the maintenance and preservation of
the Article 9 Collateral to the extent any Pledgor fails to do so as required by the Credit Agreement or this Agreement, and each Pledgor jointly and severally agrees to reimburse the Administrative Agent on demand for any reasonable payment made or
any reasonable expense incurred by the Administrative Agent pursuant to the foregoing authorization; provided, however, that nothing in this Section 4.03(e) shall be interpreted as excusing any Pledgor from 

  

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the performance of, or imposing any obligation on the Administrative Agent or any Secured Party to cure or perform, any covenants or other promises of any
Pledgor with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents. 
 (f) Each Pledgor (rather than the Administrative Agent or any Secured Party) shall remain liable for the observance and performance of all the conditions
and obligations to be observed and performed by it under each contract, agreement or instrument relating to the Article 9 Collateral and each Pledgor jointly and severally agrees to indemnify and hold harmless the Administrative Agent and the
Secured Parties from and against any and all liability for such performance. 
 (g) None of the Pledgors shall make or permit to be made an
assignment, pledge or hypothecation of the Article 9 Collateral or shall grant any other Lien in respect of the Article 9 Collateral, except as permitted by the Credit Agreement and the other provisions hereof. None of the Pledgors shall make or
permit to be made any transfer of the Article 9 Collateral and each Pledgor shall remain at all times in possession of the Article 9 Collateral owned by it, except as permitted by the Credit Agreement and the other provisions hereof. 
 (h) None of the Pledgors will, without the Administrative Agent’s prior written consent (which consent shall not be unreasonably withheld), grant
any extension of the time of payment of any Accounts included in the Article 9 Collateral, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any person liable for the payment thereof or allow
any credit or discount whatsoever thereon, other than extensions, credits, discounts, compromises or settlements granted or made in the ordinary course of business and consistent with prudent business practices or as otherwise permitted under the
Credit Agreement. 
 (i) Each Pledgor irrevocably makes, constitutes and appoints the Administrative Agent (and all officers, employees or
agents designated by the Administrative Agent) as such Pledgor’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance of an Event of Default, of making, settling and adjusting claims in respect of Article 9
Collateral under policies of insurance, endorsing the name of such Pledgor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto.
In the event that any Pledgor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the Administrative Agent may, without waiving or releasing
any obligation or liability of the Pledgors hereunder or any Event of Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the Administrative Agent
reasonably deems advisable. All sums disbursed by the Administrative Agent in connection with this Section 4.03(i), including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon
demand, by the Pledgors to the Administrative Agent and shall be additional Obligations secured hereby. 
 Section 4.04. Other
Actions. In order to further ensure the attachment, perfection and priority of, and the ability of the Administrative Agent to enforce, for the ratable 

  

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benefit of the Secured Parties, the Administrative Agent’s security interest in the Article 9 Collateral, each Pledgor agrees, in each case at such
Pledgor’s own expense, to take the following actions with respect to the following Article 9 Collateral: 
 (a) Instruments and
Tangible Chattel Paper. If any Pledgor shall at any time hold or acquire any Instruments (other than checks received and processed in the ordinary course of business) or Tangible Chattel Paper evidencing an amount in excess of $5.0 million, such
Pledgor shall forthwith endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the Administrative Agent may from time to time reasonably request.

 (b) Investment Property. Except to the extent otherwise provided in Article III, if any Pledgor shall at any time hold or
acquire any Certificated Security constituting Pledged Collateral or Article 9 Collateral, such Pledgor shall forthwith endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Administrative Agent may from time to time reasonably specify. If any security of a domestic issuer now owned or hereafter acquired by any Pledgor is uncertificated and is issued to such Pledgor or its nominee directly by
the issuer thereof, such Pledgor shall promptly notify the Administrative Agent of such uncertificated securities and (i) upon the Administrative Agent’s reasonable request or (ii) upon the occurrence and during the continuance of an
Event of Default, such Pledgor shall pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, either (i) cause the issuer to agree to comply with instructions from the Administrative Agent as to such
security, without further consent of any Pledgor or such nominee, or (ii) cause the issuer to register the Administrative Agent as the registered owner of such security. If any security or other Investment Property, whether certificated or
uncertificated, representing an Equity Interest in a third party and having a fair market value in excess of $5.0 million now or hereafter acquired by any Pledgor is held by such Pledgor or its nominee through a securities intermediary or commodity
intermediary, such Pledgor shall promptly notify the Administrative Agent thereof and, at the Administrative Agent’s request and option, pursuant to a Control Agreement in form and substance reasonably satisfactory to the Administrative Agent,
either (A) cause such securities intermediary or commodity intermediary, as applicable, to agree, in the case of a securities intermediary, to comply with entitlement orders or other instructions from the Administrative Agent to such securities
intermediary as to such securities or other Investment Property or, in the case of a commodity intermediary, to apply any value distributed on account of any commodity contract as directed by the Administrative Agent to such commodity intermediary,
in each case without further consent of any Pledgor or such nominee, or (B) in the case of Financial Assets or other Investment Property held through a securities intermediary, arrange for the Administrative Agent to become the entitlement
holder with respect to such Investment Property, for the ratable benefit of the Secured Parties, with such Pledgor being permitted, only with the consent of the Administrative Agent, to exercise rights to withdraw or otherwise deal with such
Investment Property. The Administrative Agent agrees with each of the Guarantors that the Administrative Agent shall not give any such entitlement orders or instructions or directions to any such issuer, securities intermediary or commodity
intermediary, and shall not withhold its consent to the exercise of any withdrawal or dealing rights by any Pledgor, unless an Event of Default has occurred and is continuing or, after giving effect to any such withdrawal or dealing rights, would


  

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occur. The provisions of this paragraph (b) shall not apply to any Financial Assets credited to a Securities Account for which the Administrative Agent
is the securities intermediary. 
 (c) Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a Commercial Tort
Claim in an amount reasonably estimated to exceed $2.0 million, such Pledgor shall promptly notify the Administrative Agent thereof in a writing signed by such Pledgor, including a summary description of such claim, and grant to the Administrative
Agent in writing a security interest therein and in the proceeds thereof, all under the terms and provisions of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Administrative Agent. 
 Section 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. Except as permitted by the Credit Agreement: (a) Each Pledgor
agrees that it will not knowingly do any act or omit to do any act (and will exercise commercially reasonable efforts to prevent its licensees from doing any act or omitting to do any act) whereby any Patent that is material to the normal conduct of
such Pledgor’s business may become prematurely invalidated, abandoned, lapsed or dedicated to the public, and agrees that it shall take commercially reasonable steps with respect to any material products covered by any such Patent as necessary
and sufficient to establish and preserve its rights under applicable patent laws. 
 (b) Each Pledgor will, and will use its commercially
reasonable efforts to cause its licensees or its sublicensees to, for each material Trademark necessary to the normal conduct of such Pledgor’s business, (i) maintain such Trademark in full force free from any adjudication of abandonment
or invalidity for non-use, (ii) maintain the quality of products and services offered under such Trademark, (iii) display such Trademark with notice of federal or foreign registration or claim of trademark or service mark as required under
applicable law and (iv) not knowingly use or knowingly permit its licensees’ use of such Trademark in violation of any third-party rights. 
 (c) Each Pledgor will, and will use its commercially reasonable efforts to cause its licensees or its sublicensees to, for each work covered by a material Copyright necessary to the normal conduct of such
Pledgor’s business that it publishes, displays and distributes, use a copyright notice as provided by applicable copyright laws. 
 (d)
Each Pledgor shall notify the Administrative Agent promptly if it knows that any Patent, Trademark or Copyright material to the normal conduct of such Pledgor’s business may imminently become abandoned, lapsed or dedicated to the public, or of
any materially adverse determination or development, excluding office actions and similar determinations or developments in the United States Patent and Trademark Office, United States Copyright Office, any court or any similar office of any
country, regarding such Pledgor’s ownership of any such material Patent, Trademark or Copyright or its right to register or to maintain the same. 
 (e) Each Pledgor, either itself or through any agent, employee, licensee or designee, shall (i) inform the Administrative Agent on an annual basis of each application by itself, or through any agent, employee,
licensee or designee, for any Patent with the United States Patent and Trademark Office and each registration of any Trademark or Copyright with the 

  

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United States Patent and Trademark Office, the United States Copyright Office or any comparable office or agency in any other country filed during the
preceding twelve-month period, and (ii) upon the reasonable request of the Administrative Agent, execute and deliver any and all agreements, instruments, documents and papers as the Administrative Agent may reasonably request to evidence the
Administrative Agent’s security interest in such Patent, Trademark or Copyright. 
 (f) Each Pledgor shall exercise its reasonable
business judgment consistent with the practice in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any comparable office or agency in any other country with respect to maintaining and
pursuing each application relating to any Patent, Trademark and/or Copyright (and obtaining the relevant grant or registration) material to the normal conduct of such Pledgor’s business and to maintain (i) each issued Patent and
(ii) the registrations of each Trademark and each Copyright that is material to the normal conduct of such Pledgor’s business, including, when applicable and necessary in such Pledgor’s reasonable business judgment, timely filings of
applications for renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if any Pledgor believes necessary in its reasonable business judgment, to initiate opposition, interference and cancellation
proceedings against third parties. 
 (g) In the event that any Pledgor knows or has reason to know that any Article 9 Collateral
consisting of a Patent, Trademark or Copyright material to the normal conduct of its business has been or is about to be materially infringed, misappropriated or diluted by a third party, such Pledgor shall promptly notify the Administrative Agent
and shall, if such Pledgor deems it necessary in its reasonable business judgment, promptly sue and recover any and all damages, and take such other actions as are reasonably appropriate under the circumstances. 
 ARTICLE V 
 REMEDIES 
 Section 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, each Pledgor agrees to deliver each
item of Collateral to the Administrative Agent on demand, and it is agreed that the Administrative Agent shall have the right to take any of or all the following actions at the same or different times: (a) with respect to any Article 9
Collateral consisting of Intellectual Property, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable Pledgors to the Administrative Agent or to
license or sublicense, whether general, special or otherwise, and whether on an exclusive or a nonexclusive basis, any such Article 9 Collateral throughout the world on such terms and conditions and in such manner as the Administrative Agent shall
determine (other than in violation of any then-existing licensing arrangements to the extent that waivers thereunder cannot be obtained with the use of commercially reasonable efforts, which each Pledgor hereby agrees to use) and (b) with or
without legal process and with or without prior notice or demand for performance, to take possession of the Article 9 Collateral and without liability for trespass to the applicable Pledgor 

  

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to enter any premises where the Article 9 Collateral may be located for the purpose of taking possession of or removing the Article 9 Collateral and,
generally, to exercise any and all rights afforded to a secured party under the applicable Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing, each Pledgor agrees that the Administrative Agent shall
have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit
or for future delivery as the Administrative Agent shall deem appropriate. The Administrative Agent shall be authorized in connection with any sale of a security (if it deems it advisable to do so) pursuant to the foregoing to restrict the
prospective bidders or purchasers to persons who represent and agree that they are purchasing such security for their own account, for investment, and not with a view to the distribution or sale thereof. Upon consummation of any such sale of
Collateral pursuant to this Section 5.01 the Administrative Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold. Each such purchaser at any such sale shall hold the property
sold absolutely, free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives and releases (to the extent permitted by law) all rights of redemption, stay, valuation and appraisal that such Pledgor now has or may at any
time in the future have under any rule of law or statute now existing or hereafter enacted. 
 The Administrative Agent shall, except in the
case of Collateral that is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, give the applicable Pledgors 10 Business Days’ written notice (which each Pledgor agrees is reasonable
notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Administrative Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state the
time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will first be
offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Administrative Agent may fix and state in the notice (if any) of such sale. At any
such sale, the Collateral, or the portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Administrative Agent may (in its sole and absolute discretion) determine. The Administrative Agent shall not be
obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Administrative Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In the case of any
sale of all or any part of the Collateral made on credit or for future delivery, the Collateral so sold may be retained by the Administrative Agent until the sale price is paid by the purchaser or purchasers thereof, but the Administrative Agent
shall not incur any liability in the event that any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in the case of any such failure, such Collateral may be sold again upon notice given in accordance with
provisions above. At any public (or, to the extent permitted by law, private) sale made pursuant to this Section 5.01, any Secured Party may bid for or purchase for cash, free (to the extent permitted by law) from any right of redemption, stay,
valuation or appraisal on the part of any Pledgor (all such rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and 

  

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such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property in accordance with Section 5.02 hereof without
further accountability to any Pledgor therefor. For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Administrative Agent shall be free to carry out such sale pursuant to
such agreement and no Pledgor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Administrative Agent shall have entered into such an agreement all Events of Default
shall have been remedied and the Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Administrative Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and to
sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 5.01
shall be deemed to conform to the commercially reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions. 
 Section 5.02. Application of Proceeds. The Administrative Agent shall promptly apply the proceeds, moneys or balances of any collection or sale of Collateral, as well as any Collateral consisting of cash, as
follows: 
 FIRST, to the payment of all costs and expenses incurred by the Administrative Agent in connection with such collection or sale or
otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including without limitation all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the
Administrative Agent hereunder or under any other Loan Document on behalf of any Pledgor, any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document, and all other fees,
indemnities and other amounts owing or reimbursable to the Administrative Agent under any Loan Document in its capacity as such; 
 SECOND, to
payment of all fees, indemnities and other amounts (other than principal and interest) payable to the Issuing Bank in its capacity as such and of any amount required to be paid to the Issuing Bank by any Revolving Facility Lender pursuant to
Section 2.05(d), (e)(ii) and (h) of the Credit Agreement and not paid by such Revolving Facility Lender (which shall be payable to the Administrative Agent if the Administrative Agent advanced such payment to the
Issuing Bank in anticipation of such payment by such Revolving Facility Lender and otherwise, to the Issuing Bank); 
 THIRD, to the payment
in full of the Obligations (the amounts so applied to be (i) allocated between principal (or equivalent) and interest in the absolute discretion of the Administrative Agent and (ii) distributed among the Secured Parties pro rata in
accordance with the respective amounts of the Obligations owed to them on the date of any such distribution, which in the case of Letters of Credit, shall be paid by deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Issuing Bank and the Lenders, an amount in cash in U.S. Dollars equal to the aggregate Revolving L/C Exposure as of such date plus any accrued and unpaid interest thereon); and 
 FOURTH, to the Pledgors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct. 
  

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 The Administrative Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or
balances in accordance with this Agreement. Upon any sale of Collateral by the Administrative Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by the Administrative
Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Administrative Agent or such officer or be answerable in any way for the misapplication thereof. 
 Section 5.03. Securities
Act, Etc. In view of the position of the Pledgors in relation to the Pledged Collateral, or because of other current or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar
federal statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged
Collateral permitted hereunder. Each Pledgor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Administrative Agent if the Administrative Agent were to attempt to dispose of all or
any part of the Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations
affecting the Administrative Agent in any attempt to dispose of all or part of the Pledged Collateral under applicable Blue Sky or other state securities laws or similar laws analogous in purpose or effect. Each Pledgor acknowledges and agrees that
in light of such restrictions and limitations, the Administrative Agent, in its sole and absolute discretion, (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or
part thereof shall have been filed under the Federal Securities Laws or, to the extent applicable, Blue Sky or other state securities laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Pledgor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Administrative Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that the Administrative Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. The provisions of this Section 5.03 will apply
notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the Administrative Agent sells. 
 ARTICLE VI 
 INDEMNITY, SUBROGATION AND SUBORDINATION 
 Section 6.01. Indemnity. In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject
to Section 6.03 hereof), the Borrower agrees that (a) in the event a payment shall be made by any Guarantor 

  

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under this Agreement in respect of any Obligation of the Borrower, the Borrower shall indemnify such Guarantor for the full amount of such payment and such
Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of any Guarantor shall be sold pursuant to this Agreement or any other Security
Document to satisfy in whole or in part an Obligation of the Borrower, the Borrower shall indemnify such Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold. 
 Section 6.02. Contribution and Subrogation. Each Guarantor (other than Holdings and the Borrower) (a “Contributing Guarantor”)
agrees (subject to Section 6.03 hereof) that, in the event a payment shall be made by any other Guarantor (other than Holdings and the Borrower) hereunder in respect of any Obligation or assets of any other Guarantor (other than Holdings and
the Borrower) shall be sold pursuant to any Security Document to satisfy any Obligation owed to any Secured Party and such other Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Borrower as provided
in Section 6.01 hereof, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as applicable, in each case
multiplied by a fraction of which the numerator shall be the net worth of such Contributing Guarantor on the date hereof and the denominator shall be the aggregate net worth of all the Guarantors on the date hereof (or, in the case of any Guarantor
becoming a party hereto pursuant to Section 7.16 hereof, the date of the supplement hereto executed and delivered by such Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 6.02 shall
be subrogated to the rights of such Claiming Guarantor under Section 6.01 hereof to the extent of such payment. 
 Section 6.03.
Subordination. (a) Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors under Sections 6.01 and 6.02 hereof and all other rights of indemnity, contribution or subrogation of the Guarantors
under applicable law or otherwise shall be fully subordinated to the payment in full in cash or immediately available funds of the Obligations (other than contingent indemnity or expense reimbursement obligations in respect of which no claim has
been made). No failure on the part of the Borrower or any Guarantor to make the payments required by Sections 6.01 and 6.02 hereof (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and
liabilities of the Borrower with respect to the Obligations or any Guarantor with respect to its obligations hereunder, and the Borrower shall remain liable for the full amount of the Obligations and each Guarantor shall remain liable for the full
amount of its obligations hereunder. 
 (b) The Borrower and each Guarantor hereby agree that all Indebtedness and other monetary obligations
owed by it to the Borrower, any other Guarantor or any Subsidiary shall be fully subordinated to the payment in full in cash or immediately available funds of the Obligations (other than contingent indemnity or expense reimbursement obligations in
respect of which no claim has been made) to the extent subordination is required pursuant to the provisions of Section 6.01(e) of the Credit Agreement. 
  

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 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.01. Notices. All communications and notices hereunder shall (except as
otherwise permitted herein) be in writing and given as provided in Section 9.01 of the Credit Agreement. All communications and notices hereunder to any Subsidiary Party shall be given to it in care of the Borrower, with such notice to be given
as provided in Section 9.01 of the Credit Agreement. 
 Section 7.02. Security Interest Absolute. All rights of the
Administrative Agent hereunder, the Security Interest in the Article 9 Collateral, the security interest in the Pledged Collateral and all obligations of each Pledgor hereunder shall be absolute and unconditional irrespective of (a) any lack of
validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place
of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument, (c) any
exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations or (d) any other circumstance
that might otherwise constitute a defense available to, or a discharge of, any Pledgor in respect of the Obligations or this Agreement (other than a defense of payment or performance). 
 Section 7.03. Limitation By Law. All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise
thereof does not violate any applicable provision of law, and all the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that
they shall not render this Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
 Section 7.04. Binding Effect; Several Agreement. This Agreement shall become effective as to any party to this Agreement when a counterpart hereof
executed on behalf of such party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such party and the Administrative
Agent and their respective permitted successors and assigns, and shall inure to the benefit of such party, the Administrative Agent and the other Secured Parties and their respective permitted successors and assigns, except that no party shall have
the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated by this Agreement or the Credit Agreement. This
Agreement shall be construed as a separate agreement with respect to each party and may be amended, modified, supplemented, waived or released with respect to any party without the approval of any other party and without affecting the obligations of
any other party hereunder. 
  

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 Section 7.05. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Pledgor or the Administrative Agent that are contained in this Agreement
shall bind and inure to the benefit of their respective permitted successors and assigns; provided that no Pledgor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the
Administrative Agent. The Administrative Agent hereunder shall at all times be the same person that is the Administrative Agent under the Credit Agreement. Written notice of resignation by the Administrative Agent pursuant to the Credit Agreement
shall also constitute notice of resignation as the Administrative Agent under this Agreement. Upon the acceptance of any appointment as the Administrative Agent under the Credit Agreement by a successor Administrative Agent, that successor
Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent pursuant hereto. 
 Section 7.06. Administrative Agent’s Fees and Expenses; Indemnification. (a) The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its expenses incurred
hereunder as provided in Section 9.05 of the Credit Agreement. 
 (b) Without limitation of its indemnification obligations under the
other Loan Documents, each Pledgor jointly and severally agrees to indemnify the Administrative Agent and the other Indemnitees (as defined in Section 9.05 of the Credit Agreement) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including reasonable counsel fees, charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of, (i) the execution,
delivery or performance of this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto and thereto of their respective obligations thereunder or the consummation of
the Transactions and other transactions contemplated hereby, (ii) the use of proceeds of the Loans or the use of any Letter of Credit or (iii) any claim, litigation, investigation or proceeding relating to any of the foregoing, or to the
Collateral, whether or not any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. 
 (c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Security Documents. The provisions of this Section 7.06 shall remain operative and in full force
and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent or any other Secured Party. All amounts due under this Section 7.06 shall be payable on written demand therefor. 
 Section 7.07. Administrative Agent Appointed Attorney-in-Fact. Each Pledgor hereby appoints the Administrative Agent the attorney-in-fact of such
Pledgor for the purpose of 
  

 30 








 
carrying out the provisions of this Agreement and taking any action and executing any instrument that the Administrative Agent may deem necessary or
advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest. The Administrative Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of
substitution either in the Administrative Agent’s name or in the name of such Pledgor, (a) to receive, endorse, assign or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the
Collateral or any part thereof, (b) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to ask for, demand, sue for, collect, receive and give acquittance for any
and all moneys due or to become due under and by virtue of any Collateral; (d) to sign the name of any Pledgor on any invoice or bill of lading relating to any of the Collateral; (e) to send verifications of Accounts to any Account Debtor;
(f) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any
Collateral; (g) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (h) to notify, or to require any Pledgor to notify, Account Debtors to make payment directly to
the Administrative Agent; and (i) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this
Agreement, as fully and completely as though the Administrative Agent were the absolute owner of the Collateral for all purposes; provided, that nothing herein contained shall be construed as requiring or obligating the Administrative Agent
to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Administrative Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or
the moneys due or to become due in respect thereof or any property covered thereby. The Administrative Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of the powers granted to
them herein, and neither they nor their officers, directors, employees or agents shall be responsible to any Pledgor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct. 
 Section 7.08. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 Section 7.09. Waivers; Amendment. (a) No failure or delay by the
Administrative Agent, any Issuing Bank or any Lender in exercising any right, power or remedy hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy,
or any abandonment or discontinuance of steps to enforce such a right, power or remedy, preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and remedies of the Administrative Agent,
any Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights, powers or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 7.09, and then such waiver or consent 
  

 31 








 
shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan
or the issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default or Event of
Default at the time. No notice or demand on any Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Administrative Agent and the Loan Party or Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 9.08 of the Credit Agreement. 

Section 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10. 
 Section 7.11. Severability.
In the event any one or more of the provisions contained in this Agreement or in any other Loan Document should be held 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 or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions. 
 Section 7.12. Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract, and shall become effective as provided in Section 7.04 hereof. Delivery of an executed
counterpart to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed original. 
 Section 7.13.
Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting,
this Agreement. 
 Section 7.14. Jurisdiction; Consent to Service of Process. (a) Each party to this Agreement hereby irrevocably
and unconditionally submits, for itself and its property, to the 
  

 32 








 
nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent, any Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Pledgor, or its properties, in the courts of any jurisdiction. 
 (b) Each party to this Agreement hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 Section 7.15. Termination or Release. (a) This Agreement, the guarantees made herein, the pledges made herein, the Security Interest and all other security interests granted hereby shall terminate when all
the Loan Document Obligations (other than contingent indemnity or expense reimbursement obligations in respect of which no claim has been made) have been paid in full in cash or immediately available funds and the Lenders have no further commitment
to lend under the Credit Agreement, the Revolving L/C Exposure has been reduced to zero and each Issuing Bank has no further obligations to issue Letters of Credit under the Credit Agreement. 
 (b) A Subsidiary Party shall automatically be released from its obligations hereunder and the security interests in the Collateral of such Subsidiary
Party shall be automatically released upon the consummation of any transaction permitted by the Credit Agreement as a result of which such Subsidiary Party ceases to be a Subsidiary of the Borrower or otherwise ceases to be a Guarantor;
provided that such portion of the Lenders as shall be required by the terms of the Credit Agreement to have consented to such transaction (to the extent such consent is required by the Credit Agreement) shall have consented thereto and the
terms of such consent did not provide otherwise. 
 (c) Upon any sale or other transfer by any Pledgor of any Collateral that is permitted
under the Credit Agreement to any person that is not a Pledgor, or upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 9.08 of the Credit Agreement, the
security interest in such Collateral shall be automatically released. 
 (d) In connection with any termination or release pursuant to
paragraph (a), (b) or (c) of this Section 7.15, the Administrative Agent shall execute and deliver to any Pledgor, at such Pledgor’s, expense all documents that such Pledgor shall reasonably request to evidence 

  

 33 








 
such termination or release (including, without limitation, UCC termination statements) and will duly assign and transfer to such Pledgor such of the Pledged
Collateral that may be in the possession of the Administrative Agent and has not theretofore been sold or otherwise applied or released pursuant to this Agreement; provided, that the Administrative Agent shall not be required to take any
action under this Section 7.15(d) unless such Pledgor shall have delivered to the Administrative Agent together with such request, which may be incorporated into such request, (i) a reasonably detailed description of the Collateral, which
in any event shall be sufficient to effect the appropriate termination or release without affecting any other Collateral, and (ii) a certificate of a Responsible Officer of the Borrower or such Pledgor certifying that the transaction giving
rise to such termination or release is permitted by the Credit Agreement and was consummated in compliance with the Loan Documents. Any execution and delivery of documents pursuant to this Section 7.15 shall be without recourse to or warranty
by the Administrative Agent. 
 Section 7.16. Additional Subsidiaries. Upon execution and delivery by the Administrative Agent and any
Subsidiary that is required to become a party hereto by Section 5.10 of the Credit Agreement of an instrument in the form of Exhibit I hereto, such Subsidiary shall become a Subsidiary Party hereunder with the same force and effect as if
originally named as a Subsidiary Party herein. The execution and delivery of any such instrument shall not require the consent of any other party to this Agreement. The rights and obligations of each party to this Agreement shall remain in full
force and effect notwithstanding the addition of any new party to this Agreement. 
 Section 7.17. Right of Set-off. If an Event of
Default shall have occurred and be continuing, each Secured Party is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set-off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing by such Secured Party to or for the credit or the account of any party to this Agreement against any of and all the obligations of such party now or hereafter existing
under this Agreement owed to such Secured Party, irrespective of whether or not Secured Party shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Secured Party under this
Section 7.17 are in addition to other rights and remedies (including other rights of set-off) that such Secured Party may have. 
 [Signature Page Follows] 
  

 34 








 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	 VERSO PAPER FINANCE HOLDINGS LLC

	 VERSO PAPER HOLDINGS LLC

	 VERSO PAPER INC.

	 CMP HOLDINGS LLC

	 CMP ANDROSCOGGIN LLC

	 CMP BUCKSPORT LLC

	 CMP QUINNESEC LLC

	 CMP SARTELL LLC

	 NEXTIER SOLUTIONS CORPORATION

		
	 By:
	 	 /s/ Scott M. Kleinman

		 	 Name: Scott M. Kleinman
 Title:
President











			
	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
 as Administrative Agent

		
	 By:
	 	 /s/ James Moran

		 	 Name: James Moran
 Title: Managing
Director

		
	By:	 	 /s/ Nupur Kumar
 Name:
Nupur Kumar
 Title: Associate










 ACKNOWLEDGEMENT AND CONSENT 
 The undersigned hereby acknowledges receipt of a copy of the Guarantee and Collateral Agreement dated as of August 1, 2006 (the “Agreement”), made by the Pledgors parties thereto for the benefit
of CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent. The undersigned agrees for the benefit of the Administrative Agent and the Lenders as follows: 
 The undersigned acknowledges that its Equity Interests (as defined in the Agreement) have been pledged pursuant to the terms of the Agreement and will comply with all actions that may be required of it pursuant to
Section 3.05 and 4.04(c) of the Agreement. 
 [Signature on the following page] 







 IN WITNESS WHEREOF, the undersigned has duly executed this acknowledgement and consent as of the
     day of August, 2006. 
  

			
	 [NAME OF ISSUER]

		
	 By:
	 	 
		 	 Name:
 Title:

	
	 Address for Notices:

	
	 
	
	 
	
	 
	
	 Fax:










 Exhibit I 
 to Guarantee and 
 Collateral Agreement 
 SUPPLEMENT NO.              dated as of
                     (this “Supplement”), to the Guarantee and Collateral Agreement dated as of August 1, 2006 (the
“Guarantee and Collateral Agreement”), among VERSO PAPER FINANCE HOLDINGS LLC, a Delaware limited liability company (“Holdings”), VERSO PAPER HOLDINGS LLC, a Delaware limited liability company (the
“Borrower”) each Subsidiary of the Borrower identified on Schedule I or otherwise identified herein as a party (each, a “Subsidiary Party”) and CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent (in such
capacity, the “Administrative Agent”) for the Secured Parties (as defined therein). 
 A. Reference is made to the Credit
Agreement dated as of August 1, 2006 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”), among Holdings, the Borrower, the LENDERS party thereto from time to time,
CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders, LEHMAN BROTHERS INC., as syndication agent, and CITIGROUP GLOBAL MARKETS INC. and BANC OF AMERICA
SECURITIES LLC, as co-documentation agents. 
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement and the Guarantee and Collateral Agreement referred to therein. 
 C. The Pledgors have
entered into the Guarantee and Collateral Agreement in order to induce the Lenders to make Loans and each Issuing Bank to issue Letters of Credit. Section 7.16 of the Guarantee and Collateral Agreement provides that additional Subsidiaries may
become Subsidiary Parties under the Guarantee and Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Subsidiary Party under the Guarantee and Collateral Agreement in order to induce the Lenders to make additional Loans and each Issuing Bank to issue additional Letters of Credit
and as consideration for Loans previously made and Letters of Credit previously issued. 
 Accordingly, the Administrative Agent and the New
Subsidiary agree as follows: 
 SECTION 1. In accordance with Section 7.16 of the Guarantee and Collateral Agreement, the New Subsidiary
by its signature below becomes a Subsidiary Party, a Guarantor and a Pledgor under the Guarantee and Collateral Agreement with the same force and effect as if originally named therein as a Subsidiary Party, a Guarantor and a Pledgor, and the New
Subsidiary hereby (a) agrees to all the terms and provisions of the Guarantee and Collateral Agreement applicable to it as a Subsidiary Party, a Guarantor and a Pledgor thereunder and (b) represents and warrants that the representations
and warranties made by it as a Guarantor and a Pledgor thereunder are true and correct, in all material respects, on and as of the date hereof. In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in


  

 I-1 








 
full of the Obligations (as defined in the Guarantee and Collateral Agreement), does hereby create and grant to the Administrative Agent, for the ratable
benefit of the Secured Parties, a security interest in and Lien on all the New Subsidiary’s right, title and interest in and to the Collateral (as defined in the Guarantee and Collateral Agreement) of the New Subsidiary. Each reference to a
“Subsidiary Party” or a “Guarantor” a “Pledgor” in the Guarantee and Collateral Agreement shall be deemed to include the New Subsidiary. The Guarantee and Collateral Agreement is hereby incorporated herein by reference.

 SECTION 2. The New Subsidiary represents and warrants to the Administrative Agent and the other Secured Parties that this Supplement has
been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied
covenants of good faith and fair dealing. 
 SECTION 3. This Agreement may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute but one contract. This Supplement shall become effective when (a) the Administrative Agent shall have received a counterpart of this Supplement that bears the
signature of the New Subsidiary and (b) the Administrative Agent has executed a counterpart hereof. 
 SECTION 4. The New Subsidiary
hereby represents and warrants that (a) set forth on Schedule I attached hereto is a true and correct schedule of all the Pledged Securities of the New Subsidiary as of the date hereof, (b) set forth on Schedule II attached
hereto is a true and correct schedule of all of the material Patents, Trademarks and Copyrights of the New Subsidiary as of the date hereof, (c) set forth on Schedule III attached hereto is a true and correct schedule of all Commercial
Tort Claims of the New Subsidiary individually in excess of $2.0 million as of the date hereof and (d) set forth under its signature hereto, is the true and correct legal name of the New Subsidiary, its jurisdiction of formation and the
location of its chief executive office. 
 SECTION 5. Except as expressly supplemented hereby, the Guarantee and Collateral Agreement shall
remain in full force and effect. 
 SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SUPPLEMENT SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 7. In the event any one or more of the
provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Guarantee and Collateral Agreement shall not
in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions. 
  

 I-2 








 SECTION 8. All communications and notices hereunder shall be in writing and given as provided in
Section 7.01 of the Guarantee and Collateral Agreement. 
 SECTION 9. The New Subsidiary agrees to reimburse the Administrative Agent
for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, disbursements and other charges of counsel for the Administrative Agent. 
 IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this Supplement to the Guarantee and Collateral Agreement as of
the day and year first above written. 
  

			
	 [Name of New Subsidiary]

		
	By:	 	  

		 	 Name:
 Title:

		
		 	 Legal Name:

		
		 	 Jurisdiction of Formation:

		
		 	 Location of Chief Executive Office:

		
		 	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative Agent

		
	 By:
	 	  

		 	 Name:
 Title:



  

 I-3 








 Schedule I 
 to Supplement No.              to the 
 Guarantee and 
 Collateral Agreement 
 Pledged Securities of the New Subsidiary 
 EQUITY INTERESTS 
  

							
	 Number of Issuer
 Certificate
	  	Registered Owner	  	Number and Class of
Equity Interest	  	Percentage of
Equity Interests

 DEBT SECURITIES 
  

							
	 Issuer
	  	Principal Amount	  	Date of Note	  	Maturity Date

 Schedule II 
 to Supplement No.              to the 
 Guarantee and 
 Collateral Agreement 
 PATENTS, TRADEMARKS AND COPYRIGHTS 
 Schedule III 
 to Supplement No.              to the 
 Guarantee and 
 Collateral Agreement 

COMMERCIAL TORT CLAIMS 
  

 I-4 








 PRIVILEGED & CONFIDENTIAL 
 SCHEDULES TO 
 FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT 
 Dated and effective as of August 1, 2006, 
 Among 
 VERSO PAPER FINANCE HOLDINGS LLC 
 VERSO PAPER HOLDINGS, LLC 
 as Borrower 
 each Subsidiary of the Borrower 
 identified herein, 
 and 
 CREDIT SUISSE, CAYMAN ISLANDS
BRANCH, 
 as Administrative Agent 
 NOTE: ALL CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HAVE THE MEANINGS ASCRIBED THERETO IN THE GUARANTY AND COLLATERAL AGREEMENT. 







 SCHEDULE I 
 SUBSIDIARY PARTIES 
 CMP Holdings LLC, a Delaware limited liability company 
 CMP Androscoggin LLC, a Delaware limited liability company 
 CMP Bucksport
LLC, a Delaware limited liability company 
 CMP Quinnesec LLC, a Delaware limited liability company 
 CMP Sartell LLC, a Delaware limited liability company 
 NexTier Solutions
Corporation, a California corporation 
 Verso Paper Inc., a Delaware corporation 







 SCHEDULE II 
 PLEDGED STOCK; DEBT SECURITIES 
 Equity Interests: 
  

									
	 Issuer
	  	Registered Owner	  	Number and Class of
Equity Interest	  	Percentage of
Equity Interests	 	Certificate No.
					
	 Verso Paper Holdings LLC
	  	Verso Paper Finance
 Holdings LLC
	  	N/A; Common	  	100%	 	N/A
					
	 Verso Paper Inc.
	  	Verso Paper
Holdings LLC	  	1,000 Shares;
Common	  	100%	 	1
					
	 CMP Holdings LLC
	  	Verso Paper
Holdings LLC	  	N/A; Common	  	100%	 	N/A
					
	 CMP Androscoggin LLC
	  	CMP Holdings LLC	  	N/A; Common	  	100%	 	N/A
					
	 CMP Bucksport LLC
	  	CMP Holdings LLC	  	N/A; Common	  	100%	 	N/A
					
	 CMP Quinnesec LLC
	  	CMP Holdings LLC	  	N/A; Common	  	100%	 	N/A
					
	 CMP Sartell LLC
	  	CMP Holdings LLC	  	N/A; Common	  	100%	 	N/A
					
	 NexTier Solutions Corporation
	  	CMP Holdings LLC	  	1,000 Shares;
Common	  	100%	 	18
					
	 Bucksport Leasing LLC
	  	CMP Holdings LLC	  	N/A; Common	  	100%	 	N/A

 Debt obligations: 
  

	 	1.	$80,000,000 Demand Note No. 1, dated August 1, 2006, issued by CMP Androscoggin LLC to Verso Paper Holdings LLC. 

  

	 	2.	$112,000,000 Demand Note No. 2, dated August 1, 2006, issued by CMP Androscoggin LLC to Verso Paper Holdings LLC. 

  

	 	3.	$96,000,000 Demand Note No. 3, dated August 1, 2006, issued by CMP Androscoggin LLC to Verso Paper Holdings LLC. 

  

	 	4.	$91,200,000 Demand Note No. 4, dated August 1, 2006, issued by CMP Androscoggin LLC to Verso Paper Holdings LLC. 









	 	5.	$57,500,000 Demand Note No. 1, dated August 1, 2006, issued by CMP Bucksport LLC to Verso Paper Holdings LLC. 

  

	 	6.	$80,500,000 Demand Note No. 2, dated August 1, 2006, issued by CMP Bucksport LLC to Verso Paper Holdings LLC. 

  

	 	7.	$69,000,000 Demand Note No. 3, dated August 1, 2006, issued by CMP Bucksport LLC to Verso Paper Holdings LLC. 

  

	 	8.	$65,550,000 Demand Note No. 4, dated August 1, 2006, issued by CMP Bucksport LLC to Verso Paper Holdings LLC. 

  

	 	9.	$82,500,000 Demand Note No. 1, dated August 1, 2006, issued by CMP Quinnesec LLC to Verso Paper Holdings LLC. 

  

	 	10.	$115,500,000 Demand Note No. 2, dated August 1, 2006, issued by CMP Quinnesec LLC to Verso Paper Holdings LLC. 

  

	 	11.	$99,000,000 Demand Note No. 3, dated August 1, 2006, issued by CMP Quinnesec LLC to Verso Paper Holdings LLC. 

  

	 	12.	$94,050,000 Demand Note No. 4, dated August 1, 2006, issued by CMP Quinnesec LLC to Verso Paper Holdings LLC. 

  

	 	13.	$30,000,000 Demand Note No. 1, dated August 1, 2006, issued by CMP Sartell LLC to Verso Paper Holdings LLC. 

  

	 	14.	$42,000,000 Demand Note No. 2, dated August 1, 2006, issued by CMP Sartell LLC to Verso Paper Holdings LLC. 

  

	 	15.	$36,000,000 Demand Note No. 3, dated August 1, 2006, issued by CMP Sartell LLC to Verso Paper Holdings LLC. 

  

	 	16.	$34,200,000 Demand Note No. 4, dated August 1, 2006, issued by CMP Sartell LLC to Verso Paper Holdings LLC. 








 SCHEDULE III 
 INTELLECTUAL PROPERTY 
 Copyrights 
  

	1.	TXul-043-100, dated June 25, 2002 covering EZ-Suite Computer Program. 

 Patents 
  

	1.	Application PI0313537-3 filed July 15, 2003, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution pending in Brazil 

  

	2.	Application 2494414 filed July 15, 2003, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution pending in Canada 

  

	3.	Publication No. 1573616 filed July 15, 2003, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution published under the European Patent
Convention 

  

	4.	Application P-374880 filed July 15, 2003, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution pending in Poland 

  

	5.	Application 2005105303 filed July 15, 2003, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution pending in Russian Federation


  

	6.	Application 10/209366 filed July 30, 2002, titled Multi-party, Multi-tier System for Managing Paper Purchase and Distribution pending in United States of America


  

	7.	Application 2503966 filed November 25, 2003, titled Using Shoe Nip Calenders to Produce Super High Bulk No. 5 Web Offset light Weight Coated (LWC) Groundwood Containing
Papers pending in Canada 

  

	8.	Application 200380104201 filed November 25, 2003, titled Using Shoe Nip Calenders to Produce Super High Bulk No. 5 Web Offset light Weight Coated (LWC) Groundwood
Containing Papers pending in People’s Republic of China 

  

	9.	Publication No. 1565614 filed November 25, 2003, titled Using Shoe Nip Calenders to Produce Super High Bulk No. 5 Web Offset light Weight Coated (LWC) Groundwood
Containing Papers published under the European Patent Convention 

  

	10.	Application 2004-554833 filed November 25, 2003, titled Using Shoe Nip Calenders to Produce Super High Bulk No. 5 Web Offset light Weight Coated (LWC) Groundwood
Containing Papers pending in Japan 

  

	11.	Application 2005-7009425 filed November 25, 2003, titled Using Shoe Nip Calenders to Produce Super High Bulk No. 5 Web Offset light Weight Coated (LWC) Groundwood
Containing Papers pending in the Republic of Korea 

  

	12.	Publication No. 04-0099391 filed July 10, 2003, titled Process for Producing Super High Bulk, Light Weight Coated Papers published in the United States of America










	13.	Patent No. 6504625 titled System and Method for Print Analysis granted in United States of America 

  

	14.	Application PI0408509-4 filed March 19, 2004, titled Using a Metered Size Press to Produce Lightweight Coated Rotogravure Paper pending in Brazil 

  

	15.	Application 2519638 filed March 19, 2004, titled Using a Metered Size Press to Produce Lightweight Coated Rotogravure Paper pending in Canada 

  

	16.	Publication 1623068 filed March 19, 2004, titled Using a Metered Size Press to Produce Lightweight Coated Rotogravure Paper published under the European Patent Convention


  

	17.	Publication No. 04-0208999 filed March 19, 2004, titled Using a Metered Size Press to Produce Lightweight Coated Rotogravure Paper published in the United States of
America 

  

	18.	Application 60/726031 filed October 12, 2005, titled Spray Coating Formulations and Coated Paper and Board Products pending in the United States of America


  

	19.	Unfiled patent titled A Method To Maintain Liquid Curtain Film in Coating Process for the United States of America (CSC-024173) 

  

	20.	Application 11/361,916 filed February 24, 2006, titled Paper Roll Edge Trimming Method and Apparatus pending in the United States of America 

  

	21.	Unfiled patent titled A Surface Treatment Method For Contour/Non-impact Coating Process for the United States of America (CSC-025447) 

  

	22.	Unfiled patent titled Gravure and Offset Printable Coated Freesheet for the United States of America (CSC-027812) 

  

	23.	Patent No. 6024835 titled Quality Control Apparatus and Method For Paper Mill granted in the United States of America 

  

	24.	Patent No. 5283129 titled Light Weight Paper Stock granted in the United States of America 

  

	25.	Patent Number 7018509 titled Elimination of Alum Yellowing of Aspen Thermomechanical Pulp Through Pulp Washing granted in the United States of America 

  

	26.	Divisional Application 11/330503 filed January 12, 2006, titled Elimination of Alum Yellowing of Aspen Thermomechanical Pulp Through Pulp Washing pending in the United States
of America 

 Trademarks 
  

	1.	Liberty, US Registration No. 3051555, registered on January 24, 2006 

  

	2.	Advocate, US Registration No. 2703228, registered on April 1, 2003 (class 16) 

  

	3.	Influence, US Registration No. 1542526, registered on June 6, 1989 (class 16) 









	4.	Influence Soft-Gloss, US Registration No. 2331367, registered on March 21, 2000 (class 16) 

  

	5.	People And Paper That Create Results, US Registration No. 2560485, registered on April 9, 2002 (class 16) 

  

	6.	Savvy, US Registration No. 2715986, registered on May 13, 2003 (class 16) 

  

	7.	Slide Pal, US Registration No. 2241856, registered on April 27, 1999 (class 9) 

  

	8.	Trilogy, US Registration No. 2698738, registered on March 18, 2003 (class 16) 

  

	9.	Velocity, US Registration No. 2576468, registered on June 4, 2002 (class 16) 

  


	10.	Webexpress, US Registration No. 1434704, registered on March 31, 1987 (class 16) 

  

	11.	Webexpress, US Registration No. 2347019, registered on May 2, 2000 (class 35) 

  

	12.	Nextier, US Registration No. 2929598, registered on March 1, 2005 (class 35) 

  


	13.	Ez-Control, US Registration No. 2931588, registered on March 8, 2005 (class 9) 

  

	14.	Ez-Printer, US Registration No. 2931589, registered on March 8, 2005 (class 9) 

  

	15.	Ez-Suite, US Registration No. 3030600, registered on December 13, 2005 (class 35) 

  

	16.	Ez-Supplier, US Registration No. 2931590, registered on March 8, 2005 (class 9) 

  

	17.	Transit Advantage, US Registration No. 2696684, registered on March 11, 2003 

  


	18.	Quinnesec, US Registration No. 1232416, registered on March 29, 1983 

 IP Agreements 
  

	1.	Intellectual Property Agreement between International Paper Company and CMP Holdings LLC, effective as of August 1, 2006. 

  

	2.	Intellectual Property Agreement between International Paper Company and CMP Fiber Farm LLC, effective as of August 1, 2006. 

  

	3.	Letter agreement between IP and Martha Stewart Living Omnimedia, Inc. granting IP a royalty-free license to manufacture and sell coated papers under the names “Martha Gloss
Offset” and “Martha Gloss Gravure” dated April 1, 2003. 

  

	4.	Application Service Provider and Software License Agreement For EZ-Printer Services and Software between Brown Printing Company and Nextier, dated Sept. 20, 2002.


  

	5.	Application Service Provider and Software License Agreement For EZ- Printer Services and Software between Conley Printing and Nextier, dated Dec. 28, 2005. 


 

	6.	Application Service Provider and Software License Agreement For EZ- Printer Services and Software between JCM Print Services and Nextier, dated May 3, 2004.










	7.	Application Service Provider and Software License Agreement For EZ- Printer Services and Software between Neston Colour Limited and Nextier, dated May 29, 2003.


  

	8.	Application Service Provider and Software License Agreement For EZ- Printer Services and Software between Polestar Chromoworks and Nextier, dated November 17, 2003.


  

	9.	Application Service Provider and Software License Agreement For EZ- Printer Services and Software between Polestar—Purnell and Nextier, dated Dec. 23, 2002.


  

	10.	Letter Agreement on EZ-Printer Services and Software between Quad/Graphics and International Paper Company (for Nextier Solutions Corporation), dated March 25, 2003.


  

	11.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and Quebecor World (USA) Inc., dated Dec. 21,
2005. 

  

	12.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and Quebecor World Inc., dated July 15,
2005. 

  

	13.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and R.R. Donnelley & Sons Company,
dated Nov. 17, 2005. 

  

	14.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and Three Z Printing Co., dated April 4,
2005. 

  

	15.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and Transcontinental Inc., dated Feb. 16,
2005. 

  

	16.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software between Nextier Solutions Corporation and Ringier Print Zofingen AG, dated Nov. 11,
2002. 

  

	17.	Application Service Provider and Software License Agreement for EZ-Supplier Services and Software between Nextier Solutions Corporation and Abitibi Consolidated, dated June 6,
2005. 

  

	18.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Fraser Papers Inc., dated
February 11, 2002. 

  

	19.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and IP, dated Feb. 22, 2002.


  

	20.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Gould Paper, dated Feb. 25, 2005.










	21.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Kruger Inc. dated Oct. 1, 2003.


  

	22.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Lindenmeyr Central, dated Sept. 6, 2005.


  

	23.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Madison International Sales Company,
dated Sept. 6, 2005. 

  

	24.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and M-real UK Ltd., dated March 14,
2003. 

  

	25.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Mead Corporation and Westvaco
Corporation, dated June 5, 2002. 

  

	26.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Norske Skog and Norske Canada, dated
Dec. 30, 2003. 

  

	27.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Norske Skog Canada Limited, dated
June 28, 2005. 

  

	28.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and SCA Graphic Laakirchen AG, dated Sept. 1
2004. 

  

	29.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and SCA North America, dated Nov. 3, 2004.


  

	30.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and St. Marys Paper Ltd., dated
April 1, 2004. 

  

	31.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Tembec, Inc., dated January 8,
2003. 

  

	32.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and UPM-Kymmene, Inc., dated
February 6, 2002. 

  

	33.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and West Linn Paper Co., dated May 8,
2002. 









	34.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and Weyerhaeuser Company—Fine Paper,
dated Nov. 29, 2001. 

  

	35.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and American Media, Inc., dated
January 24, 2005. 

  

	36.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and A.T.Clayton, dated July 19, 2002.


  

	37.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Gruner + Jahr USA Publishing (later
assigned to Meredith Corporation), dated June 17, 2002. 

  

	38.	Application Service Provider and Software License Agreement For EZ-Supplier Services and Software between Nextier Solutions Corporation and Graphic Communications Holdings, Inc.,
dated Feb. 4, 2002. 

  

	39.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Land’s End, Inc., dated May 16,
2002. 

  

	40.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Primedia Magazines, Inc., dated
January 5, 2004. 

  

	41.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Sears Canada Inc., dated Feb. 17, 2004.


  

	42.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Strategic Paper Group LLC, dated Feb. 11,
2002. 

  

	43.	Application Service Provider and Software License Agreement For EZ-Control Services and Software between Nextier Solutions Corporation and Xpedx, dated May 31, 2002.


  

	44.	Application Service Provider and Software License Agreement For EZ-Supplier Services and Software between Bowater America Inc. (confidential) and Nextier, dated January 17,
2002. 

  

	45.	Application Service Provider and Software License Agreement for EZ- Supplier Services and Software between Nextier Solutions Corporation and StoraEnso dated Oct. 1, 2003.


  

	46.	Statement of Work between Liaison, LLC and Nextier Solutions Corporation dated January 1, 2005, attachment to Professional Service Agreement between Liaison Technologies, LLC
and International Paper Company. 

  

	47.	SAVVIS Master Services Agreement between SAVVIS Communications Corporation and Nextier Solutions Corporation, dated Dec. 2, 2005. 









	48.	Support and Maintenance Contract for the EPC Messenger between Ponton Consulting GmbH and Nextier Solutions Corporation, dated Sept. 1, 2005. 

  

	49.	Addendum to Sourceflex Software Source Code Escrow Agreement, between SourceFile LLC, NexTier Solutions Corporation and Champion International Corporation, dated December 14,
2000. 

  

	50.	Independent Contractor Agreement between Sumlogic Innovations Company and Nextier Solutions Corporation, dated Oct. 5, 2005. 

  

	51.	Letter Agreement related to providing services between Ms. Ann Gambro and Nextier Solutions Corporation, dated January 5, 2005. 

  

	52.	Agreement between Prinovi Nurnberg and Nextier, dated March 3, 2006. 

  

	53.	Application Service Provider and Software License Agreement for EZ-Printer Services and Software, dated February 22, 2006, between IP and St. Joseph Printing Ltd.


  

	54.	Software License and Services Agreement between Nextier Solutions Corporation and Thomas Donnelly and Associates (dba Graphic Communications) dated January 1, 2000.


  

	55.	VisionSuite Master Service Agreement between International Paper Company, Coated and SC Papers Division and Transcentric, Inc. dated September 1, 2005.


  

	56.	Intel Online Master Customer Agreement between Nextier Solutions Corporation and Intel Online Services, Inc. dated September 29, 2002. 

  

	57.	Beta Software Testing Agreement between Nextier Solutions Corporation and Lands’ End, Inc. dated October 6, 2000. 

  

	58.	Software License Agreement between Nextier Solutions Corporation and Lands’ End, Inc. dated October 6, 2000. 

  

	59.	Application Service Provider Agreement for Hosting the Order Status Application between Nextier Corporation and Fraser Papers Limited dated September 30, 2005.


  

	60.	System Purchase Agreement for Production Management Information System between Champion International Corporation (Quinnesec, MI) and Majiq Inc. effective December 20, 1996.


  

	61.	System Purchase Agreement for Production Management System between Champion International Corporation (Sartell, MN) and Majiq Inc. effective September 25, 1992.


  

	62.	System Purchase Agreement for Production Management System between Champion International Corporation (Bucksport, ME) and Majiq Inc. effective August 1, 1994.


  

	63.	International Paper Company Services Contract between IP and Advanced Service Providers, dated May 1, 2005. 

  

	64.	PROVOX Instrumentation License Agreement between Fisher Controls International, Inc. and Champion, dated April 5, 1993. 

  

	65.	Master License Agreement between Fisher Controls International, Inc. and Champion, dated March 25, 1992. 









	66.	End User License Agreement between IP and Northern Dynamic, Inc. (undated). 

  

	67.	Software License Agreement between IP and Cognex (undated). 

  

	68.	Agreement between IP and Emerson Process Management dated July 1, 2005. 

  

	69.	End-User License Agreement between IP and Environmental Support Solutions, Inc. (undated). 

  

	70.	Software License Agreement between IP and TISCOR (undated). 

  

	71.	Lifetime Support Services Agreement and Software License Agreement between IP and Invensys Systems, Inc. (undated). 

  

	72.	Software License Agreement between IP and Digital Equipment of Canada (undated). 

  

	73.	Software License Agreement between IP and Mynah Technologies dated January 2005. 

  

	74.	iRMX Run-time Operating System Software License Agreement between IP and RadiSys Corporation (undated). 

  

	75.	Software License Agreement between IP and Intersoft, Inc. (undated). 

  

	76.	Software License Agreement between IP and Invensys Software Systems (undated). 

  

	77.	Software License Agreement between IP and The Foxboro Company (undated). 

  

	78.	Interact License Agreements between IP and Computer Technology Corporation (undated). 

  

	79.	Statement of Work #1 dated March 9, 2006 between Abbottsfield industrial Training, Inc. and International Paper Company. 

  

	80.	Software License Agreement, and related Schedule of Products Number 1, Schedule of Products Number 2, Schedule of Products Number 3, and Schedule of Products Number 4, effective on
August 1, 2006, between Cincom Systems, Inc. and CMP Holdings LLC. 








 SCHEDULE IV 
 FILING JURISDICTIONS 
  

					
	 Pledgor
	  	 Jurisdiction
	  	Organizational ID #
			
	 Verso Paper Finance Holdings LLC
	  	Secretary of State, Delaware	  	4180087
			
	 Verso Paper Holdings LLC
	  	Secretary of State, Delaware	  	4170453
			
	 CMP Holdings LLC
	  	Secretary of State, Delaware	  	4152614
			
	 CMP Androscoggin LLC
	  	Secretary of State, Delaware	  	4150499
			
	 CMP Bucksport LLC
	  	Secretary of State, Delaware	  	4150501
			
	 CMP Quinnesec LLC
	  	Secretary of State, Delaware	  	4150505
			
	 CMP Sartell LLC
	  	Secretary of State, Delaware	  	4150497
			
	 NexTier Solutions Corporation
	  	Secretary of State, California	  	C2220203
			
	 Verso Paper Inc.
	  	Secretary of State, Delaware	  	4180085








 SCHEDULE V 
 COMMERCIAL TORT CLAIMS 
 None. 







 SCHEDULE VI 
 MATTERS RELATING TO ACCOUNTS AND INVENTORY 
 None.