Document:

Exhibit 10.2

 EXHIBIT 10.2 
 SECOND AMENDED AND RESTATED 
 RECEIVABLES PURCHASE AGREEMENT

 Dated as of June 16, 2009 
 Among 
 ABITIBI-CONSOLIDATED U.S. FUNDING CORP. 
 as the Seller 
 and 
 CITIBANK, N.A., 
 BARCLAYS BANK PLC 
 and the other financial and other institutions from time to time
party hereto, 
 as Banks 
 and 
 CITIBANK, N.A., 
 as the Agent 
 and 
 THE ORIGINATORS NAMED HEREIN 
 and 
 ABITIBI CONSOLIDATED SALES CORPORATION 
 as Servicer 
 and 
 ABITIBI-CONSOLIDATED INC. 
 as Subservicer 
 and 
 BARCLAYS CAPITAL INC., 
 as Syndication Agent 
 and 
 THE CIT GROUP / BUSINESS CREDIT, INC., 
 as Documentation Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 ARTICLE I
	  	     DEFINITIONS
	  	1
	 Section 1.01
	  	 Certain Defined Terms
	  	1
	 Section 1.02
	  	 Other Terms
	  	27
			
	 ARTICLE II
	  	     AMOUNTS AND TERMS OF THE PURCHASES
	  	27
	 Section 2.01
	  	 Purchase Facility
	  	27
	 Section 2.02
	  	 Making Purchases
	  	28
	 Section 2.03
	  	 Receivable Interest Computation
	  	29
	 Section 2.04
	  	 Settlement Procedures
	  	29
	 Section 2.05
	  	 Fees
	  	32
	 Section 2.06
	  	 Payments and Computations, Etc.
	  	33
	 Section 2.07
	  	 Dividing or Combining Receivable Interests
	  	33
	 Section 2.08
	  	 Increased Costs
	  	33
	 Section 2.09
	  	 [Intentionally Omitted]
	  	34
	 Section 2.10
	  	 Taxes
	  	34
	 Section 2.11
	  	 Security Interest
	  	37
	 Section 2.12
	  	 Sharing of Payments
	  	37
	 Section 2.13
	  	 Repurchase Option
	  	38
	 Section 2.14
	  	 Fifteen Month Facility Extension Option
	  	38
	 Section 2.15
	  	 Eighteen Month Facility Extension Option
	  	39
			
	 ARTICLE III
	  	     CONDITIONS OF PURCHASES
	  	40
	 Section 3.01
	  	 [Intentionally Omitted]
	  	40
	 Section 3.02
	  	 Conditions Precedent to All Purchases and Reinvestments
	  	40
	 Section 3.03
	  	 Conditions Precedent to the Effectiveness of Amendment and Restatement
	  	40
			
	 ARTICLE IV
	  	     REPRESENTATIONS AND WARRANTIES
	  	45
	 Section 4.01
	  	 Representations and Warranties of the Seller
	  	45
	 Section 4.02
	  	 Representations and Warranties of the Servicer
	  	48
			
	 ARTICLE V
	  	     COVENANTS
	  	51
	 Section 5.01
	  	 Covenants of the Seller
	  	51
	 Section 5.02
	  	 Covenant of the Seller and the Originators
	  	58
			
	 ARTICLE VI
	  	     ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES
	  	59
	 Section 6.01
	  	 Designation of Servicer
	  	59
	 Section 6.02
	  	 Duties of Servicer
	  	59
	 Section 6.03
	  	 Certain Rights of the Agent
	  	62
	 Section 6.04
	  	 Rights and Remedies
	  	63
	 Section 6.05
	  	 Further Actions Evidencing Purchases
	  	63

  

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	 Section 6.06
	  	 Covenants of the Servicer and each Originator
	  	63
	 Section 6.07
	  	 Indemnities by the Servicer
	  	64
	 Section 6.08
	  	 [Reserved]
	  	65
	 Section 6.09
	  	 Canadian Residents
	  	66
	 Section 6.10
	  	 Deposit Account Agreements
	  	66
			
	 ARTICLE VII
	  	     EVENTS OF TERMINATION
	  	66
	 Section 7.01
	  	 Events of Termination
	  	66
			
	 ARTICLE VIII
	  	     THE AGENT
	  	73
	 Section 8.01
	  	 Authorization and Action
	  	73
	 Section 8.02
	  	 Agent’s Reliance, Etc.
	  	73
	 Section 8.03
	  	 Citibank and Affiliates
	  	73
	 Section 8.04
	  	 Bank’s Purchase Decision
	  	74
	 Section 8.05
	  	 Indemnification of Agent
	  	74
	 Section 8.06
	  	 Syndication Agent and Documentation Agent
	  	74
			
	 ARTICLE IX
	  	     INDEMNIFICATION
	  	74
	 Section 9.01
	  	 Indemnities by the Seller
	  	74
			
	 ARTICLE X
	  	     MISCELLANEOUS
	  	77
	 Section 10.01
	  	 Amendments, Etc.
	  	77
	 Section 10.02
	  	 Notices, Etc.
	  	80
	 Section 10.03
	  	 Assignability
	  	80
	 Section 10.04
	  	 Costs and Expenses
	  	82
	 Section 10.05
	  	 No Proceedings
	  	82
	 Section 10.06
	  	 Confidentiality
	  	83
	 Section 10.07
	  	 GOVERNING LAW
	  	85
	 Section 10.08
	  	 Execution in Counterparts
	  	85
	 Section 10.09
	  	 Survival of Termination
	  	85
	 Section 10.10
	  	 Consent to Jurisdiction
	  	85
	 Section 10.11
	  	 WAIVER OF JURY TRIAL
	  	86
	 Section 10.12
	  	 Judgment
	  	86
	 Section 10.13
	  	 Execution by ACI
	  	86
	 Section 10.14
	  	 Language
	  	86
	 Section 10.15
	  	 Tax Treatment
	  	86
	 Section 10.16
	  	 Acknowledgment
	  	87
	 Section 10.17
	  	 Assignment by Agent; Continuing Effectiveness
	  	87
	 Section 10.18
	  	 Insurance Policy
	  	88
	 Section 10.19
	  	 Amendment and Restatement and Continuing Effect
	  	88
	 Section 10.20
	  	 Damages Waiver
	  	88

  

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		  		    	 SCHEDULES

			
	 SCHEDULE I
	  	-	    	 Bank Commitments

	 SCHEDULE II
	  	-	    	 Credit and Collection Policy

	 SCHEDULE III
	  	-	    	 Addresses

	 SCHEDULE IV
	  	-	    	 UCC and PPSA Information

	 SCHEDULE V
	  	-	    	 Deposit Accounts

	 SCHEDULE VI
	  	-	    	 Depositary Bank Consents

			
		  		    	 ANNEXES

			
	 ANNEX A-1
	  	-	    	 Form of Monthly Report

	 ANNEX A-2
	  	-	    	 Form of Weekly Report

	 ANNEX B
	  	-	    	 Form of Deposit Account Agreement

	 ANNEX C
	  	-	    	 Form of Assignment and Acceptance

	 ANNEX D
	  	-	    	 Form of Notice of Purchase

	 ANNEX E
	  	-	    	 [Intentionally Omitted]

	 ANNEX F
	  	-	    	 Form of Undertaking (Originator)

	 ANNEX G
	  	-	    	 Form of Undertaking (Servicer)

	 ANNEX H
	  	-	    	 Insurance Policy

	 ANNEX I
	  	-	    	 [Intentionally Omitted]

	 ANNEX J
	  	-	    	 [Intentionally Omitted]

	 ANNEX K
	  	-	    	 [Intentionally Omitted]

	 ANNEX L
	  	-	    	 Form of Notice of Change of Address

	 ANNEX M
	  	-	    	 [Intentionally Omitted]

	 ANNEX N
	  	-	    	 Form of Certificate Regarding Adverse Claims

			
		  		    	 EXHIBITS

			
	 EXHIBIT A-1
	  	-	    	 Form of Canadian Amended Order

	 EXHIBIT A-2
	  	-	    	 Form of US Interim Order

	 EXHIBIT B
	  	-	    	 Form of US Final Order

  

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 SECOND AMENDED AND RESTATED 
 RECEIVABLES PURCHASE AGREEMENT 
 Dated as of June 16,
2009 
 ABITIBI-CONSOLIDATED U.S. FUNDING CORP., a Delaware corporation as Seller (as this and other capitalized
terms are hereinafter defined), CITIBANK, N.A., BARCLAYS BANK PLC and the other financial and other institutions from time to time party hereto, as Banks, CITIBANK, N.A., as Agent for the Banks (“Agent”), ABITIBI-CONSOLIDATED INC.,
a Canadian corporation (“ACI”), ABITIBI CONSOLIDATED SALES CORPORATION, a Delaware corporation (“ACSC”), as Originators, ACSC, as Servicer, ACI, as Subservicer, Barclays Capital Inc., as Syndication Agent, and The
CIT Group / Business Credit, Inc., as Documentation Agent, agree as follows: 
 PRELIMINARY STATEMENT.
Abitibi-Consolidated U.S. Funding Corp. (the “Seller”), Citibank, N.A., Citibank, N.A., London Branch (“CLB”), ACI and ACSC entered into that certain Amended and Restated Receivables Purchase Agreement dated as of
January 31, 2008 (as amended prior to the date hereof, the “Existing RPA”). The Seller has acquired, and may continue to acquire, Receivables from the Originators, either by purchase or (in the case of ACSC) by contribution to
the capital of the Seller, as determined from time to time by the Seller and the applicable Originator. The Seller has sold and is prepared to continue to sell undivided fractional ownership interests (referred to herein as “Receivable
Interests”) in the Receivables. The Banks are prepared to continue to purchase such Receivable Interests, in each case on the terms set forth herein. The parties hereto wish to amend and restate the Existing RPA in its entirety.
Accordingly, the parties agree that the Existing RPA is amended and restated to read in its entirety as follows: 
 ARTICLE I

 DEFINITIONS 
 Section 1.01 Certain Defined. Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined): 
 “Abitibi Entity” means each of ACI, Donohue and their
respective Subsidiaries. 
 “Adequate Protection Claims” has the meaning specified in the US
Interim Order (at any time prior to the entry of the US Final Order) or the US Final Order (thereafter). 
 “Adjusted Eurodollar Rate” means, for any Yield Period, an interest rate per annum equal to the rate per annum obtained by dividing (i) the Eurodollar Rate for such Yield Period by (ii) a percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage for such Yield Period. 
 “Administrative
Questionnaire” means, with respect to each Bank, an Administrative Questionnaire in the form requested by the Agent furnished to the Agent, the Seller and the Servicer duly completed by such Bank. 
  

 “Adverse Claim” means a lien, security interest, mortgage,
pledge, assignment, hypothec, hypothecation, privilege, title retention or other charge or encumbrance, or any other type of preferential arrangement (which, for the avoidance of doubt, does not include Taxes not yet due and payable). 
 “Affected Person” has the meaning specified in Section 2.08(a). 
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is
controlled by or is under common control with such Person or is a director or officer of such Person. 
 “Affiliated Debtor” means an Affiliate of an Originator which has commenced a case under the Bankruptcy Code or under the CCAA. 
 “Agent’s Account” means the following account of the Agent (or such other account as the Agent may hereafter notify the Seller in writing): 
  

			
	Bank Name:	  	Citibank N.A.
		
	 ABA/Routing No.:
	  	 [Omitted]

		
	Account Name:	  	Citicorp Industrials
		
	 Account No.:
	  	 [Omitted]

		
	Reference:	  	Abitibi

 “Aggregate Capital” means at any time the aggregate
Capital of Receivable Interests then outstanding under this Agreement. 
 “Agreement” means the
Existing RPA, as amended and restated by the ARRPA and as the same may be further amended, restated or otherwise modified from time to time in accordance with the provisions hereof. 
 “Alternate Base Rate” means a fluctuating interest rate per annum as shall be in effect from time to time,
which rate shall be at all times equal to the highest of: 
 (a) the rate of interest
announced publicly by Citibank in New York, New York, from time to time as Citibank’s base rate; 
 (b) 1/2 of one percent above the Federal Funds Rate; and 
 (c) 4.00%. 
 “Applicable Margin” means (i) 6.50% per annum, for purposes of determinations of Yield based on
the Alternate Base Rate, and (ii) 7.50% per annum, for purposes of determinations of Yield based on the Adjusted Eurodollar Rate; provided, that (x) upon the extension of the Stated Termination Date pursuant to the exercise of
the Fifteen Month Facility Extension Option, each of the foregoing rates shall be increased by 1.00% per annum and (y) upon the extension of the Stated Termination Date pursuant to the exercise of the Eighteen

  

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Month Facility Extension Option, each of the foregoing rates shall be increased by an additional 1.00% per annum. 
 “Approved Country” means the United States, Canada, and any other country outside of the European Area other than those: 
 (i) whose government or central bank (x) shall have prohibited the sale of the currency of such
country in exchange for United States dollars or shall have admitted in writing its inability to pay its debts as the same become due, (y) shall have declared a moratorium on the payment of its debts or the debts of any national governmental
authority of such country, or (z) shall have ceased to be a member of the International Monetary Fund or ceased to be eligible to use the resources of the International Monetary Fund; or 
 (ii) with respect to which the United States shall have imposed economic sanctions. 
 “Approved DIP Receivable” means a Receivable (i) in respect of which the Obligor is debtor in a case
under Chapter 11 of the Bankruptcy Code, (ii) which arises after the commencement of the case described in (i) and is therefore entitled to priority as an administrative expense in such case and (iii) has been approved for purposes of
this Agreement by the Agent in its Discretion. 
 “ARRPA” means this Second Amended and
Restated Receivables Purchase Agreement dated as of June 16, 2009. 
 “Assignment and
Acceptance” means an assignment and acceptance agreement entered into by a Bank, an Eligible Assignee and the Agent, pursuant to which such Eligible Assignee may become a party to this Agreement, substantially in the form of Annex C.

 “Assignee Agent” has the meaning specified in Section 10.17(a). 
 “Assignor Agent” has the meaning specified in Section 10.17(a). 
 “Availability Block” means at any time an amount equal to (a) the greater of $30,000,000 or 8.0% of
the Gross Receivables Pool Balance plus (b) the aggregate amount by which the aggregate claims for all Export Losses (as defined in the Insurance Policy) made by ACI and each “Affiliate of Abitibi” (as such term is defined in the
Maximum Liability Amount endorsement of the Insurance Policy) under the Insurance Policy in any Policy Period (as defined in the Insurance Policy) exceed $50,000,000. 
 “Availability Reserves” means, as of any date of determination, such reserves in amounts as the Agent may from time to time establish (upon three Business Days’
notice to the Seller in the case of new reserve categories established after the Closing Date and formula changes) and revise (upward or downward) in its Discretion: (i) to reflect then-current market events, conditions, contingencies or risks
which, as reasonably determined by the Agent, do or could reasonably be expected to materially adversely affect either (a) the collectibility of the Collateral or its value or (b) the enforceability, perfection or priority of the security
interests and

  

 -3- 

 
other rights of the Agent or any Bank in the Collateral or (ii) to reflect the Agent’s reasonable belief that any collateral report or financial information furnished by or on behalf of
the Seller was incomplete, inaccurate or misleading in any material respect when furnished and when considered with all other related information furnished by or on behalf of Seller or (iii) in respect of any state of facts which the Agent
reasonably determines in good faith constitutes a Trigger Event. 
 “Bank” means each Person
listed as a “Bank” on the signature pages hereto and each Eligible Assignee that shall become a party to this Agreement pursuant to Section 10.03. 
 “Bank Commitment” of any Bank means, (a) with respect to each Bank listed on the signature pages hereof, the amount set forth as its Bank Commitment in Schedule
I and (b) with respect to a Bank that becomes a party hereto pursuant to an Assignment and Acceptance, the amount set forth therein as such Bank’s Bank Commitment, in each case as such amount may be reduced or increased by an Assignment
and Acceptance entered into between such Bank and an Eligible Assignee, and as may be further reduced (or terminated) pursuant to the next sentence. Any reduction (or termination) of the Purchase Limit pursuant to the terms of this Agreement shall
reduce ratably (or terminate) each Bank’s Bank Commitment. 
 “Bankruptcy Case” means,
collectively, the cases filed by (x) ACSC and the Parent under Chapter 11 of the Bankruptcy Code and (y) ACI under Chapter 15 of the Bankruptcy Code (or, at any time on or after the Petition Date, under Chapter 11 of the Bankruptcy Code),
in each case with the Bankruptcy Court. 
 “Bankruptcy Code” means the Bankruptcy Code in Title
11 of the United States Code, as amended, modified, succeeded or replaced from time to time. 
 “Bankruptcy Court” means the United States Bankruptcy Court for the District of Delaware. 
 “Business Day” means any day on which (i) banks are not authorized or required to close in New York City, Montreal or Ottawa, and (ii) if this definition of “Business Day” is utilized in
connection with the Eurodollar Rate, dealings are carried out in the London interbank market. 
 “Canadian Amended Order” an order of the Canadian Court, substantially in the form of Exhibit A-1, approving, inter alia, the continued sale and servicing of Receivables under the Originator Purchase Agreement, the
transactions contemplated by this Agreement and the other Transaction Documents and the performance by ACI of its obligations under this Agreement and the other Transaction Documents. 
 “Canadian Case” means the case filed by ACI and certain of its Subsidiaries under the CCAA with the
Canadian Court. 
 “Canadian Court” means the Superior Court of Quebec. 
  

 -4- 

 “Canadian Dollar Equivalent” means, as of any date, the
amount obtained by applying the rate for converting currency into Canadian Dollars at the spot rate of exchange for that currency as reasonably determined and advised by the Agent. 
 “Canadian Dollars” or “CAD” means dollars in the lawful currency of Canada. 
 “Canadian Originator” means ACI. 
 “Canadian Tax Act” means the Income Tax Act (Canada) and the Regulations thereunder, as amended, modified or replaced from time to time. 
 “Capital” of any Receivable Interest means the original amount paid to the Seller for such Receivable
Interest at the time of its purchase pursuant to this Agreement, or such amount divided or combined in accordance with Section 2.07, in each case reduced from time to time by Collections distributed on account of such Capital pursuant to
Section 2.04(e); provided that if such Capital shall have been reduced by any such distribution and thereafter all or a portion of such distribution is rescinded or must otherwise be returned for any reason, such Capital shall be
increased by the amount of such rescinded or returned distribution, as though it had not been made. 
 “CCAA” means the Companies’ Creditors Arrangement Act (Canada). 
 “Change of Address” means the first change of address of the principal place of business, chief executive office and location of receivables records of each of the Seller and ACSC hereunder as described in the Notice of
Change of Address. 
 “Change of Address Effective Date” has the meaning specified in
Section 10.01(e). 
 “Citibank” means Citibank, N.A., a national banking association.

 “CLB” has the meaning specified in the Preliminary Statement. 
 “Closing Date” means the date the ARRPA becomes effective pursuant to Section 3.03. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Collateral” has the meaning specified in Section 2.11. 
 “Collateral Availability” means at any time an amount equal to (i) 85% of the Net Receivables Pool
Balance less (ii) the Insurance Deductible Reserve less (iii) the Foreign Currency Adjustment less (iv) the Availability Block less (v) Availability Reserves, each determined as of the date of the most recent Weekly Report or
Daily Report delivered pursuant to Section 6.02(g). 
 “Collections” means, with respect
to any Receivable, all cash collections and other cash proceeds of such Receivable, including, without limitation, (i) all cash proceeds of

  

 -5- 

 
Related Security with respect to such Receivable, (ii) any Collection of such Receivable deemed to have been received pursuant to Section 2.04 and (iii) any Insurance Proceeds
received with respect to such Receivable. 
 “Concentration Limit” for any Obligor means at any
time: 
 (i) if and so long as such Obligor has Debt Ratings of at least BBB- by S&P and
Baa3 by Moody’s, 15.0%; 
 (ii) if and so long as such Obligor has Debt Ratings from
S&P or Moody’s and the preceding clause (i) is not applicable, 10.0%; or 
 (iii) if neither of the preceding clauses is applicable, 5.0%; provided that unless and until the Agent determines that the circumstances warranting such treatment no longer exist, the Concentration Limit for Infoglobo
Comunicacoes SA., a Brazilian entity, shall be 10.0%. 
 “Confidential Information” has the
meaning specified in Section 10.06(b). 
 “Contract” means an agreement between an
Originator and an Obligor (including, in the case of any open account agreement, an invoice), pursuant to or under which such Obligor shall be obligated to pay for merchandise, insurance or services from time to time. 
 “Country Concentration Limit” means at any time, for any Approved Country other than the United States or
Canada, (i) if such Approved Country has Foreign Currency Long Term Debt Ratings of BBB- or better from S&P and Ba1 or better from Moody’s, 15% or (ii) otherwise, 10%; provided that the Agent may, in its Discretion and at
any time, on account of bona fide credit reasons, reduce (to a lesser amount or to zero) any Country Concentration Limit. 
 “Credit and Collection Policy” means those receivables credit and collection policies and practices of the Originators in effect on the Closing Date and described in Schedule II
hereto, as modified in compliance with this Agreement. 
 “Daily Report” has the meaning
specified in Section 6.02(g)(iii). 
 “Debt” means (i) indebtedness for borrowed
money, (ii) obligations evidenced by bonds, debentures, notes or other similar instruments, (iii) obligations to pay the deferred purchase price of property or services, (iv) obligations as lessee under leases which shall have been or
should be, in accordance with generally accepted accounting principles, recorded as capital leases, and (v) obligations under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise
acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (i) through (iv) above. 
 “Debt Rating” for any Person, means the public rating by S&P of such Person’s long term non credit
enhanced, senior unsecured debt, or the corporate family rating assigned to such Person by Moody’s. 
  

 -6- 

 “Defaulted Bank” has the meaning specified in
Section 2.02(f). 
 “Defaulted Receivable” means an Originator Receivable: 
 (i) as to which any payment, or part thereof, remains unpaid for more than 90 days (60 days in
the case of an International Receivable and 45 days in the case of an Approved DIP Receivable) from the original due date for such payment; 
 (ii) except in the case of an Approved DIP Receivable, as to which the Obligor thereof or any other Person obligated thereon has taken any action, or suffered any event to occur, of the type
described in Section 7.01(g); 
 (iii) which, consistent with the Credit and Collection
Policy, would be written off the applicable Originator’s or the Seller’s books as uncollectible; or 
 (iv) for which the applicable Originator or the Seller has (or, consistent with the Credit and Collection Policy, should have) established an Obligor specific reserve for non payment. 
 “Deferred Purchase Price” has the meaning specified in the Originator Purchase Agreement. 
 “Deposit Account” means an account maintained at a Deposit Bank into which (i) Collections in the form
of checks and other items are deposited that have been sent to one or more Lock-Boxes by Obligors and/or (ii) Collections in the form of electronic funds transfers and other items are paid directly by Obligors. 
 “Deposit Account Agreement” means an agreement, in substantially the form of Annex B. 
 “Deposit Bank” means any of the banks holding one or more Deposit Accounts. 
 “Diluted Receivable” means, without duplication, that portion (and only that portion) of any Originator
Receivable which is either (a) reduced or canceled as a result of (i) any defective, rejected or returned merchandise or services, any cash discount, or any failure by the applicable Originator to deliver any merchandise or provide any
services or otherwise to perform under the underlying Contract, (ii) any change in the terms of, or cancellation of, a Contract or any cash discount, discount for quick payment or other adjustment by the applicable Originator which reduces the
amount payable by the Obligor on the related Originator Receivable (except any such change or cancellation resulting from or relating to the financial inability to pay or insolvency of the Obligor of such Originator Receivable) or (iii) any set
off by an Obligor in respect of any claim by such Obligor as to amounts owed by it on the related Originator Receivable (whether such claim arises out of the same or a related transaction or an unrelated transaction), (b) subject to any
specific dispute, offset, counterclaim or defense whatsoever (except the discharge in bankruptcy of the Obligor thereof) or (c) the outstanding balance of the related invoice that was reversed due to unship-reship transactions; provided
that 
  

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 Diluted Receivables are calculated assuming that all chargebacks are resolved in the
Obligor’s favor. 
 “Discretion” shall mean the Agent’s good faith exercise of its
discretion in a manner consistent with its customary credit policies and practices for asset-based credit facilities. 
 “Documentation Agent” means The CIT Group / Business Credit, Inc. in its capacity as Documentation Agent in respect of the ARRPA. 
 “Dollar Equivalent” means, as of any date, the amount obtained by applying the rate for converting currency into Dollars at the spot rate of exchange for that
currency as reasonably determined and advised by the Agent. 
 “Dollars” or
“$” means dollars in the lawful currency of the United States. 
 “Donohue”
means Donohue Corp., a Delaware corporation. 
 “Donohue Group” has the meaning specified in
the US Interim Order (at any time prior to the entry of the US Final Order) or the US Final Order (thereafter). 
 “EDC” has the meaning specified in Section 10.18. 
 “Eighteen Month
Facility Extension Option” has the meaning specified in Section 2.15. 
 “Eligible
Assignee” means (i) any Bank (other than a Defaulted Bank) or any of its Affiliates or any Related Fund, (ii) any Person managed by any Bank (other than a Defaulted Bank) or any of its Affiliates, or (iii) any financial or
other institution approved by the Agent (which approval by the Agent shall not be unreasonably withheld or delayed) and approved by the Seller (which approval by the Seller shall not be unreasonably withheld or delayed and shall not be required if
an Event of Termination or an Incipient Event of Termination has occurred and is continuing); provided that neither the Seller nor any of its Affiliates may be an Eligible Assignee. 
 “Eligible Obligor” means an Obligor which: 
 (i) has a billing address in an Approved Country; and 
 (ii) is not a Person with respect to which the United States, Canada or any other Approved Country shall
have imposed sanctions; and 
 (iii) is not in violation of any applicable law, rule or
regulation relating to terrorism or money-laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), and the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada); and 
  

 -8- 

 (iv) is not a Person (A) that is listed in the
annex to, or otherwise subject to the provisions of, the Executive Order, (B) that is owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive
Order, (C) with which an Affected Person or an Originator is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (D) that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order, or (E) that is named as a “specifically designated national and blocked person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official
website or any replacement website or other replacement official publication of such list or any similar lists published in any other Approved Country; and 
 (v) is not a Person (A) whose property or interest in property is otherwise blocked or subject to blocking pursuant to Section 1 of the Executive Order or any other
Anti-Terrorism Law, or (B) that engages in any dealings or transactions prohibited by Section 2 of the Executive Order or any other Anti-Terrorism Law, or is otherwise associated with any such Person in any manner violative of such
Section 2 or any other Anti-Terrorism Law. 
 “Eligible Receivable” means, at any time, a
Receivable: 
 (i) in the case of any International Receivable, which is fully insured (to
the extent provided for therein) by the Insurance Policy; 
 (ii) the Obligor of which is an
Eligible Obligor, is not an Affiliate of any of an Originator or the Seller, and is not a Canadian federal or provincial Crown corporation; 
 (iii) the Obligor of which is not a government or a governmental subdivision or agency; provided, however, that if a Receivable satisfies all of the requirements of an Eligible
Receivable other than this clause (iii), such Receivable shall be an Eligible Receivable, but only to the extent that including such Receivable as an Eligible Receivable will not cause the aggregate Outstanding Balance of all Receivables included as
Eligible Receivables, the Obligor of which is a government or a governmental subdivision or agency, to exceed 1% of the aggregate Outstanding Balance of all Eligible Receivables; 
 (iv) which is not a Defaulted Receivable; 
 (v) the Obligor of which is not the Obligor of any Defaulted Receivables which in the aggregate
constitute 50% or more (10% or more in the case of International Receivables) of the aggregate Outstanding Balance of all Receivables of such Obligor; 
 (vi) which has been billed and, according to the Contract related thereto, is required to be paid in full within (1) 90 days of the original billing date therefor or
(2) if such Receivable is an International Receivable, 180 days of the 
  

 -9- 

 original billing date, provided that, in each case, the “maximum
payment terms” with respect to such Receivable set forth in the Insurance Policy permits such payment terms; 
 (vii) which is not subject to any deduction, offset, counterclaim, return privilege or other conditions (other than (i) sales discounts given in the ordinary course of the applicable
Originator’s business and reflected in the amount of such Receivable as set forth in the invoice or other supporting material therefor or (ii) an offset or counterclaim of a nature specifically addressed in the determination of Net
Receivables Pool Balance); provided, however, that if a Receivable satisfies all of the requirements of an Eligible Receivable other than this clause (vii), such Receivable shall be an Eligible Receivable, but only to the extent the amount of
such Receivable exceeds such deduction, offset, counterclaim, return privilege or other conditions; 
 (viii) which (A) in the case of a Receivable originated by the U.S. Originator, is an “account” or “payment intangible” within the meaning of Article 9 of the UCC of the applicable
jurisdictions governing the perfection of the interest created by a Receivable Interest and (B) in the case of a Receivable originated by the Canadian Originator, is an “account” or “intangible” within the
meaning of the PPSA or a “claim” under the Civil Code of Quebec; 
 (ix) which (A) in the case of a Receivable originated by the U.S. Originator, is denominated and payable only in Dollars in the United States, (B) in the case of an International Receivable originated by the Canadian
Originator, is denominated and payable only in Dollars in the United States, and (C) in the case of a Receivable other than an International Receivable originated by the Canadian Originator, is denominated and payable only in Dollars or
Canadian Dollars in Canada; 
 (x) which arises under a Contract which, together with such
Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of the Obligor of such Receivable and is not subject to any Adverse Claim or any dispute, offset, counterclaim or defense whatsoever (except the
potential discharge in bankruptcy of such Obligor) and is not settled on a net basis; 
 (xi) which represents a bona fide obligation of the Obligor of such Receivable to pay the stated amount; 
 (xii) as to which the applicable Originator has satisfied and fully performed all obligations with respect to such Receivable required to be fulfilled by it other than customary warranty obligations,
and no further action is required to be performed by any Person with respect thereto other than payment thereon by the applicable Obligor; 
  

 -10- 

 (xiii) which, together with the Contract related
thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations relating to usury, consumer protection, truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices and privacy) and with respect to which none of the Seller, the applicable Originator or the Obligor is in violation of any such law, rule or regulation in any material
respect; 
 (xiv) which arises under a Contract which does not contain a legally enforceable
provision requiring the Obligor thereunder to consent to the transfer, sale or assignment of the rights of the Seller or the applicable Originator thereunder (unless a written consent of such Obligor has been obtained) or that otherwise purports to
restrict the ability of the Agent or the Banks to exercise their rights under this Agreement, including, without limitation, their right to review the related invoice or the payment terms of such Contract; 
 (xv) which arose from the sale of goods or the rendering of services in the ordinary course of the
applicable Originator’s business; 
 (xvi) which has not been extended, rewritten or
otherwise modified from the original terms thereof (except as permitted by Section 6.02(c)); 
 (xvii) the transfer, sale or assignment of which does not contravene any applicable law, rule or regulation; 
 (xviii) which (A) satisfies all applicable requirements of the Credit and Collection Policy and (B) complies with such other criteria and requirements (other than those relating to the
collectibility of such Receivable) as the Agent may from time to time specify to the Seller on account of bona fide credit reasons upon 30 days’ notice; 
 (xvix) which, if the Obligor thereof has a billing address in Canada, satisfies the requirements of
Sections 4.01(s) and (t); and 
 (xx) which is not excluded from the Insurance Policy
by virtue of the provisions of Section 8(6) of the Insurance Policy. 
 “E-Mail Seller
Report” has the meaning specified in Section 6.02(g). 
 “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which ACI
or any of its Subsidiaries is a member and (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and
Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which ACI or any of its Subsidiaries is a member. 
  

 -11- 

 “Eureka” means Eureka Securitisation, plc, an English
corporation. 
 “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurodollar Rate” means, for any Yield Period, an interest rate per annum equal to the greater of (i) the rate per annum at which deposits in U.S. dollars are offered by the principal office of Citibank in London,
England to prime banks in the London interbank market at 11:00 A.M. (London Time) two Business Days before the first day of such Yield Period in an amount substantially equal to the Capital associated with such Yield Period on such first day and for
a period equal to such Yield Period and (ii) 3.00%. 
 “Eurodollar Rate Reserve
Percentage” of any Bank for any Yield Period in respect of which Yield is computed by reference to the Adjusted Eurodollar Rate means the reserve percentage applicable two Business Days before the first day of such Yield Period under
regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) (or if more than one such percentage shall be applicable, the daily average of such percentages for those days in such Yield Period
during which any such percentage shall be so applicable) for determining the maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for such Bank with respect to liabilities or
assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurocurrency Liabilities is determined) having a term equal to such
Yield Period. 
 “European Area” means the United Kingdom, Belgium, Ireland and Germany.

 “Event of Termination” has the meaning specified in Section 7.01. 
 “Existing Aggregate Capital” has the meaning specified in Section 3.03. 
 “Existing Originator Purchase Agreement” means that certain Amended and Restated Purchase and Contribution
Agreement dated as of January 31, 2008, among the Originators, as sellers, and the Seller, as purchaser, as amended prior to the date hereof. 
 “Existing RPA” has the meaning specified in the Preliminary Statement. 
 “Facility Termination Date” means the earliest of (a) the Stated Termination Date, (b) the substantial consummation (as defined in Section 1101 of the Bankruptcy Code and
which for purposes hereof shall be no later than the “effective date”) of a plan of reorganization filed in the Bankruptcy Case that is confirmed pursuant to an order entered by the Bankruptcy Court (or a corresponding order shall be
entered in the Canadian Court with respect to the Canadian Case), (c) the date determined pursuant to Section 7.01 or (d) the date the Purchase Limit reduces to zero pursuant to Section 2.01(b). 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during
such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding 
  

 -12- 

 Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Agent from three Federal funds brokers of recognized standing selected by it. 
 “Fee Agreements” has the meaning specified in Section 2.05(b). 
 “Fees” means the fees payable by the Seller pursuant to Sections 2.05(b) and 2.05(c). 
 “Fifteen Month Facility Extension Option” has the meaning specified in Section 2.14. 
 “Finance Charge” means, with respect to any Receivable, any interest, finance charges or other similar
charges payable at any time by an Obligor in connection with such Receivable not having been paid on the due date thereof. 
 “Foreign Currency Adjustment” means, as of any date of determination, an amount equal to the product of (A) the Outstanding Balance of Receivables that are denominated in Canadian
Dollars as of such date multiplied by (B) the product of (i) the largest monthly decline (in percentage terms) of the Canadian Dollar versus the Dollar during the most recent twelve months multiplied by (ii) a stress factor of 1.25.

 “Foreign Currency Long-Term Debt Rating” for any Approved Country means the rating by
S&P or Moody’s of such Approved Country’s public, long-term foreign currency debt. 
 “Four Party Agreement” means that certain Third Amended and Restated Four Party Agreement for Sold Accounts (General), dated as of the date hereof, among ACI, the Seller, the Agent and the Insurer. 
 “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing,
holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. 
 “Gross Receivables Pool Balance” means at any time the Outstanding Balance of all Pool Receivables. 
 “GST” means all goods and services tax payable under Part IX of the Excise Tax Act (Canada), all QST and all harmonized sales tax in the Provinces of Nova Scotia,
Newfoundland and New Brunswick payable under the Excise Tax Act (Canada), as such statutes may be amended, modified, supplemented or replaced from time to time, including any successor statute. 
 “Guaranty Agreement” means the Guaranty and Undertaking Agreement dated as of the date hereof among the
Affiliated Debtors party thereto as guarantors, ACI and the Agent. 
 “Guarantor” means each
Affiliated Debtor that is a party to the Guaranty Agreement as a guarantor thereunder. 
  

 -13- 

 “Incipient Event of Termination” means an event that but
for notice or lapse of time or both would constitute an Event of Termination. 
 “Indemnified
Amounts” has the meaning specified in Section 9.01. 
 “Indemnified Party” has
the meaning specified in Section 9.01. 
 “Insurance Deductible Reserve” means at any time
an amount equal to 8.5% of the portion of the Net Receivables Pool Balance allocable to International Receivables. 
 “Insurance Policy” means that certain Accounts Receivable Policy (Shipments) General Terms and Conditions, plus the Coverage Certificate effective September 1, 2008 (together with all schedules and endorsements and
other documents issued by the Insurer in connection therewith), together with any replacement Coverage Certificates, issued by the Insurer to ACI, a copy of which is annexed hereto as Annex H. 
 “Insurance Policy Event” means the occurrence of any of the following: (i) the Insurance Policy shall,
for any reason, be terminated or otherwise no longer be in full force and effect, (ii) an event of the type described in Section 7.01(g) shall occur with respect to either entity comprising the Insurer or (iii) either entity
comprising the Insurer fails to make a payment or payments which are due and payable under the Insurance Policy in excess of $5,000,000, either individually or in the aggregate (if any such claim is subsequently paid by the Insurers then the
cumulative aggregate amount referred to above shall be reduced by the amount of any such payment). 
 “Insurance Proceeds” means any amounts paid by the Insurer under the Insurance Policy with respect to claims relating to Originator Receivables. 
 “Insurer” means, collectively, Export Development Canada and Compagnie Française d’Assurance pour le Commerce Extérieur – Canada Branch.

 “Intercompany Agreement (Undertaking Agreements)” means that certain Intercompany Agreement
(Undertaking Agreements) between ACSC and ACI dated as of December 21, 2007. 
 “Intercreditor
Agreement” means the Intercreditor Agreement dated as of April 1, 2008 by and among the Agent (as assignee of CLB), Goldman Sachs Credit Partners L.P., as Lender Agent, the Seller and the Originators. 
 “Interest Account” has the meaning specified in the US Interim Order (at any time prior to the entry of the
US Final Order) or the US Final Order (thereafter). 
 “International Receivable” means a
Receivable the Obligor of which has a billing address in an Approved Country other than the United States or Canada. 
 “Liquidation Day” means, for any Receivable Interest, (i) each day during a Yield Period for such Receivable Interest on which the conditions set forth in Section 3.02 are not 
  

 -14- 

 
satisfied, and (ii) each day which occurs on or after the Termination Date for such Receivable Interest. 
 “Liquidation Fee” means, for any Yield Period for which Yield is computed by reference to the Adjusted Eurodollar Rate and a reduction of Capital is made for any
reason on any day other than the last day of such Yield Period, the amount, if any, by which (A) the additional Yield (calculated without taking into account any Liquidation Fee or any shortened duration of such Yield Period pursuant to clause
(iii) of the definition thereof) which would have accrued from the date of such repayment to the last day of such Yield Period on the reductions of Capital of the Receivable Interest relating to such Yield Period had such reductions remained as
Capital, exceeds (B) the income, if any, received by the Banks from the investment of the proceeds of such reductions of Capital. 
 “Liquidity” has the meaning specified in the Guaranty Agreement. 
 “Lock-Box” means a post office box administered by a Deposit Bank for the purpose of receiving Collections. 
 “Majority Banks” shall mean at any time two or more Banks that are not Defaulted Banks having more than 50% of the aggregate Bank Commitments of Banks that are not
Defaulted Banks or, after the Facility Termination Date, more than 50% of the Aggregate Capital. 
 “Material Adverse Effect” means (A) a material adverse effect on (i) the financial condition, business, operations, assets, liabilities or prospects of the Seller, individually, or of the Abitibi Entities taken as
a whole, (ii) the ability of ACI, the Seller or any Guarantor to perform any of its obligations under any of the Transaction Documents to which it is a party, (iii) the legality, validity or enforceability of the Transaction Documents
(including, without limitation, the validity, enforceability or priority of the ownership or security interests granted thereunder) or (iv) the collectibility of the Receivables Pool or (B) a material impairment of the rights or remedies
of the Agent or the Banks under any of the Transaction Documents; provided that a Material Adverse Effect shall not be deemed to exist as a result of the filing or the effect of the Bankruptcy Case and the Canadian Case or the circumstances
and events leading up thereto. 
 “Material Debt” means Debt in an aggregate principal amount
exceeding $10,000,000 (or the Canadian Dollar Equivalent thereof) incurred after the Petition Date. 
 “Monthly Report” means a report in substantially the form of Annex A-1 hereto and containing such additional information as the Agent may reasonably request from time to time, furnished by the Servicer pursuant to
Section 6.02(g). 
 “Moody’s” means Moody’s Investors Service, Inc. and any
successor thereto. 
 “Multiemployer Plan” means a multiemployer plan defined as such in
Section 3(37) of ERISA to which contributions have been made by ACI or any of its Subsidiaries or any ERISA Affiliate which is covered by Title IV of ERISA within the preceding six calendar years, and as to which ACI or any of its Subsidiaries
could reasonably be expected to have any liability. 
  

 -15- 

 “Net Outstanding Balance” means at any time with respect to
any Receivable, the Outstanding Balance of such Receivable less, to the extent applicable to such Receivable, any amounts described in clauses (vi), (vii) (exclusive of dilution reserves), (viii) or (ix) of the definition of Net
Receivables Pool Balance. 
 “Net Receivables Pool Balance” means at any time the Outstanding
Balance of all Pool Receivables reduced, without duplication, by the sum of (i) the Net Outstanding Balance of all Pool Receivables that are not Eligible Receivables, (ii) the aggregate amount by which the Net Outstanding Balance of
Eligible Receivables of each Obligor then in the Receivables Pool (net of applicable Receivables Valuation Reserves) exceeds the product of (x) the Concentration Limit for such Obligor multiplied by (y) the Net Receivables Pool Balance
(determined solely for this purpose without regard to clauses (ii) and (x) of this definition or clause (b) of the definition of Receivables Valuation Reserves), (iii) the aggregate outstanding amount of deposits received by the
Originators from any Obligors with respect to Receivables then in the Receivables Pool, (iv) the aggregate amount of Unapplied Cash/Credit Memos at such time, (v) the aggregate of all potential set off amounts representing amounts owed by
the Originators (or any Affiliate of an Originator) to any Obligor, (vi) the aggregate amount of PST (in the case of Receivables owing by an Obligor that has a billing address in Canada), sales taxes (in the case of Receivables other than
Receivables owing by an Obligor that has a billing address in Canada) and other similar types of sales taxes (in each case, to the extent included in the Outstanding Balance of Receivables then in the Receivables Pool), (vii) the Receivables
Valuation Reserves, (viii) an amount equal to the then aggregate outstanding balance of all Off-Invoice Allowance Accruals, (ix) an amount equal to the then aggregate amount of early payment discounts that are expected to be taken by
Obligors with respect to the Outstanding Balance of all Receivables, (x) the aggregate amount by which the Net Outstanding Balance of Eligible Receivables of all Obligors with a billing address in an Approved Country other than Canada or the
United States then in the Receivables Pool exceeds the product of (x) the Country Concentration Limit for such Approved Country multiplied by (y) the Net Receivables Pool Balance (determined solely for this purpose without regard to
clauses (ii) and (x) of this definition or clause (b) of the definition of Receivables Valuation Reserves), and (xi) the aggregate amount by which the Outstanding Balance of Eligible Receivables that are International Receivables
having payment terms in excess of 90 days after the original billing date exceeds the applicable limit under the Insurance Policy. For the purpose of determining “Net Receivables Pool Balance”, all Collections, deemed Collections
and other amounts in Canadian Dollars shall be expressed as the Dollar Equivalent thereof. 
 “New
Bank” has the meaning specified in Section 3.03. 
 “Non-Consenting Bank” has the
meaning specified in Section 10.01(b). 
 “Notice of Change of Address” has the meaning
specified in Section 10.01(e). 
 “Obligor” means a Person obligated to make payments
pursuant to a Contract. 
 “Off-Invoice Allowance Accruals” means, at any time, with respect to
a Receivable, a rebate or competitive allowance that does not appear on the face of the related invoice. 
  

 -16- 

 “Originator” means each of the Canadian Originator and the
U.S. Originator. 
 “Originator Purchase Agreement” means the Second Amended and Restated
Purchase and Contribution Agreement dated as of the date of this Agreement among the Originators, as sellers, the Seller, as purchaser, ACSC, as Servicer, and ACI, as Subservicer, as the same may be amended, modified or restated from time to time.

 “Originator Receivable” means the indebtedness of any Obligor (whether present or future and
whether a claim, book debt or a receivable) resulting from the provision or sale of merchandise, insurance or services by any Originator under a Contract (whether constituting an account, instrument, chattel paper or general intangible), and which,
(i) includes the right to payment of any Finance Charges and other obligations of such Obligor with respect thereto and, (ii) in respect of such a claim, book debt or receivable indebtedness, the Obligor of which has a billing address in
Canada, includes GST; provided, however, that the term “Originator Receivable” shall not include (x) any such indebtedness originated by ACSC, the Obligor of which has a billing address that is not in Canada or
the United States or any such indebtedness originated by ACI, the Obligor of which has a billing address that is not in any Approved Country or (y) any portion of any such indebtedness, the Obligor of which has a billing address in Canada, that
constitutes PST. 
 “Other Companies” means the Parent, the Originators and all of their
Subsidiaries except the Seller. 
 “Outstanding Balance” of any Receivable at any time means
the then outstanding principal balance thereof; provided, that to the extent that the amount of any Receivable is, under the terms of the applicable Contract, expressed in Canadian Dollars, such amount for the purposes of this definition
shall be the Dollar Equivalent thereof at the relevant time. Sales or use tax, PST and any other taxes (other than GST) and Finance Charges which may be billed in connection with a Receivable are not included in the Outstanding Balance. For purposes
of this Agreement (but without affecting the rights of the Seller against the relevant Obligor), the Outstanding Balance of a Receivable shall be reduced by the amount of any Insurance Proceeds received by the Agent with respect thereto. 

“Parent” means AbitibiBowater Inc., a Delaware corporation. 
 “Participant” has the meaning specified in Section 10.03(e). 
 “Payor” has the meaning specified in Section 10.12(b). 
 “PBGC” means Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions
under ERISA. 
 “Percentage” of any Bank means, (a) with respect to each Bank listed on
the signature pages hereof, the percentage set forth as its Percentage in Schedule I or (b) with respect to a Bank that becomes a party to this Agreement pursuant to an Assignment and Acceptance, the percentage set forth therein as such
Bank’s Percentage, in each case as such percentage may be reduced or increased by an Assignment and Acceptance entered into between such Bank and an Eligible Assignee. 
  

 -17- 

 “Person” means an individual, partnership, corporation,
limited liability company, joint stock company, trust (including a business or statutory trust), unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
 “Petition Date” means April 16, 2009, the date ACSC commenced its Bankruptcy Case in the Bankruptcy
Court. 
 “Plan” means an employee benefit plan subject to Title IV of ERISA established or
maintained by ACI or any of its Subsidiaries or any ERISA Affiliate within the six preceding calendar years, other than a Multiemployer Plan, and as to which ACI or any of its Subsidiaries could reasonably be expected to have any liability.

 “Pool Receivable” means a Receivable in the Receivables Pool. 
 “PPSA” means, with respect to any jurisdiction in Canada, the personal property security or similar
legislation applicable in such jurisdiction, including with respect to the jurisdictions of Canada other than Quebec, the Personal Property Security Act applicable in such jurisdictions, and, with respect to Quebec, the Civil Code of Quebec, in each
case as from time to time in effect. 
 “PST” means all taxes payable under the Retail Sales
Tax Act (Ontario) or any similar statute of another jurisdiction of Canada, other than GST. 
 “Purchase
Limit” means $270,000,000, as such amount may be reduced pursuant to Section 2.01(b). References to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit, as then reduced pursuant to Section 2.01(b),
minus the then Aggregate Capital. 
 “QST” means the tax payable under the Act Respecting the
Quebec Sales Tax, R.S.Q. c.T-01, as amended. 
 “Ratable Portion” has the meaning specified in
Section 2.02. 
 “Receivable” means any Originator Receivable which has been acquired by
the Seller from an Originator by purchase or by capital contribution pursuant to the Originator Purchase Agreement. 
 “Receivable Interest” means, at any time, an undivided percentage ownership interest in (i) all then outstanding Pool Receivables, (ii) all Related Security with respect to such Pool Receivables, and
(iii) all Collections with respect to, and other proceeds of, such Pool Receivables. Such undivided percentage interest shall be computed as 
  

 -18- 

							
		  		  	 C
 AC
	  	
	 where:
	  		  		  	
			
	C   	  	 =
	  	 the Capital of such Receivable Interest at the time of computation.

	AC	  	 =
	  	 the aggregate Capital of all Receivable Interests at the time of computation.

 Each Receivable Interest shall be determined from time to time pursuant to the
provisions of Section 2.03. 
 “Receivables Pool” means at any time the aggregation of
each then outstanding Receivable. 
 “Receivables Valuation Reserves” means the sum of the
following, to the extent not otherwise deducted in determining Eligible Receivables or Net Receivables Pool Balance, and without duplication of any other Receivables Valuation Reserve: 
 (a) amounts accrued or recorded by the Originators or the Seller as a reserve in respect of volume
rebates or other offsetting deductions, or in respect of credits past due; 
 (b) such
dilution reserves as the Agent in its Discretion deems appropriate and as notified by the Agent to the Seller at least three Business Days prior to the effectiveness thereof; and 
 (c) such reserves as the Agent in its Discretion deems appropriate in light of any differences between
the Coverage Certificate comprising part of the Insurance Policy on the Closing Date and any Coverage Certificate issued in replacement thereof. 
 “Recipient” has the meaning specified in Section 10.12(b), except with respect to Section 2.12. 
 “Register” has the meaning specified in Section 10.03(c). 
 “Related Fund” means any Fund that is administered or managed by (a) a Bank, (b) an Affiliate of a Bank or (c) an entity or an Affiliate of an entity that administers or
manages a Bank. 
 “Related Security” means with respect to any Receivable: 
 (i) all security interests or liens or other Adverse Claims and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all financing statements or registration applications filed against an Obligor describing any collateral
securing such Receivable; 
 (ii) all guaranties, insurance (including the Insurance Policy)
and other agreements or arrangements of whatever character from time to time 
  

 -19- 

 
supporting or securing payment of such Receivable whether pursuant to the Contract related to such Receivable or otherwise; and 
 (iii) the Contract and all other books, records and other information (including, without limitation,
computer programs, tapes, discs, punch cards, data processing software and related property and rights) relating to such Receivable and the related Obligor. 
 “Reorganization Plan” has the meaning specified in Section 2.14. 
 “Reporting Date” means any date on which a Seller Report is delivered or required to be delivered by the Servicer pursuant to Section 6.02(g). 
 “Representatives” has the meaning specified in Section 10.06(b). 
 “S&P” means Standard and Poor’s, a division of The McGraw Hill Companies, Inc. and any successor
thereto. 
 “SEC” means the Securities and Exchange Commission. 
 “Second Amended and Restated Fee Agreement” has the meaning specified in Section 3.03(q). 

“Securitization Provisions” means paragraph 28 (in respect of the Securitization Program, as defined in
the Canadian Amended Order, and sales of inventory by ACI to ACSC) and paragraphs 29 through 45.2 of the Canadian Amended Order and any other reference in the Canadian Amended Order to the receivables securitization program described in the
Transaction Documents or to this Agreement or the other Transaction Documents. 
 “Seller” has
the meaning specified in the Preliminary Statement. 
 “Seller’s Account” means the
following Deposit Account of the Seller: 
  

			
	 Bank Name:
	  	 Bank of America, LaSalle Branch

		
	 ABA/Routing No.:
	  	 [Omitted]

		
	 Account Name:
	  	 Abitibi-Consolidated U.S. Funding Corp.

		
	 Account No.:
	  	 [Omitted]

		
	 Reference:
	  	 Citicorp / Abitibi Transaction

 “Seller Report” means a Monthly Report, a Weekly
Report or a Daily Report. 
 “Servicer” means at any time the Person then authorized pursuant
to Section 6.01 to administer and collect Pool Receivables. 
  

 -20- 

 “Servicer Default” means the occurrence of any of the
following: 
 (i) The Servicer or the Subservicer (A) shall fail to perform or observe
any term, covenant or agreement under this Agreement (other than as referred to in clause (B) or (C) of this subsection (i)) and such failure shall remain unremedied for three Business Days or (B) shall fail to make when due any
payment or deposit to be made by it under this Agreement or (C) shall fail to deliver any Seller Report when required; or 
 (ii) Any representation or warranty made or deemed made by the Servicer (or any of its officers) under or in connection with this Agreement or any other Transaction Document or any information or
report delivered by the Servicer or the Subservicer pursuant to this Agreement or any other Transaction Document shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered; or 
 (iii) The Servicer or the Subservicer shall fail to pay any principal of or premium or interest on any
of its Material Debt when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement
or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or 
 (iv) (A) Other than with respect to debts incurred prior to the filing of the Bankruptcy Case or
the Canadian Case, the Servicer or the Subservicer shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or
(B) any proceeding (other than the Bankruptcy Case or the Canadian Case) shall be instituted by or against the Servicer or the Subservicer seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or arrangement of debt, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain
undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a

  

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receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or (C) the Servicer or the Subservicer shall take any corporate
action to authorize any of the actions set forth above in this clause (iv); or 
 (v) There shall have occurred any event which may materially adversely affect the ability of the Servicer or the Subservicer to collect Pool Receivables or otherwise perform its obligations under this Agreement and the other
Transaction Documents, other than the filing or the effect of the Bankruptcy Case and the Canadian Case or the circumstances and events leading up thereto; or 
 (vi) One or more judgments for the payment of money in an aggregate amount in excess of $10,000,000 or the Canadian Dollar Equivalent thereof (except to the extent covered by
insurance as to which the insurer has acknowledged such coverage in writing) shall be rendered against the Servicer or the Subservicer or a combination thereof, and the same shall remain undischarged for a period of 60 consecutive days during
which execution shall not be effectively stayed, or any action shall be taken by a judgment creditor to attach or levy upon any assets of the Servicer or the Subservicer to enforce any such judgment; or 
 (vii) an “Event of Default” as defined in the Guaranty Agreement shall occur with respect to
the Servicer or the Subservicer. 
 “Servicer Fee” has the meaning specified in
Section 2.05(a). 
 “Settlement Date (Capital)” means the Business Day immediately
following the due date of each Weekly Report; provided that if the Termination Date for all Receivable Interests shall have occurred, the “Settlement Dates (Capital)” shall be the date(s) selected by the Agent or, in the absence of
any such selection, the “Settlement Date (Capital)” shall be each Business Day. 
 “Settlement
Date (Yield and Fees)” for any Receivable Interest means the second Business Day of each calendar month (commencing with the calendar month immediately following the calendar month in which such Receivable Interest was purchased);
provided, however, that if the Termination Date for all Receivable Interests shall have occurred, the “Settlement Date (Yield and Fees)” for all Receivable Interests shall be the date(s) selected by the Agent, or in the
absence of any such selection, the “Settlement Date (Yield and Fees)” for all Receivable Interests shall be each Business Day. 
 “Significant Incipient Event of Termination” means an event that, but for notice or lapse of time or both, would constitute an Event of Termination pursuant to clause (g)(ii) or
(n) of Section 7.01. 
 “Special Indemnified Amounts” has the meaning specified in
Section 6.07. 
 “Special Indemnified Party” has the meaning specified in
Section 6.07. 
  

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 “Stated Termination Date” means June 16, 2010;
provided that (i) such date is subject to extension pursuant to Sections 2.14 and 2.15 and (ii) if such date is not a Business Day, the Stated Termination Date shall be the immediately preceding Business Day. 
 “Subservicer” has the meaning specified in Section 6.01. 
 “Subsidiary” means any corporation or other entity of which securities having ordinary voting power to
elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Parent, the Seller or an Originator, as the case may be, or one or more Subsidiaries, or by the Parent, the
Seller or any Originator, as the case may be, and one or more Subsidiaries. 
 “Super Majority Banks” means at any time two or more Banks that are not Defaulted Banks having more than 66 2/3% of the aggregate Bank Commitments of Banks that are not Defaulted Banks or, after the Facility Termination Date, more than 66 2/3% of the Aggregate Capital. 
 “Superpriority Guaranty Claims” has the meaning specified in the US Interim Order (at any time prior to the
entry of the US Final Order) or the US Final Order (thereafter). 
 “Superpriority Receivables
Claims” has the meaning specified in the US Interim Order (at any time prior to the entry of the US Final Order) or the US Final Order (thereafter). 
 “Syndication Agent” means Barclays Capital Inc. in its capacity as Syndication Agent in respect of the ARRPA. 
 “Tangible Net Worth” means at any time the excess of (i) the sum of (a) the product of
(x) 100% minus the Discount (as such term is defined in the Originator Purchase Agreement) multiplied by (y) the Outstanding Balance of all Receivables other than Defaulted Receivables plus (b) cash and cash equivalents of the Seller,
minus (ii) the sum of (a) Capital plus (b) the Deferred Purchase Price. To the extent any amounts referenced in the preceding sentence are not denominated in Dollars, the Dollar Equivalent thereof shall be utilized. 
 “Tax Convention” means a convention for the avoidance of double income taxation between Canada and another
country, including the Canada – United States Tax Convention (1980), as amended from time to time. 
 “Termination Amount” has the meaning specified in Section 2.04(e). 
 “Termination Date” for any Receivable Interest means the earlier of (a) the Business Day which the Seller so designates by notice to the Agent at least one Business Day in advance for such Receivable Interest and
(b) the Facility Termination Date. 
 “Transaction Document” means any of this Agreement,
the Originator Purchase Agreement, the Guaranty Agreement, the Intercreditor Agreement, the Undertaking (Originator), the Undertaking (Servicer), the Insurance Policy, the Four Party Agreement, the Deposit Account Agreements, the Fee Agreement, the
Intercompany Agreement (Undertaking 
  

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Agreements), all amendments to any of the foregoing and all other agreements and documents delivered and/or related hereto or thereto. 
 “Treaty Resident” means a Person that is or is deemed to be a resident of a country with which Canada has a
Tax Convention for purposes of that Convention, including a resident of the United States for purposes of the Canada-U.S. Convention, and that is entitled to the full benefits of such Tax Convention. 
 “Trigger Event” means (i) a Servicer Default, (ii) an Event of Termination, (iii) a
Significant Incipient Event of Termination, (iv) an event that, but for notice or lapse of time or both, would constitute a Servicer Default pursuant to clause (iv)(B) or (vi) of the definition thereof and (v) Liquidity shall be
less than $65,000,000 for five consecutive days or below $50,000,000 at any time. A Trigger Event shall be deemed to continue (x) with respect to clauses (i)-(iv) above, until the event giving rise thereto is cured or waived in accordance
with this Agreement or (y) with respect to clause (v) above, until such time, if any, as Liquidity shall have been greater than $100,000,000 for 30 consecutive days. 
 “UCC” means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction. 
 “Unapplied Cash/Credit Memos” means, as at any time, the sum of (i) the aggregate amount of
Collections (expressed as the Dollar Equivalent, if any such amount is in Canadian Dollars) on hand at such time for payment on account of any Eligible Receivables, the Obligor of which has not been identified and (ii) the aggregate Outstanding
Balance of all Receivables in respect of which any credit memo issued by the applicable Originator or the Seller is outstanding at such time to the extent deemed Collections have not been paid pursuant to Section 2.04(f). 
 “Undertaking (Originator)” means the Undertaking Agreement (Originator) dated as of October 27, 2005
made by ACI in favor of the Seller and relating to obligations of the U.S. Originator, substantially in the form of Annex F hereto, as the same may be amended, modified or restated from time to time. 
 “Undertaking (Servicer)” means the Undertaking Agreement (Servicer) dated as of October 27, 2005 made
by ACI in favor of the Agent and the Banks and relating to obligations of the Servicer, substantially in the form of Annex G hereto, as the same may be amended, modified or restated from time to time. 
 “US Final Order” means the final order or judgment of the Bankruptcy Court as entered on the docket of the
Bankruptcy Court approving the transactions contemplated by this Agreement, the Originator Purchase Agreement and the Guaranty Agreement, in substantially the form attached hereto as Exhibit B, which order or judgment is in effect and not stayed.

 “US Interim Order” means the order or judgment of the Bankruptcy Court as entered on the
docket of the Bankruptcy Court with respect to the Bankruptcy Case substantially in the form of Exhibit A-2 hereto, approving, inter alia, the transactions contemplated by this Agreement, the Originator Purchase Agreement and the Guaranty
Agreement. 
  

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 “U.S. Originator” means ACSC. 
 “US Person” has the meaning specified in the Guaranty Agreement. 
 “Weekly Report” means a report in substantially the form of Annex A-2 hereto and containing such additional
information as any Agent may reasonably request from time to time, furnished by the Servicer pursuant to Section 6.02(g)(i). 
 “Yield” means for each Receivable Interest for each Yield Period: 
  

			
	YR × C × ED + LF	 	
	       360	 	

  

							
	 where:
	 		  		  	
				
		 	 YR
	  	=	  	 the Yield Rate for such Receivable Interest for such Yield Period;

		 	 C
	  	=	  	 the Capital of such Receivable Interest during such Yield Period;

		 	 ED
	  	=	  	 the actual number of days elapsed during such Yield Period;

		 	 LF
	  	=	  	 the Liquidation Fee, if any, for such Receivable Interest for such Yield Period;

 provided that no provision of this Agreement shall require the payment or
permit the collection of Yield in excess of the maximum permitted by applicable law; and provided further that Yield for any Receivable Interest shall not be considered paid by any distribution to the extent that at any time all or a
portion of such distribution is rescinded or must otherwise be returned for any reason. 
 “Yield
Period” means, with respect to any Receivable Interest, each successive period of from one to and including 29 days, or a period of one month, as the Seller shall select and the Agent may approve on notice by the Seller received by the
Agent (including notice by telephone, confirmed in writing) not later than 11:00 A.M. (New York City time) on (A) the day which occurs three Business Days before the first day of such Yield Period (in the case of Yield Periods in respect of
which Yield is computed by reference to the Adjusted Eurodollar Rate) or (B) the first day of such Yield Period (in the case of Yield Periods in respect of which Yield is computed by reference to the Alternate Base Rate), each such Yield Period
for such Receivable Interest to commence on the last day of the immediately preceding Yield Period for such Receivable Interest (or, if there is no such Yield Period, on the date of purchase of such Receivable Interest), except that if the
Agent shall not have received such notice, or the Agent and the Seller shall not have so mutually agreed, before 11:00 A.M. (New York City time) on such day, such Yield Period shall be one day; 
  

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 provided, however, that: 
 (i) any Yield Period (other than a Yield Period of one day) which would otherwise end on a day which is
not a Business Day shall be extended to the next succeeding Business Day (provided, however, if Yield in respect of such Yield Period is computed by reference to the Adjusted Eurodollar Rate, and such Yield Period would otherwise end
on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Yield Period shall end on the next preceding Business Day); 
 (ii) in the case of any Yield Period of one day, (A) if such Yield Period is the initial Yield
Period for a Receivable Interest, such Yield Period shall be the day of the purchase of such Receivable Interest; (B) any subsequently occurring Yield Period which is one day shall, if the immediately preceding Yield Period is more than one
day, be the last day of such immediately preceding Yield Period and, if the immediately preceding Yield Period is one day, be the day next following such immediately preceding Yield Period; and (C) if such Yield Period occurs on a day
immediately preceding a day which is not a Business Day, such Yield Period shall be extended to the next succeeding Business Day; and 
 (iii) in the case of any Yield Period for any Receivable Interest which commences before the Termination Date for such Receivable Interest and would otherwise end on a date occurring after such
Termination Date, such Yield Period shall end on such Termination Date and the duration of each Yield Period which commences on or after the Termination Date for such Receivable Interest shall be of such duration (including, without limitation, one
day) as shall be selected by the Agent or, in the absence of any such selection, each period of thirty days from the last day of the immediately preceding Yield Period. 
 “Yield Rate” for any Yield Period for any Receivable Interest means an interest rate per annum equal to the Adjusted Eurodollar Rate for such Yield Period plus the
Applicable Margin; provided, however, that in case of: 
 (i) any Yield Period
on or prior to the first day of which a Bank shall have notified the Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts
that it is unlawful, for such Bank to fund such Receivable Interest at the Yield Rate set forth above (and such Bank shall not have subsequently notified the Agent that such circumstances no longer exist), 
 (ii) any Yield Period of one to (and including) 29 days (it being understood and agreed that this
clause (ii) shall not be applicable to a Yield Period for which Yield is to be computed by reference to the Adjusted Eurodollar Rate that is intended to have a one-month duration but due solely to LIBOR interest period convention the duration
thereof will be less than 30 days), or 
  

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 (iii) any Yield Period for a Receivable Interest the
Capital of which is less than $10,000,000, 
 the “Yield Rate” for such Yield Period shall be an interest rate
per annum equal to the Alternate Base Rate in effect from time to time during such Yield Period plus the Applicable Margin; provided further that at any time when an Event of Termination shall exist, the “Yield Rate”
for such Yield Period shall be an interest rate per annum equal to the Alternate Base Rate or Adjusted Eurodollar Rate, as applicable, in effect from time to time during such Yield Period plus the Applicable Margin plus 2.0%. 
 Section 1.02 Other Terms. (a) All accounting terms not specifically defined herein shall be construed
in accordance with Canadian generally accepted accounting principles. All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9. 
 (a) Except where the context requires otherwise, the definitions in Section 1.01 shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. Unless otherwise stated, references to Sections, Articles, Schedules and Exhibits made herein are to Sections, Articles, Schedules or
Exhibits, as the case may be, of this Agreement. “Writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words in a visible form. References to any agreement or contract
are to such agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof. References to any Person include the successors and permitted assigns of such Person. 
 ARTICLE II 
 AMOUNTS
AND TERMS OF THE PURCHASES 
 Section 2.01 Purchase Facility. (a) On the terms and
conditions set forth herein, the Banks shall, ratably in accordance with their respective Bank Commitments, purchase Receivable Interests from the Seller from time to time during the period from the date hereof to the Facility Termination Date.
Under no circumstances shall the Banks be obligated to make any such purchase if after giving effect to such purchase the aggregate outstanding Capital of Receivable Interests would exceed the lesser of the Purchase Limit and Collateral
Availability. 
 (b) The Seller may at any time, upon at least five Business Days’ notice to the
Agent, terminate the facility provided for in this Agreement in whole or, from time to time, reduce in part, without premium or penalty, the unused portion of the Purchase Limit; provided that each partial reduction shall be in the amount of
at least $10,000,000 or larger integral multiple of $5,000,000. 
 (c) On the terms and conditions set
forth herein, the Agent, on behalf of the Banks which own Receivable Interests, shall have the Collections attributable to such Receivable 
  

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Interests automatically reinvested pursuant to Section 2.04 in additional undivided percentage interests in the Pool Receivables by making an appropriate readjustment of such Receivable
Interests. 
 Section 2.02 Making Purchases. (a) Each purchase by the Banks shall be
made on at least one Business Day’s notice (if the applicable Yield Rate is to be based on the Alternate Base Rate) or three Business Days’ notice (if the applicable Yield Rate is to be based on the Adjusted Eurodollar Rate) from the
Seller to the Agent received not later than 12:30 p.m. (New York City time) on the specified date; provided that no more than five Receivable Interests at any one time outstanding may have a Yield Rate based on the Adjusted Eurodollar Rate
and that no more than one such notice may be submitted by the Seller in any week. Each such notice of a purchase shall be in the form of Annex D and shall specify (i) the amount requested to be paid to the Seller (such amount being referred to
herein as the initial “Capital” of the Receivable Interest then being purchased), (ii) the date of such purchase (which shall be a Business Day), and (iii) if the Yield Rate based on the Adjusted Eurodollar Rate is to
apply to such Receivable Interest, the duration of the initial Yield Period for such Receivable Interest. The Agent shall promptly send notice of the proposed purchase to all of the Banks concurrently by telecopier, telex or cable specifying the
date of such purchase, each Bank’s Percentage multiplied by the aggregate amount of Capital of Receivable Interest being purchased (such Bank’s “Ratable Portion”), whether the Yield for the Yield Period for such Receivable
Interest is calculated based on the Adjusted Eurodollar Rate or the Alternate Base Rate, and the duration of the Yield Period for such Receivable Interest (which shall be one day if the Seller has not selected another period). 
 (b) On the date of each such purchase of a Receivable Interest, each Bank shall, upon satisfaction of the applicable
conditions set forth in Article III, make available to the Agent in same day funds an amount equal to its Ratable Portion of the initial Capital of such Receivable Interest, by deposit of such Ratable Portion to the Agent’s Account, and,
after receipt by the Agent of such funds, the Agent shall cause such funds to be made immediately available to the Seller at the Seller’s Account. 
 (c) Effective on the date of each purchase pursuant to this Section 2.02 and each reinvestment pursuant to Section 2.04, the Seller hereby sells and assigns to the Agent, for the ratable
benefit of the Banks, an undivided percentage ownership interest, to the extent of the Receivable Interest then being purchased or reinvested, in each Pool Receivable then existing and in the Related Security and Collections with respect thereto.

 (d) Unless the Agent shall have received notice from a Bank prior to the date of any purchase of
Receivable Interests that such Bank will not make available to the Agent such Bank’s Ratable Portion, the Agent may assume that such Bank has made such Ratable Portion available to the Agent on the date of such Purchase in accordance with
Section 2.02(a), and the Agent may, in reliance upon such assumption, make available to the Seller at the Seller’s Account on such date a corresponding amount. If and to the extent that such Bank shall not have made such Ratable Portion
available to the Agent and the Agent has made such Ratable Portion available to the Seller, such Bank and the Seller severally agree to pay to the Agent promptly on demand such corresponding amount together with interest thereon, for each day from
the date such amount is made available to the Seller until the date such amount is repaid to the Agent, at 
  

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 (i) in the case of the Seller, the Yield Rate applicable to such amount and (ii) in the
case of such Bank, the Federal Funds Rate. If such Bank shall repay to the Agent such corresponding amount, such amount so repaid shall constitute such Purchaser’s Ratable Portion of such purchase for purposes of this Agreement. 
 (e) Each Bank’s obligation shall be several, such that the failure of any Bank to make available to the Seller any
funds in connection with any purchase shall not relieve any other Bank of its obligation, if any, hereunder to make funds available on the date of such purchase, but no Bank shall be responsible for the failure of any other Bank to make funds
available in connection with any purchase. 
 (f) In the event that any Bank shall have defaulted in its
obligation to purchase Receivable Interests hereunder (for so long as such Bank has not remedied its default to purchase Receivable Interests, a “Defaulted Bank”), the Seller shall have the right, at its own expense (which shall
include the processing and recordation fee referred to in Section 10.03(b)), upon notice to such Bank and the Agent, to require such Bank to transfer and assign without recourse (in accordance with and subject to the restrictions contained in
Section 10.03) all its interests, rights and obligations hereunder to another Eligible Assignee, which shall assume such obligations; provided, however, that (i) no such assignment shall conflict with any applicable law, rule
or regulation or order of any governmental authority and (ii) the assignee or the Seller shall pay to the affected Bank in immediately available funds on the date of such assignment the amounts of its Capital, accrued Yield and Fees thereon and
all other obligations accrued for its account or owed to it hereunder (including the additional amounts asserted and payable pursuant to Section 2.08 or 2.10, if any). 
 Section 2.03 Receivable Interest Computation. Each Receivable Interest shall be initially computed on its date of purchase (or, in the case of the Receivable
Interests outstanding immediately prior to the Closing Date, on the Closing Date). Thereafter until the Termination Date for such Receivable Interest, such Receivable Interest shall be automatically recomputed (or deemed to be recomputed) on each
day on which there is an increase or decrease in the amount of Capital of such Receivable Interest or any other Receivable Interest. Any Receivable Interest, as computed (or deemed recomputed) as of the day immediately preceding the Termination Date
for such Receivable Interest, shall thereafter remain constant. Each Receivable Interest shall become zero when Capital thereof and Yield thereon shall have been paid in full, and all Fees and other amounts owed by the Seller hereunder to the Banks
or the Agent are paid and the Servicer shall have received the accrued Servicer Fee thereon. 
 Section 2.04 Settlement Procedures. (a) Collection of the Pool Receivables shall be administered by a Servicer, in accordance with the terms of Article VI of this Agreement. The Seller shall provide to the
Servicer (if other than the Seller) on a timely basis all information needed for such administration, including notice of the occurrence of any Liquidation Day and current computations of each Receivable Interest. 
 (b) The Servicer shall, on each day on which Collections of Pool Receivables are received by it: 
 (i) with respect to each Receivable Interest, set aside and hold in trust (but not physically segregate)
for the Banks that hold such Receivable

  

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Interest, out of the percentage of such Collections represented by such Receivable Interest, an amount equal to the Yield, Fees and Servicer Fee accrued through such day for such Receivable
Interest and not previously set aside; 
 (ii) with respect to each Receivable Interest, if
such day is not a Liquidation Day for such Receivable Interest, reinvest with the Seller on behalf of the Banks on a pro rata basis the percentage of such Collections represented by such Receivable Interest (net of any amounts set aside pursuant to
Section 2.04(b)(i)); 
 (iii) if such day is a Liquidation Day for (x) any one or
more (but not all) Receivable Interests, set aside and hold in trust (and, at the request of the Agent, segregate) for the Banks, the percentage of such Collections represented by such Receivable Interests, or (y) all of the Receivable
Interests, set aside and hold in trust (and, at the request of the Agent, segregate) all of the remaining Collections received by the Servicer on such date (but not in excess of the Capital of such Receivable Interests and any other amounts payable
by the Seller hereunder); provided that if amounts are set aside and held in trust on any Liquidation Day occurring prior to the Termination Date for the applicable Receivable Interest, and thereafter prior to the next occurring Settlement
Date (Capital) the conditions set forth in Section 3.02 are satisfied or waived by the Agent, such previously set aside amounts shall, to the extent representing a return of Capital, be reinvested in accordance with the preceding
subsection (ii) on the day of such subsequent satisfaction or waiver of conditions; and 
 (iv) during such times as amounts are required to be reinvested in accordance with the foregoing subsection (ii) or the proviso to subsection (iii), release to the Seller for its own account any Collections in excess both of
such amounts and of the amounts that are required to be set aside pursuant to subsection (i) above. 
 (c) [Intentionally Omitted]. 
 (d) The Servicer shall deposit into the Agent’s Account,
(i) on the Settlement Date (Yield and Fees) for each Receivable Interest, Collections held for the Banks with respect to Yield, Fees and other amounts (other than Capital) that relate to such Receivable Interest pursuant to
Section 2.04(b), (ii) on each Settlement Date (Capital) following delivery of a Seller Report which shows that the Aggregate Capital exceeded the Collateral Availability (as of the related Reporting Date), all other Collections held for
the Banks pursuant to clause (iii) of Section 2.04(b); provided, however, that the aggregate amount deposited in the Agent’s Account pursuant to this clause (ii) with respect to any Seller Report shall not exceed an
amount such that, after giving effect to the application of such amount to the reduction of Capital with respect to the Receivable Interests shown in that Seller Report, the Aggregate Capital is equal to the largest multiple of $1,000,000 that does
not exceed the Collateral Availability and (iii) on each Settlement Date (Capital) on which Collections are held for the Banks pursuant to clause (iii) of Section 2.04(b), after giving effect to any deposits to be made on such date
pursuant to the preceding clause (ii) of this Section 2.04(d), all such remaining Collections. 
  

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 (e) Upon receipt of funds deposited into the Agent’s Account, the
Agent shall distribute them as follows: 
 (i) if such distribution occurs on a day that is
not a Liquidation Day, first to the Banks and to the Agent in ratable payment in full of all accrued Yield and Fees and then to the Servicer in payment in full of all accrued Servicer Fee; and 
 (ii) if such distribution occurs on a Liquidation Day, first to the Banks and to the Agent in ratable
payment in full of all accrued Yield and Fees, second to the Banks ratably in reduction to zero of all Capital, third to the Banks or the Agent in payment of any other amounts owed by the Seller hereunder or under any other Transaction Document, and
fourth to the Servicer in payment in full of all accrued Servicer Fee. 
 After the payment in full of Capital,
Yield, Fees and the Servicer Fee with respect to all Receivable Interests, and any other amounts payable by the Seller to the Banks or the Agent or the Servicer hereunder or under any other Transaction Document, including, without limitation, any
reimbursement obligations of the Seller with respect to any indemnity provided by the Agent under any Deposit Account Agreement (such aggregate amount, the “Termination Amount”), all additional Collections with respect to the
Receivable Interests shall be paid to the Seller for its own account. 
 (f) For the purposes of this Section 2.04:

 (i) if on any day any Pool Receivable becomes (in whole or in part) a Diluted Receivable,
the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in the amount of such Diluted Receivable; 
 (ii) if on any day any of the representations or warranties contained in Section 4.01(h) is no longer true with respect to any Pool Receivable, the Seller shall be deemed to have received on
such day a Collection of such Pool Receivable in full; 
 (iii) except as provided in
subsection (i) or (ii) of this Section 2.04(f), or as otherwise required by applicable law or the relevant Contract, all Collections received from an Obligor of any Receivables shall be applied to the Receivables of such Obligor in
the order of the age of such Receivables, starting with the oldest such Receivable, unless such Obligor designates its payment for application to specific Receivables; 
 (iv) if and to the extent the Agent or the Banks shall be required for any reason to pay over to an
Obligor any amount received on its behalf hereunder, such amount shall be deemed not to have been so received but rather to have been retained by the Seller and, accordingly, the Agent or the Banks, as the case may be, shall have a claim against the
Seller for such amount, payable

  

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when and to the extent that any distribution from or on behalf of such Obligor is made in respect thereof. 
 (g) On the Facility Termination Date, the Seller shall pay to the Agent for its account and the account of the Banks and the Servicer the Termination Amount. 
 (h) All amounts payable by the Seller or the Servicer under this Agreement to the Agent for its own account or for the
account of the Banks shall be paid in Dollars. The purchase price for Receivable Interests and all other amounts payable by the Banks under this Agreement shall be payable in Dollars. 
 (i) All payments in respect of Yield and Capital (x) shall be apportioned among all Receivable Interests to which
such payments relate and (y) shall be made to each Bank on a pro rata basis in accordance with such Bank’s Percentage. 
 Section 2.05 Fees. (a) Each Bank shall pay to the Servicer and the Subservicer an aggregate fee (the “Servicer Fee”) in respect of each Receivable Interest (or
interest therein) owned by it in an amount equal to its Percentage of 1/2 of 1% per annum multiplied by the average daily portion of the Gross Receivables Pool Balance allocable to such Receivable Interest, from the date of purchase of such
Receivable Interest until the later of the Termination Date for such Receivable Interest or the date on which the Capital of such Receivable Interest is reduced to zero, payable on each Settlement Date (Yield and Fees) for such Receivable Interest.
So long as ACSC is the Servicer and ACI is the Subservicer, the Servicer hereby directs the Banks to pay 80% of the Servicer Fee to the Subservicer and 20% of the Servicer Fee to the Servicer. Upon three Business Days’ notice to the Agent, the
Servicer (if not the Originator, the Seller or its designee or an Affiliate of the Seller) may elect to be paid, as such fee, another percentage per annum on the average daily aggregate Outstanding Balance of Receivables, but in no event in excess
of 110% of the actual and reasonable costs and expenses of the Servicer in administering and collecting the Receivables in the Receivables Pool. Notwithstanding anything in this Agreement to the contrary, the Servicer Fee shall be payable only from
Collections pursuant to, and subject to the priority of payment set forth in, Section 2.04, and shall in no event constitute a liability of or give rise to a claim against any Bank. So long as ACSC is acting as the Servicer hereunder and ACI is
acting as the Subservicer, amounts paid as the Servicer Fee pursuant to this Section 2.05(a) shall reduce, on a dollar for dollar basis, the obligation of the Seller to pay the “Servicer Fee” pursuant to Section 6.03 of
the Originator Purchase Agreement, provided that such obligation of the Seller shall in no event be reduced below zero. 
 (b) The Seller shall pay to the Agent and the Syndication Agent certain fees in the amounts and on the dates set forth in that certain fee agreement between the Seller and the Agent dated May 4,
2009 and that certain fee agreement between the Seller and the Syndication Agent dated May 18, 2009 (the “Fee Agreements”). 
 (c) The Seller shall pay to the Agent for the account of the Banks ratably unused commitment fees on the daily average amount by which the aggregate Bank Commitments exceed the Aggregate Capital,
such fees to accrue from the date hereof through the Facility Termination Date, at the rate of 1.50% per annum, payable in arrears on each Settlement Date (Yield and Fees). 
  

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 Section 2.06 Payments and Computations,
Etc. (a) All amounts to be paid or deposited by the Seller or the Servicer hereunder shall be paid or deposited no later than 11:00 A.M. (New York City time) on the day when due in same day funds to the Agent’s Account.

 (b) All computations of Yield, fees, and other amounts hereunder shall be made on the basis of a year of
360 days for the actual number of days (including the first but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made on the
next succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit. 
 Section 2.07 Dividing or Combining Receivable Interests. Either the Seller or the Agent may, upon notice to the other party received at least three Business Days prior to the last day of
any Yield Period in the case of the Seller giving notice, or up to the last day of such Yield Period in the case of the Agent giving notice, either (i) divide any Receivable Interest into two or more Receivable Interests having aggregate
Capital equal to the Capital of such divided Receivable Interest, or (ii) combine any two or more Receivable Interests originating on such last day or having Yield Periods ending on such last day into a single Receivable Interest having Capital
equal to the aggregate of the Capital of such Receivable Interests. 
 Section 2.08 Increased
Costs. (a) Without duplication with respect to any amounts payable pursuant to Section 2.10 and excluding amounts specifically excluded from the definition of “Taxes” as set forth in Section 2.10 and, without duplication
of any amounts otherwise payable as interest hereunder, if, after the date hereof, the Agent, any Bank, or any of their respective Affiliates (each, an “Affected Person”) determines that compliance with any law or regulation or any
guideline or request from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of the capital required or expected to be maintained by such Affected Person and such Affected
Person determines that the amount of such capital is increased by or based upon the existence of any commitment to make purchases of or otherwise to maintain the investment in Pool Receivables or interests therein related to this Agreement or to the
funding thereof and other commitments of the same type, then, upon demand by such Affected Person (with a copy to the Agent), the Seller shall immediately pay to the Agent for the account of such Affected Person (as a third-party beneficiary), from
time to time as specified by such Affected Person, additional amounts sufficient to compensate such Affected Person in the light of such circumstances, to the extent that such Affected Person reasonably determines such increase in capital to be
allocable to the existence of any of such commitments; provided, however, that no Eligible Assignee or Participant shall be entitled to receive any greater payment under this Section 2.08(a) than such Affected Person would have been entitled to
receive with respect to the rights assigned, participated or otherwise transferred unless the circumstances giving rise to such greater payment occurred after the date of such assignment, participation or transfer. A certificate as to such amounts
submitted to the Seller and the Agent by such Affected Person shall be conclusive and binding for all purposes, absent manifest error. 
 (b) Without duplication with respect to any amounts payable pursuant to Section 2.10 and excluding amounts specifically excluded from the definition of “Taxes” as set

  

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forth in Section 2.10 and, without duplication of any amounts otherwise payable as interest hereunder, if, after the date hereof, due to either (i) the introduction of or any change
(other than any change by way of imposition or increase of reserve requirements which are included in the calculation of the Eurodollar Rate Reserve Percentage) in or in the interpretation of any law or regulation or (ii) compliance with any
guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Bank of agreeing to purchase or purchasing, or maintaining the ownership of
Receivable Interests in respect of which Yield is computed by reference to the Adjusted Eurodollar Rate, then, upon demand by such Bank (with a copy to the Agent), the Seller shall immediately pay to the Agent, for the account of such Bank (as a
third party beneficiary), from time to time as specified by such Bank, additional amounts sufficient to compensate such Bank for such increased costs; provided, however, that no Eligible Assignee or Participant shall be entitled to
receive any greater payment under this Section 2.08(b) than such Bank would have been entitled to receive with respect to the rights assigned, participated or otherwise transferred unless the circumstances giving rise to such greater payment
occurred after the date of such assignment, participation or transfer. A certificate as to such amounts submitted to the Seller and the Agent by such Bank shall be conclusive and binding for all purposes, absent manifest error. 
 (c) Failure or delay on the part of any Affected Person or any Bank, as the case may be, to demand compensation
pursuant to this Section 2.08 shall not constitute a waiver of such Person’s right to demand such compensation; provided, that the Seller shall not be required to compensate an Affected Person or a Bank (as the case may be) pursuant
to this Section 2.08 for any increased costs incurred more than 180 days prior to the date that such Person notifies the Seller of the applicable law, regulation, guideline or request giving rise to such increased costs and of such
Person’s intention to claim compensation therefor; provided, further that, if the applicable law, regulation, guideline or request giving rise to such increased costs is retroactive, then the 180-day period referred to above shall
be extended to include the period of retroactive effect thereof. 
 Section 2.09 [Intentionally
Omitted] 
 Section 2.10 Taxes. (a) Except as otherwise required by law, any and
all payments and deposits required to be made hereunder or under any other Transaction Document by the Servicer or the Seller shall be made free and clear of and without deduction or withholding for or on account of any and all present or future
income, stamp or, without limitation, other taxes, levies, imposts, deductions, duties, fees, charges or withholdings, and all liabilities with respect thereto, excluding (A) net income taxes and franchise taxes (imposed in lieu of net
income taxes) and backup withholding taxes that are imposed on an Affected Person by the United States, a state thereof or a foreign jurisdiction under the laws of which such Affected Person is organized or any political subdivision thereof and net
income taxes and capital taxes imposed by Canada or any political subdivision thereof other than Canadian withholding taxes and other than Canadian taxes based on or measured by income or capital in connection with the Receivables or the
transactions contemplated by the Transaction Documents resulting from the Seller or any Affected Person (but in the case of any such Person that is a Treaty Resident, only directly and exclusively as a result of any breach by the Seller or the
Servicer (or any delegatee thereof, including the Subservicer) of their respective obligations under the Transaction Documents) either (x) in the case of any

  

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such Person that is a Treaty Resident, having a permanent establishment in Canada, or (y) in the case of any such Person that is not a Treaty Resident, carrying on business in Canada for the
purposes of the Canadian Tax Act, in either case solely as a result of such transactions, (B) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction (other than Canada) described in clause
(A) above, (C) any withholding taxes imposed on amounts payable to an Affected Person at the time such Affected Person becomes an Affected Person hereunder by virtue of an assignment, except to the extent that such Affected Person’s
assignor (if any) was entitled at the time of assignment, to receive additional amounts from the Servicer or the Seller with respect to such Taxes pursuant to this Section 2.10(a), or (D) any taxes (other than Canadian taxes based or
measured by income or capital in connection with the Receivables or the transactions contemplated by the Transaction Documents paid by a Person that is not a Treaty Resident which is found to be carrying on business in Canada for purposes of the
Canadian Tax Act solely by virtue of the transactions under the Transaction Documents) that are imposed as a result of any event occurring after the Affected Person becomes an Affected Person hereunder by virtue of an assignment other than a change
in law or regulation or the introduction of any law or regulation or a change in interpretation or administration of any law (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred
to as “Taxes”). If the Seller or the Servicer or any Obligor shall be required by law to deduct any Taxes from or in respect of any sum payable or deposited hereunder to (or for the benefit of) any Affected Person, (i) the
Seller, or the Servicer, as the case may be, shall make an additional payment to such Affected Person, in an amount sufficient so that, after making all required deductions (including deductions applicable to additional sums payable under this
Section 2.10), such Affected Person receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Seller or the Servicer, as the case may be, shall make such deductions and (iii) the Seller or
the Servicer, as the case may be, shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. Within 30 days after the date of any payment of Taxes, the Seller or the Servicer, as the
case may be, will furnish to the Agent, at its address referred to in Section 10.02, the original or a certified copy of a receipt evidencing payment thereof. 
 (b) In addition, the Seller agrees to pay any present or future stamp or other documentary taxes or any other excise or property taxes, charges or similar levies which arise
from any payment made hereunder or under any other Transaction Document or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any other Transaction Document (hereinafter referred to as “Other
Taxes”). 
 (c) The Seller and Servicer will indemnify each Affected Person for the full amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.10) paid by such Affected Person or deducted or withheld from any Collections (including any Taxes
or amounts on account of Taxes deducted by any Obligor) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto whether or not such Taxes or Other Taxes were correctly or legally asserted. This
indemnification shall be made within thirty days from the date the Affected Person makes written demand therefor (and a copy of such demand shall be delivered to the Agent). A certificate as to the amount of such indemnification submitted to the

  

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Seller and the Agent by such Affected Person, setting forth, in reasonable detail, the basis for and the calculation thereof, shall be conclusive and binding for all purposes absent manifest
error. 
 (d) Each Affected Person that is not (i) a citizen or resident of the United States,
(ii) a corporation, partnership or other entity created or organized in or under the laws of the United States (or any jurisdiction thereof), or (iii) any estate or trust that is subject to federal income taxation regardless of the source
of its income shall, on or prior to the date hereof (or, in the case of any Person who becomes an Affected Person after the date hereof, on or prior to the date on which it so becomes an Affected Person), deliver to the Seller two copies of either
Internal Revenue Service Form W-8BEN or Form W-8ECI and any other certificate or statement of exemption required by Treasury Regulation Section 1.1441-1(a) or Section 1.1441-6(c) or any subsequent version thereof or successors thereto,
properly completed and duly executed by such Affected Person as will permit, insofar as the laws of the United States are applicable, such payments to be made by the Servicer or Seller without withholding or at a reduced rate. Each such Affected
Person shall from time to time thereafter, upon written request from the Seller, deliver to the Seller any new certificates, documents or other evidence as described in the preceding sentence as will permit, insofar as the laws of the United States
are applicable, payments under this Agreement to be made without withholding or at a reduced rate (but only so long as such Affected Person is legally able to do so). 
 (e) The Seller and the Servicer shall not be required to pay any amounts to any Affected Person in respect of Taxes and Other Taxes pursuant to paragraphs (a), (b) and
(c) above to the extent the obligation to pay such amounts is attributable to the failure by such Affected Person to comply with the provisions of paragraph (d) above; provided, however, that should an Affected Person become
subject to Taxes because of its failure to deliver a form required hereunder, the Seller and the Servicer shall take such steps as such Affected Person shall reasonably request to assist such Affected Person to recover such Taxes, at the sole cost
and expense of such Affected Person. The Seller and the Servicer shall not be required to pay any amounts to any Affected Person, Special Indemnified Party or Indemnified Party (individually, an “Other Party”) in respect of Taxes
pursuant to paragraphs (a), (b) and (c) above or to indemnify such Other Party, as the case may be, pursuant to Section 6.07 or Section 9.01 hereof in respect of Canadian taxes based on or measured by income or capital in
connection with the Receivables or the transactions contemplated by the Transaction Documents resulting from the Seller or such Other Party, that is not a Treaty Resident, carrying on business in Canada for the purposes of the Canadian Tax Act,
solely as a result of such transactions, until the Canadian tax authority has issued an assessment of such Other Party in respect of such Canadian taxes. Such Other Party shall inform the Seller of such assessment and consider in good faith
contesting the same. 
 (f) [Reserved]. 
 (g) If an Affected Person receives a refund in respect of any Taxes or Other Taxes as to which it has been indemnified by the Seller and Servicer hereunder or with respect to
which the Seller and Servicer have paid additional amounts pursuant to this Section 2.10, it shall within 30 days from the date of such receipt pay over the amount of such refund to the Seller and Servicer, net of all reasonable out-of-pocket
expenses of such Affected Person and without interest (other than interest paid by the relevant taxation authority with respect to such refund);

  

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provided that the Seller and Servicer, upon the request of such Affected Person, agrees to repay the amount paid over to the Seller and Servicer (plus penalties, interest or other reasonable
charges) to such Affected Person in the event such Affected Person is required to repay such refund to such taxation authority. 
 Section 2.11 Security Interest. As collateral security for the performance by the Seller of all the terms, covenants and agreements on the part of the Seller (whether as Seller or
otherwise) to be performed under this Agreement or any document delivered in connection with this Agreement in accordance with the terms thereof, including the punctual payment when due of all obligations of the Seller hereunder or thereunder,
whether for indemnification payments, Yield, Capital, fees, expenses or otherwise, the Seller hereby assigns to the Agent for its benefit and the ratable benefit of the Banks, and hereby grants to the Agent for its benefit and the ratable benefit of
the Banks, a security interest in, all of the Seller’s right, title and interest in and to (A) the Originator Purchase Agreement and the Undertaking (Originator), including, without limitation, (i) all rights of the Seller to receive
moneys due or to become due under or pursuant to the Originator Purchase Agreement or the Undertaking (Originator), (ii) all security interests and property subject thereto from time to time purporting to secure payment of monies due or to
become due under or pursuant to the Originator Purchase Agreement or the Undertaking (Originator), (iii) all rights of the Seller to receive proceeds of any insurance (including, without limitation, the right to receive Insurance Proceeds),
indemnity, warranty or guaranty with respect to the Originator Purchase Agreement or the Undertaking (Originator), (iv) claims of the Seller for damages arising out of or for breach of or default under the Originator Purchase Agreement or the
Undertaking (Originator), and (v) the right of the Seller to compel performance and otherwise exercise all remedies thereunder, (B) all Receivables, whether now owned and existing or hereafter acquired or arising, the Related Security with
respect thereto and the Collections and all other assets, including, without limitation, accounts, chattel paper, goods, instruments and general intangibles (as those terms are defined in the UCC), including undivided interests in any of the
foregoing, (C) the Lock-Boxes and Deposit Accounts, and any funds on deposit in any such account, (D) all other property now or hereafter owned by the Seller, including without limitation all accounts, chattel paper, general intangibles,
inventory, equipment and other goods, documents, investment property and instruments, and (E) to the extent not included in the foregoing, all proceeds of any and all of the foregoing (the foregoing, collectively, the
“Collateral”). 
 Section 2.12 Sharing of Payments. If any Bank (for purposes
of this Section only, referred to as a “Recipient”) shall obtain payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Capital of, or Yield on, any Receivable
Interest or portion thereof owned by it in excess of its ratable share of payments made on account of the Capital of, or Yield on, all of the Receivable Interests owned by the Banks, such Recipient shall forthwith purchase from the Banks which
received less than their ratable share participations in the Receivable Interests owned by such Banks as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Bank; provided, however, that
if all or any portion of such excess payment is thereafter recovered from such Recipient, such purchase from each such other Bank shall be rescinded and each such other Bank shall repay to the Recipient the purchase price paid by such Recipient for
such participation to the extent of such recovery,

  

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together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Bank’s required payment to (b) the total amount
so recovered from the Recipient) of any interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
 Section 2.13 Repurchase Option. So long as no Event of Termination or Incipient Event of Termination would occur or be continuing after giving effect thereto, the Seller shall have the
right (but not any obligation) to repurchase that portion of each Receivable Interest sold pursuant hereto representing one or more specified Pool Receivables which are Defaulted Receivables, or otherwise identified for repurchase by the Seller in
order to conform with, or not to breach, any provision of or order under, the Foreign Extraterritorial Measures Act (Canada) or regulations thereunder, upon not less than three Business Days’ prior written notice to the Agent. Such notice shall
specify the date that the Seller desires that such repurchase occur (such date, the “Repurchase Date”) and shall identify the Receivables to be included in such repurchase. On the Repurchase Date, the Seller shall transfer to the
Agent’s Account in immediately available funds an amount equal to the lesser of (i) the Outstanding Balance of the Receivables included in such repurchase and (ii) the excess, if any, of the Aggregate Capital over the Collateral
Availability (excluding the Receivables included in such repurchase), and upon receipt thereof, the Agent and the Banks shall be deemed to assign and release, without recourse, representation or warranty, their right, title and interest in and to
the Receivables included in such repurchase. In connection with any such repurchase, the Agent shall execute and deliver, at the Seller’s request and expense, any assignment or release that the Seller may reasonably request to evidence the
repurchase of the applicable Receivables. At such time, if any, that the aggregate Outstanding Balance of all Receivables repurchased pursuant to this Section exceeds 2% of the aggregate Outstanding Balance of all Pool Receivables, the Seller will
(or will cause the Servicer or the applicable Originator to) instruct all Obligors of Receivables that are repurchased pursuant hereto to remit all of their payments in respect of such Receivables to accounts or post offices boxes other than the
Deposit Accounts or the Lock-Boxes. 
 Section 2.14 Fifteen Month Facility Extension Option.
The Seller may extend the Stated Termination Date from June 16, 2010 to September 16, 2010 (the “Fifteen Month Facility Extension Option” subject to, and the Stated Termination Date shall be so extended upon satisfaction
of, the following conditions precedent: 
 (i) the Seller shall provide written notice to
the Administrative Agent not less than 30 days nor more than 60 days prior to June 16, 2010 of its intention to exercise the Fifteen Month Facility Extension Option; 
 (ii) the Seller shall pay a fee to the Administrative Agent on or before the Stated Termination Date for
the account of the Banks on a ratable basis equal to 1.0% of the then aggregate Bank Commitments; 
 (iii) the Originators and the Guarantors shall have filed with the Bankruptcy Court and the Canadian Court a plan of reorganization (in the case of the Bankruptcy Court) and a plan of compromise or arrangement (in the case of the
Canadian

  

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Court) providing for the full repayment of the Termination Amount in cash upon consummation thereof (collectively, as the same may be amended from time to time, a “Reorganization
Plan”); 
 (iv) as of the initial Stated Termination Date, Liquidity shall be at
least US$150,000,000; and 
 (v) the conditions specified in Section 3.02(c)(i) and
(ii) shall be satisfied as of the initial Stated Termination Date. 
 The Agent will notify the Seller and the Banks
promptly upon the effectiveness of the Fifteen Month Facility Extension Option. 
 Section 2.15 Eighteen Month Facility Extension Option. Following exercise and effectiveness of the Fifteen Month Facility Extension Option, the Seller may extend the Stated Termination Date from September 16, 2010 to
December 16, 2010 (the “Eighteen Month Facility Extension Option”) subject to, and the Stated Termination Date shall be so extended upon satisfaction of, the following conditions precedent: 
 (i) the Seller shall provide written notice to the Agent not less than 30 days nor more than 60 days
prior to September 16, 2010 of its intention to exercise the Eighteen Month Facility Extension Option; 
 (ii) the Seller shall pay a fee to the Agent on or before September 16, 2010 for the account of the Banks on a ratable basis equal to 1.0% of the then aggregate Bank Commitments; 
 (iii) the Majority Banks shall have approved the extension of the Stated Termination Date to
December 16, 2010; 
 (iv) the Originators and the Guarantors shall not have withdrawn
from the Bankruptcy Court or the Canadian Court the Reorganization Plan and confirmation or approval of the Reorganization Plan shall not have been denied by the Bankruptcy Court or the Canadian Court, as applicable, at any time prior to
September 16, 2010; 
 (v) as of September 16, 2010, Liquidity shall be at least
US$150,000,000; and 
 (vi) the conditions specified in Section 3.02(c)(i) and
(ii) shall be satisfied as of September 16, 2010. 
 The Agent will notify the Seller and the Banks promptly upon the
effectiveness of the Eighteen Month Facility Extension Option. 
  

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 ARTICLE III 
 CONDITIONS OF PURCHASES 
 Section 3.01 [Intentionally
Omitted] 
 Section 3.02 Conditions Precedent to All Purchases and Reinvestments. Each
purchase and each reinvestment shall be subject to the conditions precedent that (a) in the case of each purchase, the Servicer shall have delivered to the Agent at least one Business Day prior to such purchase, in form and substance
satisfactory to the Agent, a completed Seller Report containing information covering the most recently ended reporting period for which information is required pursuant to Section 6.02(g) and demonstrating that after giving effect to such
purchase no Event of Termination or Incipient Event of Termination under Section 7.01(i) would occur, (b) in the case of each reinvestment, the Servicer shall have delivered to the Agent on or prior to the date of such reinvestment, in
form and substance satisfactory to the Agent, a completed Seller Report containing information covering the most recently ended reporting period for which information is required pursuant to Section 6.02(g), (c) on the date of such
purchase or reinvestment the following statements shall be true (and acceptance of the proceeds of such purchase or reinvestment shall be deemed a representation and warranty by the Seller and the Servicer (each as to itself) that such statements
are then true): 
 (i) The representations and warranties contained in Section 4.01(e)
and Section 4.02(e)(ii) are correct on and as of the date of any such purchase or reinvestment as though made on and as of such date and all other representations and warranties contained in Sections 4.01 and 4.02 are correct on and as of the
date of such purchase or reinvestment as though made on and as of such date (except insofar as such representations and warranties relate expressly to an earlier date certain, in which case such representations and warranties shall be correct as of
such earlier date), 
 (ii) No event has occurred and is continuing, or would result from
such purchase or reinvestment, that constitutes an Event of Termination or an Incipient Event of Termination, and 
 (iii) The Originators shall have sold or contributed to the Seller, pursuant to the Originator Purchase Agreement, all Originator Receivables arising on or prior to such date, 
 and (d) the Agent shall have received such other approvals, opinions or documents as it may reasonably request. 
 Section 3.03 Conditions Precedent to the Effectiveness of Amendment and Restatement. The effectiveness of
the ARRPA is subject to the conditions precedent that the Agent shall have received on or before the date hereof the following, each (unless otherwise indicated) dated such date, in form and substance satisfactory to the Agent: 
  

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 (a) Certified copies of the resolutions of the Board of Directors of
the Seller, ACI and ACSC and each other Guarantor approving this Agreement, the Guaranty Agreement, the amendment and restatement effected by the Originator Purchase Agreement and the other documents to be delivered by such Person hereunder and
thereunder and certified copies of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement and the Originator Purchase Agreement. 
 (b) A certificate of the Secretary or Assistant Secretary of each of the Seller, ACI and ACSC and each other Guarantor
certifying the names and true signatures of the officers of the Seller and the Originators authorized to sign this Agreement, the Guaranty Agreement, the Originator Purchase Agreement and the other documents to be delivered by it hereunder and
thereunder. 
 (c) Acknowledgment copies or time stamped receipt copies (or other satisfactory evidence of
filing) of proper financing statement amendments, duly filed on or before the date hereof under the UCC and PPSA of all jurisdictions that the Agent may deem necessary or desirable in order to effect such revisions as the Agent may deem necessary or
desirable to reflect the amendments to the Existing RPA, the Existing Originator Purchase Agreement and the other Transaction Documents contemplated by this Agreement and the Originator Purchase Agreement. 
 (d) Acknowledgment copies or time stamped receipt copies (or other satisfactory evidence of filing), or copies
accompanied by filing authorizations signed by the applicable secured party, of proper financing statement amendments and terminations, if any, necessary to release all security interests and other rights of any Person in (i) the Receivables,
Contracts or Related Security previously granted by the Seller or any Originator and (ii) the collateral security referred to in Section 2.11 previously granted by the Seller. 
 (e) Completed requests for information and search reports, dated on or before the date hereof, listing all effective
financing statements and other registrations filed in the jurisdictions referred to in subsection (c) above and in any other jurisdictions reasonably requested by the Agent that name the Seller or any Originator as debtor, together with copies
of such financing statements and other registrations (none of which shall cover any Receivables, Contracts, Related Security or the collateral security referred to in Section 2.11). 
 (f) (i) An executed copy of the Deposit Account Agreement relating to the Deposit Account maintained with Citibank,
N.A., as depositary bank, and described in more detail in Schedule V hereto and (ii) executed copies of supplemental Notices of Effectiveness delivered pursuant to each of the Deposit Account Agreements then in effect, continuing in effect the
Notices of Effectiveness delivered pursuant to the Existing RPA with respect to the Existing RPA as modified pursuant hereto. 
 (g) Favorable opinions (or letters of confirmation and reliance, to the extent satisfactory to the Agent) of (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, U.S. counsel for ACI, the
Seller and the Originators and (ii) Stikeman Elliott LLP, Canadian counsel for ACI and the Canadian Originator, in each case in form and substance satisfactory to the Agent. 
  

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 (h) An executed copy of the Originator Purchase Agreement. 
 (i) A copy of the by-laws of the Seller, each Originator and each Guarantor, certified by the Secretary or Assistant
Secretary of the Seller or such Originator, as the case may be (or, to the extent previously delivered, such officer may certify that the by-laws of such Person remain unchanged). 
 (j) A copy of the certificate or articles of incorporation of the Seller, each Originator and each Guarantor, certified
as of a recent date by the Secretary of State or other appropriate official of the state of its organization (or, to the extent previously delivered, the Secretary or Assistant Secretary of such Person may certify that the articles of incorporation
or the certificate of formation of such Person remain unchanged), and a certificate as to the good standing of the Seller, Originator and each Guarantor from such Secretary of State or other official, dated as of a recent date. 
 (k) A pro forma Weekly Report for the period ending June 5, 2009 and a pro forma Monthly Report for the period
ending April 30, 2009, each certified by an authorized financial officer of the Servicer with responsibility for such Seller Report and reflecting the inclusion of the International Receivables. 
 (l) An executed copy of the Four Party Agreement. 
 (m) An executed copy of each of (i) a confirmation of the Undertaking (Originator) and (ii) a confirmation of the Undertaking (Servicer). 
 (n) An executed copy of the Guaranty Agreement. 
 (o) Executed copies of each of the depositary bank consents described on Schedule VI. 
 (p) An executed copy of a certificate of the chief financial officer of ACI regarding Adverse Claims in the form attached hereto as Annex N. 
 (q) Evidence that the Seller has paid all reasonable fees, costs, expenses and other amounts owed by the Seller to the
Banks, the Syndication Agent, the Agent and the Assignor Agent as of the date hereof, including all fees accrued as of the Closing Date pursuant to that certain second amended and restated fee agreement between the Assignor Agent and the Seller
dated April 1, 2009 (“Second Amended and Restated Fee Agreement”). 
 (r) Evidence
that (i) the US Interim Order shall have been entered by the Bankruptcy Court, (ii) the Canadian Court shall have made the Canadian Amended Order and (iii) none of the foregoing shall have been reversed, modified, amended, stayed or
vacated. 
 (s) The audited annual consolidated financial statements of AbitibiBowater Inc. for the year
ended December 31, 2008 and the unaudited quarterly combined financial statements of the Abitibi Entities for each fiscal quarter completed since the date of the last audited financial statements and ending at least 50 days prior to the Closing
Date. 
  

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 (t) Monthly projected financial statements for the Abitibi Entities for
each month of 2009, and annual projected financial statements for the Abitibi Entities for 2009 and 2010. 
 (u) A 13-Week Projection (as defined in the Guaranty Agreement) for the 13 calendar week period following Closing Date. 
 (v) A business plan for the Abitibi Entities, in form and substance reasonably satisfactory to the Agent. 
 (w) An officer’s certificate from the chief financial officer of ACI certifying that: 
 (i) there shall not occur as a result of, and after giving effect to, the assignment hereunder, a
default or event of default under (1) any of the debt instruments or other material agreements of the Seller or (2) any of the post-petition debt instruments or other material post-petition agreements of any of the other Abitibi Entities
that would permit the counterparty thereto to exercise remedies thereunder on a post-petition basis, 
 (ii) there shall exist no (or, in the case of any Abitibi Entity other than the Seller, no unstayed) action, suit, investigation, litigation or proceeding pending or threatened in any court or before any arbitrator or governmental
instrumentality (other than the Bankruptcy Case and the Canadian Case and matters directly related thereto) that (i) could reasonably be expected to result in a Material Adverse Effect (except as otherwise disclosed in Schedule 3.07 or Schedule
3.11 to the Guaranty Agreement) or (ii) restrains, prevents or imposes or could reasonably be expected to impose materially adverse conditions upon the transactions contemplated by the Transaction Documents, 
 (iii) all necessary governmental and third party consents and approvals necessary in connection with the
performance by any of the Seller, the Originators, the Servicer, the Subservicer or the Guarantors under the Transaction Documents and the transactions contemplated thereby have been obtained and are in effect and 
 (iv) since December 31, 2008, there has been no event or circumstance that could, either
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (except as publicly disclosed by the Parent, ACI or any of their Affiliates prior to the date of execution and delivery of this Agreement or as disclosed in
Schedule 3.07 or Schedule 3.11 to the Guaranty Agreement). 
 (x) All documentation and other information
requested by any Bank prior to the Closing Date pursuant to applicable “know your customer” and anti-money laundering rules and regulations. 
  

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 (y) Evidence that (x) the Interest Account shall have been funded
to the extent required by the first sentence of paragraph 34(f) of the US Interim Order and (y) the “Initial Payment” contemplated by the US Interim Order shall have been made. 
 Immediately upon the effectiveness of ARRPA: (i) each Bank (other than Citibank) set forth on the Commitment Schedule
(each, a “New Bank”) shall be deemed, automatically and without further action on the part of any Person, to have acquired from Citibank by assignment its Percentage of all Receivable Interests held by Citibank immediately prior to
the effectiveness of this Agreement (the aggregate outstanding Capital of which is equal to $109,886,597.39 (such amount, the “Existing Aggregate Capital”)); (ii) in consideration therefor, each New Bank shall pay to Citibank,
in immediately available funds to the Agent’s Account, an amount equal to the product of (x) the Existing Aggregate Capital plus all accrued and unpaid Yield thereon as of the Closing Date and (y) such New Bank’s Percentage;
(iii) all Yield Periods in respect of which Yield is computed by reference to the Adjusted Eurodollar Rate shall be deemed to have terminated on the Closing Date, and each Receivable Interest outstanding on the Closing Date shall be deemed to
have a Yield Period of one day (and to have Yield Rate based on the Alternate Base Rate), subject to future adjustment in accordance with the definition of “Yield Period” and (iv) the Second Amended and Restated Fee Agreement shall
terminate and shall be of no further force and effect. 
 In connection with the assignments described in clause
(i) of the preceding paragraph, neither CLB nor Citibank makes any representation or warranty to any Bank except that it is the legal and beneficial owner of the interests assigned hereunder free and clear of any adverse claim, and neither CLB
nor Citibank assumes any responsibility with respect to (i) any statements, warranties or representations made in or in connection with this Agreement or any other Transaction Document or any other instrument or document furnished pursuant
hereto or thereto, or the perfection, priority or value of any ownership interest or security interest purported to be created under this Agreement or any other Transaction Document or (ii) the financial condition of any Abibiti Entity or the
performance or observance by ACI, the Seller, ACSC or the other Guarantors of any of their respective obligations under this Agreement or any other Transaction Document or any other instrument or document furnished pursuant hereto or thereto. Each
New Bank represents and warrants to Citibank and CLB that it has reviewed such documents and information as it has deemed appropriate to make its own analysis and decision to effect the assignments described in clause (i) of the preceding
paragraph. 
 For avoidance of doubt, (i) the provisions of Section 2.04 of this Agreement shall
supersede the provisions of Section 5 of Waiver and Amendment No. 4 to the Existing RPA and Section 4 of Amendment No. 5 to the Existing RPA (it being understood and agreed that the control notices delivered to the Deposit Banks
pursuant to Section 6.03(a) of the Existing RPA remain effective) and (ii) Eureka is no longer a party to this Agreement (but is an intended third party beneficiary of the provisions set forth in Section 10.05, Section 10.16 and
Section 10.17(b)). 
  

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 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.01 Representations and Warranties of the Seller. The Seller hereby represents and warrants as follows: 
 (a) The Seller is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction set forth in Schedule IV hereto (as such Schedule IV is modified
in accordance herewith), and is duly qualified to do business, and is in good standing, in every jurisdiction where the nature of its business requires it to be so qualified, unless the failure to so qualify would not have a Material Adverse Effect.

 (b) The execution, delivery and performance by the Seller of the Transaction Documents and the other
documents to be delivered by it hereunder, including the Seller’s use of the proceeds of purchases and reinvestments, (i) are within the Seller’s corporate powers, (ii) have been duly authorized by all necessary corporate action,
(iii) do not contravene (1) the Seller’s charter or by-laws, (2) any law, rule or regulation applicable to the Seller, (3) any contractual restriction binding on or affecting the Seller or its property or (4) any order,
writ, judgment, award, injunction or decree binding on or affecting the Seller or its property, and (iv) do not result in or require the creation of any lien, security interest or other Adverse Claim, charge or encumbrance upon or with respect
to any of its properties (except for the interest created pursuant to this Agreement). Each of the Transaction Documents to which the Seller is a party has been duly executed and delivered by the Seller. 
 (c) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or
regulatory body is required for the due execution, delivery and performance by the Seller of the Transaction Documents or any other document to be delivered thereunder, except for the filing of UCC financing statements which are referred to therein.

 (d) Each of the Transaction Documents to which the Seller is a party constitutes the legal, valid and
binding obligation of the Seller enforceable against the Seller in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors generally and general equitable principles
(whether considered in a proceeding at law or in equity). 
 (e) Since December 31, 2008 there has
been no material adverse change in the business, operations, financial condition or prospects of the Seller other than (i) the commencement of the Bankruptcy Case and the Canadian Case and (ii) the continuation of the circumstances giving
rise to the filing thereof or which customarily occur as a result thereof. 
 (f) Other than the filing of
the Bankruptcy Case and the Canadian Case and matters directly related thereto, there are no pending or, to the Seller’s knowledge, threatened actions, investigations or proceedings affecting the Seller before any court, governmental agency or
arbitrator which may have a Material Adverse Effect. 
  

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 (g) No proceeds of any purchase or reinvestment will be used to acquire
any equity security of a class which is registered pursuant to Section 12 of the Securities Exchange Act of 1934. 
 (h) Immediately prior to the purchase from the Seller by the Banks, the Seller is the legal and beneficial owner of the Pool Receivables and Related Security free and clear of any Adverse Claim; upon each purchase or reinvestment, the
Banks shall acquire a valid and perfected first priority undivided percentage ownership interest to the extent of the pertinent Receivable Interest in each Pool Receivable then existing or thereafter arising and in the Related Security and
Collections with respect thereto. No effective financing statement or other instrument similar in effect covering any Contract or any Pool Receivable or the Related Security or Collections with respect thereto is on file in any recording office,
except those filed in favor of the Agent relating to this Agreement and those filed by the Seller pursuant to the Originator Purchase Agreement. Each Receivable characterized in any Seller Report or other written statement made by or on behalf of
the Seller as an Eligible Receivable or as included in the Net Receivables Pool Balance is, as of the date of such Seller Report or other statement, an Eligible Receivable or properly included in the Net Receivables Pool Balance. 
 (i) Each Seller Report (if prepared by the Seller or one of its Affiliates, or to the extent that information contained
therein is supplied by the Seller or an Affiliate), including the calculations therein, and all information, exhibits, financial statements, documents, books, records or reports furnished or to be furnished at any time by or on behalf of the Seller
to the Agent or the Banks in connection with this Agreement is or will be accurate in all material respects as of its date or (except as otherwise disclosed to the Agent or the Banks, as the case may be, at such time) as of the date so furnished,
and no such document contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were
made, not misleading. 
 (j) The principal place of business and chief executive office of the Seller and
the office where the Seller keeps its records concerning the Pool Receivables are located at the address or addresses referred to in Section 5.01(b). The Seller is located in the jurisdiction of organization set forth in Schedule IV hereto
(as modified in accordance herewith) for purposes of Section 9-307 of the UCC as in effect in the State of New York; and the office in the jurisdiction of organization of the Seller in which a UCC financing statement is required to be filed in
order to perfect the security interest granted by the Seller hereunder is set forth in Schedule IV hereto (as modified in accordance herewith). 
 (k) The names and addresses of all the Deposit Banks, together with the post office boxes and account numbers of the Lock-Boxes and Deposit Accounts of the Seller at such Deposit Banks, are as
specified in Schedule V hereto, as such Schedule V may be amended from time to time pursuant to Section 5.01(g). The Lock-Boxes and Deposit Accounts are the only post office boxes and accounts into which Collections of Receivables are deposited
or remitted. The Seller has delivered to the Agent a fully executed Deposit Account Agreement with respect to each Deposit Account and any associated Lock-Boxes. 
 (l) [Reserved]. 
  

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 (m) The Seller is not known by and does not use any tradename or
doing-business-as name. 
 (n) The Seller was incorporated on October 20, 2005, and the Seller
(i) did not engage in any business activities prior to October 27, 2005 and (ii) has not engaged in business activities inconsistent with the terms of all the transactions contemplated by the Existing Originator Purchase Agreement or
the Existing RPA prior to the date of this Agreement. The Seller has no Subsidiaries. 
 (o) (i) The
fair value of the property of the Seller is greater than the total amount of liabilities, including contingent liabilities, of the Seller, (ii) the present fair salable value of the assets of the Seller is not less than the amount that will be
required to pay all probable liabilities of the Seller on its debts as they become absolute and matured, (iii) the Seller does not intend to, and does not believe that it will, incur debts or liabilities beyond the Seller’s abilities to
pay such debts and liabilities as they mature and (iv) the Seller is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which the Seller’s property would constitute unreasonably small
capital. 
 (p) With respect to each Pool Receivable, the Seller (i) shall have received such Pool
Receivable as a contribution to the capital of the Seller by the U.S. Originator or (ii) shall have purchased such Pool Receivable from an Originator in exchange for payment (made by the Seller to such Originator in accordance with the
provisions of the Originator Purchase Agreement) of cash or the Deferred Purchase Price, or a combination thereof, in an amount which constitutes fair consideration and reasonably equivalent value. Each such sale referred to in clause (ii) of
the preceding sentence shall not have been made for or on account of an antecedent debt owed by any Originator to the Seller and no such sale is or may be voidable or subject to avoidance under any section of the Federal Bankruptcy Code or any other
state, Canadian or provincial law. 
 (q) The Seller has (i) timely filed all federal tax returns
required to be filed, (ii) timely filed all other material state and local tax returns and (iii) paid or made adequate provision for the payment of all taxes, assessments and other governmental charges (other than any tax, assessment or
governmental charge which is being contested in good faith and by proper proceedings, and with respect to which the obligation to pay such amount is adequately reserved against in accordance with Canadian generally accepted accounting principles).

 (r) No transaction contemplated by this Agreement or any of the other Transaction Documents with respect
to the Seller requires compliance with any bulk sales act or similar law. 
 (s) No Receivable originated
by the Canadian Originator, the Obligor of which has a billing address in Canada, was issued for an amount in excess of the fair market value of the merchandise, insurance or services provided by the Canadian Originator to which the Receivable
relates. 
 (t) No Contract or any other books, records or other information relating to any Receivable
originated by the Canadian Originator, the Obligor of which has a billing address

  

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in Canada, contain any “personal information” as defined in, or any other information regulated under (i) the Personal Information Protection and Electronic Documents Act
(Canada), or (ii) any other similar statutes of Canada or any province in force from time to time which restrict, control, regulate or otherwise govern the collection, holding, use or communication of information. 
 (u) The Seller has marked its master data processing records evidencing Pool Receivables, including master data
processing records evidencing Pool Receivables arising out of the sale of lumber, with a legend evidencing that Receivable Interests related to such Pool Receivables have been sold in accordance with this Agreement. 
 (v) The Seller is not engaged nor will it engage, principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), or extending credit for the purpose of purchasing or carrying margin stock. The Seller is not or is not required
to be registered as an “investment company” under the Investment Company Act of 1940. 
 (w) The
representations and warranties of the Servicer (so long as the Servicer is ACSC, Donohue or any other Subsidiary of Donohue that is a US Person) set forth in Sections 4.02(g), 4.02(k) and 4.02(l) are true and correct. 
 Section 4.02 Representations and Warranties of the Servicer. The Servicer hereby represents and warrants as
follows: 
 (a) The Servicer (i) is a corporation duly incorporated, validly existing and in good
standing under the laws of Delaware and (ii) subject to the entry by the Bankruptcy Court of (x) the US Interim Order at any time prior to the entry of the US Final Order and (y) the US Final Order thereafter, and in each case subject
to the terms thereof, is duly qualified to do business, and is in good standing, in every jurisdiction where the nature of its business requires it to be so qualified, unless the failure to so qualify would not have a Material Adverse Effect.

 (b) Subject to the entry by the Bankruptcy Court of (x) the US Interim Order at any time prior to
the entry of the US Final Order and (y) the US Final Order thereafter, and in each case subject to the terms thereof, the execution, delivery and performance by the Servicer of this Agreement, the other Transaction Documents to which it is a
party and any other documents to be delivered by it hereunder or thereunder (i) are within the Servicer’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not contravene (1) the
Servicer’s charter or by-laws, (2) any law, rule or regulation applicable to the Servicer, (3) any material contractual restriction binding on or affecting the Servicer or its property or (4) any order, writ, judgment, award,
injunction or decree binding on or affecting the Servicer or its property, and (iv) do not result in or require the creation of any lien, security interest or other Adverse Claim, charge or encumbrance upon or with respect to any of its
properties. Subject to the entry by the Bankruptcy Court of (x) the US Interim Order at any time prior to the entry of the US Final Order and (y) the US Final Order thereafter, and in each case subject to the terms thereof, this Agreement
has been duly executed and delivered by the Servicer. 
  

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 (c) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body (except as required under the Bankruptcy Code) is required for the due execution, delivery and performance by the Servicer of this Agreement or any other document to be delivered by it
hereunder. 
 (d) Subject to the entry by the Bankruptcy Court of (x) the US Interim Order at any time
prior to the entry of the US Final Order and (y) the US Final Order thereafter, and in each case subject to the terms thereof, this Agreement constitutes the legal, valid and binding obligation of the Servicer enforceable against the Servicer
in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors generally and general equitable principles (whether considered in a proceeding at law or in equity).

 (e) (i) The consolidated balance sheet of ACI as at December 31, 2008, and the related
consolidated statements of income and cash flow of ACI for the fiscal quarter then ended, copies of which have been furnished to the Agent, fairly present the financial condition of ACI as at such date and the results of the operations of ACI for
the period ended on such date, all in accordance with Canadian generally accepted accounting principles consistently applied, and (ii) since December 31, 2008, there has been no event or circumstance that could, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect (except as publicly disclosed by the Parent, ACI or any of their Affiliates prior to the date of execution and delivery of this Agreement or as disclosed in Schedule 3.07 or
Schedule 3.11 to the Guaranty Agreement). 
 (f) Except for the Bankruptcy Case and the Canadian Case and
matters directly related thereto and any proceedings that have been stayed as a result of the Bankruptcy Case and the Canadian Case or as otherwise disclosed in Schedule 3.07 or Schedule 3.11 to the Guaranty Agreement, there are no pending or, to
the Servicer’s knowledge, threatened actions, investigations or proceedings affecting the Servicer or any of its Affiliates before any court, governmental agency or arbitrator which may have a Material Adverse Effect. 
 (g) Each Receivable characterized in any Seller Report as an Eligible Receivable or as included in the Net Receivables
Pool Balance is, as of the date of such Seller Report, an Eligible Receivable or properly included in the Net Receivables Pool Balance. 
 (h) Each Seller Report (if prepared by the Servicer or one of its Affiliates, or to the extent that information contained therein is supplied by the Servicer or an Affiliate), including the
calculations therein, and all information, exhibits, financial statements, documents, books, records or reports furnished or to be furnished at any time by the Servicer to the Agent or the Banks in connection with this Agreement is or will be
accurate in all material respects as of its date or (except as otherwise disclosed to the Agent or the Banks, as the case may be, at such time) as of the date so furnished, and no such document contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. 
  

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 (i) Except to the extent failure to do so is permitted by Chapter 11 of
the Bankruptcy Code, the Servicer has (i) timely filed all federal tax returns required to be filed, (ii) timely filed all material state and local tax returns and (iii) paid or made adequate provision for the payment of all taxes,
assessments and other governmental charges (other than any tax, assessment or governmental charge which is being contested in good faith and by proper proceedings, and with respect to which the obligation to pay such amount is adequately reserved
against in accordance with Canadian generally accepted accounting principles). 
 (j) For purposes of
Section 9-307 of the UCC as in effect in the State of New York, the U.S. Originator is located in the jurisdiction of organization set forth in Schedule IV hereto, and the Canadian Originator is located in the jurisdiction of its chief
executive and registered office set forth in Schedule IV hereto (in each case as such Schedule IV is modified in accordance herewith). The office in the jurisdiction of organization (or other applicable jurisdictions, in the case of the
Canadian Originator) of each Originator in which a financing statement or other applicable registrations under the PPSA are required to be filed in order to perfect the security or ownership interest granted by such Originator under the Originator
Purchase Agreement is set forth in Schedule IV hereto (as modified in accordance herewith). The principal place of business and chief executive office of the U.S. Originator, the principal place of business and chief executive and registered
office of the Canadian Originator and the office where each Originator keeps its records concerning the Originator Receivables are located (and have been located for the five years prior to the date of this Agreement) at the address or addresses set
forth in Schedule IV hereto (as modified in accordance herewith). Neither Originator has changed its name during the five years prior to the date of this Agreement, except as set forth in Schedule IV hereto, as modified in accordance
herewith. 
 (k) The Insurance Policy has been validly issued by the Insurer to ACI and is, on the Closing
Date, in full force and effect. The copy of the Insurance Policy attached hereto as Annex H is true, correct and complete as of the date hereof. All statements made by ACI in the application for the Insurance Policy were true, correct and complete
in all material respects when made. As of the Closing Date, all the premiums due prior to the Closing Date under the Insurance Policy have been paid. ACI has performed all of its duties under the Insurance Policy and has timely filed all claims
payable thereunder in such form as is required by the Insurer. The Insurance Policy has not been amended, supplemented or otherwise modified except as permitted by Section 6.02(a), and ACI has not waived any of its rights thereunder. The
Insurer has been directed to pay all Insurance Proceeds directly into a Deposit Account that is subject to a Deposit Account Agreement. 
 (l) The Servicer has marked the Seller’s master data processing records evidencing the Pool Receivables, including master data processing records evidencing Pool Receivables arising out of the
sale of lumber, with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have been sold. 
  

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 ARTICLE V 
 COVENANTS 
 Section 5.01 Covenants of the Seller.
Until the latest of the Facility Termination Date or the date on which no Capital of or Yield on any Receivable Interest shall be outstanding or the date all other amounts owed by the Seller hereunder to the Banks or the Agent are paid in full:

 (a) Compliance with Laws, Etc. The Seller will comply in all material respects with all
applicable laws, rules, regulations and orders and preserve and maintain its corporate existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the
failure so to preserve and maintain such rights, franchises, qualifications, and privileges would not have a Material Adverse Effect. 
 (b) Offices, Records, Name and Organization. Subject to Section 10.01(e), the Seller will keep its principal place of business and chief executive office and the office where it keeps its
records concerning the Pool Receivables at the address of the Seller set forth on Schedule III hereto or, upon 30 days’ prior written notice, together with an updated Schedule III, to the Agent, at any other locations within the
United States. The Seller will not change its name or its state of organization, unless (i) the Seller shall have provided the Agent with at least 30 days’ prior written notice thereof, together with an updated Schedule IV, and
(ii) no later than the effective date of such change, all actions, documents and agreements reasonably requested by the Agent to protect and perfect the Agent’s interest in the Receivables, the Related Security and the other assets of the
Seller in which a security interest is granted hereunder have been taken and completed. Upon confirmation by the Agent to the Seller of the Agent’s receipt of any such notice (together with an updated Schedule IV) and the completion or
receipt of the actions, agreements and documents referred to in clause (ii) of the preceding sentence, Schedule IV hereto shall, without further action by any party, be deemed to be amended and replaced by the updated Schedule IV
accompanying such notice. The Seller also will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool Receivables and related Contracts in the event of the
destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Pool Receivables (including, without limitation, records adequate to permit
the daily identification of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable). 
 (c) Performance and Compliance with Contracts and Credit and Collection Policy. The Seller will, at its expense, timely and fully perform and comply with all material provisions, covenants and
other promises required to be observed by it under the Contracts related to the Pool Receivables, and timely and fully comply in all material respects with the Credit and Collection Policy in regard to each Pool Receivable and the related Contract.

 (d) Sales, Liens, Etc. Except for the ownership and security interests created hereunder
in favor of the Agent, the Seller will not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, the Seller’s undivided interest in any Pool Receivable,
Related Security, related Contract or Collections, or upon or with respect to any account to which any Collections of any Pool

  

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Receivable are sent or upon any other Collateral, or assign any right to receive income in respect thereof. 
 (e) Extension or Amendment of Receivables. Except as provided in Section 6.02(c), the Seller will not (and will not permit the Servicer or any Originator to) extend,
amend or otherwise modify the terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract related thereto. 
 (f) Change in Business or Credit and Collection Policy. The Seller will not make any change in the character of its business or in the Credit and Collection Policy that would, in either case,
have a Material Adverse Effect. 
 (g) Change in Payment Instructions to Obligors. The Seller will
not add or terminate any bank, post office box or bank account as a Deposit Bank, Lock-Box or Deposit Account from those listed in Schedule V hereto, or make any change in its instructions to Obligors regarding payments to be made to the Seller or
payments to be made to any Lock-Box or Deposit Account, unless the Agent shall have received prior notice of such addition, termination or change (including an updated Schedule V) and a fully executed Deposit Account Agreement with each new Deposit
Bank or with respect to each new Lock-Box or Deposit Account. Upon confirmation by the Agent to the Seller of the Agent’s receipt of any such notice and the related documents, Schedule V hereto shall, without further action by any party, be
deemed to be amended and replaced by the updated Schedule V accompanying such notice. 
 (h) Deposits to
Lock-Boxes and Deposit Accounts. The Seller will (or will cause the Servicer or the Originators to) instruct all Obligors to remit all their payments in respect of Receivables to Lock-Boxes or Deposit Accounts (provided that Obligors with
respect to International Receivables and Receivables originated by the U.S. Originator shall be instructed to remit such payments to Lock-Boxes or Deposit Accounts located in the United States). If the Seller or Servicer shall receive any
Collections directly, it shall immediately (and in any event within two Business Days) deposit the same to a Lock-Box or a Deposit Account (provided that Collections related to an International Receivable or a Receivable originated by the U.S.
Originator shall be deposited to a Lock-Box or a Deposit Account in the United States) and until it does so, shall hold the same in trust for the Agent. The Seller will not deposit or otherwise credit, or cause or permit to be so deposited or
credited, to any Lock-Box or Deposit Account, cash or cash proceeds other than Collections of Receivables , provided, that if any PST are deposited or credited to any Lock-Box or Deposit Account, the Seller will (or will cause the Servicer or
the Originators to), within two Business Days of such deposit or credit, separate such deposits and credits from the Collections held in any applicable Lock-Box or Deposit Account and withdraw such deposited or credited amount from such Lock-Box or
Deposit Account. 
 (i) Marking of Records. At its expense, the Seller will mark its master data
processing records evidencing Pool Receivables with a legend evidencing that Receivable Interests related to such Pool Receivables have been sold in accordance with this Agreement. 
 (j) Further Assurances. (i) The Seller agrees from time to time, at its expense, promptly to execute
and deliver all further instruments and documents, and to take all further actions, that may be necessary or desirable, or that the Agent may reasonably request, to

  

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perfect, protect or more fully evidence the Receivable Interests purchased under this Agreement, or to enable the Banks or the Agent to exercise and enforce their respective rights and remedies
under this Agreement. 
 (ii) The Seller authorizes the Agent to file financing or
continuation statements, and amendments thereto and assignments thereof, relating to the collateral described in Section 2.11, which financing statements may describe the collateral covered thereby as “all assets of the Seller,”
“all personal property of the Seller” or words of similar effect. 
 (k) Reporting
Requirements. The Seller will provide to the Agent (in multiple copies, if requested by the Agent) for delivery to the Banks the following: 
 (i) as soon as available and in any event within 105 days after the end of each fiscal year of the Seller ending after the date hereof, a balance sheet of the Seller as of the
end of such fiscal year and a statement of income and cash flow of the Seller for such fiscal year, in each case audited and accompanied by the opinion of the Seller’s independent public accountants (which opinion shall be without a “going
concern” or like qualification or exception and without any qualification or exception as to the scope of such audit); 
 (ii) [Reserved]; 
 (iii) as soon as available
and in any event within 30 days after the end of each fiscal month of the Seller, a balance sheet of the Seller as of the end of such fiscal month and a statement of income and cash flow of the Seller for (x) the period commencing at the end of
the previous fiscal month and ending with the end of such fiscal month and (y) the period commencing at the end of the previous fiscal year and ending with the end of such fiscal month, certified by the treasurer or the assistant treasurer of
the Seller; 
 (iv) as soon as possible and in any event within five days after the
occurrence of each Event of Termination or Incipient Event of Termination, a statement of the treasurer or assistant treasurer of the Seller setting forth details of such Event of Termination or Incipient Event of Termination and the action that the
Seller has taken and proposes to take with respect thereto; 
 (v) promptly after the
sending or filing thereof, copies of all reports that any Originator sends to any of its security holders, and copies of all reports and registration statements that any Originator or any of its Subsidiaries files with the SEC or any other U.S.,
Canadian or other national or provincial securities exchange; 
 (vi) with respect to the
Seller or any ERISA Affiliate, as soon as possible, and in any event within 10 days after the Seller or ACI knows or has reason to believe that any of the events or conditions specified below has occurred or exists, notice of such event or condition
(and provide a copy of any report or notice required to be filed with or given to PBGC): 
  

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 (A) any reportable event, as defined in
Section 4043(b) of ERISA and the regulations issued thereunder, unless the 30 day notice requirement in respect thereof has been waived by the PBGC; 
 (B) a notice of intent to terminate any Plan or any action taken to terminate any Plan, provided notice of intent to terminate is required pursuant to Section 4041(a)(2) of
ERISA; 
 (C) the institution by PBGC of proceedings under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan, or the receipt of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 
 (D) the complete or partial withdrawal from a Multiemployer Plan that results in liability under
Section 4201 or 4204 of ERISA or the receipt of notice from a Multiemployer Plan that it is in reorganization or insolvency or that it intends to terminate or has terminated; 
 (E) the institution of a proceeding by a fiduciary of any Multiemployer Plan to enforce
Section 515 of ERISA, which proceeding is not dismissed within 30 days; and 
 (F) the
adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result in the loss of tax exempt status of the trust of which such Plan is a part if security has not been provided in
accordance with the provisions of these Sections; 
 (vii) subject to Section 10.01(f),
at least 30 days prior to any change in the name, chief executive or registered office or jurisdiction of organization of any Originator or the Seller, a notice setting forth the new name, chief executive or registered office or jurisdiction of
organization and the effective date thereof; 
 (viii) promptly after the Seller obtains
knowledge thereof, notice of any “Event of Termination” or “Facility Termination Date” under the Originator Purchase Agreement and notice of any Insurance Policy Event; 
 (ix) so long as any Capital shall be outstanding, as soon as possible and in any event no later than the
day of occurrence thereof, notice that any Originator has stopped selling or contributing to the Seller, pursuant to the Originator Purchase Agreement, all newly arising Originator Receivables; 
 (x) at the time of the delivery of the financial statements provided for in clauses (i) and
(iii) of this paragraph, a certificate of the president,

  

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the chief financial officer or the treasurer or assistant treasurer of the Seller to the effect that, to the best of such officer’s knowledge, no Event of Termination has occurred and is
continuing or, if any Event of Termination has occurred and is continuing, specifying the nature and extent thereof; 
 (xi) promptly after receipt thereof, copies of all notices received by the Seller from any Originator under the Originator Purchase Agreement; 
 (xii) promptly following receipt thereof, copies of all schedules, endorsements and notices received
from the Insurer with respect to the Insurance Policy (including any notice that any additional premium is due in accordance with Section 4 of the “Declarations and Payment of Premium” endorsement to the Insurance Policy); 

(xiii) [Reserved]; 
 (xiv) concurrently with the sending thereof to the Insurer, any notice by ACI terminating the Insurance Policy; and 
 (xv) such other information respecting the Receivables or the condition or operations, financial or
otherwise, of the Seller as the Agent may from time to time reasonably request. 
 Reports and financial statements required to
be delivered pursuant to clause (v) of this Section 5.01(k) shall be deemed to have been delivered on the date on which the Parent posts such reports, or reports containing such financial statements, on the Parent’s website on the
Internet at www.abitibibowater.com or when such reports, or reports containing such financial statements, are posted on the SEC’s website at www.sec.gov; provided that the Seller shall deliver paper copies of the reports and financial
statements referred to in clause (v) of this Section 5.01(k) to the Agent upon request. 
 (l) Separateness. (i) The Seller shall at all times maintain at least one independent director (x) who is not currently and has not been during the five years preceding the date of this Agreement an officer, director
or employee of an Affiliate of the Seller or any Other Company, (y) is not a current or former officer or employee of the Seller and (z) is not a stockholder of any Other Company or any of their respective Affiliates. 
 (ii) The Seller shall not direct or participate in the management of any of the Other Companies’
operations. 
 (iii) The Seller shall conduct its business from an office separate from that
of the Other Companies (but which may be located in the same facility as one or more of the Other Companies). The Seller shall have stationery and other business forms and a mailing address and a telephone number separate from that of the Other
Companies. 
 (iv) The Seller shall at all times be adequately capitalized in light of its
contemplated business. 
  

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 (v) The Seller shall at all times provide for its own
operating expenses and liabilities from its own funds. 
 (vi) The Seller shall maintain its
assets and transactions separately from those of the Other Companies and reflect such assets and transactions in financial statements separate and distinct from those of the Other Companies and evidence such assets and transactions by appropriate
entries in books and records separate and distinct from those of the Other Companies. The Seller shall hold itself out to the public under the Seller’s own name as a legal entity separate and distinct from the Other Companies. The Seller shall
not hold itself out as having agreed to pay, or as being liable, primarily or secondarily, for, any obligations of the Other Companies. 
 (vii) The Seller shall not maintain any joint account with any Other Company or become liable as a guarantor or otherwise with respect to any Debt or contractual obligation of any Other Company.

 (viii) The Seller shall not make any payment or distribution of assets with respect to
any obligation of any Other Company or grant an Adverse Claim on any of its assets to secure any obligation of any Other Company. 
 (ix) The Seller shall not make loans, advances or otherwise extend credit to any of the Other Companies. 
 (x) The Seller shall hold regular duly noticed meetings of its Board of Directors and make and retain minutes of such meetings. 
 (xi) The Seller shall have bills of sale (or similar instruments of assignment) and, if appropriate,
UCC-1 or PPSA financing statements or other appropriate registrations, with respect to all assets purchased from any of the Other Companies. 
 (xii) The Seller shall not engage in any transaction with any of the Other Companies, except as permitted by this Agreement and as contemplated by the Originator Purchase
Agreement. 
 (m) Originator Purchase Agreement. The Seller will not amend, waive or modify any
provision of the Originator Purchase Agreement or waive the occurrence of any “Event of Termination” under the Originator Purchase Agreement; provided, however, that the Seller may amend the percentage set forth in the
definition of “Discount” in the Originator Purchase Agreement in accordance with the provisions of the Originator Purchase Agreement; provided, further, that the Seller shall promptly notify the Agent of any such amendment.
The Seller will perform all of its obligations under the Originator Purchase Agreement in all material respects and will enforce the Originator Purchase Agreement in accordance with its terms in all material respects. 
 (n) Nature of Business. The Seller will not engage in any business other than the purchase or acquisition of
Receivables, Related Security and Collections from the

  

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Originators and the transactions contemplated by this Agreement. The Seller will not create or form any Subsidiary. 
 (o) Mergers, Etc. The Seller will not merge with or into or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in
a series of transactions), all or substantially all of its assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets or capital stock or other ownership interest of, or enter into any joint venture or
partnership agreement with, any Person, other than as contemplated by this Agreement and the Originator Purchase Agreement. 
 (p) Distributions, Etc. The Seller will not declare or make any dividend payment or other distribution of assets, properties, cash, rights, obligations or securities on account of any shares
of any class of capital stock of the Seller, or return any capital to its shareholders as such, or purchase, retire, defease, redeem or otherwise acquire for value or make any payment in respect of any shares of any class of capital stock of the
Seller or any warrants, rights or options to acquire any such shares, now or hereafter outstanding; provided, however, that the Seller may declare and pay cash dividends on its capital stock to its shareholders so long as (i) no
Incipient Event of Termination or Event of Termination shall then exist or would occur as a result thereof, (ii) such dividends are in compliance with all applicable law including the corporate law of the state of Seller’s incorporation,
and (iii) such dividends have been approved by all necessary and appropriate corporate action of the Seller. 
 (q) Debt. The Seller will not incur any Debt, other than any Debt incurred pursuant to this Agreement, the Deferred Purchase Price payable to the Originators and (without duplication) as otherwise contemplated by
Section 2.02(d) of the Originator Purchase Agreement. 
 (r) Certificate of Incorporation. The
Seller will not amend or delete Articles THIRD, FIFTH, SEVENTH, TENTH, ELEVENTH or TWELFTH of its certificate of incorporation. 
 (s) Tangible Net Worth. The Seller will have, as of the due date of each Monthly Report, a Tangible Net Worth equal to at least 8.0% of the Outstanding Balance of the Receivables at such time.

 (t) Insurance. The Seller will not take or omit to take, any action which gives rise to an
exclusion from coverage under the Insurance Policy. 
 (u) Other Cross Defaults. If the Parent, any
Originator or any Affiliate thereof (other than Bowater Incorporated, Bowater Newsprint South LLC and their Subsidiaries) shall incur any Debt after April 1, 2009 the terms of which include a cross default provision more favorable to the holder
of such Debt (or more restrictive of the actions of the Parent or any Originator (including a cross default to this Agreement)), or amend the terms of any other Debt of the Parent, any Originator or any Affiliate (other than Bowater Incorporated,
Bowater Newsprint South LLC and their Subsidiaries), in each case, to include a cross default provision more favorable to the holder of such Debt (or more restrictive of the actions of the Parent or any Originator (including a cross default to this
Agreement)) than Section 7.01(e) of this Agreement,

  

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including, without limitation, with respect to such Affiliates whose Debt is covered by such cross default provision, the Seller shall notify the Agent of such cross default provision and, if
requested by the Agent, contemporaneously with such incurrence enter into an amendment to this Agreement, providing a cross default no less favorable to the Banks than the provisions of the cross default governing such other Debt. 
 (v) Bowater Cross Defaults. If Bowater Incorporated, Bowater Newsprint South LLC or any of their Subsidiaries
shall incur any Debt after April 1, 2009 the terms of which include a cross default provision to Debt of any Originator or any Subsidiary of ACI or AbitibiBowater US Holding LLC (including a cross default to this Agreement), or amend the terms
of any other Debt of Bowater Incorporated, Bowater Newsprint South LLC or any of their Subsidiaries, in each case, to include a cross default to Debt of any Originator or any Subsidiary of ACI or AbitibiBowater US Holding LLC (including this
Agreement), the Seller shall notify the Agent of such cross default provision and, if requested by the Agent, contemporaneously with such incurrence enter into an amendment to this Agreement, providing a cross default to Debt of Bowater
Incorporated, Bowater Newsprint South Inc., and their Subsidiaries. 
 Section 5.02 Covenant of the
Seller and the Originators. Until the latest of the Facility Termination Date or the date on which no Capital of or Yield on any Receivable Interest shall be outstanding or the date all other amounts owed by the Seller hereunder to the Banks or
the Agent are paid in full, each of the Seller and each Originator will, at their respective expense, from time to time during regular business hours as requested by the Agent, permit the Agent or its agents or representatives (including independent
public accountants, which may be the Seller’s or such Originator’s independent public accountants), (i) to conduct periodic audits of the Receivables, the Related Security and the related books and records and collections systems of
the Seller or such Originator, as the case may be, (ii) to examine and make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of the
Seller or any Originator, as the case may be, relating to Pool Receivables and the Related Security, including, without limitation, the Contracts, and (iii) to visit the offices and properties of the Seller or any Originator, as the case may
be, for the purpose of examining such materials described in clause (ii) above, and to discuss matters relating to Pool Receivables and the Related Security or the Seller’s or any Originator’s performance under the Transaction
Documents or under the Contracts with any of the officers or employees of the Seller or any Originator, as the case may be, having knowledge of such matters. In addition, in relation to each audit of the type described in clause (i) above, the
Agent may, at the Seller’s expense, appoint independent public accountants (which may be accountants other than the Seller’s regular independent public accountants) or consultants, or utilize the Agent’s representatives or auditors,
to prepare and deliver to the Agent a written report with respect to the Receivables and the Credit and Collection Policy (including, in each case, the systems, procedures and records relating thereto) on a scope and in a form reasonably requested
by the Agent. The expense of one audit in each calendar quarter of the type described in clause (i) above, together with the associated written reports of the independent public accountant or consultant described in the preceding sentence,
shall be borne by the Seller; provided, however, that after the occurrence and during the continuance of a Trigger Event or following an audit report indicating an audit deficiency that remains

  

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uncorrected, the expense of any additional audits and visits as the Agent shall deem reasonably necessary under the circumstances shall be borne by the Seller. 
 ARTICLE VI 
 ADMINISTRATION AND COLLECTION 
 OF POOL RECEIVABLES 
 Section 6.01 Designation of Servicer. The servicing, administration and collection of the Pool Receivables
shall be conducted by the Servicer so designated hereunder from time to time. Until the Agent gives notice to the Seller of the designation of a new Servicer in accordance with the provisions of the next sentence, ACSC is hereby designated as, and
hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. The Agent may, at any time after the occurrence and during the continuance of a Servicer Default, designate as Servicer any Person (including itself)
to succeed ACSC or any successor Servicer, if such Person shall consent and agree to the terms hereof. The Servicer may, with the prior consent of the Agent, subcontract with any other Person for the servicing, administration or collection of the
Pool Receivables. Any such subcontract shall not affect the Servicer’s liability for performance of its duties and obligations pursuant to the terms hereof, and any such subcontract shall automatically terminate upon designation of a successor
Servicer. The Servicer hereby appoints ACI as subservicer (ACI, in such capacity, the “Subservicer”) to perform the servicing, administration and collections functions of the Servicer hereunder and with respect to the other
Transaction Documents; provided that the foregoing designation of ACI as subservicer does not (i) extend to the amendment or modification of a Receivable in accordance with Section 6.02(c) or (ii) contravene or otherwise exceed
or violate Section 6.09. In no instance will the servicing and subservicing hereunder be inconsistent with, or in violation of, the terms and conditions of the Insurance Policy (and ACI shall continue its servicing and administration of the
Insurance Policy). The Agent hereby consents to the designation of ACI as subservicer hereunder. 
 Section 6.02 Duties of Servicer. (a) The Servicer shall take or cause to be taken all such actions as may be necessary or advisable to collect each Pool Receivable from time to time, all in accordance with
applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. The Seller and the Agent hereby appoint the Servicer, from time to time designated pursuant to Section 6.01, to
enforce their respective rights and interests in the Pool Receivables, the Related Security and the Collections with respect thereto. In performing its duties as Servicer, the Servicer shall exercise the same care and apply the same policies as it
would exercise and apply if it owned such Receivables and shall act in the best interests of the Seller, the Agent and the Banks. The Servicer’s and the Subservicer’s duties hereunder shall include paying, on behalf of the Originators, all
premiums due under the Insurance Policy when the same are due (and the Servicer and the Subservicer shall provide the Agent with evidence of such payment by no later than the Business Day following the date such payment is due) and performing all
obligations of ACI under the Insurance Policy in accordance with the terms of the Insurance Policy. Without limiting the foregoing, the Servicer or the Subservicer will (i)(x) immediately, upon obtaining knowledge of the relevant Obligor’s

  

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insolvency and (y) in all other cases, no later than four months after the relevant Receivable becomes due, file a claim under the Insurance Policy in such form as is required by the Insurer
and with properly completed supporting documentation; (ii) not take any action to amend, supplement or otherwise modify the Insurance Policy (including, without limitation, consenting to any changes to the Insurance Policy proposed by the
Insurer as part of the annual renewal process) or waive any of its rights thereunder, without the Agent’s prior written consent in each case; (iii) not change the directions given to the Insurer to pay all Insurance Proceeds directly into
a Deposit Account that is subject to a Deposit Account Agreement; (iv) service the Receivables as required by the Insurer pursuant to the Insurance Policy; (v) deliver to the Insurer in a timely fashion any document or report required by
the Insurer; and (vi) not take, or omit to take, any action which gives rise to an exclusion from coverage under the Insurance Policy. The Servicer and the Subservicer will ensure that all records relating to the Receivables are consistent with
the requirements of the Insurance Policy and that such records are in such form as will not result in rejection of otherwise proper claims under the Insurance Policy. In the event the Servicer or the Subservicer fails to file a claim with respect to
any Receivable, the Agent may (but shall not be required to) file such claim under the Insurance Policy. 
 (b) The Servicer (including the Subservicer) shall administer the Collections in accordance with the procedures described in Section 2.04. 
 (c) If no Event of Termination or Incipient Event of Termination shall have occurred and be continuing, an Originator (other than ACI), while it is the Servicer (subject to the
provisions of Section 6.09), may, in accordance with the Credit and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Receivable as the Originator deems appropriate to maximize Collections thereof, or otherwise
amend or modify other terms of any Receivable, provided that (i) any necessary approval of the Insurer shall have been obtained, and (ii) the classification of any such Receivable as a Defaulted Receivable shall not be affected by
any such extension. 
 (d) The Servicer shall hold in trust for the Seller and each Bank, in accordance
with their respective interests, all documents, instruments and records (including, without limitation, computer tapes or disks) which evidence or relate to Pool Receivables. The Servicer shall mark the Seller’s master data processing records
evidencing the Pool Receivables with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have been sold. 
 (e) The Servicer shall, as soon as practicable (and in any event within two Business Days) following receipt, turn over to the Person entitled thereto any cash collections or other cash proceeds
received with respect to Receivables not constituting Pool Receivables. 
 (f) The Servicer shall, from
time to time at the request of the Agent, furnish to the Agent (promptly after any such request) a calculation of the amounts set aside for the Banks pursuant to Section 2.04. 
 (g) The Servicer shall prepare and forward to the Agent a Monthly Report relating to the Receivable Interests
outstanding on the last day of the immediately preceding

  

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month prior to 10:00 A.M. (New York City Time) on the 17th
 calendar day of each month (or, if such day is not a Business Day, the next succeeding Business Day). 
 (i) On the second Business Day of each calendar week, the Servicer shall prepare and forward to the Agent a Weekly Report which shall contain information related to the
Receivables Pool as of the close of business on the last Business Day of the preceding calendar week. 
 (ii) The Servicer shall prepare and forward to the Agent a monthly report with respect to all claims submitted by ACI or any of its Subsidiaries under the Insurance Policy during the immediately
preceding month (such report to include, without limitation, (A) information with respect to any claims paid or rejected by the Insurer, (B) a breakdown as to claims made with respect to Originator Receivables and receivables that are not
Originator Receivables, and (C) a breakdown of claims made by country of location of Obligor), such report to be in form and substance satisfactory to the Agent and to be delivered prior to 10:00 A.M. (New York City Time) on the day that the
third Weekly Report for any calendar month is due, unless the due date of such third Weekly Report is the 15th or 16th calendar day of such month, in which case the foregoing report shall be delivered prior to 10:00 A.M. (New York City
Time) on the day that the fourth Weekly Report for such calendar month is due. 
 (iii) Prior to 10:00 A.M. (New York City time) on each Business Day on or after the occurrence and during the continuance of a Trigger Event, the Servicer shall deliver to the Agent a daily report (each, a “Daily
Report”) in substantially the form of the Weekly Report, which shall contain information related to the Receivables Pool as of the close of business on the preceding Business Day and such additional information as the Agent may request from
time to time. 
 (iv) If at a time no Trigger Event exists, the Servicer shall become aware
that, by reason of events occurring since the delivery of the then most recent Weekly Report, the Collateral Availability determined as of such date would be less than 90% of the Collateral Availability determined on the basis of such Weekly Report,
the Servicer shall deliver to the Agent a Daily Report as of the close of business on such date prior to 10:00 A.M. (New York City time) on the next succeeding Business Day. 
 The Servicer shall transmit Seller Reports to the Agent concurrently by facsimile and by electronic mail (each, an “E-Mail Seller Report”). Each E-Mail Seller Report
shall be (A) formatted as the Agent may designate from time to time and (B) sent to the Agent at an electronic mail address designated by the Agent. The Agent shall promptly furnish to each Bank a copy of each Seller Report received by it
hereunder. 
 (h) [Intentionally Omitted]. 
  

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 (i) The Servicer shall file all tax returns required by law to be filed by
it with respect to the Receivables and shall (or shall cause the applicable Originator to) promptly pay, remit or account for, as applicable, all sales taxes (including, without limitation, PST, QST and GST) paid or owing in connection with any
Receivables, except any such taxes which are not yet delinquent or are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with applicable generally accepted accounting principles shall
have been set aside on its books. 
 Section 6.03 Certain Rights of the
Agent. (a) Pursuant to Section 2.11 hereof, the Seller granted a security interest in the Lock-Boxes and Deposit Accounts to which the Obligors of Pool Receivables shall make payments to the Agent and, pursuant to the Deposit
Account Agreements, will provide the Agent with “control” (as such term is defined in Article 9 of the UCC) thereof. After a Trigger Event, the Agent may notify the Obligors of Pool Receivables, at any time and at the Seller’s
expense, of the ownership of Receivable Interests under this Agreement. 
 (b) At any time following the
designation of a Servicer other than an Originator pursuant to Section 6.01 or following a Trigger Event: 
 (i) At the request of the Majority Banks, the Agent may direct the Obligors of Pool Receivables that all payments thereunder be made directly to the Agent or its designee. 
 (ii) At the Agent’s request and at the Seller’s expense, the Seller shall notify each Obligor
of Pool Receivables of the ownership of Receivable Interests under this Agreement and direct that payments be made directly to the Agent or its designee. 
 (iii) At the Agent’s request and at the Seller’s expense, the Seller and the Servicer shall (A) assemble all of the documents, instruments and other records
(including, without limitation, computer tapes and disks) that evidence or relate to the Pool Receivables and the related Contracts and Related Security, or that are otherwise necessary or desirable to collect the Pool Receivables (including,
without limitation, the Insurance Policy), and shall make the same available to the Agent at a place selected by the Agent or its designee, and (B) segregate all cash, checks and other instruments received by it from time to time constituting
Collections of Pool Receivables in a manner acceptable to the Agent and, promptly upon receipt, remit all such cash, checks and instruments, duly indorsed or with duly executed instruments of transfer, to the Agent or its designee. 
 (iv) The Seller authorizes the Agent to take any and all steps in the Seller’s name and on behalf
of the Seller that are necessary or desirable, in the determination of the Agent, to collect amounts due under the Pool Receivables, including, without limitation, endorsing the Seller’s name on checks and other instruments representing
Collections of Pool Receivables and enforcing the Pool Receivables and the Related Security and related Contracts and the Insurance Policy. 
  

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 Section 6.04 Rights and Remedies. (a) If the
Servicer fails to perform any of its obligations under this Agreement, the Agent may (but shall not be required to) itself perform, or cause performance of, such obligation; and the Agent’s costs and expenses incurred in connection therewith
shall be payable by the Servicer. 
 (b) The Seller and each of the Originators shall perform their
respective obligations under the Contracts related to the Pool Receivables to the same extent as if Receivable Interests had not been sold and the exercise by the Agent on behalf of the Banks of their rights under this Agreement shall not release
the Servicer or the Seller from any of their duties or obligations with respect to any Pool Receivables or related Contracts or the Insurance Policy. Neither the Agent nor the Banks shall have any obligation or liability with respect to any Pool
Receivables or related Contracts, nor shall any of them be obligated to perform the obligations of the Seller thereunder. 
 (c) In the event of any conflict between the provisions of Article VI of this Agreement and Article VI of the Originator Purchase Agreement, the provisions of Article VI of this
Agreement shall control. 
 Section 6.05 Further Actions Evidencing Purchases. Each Originator
agrees from time to time, at its expense, to promptly execute and deliver all further instruments and documents, and to take all further actions, that may be necessary or desirable, or that the Agent may reasonably request, to perfect, protect or
more fully evidence the Receivable Interests purchased hereunder, or to enable the Banks or the Agent to exercise and enforce their respective rights and remedies hereunder. Without limiting the foregoing, each Originator will (i) upon the
request of the Agent, execute and file such financing or continuation statements, or amendments thereto, and such other instruments and documents, that may be reasonably necessary or desirable, or that the Agent may reasonably request, to perfect,
protect or evidence such Receivable Interests and (ii) mark its master data processing records evidencing the Pool Receivables with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have been sold. Each Originator
authorizes the Seller or the Agent to file financing statements or other applicable registrations under the PPSA with respect to the Originator Purchase Agreement as permitted by the UCC and the PPSA. 
 Section 6.06 Covenants of the Servicer and each Originator. (a) Audits. In the event the
Servicer is not an Originator, the Servicer will, from time to time during regular business hours as requested by the Agent, permit the Agent, or its agents or representatives (including independent public accountants, which may be the
Servicer’s independent public accountants), (i) to conduct periodic audits of the Receivables, the Related Security and the related books and records and collections systems of the Servicer, (ii) to examine and make copies of and
abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of the Servicer relating to Pool Receivables and the Related Security, including, without limitation,
the Contracts, and (iii) to visit the offices and properties of the Servicer for the purpose of examining such materials described in clause (ii) above, and to discuss matters relating to Pool Receivables and the Related Security or the
Servicer’s performance hereunder with any of the officers or employees of the Servicer having knowledge of such 
  

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matters. In the event the Servicer is an Originator, the Agent’s audit rights shall be as set forth in Section 5.02. 
 (b) Change in Credit and Collection Policy. Neither the Servicer nor any Originator will make any change in the
Credit and Collection Policy that would materially adversely affect the collectibility of any Pool Receivable or the ability of any Originator (if it is acting as Servicer) or the Servicer to perform its obligations under this Agreement. In the
event that the Servicer or any Originator makes any change to the Credit and Collection Policy, it shall, contemporaneously with such change, provide the Agent with an updated Credit and Collection Policy and a summary of all material changes.

 Section 6.07 Indemnities by the Servicer. Without limiting any other rights that the Agent,
any Bank, any of their respective Affiliates or members or any of their respective officers, directors, employees or advisors (each, a “Special Indemnified Party”) may have hereunder or under applicable law, and in consideration of
its appointment as Servicer, the Servicer hereby agrees to indemnify each Special Indemnified Party from and against any and all claims, losses and liabilities (including reasonable attorneys’ fees) (all of the foregoing being collectively
referred to as “Special Indemnified Amounts”) arising out of or resulting from any of the following (excluding, however, (a) Special Indemnified Amounts to the extent found in a final non-appealable judgment of a court of
competent jurisdiction to have resulted from gross negligence or willful misconduct on the part of such Special Indemnified Party, (b) recourse for Receivables which are not collected, not paid or uncollectible on account of the insolvency,
bankruptcy or financial inability to pay of the applicable Obligor or (c) any income taxes or any other tax or fee measured by income incurred by such Special Indemnified Party arising out of or as a result of this Agreement or the ownership of
Receivable Interests or in respect of any Receivable or any Contract, other than (i) Taxes (to the extent provided in Section 2.10) and (ii) Canadian taxes strictly on income or capital in connection with the Receivables or the
transactions contemplated by this Agreement and the other Transaction Documents and resulting from a Special Indemnified Party either (x) in the case of a Special Indemnified Party that is a Treaty Resident, having a permanent establishment in
Canada, or (y) in the case of a Special Indemnified Party that is not a Treaty Resident, carrying on business in Canada for the purposes of the Canadian Tax Act, in either case solely as a result of the transactions contemplated hereby (but in
the case of a Special Indemnified Party that is a Treaty Resident, only directly and exclusively as a result of any breach by the Seller or the Servicer (or any delegatee thereof) of its obligations hereunder or under any other Transaction
Document): 
 (i) any representation made or deemed made by the Servicer pursuant to
Section 4.02(g) hereof which shall have been incorrect in any respect when made or any other representation or warranty or statement made or deemed made by the Servicer under or in connection with this Agreement which shall have been incorrect
in any material respect when made; 
 (ii) the failure by the Servicer to comply with any
applicable law, rule or regulation with respect to any Pool Receivable or Contract; or the failure of any Pool Receivable or Contract to conform to any such applicable law, rule or regulation; 
  

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 (iii) the failure to have filed, or any delay in
filing, financing statements or other similar instruments or documents under the UCC or PPSA of any applicable jurisdiction or other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool, the Contracts and
the Related Security and Collections in respect thereof, whether at the time of any purchase or reinvestment or at any subsequent time; 
 (iv) any failure of the Servicer to perform its duties or obligations in accordance with the provisions of this Agreement, including, without limitation, any failure of the Servicer to file claims
under the Insurance Policy in a timely fashion and with properly completed supporting documentation, any action or omission by the Servicer which gives rise to an exclusion from coverage under the Insurance Policy, any failure by the Servicer to
service the Receivables in the manner required by the Insurer or any failure by the Servicer to deliver to the Insurer any document or report required by the Insurer to be delivered in a timely manner; 
 (v) the commingling of Collections of Pool Receivables at any time by the Servicer with other funds;

 (vi) any action or omission by the Servicer reducing or impairing the rights of the Banks
with respect to any Pool Receivable or the value of any Pool Receivable except in accordance with the Credit and Collection Policy and Section 6.02(c); 
 (vii) [intentionally omitted]; 
 (viii) any claim brought by any Person other than a Special Indemnified Party arising from any activity by the Servicer or its Affiliates in servicing, administering or collecting any Receivable; 
 (ix) the occurrence of any purchase or reinvestment under this Agreement on any date on which (after
giving effect to such purchase or reinvestment) the Aggregate Capital is greater than the Collateral Availability; or 
 (x) after the date hereof, any Bank shall be subject to Canadian taxes on income or capital in connection with the Receivables or the transactions contemplated by this Agreement and the other
Transaction Documents and resulting from the Seller or such Bank either (x) in the case of any such Person that is a Treaty Resident, having a permanent establishment in Canada, or (y) in the case of any such Person that is not a Treaty
Resident, carrying on business in Canada for the purposes of the Canadian Tax Act, in either case solely as a result of the transactions contemplated hereby (but in the case of any such Person that is a Treaty Resident, only directly and exclusively
as a result of any breach by the Seller or the Servicer (or any delegatee thereof) of its obligations hereunder or under any other Transaction Document). 
 Section 6.08 [Reserved] 
  

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 Section 6.09 Canadian
Residents. (a) Notwithstanding anything contained herein or anything contained in any other Transaction Document, the Servicer, as Servicer (and each Person to whom the Servicer delegates any of its responsibilities (including, without
limitation, the Subservicer), shall not while acting in Canada, and shall not (and has no authority to) delegate to any Person acting in Canada the authority to, or permit any such Person to, enter into contracts or other agreements in the name of
or on behalf of the Seller, the Agent or any Bank; and the Servicer, as Servicer (or any such delegate), is not permitted to (nor has authority to) establish an office or other place of business of the Seller, the Agent or any Bank in Canada. To the
extent any responsibilities of any Person acting in Canada (including for greater certainty a Servicer employee or servant or ACI as Subservicer) to whom the Servicer has delegated responsibilities in respect of the Pool Receivables, the Related
Security or the Collections hereunder or under any other Transaction Document involve or require such Person to enter a contract or other agreement in the name of or on behalf of the Seller, the Agent or the Banks, such servicing responsibility
shall be fulfilled solely by, or upon specific approval of, the Servicer, and such Person is authorized to take such action or give such approval, but only from a place of business outside Canada, and such Person may not delegate such responsibility
except upon consent or the direction of the Agent (and then only subject to these same restrictions). The parties hereto agree and acknowledge that the Subservicer (and any delegatee of the Servicer or the Subservicer which is a Canadian Person),
acts as an independent contractor (and not the agent) of the Servicer (or, as applicable, the Subservicer). 
 (b) Notwithstanding anything contained herein or anything contained in any other Transaction Document, the Seller (and each Person to whom the Seller delegates any of its responsibilities (including, without limitation, the
Subservicer)) shall not, while acting in Canada, and shall not (and has no authority to) delegate to any Person acting in Canada the authority to, or permit any such Person to, enter into contracts or other agreements in the name of or on behalf of
the Seller. The Seller is not permitted to (nor has authority to) establish an office or other place of business in Canada. 
 Section 6.10 Deposit Account Agreements. Without limiting Section 6.07, the Servicer hereby agrees that it will reimburse the Agent on demand for any payments or obligations that the
Agent may incur pursuant to any indemnity provided by the Agent under any Deposit Account Agreement, including, without limitation, the Blocked Accounts Agreement dated October 27, 2005 among ACI, ACSC, the Agent, Royal Bank of Canada and the
Seller, as such Deposit Account Agreements may be amended, restated, supplemented or otherwise modified from time to time. 
 ARTICLE VII 
 EVENTS OF TERMINATION 
 Section 7.01 Events of Termination. If any of the following events (“Events of Termination”) shall occur and be continuing: 
 (a) Any Servicer Default; or 
  

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 (b) The Seller shall fail to make any payment required under
Section 2.04(f) or 2.04(g); or 
 (c) Any representation or warranty (unless (x) such
representation or warranty relates solely to one or more specific Receivables incorrectly characterized as Eligible Receivables and either (i) immediately following the removal of such Receivables from the Net Receivables Pool Balance the
Aggregate Capital is not greater than the Collateral Availability or (ii) the Seller shall have made any required deemed Collection payment pursuant to Section 2.04(f) with respect to such Receivables or (y) in the case of the
representations and warranties contained in Sections 4.01(a), (j) (the first sentence only) or (q), the breach of such representation or warranty is capable of being cured and is in fact cured (without any adverse impact on the Agent or the
Banks or the collectibility of the Pool Receivables) within five Business Days after the first date on which the Seller obtains knowledge or receives written notice of such breach from the Agent) made or deemed made by ACI, any Originator or the
Seller (or any of their respective officers) under or in connection with this Agreement or any other Transaction Document or any information or report delivered by ACI, any Originator or the Seller pursuant to this Agreement or any other Transaction
Document shall prove to have been incorrect or untrue in any material respect as of the date when made or deemed made or delivered; or 
 (d) The Seller or any Originator shall fail to perform or observe (i) any term, covenant or agreement contained in this Agreement (other than as referred to in Section 7.01(b) or
clauses (ii) and (iii) of this Section 7.01(d)) or any other Transaction Document (other than the Guaranty Agreement) on its part to be performed or observed and any such failure shall remain unremedied for 10 days after written
notice thereof shall have been given to the Seller by the Agent, (ii) any covenant applicable to it contained in Sections 5.01(d), 5.01(g), 5.01(h), 5.01(m) (first sentence only), 5.01(n), 5.01(o), 5.01(p), 5.01(q) or 5.01(r) or
(iii) any covenant or agreement contained in Section 5.02 on its part to be performed or observed and any such failure referred to in this clause (iii) shall remain unremedied for three Business Days; or 
 (e) Any Abitibi Entity shall fail to pay any principal of or premium or interest on any of its Material Debt when the
same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to
such Material Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Material Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument,
if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Material Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to such Material
Debt, and shall continue after the applicable grace period, if any, specified in such agreement or instrument, the effect of which default or other event or condition is to cause, or to permit the holder or beneficiary of such Material Debt to
cause, with the giving of notice if required, such Material Debt to become due prior to its stated maturity or to become subject to a mandatory offer to purchase by the obligor thereunder; provided that this clause (e) shall not apply to
secured Debt that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Debt, if such sale or transfer is permitted hereunder, under the Guaranty Agreement and under the documents providing for such Debt;
or 
  

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 (f) Any purchase or any reinvestment pursuant to this Agreement shall
for any reason (other than pursuant to the terms hereof) cease to create, or any Receivable Interest shall for any reason cease to be, a valid and perfected first priority undivided percentage ownership interest to the extent of the pertinent
Receivable Interest in each applicable Pool Receivable and the Related Security and Collections with respect thereto; or the security interest created pursuant to Section 2.11 shall for any reason cease to be a valid and perfected first
priority security interest in the collateral security referred to in that section; or 
 (g) (i) The
Seller shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or (ii) any proceeding shall be instituted
by or against the Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors or arrangement of debt, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property
and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or (iii) any receiver, trustee, custodian or
similar official shall be appointed for the Seller under any private right; or (iv) the Seller shall take any corporate action to authorize any of the actions set forth above in this subsection (g); or 
 (h) [Reserved]; or 
 (i) The Aggregate Capital on any Reporting Date shall be greater than the Collateral Availability unless the Seller reduces the outstanding Capital on the Business Day immediately following the date
the relevant Seller Report is due, bringing the Aggregate Capital to less than or equal to the Collateral Availability; or 
 (j) There shall have occurred any material adverse change (as determined by the Agent or the Majority Banks) in the collectibility of the Receivables Pool or the ability of ACI, any Originator, the
Seller or the Servicer to collect Pool Receivables or otherwise perform its obligations under this Agreement and the other Transaction Documents, other than the filing or the effect of the Bankruptcy Case and the Canadian Case or the circumstances
and events leading up thereto; or 
 (k) An “Event of Termination” or “Facility Termination
Date” shall occur under the Originator Purchase Agreement, or the Originator Purchase Agreement shall cease to be in full force and effect; or 
 (l) All of the outstanding capital stock of the Seller shall cease to be owned, directly or indirectly, by ACSC, or all of the outstanding capital stock of ACSC or ACI shall cease to be owned,
directly or indirectly, by the Parent; or 
  

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 (m) One or more judgments for the payment of money (except to the
extent covered by insurance as to which the insurer has acknowledged such coverage in writing) shall be rendered against the Seller, and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be
effectively stayed, or any action shall be taken by a judgment creditor to attach or levy upon any assets of the Seller to enforce any such judgment; or 
 (n) One or more judgments for the payment of money in an aggregate amount in excess of $10,000,000 or the Canadian Dollar Equivalent thereof (except to the extent covered by insurance as to which the
insurer has acknowledged such coverage in writing) shall be rendered against the Parent or any Abitibi Entity or any combination thereof, and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be
effectively stayed (including as a result of the Bankruptcy Case or the Canadian Case), or any action shall be taken by a judgment creditor to attach or levy upon any assets of the Parent or any Originator or the Seller to enforce any such judgment;
or there shall be rendered against the Seller or any Abitibi Entity a nonmonetary judgment with respect to any event which causes or could reasonably be expected to cause a Material Adverse Effect; or 
 (o) The PBGC or the Internal Revenue Service shall, or shall notify the Parent, the Seller or the Originators of its
intention to, file notice of a lien pursuant to Section 4068 of ERISA or Section 6320 of the Code with regard to any of the assets of the Parent, the Seller or the Originators and such lien has not been discharged within 30 days of receipt
of notice thereof and the amount of such lien is greater than $1,000,000; or 
 (p) (i) ACI shall fail
to make any payment required by the Undertaking (Originator) or the Undertaking (Servicer) or (ii) ACI shall fail to perform or observe any other term, covenant or agreement contained in the Undertaking (Originator) or the Undertaking
(Servicer) and any such failure shall remain unremedied for 10 days after written notice thereof shall have been given to the Seller by the Agent, or (iii) any of the Undertaking (Originator) or the Undertaking (Servicer) shall cease to be
in full force and effect; or 
 (q) The Insurer shall refuse to pay any claim under the Insurance Policy
specific to the Receivables solely as a result of an action by an Originator constituting “Corruption”, as such term is defined in Section 8(7) of the Insurance Policy; or 
 (r) The Insurer shall terminate, or send ACI any notice of termination of, the Insurance Policy pursuant to
Section 37(2) or 37(3) of the Insurance Policy; or 
 (s) [Reserved]; or 
 (t) [Reserved]; or 
 (u) [Reserved]; or 
 (v) [Reserved]; or 
 (w) (i) The Bankruptcy Court fails to enter the US Final Order within 30 days of the US Interim Order (or within such
longer period, not to exceed 60 days, as may be agreed

  

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in writing by the Agent), (ii) the US Interim Order, the Canadian Amended Order or the US Final Order is reversed, vacated, stayed or modified, in each case in a manner adverse to the
interests of the Banks (in the case of the Canadian Amended Order, solely with respect to the Securitization Provisions), (iii) the Canadian Amended Order (solely with respect to the Securitization Provisions), the US Interim Order (at any time
prior to the entry of the US Final Order) or the US Final Order (thereafter) shall cease to be in full force and effect or (iv) any Abitibi Entity shall fail to comply with any provision relating to the rights of the Agent or the Banks in the
Canadian Amended Order, the US Interim Order (at any time prior to the entry of the US Final Order) or the US Final Order (thereafter), in each case as applicable; or 
 (x) An order with respect to any of the Bankruptcy Case shall be entered by the Bankruptcy Court (or any Abitibi Entity shall file an application or motion for entry of an
order) (i) appointing a trustee under Chapter 7 or Chapter 11 of the Bankruptcy Code, (ii) appointing an examiner with enlarged powers (beyond those set forth in Section 1106(a)(3) and (4) of the Bankruptcy Code) relating to the
operation of the business under Section 1106(b) of the Bankruptcy Code, or (iii) dismissing (under Section 1112 of the Bankruptcy Code or otherwise) or converting the Bankruptcy Case to a Chapter 7 case; or an order shall be
entered by the Canadian Court (or any Abitibi Entity shall file an application or motion for entry of an order) terminating the Canadian Case or converting the Canadian Case to a proceeding under the Bankruptcy and Insolvency Act (Canada) or
appointing a trustee in bankruptcy, a receiver, an interim receiver, a receiver and manager or another official with similar powers over ACI or its assets; or 
 (y) [Reserved]; or 
 (z) (i) An
order shall be entered by the Bankruptcy Court confirming a plan of reorganization in the Bankruptcy Case or an order shall be entered by the Canadian Court sanctioning a plan of compromise or arrangement in the Canadian Case which, in either case,
does not (x) permit (i) the Seller to repay in full in cash all Capital of all Receivable Interests and all other amounts owing hereunder and under the other Transaction Documents and (ii) the Guarantors to pay in full in cash all
amounts owed under the Guaranty Agreement, in each case on the date of effectiveness of such plan in each case in a manner satisfactory to the Agent on or before the effective date of such plan, (y) with respect to a plan of reorganization in
the Bankruptcy Case, contain a provision for the payment in full in cash of all superpriority claims granted in favor of the Agent and the Banks pursuant to the US Final Order and the US Interim Order, as applicable, and in each case in a manner
satisfactory to the Agent on or before the effective date of such plan, and (z) provide for the continuation of the superpriority claims in favor of the Agent and the Banks until such effective date; or (ii) any Abitibi Entity (or any
party with the support of any Abitibi Entity) shall have filed a plan of reorganization that either violates or contains provisions that would prevent the realization of clause (z)(i) of this subparagraph in the Bankruptcy Case or the Canadian Case;
or 
 (aa) An order with respect to either the Bankruptcy Case or the Canadian Case shall be entered by the
Bankruptcy Court or the Canadian Court, as applicable, or any appellate court (i) to revoke, reverse, stay, vacate or rescind any provision of the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry
of same), the Securitization Provisions of the Canadian Amended Order, (ii) to modify, supplement or amend

  

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any provision of the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of same), the Securitization Provisions of the Canadian Amended Order in each
case in a manner adverse to the interests of the Banks, (iii) to permit any administrative expense or any claim (now existing or hereafter arising, of any kind or nature whatsoever) to have administrative priority as to any of the Originators,
equal or superior to the priority of the Superpriority Receivables Claims or the priority of the Seller, the Agent or the Banks pursuant to the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of
same), the Securitization Provisions of the Canadian Amended Order, in each case as applicable, or to permit any court ordered priority charge to have priority as to any of the Originators, equal or superior to the priority of the Superpriority
Receivables Claims or the priority of the Seller, the Agent or the Banks pursuant to the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of same), the Securitization Provisions of the Canadian Amended
Order, in each case as applicable, (iv) to permit any administrative expense or any claim (now existing or hereafter arising, of any kind or nature whatsoever), other than the Adequate Protection Claims, to have administrative priority as to
any of the Guarantors, equal or superior to the priority of the Superpriority Guaranty Claims pursuant to the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of same) or the Securitization Provisions
of the Canadian Amended Order, in each case as applicable, or to permit any court ordered priority charge, other than the Adequate Protection Claims, to have priority as to any of the Guarantors, equal or superior to the priority of the
Superpriority Guaranty Claims pursuant to the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of same) or the Securitization Provisions of the Canadian Amended Order, in each case as applicable, or
(v) to grant or permit the grant of an Adverse Claim on the Receivables; or any Abitibi Entity shall file a motion or other pleading seeking the approval of any of the matters described in the preceding clauses (iii), (iv) and (v); or

 (bb) Any provision of the US Interim Order (prior to the entry of the US Final Order), the US Final
Order (after the entry of same), the Securitization Provisions of the Canadian Amended Order, this Agreement or any other Transaction Document, in each case as applicable, shall for any reason cease to be valid or binding or enforceable against the
Seller, any of the Originators or any Guarantor, or the Parent or any Abitibi Entity shall so state in writing; or the Parent or any Abitibi Entity shall commence or join in any legal proceeding to contest in any manner that the US Interim Order
(prior to the entry of the US Final Order), the US Final Order (after the entry of same), the Securitization Provisions of the Canadian Amended Order, this Agreement or any other Transaction Document constitutes a valid and enforceable agreement or
the Seller, any of the Originators or any Guarantor shall commence or join in any legal proceeding to assert that it has no further obligation or liability under the US Interim Order (prior to the entry of the US Final Order), the US Final Order
(after the entry of same), the Securitization Provisions of the Canadian Amended Order, this Agreement or any other Transaction Document; provided, that failure of the Intercreditor Agreement to be valid or binding or enforceable, or
commencement by or joinder of the Seller, any of the Originators or any Guarantor in any legal proceeding to contest that the Intercreditor Agreement constitutes a valid and enforceable agreement or to assert that it has no further obligation or
liability thereunder, shall not constitute an Event of Termination unless such failure, commencement or joinder results in or could reasonably be expected to result in a Material Adverse Effect; or 
  

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 (cc) The Parent or any Abitibi Entity shall seek to, or shall support
(whether by way of motion or other pleadings filed with the Bankruptcy Court or the Canadian Court or any other writing executed by any Originator or by oral argument) any other Person’s motion to, (1) disallow in whole or in part any of
the obligations arising under this Agreement or any other Transaction Document, provided that with respect to the Intercreditor Agreement, only to the extent adverse to the Agent or the Banks, (2) challenge the validity and
enforceability of the claims granted or confirmed herein or in the US Interim Order (prior to the entry of the US Final Order), the US Final Order (after the entry of same), the Securitization Provisions of the Canadian Amended Order, in each case
as applicable, in favor of the Agent and the Banks or (3) challenge the validity or the true sale/contribution nature of the transfers of the Originator Receivables from the Originators to the Seller; or 
 (dd) An order shall have been entered by the Bankruptcy Court or the Canadian Court avoiding or requiring disgorgement
by the Agent or any Bank of any amounts received in respect of the Receivable Interests or otherwise; or 
 (ee) If the Seller, any Originator or any Guarantor is enjoined, restrained or in any way prevented by court order from continuing to conduct all or any material part of its business affairs; or 
 (ff) any “Event of Default” as defined in the Guaranty Agreement shall occur or be continuing; or

 (gg) any Insurance Policy Event shall occur and be continuing; or 
 (hh) the Donohue Group’s authorization to use cash collateral shall have been terminated as a result of a failure
to replenish the Interest Account in accordance with paragraph 34(f) of the US Interim Order (at any time prior to the entry of the US Final Order) or the applicable paragraph of the US Final Order (thereafter); 
 then, and in any such event, any or all of the following actions may be taken by notice to the Seller: (x) the Agent may (and at the
direction of the Majority Banks shall) by notice to the Seller declare the Facility Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred) and (y) without limiting any right under this
Agreement to replace the Servicer, if such Event of Termination is a Servicer Default, the Agent may (and at the direction of the Majority Banks shall) designate another Person to succeed ACSC as the Servicer; provided, that, automatically
upon the occurrence of any event (without any requirement for the passage of time or the giving of notice) described in paragraph (g) of this Section 7.01, the Facility Termination Date shall occur. Upon any such declaration or designation
or upon such automatic termination, the Banks and the Agent shall have, in addition to the rights and remedies which they may have under this Agreement and the other Transaction Documents, all other rights and remedies provided after default under
the UCC, the PPSA and under other applicable law, which rights and remedies shall be cumulative. 
  

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 ARTICLE VIII 
 THE AGENT 
 Section 8.01 Authorization and
Action. Each Bank hereby appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Transaction Documents as are delegated to the Agent by the terms hereof,
together with such powers as are reasonably incidental thereto. Without limiting the foregoing, to the extent required by Section 4(d) of the Four Party Agreement as a condition to the receipt of Insurance Proceeds, each Bank hereby irrevocably
authorizes the Agent to transfer and assign to the Insurer such Bank’s Receivable Interests and all Related Security with respect thereto. As to any matters not expressly provided for by this Agreement or the other Transaction Documents
(including, without limitation, enforcement of this Agreement or the other Transaction Documents), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of the Majority Banks and such instructions shall be binding upon all Banks; provided, however, that the Agent shall not be required to take any action which
exposes the Agent to personal liability or which is contrary to this Agreement, the other Transaction Documents or applicable law. 
 Section 8.02 Agent’s Reliance, Etc. Neither the Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or
them as Agent under or in connection with this Agreement (including, without limitation, the Agent’s servicing, administering or collecting Pool Receivables as Servicer) or any other Transaction Document, except for its or their own gross
negligence or willful misconduct. Without limiting the generality of the foregoing, the Agent: (a) may consult with legal counsel (including counsel for the Parent, the Seller, the Originators and the Servicer), independent certified public
accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation
to any Bank (whether written or oral) and shall not be responsible to any Bank for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or any other Transaction Document; (c) shall
not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement relating to the Parent, Seller, any Originator or the Servicer or to inspect the property (including the
books and records) of the Parent, the Seller, any Originator or the Servicer; (d) shall not be responsible to any Bank for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto; and (e) shall incur no liability under or in respect of this Agreement or any other Transaction Document by acting upon any notice (including notice by telephone), consent, certificate or other
instrument or writing (which may be by telecopier or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
 Section 8.03 Citibank and Affiliates. The obligation of Citibank to purchase Receivable Interests under this Agreement may be satisfied by any of its Affiliates. 
  

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 With respect to any Receivable Interest or interest therein owned by it, any such Affiliate
shall have the same rights and powers under this Agreement as any Bank and may exercise the same as though its Affiliate were not the Agent. Citibank and any of its Affiliates may generally engage in any kind of business with the Parent, the Seller,
the Servicer or any Obligor, any of their respective Affiliates and any Person who may do business with or own securities of the Parent, the Seller, the Servicer, any Originator, or any Obligor or any of their respective Affiliates, all as if
Citibank were not the Agent and without any duty to account therefor to the Banks. 
 Section 8.04 Bank’s Purchase Decision. Each Bank acknowledges that it has, independently and without reliance upon the Agent, any of its Affiliates or any other Bank and based on such documents and information as it
has deemed appropriate, made its own evaluation and decision to enter into this Agreement. Each Bank also acknowledges that it will, independently and without reliance upon the Agent, any of its Affiliates or any other Bank and based on such
documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under this Agreement. 
 Section 8.05 Indemnification of Agent. Each Bank agrees to indemnify the Agent (to the extent not reimbursed by the Seller or the Servicer), ratably according to the
amount of its Bank Commitment (or, if the Bank Commitments have been terminated, then ratably according to the respective amounts of Capital of the Receivable Interests (or interests therein) owned by it), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agent in any way relating to or arising out of this
Agreement or the other Transaction Documents or any action taken or omitted by the Agent under this Agreement or the other Transaction Documents, provided that no Bank shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Agent’s gross negligence or willful misconduct. 
 Section 8.06 Syndication Agent and Documentation Agent. Nothing in this Agreement or any other Transaction Document shall impose any duty or liability whatsoever on the Syndication Agent
in such capacity or on the Documentation Agent in such capacity. 
 ARTICLE IX 
 INDEMNIFICATION 
 Section 9.01 Indemnities by the Seller. Without limiting any other rights that the Agent, the Banks, any of their respective Affiliates or members or any of their respective officers,
directors, employees or advisors (each, an “Indemnified Party”) may have hereunder or under applicable law, the Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims, losses and liabilities
(including reasonable attorneys’ fees) (all of the foregoing being collectively referred to as “Indemnified Amounts”) arising out of or resulting from this Agreement or the other Transaction Documents or the use of proceeds of
purchases or reinvestments or the ownership of

  

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Receivable Interests or in respect of any Receivable or any Contract, excluding, however, (a) Indemnified Amounts to the extent found in a final non appealable judgment of a court of
competent jurisdiction to have resulted from gross negligence or willful misconduct on the part of such Indemnified Party, (b) recourse (except for the obligation of the Seller to pay the Termination Amount and as otherwise specifically
provided in this Agreement) for Receivables which are not collected, not paid or uncollectible on account of the insolvency, bankruptcy or financial inability to pay of the applicable Obligor or (c) any income taxes or any other tax or fee
measured by income incurred by such Indemnified Party arising out of or as a result of this Agreement or the ownership of Receivable Interests or in respect of any Receivable or any Contract, other than (i) Taxes (to the extent provided in
Section 2.10) and (ii) Canadian taxes strictly on income or capital in connection with the Receivables or the transactions contemplated by this Agreement and the other Transaction Documents and resulting from the Seller or any Bank either
(x) in the case of any such Person that is a Treaty Resident, having a permanent establishment in Canada, or (y) in the case of any such Person that is not a Treaty Resident, carrying on business in Canada for the purposes of the Canadian
Tax Act, in either case solely as a result of the transactions contemplated hereby (but in the case of any such Person that is a Treaty Resident, only directly and exclusively as a result of any breach by the Seller or the Servicer (or any delegatee
thereof) of its obligations hereunder or under any other Transaction Document). Without limiting or being limited by the foregoing, the Seller shall pay on demand to each Indemnified Party any and all amounts necessary to indemnify such Indemnified
Party from and against any and all Indemnified Amounts relating to or resulting from any of the following: 
 (i) the characterization in any Seller Report or other written statement made by or on behalf of the Seller of any Receivable as an Eligible Receivable or as included in the Net Receivables Pool
Balance which, as of the date of such Seller Report or other statement, is not an Eligible Receivable or should not be included in the Net Receivables Pool Balance; 
 (ii) any representation or warranty or statement made or deemed made by the Seller (or any of its
officers) under or in connection with this Agreement or any of the other Transaction Documents which shall have been incorrect in any material respect as of the date when made; 
 (iii) the failure by the Seller to comply with any applicable law, rule or regulation with respect to
any Pool Receivable or the related Contract or the transfer of such Pool Receivable hereunder; or the failure of any Pool Receivable or the related Contract to conform to any such applicable law, rule or regulation; or the failure by the Seller to
pay, remit or account for any taxes related to or included in a Receivable when due; 
 (iv) the failure to vest in the Banks (a) a perfected undivided percentage ownership interest, to the extent of each Receivable Interest, in the Receivables in, or purporting to be in, the Receivables Pool and the Related Security
and Collections in respect thereof, or (b) a perfected security interest as provided in Section 2.11, in each case free and clear of any Adverse Claim; 
  

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 (v) the failure to have filed or sent, or any delay in
filing or sending, financing statements, notices or other similar instruments or documents under the UCC or the PPSA of any applicable jurisdiction or other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables
Pool and the Related Security and Collections in respect thereof, whether at the time of any purchase or reinvestment or at any subsequent time; or the failure to have properly notified any Obligor of the transfer, sale or assignment of any
Receivable pursuant to the Transaction Documents, to the extent such notice is required to perfect the same under Quebec law; for purposes of this clause (v), “perfect” under Quebec law, means to render opposable, publish and
allow the setting up of the purchaser's interest in, and right to collect payment under, the assets which are the subject of such transfer, sale and assignment, and to make opposable, publish and allow the setting up of such transfer, sale and
assignment as against Obligors and other third parties, including any trustee in bankruptcy; 
 (vi) any dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool (including, without limitation, a defense
based on such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of the merchandise or services related
to such Receivable or the furnishing or failure to furnish such merchandise or services or relating to collection activities with respect to such Receivable (if such collection activities were performed by the Seller or any of its Affiliates acting
as Servicer); 
 (vii) any failure of the Seller to perform its duties or obligations in
accordance with the provisions hereof or to perform its duties or obligations under the Contracts, including, without limitation, any act or omissions by the Seller which gives rise to an exclusion from coverage under the Insurance Policy;

 (viii) any products liability or other claim arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract; 
 (ix) the
commingling of Collections of Pool Receivables at any time with other funds; 
 (x) any
investigation, litigation or proceeding related to this Agreement or the use of proceeds of purchases or reinvestments or the ownership of Receivable Interests or in respect of any Receivable or Related Security or Contract (including, without
limitation, in connection with the preparation of a defense or appearing as a third party witness in connection therewith and regardless of whether such investigation, litigation or proceeding is brought by the Seller, an Indemnified Party or any
other Person or an Indemnified Party is otherwise a party thereto); 
  

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 (xi) any failure of the Seller to comply with its
covenants contained in this Agreement or any other Transaction Document; 
 (xii) any claim
brought by any Person other than an Indemnified Party arising from any activity by the Seller or any Affiliate of the Seller in servicing, administering or collecting any Receivable; 
 (xiii) any claim arising out of any failure by the Seller to obtain a consent (if required) from the
relevant Obligor to the transfer, sale or assignment of any Receivable pursuant to the Transaction Documents; or 
 (xiv) after the date hereof, any Bank shall be subject to Canadian taxes on income or capital in connection with the Receivables or the transactions contemplated by this Agreement and the other
Transaction Documents and resulting from the Seller or such Bank either (x) in the case of any such Person that is a Treaty Resident, having a permanent establishment in Canada, or (y) in the case of any such Person that is not a Treaty
Resident, carrying on business in Canada for the purposes of the Canadian Tax Act, in either case solely as a result of the transactions contemplated hereby (but in the case of any such Person that is a Treaty Resident, only directly and exclusively
as a result of any breach by the Seller or the Servicer (or any delegatee thereof) of its obligations hereunder or under any other Transaction Document). 
 ARTICLE X 
 MISCELLANEOUS 
 Section 10.01 Amendments, Etc. 
 (a) Amendments Generally. No amendment or waiver of any provision of this Agreement or any other Transaction Document, and no consent to any departure by the Seller, the
Servicer, any Originator or any Guarantor therefrom, shall be effective unless in a writing signed by the Agent with the written consent of the Majority Banks and, in the case of any such amendment, the Seller and the Servicer, and then such
amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, 
 (i) without the prior written consent of each Bank 
 (1) amend this Section 10.01(a), Section 2.02(c), Section 2.04(i) or Section 2.12,
the definitions of “Majority Banks”, “Percentage” or “Super Majority Banks” or any provision of this Agreement that, by its terms, expressly requires the approval or concurrence of all Banks; or 
 (2) amend, modify or waive any provision of this Agreement in any way which would 
  

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 (A) reduce the amount of Capital or Yield that is
payable on account of any Receivable Interest or delay any scheduled date for payment thereof or reduce the Applicable Margin or change the order of application of Collections to the payment thereof, or 
 (B) reduce fees payable by the Seller to or for the account of such Bank hereunder or delay the dates
on which such fees are payable; or 
 (3) except as contemplated by Sections 2.14 and 2.15
(each as in effect on the Closing Date) extend the Facility Termination Date; 
 (4) amend,
modify or waive Section 2.04(e), 2.05(c), 2.14(ii), 2.15(ii) or 8.05 in a manner that would alter the ratable application of funds (or, in the case of Section 8.05, the ratable indemnity) required pursuant thereto; 
 (5) amend, modify or waive Section 2.01(a), 2.02(a), 2.02(b) or 2.04(b)(ii) in a manner that would
result in purchases of Receivable Interests or reinvestments of Collections being made by the Banks other than on a pro rata basis; 
 (6) subordinate or release all or substantially all of the Collateral, or release all or substantially all of the aggregate value of the guarantees made by the Guarantors pursuant to the Guaranty
Agreement; or 
 (7) amend the definition of “Bank Commitment” in any manner that
would result in or permit the Bank Commitments to be reduced other than on a pro rata basis as a result of a reduction in the Purchase Limit; 
 (ii) without the consent of the applicable Bank, increase the Bank Commitment of such Bank, subject such Bank to any additional obligations, or decrease the Receivable Interest
of such Bank; and 
 (iii) without the consent of the Super Majority Banks, (x) amend
the definition of “Collateral Availability”, “Net Receivables Pool Balance” or “Eligible Receivables” or the components thereof in any manner the effect of which would be to increase Collateral
Availability or (y) release any Guarantor from the guarantee made by it pursuant to the Guaranty Agreement. 
 Notwithstanding the foregoing, (i) Schedules IV and V hereto may be amended in accordance with the procedures set forth in Section 5.01(b) and Section 5.01(g), respectively and (ii) the amendments described in clauses
(c) through (e) of this Section 10.01 shall become effective upon the satisfaction of the applicable conditions precedent set forth in this Section 10.01. No

  

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failure on the part of the Banks or the Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right
hereunder preclude any other or further exercise thereof or the exercise of any other right. 
 Notwithstanding anything to the
contrary herein, no Defaulted Bank shall have any right to approve or disapprove any amendment, modification, supplement, waiver or consent hereunder, except that the Commitment of such Bank may not be increased or extended without the consent of
such Bank. 
 (b) Replacement of Banks in Certain Circumstances. If any Bank does not consent
to a proposed amendment, modification or waiver (a “Non-Consenting Bank”) that requires the consent of each Bank and that has been approved by the Majority Banks, the Seller shall have the right, at its own expense (which shall
include the processing and recordation fee referred to in Section 10.03(b)(iii)), upon notice to such Non-Consenting Bank and the Agent, to require such Non-Consenting Bank to transfer and assign without recourse (in accordance with and subject
to the restrictions contained in Section 10.03) all of its rights and obligations under this Agreement to an Eligible Assignee, which Eligible Assignee (which may be another Bank that is not a Non-Consenting Bank, if such other Bank accepts
such assignment) shall assume such obligations; provided, however, that (i) no such assignment shall conflict with any applicable law, rule or regulation or order of any governmental authority and (ii) the assignee or the
Seller shall pay to the Non-Consenting Bank in immediately available funds on the date of such assignment the amount of such Non-Consenting Bank's Capital, accrued Yield and Fees thereon and all other obligations accrued for its account or owed to
it hereunder (including the additional amounts asserted and payable pursuant to Section 2.08 or 2.10, if any). 
 (c) [Reserved] 
 (d) [Reserved] 
 (e) Change of Address Amendments. Effective as of the effective date (the “Change of Address Effective
Date”) of the Change of Address as set forth in the Notice of Change of Address to be delivered by the Seller to the Agent in the form attached hereto as Annex L (the “Notice of Change of Address”), which Notice of Change
of Address shall be delivered to the Agent by no later than five Business Days prior to the Change of Address Effective Date, and subject to the satisfaction of the conditions precedent set forth below, Schedules III and IV to this Agreement are
deleted in their entirety and replaced with Schedules III and IV attached to the Notice of Change of Address, respectively. 
 The amendments described in this Section 10.01(e) shall become effective on the Change of Address Effective Date, subject to the receipt by the Agent, on or prior to the Change of Address Effective
Date, of acknowledgment copies or time stamped receipt copies (or other satisfactory evidence of filing) of proper financing statements and financing statement amendments, duly filed against ACSC and the Seller on or before the Change of Address
Effective Date under the UCC of all jurisdictions that the Agent may deem necessary or desirable in order to continue perfection of the ownership and security interests contemplated by this Agreement and the other Transaction Documents. 

 

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 (f) Waivers. The Agent, as agent for the Banks, hereby waives
the requirement to provide thirty (30) days’ written notice set forth in Section 5.01(k)(vii), solely to the extent relating to the Change of Address; provided that the Seller timely complies with the requirements to provide
such notice in each case pursuant to its agreements set forth in clause (e) of this Section 10.01. 
 Section 10.02 Notices, Etc. All notices and other communications hereunder shall, unless otherwise stated herein, be given in writing or by any telecommunication device capable of creating a written record, (i) to each
of the Seller, the Servicer and the Agent, at its address set forth on Schedule III hereto, (ii) to each Bank, at its address specified in its Administrative Questionnaire or (iii) to any party hereto at such other address as shall be
designated by such party in a notice to the other parties hereto given as provided herein. 
 All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or overnight courier service or sent by telecopy equipment of the sender, or
on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section or in accordance with the latest unrevoked direction from
such party given in accordance with this Section. 
 Section 10.03
Assignability. (a) [Reserved]. 
 (b) Each Bank may assign to any Eligible Assignee or to
any other Bank all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Bank Commitment and any Receivable Interests or interests therein owned by it); provided,
however, that 
 (i) each such assignment shall be of a constant, and not a varying,
percentage of all rights and obligations under this Agreement; 
 (ii) the amount being
assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance Agreement with respect to such assignment) shall in no event be less than the lesser of (x) $5,000,000 and (y) all of the assigning
Bank’s Bank Commitment, provided that all concurrent assignments to Related Funds will be treated as a single assignment for purposes of determining whether such minimum amount has been met; and 
 (iii) the parties to each such assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance Agreement, together with a processing and recordation fee of $3,500. 
 Upon such execution, delivery, acceptance and recording, from and after the effective date specified in such Assignment and Acceptance Agreement, (x) the assignee thereunder shall be a party to this
Agreement and, to the extent that rights and obligations

  

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hereunder have been assigned to it pursuant to such Assignment and Acceptance Agreement, have the rights and obligations of a Bank hereunder and (y) the assigning Bank shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance Agreement, relinquish such rights and be released from such obligations under this Agreement (and, in the case of an Assignment and Acceptance
Agreement covering all or the remaining portion of an assigning Bank's rights and obligations under this Agreement, such Bank shall cease to be a party hereto). 
 (c) The Agent shall maintain at its address referred to in Section 10.02 of this Agreement a copy of each Assignment and Acceptance Agreement delivered to and accepted by
it and a register for the recordation of (i) the names and addresses of the Banks and (ii) the Bank Commitment of, and aggregate outstanding Capital of Receivable Interests or interests therein owned by, each Bank from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes regarding the ownership of the Receivable Interests, absent manifest error, and the Seller, the Originators, the Agent and the Banks shall
treat each person whose name is recorded in the Register as the owner of a Receivable Interests and as a Bank under this Agreement for all purposes of this Agreement. The Register shall be available for inspection by the Seller or any Bank at any
reasonable time and from time to time upon reasonable prior notice. The parties hereto intend that the Register will satisfy the requirement that indebtedness for U.S. federal income tax purposes represented by the Receivable Interests be in
"registered form" as such term is used for purposes of portfolio interest under sections 881(c) and 163(f) of the Code and the regulations promulgated thereunder. Upon its receipt of an Assignment and Acceptance Agreement executed by an
assigning Bank and an Eligible Assignee, the Agent shall, if such Assignment and Acceptance Agreement has been completed, (i) accept such Assignment and Acceptance Agreement, (ii) record the information contained therein in the Register
and (iii) give prompt notice thereof to the Seller. 
 (d) Notwithstanding any other provision of this
Section 10.03, any Bank may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, rights to payment of Capital and Yield) under this Agreement (i) to secure obligations of such
Bank to a Federal Reserve Bank or (ii) to any holder or trustee of such Bank's securities, without notice to or consent of the Seller or the Agent; provided that no such pledge or grant of a security interest shall release a Bank from
any of its obligations hereunder or substitute any such pledgee or grantee for such Bank as a party hereto. 
 (e) Each Bank may sell participations, to one or more banks or other entities (each such bank or entity, a “Participant”), in or to all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Bank Commitment and the Receivable Interests or interests therein owned by it); provided, however, that 
 (i) such Bank’s obligations under this Agreement (including, without limitation, its Bank Commitment to the Seller hereunder) shall remain unchanged, and 
 (ii) such Bank shall remain solely responsible to the other parties to this Agreement for the
performance of such obligations. 
  

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 The Agent, the other Banks, the Seller and the Servicer shall have the right to continue to
deal solely and directly with such Bank in connection with such Bank’s rights and obligations under this Agreement. 
 (f) The rights and obligations of the Agent herein shall be assignable by the Agent and its successors and assigns; provided, however, that the Agent agrees that it will not assign such
rights and obligations to any Person other than an Affiliate of Citibank unless: 
 (i) in
the reasonable judgment of the Agent, the Agent determines that continued service by it (or its Affiliate) as Agent hereunder would be inconsistent with, or otherwise materially disadvantageous under, applicable legal, tax or regulatory
restrictions; or 
 (ii) an Event of Termination or Incipient Event of Termination shall
have occurred and be continuing; or 
 (iii) the Seller shall have consented to such
assignment (such consent not to be unreasonably withheld or delayed). 
 (g) The Seller may not assign its
rights or obligations hereunder or any interest herein without the prior written consent of the Agent and each Bank. 
 Section 10.04 Costs and Expenses. (a) The Seller shall pay (i) all reasonable out-of-pocket expenses incurred by the Agent, including the reasonable fees, charges and disbursements of Davis Polk &
Wardwell, special counsel for the Agent and any local counsel retained by the Agent, in connection with the syndication of the receivables facilities provided for herein, the preparation and administration of the Transaction Documents or any
amendments, modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out-of-pocket expenses incurred by the Agent or any Bank, including the fees,
charges and disbursements of any counsel for the Agent or any Bank, in connection with the enforcement or protection of its rights in connection with any Transaction Document, including its rights under this Section, or in connection with the
Receivable Interests, including all such out-of-pocket expenses incurred during any workout or restructuring in respect of such Receivable Interests. 
 (b) Further, the Seller agrees to pay any and all breakage and other expenses of the Agent and the Banks (including, without limitation, reasonable attorneys’ fees and disbursements and the cost
including accrued interest, of terminating or transferring any agreements such as interest rate swaps, over-the-counter forward agreements and future contracts engaged by the Banks or the Agent) in connection with any reduction of the Capital
relating to the funding or maintenance of any Receivable Interest (or portion thereof), but without duplication of any such breakage and other expenses that were included in any Liquidation Fee paid with respect thereto. 
 Section 10.05 No Proceedings. Each of the Seller, the Agent, the Servicer, each Originator, ACI, each Bank,
each assignee of a Receivable Interest or any interest therein and each entity which enters into a commitment to purchase Receivable Interests or interests therein

  

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hereby agrees that it will not institute against, or join any other Person in instituting against, Eureka any proceeding of the type referred to in Section 7.01(g) so long as any commercial
paper or other senior indebtedness issued by Eureka shall be outstanding or there shall not have elapsed one year plus one day since the last day on which any such commercial paper or other senior indebtedness shall have been outstanding.

 Section 10.06 Confidentiality. (a) The Seller, each Originator and the Servicer
each agrees to maintain the confidentiality of this Agreement, the Originator Purchase Agreement and the Fee Agreement and the respective terms thereof in communications with third parties and otherwise; provided that this Agreement or the
terms hereof may be disclosed (i) to third parties to the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory to the Agent, (ii) to their respective Affiliates,
directors, officers, employees, agents, auditors and advisors, including, without limitation, attorneys, accountants and consultants on a strictly “need to know” basis if they agree to hold it confidential, (iii) to third parties,
solely with respect to (x) the Purchase Limit, the Facility Termination Date, the aggregate Outstanding Balance of Receivables, a summary of the Events of Termination, the definition of “Receivable” and the related definition of
“Originator Receivable” set forth in the Originator Purchase Agreement and (y) other terms of the Agreement, to the extent that the Agent has provided its prior written consent to such disclosure, (iv) to the extent required by
applicable law, regulation, subpoena, court order or other legal process, including, without limitation, under applicable securities regulations or by securities regulators, or by any court, regulatory body or agency having jurisdiction over such
party, (v) in connection with any action or proceeding related to, or the exercise of any remedies under, this Agreement and the other Transaction Documents, or (vi) as may be determined by such party or its auditors, acting reasonably, to
be necessary in connection with financial reporting under generally accepted accounting principals or to rating agencies in respect of such party; and provided, further, that such party shall have no obligation of confidentiality in
respect of any information which may be generally available to the public or becomes available to the public through no fault of such party. 
 (b) Each Bank and the Agent agrees to keep confidential and not disclose to any third parties any information, including, but not limited to, any Contracts, the identity of the Obligors, any customer
lists and aging, the Parent's or its Affiliates’ accounts receivable policy, credit policy, technical information, operating procedures, financial information, research data, documents, formulas, compilations, reports, studies, test results,
software (including source code and object code), database compilations and the format, structure and configuration of any databases (whether or not such information is marked “confidential,” “privileged” or otherwise identified
as confidential) (collectively, the “Confidential Information”) provided to it pursuant to the terms of this Agreement, the Transaction Documents or otherwise with respect to the Parent, the Seller, the Originators, the Obligors,
the Contracts or the Receivables Pool (including the Seller Reports) in connection with the transactions contemplated by this Agreement and the other Transaction Documents; provided, that such Confidential Information may be disclosed
(i) to such party’s Affiliates, directors, officers, employees, agents, auditors and advisors, including, without limitation, attorneys, accountants and consultants (such Affiliates, directors, officers, employees, agents, auditors and
advisors are collectively referred to herein as the “Representatives”) and to such party's assignees and participants and potential assignees and

  

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participants and their respective counsel, (ii) to the rating agencies, (iii) to the extent required by applicable law, regulation, subpoena, court order or other legal process and
(iv) to the extent requested by any governmental or regulatory authority having jurisdiction over such party; provided, further, that (A) any such disclosure pursuant to clause (i) or (ii) shall be disclosed to such
party on a strictly “need to know” basis and (B) in the case of any such disclosure pursuant to clause (i), the party receiving such Confidential Information shall agree to hold such information confidential in accordance with terms
consistent with this Section 10.06 or shall be legally obligated, or otherwise obligated by virtue of such party’s relationship with a Bank or the Agent, to preserve the confidentiality thereof (and any Person making a disclosure pursuant
to the foregoing will be responsible for any failure of any of its own Representatives to comply with the provisions of this Section 10.06); and provided, further that such party shall have no obligation of confidentiality in
respect of any information (X) which may be generally available to the public or becomes available to the public through no fault of such party, (Y) that was or becomes, without a breach of this Section 10.06 by such party, available
to such party on a non-confidential basis from a source that is not known to such party to be subject to a confidentiality agreement with the Parent, or (Z) that is approved for release or other use by written authorization of an authorized
representative of the Parent or the applicable Affiliate of the Parent. In the event that any Bank or the Agent or any of their Representatives are requested pursuant to, or required by, applicable law, regulation or legal process to disclose any of
the Confidential Information, such party shall (except in the case of an examination by any regulatory authority), if permitted by applicable law, (x) promptly notify the Parent, the Seller, the applicable Originator or the Servicer, as the
case may be, so that such Person may seek a protective order, injunctive relief or other appropriate remedy and (y) use its reasonable efforts to request that the Person or entity propounding any subpoena or demand give the Parent, the Seller,
the applicable Originator or the Servicer, as the case may be, a reasonable amount of time to object to the disclosure or production of the Confidential Information. 
 (c) Upon the written request of the Parent, the Seller, an Originator or the Servicer, at any time following the later of the Facility Termination Date and the date on which no
Capital or Yield on any Receivable Interest shall be outstanding and all other amounts owed by the Seller hereunder are paid in full, any party hereto that has received Confidential Information will either (i) promptly deliver to the Person
requesting such Confidential Information, and at the requesting party's own expense, all copies of the Confidential Information in its or its Representatives’ possession or (ii) if so requested, promptly destroy all copies of the
Confidential Information in its or its Representatives’ possession and confirm in writing such destruction to the Person requesting such destruction. Notwithstanding the foregoing, the party to which any such request is made may retain
Confidential Information in accordance with its document retention procedures, provided that such party's obligations with respect to such Confidential Information shall continue in accordance with the terms of this Section 10.06. 

(d) Notwithstanding any other provision herein or in any other Transaction Document, each Bank and the Agent hereby
confirms that the Seller, each Originator and the Servicer (and each employee, representative or other agent of each such party) may disclose to any and all Persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of
the transaction contemplated by this Agreement and the other Transaction Documents. 
  

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 Section 10.07 GOVERNING LAW. THIS AGREEMENT SHALL, IN
ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE INTERESTS OF THE AGENT AND THE BANKS IN THE
RECEIVABLES AND THE ORIGINATOR PURCHASE AGREEMENT ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
 Section 10.08 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement. 
 Section 10.09 Survival of
Termination. The provisions of Sections 2.08, 2.10, 6.07, 9.01, 10.04, 10.05 and 10.06 shall survive any termination of this Agreement. 
 Section 10.10 Consent to Jurisdiction. (a) Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the Bankruptcy Court and, if the Bankruptcy Court
does not have (or abstains from) jurisdiction, any New York State or Federal court sitting in New York City in any action or proceeding arising out of or relating to this Agreement or the other Transaction Documents, or for recognition or
enforcement of any judgment, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court.
The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto agree 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. 
 (b) Each party hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that 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 Transaction Document in any court referred to in subsection (a) of this Section. Each party hereto irrevocably waives, to the fullest extent permitted by law,
the defense of an inconvenient forum to the maintenance of any such suit, action or proceeding in any such court. 
 (c) Each of the Seller and the U.S. Originator consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address specified in Section 10.02. ACI consents
to the service of any and all process in any such action or proceeding by the mailing of copies of such process to the attention of the U.S. Originator at its address specified in Section 10.02, or in any other manner permitted by

  

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applicable law. Nothing in this Section 10.10 shall affect the right of any Bank or the Agent to serve legal process in any other manner permitted by law. 
 (d) To the extent that ACI has or hereafter may acquire any immunity from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, ACI hereby irrevocably waives such immunity in respect of its obligations under
this Agreement and the other Transaction Documents. 
 Section 10.11 WAIVER OF JURY TRIAL. EACH
PARTY HERETO HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED PURSUANT HERETO. 
 Section 10.12 Judgment. (a) If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Agent or its assigns could purchase Dollars with such other currency at New
York, New York on the Business Day preceding that on which final judgment is given. 
 (b) The obligations
of the Seller, the Servicer and each Originator (each, a “Payor”) in respect of any sum due from such Payor to the Banks or the Agent (each, a “Recipient”) hereunder shall, notwithstanding any judgment in a currency
other than Dollars, be discharged only to the extent that on the Business Day following such Recipient’s receipt of any sum adjudged to be so due in such other currency, such Recipient may, in accordance with normal banking procedures purchase
(and remit in New York) Dollars with such other currency; if the Dollars so purchased and remitted are less than the sum originally due to such Recipient in Dollars, the relevant Payor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the relevant Recipient against such loss, and if the Dollars so purchased exceed the sum originally due to the relevant Recipient in Dollars, the relevant Recipient agrees to remit to the relevant Payor such excess.

 Section 10.13 Execution by ACI. This Agreement shall be considered to be executed and
delivered by ACI in the United States of America and once an authorized director or officer of ACI resident in the United States of America has executed the same. 
 Section 10.14 Language. This Agreement and all related documents have been written in the English language at the express request of the parties. Le présent
contrat ainsi que tous les documents s’y rattachant ont été rédigés en anglais à la demande expresse des parties. 
 Section 10.15 Tax Treatment. It is the intent of the Seller, each Bank and all other parties to this Agreement that for U.S. federal, state and local income and franchise 
  

 -86- 

 
tax (in the nature of income tax) purposes only, each Receivable Interest will be treated as indebtedness secured by the Seller’s assets. The Seller, each Bank and all other parties to this
Agreement agree to treat the Receivable Interests for U.S. federal, state and local income and franchise tax (in the nature of income tax) purposes as indebtedness. The provisions of this Agreement and all related Transaction Documents shall be
construed to further these intentions of the parties. 
 Section 10.16 Acknowledgment. Each of
the parties hereto acknowledges that the amendment and restatement of the Existing RPA on the terms and conditions set forth herein shall not in any way affect any sales, transfers, assignments or security interest grants effected pursuant to the
Existing RPA or any representations, warranties or covenants made by the Seller or the Servicer with respect to such sales, transfers, assignments or security interest grants, any indemnities made by the Seller or by the Servicer, or any rights or
remedies of the Agent, Eureka or the Banks with respect thereto. Each of the relevant parties hereto confirms all sales, transfers, assignments and security interests effected pursuant to the Existing RPA. 
 Section 10.17 Assignment by Agent; Continuing Effectiveness.
 (a) CLB, in its capacity as Agent under the Existing RPA (the “Assignor Agent”), does hereby
irrevocably assign to Citibank, N.A., in its capacity as Agent under this Agreement (the “Assignee Agent”), and the Assignee Agent does hereby irrevocably assume from the Assignor Agent, as of the Closing Date, (i) all of the
Assignor Agent’s rights and obligations in its capacity as Agent under the Existing RPA and under all other Transaction Documents (as defined in the Existing RPA) and the Intercreditor Agreement to which the Assignor Agent is a party and any
other documents or instruments delivered pursuant thereto prior to the Closing Date and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor Agent (in its
capacity as such) against any Person, whether known or unknown, arising under or in connection with the Transaction Documents (as defined in the Existing RPA) and the Intercreditor Agreement, any other documents or instruments delivered pursuant
thereto or the transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i) above. Such sale and assignment is without recourse to the Assignor Agent and without representation or warranty by the Assignor Agent. Subject to satisfaction of the conditions set forth in
Section 3.03, the foregoing assignment shall be deemed to occur immediately prior to the effectiveness of the ARRPA. 
 (b) Notwithstanding the effectiveness of the assignments set forth in Section 10.17(a) and of the ARRPA, the provisions of Sections 2.08, 2.10, 6.07, 8.02, 8.04, 8.05, 9.01, 10.04, 10.05 and
10.06 of this Agreement shall continue to inure to the benefit of the Assignor Agent and Eureka. 
 (c) To
the extent required by any Transaction Document, each of the Seller, ACI and ACSC hereby irrevocably consents to the assignments set forth in Section 10.17(a), and 
  

 -87- 

 
confirms that its obligations under any such Transaction Document to which it is a party shall not be affected in any manner solely as a result of such assignments. 
 Section 10.18 Insurance Policy 
 (a) Policy Ownership. Nothing in this Agreement is intended or shall be construed to be an assignment to the Banks of the whole of or any part of the ownership of
the Insurance Policy so as to constitute the Banks the owner of the Insurance Policy. Any assignment related to the Insurance Policy is intended and shall be construed as an assignment of the proceeds of insurance and certain rights in relation
thereto (as described in the Four Party Agreement). 
 (b) Assignment. The parties hereto
acknowledge that the terms of the Four Party Agreement allow the Insurers to request an assignment of the relevant Receivable Interests from the Banks as a condition to payment of a claim under the Insurance Policy. Any such assignment by the Agent
on behalf of the Banks (including Export Development Canada (“EDC”) if it is then a Bank) to EDC, as an Insurer, shall be deemed to be an assignment by the Agent on behalf of all of the Banks (including EDC, if it is then Bank)
collectively to EDC, as an Insurer, without prejudice to the obligations of the Banks (including EDC, if it is then a Bank) under this Agreement. 
 (c) No Extinguishment. In the event that a claim is made by the Banks against EDC, as an Insurer, at a time when EDC is a Bank, EDC acknowledges that the claim and the
rights of the Banks with respect thereto and under the Insurance Policy will not be extinguished or otherwise affected by virtue of the fact that EDC is a Bank, and that the only right of EDC, as a Bank, in relation to any sum payable by it as
Insurer, will be to receive its pro rata share of such sum as a Bank. 
 Section 10.19 Amendment
and Restatement and Continuing Effect. This Agreement constitutes for all purposes an amendment and a restatement of the Existing RPA, and as of the Closing Date all Bank Commitments or Capital outstanding under the Existing RPA shall constitute
Bank Commitments and Capital under this Agreement. The Existing RPA, as amended and restated hereby, continues in full force and effect as so amended and restated by this Agreement. 
 Section 10.20 Damages Waiver. To the extent permitted by applicable law, none of the Seller, the Servicer
or the Subservicer shall assert, and each hereby waives, any claim against any Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any other Transaction Document. 
  

 -88- 

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

					
	 SELLER:
	 	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP.

			
		 	 By:
	 	 /s/ Allen Dea

		 		 	 Title: Assistant Treasurer

		 		 	 Name: Allen Dea

		
	 AGENT:
	 	 CITIBANK, N.A.,
 as Agent and Assignee Agent

			
		 	 By:
	 	 /s/ David Jaffe

		 		 	 Title: Director/ Vice President

		 		 	 Name: David Jaffe

		
	 ASSIGNOR AGENT:
	 	 CITIBANK, N.A., LONDON BRANCH,
 as Assignor Agent

			
		 	 By:
	 	 /s/ Tom Sullivan

		 		 	 Title: Vice President

		 		 	 Name: Tom Sullivan

		
	 BANKS:
	 	 CITIBANK, N.A.

			
		 	 By:
	 	 /s/ David Jaffe

		 		 	 Title: Director/ Vice President

		 		 	 Name: David Jaffe

		
		 	 BARCLAYS BANK PLC

			
		 	 By:
	 	 /s/ Cory Wishengrad

		 		 	 Title: Managing Director

		 		 	 Name: Cory Wishengrad

  

 -89- 

			
	 EXPORT DEVELOPMENT CANADA

		
	 By:
	 	 /s/ David Kneebone

	 Title:
	 	 Financing Manager

	 Name:
	 	 David Kneebone

		
	 By:
	 	 /s/ Christiane de Billy

	 Title:
	 	 Financing Manager

	 Name:
	 	 Christiane de Billy

  

			
	 SIEMENS FINANCIAL SERVICES, INC.

		
	 By:
	 	 /s/ Douglas Maher

	 Title:
	 	 Managing Director

	 Name:
	 	 Douglas Maher

		
	 By:
	 	 /s/ Anthony Casciano

	 Title:
	 	 Managing Director

	 Name:
	 	 Anthony Casciano

  

			
	 CIT BANK

		
	 By:
	 	 /s/ Daniel Burnett

	 Title:
	 	 Authorized Signatory

	 Name:
	 	 Daniel Burnett

  

 -90- 

							
	 SERVICER:
	  	 ABITIBI CONSOLIDATED SALES CORPORATION

			
		  	 By:
	 	 /s/ Allen Dea

		  		 	 Title:
	 	 Assistant Treasurer

		  		 	 Name:
	 	 Allen Dea

		
	 SUBSERVICER:
	  	 ABITIBI-CONSOLIDATED INC.

			
		  	 By:
	 	 /s/ William G. Harvey

		  		 	 Title:
	 	 Vice President and Treasurer

		  		 	 Name:
	 	 William G. Harvey

		
	 SYNDICATION AGENT:
	  	 BARCLAYS CAPITAL INC.,
 as Syndication Agent

			
		  	 By:
	 	 /s/ Cory Wishengrad

		  		 	 Title:
	 	 Managing Director

		  		 	 Name:
	 	 Cory Wishengrad

  

 -91- 

									
	 ORIGINATORS:
	  		  	 ABITIBI-CONSOLIDATED INC.

				
		  		  	 By:
	  	 /s/ William G. Harvey

		  		  		  	 Title:
	  	 Vice President and Treasurer

		  		  		  	 Name:
	  	 William G. Harvey

			
		  		  	 ABITIBI CONSOLIDATED SALES CORPORATION

				
		  		  	 By:
	  	 /s/ Allen Dea

		  		  		  	 Title:
	  	 Assistant Treasurer

		  		  		  	 Name:
	  	 Allen Dea

			
	 DOCUMENTATION AGENT
	  		  	 THE CIT GROUP / BUSINESS CREDIT, INC., as Documentation Agent

				
		  		  	 By:
	  	 /s/ Donna Evans

		  		  		  	 Title:
	  	 SVP

		  		  		  	 Name:
	  	 Donna Evans

  

 -92- 

 SCHEDULE I 
 Bank Commitments 
  

							
	 Institution
	  	Bank Commitment	  	Percentage	 
			
	 Citibank, N.A.
	  	$	118,700,000	  	43.9630	% 
			
	 Barclays Bank PLC
	  	$	42,100,000	  	15.5926	% 
			
	 Export Development Canada
	  	$	42,100,000	  	15.5926	% 
			
	 CIT Group / Business Credit, Inc.
	  	$	42,100,000	  	15.5926	% 
			
	 Siemens Financial Services, Inc.
	  	$	25,000,000	  	9.2593	% 
			
	 Total
	  	$	270,000,000	  		

  

 S-I-1 

 SCHEDULE II 
 Credit and Collection Policy 
 

 
  

							
	 Section:
	  	 Finance
	  		  	 Policy No.

				
	 Title:
	  	 Credit policies and procedures
	  		  	 Page 1 of 18

				
		  		  	     Issue date: August 1st 2001
	  	
		  		  	 Revised date: May 22nd, 2008
	  	

  
  
  

 S-II-1 

			
	 Table Of Contents:
	  	
		
	 Executive Summary:
	  	2
		
	 Credit Investigation/Review:
	  	4
		
	 Terms of Sales:
	  	9
		
	 Collection Procedures:
	  	10
		
	 Accounts Receivable/Cash Application Process:
	  	15
		
	 Payable Rebate Process:
	  	16
		
	 Bad Debt Losses:
	  	18
		
	 Reporting:
	  	20

  

 S-II-2 

 

 
 Executive Summary: 
 The Credit Group has as its dual role the protection of the Company’s investment in accounts receivable, and the promotion of profitable sales.
 The Sales Service Group is responsible for initial customer set up, order entry, invoicing including the issuance of various credit and
debit notes 
 A close working relationship is maintained between the Credit Group, and the other groups with a direct
impact on results and deliverables.
 The Credit Group works closely with Sales personnel in the collection of overdue
accounts, recognizing special circumstances that might require the intervention of Sales.
 This Credit Group,
hereinafter CG, manual of credit procedures has been developed to set the practices of Abitibi-Consolidated Inc Worldwide and for all product groups, Newsprint, Commercial Paper Products, Lumber and International (including Latin America, ROW,
Europe) and Recycling.
 The procedures outlined herein will be a guideline for Abitibi-Consolidated Worldwide Credit
Group, Sales Group and all its supports to further clarify the working relationship between their services and those of CG.
 This is an
evolving manual and will be updated and improved to support new Abitibi-Consolidated Inc programs. 
 Madeleine Féquière

 Director Credit, Credit & Collections 
 Treasury Services 
 Credit Risk and Accounts Receivable Management 
  

	 	•	 	 Mission Statement: 

  

 S-II-3 

 

 
  

 Worldwide Credit Group shall function in the Treasurer Group, and its activities
shall be coordinated with overall corporate policy and the activities of worldwide sales. 
 To assist in the increase of WW revenue and
market share, it shall be the responsibility of WWCG to: 
  

	 	1.	 Assess risk of current and prospective customers 

  

	 	2.	 Set credit limits and maintain their integrity 

  

	 	3.	 Provide and maintain positive and constructive attitude towards our customers and strategic partners 

  

	 	4.	 Maximize revenue and protect ACI assets 

  

	 	5.	 Manage the costs associated with bad debt and slow payments 

  

	 	6.	 Maintain the financial integrity and control ACI assets 

  

	 	7.	 Manage risk of our new business opportunities. 

 Organization Overview: 
 The Credit and Collections organization is currently
centralized in Montreal (see organization chart attached). 
  

 S-II-4 

 

 
  

	•	 	 Credit Investigation/Review: 

 New Customer Policies: 
  

	 	•	 	 Credit Investigation 

 The following documents and information should be obtained by Sales or its supports during contract negotiations and submitted to their designated Credit Group Representatives. 
  

	 	1.	 Completed credit application signed by an officer or officers of the company. 

  

	 	2.	 Forecast of the annual requirements to be generated by the customer. 

  

	 	3.	 Bank references, a written formal authorization from customers agreeing to the release of such information, may be requested. Customer is
obligated to provide the authorization. 

  

	 	4.	 Obtain W-9 or equivalent form prior to credit limit set-up in address book 

  

	 	5.	 Trade references, names of customer vendors, will be requested from customer. (at least, 1 reference in the Paper Industry).

  

	 	6.	 Financial statements, preferably audited (Analysis to be conducted by Credit Group may include, but not be limited to balance sheet, income
statement, and cash flow and change in working capital statements. 

  

	 	7.	 In addition to the info provided by sales, Credit Group will order credit reports from the various agencies such as Dun and Bradstreet to obtain
additional credit information, if required. 

  

	 	•	 	 Exchange of Credit Information 

 The Credit group will release credit information related to customer payment experience only to suppliers with a membership at one of the following NACM & FCIB organizations: National Fine Paper
Manufacturers (VAP), Newsprint & Allied Products, National Forest Products, & Forest Products Export . The Credit Group will also release information to all of our customers upon receiving a written request. Credit information will
be given on customers with special arrangements with ACI only upon written customer’s authorization to avoid any non-disclosure issues. Credit information on customers will not be given by phone under any circumstances in order to mitigate
potential problems. Minimum 3 days to process a request. 
  

 S-II-5 

 

 
  

	 	•	 	 Credit Authorization Turn Around Time 

 The turn around time for making a credit recommendation on new accounts is five (5) business days when information is readily available. 
 For out of country customers, it typically takes two (2) weeks after receipt of the completed credit application from
the customer. This time frame could be longer if the credit references do not respond or the application is incomplete. 
 Note: If required, upon approval, a letter will be forwarded to customer to confirm credit limit and terms of payment to the exception of Lumber. Sales and Customer Service will be advised
through e-mail. A signed centralized contract must be made available to Credit when needed. 
  

	 	•	 	 Credit Limit Categories 

 After investigations, customers will be placed in one of three risk categories for the credit department use only. Based on the decision criteria, Credit will make a determination about the
customer’s credit worthiness. A customer deemed credit worthy is approved for standard terms; a customer who is not deemed creditworthy will only be approved with security.
  

	 	•	 	 Risk categories: 

  

	 	1.	 Low Risk or A Rating in system – credit hold exempted customers, select credit worthy customers 

  

	 	2.	 Medium Risk or C Rating in system – No credit hold exemption, no security required 

  

	 	3.	 High Risk or E Rating in system—Surety required, security deposit, letter of credit, pre-payment, etc. (ongoing monitoring), $1.00 credit limit
assigned. 

 If there are major issues or disagreements, Sales and Credit will discuss other
alternatives that would be in ACI’s best interest. 
 In addition, credit limit should be assigned to
customers during peak buying period during the month as opposed to assigning credit limit based on month end balance after payment is received. 
 Domestic & Export – including Bridgewater – Internal Approval guidelines on New & Existing Accounts

  

 S-II-6 

 

 
  

 
Delegation of Authority is applicable regardless of risk categories and regardless of Export Development Corporation’s approval) 
  

	 	•	 	 $10,000.000 + President and CEO 

  

	 	•	 	 Up to $10,000.000 or less – Sr. V-P, Corp. Dev. & CFO 

  

	 	•	 	 Up to $5.000.000 or less – V-P & Treasurer 

  

	 	•	 	 Up to $3.000.000 or less – Director Credit /Credit & Collections 

 Domestic / Export – EDC required guidelines on New Accounts & existing Accounts, regardless of risk categories.

 Discretionary Credit Limit (DCL) of $1,000,000 or $500,000 may apply to all buyers (except those excluded in
writing by EDC) in all markets. EXCEPT Venezuela where the coverage is conditional upon obtaining confirmation that the buyer has been granted authorization from Venezuela’s foreign exchange administration commission (CADIVI) to acquire foreign
currency for the subject shipments and accordingly, the corresponding registration number (AAD number) for that shipment. A further condition is that it will apply only to existing buyers who have been able to obtain funds through the CADIVI
process during the 12 months prior to September 1, 2004. Any new buyers, or existing buyers with no tract record of having accessed funds through CADIVI, would need to be approved by EDC. 
  

	 	•	 	 Method 1 - Abitibi to justify $500,000 DCL coverage (without having to refer to EDC) based on: 

  

	 	•	 	 Abitibi’s own experience with buyer during the past 12 months. 

  

	 	•	 	 Method 2 - Abitibi to justify $500,000 DCL coverage (without having to refer to EDC) based on: 

  

	 	•	 	 Written Credit Information – Favorable, provided by a recognized credit information agency or a bank, which supports the extension of credit
for the amount of the sale. The information must not be dated more than 12 months. 

  

	 	•	 	 Method 3 - Abitibi to justify $1,000.000 DCL coverage (without having to refer to EDC) based on: 

  

	 	•	 	 Financial Statements and written credit information – Favorable financial statements in combination with favorable written credit information
of the buyer, which support the

  

 S-II-7 

 

 
  

	 	 
extension of credit for the amount of the sale. The fiscal year end of the statements cannot be more than eighteen months. EDC understands and agrees that in most cases, it will be difficult
to obtain financial statements, in such cases, Abitibi is required to obtain a detailed bank report from customer to satisfy EDC requirements. 

  

	 	•	 	 Credit Limit in Abiserve is now a combined limit to serve both ACI and Bow receivables because of system limitations.

  

	 	•	 	 Credit Evaluation of Existing Customers and Review 

  

	 	•	 	 Evaluation of Existing customers: 

 The evaluation of existing customers is initiated by the submission of a request by sales for incremental shipments. The major difference in the evaluation of an existing customer and a new customer
is that there is an established relationship and therefore Credit can make a more informed decision. Utilizing the customer’s history with ACI, Credit can review the customer’s usage/billing and payment habits for prior ACI
services. In addition to affording Credit access to additional information in the decision making process, there is also an opportunity to leverage the request for additional services to collect on past due amounts. The following is a
brief synopsis of the evaluation process for existing customers: 
  

	 	•	 	 Sales submits request for incremental shipments. 

  

	 	•	 	 Credit performs the credit review, including researching the customers A/R balance and past payment trends. 

  

	 	•	 	 Should the A/R balance be current, past payment trends acceptable, and all other components of the credit review acceptable, the customer’s
credit limit will be increased and the request approved. 

  

	 	•	 	 In the event that there are past dues and all other components are satisfactory, the request will be held up until the past dues are settled before
releasing pending orders. 

  

	 	•	 	 In the event that there is a history of late payments and all other credit review components are satisfactory, Credit will consult Sales for
feedback on customer to assist in the credit decision. 

  

	 	•	 	 In the event the internal information is satisfactory and the other components are not, a decision to require surety or not will be made.

  

 S-II-8 

 

 
  

	 	•	 	 Periodic or Annual Reviews: 

 The objective of the periodic or annual credit evaluation is to assess an existing customer’s ability to meet the terms and conditions of existing service that is to be renewed or amended including
changes to commitment levels, estimated run rates, and changes in products and services consumed. 
 Customers
with credit limit < $500k are reviewed on a 12 month basis (ACI own experience or written credit information) 
 Customers with credit limit >$500k and up to $1.0M are reviewed on a 12 month basis (Financial statements dated less than 18 months & written experience dated 12 months or less) 
 Customers with credit limit >$1.0M whereas EDC had issued a cover letter for continuing coverage are reviewed by EDC
according to their own review date guidelines and coverage will remain in place until otherwise advise. 
 Historic evidence proves that a customer’s credit worthiness constantly changes due to dynamic elements present in business cycle. Evaluating a customer’s ability to pay ACI, therefore, cannot be based on a single transaction
but must be regularly and consistently reevaluated. The following is a listing of occurrences that will trigger a review: 
  

	 	•	 	 Credit can initiate a review of a customer based on information obtained from Dun & Bradstreet’s Portfolio Manager, based on public
information obtained from newspapers, magazines, etc. 

  

	 	•	 	 Credit can initiate a review of a customer anytime if judged necessary. 

  

	 	•	 	 Sales Team can initiate a review of a customer by submitting a request to Credit. 

  

	 	•	 	 Credit Coordinators are requested to show in Abiserve Last Credit Review date as well as Next Credit Review date. An exception report will be
ordered to monitor customers up for credit review and ensure timeliness of the process on a daily basis. 

  

 S-II-9 

 

 
  

	 	•	 	 Contractual Agreements (Verbal or Written) 

 Contractual agreements are those reviewed by Legal and/or negotiated by Sales with new (after credit investigations) and existing customers. Credit should be notified of any
amendments to the contractual agreement related to payment terms and conditions.
 Credit Coordinator may obtain
copies of such agreements upon request from Sales Accounting. 
  

	 	•	 	 Creation of Customer Identification Number (ID#) 

 System administration from Sales Service Department is responsible for proper customer set up in the address book. Credit Coordinator is responsible for proper set up of the
following fields: legal name, credit limit, credit rating, terms of payment, Federal Tax ID # and remit to bank coordinates for all customers, and country code, identification of bank securitization CT or OT. 
  

	 	•	 	 Customer Credit Files 

 Credit will create and maintain complete and current credit and collection files on all customers. These credit files may include the following information when available: 
  

	 	1.	 Credit application 

  

	 	2.	 Signed customer contract, if required 

  

	 	3.	 Bank and trade references 

  

	 	4.	 Financial statements, if required 

  

	 	5.	 Credit agency reports 

  

	 	6.	 Copies of security agreements, if required 

  

	 	7.	 Any additional relevant information 

  

	•	 	 Terms of Sales: 

  

	 	•	 	 Standard or Regular Terms: 

  

	 	•	 	 Newsprint – Net 30 days and some approved extended 60+ day term. 

  

	 	•	 	 Commercial Paper Products – Industry term may vary from 45 days to 60 + days. 

  

	 	•	 	 Lumber – .9% 10 days. 

  

	 	•	 	 International – country specific or market specific in agreement with EDC 

  

 S-II-10 

 

 
  

	 	•	 	 Special/Extended Terms: 

 Terms may vary by country, special products requirements and international regulations 
 Domestic Accounts—Special or extended terms have to be approved by a U.S Vice-President 
 International Accounts—Special or extended terms have to be approved by a Vice-President. 
  

	•	 	 Collection Procedures: 

 The following summary identifies the collection activity that can be applied to all levels of business segment accounts. 
 Credit Group representatives work to convert accounts receivable into cash. Group optimizes productivity by managing day-to-day duties including customer contact and interaction with various ACI groups:
Accounts Receivable, Finance, Sales, Customer Accounting, Sales Service, Agents and Legal & Regulatory Affairs. 
 Additionally, Credit Coordinators are knowledgeable of various products, Accounts Receivable Systems etc. ACI customers are expected to pay their invoices as per obligated terms. Credit Group representatives are responsible for identifying
the cause of any delinquency. Delinquent receivable issues result from customer non-payment as well as internal Company problems such as billing, sales “rate” misquotes. Credit Group representatives are most effective working directly
with customers to resolve issues impacting the customer’s ability to remit payment. Our collection approach is to do everything possible to assist the Sales Team and the customer in correcting problems that impede their ability to pay.

  

	 	•	 	 Aging  

  

	 	•	 	 1 day beyond terms of payment, collection process begins—if required 

  

	 	•	 	 15 days beyond – a minimum of 3 calls – if required 

  

	 	•	 	 20 days beyond—1 written notice to customer—if required, Director Credit and Sales must be notified. 

  

	 	•	 	 60 days beyond terms, negotiate payment plans or surety—if required 

  

	 	•	 	 70 days beyond terms – No payment agreement, No surety —Issuance of NOI (notice of intent to terminate service or release to legal or
collection agencies) if required. 

  

 S-II-11 

 

 
  

 Note: This timeline is to be used as a guideline. Timeline may be longer
when there is manual posting of invoices or if invoices are delivered late or other related billing issues. Collections notes must be recorded in Abiserve.
  

	 	•	 	 Hold Orders Procedures 

  

	 	•	 	 Customer Service Representative enters an order 

  

	 	•	 	 Abiserve is ONLY credit limit driven . If customer is over the credit limit, the system will automatically hold all orders.

  

	 	•	 	 The Hold order is then referred to the Credit Agent for release. Before the order is released, the Credit Agent must do the following:

  

	 	•	 	 If the Customer is over the credit limit, initiate a credit review. It takes us 48 hours to investigate and increase the limit. If for financial
reasons, we feel that the credit limit should not be increased Sales & SSR are advised of the situation asap. Credit and Sales will arrive at a decision to release the order or not 

  

	 	•	 	 If the customer has past due invoices to be cured and has already mailed its payment, the order is released asap and a credit review is initiated
immediately afterwards to provide customer with more capacity if necessary.

  

	 	•	 	 If the Customer is unable to pay and we are negotiating payments, Sales and SSR are advised of the situation asap. Credit and Sales arrived at
a decision to release the order or not. 

  

	 	•	 	 Only Credit Coordinator is to advise the customer that the order is on hold with the agreement of Sales and Sales Agents.

  

	 	•	 	 The Director Credit is required to approve all amounts in excess of the credit limit. 

  

	 	•	 	 SX order release 

 Stock paper delivered from a warehouse to a customer is released with an “SX” order. A held SX order has to be released by the Credit coordinators in order to reach the billing process.

 Since SX orders are not listed on “WDP “ Warehouse Daily Planning report sent electronically by
Abiserve to the warehouses, SSRs have to manually forward all SX order documentation. However, no credit check is performed before the documentation is sent. 
  

 S-II-12 

 

 
  

 As a result, SX orders are delivered to customers before the Credit
department releases the order in the system. To be in compliance with the credit policy, as a rule SSRs are instructed not to release any SX orders until they have been released off credit hold by Credit Coordinators. 
 Exception “Blanket Release” 
 A short list of Top customers have been designated as “blanket release” meaning they are allowed to pick up their own paper from the warehouse. 
 To be designated as “blanket release”, a customer has to be flagged in the system as “credit exempt”
meaning credit coordinators intervention is needed only, once maximum credit limit allowed has been reached. 
 Blanket releases are purely a manual system, totally non transparent to credit coordinators. 
 In order
to better control this process, the following controls have been put in place: 
  

	 	1.	 SSRs Managers will provide a monthly list of designated customers to the Director Credit for approval. 

  

	 	2.	 Director Credit will only approve customers that are credit exempted (meaning orders go through without credit intervention until credit limit is
surpassed) 

  

	 	3.	 Credit Coordinators will monitor the exposure of all customers on the list periodically. 

  

	 	4.	 Sales Accounting will monitor all releases from warehouse and ensure proper billing. 

 Coverage for National Holidays 
  

	 	•	 	 Day before a national holiday, the credit department is required to do the following: 

  

	 	•	 	 Take a picture of all orders on hold 

  

	 	•	 	 Send a HOT list of critical accounts to Sales Service Managers (SSM) not to be released from hold 

  

	 	•	 	 SSM’s to sign a release form allowing them to perform such function. 

  

	 	•	 	 Send the release password to the SSM’s granting them access to release the following types of orders ONLY: 

  

 S-II-13 

 

 
  

	 	A)	 Top Accounts (credit hold exempted) where SSR’s had made changes to an order and the amount of the order has changed. B)
Emergency shipments or last minute orders for our Top Accounts (credit hold exempted) Anything else should remain on hold until Credit Department is back to work.  

  

	 	•	 	 Following day, SSM’s will provide the respective Credit Agents, a listing of all orders that have been released off credit hold.

  

	 	•	 	 Following day, Credit Department will change the password for order release. 

  

	 	•	 	 Payment Plans and Note Receivable Arrangements 

  

	 	•	 	 Payment Plans: 

 Customers who are past due or beyond normal terms may be considered for a payment plan to enable them to continue the business relationship by reducing and eliminating the past due debt. The payment
plans will be limited to short term (90 days) solutions in order to assist customers to return to the original terms of their contract and the due dates of all invoices will be adjusted to reflect the new due dates. 
 Domestic Accounts – Payment Plans have to be approved by a U.S Vice-President 
 International Accounts – Payment Plans have to be approved by a Vice-President. 
  

	 	•	 	 Note Receivable Arrangements: 

 Note receivable should be drafted and reviewed by Legal. In order to approve a note, the account exposure should be $1.0M or more. Terms are not to exceed 1 year and the due dates of all
invoices will be adjusted to reflect the new due dates . The rate is to be discussed with the V-P and Treasurer. Before acceptance, all notes arrangements should be approved by EDC.
 Domestic Accounts – Notes Receivable have to be approved by a U.S Vice-President 
 International Accounts – Note receivable have to be approved by a Vice-President. 
  

 S-II-14 

 

 
  

	 	•	 	 Standard Escalation Policy:  

  

	 	•	 	 From time to time the Credit Coordinators may need to escalate an account to the Director Credit in order to gain resolution. In compliance
with the above mentioned collections procedures, the Credit Coordinators will escalate the files accordingly to Director Credit by providing detailed information and documentation for final disposition. 

  

	 	•	 	 Statement of Accounts:  

  

	 	•	 	 Customers are to receive a statement showing the status of their accounts with ACI, if not otherwise stated. It is the Sales Accounting
Group’s priority at month end to ensure that the statements are sorted and mailed to customers by the 5th business day after the completion of the billing cycle. 

  

	 	•	 	 Customer Visits 

  

	 	•	 	 The Director Credit will conduct visits in concert with Sales representatives and the Credit Coordinators when appropriate to achieve the following
objectives: 

  

	 	•	 	 To develop a relationship with the customer 

  

	 	•	 	 To enhance relationship with Sales 

  

	 	•	 	 To observe facilities (plant, location, equipment, inventory) 

  

	 	•	 	 Discuss specific requests (terms, extension of credit limit, etc) 

  

	 	•	 	 Discuss and review confidential financial data 

  

	 	•	 	 Resolve disputed items 

  

	 	•	 	 Resolve collections issues 

  

	 	•	 	 Paper Industry Group Meeting: 

  

	 	•	 	 Director Credit, Credit Coordinators will participate in specific paper industry group meetings quarterly, to open up communications line for the
exchange of credit information with direct impact on reduction of outstanding delinquent receivables and write-offs. Members obtain performance information but also have the chance to network and build relationships with credit professionals in
the same industry. Currently ACI’s registered in the following groups: 

  

 S-II-15 

 

 
  

 Lumber – NACM National Forest Products Group

 International – FCIB Forest Product Export Group (Domestic and Europe) 
 Newsprint – NACM National Newsprint & Allied Products Group 
 Commercial Paper Products – Fine Paper Group 
  

	 	•	 	 NOI (Notice of Intent to stop shipment):  

  

	 	•	 	 If all efforts for resolution have failed and accounts remain past due or in default beyond the determined cure period, the Credit Coordinator will
escalate the file to Director Credit for resolution. 

 Before sending NOI, Credit will notify
appropriate individuals. Director Credit is directly responsible to seek further approval if necessary. 
  

	 	•	 	 Stop Shipment Procedure: 

 Once all collection efforts have been exhausted and failed. The last step in the collections process is to ensure that service is stopped and appropriate actions must be taken to recover the debt.
Sales must be notified of such actions. 
  

	 	•	 	 Accounts Receivable/Cash Application Process: 

 The Accounts Receivable/Cash Application group is directly responsible for the timely and accurate distribution of payments
received by ACI. They are also responsible for directly communicating the cash application status (Unapplied, on account, and Unidentified) to Credit and Collections, and Customer Accounting Representative. 
  

	 	•	 	 Customer Deductions/Discrepancies 

  

	 	•	 	 Cash Applications will submit all discrepancies on a daily basis to Credit 

  

	 	•	 	 Credit will contact their respective customers to source out the reasons for the discrepancies on a daily basis and sign their names on the check
stubs. 

  

	 	•	 	 Cash Applications will submit all check stubs or other documents to Sales Accounting with reasons for discrepancies on a daily basis.

  

 S-II-16 

 

 
  

  

	 	•	 	 Sales Accounting will conduct analysis within same month and forward their analysis to Salesrep for appropriate actions with a deadline and copy to
Credit. Copy also to Sales V.P. only if required. 

  

	 	•	 	 Sales will decide of the outcome of the analysis within the allowed deadline and reply to: A) Sales Accounting if decision is in favor of the
customer in order to issue credit note. B) Credit if decision is in favor of Abitibi in order to collect the amount due. 

  

	 	•	 	 Monthly, Sales Accounting will issue a report to Sales and Credit listing all accounts analyzed within the month for follow-up.

  

	 	•	 	 If no resolution within 60 days, Sales Accounting should escalate the case to the respective V.P. or Senior V.P. Sales only if Required.

  

	 	•	 	 Credit Coordinators are responsible for all open items on their respective Aging and are responsible to follow-up with Sales Accounting for quick
resolution not to penalize the securitization program. 

  

	 	•	 	 Unapplied Cash  

  

	 	•	 	 Cash applications Specialists will advise Credit and Sales Accounting of unapplied cash promptly. 

  

	 	•	 	 Cash Applications will cure the cash as per Sales accounting’s instructions. 

  

	 	•	 	 Once special arrangements are deducted, a monthly listing of unapplied cash will be forwarded to Sales Accounting.

  

	 	•	 	 Returned Item Procedures  

  

	 	•	 	 Cash application will forward all returned drafts to Credit Group on a daily basis with the following information: 

  

	 	•	 	 Customer 

  

	 	•	 	 Check number 

  

	 	•	 	 Amount of remittance 

  

	 	•	 	 Date item was returned 

  

	 	•	 	 Reasons for return if available: (customer dispute, insufficient funds, bank error, etc) 

  

 S-II-17 

 

 
  

 The Credit and Collections group will contact customer to notify them of the returned
check. Certified funds may be required in order to cure the default. 
  

	 	•	 	 Payable Rebate Process: 

  

	 	•	 	 As a rule, no rebate payment should be forwarded to a customer with a past due amount with ACI. Sales Accounting will first advise Sales of the
situation. A listing of all rebate payments for review before release should be forwarded to Credit. 

 Note: Please reference terms of contract prior to initiating a hold on a rebate payment to our customers. 
  

 S-II-18 

 

 
  

  

	 	•	 	 Bad Debt Losses: 

  

	 	•	 	 Actions following Cancellation  

  

	 	•	 	 Provide customer final opportunity to settle debt. 

  

	 	•	 	 Send customer notification that debt will be pursued through use of outside sources (included in NOI). 

  

	 	•	 	 Collection agency 

  

	 	•	 	 Internal legal department through suit or arbitration 

  

	 	•	 	 External legal firms through suit or arbitration 

  

	 	•	 	 Legal Write-offs 

  

	 	•	 	 Prepare legal package and forward to Legal department for pursuit of debt (internal or external). 

  

	 	•	 	 Criteria for Legal – Balances greater than $50,000. 

  

	 	•	 	 Agency Write-offs – Balances less than $50,000 

  

	 	•	 	 Accounts submitted manually to an Outside Collection agency. 

  

	 	•	 	 Collection Agencies 

  

	 	•	 	 From time to time when all collections efforts have been tried and failed, accounts will be released to OCA (outside collection agency). An OCA
must be bonded and a member of the National Law League. Credit Coordinators are responsible for selecting or recommending accounts to be placed with a collection agency and inform the Director Credit/Credit prior to releasing an account to a
collection agency 

 Before releasing an account to an OCA, the Director Credit/Credit will
notify Sales and EDC. 
  

	 	•	 	 Bankruptcy Proceedings 

 The Director Credit will handle all legal and regulatory Affairs and determine the best course of action for the recovery of outstanding debts. In cases of customer bankruptcy or pre-bankruptcy
formation of creditors committees, Credit will actively serve on such committees. 
  

 S-II-19 

 

 
  

  

	 	•	 	 Reserves/Bad debt allowances  

 Director Credit to identify and set aside specific reserve for bad debt items and notify General Accounting quarterly. General Accounting is responsible for establishing total reserve balances. The
Treasurer must approve any adjustments to the reserves. 
 ACI has adopted the customer specific method and the
process is as follow: 
  

	 	1.	 Quarterly the credit department will download directly from Abiserve the Aging Report that reconciles with G/L including all House Accounts;

  

	 	2.	 All accounts credit-insured over 90 days past due will be analyzed and assigned a certain percentage of risk if required;

  

	 	3.	 All accounts self-insured over 60 days past due will be analyzed and assigned a certain percentage of risk if required 

 

	 	4.	 All accounts co-insured with EDC will be analyzed and assigned a certain percentage of risk if required 

  

	 	5.	 All accounts assigned a certain percentage of risk will be well documented and back up provided to accounting. 

  

	 	•	 	 Write-off Procedure  

 Once customer’s account is canceled due to non-payment, write-off procedures should be initiated. 
  

	 	•	 	 Approval Levels: Bad Debts Write-off:  

 (Gross loss amount) 
  

	 	•	 	 $1.000 + President and CEO 

  

	 	•	 	 Up to $1.000 Sr. V-P, Corp. Dev. & CFO 

  

	 	•	 	 Up to $500 or less – V-P & Treasurer 

  

	 	•	 	 Documentation supporting Write-off  

  

	 	•	 	 Business case supporting write-off 

  

	 	•	 	 Copies of customer D&B or other credit agency report if available 

  

	 	•	 	 Current statement of account, customer aging 

  

	 	•	 	 EDC’s claim copy showing receipt 

  

	 	•	 	 Other supporting documentation, returned checks, bankruptcy notices, etc. 

  

 S-II-20 

 

 
  

  

	 	•	 	 Proposed journal entry to recognize actual bad debt write-off by Cash application coordinator  

  

	 	•	 	 Debit Bad Debt Reserve, Account, General Ledger 

  

	 	•	 	 Credit Trade A/R, Account, Subsidiary Ledger 

  

	 	•	 	 Frequency and owners of process 

  

	 	•	 	 Actual bad debt losses incurred should be recognized as they are identified throughout the quarter. 

  

	 	•	 	 Director Credit/Credit should initiate the processing of the write-off. 

  

	 	•	 	 General Accounting will prepare entries to be recorded in G/L and S/L. 

  

	 	•	 	 Reporting: 

 The Credit group will produce and distribute the following report, if required: 
  

	 	1.	 Monthly Aging by Sales Representatives 

  

	 	2.	 Monthly 30+ aging in absolute dollars and as a percentage of the total A/R balance 

  

	 	3.	 Monthly Top 25 in dollars owing in each product group 

  

	 	4.	 Monthly Days Sales Outstanding by product group 

  

	 	5.	 Monthly Collection Effectiveness Index 

  

	 	6.	 Monthly Over the credit limit report if required (see AFDA ) 

  

	 	7.	 Monthly Critical List Report (Notes, Payment Plans, Letters of Credit Report) if required 

  

	 	8.	 Quarterly AFDA (allowance for bad debt report) 

  

	 	9.	 Monthly 90+ days Report to EDC 

  

	 	10.	 Monthly 60 days over 10% to EDC 

  

	 	11.	 Monthly inactivation of accounts over 6 months —And change credit limit to $1.0) 

  

	 	12.	 New ` customer report 

  

	 	13.	 Customer due for Credit Review 

  

	 	14.	 Daily program to run CX customers with an order 

  

	 	15.	 All other reports required to manage our business 

  

	 	•	 	 Security Matrix Review: 

 Security access will be performed quarterly or immediately following a change/movement in treasury Department personnel. 
  

 S-II-21 

 SCHEDULE III 
 Addresses 
  

					
	 Seller:
	  	 Abitibi-Consolidated U.S. Funding Corp.

		  	 ACUSFC Room
 55 E. Camperdown Way
 Greenville, SC, 29601

		  	 Facsimile No.: 864-282-9504

		  	 E-mail: ACUSFC@abitibibowater.com

		
	 Agent:
	  	 Citibank, N.A.

		  	 Attention: David Jaffe

		  	 390 Greenwich Street, 1st Floor
 New York, NY 10010

		  	 Facsimile: 646-291-1029

		
		  	 With a copy to:

		  	 1615 Brett Road
 OPS II

		  	 Attention: Carolyn Figueroa

		  	 New Castle, DE 19720

		  	 Facsimile: 212-994-0849

		  	 Email: carolyn.figueroa@citi.com; glabfunitloansops@citi.com

		
	 Banks:
	  	 Citibank, N.A.

		  	 Attention: David Jaffe

		  	 390 Greenwich Street, 1st Floor
 New York, NY 10010

		  	 Facsimile: 646-291-1029

		
		  	 With a copy to:

		  	 1615 Brett Road
 OPS II

		  	 Attention: Carolyn Figueroa

		  	 New Castle, DE 19720

		  	 Facsimile: 212-994-0849

		  	 Email: carolyn.figueroa@citi.com; glabfunitloansops@citi.com

		
		  	 Barclays Capital Inc.

		  	 745 Seventh Avenue
 New York, NY 10019

		  	 Attention: Charles Siew

		  	 Facsimile No.: 212-412-6846

  

 S-III-1 

					
	 ACI:
	  	 ABITIBI-CONSOLIDATED INC

		  	 1155 METCALFE STREET
 SUITE 800
 MONTREAL QC H3B 542
 CANADA

		  	 ATTENTION: TREASURY DEPARTMENT & WILLIAM G. HARVEY, VP AND CHIEF FINANCIAL OFFICER

		  	 Facsimile No.: 514-394-2267

		
	 With a copy to (in the event of claims
 or disputes only):
	  	 ABITIBI-CONSOLIDATED INC
 1155 METCALFE STREET
 SUITE 800
 MONTREAL QC H3B 542
 CANADA

		  	 ATTENTION: LEGAL DEPARTMENT & STEPHANIE LECLAIRE,
 CHIEF LEGAL OFFICER

		  	 Facsimile No.: 514-394-3644

		
	 Servicer:
	  	 Abitibi Consolidated Sales Corporation

		  	 55 E. Camperdown Way
 Greenville, SC 29601

		  	 Attention: Treasury Department & William G. Harvey, VP and Chief Financial Officer

		  	 Facsimile No.: 514-394-2267

		
		  	 With Copy To:

		  	 Attention: Legal Department & Stepanie LeClair, Chief Legal Officer

		  	 Facsimile No.: 514-394-3644

		
	 Canadian Originator:
	  	 ABITIBI-CONSOLIDATED INC

		  	 1155 METCALFE STREET
 SUITE 800
 MONTREAL QC H3B 542
 CANADA

		  	 ATTENTION: TREASURY DEPARTMENT & WILLIAM G. HARVEY, VP AND CHIEF FINANCIAL OFFICER

		  	 Facsimile No.: 514-394-2267

		
		  	 With Copy To:

		  	 ATTENTION: LEGAL DEPARTMENT & STEPHANIE LECLAIRE, CHIEF LEGAL OFFICER

		  	 Facsimile No.: 514-394-3644

  

 S-III-2 

					
	 U.S. Originator:
	  	 Abitibi Consolidated Sales Corporation

		  	 55 E. Camperdown Way
 Greenville, SC 29601

		  	 Attention: Treasury Department & William G. Harvey, VP and Chief Financial Officer

		  	 Facsimile No.: 514-394-2267

		
		  	 With Copy To:

		  	 Attention: Legal Department & Stepanie LeClair, Chief Legal Officer

		  	 Facsimile No.: 514-394-3644

  

 S-III-3 

 SCHEDULE IV 
 UCC and PPSA Information 
  

					
	 Seller:
	  	
		
	 Name:
	  	 Abitibi-Consolidated U.S. Funding Corp.

		
	 Current Address:
	  	 ACUSFC Room

		  	 55 E. Camperdown Way

		  	 Greenville, SC, 29601

		  	 Facsimile No.: 864 282 9504

		
	 Prior Address:
	  	 4 Gannett Drive

		  	 White Plains, NY 10604-3400

		
	 Jurisdiction of Organization:
	  	 Delaware

		
	 UCC Filing Office:
	  	 Delaware Secretary of State

		
	 Prior Name:
	  	 None

		
	 U.S. Originator:
	  	
		
	 Name:
	  	 Abitibi Consolidated Sales Corporation

		
	 Current Address:
	  	 55 E. Camperdown Way

	 (and location of chief
	  	 Greenville, SC 29601

	 executive office and
	  	 Facsimile No.: 864 282 9504

	 Receivables records)
	  	
		
	 Prior Address:
	  	 4 Gannett Drive

		  	 White Plains, NY 10604-3400

		
	 Jurisdiction of Organization:
	  	 Delaware

		
	 UCC Filing Office:
	  	 Delaware Secretary of State

		
	 Prior Name:
	  	 Abitibi-Price Sales Corporation

		
	 Canadian Originator:
	  	
		
	 Name:
	  	 Abitibi-Consolidated Inc.

		
	 Chief Executive and
 Registered Office
	  	 1155 Metcalfe Street, Suite 800

  

 S-IV-1 

			
	 and locations of
 Receivables records:
	  	 Montreal, Quebec, Canada H3B 5H2

		
	 Jurisdiction of Organization:
	  	 Canada

		
	 PPSA Filing Offices:
	  	 British Columbia

		  	 Ontario

		  	 Quebec

		  	 Alberta

		
	 Prior Name:
	  	 None

  

 S-IV-2 

 SCHEDULE V 
 Deposit Accounts 
  

																	
	Originator	 	Complete
Name of
Lock-box
Owner	 	Name and
Address of
Deposit Bank*	 	Lock-Box Nos.	 	Location	 	Complete
Name of
Deposit
Account
Owner	 	Deposit
Account Bank	 	Deposit
Account
Numbers	 	Currency of
Deposit
Account
									
	 Abitibi-
Consolidated
Inc.
	 	 Abitibi-
Consolidated
Inc.
	 	 Royal
Bank of
Canada 1
Place Ville
Marie
Montreal
	 	 T01972C
  
 V05410C
and
M05333C
  
 V05410U
and
M05333U
	 	 Toronto
  
 Vancouver
Montreal
  
 Vancouver
Montreal
	 	 Abitibi-
Consolidated
Inc.
	 	 Royal
Bank of
Canada
	 	 —    -202-0
  
 —    -277-8
  
 —    -476-7
	 	 CAD
  
 CAD
  
 USD

									
	 Abitibi
Consolidated
Sales
Corporation
	 	 Abitibi-
Consolidated
U.S.
Funding
Corp.
	 	 LaSalle
Bank
National
Association
135 South
LaSalle
Street
Chicago IL
60603
	 	 1228
  
 1070
	 	 Chicago
  
 Chicago
	 	 Abitibi-
Consolidated
U.S.
Funding
Corp.
	 	 LaSalle
Bank
National
Association
	 	 —    1568
  
 —    1576
	 	 USD
  
 USD

									
	 Abitibi-
Consolidated
Inc.
	 	 N/A
	 	 Citibank,
N.A. 390
Greenwich
Street,
8th Floor
New York
NY 10013
	 	 N/A
	 	 N/A
	 	 Abitibi-
Consolidated
U.S.
Funding
Corp.
	 	 Citibank,
N.A.
	 	 —    7095
	 	 USD

 *And, if different, name and address of processor of lock-box. 
  

 S-V-1 

 SCHEDULE VI 
 Depositary Bank Consents 
 Consent of Royal Bank of Canada to the assignment from
CLB to Citibank of CLB’s rights and obligations under the Blocked Accounts Agreement dated October 27, 2005, as amended by the First Amendment to Blocked Accounts Agreement dated as of May 8, 2008 
 Consent of Bank of America, N.A. to the assignment from CLB to Citibank of CLB’s rights and obligations under the Agreement regarding
Pledged Deposit Accounts dated October 27, 2005 
  

 S-VI-1 

 ANNEX A-1: FORM OF MONTHLY REPORT 
  

																
	Abitibi Receivables Availability Calculation	  	 	 	 	Company 5100	 	 	Company 5000	 	 	 	 	 	 	 
	AS of:	  	Total	 	 	ACSC	 	 	ACI	 	 	LSS ACI	 	 	International	 
						
	 Gross Receivables Balance
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Receivables (+90 days US Canada/+60 Days Past Due Intl)
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Credits in Past Due
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Cross-Aged Receivables (>50% US Canada/>10% Intl Defaulted)
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Receivables Subject to Potential Set-Off (contra accounts)
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Non-Approved Countries
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Early Pay Discounts
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Bankrupt Obligors
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Allowed DIP Obligors < 45 Days Past Due
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Government Receivables
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Affiliate / Intercompany Receivables
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Allowances
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Extended Pymt Term Receivables > EDC Limit
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Intl Excess A/R < 60 days > Approved Insurance Credit Limit or Non Approved Country with $0 Credit
Limit
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Chargebacks (<90 days US an Canada and < 60 days Intl)
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Other Ineligible Receivables
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Unapplied Cash
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Unapplied Credits
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Other Taxes
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Provincial Sales Taxes
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
	 Total Ineligible A/R Before Obligor and Country Concentrations
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
		  	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 
	 Total Eligible A/R Before Obligor and Country Concentrations
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Dilution Reserve
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
		  	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 
	 Excess Obligor Concentrations
	  	0	  	 			 			 			 	0	  
	 Excess Country Concentrations
	  	0	  	 			 			 			 	0	  
		  	 	 	 			 			 			 		
	 Total Obligor and Country Concentrations
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
		  	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 
	 Eligible A/R Before A/R Advance Rate
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Advance Rate
	  	0.00	  	 	0.00	  	 	0.00	  	 	0.00	  	 	0.00	  
						
	 Availability Before 10% A/R Insurance Deductible Reserve
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 10% of Eligible A/R Insurance Deductible Reserve
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Total A/R Availability before FX and Availability Block Reserve
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Foreign Currency Reserve (FX)
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
						
	 Total A/R Availability before Availability Block Reserve
	  	0	  	 	0	  	 	0	  	 	0	  	 	0	  
		  	 	 	 			 			 			 		
						
	 Availability Block Reserve (> of 8% of Gross A/R or $30MM)
	  	0	  	 			 			 			 		
		  	 	 	 			 			 			 		
						
	 Total A/R Availability after Availability Block Reserve
	  	0	  	 	0.00	% 	 	0.00	% 	 	0.00	% 	 	0.00	% 
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
						
	 Effective Advance Rate before Availability Block Reserve
	  	0.00	% 	 			 			 			 		
		  	 	 	 			 			 			 		
		  	0.00	% 	 			 			 			 		
		  	 	 	 			 			 			 		

 ANNEX A-2: FORM OF WEEKLY REPORT 
 

 
 Weekly BBC A/R as of: 
  

																							
	 	  	%	  	Total	 	 	ACSC	 	 	ACI	 	 	LSS	 	 	International	 
	 Ineligible Receivables (as a % of Gross A/R)
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
	 Other Deductions (as a % of Gross A/R)
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
	 Dilution Reserve (as a % of Gross A/R)
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
	 Excess Country Concentrations (as a % of Gross A/R)
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
							
		  	—  	  	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  
							
	 Less: Ineligible Receivables
	  	—  	  	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  
	 Less: Other Deductions
	  	—  	  	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  
	 Less: Dilution Reserve
	  	—  	  	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  
	 Less: Excess Country Concentrations
	  	—  	  	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  
		  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
	 Eligible A/R Before A/R Advance Rate
	  	—  	  	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  
							
	 Advance Rate
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
		  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
	 Availability Before 10% A/R Insurance Deductible Reserve
	  	—  	  	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  
							
	 10% of Eligible A/R Insurance Deductible Reserve
	  	—  	  	 	0.00	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0.00	  
		  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
	 Total A/R Availability before FX and Availability Block Reserve
	  	—  	  	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  
							
	 Foreign Currency Reserve (FX)
	  	—  	  	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  	 	 	0.00	  
		  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
							
	 Total A/R Availability before Availability Block Reserve
	  	—  	  	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  
							
	 Availability Block Reserve (> of 8% of Gross A/R or $30MM)
	  	—  	  	$	0.00	  	 				 				 				 			
		  		  	 	 	 	 				 				 				 			
							
	 Total A/R Availability after Availability Block Reserve
	  	—  	  	$	0.00	  	 				 				 				 			
		  		  	 	 	 	 				 				 				 			
							
	 Effective Advance Rate before Availability Block Reserve
	  		  	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 
		  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Effective Advance Rate After Availability Block Reserve
	  		  	 	0.00	% 	 				 				 				 			
		  		  	 	 	 	 				 				 				 			
							
	 A/R Availability
	  	date	  	$	0.00	  	 				 				 				 			
		  	date	  	$	0.00	  	 				 				 				 			
		  	variance	  	$	0.00	  	 				 				 				 			

 ANNEX B 
 DEPOSIT ACCOUNT CONTROL AGREEMENT 
 January 31, 2008 
 Citibank, N.A. 
 388 Greenwich Street 
 New York, NY 10013 
  

	 	Re:	 Account No. 40647095 (the “Account”) 

 Abitibi-Consolidated U.S. Funding Corp. (the “Seller”) 
 Ladies and Gentlemen: 
 In connection with certain transactions
pursuant to which the Seller has acquired certain accounts receivable (collectively, the “Receivables”) from Abitibi Consolidated Inc. (“ACI” or the “Originator”) and assigned undivided percentage interests in the
Receivables to Citibank, N.A. London Branch, as agent (the “Agent”), the Originator hereby transfers exclusive ownership and control of the Account to the Seller, and the Seller hereby notifies you that as of the “Effective
Date” (as defined below) the Seller has granted a security interest to the Agent in the Account. Deposits in the Account consist of collections of the Receivables mailed to and deposited in the Account and collections of Receivables transferred
from other banks (or from other accounts at Citibank, N.A.) directly to the Account (“Bank Transfers”). Pursuant to this Agreement, the Seller and the Agent desire to perfect the Agent’s security interest in the Account by
providing the Agent with “control” (as such term is defined in Article 9 of the Uniform Commercial Code) of the Account. 
 In connection with the foregoing, the Originator, the Seller and the Agent hereby instruct you beginning on the Effective Date: (i) to collect the monies, checks, instruments and other items of
payment mailed to the Account and to accept the Bank Transfers, (ii) to deposit into the Account all such monies, checks, instruments and other items of payment; and (iii) to transfer all funds deposited and collected in the Account
pursuant to instructions given to you by the Agent from time to time. The Originator, the Seller, the Agent and you agree that from and after the Effective Date you will comply with all such instructions given to you by the Agent and directing
disposition of such funds in the Account without further consent by the Originator or the Seller. 
 For the
purposes hereof, the “Effective Date” shall be the business day on which you receive a notice (which may be sent by facsimile) from the Agent and the Seller (such notice, the “Effective Date Notice”) stating that the transactions
referred to in the first paragraph above have been consummated. You agree to promptly confirm to the Agent and the Seller by facsimile your receipt of the Effective Date Notice and the occurrence of the Effective Date. 
 In accordance with clause (iii) of the second preceding paragraph, the Agent hereby instructs you that from and after
the Effective Date unless and until the Agent notifies you to the

  

 B-1 

 
contrary pursuant to a notice of effectiveness substantially in the form of Attachment I hereto, you shall make such transfers from the Account at such times and in such manner as Abitibi
Consolidated Sales Corporation (“ACSC”), in its capacity as servicer for the Agent, or ACI, in its capacity as subservicer, shall from time to time instruct. You are hereby further instructed, in each case, from and after the Effective
Date, (i) that the Account will be entitled “Abitibi Receivables Purchase Agreement Deposit Account for the benefit of Citibank, N.A. London Branch as Agent” and (ii) to permit ACSC (in its capacity as servicer for the Agent),
the Seller and the Agent to obtain upon request any information relating to the Account, including, without limitation, any information regarding the balance of or activity in the Account. 
 You shall be fully protected in acting pursuant to the Effective Date Notice and shall not be under any obligation to make
any inquiry whatsoever as to the Agent’s right and authority to give such notice or to verify the authority or signature of any party identifying itself as representing, or signing on behalf of, the Agent in the Effective Date Notice.

 The Agent acts as agent for persons having a continuing interest in all of the monies, checks and other items
of payment and their proceeds and all monies and earnings, if any, thereon in the Account, and you shall be the Agent’s agent for the purpose of holding and collecting such property. From and after the Effective Date, the monies, checks,
instruments and other items of payment mailed to, and the funds deposited into, the Account will not be subject to deduction, set-off, banker’s lien, security interest or any other right in favor of any person other than the Agent, except that
(a) you may set off (i) all amounts due to you in respect of your customary fees and expenses for the routine maintenance and operation of the Account, (ii) the face amount of any checks or other items credited to the Account and
thereafter returned for any reason and (iii) any funds credited to the Account in error, and (b) you may have a right of setoff, security interest or other lien in the funds deposited in the Account so long as such right of setoff (for
amounts other than those described in the preceding clause (a)), security interest or other lien is in all respects junior and subordinate to that of the Agent and may not be exercised without the prior consent of the Agent. 
 This Agreement may not be terminated at any time by the Originator, the Seller or you, without the prior written consent of
the Agent; provided, that you or the Agent may terminate this Agreement upon sixty (60) days’ prior written notice to the other parties. Upon any such termination, you shall transfer all funds in the Account to such account as has been
designated by the Agent (the “Designated Account”) and keep the Account open for the limited purpose of accepting wire transfers during the 60-day period following such termination, any such funds received by you to be promptly transferred
to the Designated Account. The Seller agrees to pay you on demand your reasonable costs and expenses incurred in complying with the provisions of the preceding sentence, and in the event the Seller does not so pay you, the Agent shall pay such
costs and expenses within 30 days after its receipt of notice from you thereof, and the Seller shall promptly reimburse the Agent for any such payment. Following the 60-day period referred to in the second preceding sentence, you may close the
Account. Neither this Agreement nor any provision hereof may be changed, amended, modified or waived orally but only by an instrument in writing signed by the Agent, you, the Originator and the Seller. 
 You shall not assign or transfer your rights or obligations hereunder (other than to the Agent) without the prior written
consent of the Agent and the Seller except that you may assign such

  

 B-2 

 
rights or obligations to any of your affiliates, provided, you furnish the Originator, the Seller and the Agent with prompt written notice thereof. Subject to the preceding sentence, this
Agreement shall be binding upon each of the parties hereto and their respective successors and assigns, and shall inure to the benefit of, and be enforceable by, the Agent, each of the parties hereto and their respective successors and assigns.

 You will not be liable to the Originator, the Seller or the Agent for any expense, claim, loss, damage or
cost (“Damages”) arising out of or relating to your performance under this Agreement other than those Damages which result directly from your acts or omissions constituting gross negligence, subject to the limits in the next succeeding
sentence. Your liability is limited to direct money Damages actually incurred in an amount not exceeding the compensation for the services referred to herein during the month in which such acts or omissions occurred. 
 In no event will you be liable for any special, indirect, exemplary or consequential damages, including but not limited to
lost profits. 
 You will be excused from failing to act or delay in acting, and no such failure or delay shall
constitute a breach of this Agreement or otherwise give rise to any liability of yours, if (i) such failure or delay is caused by circumstances beyond your reasonable control, including but not limited to legal constraint, emergency conditions,
action or inaction of governmental, civil or military authority, fire, strike, lockout or other labor dispute, war, riot, theft, flood, earthquake or other natural disaster, breakdown of public or private or common carrier communications or
transmission facilities, equipment failure, or act, negligence or default of the Originator, the Seller or the Agent or (ii) such failure or delay resulted from your reasonable belief that the action would have violated any guideline, rule or
regulation of any governmental authority. 
 The Originator hereby agrees to indemnify you against, and hold you
harmless from, any and all liabilities, claims, costs, expenses and damages of any nature (including but not limited to allocated costs of staff counsel, other reasonable attorney’s fees and any fees and expenses incurred in enforcing this
Agreement) in any way arising out of or relating to disputes or legal actions concerning this Agreement, the Account, or any money, check, instrument or other form of payment deposited or credited thereto. This paragraph does not apply to any
cost or damage attributable to your gross negligence or intentional misconduct. The obligations of the Originator under this paragraph shall survive termination of this Agreement. You agree to notify the Seller, the Originator and the Agent in
writing as soon as reasonably practicable after receipt by you of written notice of the commencement of any suit, proceeding or other action by a third party if a claim for indemnification in respect thereof may be made by you against the Originator
under this paragraph; provided, however, that your failure to so notify the Seller and the Originator shall not in any way affect the obligations of the Originator or your rights under this paragraph. 
 Each party hereto hereby represents (solely as to itself) that the person signing this Agreement on its behalf is duly
authorized by it to so sign. 
 You hereby represent that you have not, prior to the date hereof, entered into
any agreement (unless such agreement has been terminated on or prior to the date hereof) pursuant to which

  

 B-3 

 
you agreed that you would comply with instructions of any person (other than the Agent) directing disposition of the funds in the Account without further consent by the Originator or the Seller.

 You agree to give the Agent and the Seller prompt notice if the Account becomes subject to any writ,
judgment, warrant of attachment, execution or similar process. 
 You (in your capacity as the bank maintaining
the Account, and not in any other capacity) agree that, prior to the date which is one year and one day after payment in full of all outstanding obligations of the Seller under the transactions referred to in the first paragraph of this Agreement,
you will not institute against, or join any other person in instituting against, the Seller any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other similar proceeding under the laws of the United States or any
state of the United States.
 Any notice, demand or other communication required or permitted to be given
hereunder shall be in writing and may be personally served, telecopied or sent by courier service or United States mail and shall be deemed to have been given when received. For the purposes hereof, the addresses of the parties hereto
shall be as set forth below each party’s name below, or, as to each party, at such other address as may be designated by such party in a written notice to each other party. 
 This Agreement shall, in accordance with Section 5-1401 of the General Obligations Law of the State of New York, be
governed by, and construed in accordance with, the law of the State of New York.
 This Agreement shall be
considered to be executed and delivered by ACI at White Plains, New York and once an authorized director or officer of ACI resident in the United States of America has executed the same. 
 This Agreement and all related documents have been written in the English language at the express request of the parties. Le présent contrat ainsi que tous les documents
s’y rattachant ont été rédigés en anglais à la demande expresse des parties. 
 [Remainder of page intentionally left blank] 
  

 B-4 

 Account Control Agreement 
 Please agree to the terms of, an acknowledge receipt of, this Agreements by signing in the space provided below. 

 

			
	 Very truly yours,

	
	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP.

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

	
	 4 Gannett Drive, ACUSFC Room
 White Plains, N.Y. 10604-3400
 Attention: Breen Blaine
 Facsimile No.: 914-640-8917

	
	 ABITIBI-CONSOLIDATED INC.

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

	
	 1155, METCALFE STREET
 SUITE 800
 MONTREAL QC H3B 542
 CANADA
 ATTENTION:
TREASURY DEPARTMENT
 Facsimile No.: 514-394-2267

  

 B-5 

 Account Control Agreement 
 Please agree to the terms of, an acknowledge receipt of, this Agreements by signing in the space provided below. 

 

			
	 Very truly yours,

	
	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP.

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

	
	 4 Gannett Drive, ACUSFC Room
 White Plains, N.Y. 10604-3400
 Attention: Breen Blaine
 Facsimile No.: 914-640-8917

	
	 ABITIBI-CONSOLIDATED INC.

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

	
	 1155, METCALFE STREET
 SUITE 800
 MONTREAL QC H3B 542
 CANADA
 ATTENTION:
TREASURY DEPARTMENT
 Facsimile No.: 514-394-2267

  

 B-6 

 Account Control Agreement 
  

			
	 ABITIBI-CONSOLIDATED SALES CORPORATION

		
	 By:
	 	  

	 Title:
	 	  

		
	 By:
	 	  

	 Title:
	 	  

	
	 4 Gannett Drive, ACUSFC Room
 White Plains, N.Y. 10604-3400
 Attention: Breen Blaine
 Facsimile No.: 914-640-8917

	
	 With Copy To:

	
	 Attention: Montréal Legal Department
 Facsimile No.: 514-394-3644

  

 B-7 

					
	 CITIBANK, N.A., LONDON BRANCH,

	 as Agent

			
		 	 By:
	 	  

		 	 Title:
	 	  

		
		 	 Citigroup Centre

		 	 33, Canada Square, 5th Floor
 Canary Wharf
 London E14 5LB
 England
 Attention: Nigel Kilvington
 Telecopy #: +44-207-986-4705

  

 B-8 

			
	 ACKNOWLEDGED AND AGREED:
 CITIBANK, N.A.

		
	 By:
	 	  

	 Title:
	 	  

	 Date:
	 	  

	
	 388 Greenwich Street
 New York, NY 10013

	 Attention:
	 	  

	 Telecopy #:
	 	  

  

 B-9 

 ATTACHMENT I 
 ACCOUNT CONTROL AGREEMENT 
 [FORM OF NOTICE OF EFFECTIVENESS] 
 VIA FACSIMILE TRANSMISSION 
  

					
	 TO:
	  	 Citibank, N.A.
	  	
	 DATED:
	  	 [Date]
	  	
	 ATTENTION:
	  	  
	  	

  

	 	Re:	 Account No. 40647095 (the “Account”) 

 Gentlemen: 
 Pursuant to the Account Control
Agreement among Abitibi-Consolidated U.S. Funding Corp., Abitibi-Consolidated Inc., Abitibi Consolidated Sales Corporation, us and you, dated as of January 31, 2008 (the “Agreement”), we hereby notify you, effective as of the date of
your receipt of this notice, to transfer at the close of each business day all funds deposited and collected in the Account to account number              at
             or such other account as we may notify you from time to time. 
  

			
	 CITIBANK, N.A., LONDON BRANCH,
 as Agent

		
	 By:
	 	  

	 Title:
	 	  

  

			
	 ACKNOWLEDGED AND AGREED:

	
	 Citibank, N.A.

		
	 By:
	 	  

	 Title:
	 	  

	 Date:
	 	  

	
	 388 Greenwich Street
 New York, NY 10013

	 Attention:
	 	  

	 Telecopy #:
	 	  

  

 B-10 

 ANNEX C 
 FORM OF 
 ASSIGNMENT AND ACCEPTANCE 
 Dated as of                     

 Reference is made to the Second Amended and Restated Receivables Purchase Agreement, dated as of
June 16, 2009 (said agreement, as it may from time to time be amended, supplemented or otherwise modified, being the “RPA”), among Abitibi-Consolidated U.S. Funding Corp., a Delaware corporation (the “Seller”),
Abitibi-Consolidated Inc., a Canadian corporation (“ACI”), Abitibi Consolidated Sales Corporation, a Delaware corporation (“ACSC”), the banks and other financial institutions listed on the signature pages of the
RPA, Citibank, N.A., as agent (the “Agent”) for the Banks (as defined in the RPA), Barclays Capital Inc., as syndication agent, and The CIT Group / Business Credit, Inc., as documentation agent. Unless otherwise defined herein,
terms defined in the RPA are used herein as therein defined. 
 [—
] (the “Assignor”) and [—] (the “Assignee”) agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor,
all of an interest in the Assignor’s rights and obligations under the RPA equal to the amounts specified on Section 1 of Schedule I hereto. The Bank Commitment and the aggregate amount of Capital assigned to the Assignee
are set forth in Section 1 of such Schedule I and the Bank Commitment and the aggregate amount of Capital retained by the Assignor after giving effect to such sale and assignment are set forth in Section 2 of such
Schedule I. 
 2. The Assignor (i) represents and warrants that it is the legal and beneficial
owner of the interest in the Receivable Interests being assigned by it hereunder and that such interest in such Receivable Interests are free and clear of any Adverse Claim created by it; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in connection with the RPA or any other Transaction Document or any other instrument or document furnished pursuant thereto, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the RPA or any other Transaction Document or any such other instrument or document furnished pursuant thereto, or the perfection, priority or value of any ownership interest or security
interest created or purported to be created under the RPA and the other Transaction Documents; and (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Seller or any Originator
or any Servicer or the performance or observance by the Seller or any Originator or any Servicer of any of their respective obligations under the RPA or any other Transaction Document or any other instrument or document furnished pursuant thereto.

 3. The Assignee (i) confirms that it has received a copy of the RPA and the other Transaction Documents
together with such other documents and information as it has deemed appropriate to make its own analysis and decision to enter into this Assignment and Acceptance and to purchase the interest in the Receivable Interests being purchased by it
hereunder; (ii) agrees that it will, independently and without reliance upon the Agent, any of its Affiliates, the

  

 C-1 

 
Assignor or any other Bank and based on such documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under the RPA
and the other Transaction Documents and the other instruments and documents furnished pursuant thereto; (iii) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers and discretion under the RPA
and the other Transaction Documents and any other instrument or document furnished pursuant thereto as are delegated to the Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; (iv) appoints
as its agent the Servicer from time to time designated pursuant to Section 6.01 of the RPA to enforce its respective rights and interests in and under the Pool Receivables and the Related Security and Collections with respect thereto and the
related Contracts; (v) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the RPA are required to be performed by it as a Bank; and (vi) specifies as its address and telecopier number
for notices the office and telecopier number set forth beneath its name on the signature pages hereof. 
 4.
Following the execution of this Assignment and Acceptance, the parties hereto shall promptly deliver such Assignment and Acceptance to the Agent for acceptance and recording by the Agent and to the Seller. The effective date for this Assignment and
Acceptance shall be the later of (i) the date the Agent receives this Assignment and Acceptance executed by the parties hereto and (ii) the date of this Assignment and Acceptance (the “Effective Date”). 
 5. Upon such acceptance and recording, as of the Effective Date, (i) the Assignee shall be a party to the RPA and, to
the extent provided in this Assignment and Acceptance, have the rights and obligations of a Bank thereunder and under the other Transaction Documents (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish
its rights and, except as otherwise provided in the RPA, be released from its obligations under the RPA. 
 6. Upon such acceptance and recording, from and after the Effective Date, the Agent shall make all payments under the RPA in respect of the interest assigned hereby (including, without limitation, all payments of Capital, Yield and
Fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the RPA for periods prior to the Effective Date directly between themselves. 
 7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the laws of the State of New York.

  

 C-2 

					
	[NAME OF ASSIGNOR]
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	 [NAME OF ASSIGNEE]

		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	 [Address and telecopier number and e-mail address]

	 Attention of:
	 	  

 Accepted this      day of
             
  

			
	 CITIBANK, N.A.,
 as Agent

		
	     By:
	 	  

		 	 Name:

		 	 Title:

 [ABITIBI-CONSOLIDATED U.S. FUNDING CORP.]1 
 as Seller 

			
		
	     By:
	 	  

		 	 Name:

		 	 Title:

  

	1	 If required 

  

 C-3 

 SCHEDULE I 
 TO 
 ASSIGNMENT AND ACCEPTANCE 
 Section 1. 
  

					
	 Bank Commitment assigned to Assignee:
	  	 	$            	  
	 Percentage of aggregate Bank Commitments assigned to Assignee:
	  	 	              	%2 
	 Aggregate amount of Capital assigned to Assignee:
	  	 	$            	  

 Section 2. 
  

				
	 Bank Commitment retained by Assignor:
	  	$            	  
	 Percentage of aggregate Bank Commitments retained by Assignor:
	  	              	% 

  

	2	 If Assignee was
not previously party to this Agreement, this percentage represents such Assignee’s “Percentage”. 

  

 C-4 

 ANNEX D 
 FORM OF 
 NOTICE OF PURCHASE 
 Dated as of             , 200   
 Citibank, N.A., 
     as Agent

 388 Greenwich Street, 19th Floor 
 New York, New York 10013 
 Attention: David Jaffe 
  

	 	Re:	 Abitibi-Consolidated U.S. Funding Corp. 

 Ladies and Gentlemen: 
 The undersigned, Abitibi-Consolidated U.S.
Funding Corp., refers to the Second Amended and Restated Receivables Purchase Agreement dated as of June 16, 2009 (as amended, restated, supplemented or otherwise modified from time to time, the “Receivables Purchase
Agreement”) among Abitibi-Consolidated U.S. Funding Corp., as the Seller (the “Seller”), Abitibi Consolidated Sales Corporation (the “Servicer”), Abitibi-Consolidated Inc., as the Subservicer, the banks and
other financial institutions party thereto, as Banks, Citibank, N.A., as agent (the “Agent”) for the Banks and the other agents party thereto. Unless otherwise defined herein, terms defined in the Receivables Purchase Agreement are
used herein as therein defined. 
 The Seller hereby gives you notice, irrevocably, pursuant to
Section 2.02 of the Receivables Purchase Agreement that the Seller hereby requests a purchase of a Receivable Interest under the Receivables Purchase Agreement, and in that connection sets forth below the information relating to such purchase
of Receivable Interests (the “Proposed Purchase”) as required by Section 2.02(a) of the Receivables Purchase Agreement: 
  

	 	(i)	 The requested initial Capital of such Receivable Interest is $             .

  

	 	(ii)	 The requested Business Day of the Proposed Purchase is             
    , 20    . 

  

	 	(iii)	 The Yield Rate with respect to such Receivable Interest shall be based on the [Alternate Base Rate with a Yield Period of [specify 1 to 29 days]]
[Adjusted Eurodollar Rate with a Yield Period of 1 month]. 

 The Seller hereby represents and
warrants that the conditions set forth in Section 3.02 with respect to the Proposed Purchase are satisfied on the date hereof. 
 Delivery of an executed counterpart of this Notice of Purchase by telecopier or other electronic means shall be effective as delivery of an original executed counterpart of this Notice of Purchase.

  

 D-1 

			
	 Very truly yours,

	
	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP.

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  

 D-2 

 ANNEX F 
 Form of Undertaking (Originator) 
 CONFIRMATION OF UNDERTAKING (ORIGINATOR) 

 Dated as of June     , 2009 
 The undersigned, as undertaking party under the Undertaking Agreement (Originator), dated as of October 27, 2005 in favor of Abitibi-Consolidated U.S. Funding Corp.
(“ACUFC”) (as amended, restated, supplemented and/or modified from time to time, the “Undertaking Agreement (Originator)”), assigned by ACUFC to Citibank, N.A. London Branch (“CBL”) pursuant to the
Assignment of Undertaking Agreement (Originator) dated as of October 27, 2007, and further assigned by CBL to Citibank, N.A. pursuant to the Second Amended and Restated Receivables Purchase Agreement, dated as of the date hereof (the
“ARRPA”), hereby confirms and agrees that, notwithstanding the effectiveness of the ARRPA and the other Transaction Documents (as defined in the ARRPA), the Undertaking Agreement (Originator) heretofore executed and delivered by it
is, and shall continue to be, in full force and effect, and the Undertaking Agreement (Originator) is hereby ratified and confirmed.
 This Confirmation of Undertaking (Originator) shall be considered to be executed and delivered by the undersigned in the United States of America and once an authorized director or officer of the
undersigned resident in the United States of America has executed the same. 
 This Confirmation of Undertaking
(Originator) and all related documents have been written in the English language at the express request of the parties. Le présent contrat ainsi que tous les documents s’y rattachant ont été rédigés en anglais
à la demande expresse des parties. 
 [Signatures continue on next page.] 
  

 F-1 

			
	 ABITIBI-CONSOLIDATED INC.

		
	 By:
	 	  

		 	 Name:

		 	 Title:

 [Signature Page to Confirmation of Undertaking (Originator)] 

 ANNEX G 
 Form of Undertaking (Servicer) 
 CONFIRMATION OF UNDERTAKING (SERVICER) 

 Dated as of June     , 2009 
 The undersigned, as undertaking party under the Undertaking Agreement (Servicer), dated as of October 27, 2005 in favor of Citibank, N.A., London Branch (“CBL”)
and certain investors and banks (as amended, restated, supplemented and/or modified from time to time, the “Undertaking Agreement (Servicer)”) and assigned by CBL to Citibank, N.A. pursuant to the Second Amended and Restated
Receivables Purchase Agreement, dated as of the date hereof (the “ARRPA”), hereby confirms and agrees that, notwithstanding the effectiveness of the ARRPA and the other Transaction Documents (as defined in the ARRPA), the
Undertaking Agreement (Servicer) heretofore executed and delivered by it is, and shall continue to be, in full force and effect, and the Undertaking Agreement (Servicer) is hereby ratified and confirmed.
 This Confirmation of Undertaking (Servicer) shall be considered to be executed and delivered by the undersigned in the
United States of America and once an authorized director or officer of the undersigned resident in the United States of America has executed the same. 
 This Confirmation of Undertaking (Servicer) and all related documents have been written in the English language at the express request of the parties. Le présent contrat ainsi que tous les
documents s’y rattachant ont été rédigés en anglais à la demande expresse des parties. 
 [Signatures continue on next page.] 
  

 G-1 

			
	 ABITIBI-CONSOLIDATED INC.

		
	 By:
	 	  

		 	 Name:

		 	 Title:

 [Signature Page to Confirmation of Undertaking (Servicer)] 

 ANNEX H 
 Insurance Policy 
 EDC 
 Export Development Canada 
 Exportation et développement Canada 
 December 5, 2008 
 Roland Fanning 

Director of Credit Operations 
 Abitibi-Consolidated Inc. 
 800-1155, rue Metcalfe 
 Montreal, PO, H3B 5H2 
 Care of: 
 Mr. Rejean Bourque 
 Marsh Canada Limited 
 800 -1981 McGill College 
 Montreal, PO, H4A 3T4

 Dear Mr. Fanning: 
 Re:
Policy No. CG 1 22818 
 We acknowledge receipt of your acceptance of our offer and thank you for insuring with us. 
 You will find enclosed a Country Schedule, Coverage Certificate, and Credit Management Schedule in addition to numerous endorsements. These
documents cancel and replace all those issued prior to this date. This new Policy is effective September 1, 2008 and all the shipments occurred since this date are to be reconciled under this new Policy. 
 Under this Policy, EDC will provide insurance for your export sales and Coface will provide insurance for your domestic sales. EDC will be
the administrator of the Policy and all communication should be with EDC. Information provided by you will be shared with Coface, where appropriate. 
 An important aspect of the Accounts Receivable Policy is that if the Insurers become aware of something that renders the risk of your buyer not paying unreasonably high, the Insurers may discontinue or
change the cover on the buyer or, if necessary, stop covering sales to a particular country. The provision permitting this kind of change is contained in Subsection 4(1) of the Policy. This is an essential feature of the insurance and is in the
Policy to address the fact that credit risk by its nature can change over time. Any such change to the cover would not apply to shipments which you have already made. 
 Please ensure that you request the necessary Credit Approvals on all buyers for whom amounts owing will exceed the maximum amount of Credit Limit that you are able to establish without contacting us by
using the methods set out in the Credit Management Schedule. 
 With the support of our automated Credit Approval system, we are
able to provide fast, efficient and reliable service in response to your Credit Limit requests. We encourage you to take advantage of our on-line “Credit Approval Manager” service using your Internet Interface, if you have not already done
so. 
 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613-598-2500 Fax 613-237-2690 www.edc.ca
 Canada 
  

 H-1 

 I will be responsible for the administration of your Policy until December 12, 2008;
after this date Ryan Smith will be your new underwriter. Should you have any questions, please do not hesitate to contact me. 
 Yours truly,

 /s/ Marlene Bouchard
 Marlene
Bouchard 
 Underwriter 
 Resources

 Telephone: 1-888-332-4089 
 Fax:
613-597-8830 mbouchard@edc.ca 
  

	C.C.:	 Nigel Kilvington, Citibank, NA, London Branch, as Agent for Eureka Securitisation, pic and Citibank, NA Global Securitization, Citibank, N.A.

  

 H-1 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 COVERAGE CERTIFICATE 
 Accounts Receivable Policy 
 (Shipments) 
 Insured: Abitibi-Consolidated Inc. 
 Policy Number. CG 1 22818 
 Issued:
December 5th, 2008 
 Effective: September 1st, 2008 
 Reference Number: 1 
 This Policy is Issued in Ottawa, Ontario by Export Development Canada (“EDC”) and by Compagnie Française d’Assurance pour le commerce Extérieur-Canada Branch (Coface)
(together referred to as the “Insurers”), to Abitibi-Consolidated Inc. (the “Insured”). This Certificate forms part of the Policy and, as of its effective date, it replaces any previous Coverage Certificate. 
 SPECIFIC TERMS OF COVERAGE PROVIDED UNDER THE POLICY ARE SET BELOW 
  
  

			
	 Coverage Effective Date:
	  	 September 1st, 2006

	 Policy Period:
	  	 September 1st to August 31st of each year.

		  	 If the Policy is terminated on a date other than August 31st the last Policy

		  	 Period will end on such termination date.

	 Anniversary Date:
	  	 September 1st of each year

	 Acceptance Fee:
	  	 GAD 0

	 Policy Currency:
	  	 USD

		
	 EDC’s Maximum Liability Amount:
	  	 USD 320,000,000

		
	 Coface Maximum liability Amount:
	  	 USD 50,000,000

		
	 Declaration Period:
	  	 September 1st to November 30th

		  	 December 1st to February 28th

		  	 March 1st to May 31st

		  	 June 1st to August 31st

		
	 Declaration Currency:
	  	 USD

		
	 Insurance Percentage:
	  	 90% (subject to section 16 of the Policy General Terms and Conditions)

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613-598-2500 Fax 613-237-2690 www.edc.ca 

 ADDRESS FOR NOTICES 
  
  

							
	 to the Insured at:
	 	 to the Insurers at:

		
	 Abitibi-Consolidated Inc.
 800 - 1155 Metcalfe
 Montreal, PO. Canada
 H3B 5H2
	 	 Export Development Canada
 151 O’Connor Street
 Ottawa, Ontario, Canada
 K1A 1K3

				
	 Attention:
	 	 Mr. Roland Fanning
	 	 Attention:
	 	 Ryan Smith

				
	 Tel. Number:
	 	 864-292-9202
	 	 Tel. Number:
	 	 866-749-5824

	 Fax Number:
	 	 514-394-2267
	 	 Fax Number:
	 	 613-597-8830

				
	 e-mail address:
	 	 Roland.Fanning@AbitibiBowater.com
	 	 e-mail address:
	 	 rsmith.@edc.ca

 EXPORT DEVELOPMENT CANADA, 
 for the Insurers 

	
	  

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 COUNTRY SCHEDULE 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 122818 
 Issued: December 5th, 2008 
 Effective: September 1st, 2008 
 Reference Number 1 
 This Schedule lists the countries
and the maximum payments terms in respect of which insurance coverage is provided and sets out the premium rates applicable to sales made by the Insured to buyers located in such countries and payable on such maximum payment terms. This Schedule
forms part of the Policy and, as of its effective date, it replaces any previous Country Schedule. 
  

							
	 Country
	    	 Maximum Payment Terms
	    	 Note
	    	Rate %
	 Algeria
	    	Up to 90 days	    		    	0.0625
	 Arab Republic of Egypt
	    	ILC 91-180 days.	    		    	0.0625
	 Argentina
  
  
 See REGISTRATION NOTE
	    	 Up to 180 days
 Cash Against
 Documents/Documents
 on Payment of a Sight Draft
	    		    	0.0625
0.0625
	 Aruba
	    	 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	    		    	0.0625
	 Australia
	    	Up to 90 days	    		    	0.0625
	 Austria
	    	ILC -Sight 30 days Up to 90 days	    		    	0.0625
0.0625
	 Barbados
	    	Up to 90 days	    		    	0.0625
	 Belgium
	    	Up to 90 days	    		    	0.0625
	 Bermuda
	    	Up to 90 days	    		    	0.0625
	 Brazil
	    	 Up to 90 days
 91 to 180 days
 ILC 91 180 days
 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	    		    	0.0625
0.0625
0.0625
0.0625
	 Canada Domestic
	    	Up to 90 days	    		    	0.0650
	 Canada Export
	    	Up to 180 days	    		    	0.0625

  

 Page 1 of 4 

							
	 Chile
	  	Up to 180 days	  		  	0.0625
	 Colombia
	  	Up to 180 days	  		  	0.0625
	 Costa Rica
	  	Up to 180 days	  		  	0.0625
	 Cyprus/Greece
	  	Up to 180 days	  		  	0.0625
	 Denmark
	  	Up to 90 days	  		  	0.0625
	 Dominican Republic
	  	 Up to 180 days
 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	  		  	0.0625
0.0625
	 Ecuador
  
  
  
 See REGISTRATION NOTE
	  	 Up to 180 days
 ILC 91-180 days
 Cash Against
 Documents/Documents on
 Payment of a Sight
Draft
	  		  	0.0625
0.0625
0.0625
	 El Salvador
	  	Up to 180 days -	  		  	0.0625
	 France
	  	Up to 180 days	  		  	0.0625
	 Germany
	  	Up to 90 days	  		  	0.0625
	 Ghana
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 Greece
	  	Up to 180 days	  		  	0.0625
	 Guadeloupe
	  	Up to 180 days	  		  	0.0625
	 Guatemala
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 Honduras
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 Hong Kong
	  	Up to 90 days	  		  	0.0625
	 Hungary
	  	Up to 90 days	  		  	0.0625
	 Ireland
	  	 Up to 90 days
 91 to 180 days
	  		  	0.0625
0.0625
	 India
	  	 Up to 180 days
 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	  		  	0.0625
0.0625
	 Ireland
	  	 Up to 90 days
 91 to 180 days
	  		  	0.0625
0.0625
	 Israel
	  	91 to 180 days	  		  	0.0625
	 Italy
	  	Up to 180 days	  		  	0.0625
	 Jamaica
	  	Up to 180 days	  		  	0.0625
	 Japan
	  	Up to 90 days	  		  	0.0625
	 Kuwait
	  	Up to 90 days	  		  	0.0625
	 Luxembourg
	  	Up to 90 days	  		  	0.0625

  

 Page 2 of 4 

							
	 Macedonia
	  	Up to 90 days	  		  	0.0625
	 Malta
	  	Up to 90 days	  		  	0.0625
	 Martinique
	  	Up to 180 days	  		  	0.0625
	 Mexico
	  	Up to 180 days	  		  	0.0625
	 Morocco
	  	Up to 90 days	  		  	0.0625
	 Netherlands
	  	Up to 90 days	  		  	0.0625
	 Netherlands Antilles
	  	Up to 90 days	  		  	0.0625
	 New Zealand
	  	 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	  		  	0.0625
	 Nicaragua
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 Norway
	  	Up to 90 days	  		  	0.0625
	 Panama
	  	Up to 180 days	  		  	0.0625
	 Paraguay
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 People’s Republic of China
	  	Up to 90 days ILC 31 -90 days	  		  	0.0625
	 Peru
	  	Up to 180 days	  		  	0.0625
	 Portugal
	  	Up to 90 days	  		  	0.0625
	 Puerto Rico
	  	Up to 90 days	  		  	0.0625
	 Republic of Korea
	  	 ILC Sight -30 days
 ILC 31-90 days
 91 to 180 days
	  		  	0.0625
0.0625
0.0625
	 Saudi Arabia
	  	Up to 90 days	  		  	0.0625
	 Singapore
	  	Up to 180 days	  		  	0.0625
	 Slovak Republic
	  	Up to 90 days	  		  	0.0625
	 Slovenia
	  	Up to 90 days	  		  	0.0625
	 Spain
	  	Up to 90 days	  		  	0.0625
	 Sri Lanka
 See REGISTRATION NOTE
	  	Up to 180 days	  		  	0.0625
	 Sweden
	  	Up to 180 days	  		  	0.0625
	 Switzerland
	  	Up to 180 days ILC 31-90 days	  		  	0.0625
	 Taiwan
	  	Up to 180 days	  		  	0.0625
	 Thailand
	  	Up to 180 days	  		  	0.0625
	 Trinidad and Tobago
	  	Up to 90 days	  		  	0.0625
	 Tunisia
	  	Up to 180 days	  		  	0.0625
	 Turkey
	  	 Up to 90 days
 91 to 180 days
	  		  	0.0625
0.0625

  

 Page 3 of 4 

							
		  	 Cash Against
 Documents/Documents on
 Payment of a Sight Draft
	  		  	0.0625
	 Ukraine
 See REGISTRATION NOTE
	  	Up to 90 days	  		  	0.0625
	 United Arab Emirates
	  	Up to 180 days	  		  	0.0625
	 United Kingdom
	  	Up to 90 days 91 to 180 days	  		  	0.0625
 0.0625

	 United States of America
	  	Up to 90 days 91 to 180 days	  		  	0.0625
 0.0625

	 Uruguay
	  	Up to 180 days	  		  	0.0625
	 Venezuela
 See REGISTRATION NOTE
	  	Up to 90 days 91 to 180 days	  		  	0.0625
 0.0625

	 Virgin Island (BR)
	  	Up to 180 days.	  		  	0.0625

  

	*	 RESTRICTION NOTE: There are further restrictions that apply to this market, please see the Credit Management schedule. 

EXPORT DEVELOPMENT CANADA, 
 for the
Insurers 

	
	  

  

 Page 4 of 4 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 CREDIT MANAGEMENT SCHEDULE 
 Insured: Abitibi-Consolidated Inc. 
 Policy Number: CG 122818 
 Issued:
December 5th, 2008 
 Effective: September 1st, 2008 
 Reference Number: 1 
 This Schedule sets out the procedures that the Insured must follow to establish Credit Limits for buyers, and describes the insured’s obligation as to how to follow up on overdue accounts. This
Schedule forms part of the Policy and. as of its effective date, it replaces any previous Credit Management Schedule. 
 KEY DEFINITIONS

  
  

			
	 Credit Limit
	  	 means the maximum amount of Loss that the Insured may sustain in respect of any individual buyer and still obtain the maximum Insurance Percentage under the
Policy.

		
	 Credit Approval
	  	 means a notice given by the Insurers to the Insured slating the amount of the Credit Limit for a buyer or group of buyers and. stipulating any specific
conditions or changes to the insurance coverage applicable to sales to that buyer or group of buyers.

		
	 Discretionary Credit Limit
	  	 means the maximum Credit limit that the Insured may establish, without contacting the insurers, by using one of the methods for establishing such a Credit
Limit set out in this Credit Management Schedule.

 OBLIGATIONS OF THE INSURED 
  
 The
Insured must establish and maintain a Credit Limit for all buyers by using one of the methods set out in Section 1 below or by requesting a Credit Approval from the Insurers 
 (See Section 2, below). 
 The Credit Limit should be equal to or greater than the amount owed by the buyer to the Insured. 

The Insured must take appropriate action to follow up on overdue accounts, including those set out in
Section 3, below. 
 Section 1: DISCRETIONARY CREDIT LIMITS  
  
 Depending on the size of the Credit
Limit required, there are various methods that the Insured can use to establish a Credit Limit for a buyer without contacting the Insurers. The Insured may use only one method for each buyer. 
  

					
	 However, the Discretionary Credit Limits for the buyers located in some countries are limited to the amount Indicated in the adjacent table no matter
what amount is obtained by using the methods set out below.
	  	 COUNTRIES FOR WHICH THE DISCRETIONARY CREDIT LIMIT IS RESTRICTED

	  
		  		  	
	 	  	 County
	  	 Maximum Credit Limit

		  	 Argentina
	  	 USD 0

  

 Page 1 de 2 

					
		  	 Ecuador
	  	 USD 0

		  	 Guatemala
	  	 USD 0

		  	 Honduras
	  	 USD 0

		  	 Nicaragua
	  	 USD 0

		  	 Paraguay
	  	 USD 0

		  	 Ukraine
	  	 USD 0

		  	 Venezuela
	  	 USD 0

		  	 Ghana
	  	 USD 0

		  	 Sri Lanka
	  	 USD 0

 THE METHODS FOR ESTABLISHING A CREDIT LIMIT ARE AS FOLLOWS: 
  
  

			
	Method 1	  	 The Insured’s own experience -Up to 125% of the highest amount of credit that the Insured has extended to the buyer on similar terms that was promptly
paid during the twelve month period before the date coverage for the transaction with the buyer begins.

  

			
	 Maximum Credit Limit using Method 1:
	  	USD : 500,000    

  

			
	Method 2	  	 Written Credit information - Favourable written information provided by a recognized credit Information agency or a bank which supports the extension of
credit for the amount of the sale. The information cannot be dated more than twelve months before the date coverage for the transaction with the buyer begins.

  

			
	 Maximum Credit Limit using Method 2:
	  	USD : 500,000    

  

			
	Method 3	  	 Financial Statements & Written Credit Information - Favourable Financial Statements in combination with favourable written credit information of the buyer
which support the extension of credit for the amount of the sate. The fiscal year end of the statements cannot be more than eighteen months before the date coverage for the transaction with the buyer begins. The written credit information Cannot be
dated more than twelve months before the date coverage for the transaction with the buyer begins.

  

			
	 Maximum Credit Limit using Method 3:
	  	USD : 1,000,000

 Section 2: CREDIT APPROVALS  
  
 When the Insured requires a Credit
limit higher than can be established by using the methods provided in Section 1, the Insured must contact the Insurers to obtain a Credit Approval. 
 Section 3: OVERDUE ACCOUNTS  
  
 The longer an account remains overdue, the greater the likelihood of a loss. One of your responsibilities under the Policy is to attempt to collect overdue accounts. 
  

	
	 EXPORT DEVELOPMENT CANADA

	 for the Insurers

  

	
	  

  

 Page 2 of 2 

 EDC 
 Coface 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 GENERAL TERMS AND CONDITIONS 
 This
insurance policy is issued to the Insured identified In the Coverage Certificate by Export Development Canada (“EDC”) and Compagnie Française d’Assurance pour le Commerce Extérieur - Canada Branch (“Coface”),
who are together referred to In this Policy as the “Insurers”. The Insurers have separate liability to the Insured. 
 EDC is the Administrator of this Policy for the Insurers. All communications and correspondence between the Insured and the Insurers are to be With EDC, and all requests, claims, declarations and other submissions and notices required by
the Policy to be made to the Insurers are to be made to EDC. All premium is to be paid to EDC. 
 Capitalized terms no1 defined
in this document shall have the meanings given to them in the Coverage certificate. 
 COVERAGE 
  
  

			
		
		  	 1. The Insurers hereby provide Insurance for goods Shipped on or after the Coverage Effective Date, subject to the provisions of this Policy and in consideration
of the insured’s payment of the Acceptance Fee and Undertaking to pay all required premium.

		
	 EDC. Coverage
	  	 EDC Insures the Insured against and agrees to pay the Insurance Percentage of any loss covered by the Policy that is sustained by the Insured under Eligible
Contracts with buyers in countries listed in the Country Schedule (excluding Canada), as a direct result of the occurrence of any Risk described in Section 2. Such a loss is referred to as an “Export Loss”. The amount of any Export Loss
will be determined pursuant to Section 19.

		
	 Coface Coverage
	  	 Coface insures the Insured against and agrees to pay the Insurance Percentage of any loss covered by the Policy that is sustained by the Insured under Eligible
Contracts with buyers located in Canada (if Canada Is listed In the Country Schedule), as a direct result of the occurrence of a Risk described in Subsection 2(1), 2(2) or 2(3) only. Such a loss is referred to any “Domestic Loss”, The
amount of any Domestic Loss win be determined pursuant to section 19.

		
	 Loss
	  	 The term “loss , when used in this Policy, means either an Export Loss or a Domestic Loss, or both, as the context requires. A Loss is covered under this
Policy only if it is an amount that was payable by the buyer which was not paid as a direct result of the occurrence of a covered Risk or which would have become payable under the Eligible Contract if the risk had not occurred.

		
	 Risks
	  	2. The risks that are covered under this Policy (the “Risks”) are the following:
		
	 Insolvency
	  	 (1) failure of the buyer to pay when the financial situation of the buyer has resulted in:

		
		  	 (a)    proceeding being commenced under the bankruptcy or insolvency laws of the buyer’s
country for the reorganization of the financial affairs of the buyer or the winding up of the buyer; or

		
		  	 (b)    the conclusion of a composition arrangement which is legally binding on all the
creditors of the buyer;

 151 O’Connor, Ottawa. ON K1A lK3 
 613-598 2500 fax 613.237.2690 www.edc.ca 
  

 Page 1 of 14 
 30-028-Globex-Quebec (1008) 

			
		
	 Default
	  	 (2) failure of the buyer to pay by the Due Dale all or any part of the Gross Invoice Value of goods that were delivered In
accordance with the terms of the Eligible Contract and accepted by the buyer;

		
	 Repudiation
	  	 (3) failure or refusal of the buyer to accept goods within thirty days from the date on which the goods were placed at the
buyer’s disposal In accordance with the delivery terms of the Eligible Contract, if such failure or refusal is not excused by and does not arise from any breach of contract on the part of the Insured;

		
	 Conversion and Transfer
	  	 (4) the operation of a law of any governmental directive having the force of law in the buyer’s country which restricts or
prevents the conversion or transfer of currency and thereby prevents the buyer from making payment required under the Eligible Contract, and the buyer has:

		
		  	 (a)    complied with all requirements in the buyer’s country for the conversion or
transfer of currency to make such payment; and

		
		  	 (b)    made an irrevocable deposit for transfer to the Insured of a sum In the currency of
the buyer’s country equivalent to the amount of the payment required to be made to the Insured, unless the buyer was precluded from making such deposit by a law or any governmental directive having the force of law in that
country;

		
	 War and Related
 Disturbances
	  	 (5) war or hostilities between two or more countries, or rebellion, revolution, Insurrection, civil commotion or acts of political
terrorism, in any country other than Canada, excluding however any Loss sustained as a result of the occurrence of a risk that was within the scope of marine cargo insurance, such as that provided under the War, Strikes, Riots and Civil Commotions
Clauses of the London or American Institute, that was available on the date the goods were Shipped. Whether or not any such insurance was placed;

		
	 Export Permits
	  	 (6) cancellation or non-renewal of an export permit by the Government of Canada or the imposition by the Government of Canada of
restrictions on the export of goods which were not subject to permit or restriction prior to the date on which the goods were Shipped; and

		
	 Import Permits
	  	 (7) cancellation or non-renewal of an import permit or the imposition of restrictions on such Import of goods which were not subject
to permit or restriction prior to the date on which the goods were Shipped.

		
	 Services Coverage
	  	 3. Coverage is also provided for services rendered by the Insured with respect to goods insured under the Policy when the services are sold under the same
Eligible Contract as the goods. For purposes of such coverage, all references in the Policy to “goods” shall be deemed to Include services, and all references in the Policy to “goods Shipped , shipments and “goods delivered”
shall be deemed to Include the services that were rendered by the Insured with respect to such goods.

		
	 Changes
 at any time
	  	 4. (1) The Insured acknowledges that because of the changing nature Of credit risk, the Insurers conduct ongoing assessments of the risk undertaken by the Policy
and Credit Approvals issued there under. The Insured agrees that if in their ongoing assessment of risk. The Insurers become aware of any fact or circumstance which is material to the assessment of the credit risk undertaken, and which in the
Insurers’ view renders the risk of Loss unreasonably high, the Insurers may, by prior written notice to the Insured, change, cancel or withdraw any Credit

  

 Page 2 of 14 
 30-028-Globex-Quebec (1008) 

			
		  	 Limit or Credit Approval, exclude a buyer, or change the provisions of the Country Schedule. Including, without limitation, by
removing a country from the Country Schedule. However, any such change, cancellation or withdl1llwal shall apply only to goods to be Shipped after receipt of the notice by the Insured (the date of such receipt to be determined In accordance with
Section 35). Any Loss with respect to goods Shipped after receipt of the notice, other than goods Shipped in accordance with a change set out in any such notice, shall be conclusively deemed to be a Loss that was due to a cause avoidable by the
Insured and therefore excluded from coverage pursuant to Section 8 of the Policy.

		
	 Changes
 annually
	  	 (2) The Insurers shall have the right to change the premium rates and any term or condition of the Policy as of any Anniversary Date,
provided that the Insured is sent an Initial notice, at least 60 days prior to the Anniversary Date, that changes mayor will be made to the Policy, but the changes need not be specified as part of such Initial notice. The Insured will be notified of
the specific changes at a later date and the changes will become effective on the first Anniversary Date following the Insurers’ Initial notice if the Insured notifies the Insurers that the changes are acceptable. If the Insured does not agree
with the changes, the Policy win terminate 60 days after 5uch Anniversary Date and during that 60 day period the existing rates and terms and conditions will continued to apply.

		
	 Application
	  	 5. The statements made by the Insured in the Application are the basis upon which this Policy has been issued. If any such statements are untrue, incomplete or
incorrect in any material respect, this Policy shall be void as of the Coverage Effective Date and the Insurers may retain any premium and fees that have been paid.

		
	 Documentation Risk
	  	 6. Even though the Insurers may have received from the Insured, or provided comments on, any contract of sale, agreement or other documentation, the Insured
remains responsible for ensuring that effectiveness of all documentation including ensuring that an agreement creates a binding payment obligation by the relevant party.

		
	 Disputes
	  	 7. If there is a dispute between the Insured and the buyer with regard to any matter which brings into question the amount owing (or whether there is any amount
owing) by the buyer to the Insured (a “Dispute” the Insurer shall have no liability with respect to the claim until the Dispute is finally settled, by negotiation or otherwise, and the Loss amount is clearly
established.

 EXCLUSIONS 
  
  

			
		  	 8. The Insurers shall not be liable for the payment of a claim for Loss if:

		
	 Misrepresentation
	  	 (1) the Insured has at any time made any misrepresentation to an Insurer or has failed to disclose to the insurers any information
that is material to the rights, liabilities or obligations of either insurer under this Policy;

		
	 Changing “Terms of
Payment
	  	 (2) the Insured has agreed with the buyer to change the payment terms under the eligible Contract, unless:

		
		  	 (a)    the Insurer has given its prior written approval;

		
		  	 (b)    such agreement constitutes a composition arrangement that is legally binding on all
creditors of the buyer; or

		
		  	 (c)    the agreement was made in the circumstances described in
Section 9;

  

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	 Assignment of Contract
	  	 (3) any right, title or interest of the Insured under the Eligible Contract has been assigned by the Insured to any person other
than the Insurer, unless the assignment was by way of security only and the assignee has executed and delivered to the Insured a reassignment and release in respect thereof in form and substance satisfactory to the Insurer;

		
	 Cause avoidable
	  	 (4) the loss is due to a cause avoidable by the Insured, an Affiliate or an agent of an Affiliate, or by a failure of any of these
persons to act in a commercially reasonable manner, or the Loss is caused by the Insolvency of any of these persons;

		
	 Related Buyer
	  	 (5) the buyer is an Affiliate, unless the existence of the affiliation was specifically acknowledged in writing by the Insurer and the
Insurer agreed in writing to provide coverage in respect of such buyer;

		
	 Goods Shipped When Buyer in Default
	  	 (6) at the time the goods were Shipped, the buyer had been in default of its payment obligations, to the Insured for more than 60 days
for en amount greater than 10% of the total amount due to the Insured by that buyer, unless the Insurer agreed in writing to the goods being Shipped despite the default;

		
	 Corruption
	  	 (7) the Insured, an agent of the Insured, an Affiliate or an agent of an Affiliate has engaged in or knowingly been party to any
action, in relation to the Eligible Contract, that is prohibited by Canada’s Corruption of Foreign Public Officials Act or by the criminal laws dealing with the bribery of public officials that are applicable In a country In which any such
agent or Affiliate is located. except that if the Loss would have been payable to a third party pursuant to the provisions of a Direction to Payor a Tripartite Agreement, the Insurer will make the claim payment to that third party and the Insured
shall Immediately reimburse the amount of the claim payment to the Insurer;

		
	 Licenses, Approvals or Authorizations
	  	 (8) the Insured has failed to obtain and maintain all licenses, approvals, or other authorizations required on the date the goods were
Shipped for the performance of the Eligible Contract or the buyer has failed to obtain such approvals or authorizations (that the buyer was responsible to obtain) prior to the Insured shipping the goods; or

		
	 Other insurance
	  	 (9) the Insured is a beneficiary under any other policy of insurance, guarantee or agreement of any kind that provides an Indemnity
with respect to the loss, unless otherwise agreed to by the Insurers In writing or unless required by the Insurers In a Credit Approval.

		
	 Extension of Due
	  	
		
	 Date
	  	 9. If the buyer has requested the extension Of a Due Date, the Insured may agree with the buyer to extend the Due Date if:

		
		  	 (1) the original payment terms were not cash against documents, documents on payment or documents against payment of sight draft;

		
		  	 (2) the agreement to extend the Due Date is entered into prior to the original Due Date;

		
		  	 (3) the extended Due Date is not more than 90 days from the original Due Date; and

		
		  	 (4) the extended Due Date does not result in the insured having granted credit to the buyer-for a total period in excess of 180
days.

  

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 30-028-Globex-Quebec (1008) 

 DUTIES OF THE INSURED 
  
  

			
	 Notification of
 Other Contracts
	  	 10. The Insured shall promptly notify the Insurers each lime a shipment of goods is to be made by the Insured under a contract of sale (other than an Excluded
Contract) that is on terms not provided for In the Country Schedule or with a buyer located in a country not listed in the Country Schedule, and on being so notified. the Insurers shall either:

		
		  	 (1) extend the insurance coverage to include the contract of sale as an Eligible Contract by adding the buyer’s country
and/or the new payment terms to the Country Schedule, and advise the Insured of the terms of such coverage; or

		
		  	 (2) designate the contract Of sale as an Excluded Contract.

		
		  	 11. On or before the 20th day of the month following the end of each Declaration Period. the Insured shall:

		
	 Declarations
	  	 (1) complete and return to the Insurers the declaration worksheet provided by the Insurers, specifying by country (or, In the case of
Canada, by province or territory) where the buyer Is located, the Gross Invoice Value of all goods Shipped during that Declaration Period under contracts of sale other than Excluded Contracts, and if no such goods have been Shipped during that
Declaration Period, the Insured shall submit a nil declaration; and

		
	 Payment of Premium
	  	 (2) pay premium, computed on the Gross Invoice Value of all goods Shipped during that Declaration Period under contracts of sale other
than’ Excluded Contracts, al the rates applicable on the date the goods were Shipped, as set out in the Country Schedule: and any applicable taxes.

		
	 Payment of Other Fees
	  	 12. Upon receipt of a statement of account, the Insured shall promptly pay all fees owing for any services provided by the Insurers of obtained by the Insured
for the insured for purposes of the coverage.

		
	 Overdues and Events that could Cause .a Loss
	  	 13. The Insured shall immediately notify the Insurers of any event or circumstance of which the Insured is aware that could cause a Loss, including, without
limitation, any deterioration in the financial condition of a buyer, and, on or before the 20th day of each calendar month, the Insured shall provide the Insurers with full particulars as to all amounts payable by buyers under Eligible Contracts
that have been in default for more than 90 days.

		
	 prevent and
 Minimize Loss
	  	 14. The Insured shall use all reasonable and usual care, skill and forethought in respect of all matters affecting this Policy, and shall take all
practicable measures, including any measures requested by the Insurers, to prevent the occurrence of any Los or minimize the amount of any loss that may occur or that has occurred. The Obligation to prevent and minimize loss applies both prior to
and after the filing of a claim application and it includes, without limitation, the obligation to:

		
		  	 (1) monitor overdue accounts by following the procedures for the collection of overdue accounts that are sat out in the Credit
Management Schedule or, if no such procedures are set out in the Credit Management Schedule, by following the Insured’s own procedures;

  

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		  	 (2) file a proof of claim in the bankruptcy of the buyer; and

		
		  	 (3) discontinue shipping goods to buyers that have been in default for more than 60 days for an amount greater than 10% of the
total amount due to the Insured by that buyer, unless the Insurer agreed in writing to the goods being Shipped despite the default.

 CREDIT LIMITS 
  
  

			
	 Credit Limits
	  	 15. In order for this Policy to apply to sales to a buyer, the Insured must establish a Credit Limit for the buyer by following the procedures set out in the
Credit Management Schedule. The procedures may require that the Insured obtain a Credit Approval.

		
	 Declining Insurance Percentage when Loss exceeds Credit Limit
	  	 16. For any case where the Loss amount (together with the amount of all previous claim payments in respect of the same buyer which have not been recovered)
exceeds the Credit limit for the buyer, the Insurance Percentage set out in the Coverage Certificate or in the Credit Approval will decline. In those cases, the new insurance Percentage Will be:

		
		  	 (A)   the amount of the Credit limit,

		
		  	 less

		
		  	 (B)   the amount of any previous Losses (Which have not been recovered) in respect of which claim
payments were made for the same buyer, divided by

		
		  	 (C)   the Loss amount,

		
		  	 multiplied by

		
		  	 (D)   the original applicable Insurance Percentage specified in the Credit Approval or in the
Coverage Certificate.

		
		  	 17. Notwithstanding the total amount of all Credit Limits:

		
	 EDC’s Maximum Liability
	  	 (1) the amount of EDC’s overall maximum liability for all Export Losses in respect of which the Insured becomes entitled 10
receive claim payments in each Policy Period. Is limited to EDC’s Maximum Liability Amount; and

		
	 Coface’s Maximum liability
	  	 (2) the amount of Coface’s overall maximum liability for all Domestic Losses in respect of which the Insured becomes entitled to
receive claim payments in each Policy Period, is limited to Coface’s Maximum Liability Amount.

		
		  	 For greater certainty, EDC has 00 liability for or In relation to any Domestic Loss claim and Coface has no liability for or in relation to any Export Loss
claim.

  

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 CURRENCY CONVERSIONS 
  
  

			
	 Declarations
and premium
	  	 18. (1) All declarations of goods Shipped and all premium shall be expressed and paid In a Declaration Currency. For purposes of determining the amount to be
declared and the premium 10 be paid when the Contract Currency is not a Declaration Currency, the Gross Invoice Value shall be converted to its equivalent value in a Declaration Currency, at the rate applicable at the Insured’s bank for buying
Declaration Currency with Contract Currency on the last business day of the Declaration Period In which the goods were Shipped.

		
	 Claim payment
	  	 (2) Claim payments shall be made In the Contract Currency if the Contract Currency Is USD or CAD. If the Contract currency is not USD
or CAD, the claim payment shall be made in the Policy Currency and, to determine the amount of the claim payment, the Loss amount shall be converted to the Policy Currency at the lesser of the dally noon mid-market rate for such conversions
applicable at EDC’s bank on:

		
		  	 (a)    the last business day of the calendar month in which the goods were Shipped;
and

		
		  	 (b)    the date on which the Insured became entitled to receive Ii claim payment, as set out
in Section 21.

		
	 Insurers’ liability
	  	 (3) For purposes of calculating each Insurer’s remaining exposure under any maximum liability amounts under the Policy, any claim
payment made in a currency other than the Policy Currency shall be converted to the Policy Currency at the daily noon mid-market rate for such conversions applicable at EDC’s bank on the last business day of the calendar month prior to the date
of the claim payment.

 LOSSES 
  
  

			
	 Computation of
Loss
	  	 19. The amount of a Loss that is covered by the Policy will be computed in the Contract Currency, and is the Gross Invoice Value of the goods Shipped together
with any additional insurance, freight or other handling costs (exclusive of demurrage) that were incurred as a result of any interruption or diversion of delivery due to the occurrence of the Risk which resulted in the Loss,
less;

		
		  	 (1) any amount which the Insured agrees the buyer is entitled to take Into account by Way of payment, credit, set-off or
counterclaim;

		
		  	 (2) all amounts received, recovered or. realized by or on behalf of the insured on account of amounts payable by the buyer to the
Insured in respect of such goods, including any amount realized through sale or disposal of the goods: and

		
		  	 (3) all costs that would normally have been incurred by the Insured In respect of such goods but which have not been incurred as
a result of the occurrence of the Risk. .

  

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	 Non-Qualifying Loss
	  	 20. In Insurer shall not be liable for the payment of any Loss where the amount of such Loss equal to or less than the Non-Qualifying Loss amount. A
“Non-Qualifying Loss” is a Loss which is not covered by the Policy because of its size. The amount of the Non-Qualifying Loss and the circumstances in which it applies are set out in the Coverage certificate.

 CLAIMS PROCESS 
  
  

			
	 Claim Waiting
 Period
	  	 21. The Insured shall become entitled to receive a claim payment for a Loss1hat has been determined to be an eligible claim four months after the date on which
the Loss was sustained by the Insured, except that:

		
		  	 (1) If the Loss Is a result of the Risk described in Subsection 2(1), the Insured shall become entitled to receive a claim payment
immediately upon the Loss having been sustained by the Insured; and

		
		  	 (2) if the Loss is a result of the Risk described In Subsection 2(3), ‘the Insured shall become entitled to receive a claim
payment after the goods have been resold or Otherwise disposed of by or on behalf of the Insured with the prior written approval of the Insurer, Which approval shall not be unreasonably withheld.

		
	 Claim Period
	  	 22. An Insurer shall not be liable for the payment of a claim for Loss if the Insured has not filed a claim application for the Loss Within twelve months from
the date on which the Loss was Sustained.

		
	 Claim Application
	  	 23. (1) When submitting a claim application, the Insured must establish that an Insured Risk has occurred, the amount of the Loss, and that the loss is within
the terms of cover. In the case of any loss which has arisen from business transacted by an Affiliate or by an agent of the’, Insured or an Affiliate, the Insured must also provide the Insurer with a signed copy of a declaration form provided
by the Insurer In which the agent or Affiliate has made the declaration required by the Insurer to the effect that the agent or Affiliate has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public
officials.

		
		  	 (2) The Insurer is entitled to Investigate all aspects of each claim. Tile Insured must assist the Insurer with the investigation by
providing to the Insurer any records. documentation, information, certificates or other forms of proof that the Insurer may reasonably require to Mable the Insurer to assess the claim eligibility and the amount of the Loss, including, without
limitation, Information required for the purpose of determining if any of the exclusions of the Insurer’s liability set out In Section 8 or elsewhere in the Policy apply to the claim.

		
		  	 (3) Within 30 days of receipt of a claim application, or the receipt of any additional information in’ respect of a claim, the
Insurer shall advise the Insured if any additional information is required. If the Insured falls to provide any such information Within 30 days of the Insurer’s request, the Insurer may consider the claim abandoned.

		
	 Claim Determination
	  	 24. Within 30 days of receipt of a claim application or of all additional information that was requested, the Insurer shall advise the Insured that: (i) a claim
payment will be made; (ii) the claim is denied; or (iii) the Insured is not eligible for a claim payment due to the existence of a Dispute. If a claim is payable and the Insurer fails to pay the claim within 30 days of the later of: (i) the date the
Insured is entitled to receive a claim payment, (ii) the date when the Insurer received the claim application, and (iii) the date when the Insurer received the requested additional Information, the

  

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		  	 insurer will pay interest on the amount payable by the insurer at the rate per annum quoted by EDC’s bank as its prime rate for the currency of the claim
payment, as of the day following the date the claim should have been paid. and such interest shall be calculated annually in arrears from, but excluding, the 30th day after the later of: (i) the date the insured is entitled to receive a claim payment, (ii) the date when the
insurer received the claim application, and (iii) the date when the insurer received the requested additional information, to, and including, the date the claim is paid to the Insured and such interest is payable on the date the claim is
paid.

		
	 Claim payment return
	  	 25. If an Insurer has paid a claim to the Insured and:

		
		  	 (1) the Insurer becomes aware of information that would have entitled the Insurer not to pay the claim., including, without
limitation, the fact that any of the exclusions of the Insurer’s liability set out in Section 8 or elsewhere in the Policy applied to the claim, or’

		
		  	 (2) the Insured fails to comply with its obligations under the Policy following a claim payment,

		
		  	 the Insured shall, forthwith upon the Insurer’s demand, repay the claim amount to the Insurer, with interest thereon at the rate per annum quoted by
EDC’s bank as Its prime rate for the currency of the claim payment, as of the date the claim was paid, and such interest shall be calculated annually in arrears from, but excluding, the date the claim was paid, to, and including, the date the
claim is repaid to the Insurer and such interest is payable on the date the claim is repaid.’

		
	 Reservation of
 Rights
	  	 26. The Insurers hereby expressly reserve all rights under the Policy. No action or failure to act by or on behalf of an Insurer in connection with investigating
a claim or seeking to prevent or minimize a Loss, including, without limitation, the undertaking of investigations, discussions or negotiations with a buyer or any third parties, shall constitute a waiver by the insurer of any of its rights under
the Policy or prevent or estop the insurer from thereafter exercising any of its rights under the Policy including, without limitation, Its right to deny liability or terminate the Policy.

 RECOVERIES 
  
  

			
	 Subrogation
	  	 27. (1) Subject to Subsection 27(2), upon the payment of a claim, the insurer is subrogated to all the insured’s rights against any person
responsible for the Loss up to the amount of the claim payment The Insurer is entitled to take legal action against any person In order to exercise those subrogated rights.

		
		  	 (2) The Insurer waives all rights of Subrogation If the claim payment was made to a third party pursuant to the provisions of a
Tripartite Agreement or a Direction to Pay in circumstances In which the claim payment would not have been made directly to the Insured as a result of the application of Subsection 8(7).

		
	 Rights and
 Obligations
 of the Insured
	  	 28. (1) Where an Insurer pays a claim, the Insured ~ay exercise its rights for the balance of its claim against the buyer for which the Insured has not
been indemnified by the insurer, in preference to the insurer.

  

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		  	 (2) On payment of a claim by the insurer the Insured shall:

		
		  	 (a)    fully co-operate with the insurer in its recovery efforts, which may include
litigation and the defence of any counterclaim brought against the insurer; and

		
		  	 (b)    Indemnify the insurer against any liability that may be incurred by the insurer as a
result of any reasonable and proper action that was taken by the insurer in seeking to recover the Loss or that may have arisen out of an action or claim brought against the Insurer by the buyer or any other person if such action or claim was
brought as a result of a failure to perform or an unreasonable action or inaction by the insured in relation to the Eligible Contract, or any related agreement, or otherwise.

		
	 Transfer of Rights
	  	 29. Upon the payment of a claim and if requested by the insurer, the insured shall transfer and assign or request its Affiliate to transfer and assign to
the insurer all right, title and interest in all amounts owed to the insured in respect of the Loss, or any security in respect thereof, up to the amount of the claim paid.

		
	 Recovery Expenses
	  	 30. When an Insurer pays B claim for a Loss, the Insurer and the Insured shall share all external costs and expenses previously approved by that Insurer and
incurred to effect recovery, other than costs or expenses associated with the defense of any set-off or counterclaim by the buyer (which shall be for the account of the Insured) or costs or expenses incurred by the Insured once the amount of the
loss has been fully recovered. The portion of such costs that will be paid by the Insurer shall be limited to the Insurance Percentage applicable to the loss and the Insured shall pay the remainder.

		
	 Reporting and
 Remittance
 of Recoveries
	  	 31. The Insured shall report to the Insurers all amounts received, recovered or realized with respect to any Loss, by the Insured or by any person on behalf of
the Insured. Amounts recovered that are due to the Insurer pursuant to its subrogation rights following the payment of a claim must be promptly remitted to the Insurer In the Contract Currency unless otherwise directed by the Insurer and until
remitted such funds shall be held In trust for the Insurer.

 OTHER CONDITIONS 
  
  

			
	 Agent
	  	 32. Statements made by an agent of the Insured and actions taken by any such agent in respect of the Insured’s dealings with the Insurers or with third
parties, shall be deemed, for purposes of the Policy, to be statements made and actions taken by the Insured and shall be binding on the Insured, and except where the context clearly requires otherwise, all references In the Policy to the
“Insured” including, without limitation, in the exclusions and recoveries provisions, shall be read to mean the Insured-and/or an agent of the Insured. And for greater clarity, any payment by a buyer to an agent of the Insured is deemed to
be a payment to the Insured. A person is an agent of the Insured for purposes of the Policy when that person has been expressly appointed by the Insured as its agent, or when that person’s actions can reasonably be considered to be those of an
agent of the Insured.

  

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	 Insurers’ Access
 to Information
	  	 33. The Insured shall provide the Insurers with all information relating to any matter under this Policy that is in the possession of the Insured or an
Affiliate. The Insurers may. at any time, examine and ,make copies of all letters, communications, accounts or other documents that relate to the Policy, that are In the possession or control of the Insured or an Affiliate. The Insured shall take
all reasonable steps to allow the Insured to obtain any information or to review any document that relates to the Policy and that is in the possession) of any other person.

		
	 Contract of
 Insurance
	  	 34. These General Terms and Conditions and all endorsements hereto, the Coverage Certificate, the Credit Management Schedule, the Country Schedule, the Credit
Approvals (all such documents collectively constituting the “Policy”), and the Application on which the Policy is based. constitute the entire contract of Insurance between the Insurers and the Insured. Except as expressly provided for in
the Policy, any statements. undertakings or agreements between the parties Other than what is contained in this Policy, the Application, or a written agreement entered into between the Insurers and the Insured after the issuance and acceptance of
the Policy, shall not form part of, or. be deemed to be part of, ‘this contract of insurance.

		
	 Notice
	  	 35. Every notice, demand, request, consent. approval, waiver or agreement to be, given or made hereunder shall be in writing and shall be delivered to the other
party by hand, sent by mall, or transmitted by fax, e-mail or other electronic means and shall be deemed to have been given and received, if delivered by hand, upon delivery, if sent by mail, the earlier of actual receipt and seven days after
posting, and it transmitted by fax, e-mail or other electronic means the date of transmission, in each case excluding Saturday. Sunday and any national or statutory holiday when the offices of the receiving party are closed for business. The mailing
address, fax number and e-mail address of the Insurers and the Insured for purposes of the Policy are those specified in the Coverage certificate or such other addresses or fax numbers as to which the Insurers or the Insured may from time to time
notify the other.

		
	 Observance of
 Policy Conditions
	  	 36. The due performance of the Insured’s duties and obligations under the Policy, at the time stipulated for such performance, shall be a condition
precedent to any liability of the Insurers for the payment of a claim. No failure on the part of an Insurer to exercise and no delay in exercising any right under this Policy shall operate as a waiver thereof. Any waiver by an Insurer of the strict
compliance by the Insured with Its duties and obligations under the Policy shall not be deemed to be a waiver of any subsequent failure by the Insured to comply with such duties and obligations.

		
	 Termination
	  	 37. (1) Each party shall have the right to terminate this Policy upon giving the other party 60 days’ prior written notice to that
effect.

		
		  	 (2) An Insurer shall have the right to terminate, this Policy, on 15 days notice to the Insured if the Insured defaults in the due
performance of its duties or obligations under the Policy. Unless such default is cured or remedied by the Insured within such 15 day notice period.

		
		  	 (3) An Insurer shall have the right to terminate this Policy immediately on notice to the Insured if .the Insured, an agent of the
Insured, an Affiliate or an agent of an Affiliate has engaged in or knowingly been party to any action; in relation to any contract of sale insured under the Policy that is prohibited by Canada’s Corruption of Foreign Public Official Act or by
the criminal laws dealing with the bribery of public officials that are applicable In a country in which any such agent or Affiliate is located. .

  

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		  	 (4) When the Policy is terminated, the Insured shall continue to be bound by all of its obligations under the Policy relating to
any claims that may have been paid prior to such termination or that may be paid thereafter.

		
	 Policy not
 Assignable
	  	 38. The ‘Insured shall not assign this Policy or any right, title or Interest herein, without the prior written approval of the
Insurers.

		
	 Good Faith and
 disclosure
	  	 39. Without limiting the operation of any rule of law, this Policy has been Issued on the condition that:

	  	  
 (1) the Insured shall observe
the ulmost good faith at all times;

		
		  	 (2) as at the date of issuance of the Policy and as at the date of issuance of any Credit Approval, the Insured has disclosed to the
Insurers all facts material to the Risks insured: and

		
		  	 (3) the Insured shall promptly disclose to the Insurers all changes material to the Risks insured.

		
	 Severability
	  	 40. If any provision of this Policy or the application of any provision to any person or circumstance Is, to any extent, held to be Invalid or unenforceable, the
remainder of this Policy and the application of such provision to persons or circumstances other than those in relation to which It was held to be invalid or unenforceable, shall not be affected thereby and all other provisions of this Policy shall
be separately valid and enforceable to the fullest extent permitted.

 INTERPRETATION 
  
  

			
		  	 41. The marginal notes and headings In this Policy have been Inserted for convenience of reference only and shall not form part of or be considered In the
interpretation of this Policy. All references to “Section”, “Subsection” and “Paragraph” shall refer to sections, subsections and paragraphs of this Policy. Any reference to a person includes a natural person, a
partnership all a body corporate. Unless the context requires otherwise; the singular shall include the plural and vice versa.

		
	 Definitions
	  	 42. (1) “Affiliate” means a person:

		
		  	 (a)    who has a direct or indirect equity interest in the Insured or a person in whom the
Insured has a direct or indirect equity Interest;

		
		  	 (b)    who is related to the Insured through a common third party’s direct or indirect
equity interest in both that person and the Insured;

		
		  	 (c)    Who, or whose direct or indirect owners, has a family relationship with the Insured or
the Insured’s direct or indirect owners; or

		
		  	 (d)    who has any other kind of relationship with the Insured. Which could give rise to a
concern on the part of a reasonable insurer that the Insured might not behave as a prudent seller with respect to sales to such person, to the detriment of the Insurer;

		
		  	 (2) “CAD” means the lawful currency of Canada;

  

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		  	 (3) Contract Currency” means the currency in which the Gross Invoice value of the goods is contractually required to be paid by the
buyer;

		
		  	 (4) Coverage Certificate” means the document Issued by the Insurers that sets out the specific terms of the insurance coverage applicable to the Insured and
stipulates any conditions of coverage which may amend or add to those established by these General Terms and Conditions;

		
		  	 (5) “Credit Approval” means a notice given by the Insurers to the Insured stating the amount of the Credit Limit for a buyer or group of buyers and
stipulating any specific conditions or changes to the insurance coverage applicable to goods Shipped to that buyer or group of buyers:

		
		  	 (6) Credit Limit” means the maximum amount of Loss that the Insured may sustain in respect of any individual buyer and still obtain the maximum
Insurance Percentage under the Policy;

		
		  	 (7) “Due Date” means the date on which payment under an Eligible Contract is due;

		
		  	 (8) “Eligible Contract” means a contract of sale that is not an Excluded Contract and that:

		
		  	 (a)    complies with any special conditions set out in the Country Schedule for the country
in which the buyer is located;

		
		  	 (b)    provides that all amounts payable by the buyer to the Insured shall be paid on terms
which are within the maximum terms of payment set out in the Country Schedule for the country in Which the buyer is located; and

		
		  	 (c)    complies with the provisions of any Credit Approval Issued fur the
buyer;

		
		  	 (9) “Excluded Contract” means a contract of sale:

		
		  	 (a)    with a federal, provincial, state, territorial,
municipal or other government buyer, unless otherwise approved by the Insurers in writing;
  
 (b)    to be entirely paid by an irrevocable letter of credit or secured by an
irrevocable standby letter of credit, which was in the possession of the Insured at the time the goods were Shipped;
  
 (c)    to be entirely paid to the Insured by a Canadian or US buyer with cash
before the goods are delivered (*cash” means hard currency, or money order, bank draft, credit card or certified cheque):  
  
 (d)    that the Insured is prohibited by law from performing; or
  
 (e)    which the Insurers have advised the Insured in writing is not insured under this Policy;

		
		  	 (10) Gross Invoice Value-means the Invoice value of goods and any Insurance, freight or other handling costs that were incurred by the Insured on behalf of the
buyer at the time the goods were Shipped; and excluding:

		
		  	 (a)    any tax payable by the Insured to a taxing authority that would be reimbursed by the
taxation authority if not paid by the buyer;

		
		  	 (b)    any amount to be paid by an irrevocable letter of credit or secured by an irrevocable
standby letter of credit, which was in the possession of the Insured at the time the goods were Shipped;

  

 Page 13 of 14 
 30-028-Globex-Quebec (1008) 

			
		  	 (c)    any amount paid to the Insured with cash before the goods were Shipped,
(‘cash’ means hard currency, or money order, bank draft, credit card or certified cheque) and any amount secured by the Insured with cash collateral; and

		
		  	 (d)    any post maturity Interest;

		
		  	 (11) “Political Risk” means a Risk described in Subsections 2(4), 2(5), 2(6) or 2(7);

		
		  	 (12) “Shipped” means that goods being sold by the Insured to a buyer have been placed in transit for delivery to a destination specified by the
buyer; and

		
		  	 (13) “USO” means the lawful currency of the United States of America.

  

					
	 EXPORT DEVELOPMENT CANADA
	 		 	 COMPAGNIE FRANÇAISE D’ASSURANCE

		 		 	 POUR LE COMMERCE EXTERIEUR

		 		 	 CANADA BRANCH

			
	 /s/ Pierre Gignac
	 		 	 /s/ Christopher Short

	 Pierre Gignac
	 		 	 Christopher Short

	 Senior Vice-President
	 		 	 Chief Agent

			
	 /s/ Harry Kaunisvlita
	 		 	
	 Harry Kaunisvlita
	 		 	
	 Vice President. Short Term Insurance
	 		 	

  

 Page 14 of 14 
 30-028-Globex-Quebec (1008) 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 LIMITATION OF COVERAGE TO INSOLVENCY AND POLITICAL RISKS 
 This Endorsement forms part of the Policy. 
 Solely with respect to certain contracts of sale entered into by Bowater Mersey Paper Co. ltd. with The Washington Post Co., coverage is provided only for Losses incurred as a result of political risks or
the insolvency of the buyer. 
 Without in any way restricting the application of the terms and conditions of the Policy except
as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such coverage, the Policy is amended as follows: 
  

	 	1.	 With respect to contracts of sale entered into by Bowater Mersey Paper Co. ltd. with The Washington Post Co., the Risks described in Subsections
2(2) and 2(3) and all references to such Risks in the Policy are deleted. 

  

	 	2.	 The Risk of insolvency described in Subsection 2(1) will be covered only if it occurs before the Due Date or within 120 days after the Due Date.

  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613.237.2690 www.edc.ca 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 BOYCOTT 
 This Endorsement forms part of the Policy. 
 The Government of Canada finds
unacceptable certain activities which would, in connection with the provisions of any international economic boycott, require Canadian firms or individuals to engage in certain actions that may have a discriminatory effect, and it will deny its
support and assistance to transactions entered into by those firms and individuals who accept boycott provisions in contravention of government policy. 
 Export Development Canada follows the Government’s policy on boycotts for the transactions that it supports. 
 Coverage is therefore not provided under the Policy for any sales contract that, in connection with the provisions of any international economic boycott: 
  

	 	(1)	 requires the Insured to: 

  

	 	(a)	 engage in discrimination based on the race, national or ethnic origin or religion of any Canadian firm or individual; 

 

	 	(b)	 refuse to purchase from or sell to any Canadian firm or individual; 

  

	 	(c)	 restrict its commercial investments or other economic activities in any country; 

  

	 	(d)	 produce any document (sometimes called a ‘negative certificate of origin’) which says that particular goods or services have not
originated from specific firms or places; or 

  

	 	(e)	 refuse to sell any Canadian goods and services to, or buy any goods or services from any country, except that a buyer may specify that goods

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613-598-2500 Fax 613-237-2690 www.edc.ca 

	 	and	 services of non-Canadian origin that are being provided by the Insured must originate from a particular country; 

 or 
  

	 	(2)	 contains a statement made by the Insured, or requires the Insured to make a statement saying that the Insured does not deal with a named country,
unless it is clear that there is no intention to restrict the Insured’s right to deal with the named country. 

 All other terms and conditions of the Policy remain unchanged. 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 SALES OUT OF CONSIGNMENT INVENTORY OR EXHIBITION STOCK 
 This Endorsement forms part of the Policy. 
 Coverage is provided in respect of goods sold to a buyer after having been delivered to a consignee to be exhibited, held on a consignment basis or held in inventory until sold. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided
and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	1.	 If goods were previously delivered by the Insured to a Consignee, the eventual sale of those goods by the Insured to a buyer (which may be the
Consignee) will be covered by the Policy if the sale occurs between the Coverage Effective Date and the date of termination of the Policy. In such circumstances, goods will be considered to have been Shipped, for purposes of the Policy, when they
are sold. 

  

	 	2.	 The Insured shall declare and pay premium on goods that are delivered to a Consignee on the 20th day of the month following the end of the
Declaration Period in which the sale of the goods occurs. 

  

	 	3.	 “Consignee” means a person to whom the Insured has delivered goods to which the Insured has retained title, to be exhibited, held
on a consignment basis or held in inventory, until the goods are sold to the Insured’s buyer. 

  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613 595 2500 Fax 613 237 2690 www.edc.ca 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 CREDIT LIMIT FOR ILC SALES (CONFIRMED & UNCONFIRMED ILC) 
 This Endorsement forms part of the Policy. 
 The parties have agreed to amend the Policy to provide insurance coverage for sales contracts requiring payment to be made by irrevocable letters of credit (“ILCs”) issued or confirmed by a bank
approved by the Insurers. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy
except as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 “Bank” means a bank which has issued or confirmed an ILC issued to the Insured as the payment mechanism for the Insured’s sales;

 “Bank Approval” means a notice given by the Insurers to the Insured with respect
to a Bank stipulating specific terms and the amount of the Credit Limit for the Bank and any specific conditions or changes to the insurance coverage applicable to Eligible Contracts that require payment by an ILC issued or confirmed by such Bank;
and 
 “Credit Limit” means the maximum amount of Loss that the Insured may sustain to obtain
maximum coverage under the Policy in respect of a Bank for all the Eligible Contracts that require payment by an ILC issued or confirmed by the Bank. 
  

	 	2.	 The definition of Gross Invoice Value is hereby amended by deleting the reference to amounts to be paid by irrevocable letters of credit.

  

	 	3.	 A contract of sale to be entirely paid by an ILC which was in the possession of the Insured at the time the goods were Shipped is an Excluded
Contract if no Bank Approval was issued by the Insurers in respect of the Bank that issued or confirmed the ILC. 

  

	 	4.	 The provision of the Policy providing for a declining Insurance Percentage applicable in certain circumstances is hereby amended by replacing the
references to “buyer” and “Credit Approval” with references to “Bank” and “Bank Approval”, respectively. 

  

	 	5.	 The following risk is added to the Policy as a Risk covered by both EDC 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax
613 237 2690 www.edc.ca 

 and Coface: 
 “failure of the Bank to pay any amount that the Bank is legally obligated to pay to the Insured under the ILC issued as
the payment mechanism for the Eligible Contract;”. 
  

	 	6.	 In order for this Policy to apply to a sale that requires payment by an ILC, the Country Schedule must provide that such coverage applies in the
country where the buyer is located and the Insured must establish a Credit Limit for the Bank by obtaining a Bank Approval. 

  

	 	7.	 The Insurers shall not be liable for the payment of a claim for Loss if: 

  

	 	(a)	 any right, title or interest of the Insured under the Eligible Contract or the ILC has been assigned by the Insured to any person other than the
Insurer, unless the assignment was by way of security only and the assignee has executed and delivered to the Insured a reassignment and release in respect thereof in form and substance satisfactory to the Insurer; or 

 

	 	(b)	 the Insured has not strictly complied with all the terms and conditions of the ILC.” 

  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it
sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as
hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Produits Forestiers La Tuque Inc. 
 240 Site Vallières

 C.P.426 
 La Tuque, PO 
 G9X 3P3 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Produits Forestiers La Tuque Inc.
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 Insured: Abitibi-Consolidated Inc. 
 Policy Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy.

 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below
(referred to in this Endorsement as the Additional Insured) against losses that it sustains. 
 Therefore, without in any way
restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 

 

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	4.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	5.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Produits Forestiers Saguenay Inc. 
 4910 boul Talbot

 Laterriere, PO 
 G7N 1A3 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Produits Forestiers Saguenay Inc.
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 Insured: Abitibi-Consolidated Inc. 
 Policy Number: CG 1. 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy to
the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided and solely for purposes of determining the terms and conditions
of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	4.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	5.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the “Additional Insured”.

 Related Canadian Companies 
 Produits Forestiers Petit Paris Inc. 
 75 chemin Chute des
Passes 
 Saint-Ludger-de-Milot, PQ 
 GOW2BO 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Produits Forestiers Petit Paris Inc.
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 Insured: Abitibi-Consolidated Inc. 
 Policy Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy.

 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below
(referred to in this Endorsement as the Additional Insured) against losses that it sustains. 
 Therefore, without in any way
restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 

 

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Abitibi-LP Engineered Wood Inc 
 900 ch du Lac Hippolyte

 Larouche, PO 
 GOW 1Z0 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Abitibi-LP Engineered Wood Inc
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it
sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as
hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Abitibi-Consolidated Company of Canada 
 1155 Metcalfe St Ste
800 
 Montreal, PO 
 H3B 5H2 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Abitibi-Consolidated Company of Canada
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is
provided in accordance with the provisions of the Policy to the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided
and solely for purposes of determining the terms and conditions of such insurance coverage. the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”). unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured. and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured”.

 Related Canadian Companies 
 Bois d’ingénierie Abitibi-LP II Inc 
 900 ch du
Lac Hippolyte 
 Larouche, PO 
 GOW 1Z0 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Bois d’ingénierie Abitibi-LP II Inc
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it
sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as
hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Produits Forestiers Mauricie S.E.C. 
 2419 Route 155 Sud

 La tuque, PQ 
 G9X 3N8 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Produits Forestiers Mauricie S.E.C.
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy to the Related Canadian Company identified below (referred to in this Endorsement as the Additional Insured) against losses that it
sustains. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as
hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.”

 Related Canadian Companies 
 Donohue Recycling Inc. 
 Allanburg Road 
 Thorold, ON 
 M5A
1A6 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	 Abitibi-Consolidated Inc.
  
	 	
		 	 Donohue Recycling Inc.
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 COVERAGE TO CANADIAN BUYERS INVOLVING SHIPMENTS TO FOREIGN COUNTRIES 

This Endorsement forms part of the Policy. 
 Insurance coverage for sales to buyers located in Canada shall be provided by EDC instead of Coface if the goods are Shipped by the Insured directly outside Canada, although invoiced to the Canadian
buyer. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as
hereinafter expressly provided, and solely for the purpose of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 Notwithstanding the definition of “Domestic Loss”, a loss sustained by the Insured under an Eligible Contract with a buyer located in
Canada shall be considered to be an Export Loss and will be covered by EDC, instead of Coface, if the goods are Shipped by the Insured directly outside Canada. 

  

	 	2.	 The country to which the goods are Shipped must not be a country in which Canadian companies are prohibited by law from dealing.

  

	 	3.	 Declarations for sales described herein shall be made under the “Canada Export” heading of the declaration form, by province of territory
where the buyer is located.” 

  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
	 	

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 5th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 SALES BY FOREIGN SUBSIDIARY - GOODS FROM CANADA OR OFFSHORE 
 This Endorsement forms part of the Policy. 
 Coverage is provided to the Insured in respect of the Insured’s interest in the sales made by its wholly-owned Foreign Subsidiary, as defined below. 
 Therefore, without in, any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly
provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	1.	 The Insured’s insurance coverage and the conditions and limitations of such cover that apply in respect of the sales made by the Insured shall
also apply in respect of the sales made by the Foreign Subsidiary as though, for purposes of the Policy, the Foreign Subsidiary were the Insured. The Insured shall make declarations and pay premium in respect of the sales of the Foreign Subsidiary
on the basis set out in the Policy. All communications with the Insurers with respect to such coverage must be by the Insured, not the Foreign Subsidiary. For greater certainty, the Foreign Subsidiary is not insured under the Policy and has no
rights under the Policy. 

  

	 	2.	 In the event of a claim, the Insured shall cause the Foreign Subsidiary to take all steps necessary or expedient to recover the amount of the Loss,
including, without limitation, at the request of the Insurer: (i) to institute legal proceedings against any person to recover any amounts owed to the Foreign Subsidiary in respect of the Loss, or (ii) to transfer and assign to the Insured
the Foreign Subsidiary’s rights under its contract of sale, thus permitting the Insured to take, if requested by the Insurer, all steps necessary or expedient to recover the amount of the Loss, including: 

  

	 	a)	 to institute legal proceedings against any person to recover any amounts owed in respect of such Loss; 

  

	 	b)	 to provide the Insurer with any authorizations and documentation necessary to permit the Insurer to give instructions on behalf of the Insured, or
to institute legal proceedings in the name of the Insured in respect of the exercise of any legal rights or remedies available to the Insured with respect to the recovery of the Loss, including, without limitation, the granting of a power of
attorney in favour of the Insurer; and 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	c)	 to transfer and assign to the Insurer all right, title and interest (or any part thereof) in all amounts owed in respect of such Loss, or any
security in respect thereof, without giving notice of any such assignment except as may be directed in writing by the Insurer. 

 The Insurer shall not be liable for the payment of a claim for a Loss in respect of such contract of sale if the Insured fails to cause the Foreign Subsidiary to take the steps requested by the Insurer,
as set out above. 
 If an Insurer has paid a claim and the Insured subsequently fails to cause the Foreign
Subsidiary to take: (i) all steps necessary or expedient to recover the amount of the Loss, or (ii) the steps requested by the Insurer to be taken by the Insured to effect recovery, as set out above or if the Insured fails to take, at the
Insurer’s request, the steps described above, the Insured shall forthwith upon the Insurer’s demand repay the claim payment to the Insurer. 
 If the Foreign Subsidiary or the Insured, or any third party on behalf of either of them, recovers any amount in respect of the Loss, the Insured shall pay to the Insurer an amount equivalent to that
proportion of such recovered amount which is equal to the proportion of the Loss that was paid by the Insurer. 
  

	 	3.	 Coverage of the sales of the Foreign Subsidiary is provided on condition that the Foreign Subsidiary is at all times a wholly owned subsidiary of
the Insured. 

 The Insured shall advise the Insurers if, after the date of issuance of this
Endorsement, there is any change to the information provided to the Insurers by the Insured relating to coverage of the sales of the Foreign Subsidiary such as a change in the ownership or location of the Foreign Subsidiary, or a material decrease
in the percentage of goods sold by the Foreign Subsidiary which are manufactured, produced or sourced in Canada. 
  

	 	4.	 The definition of Shipped is deleted in its entirety and replaced with the following: 

 ““Shipped” means that goods being sold by the Foreign Subsidiary to a buyer have been placed in transit for
delivery to a destination specified by the buyer.” 
  

	 	5.	 “Foreign Subsidiary” means the Insured’s wholly-owned subsidiary listed below: 

  

			
	 Foreign Subsidiary
	  	 Address

		
	 Bridgewater Paper Co Ltd
	  	 North Road
 Ellesmere Port,
United Kingdom

  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 30th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured, as defined below, an affiliate of the Insured, against losses that such Additional Insured
sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and
conditions of the Policy except as hereinafter expressly provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the
Additional Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the
Additional Insured’s contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 Contracts for the sale of goods to a buyer located in Canada and which provide for the goods to be placed in transit from a location outside Canada
for delivery to a destination in Canada shall be Excluded Contracts. 

  

	 	3.	 The Insured shall. advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional
Insured which are manufactured by the Insured. 

  

	 	4.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	5.	 All communications with the Insurers with respect to such coverage must be by

  

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	 
the Insured, not the Additional Insured. 

  

	 	6.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	7.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	8.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Abitibi-Consolidated Corporation 
 340 N Sam Houston Parkway E Ste 105 
 Houston, TX 

United States of America 
 77060 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	  
 Abitibi-Consolidated Inc.
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: December 30th, 2008 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured, as defined below, an affiliate of the Insured, against losses that such Additional Insured sustains with
respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of
the Policy except as hereinafter expressly provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 Contracts for the sale of goods to a buyer located in Canada and which provide for the goods to be placed in transit from a location outside Canada
for delivery to a destination in Canada shall be Excluded Contracts. 

  

	 	3.	 The Insured shall advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	4.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	5.	 All communications with the Insurers with respect to such coverage must be by

  

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	 
the Insured, not the Additional Insured. 

  

	 	6.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	7.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	8.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Abitibi Consolidated Sales Corporation 
 4 Gannett Drive 
 White Plains, NY 
 United States of America 
 10604 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	  
 Abitibi-Consolidated Inc.
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 January 28, 2009 
 Mr. Roland Fanning 
 Director of Credit Operations

 Abitibi-Consolidated Inc. 
 800-1155, rue Metcalfe 
 Montreal, PO, H3B5H2 
 Dear Mr. Fanning: 
 Re: Policy No. CG 122818 
 Based on ongoing negotiations with Wachovia’s counsel, please find attached the
following endorsements which are being re-issued with revised wording and which cancel and replace the endorsements of the same name issued on December 5, 2008: 
  

	 	1.	 Additional Canadian insured (endorsements for both Bowater Canadian Forest Products Inc as well as Bowater Mersey Paper Company Limited)

  

	 	2.	 Additional Insured - Foreign Company (endorsements for Bowater Nuway Mid-States Inc., Bowater-Korea CO. Ltd., Bowater America Inc., Bowater Alabama
LLC., Bowater Newsprint South Operations LLC., and Bowater Incorporated) 

  

	 	3.	 Maximum Liability 

  

	 	4.	 Assignment of Policy By way of Security 

 Additionally, per negotiations with Wachovia’s counsel, please find attached two new endorsements entitled 
  

	 	A.	 Bowater Rights and 

  

	 	B.	 Claim Payment in respect of Bowater Entities 

 Should you have any questions, please do not hesitate to contact me. 
 Yours
truly, 
  

	
	  

	 Ryan Smith

	 Underwriter

	 Resources

	 Telephone: 1-866-749-5824

	 Fax: 613-597-8830
 rsmith@edc.ca

  

			
	 C.C.:
	  	 Nigel Kilvington, Citibank, N.A, London Branch, as Agent for Eureka Securitisation Pic and Citibank NA

		  	 Global Securitization, Citibank, N.A.

		  	 Andrew Leonard, Marsh Canada Limited

		  	 Bank of Nova Scotia, Corporate Banking Loan Syndication

		  	 Joye Lynn, Wachovia Bank National Association

		  	 Mark Hedrick, Wachovia Bank National Association

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613.237.2690 www.edc.ca 
 Canada 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number; CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (Shipments) 
 ASSIGNMENT OF POLICY BY WAY OF SECURITY 
 This Endorsement forms part of the Policy and cancels and replaces any ASSIGNMENT OF POLICY BY WAY OF SECURITY Endorsement which may have
previously been issued. 
 WHEREAS the Insurers have agreed to provide coverage under the Policy for certain Bowater
entities identified in the attached Schedule A, which may be amended from time to time (together, the “Bowater Entities” and, individually, a “Bowater Entity”) against losses that each Bowater Entity sustains with respect to its
contracts of sale; 
 AND WHEREAS the Insured has advised the Insurers that effective May 31, 2006, each Bowater
Entity has assigned its rights, title and interest in, to and under the Policy to either of The Bank of Nova Scotia or Wachovia Bank, National Association (together, and together with any of their respective successors or assigns that are consented
to in writing by the Insurers, the “Financial Institutions” and, individually, a “Financial Institution”); including, without limitation, all claim payments due, and to become due, in respect of such Bowater Entity under the
Policy (each an “Assignment”), as continuing collateral security for all present and future obligations of it to the relevant Financial Institution and has requested the Insurers’ approval of the Assignment. 
 AND WHEREAS the Insurers consent to the Assignment on the terms set out in this Endorsement; 
 THEREFORE, without in any way affecting the application of the terms and conditions of the Policy except as hereinafter expressly
provided the Policy is amended as follows: 
  

	 	1.	 Subject to the terms hereof, the Insurers approve the Assignment of the Policy by each Bowater Entity to the applicable Financial Institution.

  

	 	2.	 Solely in relation to a Loss sustained under the Policy in respect of Bowater Canadian Forest Products Inc. (“BCFPI”), The Bank of Nova
Scotia and. with the Insurers’ prior written consent, its successors or assigns, shall be entitled under the Policy to: (i) file a claim, and (ii) receive a claim payment in respect of BCFPI under the Policy. In relation to any Loss
sustained under the Policy in respect of a Bowater Entity, other than BCFPI, Wachovia Bank, National Association and, with the Insurers’ prior written consent, its successors or assigns, shall be entitled under the Policy to: (i) file a
claim, and (ii) receive a claim payment in respect of such Bowater Entity under the Policy. In either case, each Financial Institution shall only be entitled to tile a claim, and the Insurers shall only be required to make a claim payment to
the relevant Financial Institution upon receipt by the Insurers of written notice from that Financial Institution requesting that the Insurers pay any claim due under the Policy in respect of the applicable Bowater Entity to that Financial
Institution as of the date of receipt of such notice by the Insurers. 

 151 O’Connor, Ottawa, ON Canada
K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	2A.	 The Insurers’ consent, referred to in the preamble of this Endorsement and paragraph 2 above shall not be unreasonably withheld. The Insured
and the Financial Institutions acknowledge and agree that the Insurers may withhold their consent, and shall be deemed to be acting reasonably, if such consent is withheld due to any applicable law, act, regulation, order, directive or decree of a
Governmental Authority, policy of EDC or a Governmental Authority or legal process. For purposes of this section, “Governmental Authority” means the government of any nation or any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality. regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

  

	 	3.	 Pursuant to the Policy, the due performance of the Insured’s and each Bowater Entity’s duties and obligations under the Policy, at the
time stipulated for such performance, is a condition precedent to any liability of the Insurers for the payment of a claim. Accordingly, as a precondition of the Insurer paying any claim in respect of a Bowater Entity to a Financial Institution, the
duties and obligations of the Insured and each Bowater Entity, to the same extent as set out in the Policy, must be performed by the Insured, each Bowater Entity or a Financial Institution or another person on behalf of the Insured, the Bowater
Entity or the Financial Institution, including, without limitation, all duties and obligations with respect to recoveries. 

  

	 	4.	 Upon the Insurer making a claim payment in respect of a Bowater Entity to a Bowater Entity or a Financial Institution, the Bowater Entity or
relevant Financial Institution shall execute and deliver to the Insurer a re-assignment and release of the Eligible Contracts in respect thereof, failing which, the Insurer shall not be liable to pay the claim. 

  

	 	5.	 The Insured’s and each Bowater Entity’s obligations in Section 25 of the Policy shall continue to apply to any claim payment made to
a Financial Institution as though such claim was paid to the Insured. 

  

	 	6.	 Nothing contained herein shall be construed or interpreted in any way to: 

  

	 	(a)	 relieve the Insured or any Bowater Entity from any duty, obligation or liability it may have at any time and from time to time under the Policy,
including, without limitation, the Insured’s or a Bowater Entity’s loss mitigation and recovery obligations; 

  

	 	(b)	 require the Insurers, the Insured or a Bowater Entity to seek the approval of a Financial Institution to change or amend any term or condition of
the Policy; or 

  

	 	(c)	 give to the Financial Institutions any more rights or privileges than those to which the applicable Bowater Entity is entitled under the Policy.

  

	 	7.	 The Insurers will: (i) send directly to the Financial Institutions copies of all documentation and correspondence sent to the Insured or any
Bowater Entity by the Insurers after the date of this Agreement, and (ii) communicate with the Financial Institutions, relative to the Policy. 

  

	 	8.	 Upon the release or termination of the Assignment by the relevant Financial Institution, that Financial Institution shall promptly deliver to the
Insurers a written confirmation and release which shall state that the Assignment and its security interests in the Policy have been irrevocably released and terminated and that it has no further right, title or interest in the Policy.

  

	 	9.	 The Insurers hereby consent to the. transfer (by assignment, operation of law or otherwise) of the rights and privileges granted by this Endorsement
to Wachovia Bank, National Association to Wells Fargo Bank, National Association. or any other successor to Wachovia Bank, National Association arising from the combination of Wachovia Bank, National Association and its affiliates with Wells Fargo
Bank, National Association and its affiliates. 

 FINANCIAL INSTITUTIONS: 
 Wachovia Bank, National Association, as Administrative Agent 
 Address for notices: 
 Wachovia Bank, National Association, 
 Atlantic Station 171 17th Street NW, 4th Floor 
 GA4527 
 Atlanta, GA 30363 
 Attention: Joye C. Lynn 
 Telecopier: 1-404-214-7299 
 With copy to: 
 Wachovia Bank, National Association 
 One Wachovia Center 
 301 South College
Street 
 Mall Code: 0537 
 Charlotte, North Carolina 28288 
 Attention:
Mark Hedrick 
 Telecopier: 1-704-383-6249 
 The Bank of Nova Scotia, as Administrative Agent 
 Address
for notices: 
 The Bank of Nova Scotia 
 40 King Street West 
 Scotia Plaza, 62nd
Floor 
 Toronto Ontario 
 M5W 2X6 
 Attention: Corporate Banking Loan
Syndication 
 Telecopier: 1-416-866-3329 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
  
	 	
		 	  
 ABITIBI-CONSOLIDATED INC.
  
	 	
		 	  
 WACHOVIA BANK NATIONAL ASSOCIATION,
 AS ADMINISTRATIVE AGENT
  
	 	
		 	  
 THE BANK OF NOVA SCOTIA, AS
 ADMINISTRATIVE AGENT
  
	 	

 FINANCIAL INSTITUTIONS: 
 Wachovia Bank, National Association, as Administrative Agent 
 Address for notices: 
 Wachovia Bank, National Association, 
 Atlantic Station 171 17th Street NW, 4th Floor 
 GA4527 
 Atlanta, GA 30363 
 Attention: Joye C. Lynn 
 Telecopier: 1-404-214-7299 
 With copy to: 
 Wachovia Bank, National Association 
 One Wachovia Center 
 301 South College
Street 
 Mall Code: 0537 
 Charlotte, North Carolina 28288 
 Attention:
Mark Hedrick 
 Telecopier: 1-704-383-6249 
 The Bank of Nova Scotia, as Administrative Agent 
 Address
for notices: 
 The Bank of Nova Scotia 
 40 King Street West 
 Scotia Plaza, 62nd
Floor 
 Toronto Ontario 
 M5W 2X6 
 Attention: Corporate Banking Loan
Syndication 
 Telecopier: 1-416-866-3329 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
  
	 	
		 	  
 ABITIBI-CONSOLIDATED INC.
  
	 	
		 	  
 WACHOVIA BANK NATIONAL ASSOCIATION,
 AS ADMINISTRATIVE AGENT
  
	 	
		 	  
 THE BANK OF NOVA SCOTIA, AS
 ADMINISTRATIVE AGENT
  
	 	

 SCHEDULE “A” 
 This Schedule A, issued the 28th day of January, 2009, is attached to and forms part of Assignment of Policy by Way of Security Endorsement which forms part of Policy No. CG 1 22818
issued to Abitibi-Consolidated Inc. and replaces any Schedule A previously issued. 
 Bowater America Inc. 
 Bowater Canadian Forest Products Inc. 
 Bowater Alabama LLC 
 Bowater Newsprint South Operations LLC 
 Bowater Nuway Mid-States Inc. 
 Bowater Incorporated 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have
previously been issued in respect of the affiliate of the Insured .identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly
provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured. 

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement. 

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of’ the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Bowater Incorporated 
 55 East Camperdown Way 
 Greenville, South Carolina

 United States of America 
 29602 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
	 	
		 	  
 ABITIBI-CONSOLIDATED INC.
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 122818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have
previously been issued in respect of the affiliate of the Insured identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly
provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured. 

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional insured (Dr its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application. the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement. 

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.”

 Additional Insured 
 Bowater Newsprint South Operations LLC 
 100 Papermill Road 
 Grenada, MS 
 United States of America 
 38901 
  

					
		 	 EXPORT DEVELOPMENT CANADA,
	 	
		 	 for the Insurers
  
  
	 	
		 	  
 ABITIBI-CONSOLIDATED
  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have
previously been issued in respect of the affiliate of the Insured identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly
provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if. after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured. 

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured cease s to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required. by the Insurer’ to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement. 

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Bowater Alabama LLC 
 17589 Plant Road 
 Coosa Pines, AL 
 United States of America 
 35044 
  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	 ABITIBI-BOWATER INC.
	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2908 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have
previously been issued in respect of the affiliate of the Insured identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly
provided, and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale.

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured.

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the. Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be Subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BGFPI Endorsement. 

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Bowater America Inc 
 5300 Cureton Ferry Road 
 PO Box 7 
 Catawba, SC 
 United States of America 
 29704 
  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have previously been issued in respect of the
affiliate of the Insured identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is
provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided, and solely for purposes of determining
the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts 01sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if. after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to’ deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured. 

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement.

  

	 	9.	 The Policy shall’ be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the; courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Bowater Korea Ltd. 
 Press Center 11 F 
 25 Taepyeongno 1-ga Jung-Gu 

Seoul
 Republic
of Korea 
 100-745 
  

					
		 	EXPORT DEVELOPMENT CANADA,	 	
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	ABITIBI CONSOLIDATED INC.	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL INSURED - FOREIGN COMPANY 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL INSURED FOREIGN COMPANY endorsement which may have previously been issued in respect of the
affiliate of the Insured identified below (and referred to in this Endorsement as the Additional Insured). 
 Coverage is
provided in accordance with the provisions of the Policy for the Additional Insured against losses that such Additional Insured sustains with respect to its contracts of sale. 
 Therefore, without in any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided, and solely for purposes of determining
the terms and conditions of such insurance coverage, the Policy is amended as follows: 
  

	 	“1.	 The conditions and limitations of cover that apply in respect of the Insured’s contracts of sale shall also apply in respect of the Additional
Insured’s contracts of sale. The Insurers shall not be liable for the payment of any claim for Loss sustained by the Insured or the Additional Insured unless the Insured has declared and paid premium on all of the Additional Insured’s
contracts of sale as well as all of the Insured’s contracts of sale. 

  

	 	2.	 The Insured shall advise the Insurers if, after the date of issuance of this Endorsement, there is any change to the information provided to the
Insurers by the Insured relating to coverage of the sales of the Additional Insured such as a change in the ownership or location of the Additional Insured or a material decrease in the percentage of goods sold by the Additional Insured which are
manufactured by the Insured. 

  

	 	3.	 The Insured has advised the Insurers that the Additional Insured has appointed the Insured as its agent to obtain insurance in respect of its
contracts of sale and to deal with the Insurers on its behalf in all matters relating to this Policy and any claim for Loss hereunder, including to pay premiums and to receive from the Insurers any claim payment to be made in respect of the
Additional Insured’s contracts of sale. 

  

	 	4.	 All communications with the Insurers with respect to such coverage must be by the Insured, not the Additional Insured. 

151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 If the Insured ceases to act as agent for the Additional Insured for purposes of the Policy, the Insured shall advise EDC forthwith. If the Insured
ceases to act as agent for the Additional Insured, the Insurers shall have the right to terminate coverage under the Policy with respect to the Additional Insured upon giving the Insured sixty (60) days’ notice.

  

	 	6.	 The premium to be paid in respect of the Additional Insured’s contracts of sale is exclusive of any tax which may be payable in respect of the
insurance by the Additional Insured (or its agent) in the Additional Insured’s country. 

  

	 	7.	 When submitting a claim application. the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer’ to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	8.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded, by, the terms and
conditions of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement.

  

	 	9.	 The Policy shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
therein. Any legal proceeding with respect to the Policy shall be brought in the courts of the Province of Ontario, and any insured party as a condition of receiving the benefit of the insurance coverage provided under this Policy consents and
attorns to the jurisdiction of the courts of the Province of Ontario in all matters in respect of the Policy.” 

 Additional Insured 
 Bowater Nuway Mid-States Inc. 
 4400 U.S. Highway 51 North 
 Covington, Tennessee

 United States of America 
 38019

  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL CANADIAN INSURED endorsement which may have previously been issued in respect of the Related
Canadian Company (referred to in this Endorsement as the Additional Insured) identified below. 
 Coverage is provided in
accordance with the provisions of the Policy to the Additional Insured against losses that it sustains. 
 Therefore, without in
any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows:

  

	 	“1.	 The conditions and limitations of cover that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable for
the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless all the
sales contracts of the Insured and the Additional Insureds are declared in accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

  

	 	3.	 When submitting a claim application, the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement.” 

 Related Canadian Company 
 Bowater Mersey Paper Company Limited 
 3691 Highway 3 
 Liverpool, NS 
 BOT 1KO 
  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	
		
		 	Bowater Mersey Paper Company Limited
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 ADDITIONAL CANADIAN INSURED 
 This Endorsement forms part of the Policy. It cancels and replaces any ADDITIONAL CANADIAN INSURED endorsement which ‘may have previously been issued in respect of the Related
Canadian Company (referred to in this Endorsement as the Additional Insured) identified below. 
 Coverage is provided in
accordance with the provisions of the Policy to the Additional Insured against losses that it sustains. 
 Therefore, without in
any way restricting the application of the terms and conditions of the Policy except as hereinafter expressly provided and solely for purposes of determining the terms and conditions of such insurance coverage, the Policy is amended as follows:

  

	 	“1.	 The conditions and limitations of covet that apply to the Insured shall also apply to the Additional Insured. The Insurers shall not be liable
for’ the payment of any claim for Loss sustained by the Insured or any Additional Insured referred to in this Endorsement or in any Additional Canadian Insured Endorsement issued under the Policy (the “Additional Insureds”), unless
all the sales contracts of the Insured and the Additional Insureds are declared in” accordance with the terms of the Policy. 

  

	 	2.	 The undersigned Additional Insured hereby appoints the Insured as its true and lawful attorney to deal with the Insurers on its behalf in all
matters relating to this Policy and any claim for Loss hereunder, including to receive from the Insurers any claim payment to be made to the Additional Insured, and the Insured hereby accepts such appointment. 

  

	 	3.	 When submitting a claim application. the Insured must provide the Insurer with a signed copy of a declaration form provided by the Insurer in which
the Additional Insured has made the declaration required by the Insurer to the effect that the Additional Insured has not engaged in activities prohibited by criminal laws dealing with corruption or the bribery of public officials.

  

	 	4.	 All communications with the Insurers with respect to such coverage shall be with the Insured, not the Additional Insured.

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	5.	 The terms and conditions of this Endorsement are and shall be subject to and, in the event of inconsistency, superseded by, the terms and conditions
of the Bowater Rights Endorsement and the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement.” 

 Rebated Canadian Company 
 Bowater Canadian Forest Products Inc. 
 1155, Metcalfe Street, Suite 100 
 Montreal, Quebec 
 H3B 5H2 
  

					
		 	EXPORT DEVELOPMENT CANADA,	 	
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	
			
		 	 Bowater Canadian Forest Products Inc.
	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 BOWATER RIGHTS 
 This Endorsement forms part of the Policy. 
 Without in any way affecting the
application of the terms and. conditions of the Policy except as hereinafter expressly provided, the Policy is amended as follows: 
  

	 	1.	 The prior written consent of Bowater Incorporated shall be required in respect of any amendments, supplements or modifications to the Policy for
which, pursuant to the terms and conditions of the Policy, the consent of the Insured is required. 

  

	 	2.	 If the Insured fails to perform and carry out its obligations and duties pursuant to terms and conditions of the Policy, Bowater Incorporated, or
its designee, provided that such designee is acceptable to the Insurers, in their sale and absolute discretion, shall be entitled to perform such obligations and duties on behalf of the Insured. The Insurers hereby acknowledge and agree that for
purposes of this Section 2, Wachovia Bank, National Association and The Bank of Nova Scotia are acceptable designees. 

  

	 	3.	 Section 37(1) of the Policy is hereby deleted and replaced with the following: 

 “Each party shall have the right to terminate this Policy upon giving the other party 60 days’ prior written notice
to that effect, provided that, the Insured may not terminate this Policy pursuant to this Section 37(1), without the prior written consent of Bowater Incorporated.” 
 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax
613 237 2690 www.edc.ca 

	 	4.	 The terms and conditions of this Endorsement shall supersede any contrary term or condition of any Additional Canadian Insured or Additional Insured
-Foreign Company endorsement and shall be subject to the Assignment of Policy by Way of Security Endorsement. 

  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 CLAIM PAYMENT IN RESPECT OF BOWATER ENTITIES AND BCFPI 
 This Endorsement forms part of the Policy. 
 Without in any way affecting the application of the terms and conditions of the Policy except as hereinafter expressly provided, the Policy is amended as follows: 
  

	 	1.	 Solely in relation’ to a Loss sustained under the Policy in respect of Bowater Canadian Forest Products Inc. (“BCFPI”), BCFPI shall,
without any consent or further action by the Insured, be exclusively entitled under the Policy to: (i) file a claim, and (ii) receive a claim payment. 

  

	 	2.	 Solely in relation to a Loss sustained under the Policy in respect of a Bowater Entity identified in the Attached Schedule “A”, which may
be amended from time to time, Bowater Incorporated shall, without any consent or further action by the Insured, be exclusively, entitled under the Policy to: (i) file a claim, and (ii) receive a claim payment. 

 

	 	3.	 If the Insurers determine that a claim is payable to BCFPI or a Bowater Entity, payment will be sent to BCFPI or Bowater Incorporated, as
applicable, by cheque made payable to BCFPI or Bowater Incorporated, as applicable, and in either case, to the following address: 

 1155 Metcalfe Street, Suite 800 
 Montreat, Quebec 
 H3B 5H2 Canada 
 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690
www.edc.ca 

	 	4.	 The terms and conditions of this Endorsement shall supersede any contrary term or condition of any Additional Canadian Insured or Additional Insured
- Foreign Company endorsement and shall be subject to the Assignment of Policy by Way of Security Endorsement. 

  

					
		 	EXPORT DEVELOPMENT CANADA,
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	

 SCHEDULE A 
 This Schedule A, issued the 28th day of January, 2009, is attached to and forms part of the Claim Payment in Respect of Bowater Entities and BCFPI Endorsement which forms part of Policy No. CG 1 22818
issued to Abitibi-Consolidated Inc. and replaces any Schedule A previously issued. 
 Bowater Entities: 
 Bowater Incorporated 
 Bowater America Inc.

 Bowater Mersey Paper Co. Ltd. 
 Bowater Alabama LLC 
 Bowater Newsprint South Operations LLC 
 Bowater Nuway Mid-States Inc. 
 Bowater Korea Ltd. 

 EDC 
 Coface 
  

			
	 Export
	  	 Exportation et

	 Development
	  	 développement

	 Canada
	  	 Canada

 Issued: January 28th, 2009 
 Effective Date: September 1st, 2008 
 Insured: Abitibi-Consolidated Inc. 
 Policy
Number: CG 1 22818 
 ENDORSEMENT 
 ACCOUNTS RECEIVABLE POLICY (SHIPMENTS) 
 MAXIMUM LIABILITY AMOUNTS 
 This Endorsement forms part of the Policy. It cancels and replaces any Maximum Liability Amounts Endorsement which may have been previously issued. 
 Without in any way affecting the application of the terms and conditions of the Policy except as hereinafter expressly provided, the Policy
is amended as follows: 
  

	 	1.	 For purposes of this Endorsement, “Affiliate of Abitibi” means an affiliate of Abitibi-Consolidated Inc. identified in the attached
Schedule A, which may be amended from time to time. 

  

	 	2.	 For purposes of this Endorsement, “Affiliate of Bowater” means an affiliate of Bowater Incorporated identified in the attached Schedule A,
which may be amended from time to time. 

  

	 	3.	 Notwithstanding (i) EDC’s Maximum Liability Amount and Coface’s Maximum Liability Amount, in each case, as set out in the Coverage
Certificate, and (ii) the total amount of all Credit Limits, 

  

	 	(a)	 the amount of EDC’s maximum liability for all Export Losses in respect of which Abitibi-Consolidated Inc. “Abitibi”) or an Affiliate
of Abitibi, as applicable, becomes entitled to receive claim payments in each Policy Period, is limited to USD 160,000,000; 

  

	 	(b)	 the amount of EDC’s maximum liability for all Losses sustained by Bowater Incorporated (“Bowater”) or an Affiliate of Bowater under
Eligible Contracts with buyers located in the United States of America in respect of which Bowater or an Affiliate of Bowater, as applicable, becomes entitled to receive claim payments in each Policy Period, is limited to USD 85.000,000;

  

	 	(c)	 the amount of EDC’s maximum liability for all Losses sustained by Bowater or an Affiliate of Bowater under Eligible Contracts with buyers
located in countries listed on the Country Schedule, excluding Canada and the United States of America, in respect of which Bowater or an Affiliate of Bowater, as applicable, becomes entitled to receive claim payments in each Policy Period, is
limited to USD 75,000,000; 

 151 O’Connor, Ottawa, ON Canada K1A 1K3 
 613.598.2500 Fax 613 237 2690 www.edc.ca 

	 	(d)	 the amount of Coface’s maximum liability for all Domestic Losses in respect of which Abitibi or an Affiliate of Abitibi, as applicable, becomes
entitled to receive claim payments in each Policy Period, is limited to USD 32,000,000; and 

  

	 	(e)	 the amount of Coface’s maximum liability for all Domestic Losses in respect of which Bowater or an Affiliate of Bowater, as applicable, becomes
entitled to receive claim payments in each Policy Period, is limited to USD 18,000,000. 

  

					
		 	EXPORT DEVELOPMENT CANADA,	 	
		 	 for the Insurers
	 	
			
		 	  
	 	
			
		 	  
	 	
			
		 	ABITIBI-CONSOLIDATED INC.	 	
			
		 	  
	 	

 SCHEDULE A 
 This Schedule A, issued the 28th day of January, 2009, is attached to and forms part of Maximum Liability Amounts Endorsement which forms part of Policy No. CG 1 22818 issued to Abitibi-Consolidated Inc.
and replaces any Schedule A previously issued. 
 Affiliates of Abitibi: 
 Abitibi Consolidated Sales Corporation 
 Bridgewater Paper Company Limited 
 Abitibi-Consolidated Company of Canada 
 Produits
Forestiers Saguenay Inc. 
 Produits Forestiers Petit Paris Inc. 
 Produits Forestiers La Tuque Inc. 
 Bois d’ingénierie Abitibi-LP Inc. 
 Bois d’ingénierie Abitibi-LP II Inc. 
 Produits Forestiers Mauricie SEC. 
 Donohue Recycling Inc. 
 Abitibi-Consolidated Corp. 
 Affiliates of Bowater: 
 Bowater America Inc. 
 Bowater Canadian Forest
Products Inc. 
 Bowater Mersey Paper Co. Ltd. 
 Bowater Alabama LLC 
 Bowater Newsprint South Operations LLC 
 Bowater Nuway Mid-States Inc. 
 Bowater Korea Ltd. 

 ANNEX L 
 Form of Notice of Change of Address 
 FORM OF NOTICE OF CHANGE OF ADDRESS 

  

			
	TO:	  	 CITIBANK, N.A., LONDON BRANCH (the “Agent”)
 Citigroup Centre
 33
Canada Square, 5th Floor
 Canary Wharf, London
 England E14 5LB
 Attention: Nigel Kilvington
 Facsimile: 44-207- 986-4705
  
 With a copy to:
 450 Mamaroneck Avenue
 Harrison, N.Y. 10528
 Attention: Global Securitization
 Facsimile No.: 914- 899-7890

		
	 RE:
	  	 Amended and Restated Receivables Purchase Agreement dated as of January 29, 2008 between, inter alia, Abitibi-Consolidated Inc.,
the undersigned, as seller, and the Agent, as agent (as amended, the “RPA”)

  
  
 Pursuant to the requirements of Section 10.01(e) of the RPA, the undersigned hereby gives you notice that, on
[insert Change of Address Effective Date], each of the undersigned and ACSC will change the address of its principal place of business, chief executive office and location of Receivables (as defined in the RPA) records as disclosed in
Schedules III and IV attached hereto, which Schedules III and IV shall replace the current Schedules III and IV to the RPA on the effective date of such change of address. 
 signature page follows 
  

 L-1 

 DATED this      day of
                    ,         . 
  

			
	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP.

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

		
	 Per:
	 	  

		 	 Name:

		 	 Title:

 ANNEX N 
 Form of Certificate Regarding Adverse Claims 
 ABITIBI-CONSOLIDATED INC. 

 OFFICER’S CERTIFICATE 
  

	TO:	 ABITIBI-CONSOLIDATED U.S. FUNDING CORP. 

 CITIBANK, N.A., as agent 
 BARCLAYS CAPITAL
INC., as syndication agent 
 THE CIT GROUP / BUSINESS CREDIT, INC., as documentation agent 
  

	RE:	 Second Amended and Restated Receivables Purchase Agreement dated as of June 16, 2009 among Abitibi-Consolidated U.S. Funding Corp.
(“ACUSFC”), as seller, the banks party thereto, as banks, Citibank, N.A., as agent, Barclays Capital Inc., as syndication agent, The CIT Group / Business Credit, Inc., as documentation agent, Abitibi Consolidated Sales Corporation
(“ACSC”), as servicer and originator, and Abitibi-Consolidated Inc. (the “Corporation”), as subservicer and originator (the “Second Amended and Restated Receivables Purchase Agreement”)

 I, —, — of the
Corporation hereby certify in that capacity and not personally, as follows: 
 1. I have made or caused to be made such
examinations or investigations as are, in my opinion, necessary to make the statements in this Certificate. 
 2.Capitalized
terms used but not defined herein shall have the meanings attributed thereto in the Second Amended and Restated Receivables Purchase Agreement. 
 3. The registrations described in Schedule A do not, and could not be relied upon by the secured parties thereunder to create, perfect, protect or preserve any Adverse Claim in the Receivables or Related
Security. 
 4. The name “Stone-Consolidated Inc.” has never been used by the Corporation or any of its predecessors. 
 [signature page follows] 
 N-1 
  

 DATED this      day of June, 2009. 
  

			
	 By:
	 	  

		 	 Name: —

		 	 Title: —

 Schedule A - Registrations 

 SCHEDULE A 
 REGISTRATIONS 
 [To be completed]

 EXHIBIT A-1 
 Form of Canadian Amended Order 
 SUPERIOR COURT

 CANADA 
 PROVINCE OF QUEBEC

 DISTRICT OF MONTREAL 
 No:
500-11-036133-094 
 DATE: JUNE 15, 2009  
  
  
 PRESENT: THE HONOURABLE MR.
JUSTICE CLÉMENT GASCON, J.S.C. 
  
  
 IN THE MATTER OF THE PLAN OF COMPROMISE OR ARRANGEMENT OF: 
 ABITIBIBOWA TER INC. 
 And 
 ABITIBI-CONSOLIDATED INC. 
 And 
 BOWATER CANADIAN HOLDINGS INC. 
 And

 The other Petitioners listed on Schedules “A”, “B” and “C” 
 Petitioners 
 And

 ERNST & YOUNG INC. 
 Monitor 
  
  
 JUDGMENT ON MOTION FOR A REPLACEMENT SECURITIZATION FACILITY 
 (# 105) 
  
  
 [1] CONSIDERING the
Petitioners’ Motion for an Order Authorizing a Replacement Securitization Facility and Amending the Initial Order, as well as the Exhibits and Affidavit in support thereof; 
 [2] CONSIDERING the Sixth Report of the Monitor (May 21, 2009) and the Supplemental Sixth Report of the Monitor (June 12, 2009); 
 EXHIBIT A-1-1 

 [3] CONSIDERING that, of all the stakeholders concerned, only The Ad Hoc Committee of
the Senior Secured Noteholders contest the Motion, the whole for reasons this Court considers insufficient and unjustified under the circumstances; 
 [4] CONSIDERING that the Court is of the view that the other representations made at hearing by some of the other stakeholders’ Counsel do not justify modifying the terms of the Order sought
in respect of the Amended Securitization Program Agreements; 
 [5] CONSIDERING the Order of this Court dated
May 26, 2009 expiring today and the necessity to issue this Judgment forthwith, with the understanding that the Court will issue additional brief reasons by June 19, 2009, at the latest, to form an integral part of this Judgment;

 [6] CONSIDERING the representations made at hearing by Counsel; 
 FOR THESE REASONS, THE COURT: 
 [7] GRANTS this Motion for an Order Authorizing a Replacement Securitization Facility and Amending the Initial Order (the “Motion”). 
 [8] FURTHER AMEINDS AND RESTATES the Initial Order issued by this Court in this matter on April 17, 2009, as amended, by replacing paragraphs 29 to 45 thereof with the
following: 
 Securitization Program 
 [29] ORDERS that ACI is authorized and empowered to enter into an amended and restated guaranteed receivables
purchase program (the “Amended and Restated Receivables Purchase Program”) and enter into the Amended Securitization Program Agreements (as defined in paragraph 30 hereto), including the following, and the Amended Securitization
Program Agreements are hereby expressly ratified and approved: 
  

	 	a)	 an Amended and Restated Receivables Purchase Agreement (the “ARRPA”), substantially in accordance with the term sheet (the
“Term Sheet”) attached to that certain engagement letter (the “Citibank Engagement Letter”) dated May 18, 2009, by and between Citibank N.A. (“Citibank”), ACI and Abitibi-Consolidated U.S.
Funding Corp. (“ACI Funding”) as well as to that certain engagement letter (the “Barclays Engagement Letter”) dated May 18, 2009, by and between Barclays Capital Inc. (“Barclays”), ACI and ACI
Funding, which said ARRPA shall amend and restate that certain Amended and Restated Receivables Purchase Agreement, dated as of January 31, 2008 (as heretofore amended, the “Existing RPA”), Exhibit R-17 in support of the
Petition, among ACI Funding, Eureka Securitisation, pic (“Eureka”), Citibank,

	 	 
Citibank, N.A., London Branch (along with any successor thereto, the “Agent”), ACI, in its capacity as Subservicer and an Originator, and Abitibi-Consolidated Sales Corporation
(“ACSC”), in its capacity as Servicer and an Originator; 

  

	 	b)	 an Amended and Restated purchase and Contribution Agreement (the “ARPCA”), which said ARPCA shall amend and restate that certain
Amended and Restated Purchase and Contribution Agreement, dated as of January 31, 2008 (as heretofore amended, the “Existing PCA”), Exhibit R.-16 in support of the Petition, among ACI and ACSC as Sellers and ACI Funding as
Purchaser in order to make certain changes to the Existing PCA in connection with the entry into, and implementation and effectuation of the Amended and Restated Receivable Purchase Program (the terms “Receivables” and
“Related Security” shall have the meanings attributed thereto in the ARPCA); 

  

	 	c)	 a Guaranty and Undertaking Agreement (the “Guarantee Agreement”) substantially in accordance with the Term Sheet among ACI,
Citibank and the various guarantors thereto, to be entered into in connection with the entry into, implementation and effectuation of the Amended and Restated Securitization Program; 

  

	 	d)	 such other ancillary documentation as may be required or desirable in connection with the entry into, implementation and effectuation of the Amended
and Restated Receivables Purchase Program, in each case substantially in accordance with the Term Sheet (as amended and restated, collectively referred to with the ARRPA, the ARPCA and the Guarantee Agreement as the “Receivables
Agreements”); 

 copies of the Citibank Engagement Letter and the Barclays Engagement
Letter have been communicated, respectively, as Exhibits R-1 and R-2 to Petitioners’ Motion for an Order Authorizing a Replacement Securitization Facility and to Amend the Initial Order. 
 [30] ORDERS that ACI is hereby directed, authorized and empowered to perform or continue to perform its obligations,
including the sale and servicing of Receivables and all Related Security, under the Receivables Agreements and under the following agreements to which it is a party (as amended and restated, the “Financing Agreements” and
collectively with the Receivables Agreements, the “Amended Securitization Program Agreements”): 
  

	 	a)	 the Undertaking Agreement (Servicer) dated as of October 27, 2005 by ACI in favour of Eureka, Citibank and the other Banks (as defined in the
Existing RPA) that are party to the Existing RPA, as amended; 

	 	b)	 the Undertaking Agreement (Originator) dated as of October 27, 2005 by ACI in favour of ACI Funding, as amended; 

 

	 	c)	 the Deposit Account Control Agreement dated as of January 31, 2008 among ACI Funding, ACI, ACSC, Citibank and the Agent;

  

	 	d)	 the Blocked Accounts Agreement dated as of October 27, 2005 among ACI, ACSC, the Agent, Royal Bank of Canada and ACI Funding;

  

	 	e)	 the Agreement Re: Pledged Deposit Accounts dated as of October 27, 2005 among ACSC, ACI, ACI Funding, the Agent and LaSalle Bank National
Association; 

  

	 	f)	 the Third Amended and Restated Four Party Agreement for Sold Accounts (General) substantially in accordance with the Term Sheet, amending that
certain Second Amended and Restated Four Party Agreement for Sold Accounts (General) dated as of January 31, 2008 among Export Development Canada and Compagnie Française d’Assurance pour le Commerce Extérieur - Canada Branch,
ACI, ACI Funding, the Agent and Citibank; 

  

	 	g)	 the Intercompany Agreement dated as of December 20, 2007 between ACI and ACSC; 

  

	 	h)	 the Accounts Receivable Policy (Shipments) General Terms and Conditions, plus the Coverage Certificate effective September 1, 2008 (together
with all schedules and endorsements thereto) issued by Export Development Canada and Compagnie Française d’Assurance pour le Commerce Extérieur—Canada Branch to ACI. 

 [31] ORDERS that (i) ACI is hereby authorized and empowered to continue selling the relevant Receivables and
Related Security to ACI Funding pursuant to and in accordance with the Amended Securitization Program Agreements, and such sale shall continue to be and be free and clear of any lien, claims, charges or encumbrances and other interests of any of
ACI, ACSC, the Petitioners or their respective creditors, including any charges created pursuant to this Order, and (ii) subject to the conditions stated in the Interim Securitization Order issued by the US Bankruptcy Court on June 11,
2009, the Abitibi Petitioners are hereby authorized and empowered to use the collateral, including cash collateral, of the Lenders under that certain Credit and Guaranty Agreement dated as at April 1, 2008 among, inter alia, ACCC as borrower,
ACI as guarantor, the other guarantors party thereto, the lenders from time to time party thereto (the “ACCC Term Lenders”) and Wells Fargo Bank, N.A. (as successor-in-interest to Goldman Sachs Credit Partners L.P., in its capacity
as administrative agent and collateral agent, the “ACCC Term Agent”). 

 [31.1] ORDERS that ACI is hereby authorized and empowered to continue
fulfilling its obligations under the Existing RPA, the Existing PCA and the Financing Documents, including but not limited to, the sale of relevant Receivables and Related Security, until such date as the Amended Securitization Program Agreements
are in effect. 
 [31.2] ORDERS that should ACSC pay any interest to the ACCC Term Agent for the benefit
of the ACCC Term Lenders or any fees and expenses of advisors to the ACCC Term Agent, such amounts shall be set off and compensated each month without regard to reciprocity or solidarity against post-petition amounts owed by ACSC to any of ACI or
ACCC for inventory purchased on credit from any of ACI or ACCC. 
 [32] DECLARES that the transfers by ACI
of its Receivables and Related Security to ACI Funding under the ARPCA shall constitute and continue to constitute true sales under applicable non-bankruptcy law and are hereby deemed true sales and were and will be for fair consideration. Upon the
transfer of the Receivables to ACI Funding, the Receivables and Related Security did (with respect to transfers occurring prior to the date hereof) and will (with respect to transfers occurring on or after the date hereof) become the sole property
of ACI Funding, and none of the Petitioners, nor any creditors of the Petitioners, shall retain any ownership rights, claims, liens or interests in or to the Receivables and Related Security, or any proceeds therefrom including, without limitation,
pursuant to any theory of substantive consolidation or otherwise. 
 [33] DECLARES that each Amended
Securitization Program Agreement constituted and continues to constitute a valid and binding obligation of ACI, enforceable against ACI in accordance with its terms and that the terms and conditions of the Amended Securitization Program Agreements
have been negotiated in good faith and at arm’s length and the transfers made or to be made and the obligations incurred or to be incurred thereunder shall be deemed to have been made for fair or reasonably equivalent value and in good faith.

 [34] DECLARES that upon their transfer by ACI pursuant to the Amended Securitization Program
Agreements, neither the Receivables nor the Related Security, nor the proceeds thereof, shall constitute property of the patrimonies of any of the Petitioners or their affiliates, including notwithstanding any intentional or inadvertent deposit of
any proceeds of the Receivables in bank accounts owned or controlled by any of the Petitioners or their affiliates. 
 [35] DECLARES that notwithstanding: (i) these proceedings and any declaration of insolvency made herein; (ii) any bankruptcy application or bankruptcy motion filed pursuant to the BIA in respect of the Petitioners and any
bankruptcy order or any assignment in bankruptcy made or deemed to be made in respect of the Petitioners; (iii) proceedings taken by ACI under Chapter 15 of

 
Title 11 of The United States Code (“ACI’s Chapter 15 Proceedings”); or (iv) the provisions of any federal or provincial statute, the transfers of Receivables and
Related Security made by ACI pursuant to the Amended Securitization Program Agreements and this Order did not, and on or after April 17, 2009, do not and will not, constitute settlements, fraudulent preferences, fraudulent conveyances or other
challengeable or reviewable transactions or conduct meriting an oppression remedy under any applicable law. 
 [36] DECLARES that the performance by ACI, ACSC and ACI Funding of their respective obligations under the Amended Securitization Program Agreements, and the consummation of the transactions contemplated by the Amended Securitization
Program Agreements, and the conduct by ACI, ACSC and ACI Funding of their respective businesses, whether occurring prior to or subsequent to the date hereof did not, on or after April 17, 2009, do not, and shall not, provide a basis for a
substantive consolidation of the assets and liabilities of ACI and ACSC, or any of them, with the assets and liabilities of ACI Funding or a finding that the separate corporate identities of ACI, ACSC and ACI Funding may be ignored. Notwithstanding
any other provision of this Order, the Agent, Citibank and the other parties thereto have agreed to enter into the Amended Securitization Program Agreements in express reliance on ACI Funding being a separate and distinct legal entity, with assets
and liabilities separate and distinct from those of any of the Petitioners. 
 [37] DECLARES that the
transfers of Receivables and Related Security by ACI pursuant to the Amended Securitization Program Agreements and this Order shall continue to be valid and enforceable as against all Persons, including, without limitation, any trustee in
bankruptcy, receiver, receiver and manager or interim receiver of the Petitioners, for all purposes. 
 [38]
DECLARES, for greater certainty, that the Facility Termination Date and the Commitment Termination Date (as each is defined in the Existing RPA or Existing PCA or in the ARRPA or ARPCA) have not occurred as a consequence of the commencement of
these proceedings, the U.S. Proceedings, ACI’s Chapter 15 Proceedings or the taking of corporate actions by ACI or ACSC to approve such proceedings, or the failure of ACI or ACSC to pay any debts that are otherwise stayed by any of the
foregoing or the written admission by ACI or ACSC of its inability to pay such debts. 
 [39] ORDERS AND
DECLARES that collections of Receivables and other funds which are subject to the Deposit Account Control Agreement dated as of January 31,2008, the Agreement Re: Pledged Deposit Accounts dated as of October 27,2005, the, Blocked
Accounts Agreement dated as of October 27, 2005, the Second Amended and Restated Four Party Agreement for Sold Accounts (General), elated as of January 31, 2008, or the Third Amended and Restated Four Party Agreement for Sold Accounts
(General), referred to above,

 
shall be processed and transferred pursuant to such deposit and blocked account agreements and each bank party thereto is directed to comply therewith. 
 [40] ORDERS that ACI is hereby authorized and empowered to make, execute and deliver all instruments and documents and
perform all other acts (including, without limitation, the perfection of ACI Funding’s ownership interest in the Receivables) that may be required in connection with the Amended Securitization Program Agreements and the transactions
contemplated thereby; it being expressly contemplated that pursuant to the terms of the Amended Securitization Program Agreements, ACI and ACSC shall be expressly authorized and empowered to continue to service, administer and collect the
Receivables and Related Security on behalf of ACI Funding pursuant to the Amended Securitization Program Agreements, and with respect to ACI, ACSC and ACI Funding, each shall be expressly authorized and empowered to make, execute and deliver all
instruments and documents and perform all other acts that may be required in connection with the Amended Securitization Program Agreements and the transactions contemplated thereby. 
 [41] ORDERS that ACI is hereby authorized and empowered to continue to use the proceeds of the arrangements
contemplated by the Amended Securitization Program Agreements in the operation of the Petitioners’ businesses, provided however, that the use of the proceeds are consistent with the terms of the Amended Securitization Program Agreements, this
Order or as may otherwise be agreed in writing by the Agent. 
 [42] ORDERS AND DECLARES that without
limiting ACI’s duty to comply with and fulfill any obligations under the Amended Securitization Program Agreements, AC:/ shall perform and pay all indemnification and other obligations to the Agent, Citibank and any other Indemnified Parties
(as defined in the ARRPA) under the Amended Securitization Program Agreements, all obligations to ACI Funding under the Amended Securitization Program Agreements, and all of its obligations in respect of the Insurance Policy (as defined in the
ARRPA). 
 [43] ORDERS AND DECLARES that, notwithstanding the terms of this Order, the parties to the
Amended Securitization Program Agreements other than ACI shall in that capacity be unaffected in these proceedings and by any plan of compromise or arrangement proposed by any of the Petitioners under the CCAA or by any proposal filed by any of the
Petitioners under the SIA, and for greater certainty, paragraph 46(f) of this Order shall not apply to the Amended Securitization Program Agreements. 
 [44] DECLARES that this Order shall not stay or otherwise apply to restrict in any way the exercise of any rights of any Person under any of the Amended Securitization Program Agreements.

 [45] ORDERS AND DECLARES that subject to further order of this Court,
no order shall be made varying, rescinding, or otherwise affecting paragraph 28 hereof in respect of the Securitization Program, or inventory sales by ACI and the sale of inventory by ACI to ACSC and paragraphs 29 to 45.2 hereof or any other
reference to the Securitization Program or the Amended Securitization Program Agreements herein, unless either (a) notice of a motion for such order is served on the Agent and ACI by the moving party within seven (7) days after that party
was provided with notice of this Order in accordance with paragraph 70(a) hereof or (b) the Agent and ACI apply for or consent to such order. 
 [45.1] ORDERS AND DECLARES that notwithstanding paragraph 45 hereof, the parties to the Amended Securitization Program Agreements are hereby expressly authorized to make, execute and deliver one or
more non-material amendments complying with the following to said Amended Securitization Program Agreements in such form as the parties thereto may agree with prior notice to the Monitor, it being understood that no further approval of this Court
shall be required for amendments to the Amended Securitization Program Agreements, other than amendments extending the maturity date, changing interest payable, imposing material negative covenants or requiring the payment of additional fees.

 [45.2] ORDERS that notwithstanding the amendment and restatement of this Order, paragraphs 29 to 45 of
the Second Amended and Restated Initial Order made May 6, 2009 shall remain in full force and effect with respect to the Waiver Agreement and the Securitization Program Agreements (as defined in such Order). 
 [9] ORDERS the provisional execution of this Order notwithstanding any appeal and without the necessity of furnishing any security.

 [10] WITHOUT COSTS.  
  

					
		 	  
	 	
		 	CLÉMENT GASCON, J.S.C.	 	

 Me Guy P. Martel, Me Melanie Béland and Me Joseph Reynaud 
 Stikeman, Elliott 
 Attorneys for Petitioners 
 Date of
hearing            June 15, 2009 

 SCHEDULE “A” 
 - 
 ABITIBI PETITIONERS 
  

	1.	 ABITIBI-CONSOLIDATED INC. 

  

	2.	 ABITIBI-CONSOLIDATED COMPANY OF CANADA 

  

	3.	 3224112 NOVA SCOTIA LIMITED 

  

	4.	 MARKETING DONOHUE INC. 

  

	5.	 ABITIBI-CONISOLIDA TED CANADIAN OFFICE PRODUCTS HOLDINGS INC. 

  

	6.	 3834328 CANADA INC. 

  

	7.	 6169678 CANADA INC. 

  

	8.	 4042140 CANADA INC. 

  

	9.	 DONOHUE RECYCLING INC. 

  

	10.	 1508756 ONTARIO INC. 

  

	11.	 3217925 NOVA SCOTIA COMPANY 

  

	12.	 LA TUQUE FOREST PRODUCTS INC. 

  

	13.	 ABITIBI-CONSOLIDATED NOVA SCOTIA INCORPORATED 

  

	14.	 SAGUENAY FOREST PRODUCTS INC. 

  

	15.	 TERRA NOVA EXPLORATIONS L TO. 

  

	16.	 THE JONQUIERE PULP COMPANY 

  

	17.	 THE INTERNATIONAL BRIDGE AND TERMINAL COMPANY 

  

	18.	 SCRAMBLE MINING LTD. 

  

	19.	 9150-3383 QUÉBEC INC. 

 SCHEDULE “B” 
 - 
 BOWATER PETITIONERS 
  

	1.	 BOWATER CANADIAN HOLDINGS INC. 

  

	2.	 BOWATER CANADA FINANCE CORPORATION 

  

	3.	 BOWATER CANADIAN LIMITED 

  

	4.	 3231378 NOVA SCOTIA COMPANY 

  

	5.	 ABITIBIBOWATER CANADA INC. 

  

	6.	 BOWATER CANADA TREASURY CORPORATION 

  

	7.	 BOWATER CANADIAN FOREST PRODUCTS INC. 

  

	8.	 BOWATER SHELBURNE CORPORATION 

  

	9.	 BOWATER LAHAVE CORPORATION 

  

	10.	 5T-MAURICE RIVER DRIVE COMPANY LIMITED 

  

	11.	 BOWATER TREATED WOOD INC. 

  

	12.	 CANEXEL HARDBOARD INC. 

  

	13.	 9068-9050 QUEBEC INC. 

  

	14.	 ALLIANCE FOREST PRODUCTS (2001) INC. 

  

	15.	 BOWATER BELLEDUNE SAWMILL INC. 

  

	16.	 BOWATER MARITIMES INC. 

  

	17.	 BOWATER MITS INC. 

  

	18.	 BOWATER GUERETTE INC. 

  

	19.	 BOWATER COUTURIER INC. 

 SCHEDULE “C” 
 18.6 CCAA PETITIONERS 
  

	1.	 ABITIBIBOWATER INC. 

  

	2.	 ABITIBIBOWATER US HOLDING 1 CORP. 

  

	3.	 BOWATER VENTURES INC. 

  

	4.	 BOWATER INCORPORATED 

  

	5.	 BOWATER NUWAY INC. 

  

	6.	 BOWATER NUWAY MID-STATES INC. 

  

	7.	 CATAWBA PROPERTY HOLDINGS LLC 

  

	8.	 BOWATER FINANCE COMPANY INC. 

  

	9.	 BOWATER SOUTH AMERICAN HOLDINGS INCORPORATED 

  

	10.	 BOWATER AMERICA INC. 

  

	11.	 LAKE SUPERIOR FOREST PRODUCTS INC. 

  

	12.	 BOWATER NEWSPRINT SOUTH LLC 

  

	13.	 BOWATER NEWSPRINT SOUTH OPERATIONS LLC 

  

	14.	 BOWATER FINANCE II, LLC 

  

	15.	 BOWATER ALABAMA LLC 

  

	16.	 COOSA PINES GOLF CLUB HOLDINGS LLC 

 SCHEDULE “D” 
 PARTNERSHIPS’ 
  

	1.	 BOWATER CANADA FINANCE LIMITED PARTNERSHIP 

  

	2.	 BOWATER PULP AND PAPER CANADA HOLDINGS LIMITED PARTNERSHIP 

  

	3.	 ABITIBI-CONSOLIDATED FINANCE LP 

 EXHIBIT A-2 
 Form of US Interim Order 
 IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF DELAWARE 
  

							
		    	)	    		    	
	 In re:
	    	)	    	 Chapter 11
	    	
		    	)	    		    	
	 ABITIBIBOWATER INC., et al.,1
	    	)	    	 Case No. 09-11296 (KJC)
	    	
		    	)	    		    	
	Debtors.	    	)	    	 (Joint Administration Pending)
	    	
		    	)	    		    	

 INTERIM ORDER PURSUANT TO SECTIONS 
 105, 362(d), 363(b)(l), 363(f), 363(m), 364(c)(l), 364(e) AND 365 
 OF THE BANKRUPTCY CODE (1) AUTHORIZING 
 CERTAIN
DEBTORS TO CONTINUE SELLING RECEIVABLES AND 
 RELATED RIGHTS PURSUANT TO AN AMENDED SECURITIZATION 
 FACILITY, (2) MODIFYING THE AUTOMATIC STAY AND (3) 
 GRANTING OTHER RELATED RELIEF 
 Upon the motion dated April 16, 2009 (the “Motion”)2 of the above-captioned Debtors seeking an order of this Court, pursuant to sections 362(d), 363(b)(l), 363(f), 363(m), 364(c)(l), 364(e) and 365 of title 11 of the United States Code (the
“Bankruptcy Code”): 
 EXHIBIT A-2-1 
  

	1	 The Debtors in these cases, along with the last four digits of each Debtor’s federal or Canadian tax identification number, are: AbitibiBowater
Inc. (6415), AbitibiBowater US Holding 1 Corp. (6050), AbitibiBowater US Holding LLC (N/A), AbitibiBowater Canada Inc. (3225), Abitibi-Consolidated Alabama Corporation (4396), Abitibi-Consolidated Corporation (9050), Abitibi-Consolidated Finance LP
(4528), Abitibi Consolidated Sales Corporation (7144), Alabama River Newsprint Company (7247), Augusta Woodlands, LLC (0999), Bowater Alabama LLC (7106), Bowater America Inc. (8645), Bowater Canada Finance Corporation (8810), Bowater Canadian Forest
Products Inc. (2010), Bowater Canadian Holdings Incorporated (6828), Bowater Canadian Limited (7373), Bowater Finance Company Inc. (1715), Bowater Finance II LLC (7886), Bowater Incorporated (1803), Bowater LaHave Corporation (5722), Bowater
Maritimes Inc. (5684), Bowater Newsprint South LLC (1947), Bowater Newsprint South Operations LLC (0186), Bowater Nuway Inc. (8073), Bowater Nuway Mid-States Inc. (8290), Bowater South American Holdings Incorporated (N/A), Bowater Ventures Inc.
(8343), Catawba Property Holdings, LLC (N/A), Coosa Pines Golf Club Holdings LLC (8702), Donohue Corp. (9051), Lake Superior Forest Products Inc. (9305) and Tenex Data Inc. (5913). The Debtors’ corporate headquarters are located at, and
the mailing address for each Debtor is, 1155 Metcalfe Street, Suite 800, Montreal, Quebec H3B 5H2, Canada. 

	2	 Capitalized terms used but not otherwise defined herein shall have the same meanings assigned thereto in the Motion. 

 (i) authorizing Abitibi Consolidated
Sales Corporation (“ACSC”) and Abitibi-Consolidated Inc., a Chapter 15 debtor3 (“ACI” and together with ACSC the “Originators”) to enter into, and authorizing ACSC to cause Abitibi-Consolidated U.S. Funding Corp., a wholly-owned subsidiary of ACSC
that is not a Debtor (“ACI Funding”) to enter into an Omnibus Amendment, substantially in the form attached to the Motion (the “Amendment”), to (a) that certain Amended and Restated Receivables Purchase
Agreement, dated as of January 31, 2008 (as heretofore amended the “RPA”) among ACI Funding, Eureka Securitisation, plc (“Eureka”), Citibank, N.A. (“Citibank”), Citibank, N.A., London Branch
(the “Agent”), ACI, in its capacity as Subservicer and an Originator, and ACSC, in its capacity as Servicer and an Originator and (b) that certain Amended and Restated Purchase and Contribution Agreement, dated as of
January 31, 2008 (as heretofore amended the “PCA”, the RPA and PCA, each as amended by the Amendment, are collectively hereinafter referred to as the “Receivables Agreements”) among ACI and ACSC as Sellers and
ACI Funding as Purchaser, 
  

	3	 Notwithstanding anything in this Order to the contrary, this Order does not grant authority to ACI and nothing in this Order limits the jurisdiction
of the Quebec Superior Court of Justice (Commercial Division) (the “Canadian Court”) over ACI or limits oversight of the monitor appointed in the proceeding of Abitibi-Consolidated Inc. under Canada's Companies' Creditors
Arrangement Act, R.S.C. 1985, c. C-36 (the “Canadian Proceeding”). References in this Order to ACI describe the Chapter 15 relief granted to ACI pursuant to this Court's recognition of paragraphs     
through          of the initial order of the Canadian Court entered in the Canadian Proceeding and grant of other Chapter 15 relief pursuant to the “Order Granting Provisional Relief” and the
“Order Granting Recognition and Relief in Aid of Foreign Proceeding Pursuant to 11 U.S.C. §§1517, 1520, and 1520”, in each case, upon entry by this Court in the Chapter 15 case of In re Abitibi-Consolidated Inc.,
et al., Case No. 09-             (            ).

  

 2 

 
which Amendment shall, among other things, waive certain defaults under the Receivables Agreements; 
 (ii) authorizing the Originators to continue selling and/or contributing Receivables (as defined in the PCA) to ACI Funding in accordance with the terms of the PCA (Receivables sold
or contributed to ACI Funding, whether before or after the Filing Date (as defined below), together with the Related Security (as defined in the PCA) being referred to herein as “Transferred Receivables”); 
 (iii) authorizing ACI, ACSC and the other Debtors, as applicable, to otherwise perform or continue to
perform, and authorizing ACSC to cause ACI Funding, as a wholly owned subsidiary of ACSC, to perform or continue to perform their respective obligations under each of the Receivables Agreements (including without limitation servicing obligations)
and each of the other instruments and agreements related to the securitization facility contemplated by the Receivables Agreements, whether currently effective or hereafter entered into (such other instruments and agreements together with the
Receivables Agreements and the Amendment, the “Financing Agreements”), including notably, but without limiting the generality of the foregoing: (a) the Undertaking Agreement (Servicer) dated as of October 27, 2005 by ACI
in favor of Eureka, Citibank and the other Banks (as defined in the RPA) that are party to the RPA (as heretofore amended, including, without limitation, by Second Amendment of Undertaking Agreement (Servicer) dated as of January 31, 2008);
(b) the Undertaking Agreement (Originator) dated as of October 27, 2005 by ACI in

  

 3 

 
favor of ACI Funding (as heretofore amended, including, without limitation, by Second Amendment of Undertaking Agreement (Originator) dated as of January 31, 2008); (c) the Deposit
Account Control Agreement dated as of January 31, 2008 among ACI Funding, ACI, ACSC, Citibank and the Agent, as amended (the “Deposit Account Control Agreement”); (d) the Blocked Accounts Agreement dated as of
October 27, 2005 among ACI, ACSC, the Agent, Royal Bank of Canada and ACI Funding, as amended (the “Blocked Accounts Agreement”); (e) the Agreement Re: Pledged Deposit Accounts dated as of October 27, 2005 among ACSC,
ACI, ACI Funding, the Agent and LaSalle Bank National Association, as amended (the “Pledged Deposit Accounts Agreement”); (f) the Second Amended and Restated Four Party Agreement for Sold Accounts (General) dated as of
January 31, 2008 among Export Development Canada and Compagnie Francaise d’Assurance pour le Commerce Exterieur – Canada Branch, ACI, ACI Funding, the Agent and Citibank, as amended; (g) the Intercompany Agreement dated as of
December 20, 2007 between ACI and ACSC, as amended; (h) the Accounts Receivable Policy (Shipments) General Terms and Conditions, plus the Coverage Certificate effective September 1, 2008 (together with all schedules and endorsements
thereto) issued by Export Development Canada and Compagnie Francaise d’Assurance pour le Commerce Exterieur - Canada Branch to ACI, as amended; and (i) the fee letters dated April 1, 2009 between ACI Funding and the Agent; 

 

 4 

 (iv) pursuant to section 364(c)(1) of the Bankruptcy Code,
granting ACI Funding, the Agent, Eureka and Citibank priority in payment with respect to the obligations of the Originators under the Financing Agreements over any and all administrative expenses of the kinds specified in sections 503(b) and 507(b)
of the Bankruptcy Code, other than in respect of the Carve-Out (as defined below); 
 (v)
scheduling an interim hearing (the “Interim Hearing”) on the Motion to consider entry of an interim order (this “Order”) pursuant to Rule 4001 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy
Rules”); and 
 (vi) requesting that a final hearing (the “Final
Hearing”) be scheduled, and that notice procedures in respect of the Final Hearing be established, by this Court to consider entry of a final order (the “Final Order”) authorizing on a final basis, among other things, the
Amendment and continued performance of the Debtors’ respective obligations under the Financing Agreements, and granting other related relief; 
 and it appearing that the relief requested in the Motion is in the best interests of the Debtors’ estates, their creditors, and other parties-in-interest; and the Court having considered the Motion
and the documents related thereto, and after due deliberation and sufficient cause appearing therefor; due and appropriate notice of the Motion, the relief requested therein having been served by the Debtors on the following parties, or, in lieu
thereof, their counsel: (i) the Office of the United States Trustee; (ii) the United States Securities and Exchange Commission; (iii) the Internal Revenue Service; (iv) counsel to the agents for the Debtors’ prepetition
secured bank facilities; (v) counsel to the agent for

  

 5 

 
the Debtors’ proposed postpetition lenders; (vi) the indenture trustees for each series of the Debtors’ prepetition notes; (vii) the Agent; (viii) the monitor appointed
in the Canadian Proceeding; (ix) the parties identified on the Debtors’ consolidated list of thirty-five (35) largest unsecured creditors; (x) the Debtors’ primary cash management banks; (xi) the Debtors’ primary
lockbox banks and (xii) the Environmental Protection Agency; the Interim Hearing having been held on April [17], 2009; and all objections or responses, if any, to the Motion having been withdrawn or overruled either prior to the Interim
Hearing, or at the Interim Hearing; and upon the record made by the Debtors at the Interim Hearing and after due deliberation and consideration and sufficient cause appearing therefor; 
 THE COURT MAKES THE FOLLOWING FINDINGS OF FACT AND CONCLUSIONS OF LAW: 
 1. On April 16, 2009 (the “Filing Date”), the Debtors filed voluntary petitions for relief with this
Court under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Cases”). The Debtors are continuing in possession of their property, and operating and managing their businesses, as debtors in possession pursuant to sections 1107 and
1108 of the Bankruptcy Code. 
 2. This Court has jurisdiction over these proceedings and the parties and the
property of the Debtors affected hereby pursuant to 28 U.S.C. §§ 157(b) and 1334. Venue is proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409. 
 3. Subject to Paragraph 24, the Debtors hereby forever waive and release any and all “claims” (as such term is defined in the Bankruptcy Code), counterclaims, causes

  

 6 

 
of action, defenses or setoff rights, in each case arising from or related to any acts or transactions occurring prior to the Filing Date against ACI Funding, the Agent, Citibank, Eureka and each
of their respective affiliates, agents, officers, directors, employees and attorneys (collectively, the “Released Parties”), whether arising at law or in equity, including any recharacterization, subordination, avoidance or other
claim arising under or pursuant to section 105 or chapter 5 of the Bankruptcy Code or under any other similar provisions of applicable state or federal law (collectively, the “Released Claims”); provided, however, that
nothing in this Order releases any party thereto from their contractual obligations under the Financing Agreements or in any way affects their property interests, as provided in the Financing Agreements, in the Transferred Receivables or the
proceeds thereof; provided further, however, that nothing in this Order releases any of the Released Parties from any claims, counterclaims or causes of action assertable by any Debtor in connection with any termination, default or failure to
perform under that certain Master Agreement dated as of July 2, 2003, as amended, supplemented or otherwise modified from time-to-time (including, but not limited to, the confirmations dated June 17, 2004 and June 28, 2004), between
Citibank Canada and Abitibi-Consolidated Company of Canada. The Debtors further covenant not to sue the Released Parties on account of any Released Claims. 
 4. The Debtors admit, stipulate and agree that transfers of the Transferred Receivables by the Originators pursuant to the provisions of the Receivables Agreements whether occurring
prior to or subsequent to the Filing Date, constitute true sales or true contributions under applicable non-bankruptcy law and are hereby deemed true sales or

  

 7 

 
true contributions, and were or will be for fair consideration and are not otherwise voidable or avoidable. The Debtors admit, stipulate and agree that upon the transfer of the Receivables to ACI
Funding, the Receivables did (with respect to transfers occurring prior to the Filing Date) and will (with respect to the transfers occurring on or after the Filing Date) become the sole property of ACI Funding, and none of the Debtors, nor any
creditors of the Debtors, shall retain any ownership rights, claims, liens or interests in or to the Transferred Receivables, or any proceeds thereof pursuant to section 541 of the Bankruptcy Code, pursuant to any theory of substantive consolidation
or otherwise. The Debtors admit, stipulate and agree that upon the transfer by each of the Originators pursuant to the provisions of the Financing Agreements, neither the Transferred Receivables, nor the proceeds thereof, shall constitute property
of the bankruptcy estates of any of the Debtors, notwithstanding any intentional or inadvertent deposit of any proceeds of the Transferred Receivables in bank accounts owned or controlled by any of the Debtors. 
 5. The Debtors seek access to the funding proposed to be provided by the Financing Agreements in order to assure sufficient
available sources of working capital and financing to carry on the operation of their businesses. Specifically, continued performance of the Financing Agreements will permit the Originators to continue transferring the Receivables to ACI Funding,
allowing the Debtors to continue their prepetition practice of converting Receivables to cash as soon as possible to provide cash flow necessary for various business purposes. The Debtors’ ability to maintain business relationships with their
vendors, suppliers and customers, to pay their employees, to

  

 8 

 
purchase and supply new inventory and otherwise finance their operations, is essential to the Debtors’ continued viability. In addition, the Debtors’ need for financing is immediate. In
the absence of the proposed financing, serious and irreparable harm to the Debtors’ business operations and their estates could occur, which may include third parties declining to conduct business dealings with the Debtors. The preservation,
maintenance and enhancement of the going concern value of the Debtors are of the utmost significance and importance to a successful reorganization of the Debtors under chapter 11 of the Bankruptcy Code. 
 6. Given their current financial condition, financing arrangements and capital structure, the Debtors cannot obtain
unsecured credit allowable under section 503(b)(1) of the Bankruptcy Code as an administrative expense. Financing on a postpetition basis is not otherwise available without certain Debtors granting, pursuant to section 364(c)(1) of the Bankruptcy
Code, claims having priority over any and all administrative expenses of the kinds specified in sections 503(b) and 507(b) of the Bankruptcy Code, other than as described below in respect of the Carve-Out. 
 7. No creditors’ committee has been appointed in any of the Chapter 11 Cases. Under the circumstances, the notice given
by the Debtors of the Motion, the relief requested therein and the Interim Hearing constitutes appropriate, due and sufficient notice thereof and complies with Bankruptcy Rule 4001(b) and (c) and the Local Bankruptcy Rules, and no further
notice of the relief sought at the Interim Hearing and the relief granted herein is necessary or required. 
  

 9 

 8. Entry into the Amendment and continued performance of the Debtors’
respective obligations under the Financing Agreements is in the best interests of the Debtors and their estates, and the Debtors are expressly authorized and empowered to enter into the Amendment and to perform and do or continue to perform and do,
as applicable, all acts that may be required in connection with the Financing Agreements. Each currently effective Financing Agreement constitutes, and upon execution and delivery thereof, each newly executed Financing Agreement shall constitute, a
valid and binding obligation of each Debtor party thereto, enforceable against each such Debtor in accordance with its terms. The terms and conditions of the Financing Agreements have been negotiated in good faith and at arm’s length and the
transfers made or to be made and the obligations incurred or to be incurred shall be deemed to have been made for fair or reasonably equivalent value and in good faith (and without intent to “hinder, delay or defraud any creditor” of the
Debtors) as those terms are used in the Bankruptcy Code and the transactions contemplated thereunder shall be deemed to have been made in “good faith,” as that term is used in sections 363(m) and 364(e) of the Bankruptcy Code and in
express reliance upon the protections offered by sections 363(m) and 364(e) of the Bankruptcy Code. The Agent shall be entitled, derivatively, to assert any and all of the rights of ACI Funding, including, without limitation, those arising under
section 363(m) of the Bankruptcy Code, arising as a result thereof. 
 Based upon the foregoing findings and
conclusions, and upon the record made at the Interim Hearing, and good and sufficient cause appearing therefore; 
 IT IS HEREBY ORDERED that: 
  

 10 

 9. The Motion is granted on an interim basis in accordance with the terms of
this Order. Any objections to the Motion with respect to the entry of this Order that have not been withdrawn, waived or settled, and all reservations of rights included therein, are hereby denied and overruled. 
 10. ACI, ACSC and the other Debtors, as applicable, are expressly authorized and empowered (i) to execute and deliver,
and ACSC is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to execute and deliver the Amendment and all related documents and instruments to be executed and delivered in connection therewith, and the Facility Termination Date
(as defined in the RPA and in the PCA) and the Commitment Termination Date (as defined in the RPA) shall be deemed not to have occurred as a consequence of the filing of the Chapter 11 Cases, ACI’s Chapter 15 case or the Canadian Proceeding or
the taking of corporate action by AbitibiBowater Inc. (“ABI”), ACI or ACSC to authorize any of the foregoing or the failure of ABI, ACI or ACSC to pay any debts that are otherwise stayed by any of the foregoing or the written
admission by ABI, ACI or ACSC of its inability to pay such debts; (ii) to transfer, and shall be deemed to have transferred, free and clear of all liens, claims, encumbrances and other interests of any of the Originators, or their respective
creditors pursuant to sections 363(b)(1) and (f) of the Bankruptcy Code, the Receivables to ACI Funding, without recourse (except to the limited extent provided in the Financing Agreements); (iii) to otherwise perform or continue to
perform, and ACSC is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to otherwise perform or continue to perform, as applicable, their respective obligations under the Financing Agreements and

  

 11 

 
(iv) to make, execute and deliver, and ACSC is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to make, execute and deliver all instruments and documents and perform all
other acts (including, without limitation, the perfection of ACI Funding’s ownership interest in the Transferred Receivables) that may be required in connection with the Financing Agreements and the transactions contemplated thereby; it being
expressly contemplated that pursuant to the terms of the Financing Agreements, ACI and ACSC shall be expressly authorized and empowered pursuant to section 363(b)(1) of the Bankruptcy Code to service, administer and collect the Transferred
Receivables on behalf of ACI Funding pursuant to the Financing Agreements, and with respect to the Originators and ACI Funding, each shall be expressly authorized and empowered pursuant to section 363(b)(l) of the Bankruptcy Code to make, execute
and deliver all instruments and documents and perform all other acts (including, without limitation, the perfection of ACI Funding’s ownership interest in the Transferred Receivables) that may be required in connection with the Financing
Agreements and the transactions contemplated thereby. Moreover, ACI Funding shall be entitled to the full benefits of section 363(m) of the Bankruptcy Code in connection with any transfers made pursuant to the provisions of the Financing Agreements,
with the Agent being entitled to assert ACI Funding’s rights thereunder derivatively. All indemnification and other obligations of the Originators and any other Debtors owing to the Agent, Eureka and Citibank under the Financing Agreements and
this Order are hereinafter referred to as the “Agent Obligations.” All obligations of the Originators and any other Debtors owing to ACI Funding under the Financing Agreements and this Order are hereinafter referred to

  

 12 

 
as the “Receivables Obligations.” For the avoidance of doubt, the Agent Obligations and the Receivables Obligations do not include any amounts owing to the Agent or Citibank or
their respective affiliates under or in connection with (i) any swap claims, (ii) any credit agreement in existence prior to the Filing Date not related to the Financing Agreements or (iii) any other indebtedness not related to the
Financing Agreements. Notwithstanding the foregoing, the Agent and Citibank shall be entitled to all of the rights and remedies accorded to them pursuant to the “safe harbor” provisions of the Bankruptcy Code. 
 11. The Originators and the other Debtors are authorized to use the proceeds of the arrangements contemplated by the
Financing Agreements in the operation of the Debtors’ businesses, provided, that the use of the proceeds is consistent with the terms of the Financing Agreements and this Order or as may otherwise be agreed in writing by the Agent.

 12. In accordance with section 364(c)(1) of the Bankruptcy Code, the Agent Obligations and the Receivables
Obligations shall constitute allowed senior administrative expense claims against each of the Originators (the “Superpriority Claims”) with priority over any and all administrative expenses, adequate protection claims, diminution
claims and all other claims against the Originators, now existing or hereafter arising, of any kind whatsoever, including, without limitation, all administrative expenses of the kind specified in sections 503(b) and 507(b) of the Bankruptcy Code,
and over any and all administrative expenses or other claims arising under sections 105, 326, 328, 330, 331, 503(b), 507(a), 507(b), 546, 726, 1113 or 1114 of the Bankruptcy Code,

  

 13 

 
whether or not such expenses or claims may become secured by a judgment lien or other non-consensual lien, levy or attachment, which allowed claims shall for purposes of
section 1129(a)(9)(A) of the Bankruptcy Code be considered administrative expenses allowed under section 503(b) of the Bankruptcy Code, and which shall be payable from and have recourse to all pre- and post-petition property of the
Originators and all proceeds thereof, subject only to the payment of the Carve-Out to the extent specifically provided for herein. Subject only to the Carve-Out, no cost or expense of administration asserted against any Debtor with obligations
arising under the Financing Agreements under sections 105, 364(c)(1), 503(b), 507(b) of the Bankruptcy Code, or otherwise, including those resulting from the conversion of any of the Chapter 11 Cases pursuant to section 1112 of the Bankruptcy Code,
shall be senior to, or pari passu with, the Superpriority Claims of the Agent, Citibank, Eureka or ACI Funding arising out of the Agent Obligations and the Receivables Obligations, as applicable. The Agent shall be permitted to enforce the
Superpriority Claims in respect of the Receivables Obligations on a derivative basis on behalf of ACI Funding. The Superpriority Claims shall be entitled to the full protection of section 364(e) of the Bankruptcy Code in the event that this Order or
any provision hereof is vacated, reversed or modified, on appeal or otherwise. 
 13. Any provision of this
Order or the Financing Agreements to the contrary notwithstanding, the Superpriority Claims shall be subject and subordinate to a carve-out (the “Carve-Out”) for (a) the payment of allowed professional fees and disbursements
incurred by the professionals retained, pursuant to sections 327, 328 or 1103(a) of the

  

 14 

 
Bankruptcy Code, by the Debtors and any statutory committee appointed in the Chapter 11 Cases and any disbursements of any member of such committee in an aggregate amount not to exceed
(i) $7,500,000 minus any payments made pursuant to any carve-out under any other postpetition credit facility of the Debtors in respect of professional fees and disbursements incurred following the occurrence and during the pendency of
an Event of Termination (as such term is defined in the Receivables Agreements) or an event of termination or event of default under such other postpetition credit facility of the Debtors (each a “Carve-Out Event”) plus
(ii) professional fees and disbursements incurred prior to the occurrence of a Carve-Out Event to the extent subsequently allowed plus (iii) professional fees and disbursements incurred from and after the date on which the Carve-Out
Event is no longer continuing to the extent subsequently allowed and (b) quarterly fees required to be paid pursuant to 28 U.S.C. § 1930(a)(6) and any fees payable to the Clerk of the Bankruptcy Court; provided, however, that no portion of
the Carve-Out or proceeds of the Financing Agreements shall be used to pay professional fees and disbursements incurred in connection with (i) asserting any claims or causes of action against the Agent, Citibank, Eureka or ACI Funding and/or
challenging or raising any defense to the Agent Obligations or Receivables Obligations or other obligations under the Financing Agreements, (ii) asserting or prosecuting any action for preferences, fraudulent conveyances, or other avoidance
power claims against the Agent, Citibank, Eureka or ACI Funding or (iii) objecting to or contesting the true sale nature of the sale and/or contribution of the Transferred Receivables, provided, further, however, that the Carve-Out may include
professional fees and disbursements for investigation of such

  

 15 

 
claims, causes of action or defenses in an aggregate amount not to exceed $50,000. As long as no Carve-Out Event shall have occurred and be continuing, the Debtors shall be permitted to pay
compensation and reimbursement of expenses, to the extent permitted by the Bankruptcy Court payable under sections 330 and 331 of the Bankruptcy Code, as the same may be payable, and the amounts so paid, or accrued but unpaid, shall not reduce the
Carve-Out; provided, however, that, upon the occurrence and during the continuance of a Carve-Out Event, the foregoing permission to pay allowed compensation and to reimburse expenses shall be limited to the professional fees and disbursements
incurred prior to the occurrence of the Carve-Out Event plus the Carve-Out. 
 14. If the amount of the
Carve-Out satisfied with the assets of any Originator exceeds the product of (x) the Carve-Out and (y) such Originator’s net asset value expressed as a percentage of the net asset value of the Debtors taken as a whole, such Originator
shall have a right of contribution against the Debtors that are not Originators in an amount equal to such excess (or in such other amount as the Bankruptcy Court may deem appropriate under the circumstances) and with the same relative priority as
the Carve-Out, and shall be subrogated to the rights of any claimant under the Carve-Out in respect of such right of contribution. 
 15. Pursuant to the Financing Agreements, ACI Funding may deduct from the purchase price of Transferred Receivables amounts which are payable by the Originators to ACI Funding in respect of violations of
certain representations and warranties and dilution items (all of such amounts, collectively, the “Repayment Amounts”), and the

  

 16 

 
automatic stay provisions of section 362 of the Bankruptcy Code are hereby modified to the extent necessary so as to permit the deduction of such amounts by ACI Funding. The payment by ACI
Funding of the purchase price for Receivables which are subsequently reduced by such Repayment Amounts constitutes an extension of credit to the applicable Originators. 
 16. The performance by the Originators and ACI Funding of their respective obligations under the Financing Agreements, and the consummation of the transactions contemplated by the
Financing Agreements, and the conduct by the Originators and ACI Funding of their respective businesses, whether occurring prior to or subsequent to the Filing Date, do not, and shall not, provide a basis for a substantive consolidation of the
assets and liabilities of the Originators, or any of them, with the assets and liabilities of ACI Funding or a finding that the separate corporate identities of the Originators and ACI Funding may be ignored. Notwithstanding any other provision of
this Order, the Agent, Citibank, Eureka and the other parties thereto have agreed to enter into the Financing Agreements in express reliance on ACI Funding being a separate and distinct legal entity, with assets and liabilities separate and distinct
from those of any of the Debtors. 
 17. Pursuant to the Financing Agreements and as described in the Motion,
ACI Funding has agreed to pay, and ACSC is hereby authorized and directed (without the necessity of any further application being made to, or order being obtained from, this Court) to cause ACI Funding, as a wholly owned subsidiary of ACSC, to pay
certain fees in consideration of the Agent’s and Citibank’s services in structuring and negotiating Amendment No. 4 to Amended and Restated Receivables Purchase Agreement and

  

 17 

 
Waiver Agreement dated as of April 1, 2009, Amendment No. 2 to Amended and Restated Purchase and Contribution Agreement and Waiver Agreement dated as of April 1, 2009, and the
Financing Agreements. 
 18. Collections of Transferred Receivables and other funds that are subject to the
Deposit Account Control Agreement, the Blocked Accounts Agreement or the Pledged Deposit Accounts Agreement shall be processed and transferred pursuant to such agreements, and such agreements are hereby approved in all respects and each deposit bank
party thereto is authorized and directed to comply therewith. 
 19. The Financing Agreements and the provisions
of this Order shall be binding upon all parties in interest in these Cases, including, without limitation, the Debtors, ACI Funding, Eureka, Citibank, the Agent, ACSC and ACI and their respective successors and assigns (including any chapter 7 or
chapter 11 trustee hereinafter appointed or elected for the estate of any of the Originators, an examiner appointed pursuant to section 1104 of the Bankruptcy Code or any other fiduciary appointed as a legal representative of any of the Originators
or with respect to the property of the estate of any of the Originators) and shall inure to the benefit of the Debtors, ACI Funding, Eureka, Citibank, the Agent, ACSC and ACI. 
 20. ACI Funding, Citibank and the Agent shall not (i) be deemed to be in control of the operations of the Debtors, (ii) owe any fiduciary duty to the Debtors, their
respective creditors, shareholders or estates or (iii) subject only to the right of the Environmental Protection Agency to be heard at the Final Hearing, and effective upon entry of the Final Order, be deemed to be acting as a “responsible
person” or “owner or

  

 18 

 
operator” with respect to the operation or management of the Debtors (as such terms, or any similar terms, are used in the United States Comprehensive Environmental Response, Compensation
and Liability Act, 29 U.S.C. §§ 9601, et seq., as amended, or any similar federal or state statute). 
 21. No rights of any entity in connection with a contract or transaction of the kind listed in sections 555, 556, 559, 560 or 561 of the Bankruptcy Code, whatever they might or might not be, are
affected by the provisions of this Order. 
 22. If any or all of the provisions of this Order are hereafter
reversed, modified, vacated or stayed, such reversal, stay, modification or vacation shall not affect (x) the validity of any transfer of the Receivables made pursuant to the provisions of the Financing Agreements prior to written notice to the
Agent and ACI Funding of the effective date of such reversal, stay, modification or vacation, (y) the validity of any obligation or liability incurred by each of the Originators prior to written notice to the Agent and ACI Funding of the
effective date of such reversal, stay, modification or vacation or (z) the validity and enforceability of any priority authorized or created hereby or pursuant to the Financing Agreements. Notwithstanding any such reversal, stay, modification
or vacation, any indebtedness, obligations or liabilities incurred, or payment made, by any of the Originators, prior to written notice to the Agent and ACI Funding of the effective date of such reversal, stay, modification or vacation, shall be
governed in all respects by the original provisions of this Order, and the Agent, Citibank, Eureka and ACI Funding shall be entitled to all the rights, remedies, privileges and benefits, granted herein and pursuant to the Financing Agreements with
respect to all such indebtedness,

  

 19 

 
obligations or liabilities (including, without limitation, with respect to the manner in which the proceeds of the Transferred Receivables are applied) and to the full benefits of sections 363(m)
and 364(e) of the Bankruptcy Code in connection therewith. 
 23. Upon transfer to ACI Funding, the Transferred
Receivables are and shall be the property of ACI Funding and not property of the estates of any of the Debtors and accordingly no expenses of administration of the Chapter 11 Cases or any future proceeding or case which may result from the Chapter
11 Cases, including liquidation in bankruptcy or other proceedings under the Bankruptcy Code, shall be charged against the Transferred Receivables, or the proceeds thereof pursuant to section 506(c) of the Bankruptcy Code or otherwise, without the
prior written consent of the Agent and no such consent shall be implied from any other action, inaction, or acquiescence by the Agent. To the extent the Agent seeks to exercise, upon an Event of Termination (as such term is defined in the
Receivables Agreements), any rights and remedies to the extent provided for in the Receivables Agreements against any Debtor, prior to seeking to lift the automatic stay to exercise such enforcement rights or remedies against such Debtor, the Agent
shall provide five (5) business days’ written notice (by facsimile, telecopy, electronic mail or otherwise) to (a) counsel for the Debtors: (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas,
New York, New York 10019-6064, Attention: Kelley A. Cornish; (ii) Stikeman Elliott LLP, 1155 René-Lévesque Blvd. West, Suite 4000, Montréal, QC H3B 3V2, Canada, Attention: Guy Martel; and (iii) Young
Conaway Stargatt & Taylor, LLP, The Brandywine Building, 1000 West Street, 17th Floor, Wilmington, Delaware 19801, Attention: Pauline K. Morgan; (b)

  

 20 

 
counsel for the official committee of unsecured creditors in the Chapter 11 Cases (the “Creditors’ Committee”) (if retained); and (c) counsel for the United States
Trustee. For the avoidance of doubt, the foregoing notice requirement shall in no event apply to any exercise by the Agent of any rights and remedies to the extent provided for in the Receivables Agreements against ACI Funding or the assets of ACI
Funding. 
 24. The stipulations, admissions and releases contained in Paragraph 3 and Paragraph 4
of this Order, shall be binding on the Debtors and any successor thereto under all circumstances and for all purposes and the Debtors are deemed to have irrevocably waived and relinquished all rights to contest any such stipulation, admission or
release as of the date of entry of this Order. The stipulations, admissions and releases contained in Paragraph 3 and Paragraph 4 of this Order, shall be binding on all other parties in interest, including, without limitation, any
official committee that may be appointed in these chapter 11 cases, under all circumstances and for all purposes unless, and solely to the extent that, (a) any party in interest commences a contested matter or adversary proceeding challenging
such stipulation, admission or release or asserting any claims or causes of action on behalf of the Debtors’ estates against the Released Parties, in each case no later than the later of (1) sixty (60) days after the formation of the
Creditors’ Committee, or (2) seventy-five (75) days after the Filing Date. If no such contested matter or adversary proceeding is timely commenced then, without further order of the Court, all of the stipulations, admissions and
releases contained in Paragraph 3 and Paragraph 4 of this Order, shall be binding on all parties in interest in these chapter 11 cases and shall not be subject to challenge or modification in any respect. If any such

  

 21 

 
contested matter or adversary proceeding is timely commenced, the stipulations, admissions and releases shall nonetheless remain binding on all parties in interest and shall be preclusive except
to the extent that such stipulation, admission or release is expressly challenged pursuant to such timely commenced contested matter or adversary proceeding. 
 25. Nothing in this Order vests or confers on any person (as defined in the Bankruptcy Code), including the Creditors’ Committee, standing or authority to pursue any cause of
action belonging to the Debtors or their estates. 
 26. This Order shall constitute findings of fact and
conclusions of law and shall take effect and be fully enforceable nunc pro tunc to the Petition Date immediately upon entry hereof. Notwithstanding Bankruptcy Rules 4001(a)(3), 6004(h), 6006(d), 7062 or 9024 or any other
Bankruptcy Rule, or Rule 62(a) of the Federal Rules of Civil Procedure, this Order shall be immediately effective and enforceable upon its entry and there shall be no stay of execution or effectiveness of this Order. Specifically, pursuant to
this Order, the ten day automatic stay periods of Bankruptcy Rules 6004(g) and 6006(d) are expressly inapplicable to this Order and the transactions including, without limitation, transfers contemplated hereby, and accordingly, this Order shall
become operative immediately upon entry on the docket. 
 27. To the extent that any of the provisions of this
Order may be inconsistent with the terms and conditions of the Financing Agreements, the provisions of this Order shall govern. 
  

 22 

 28. On or before the third business day following entry of this Order, the
Debtors shall mail copies of a notice of the entry of this Order, together with a copy of this Order and a copy of the Motion (which shall constitute adequate notice of the Final Hearing), to the parties having been given notice of the Interim
Hearing, and to any other party that has filed a request for notices with this Court and to any Creditors’ Committee after the same has been appointed, or Creditors’ Committee counsel, if the same shall have been appointed. The notice of
entry of this Order shall state that any party in interest objecting to the relief sought at the Final Hearing shall serve and file written objections with the Clerk, United States Bankruptcy Court for the District of Delaware no later than 4:00
p.m. on                     , 2009. Objections shall be served so that the same are actually received on or before such date by: (a) counsel for
the Debtors: (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York 10019-6064, Attention: Kelley A. Cornish; (ii) Stikeman Elliott LLP, 1155 René-Lévesque Blvd.
West, Suite 4000, Montréal, QC H3B 3V2, Canada, Attention: Guy Martel; and (iii) Young Conaway Stargatt & Taylor, LLP, The Brandywine Building, 1000 West Street, 17th Floor, Wilmington, Delaware 19801, Attention:
Pauline K. Morgan; (b) counsel for the Creditors’ Committee (if retained); (c) counsel for the Agent and Citibank, (i) Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, Attention: Michael J.
Crames and Bradley Y. Smith; (ii) Kaye Scholer LLP, 425 Park Avenue, New York, New York 10022, Attention: Eric Marcus and Benjamin Mintz and (iii) Richards Layton & Finger, One Rodney Square, 920 North King Street,
Wilmington, Delaware 19801, Attention: Mark D. Collins and John H. Knight; (d)

  

 23 

 
counsel for the United States Trustee, 844 King Street, Room 2207, Attention: David Klauder; and (e) Office of the Clerk of the Court, 824 Market Street, Third Floor, Wilmington,
Delaware 19801. 
 29. The Final Hearing is scheduled for
                    , 2009 at                  .m. before this Court.

  

			
	Dated:	 	 Wilmington, Delaware

		 	                     , 2009

  

	
	  

	
	 UNITED STATES BANKRUPTCY JUDGE

  

 24 

 EXHIBIT B 
 Form of US Final Order 
 IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF DELAWARE 
 In re: 
 ABITIBIBOWATER INC., et al.,1 
 Debtors.            ) 
 ) 

) 
 ) 
 ) 
 ) 
 ) 
 ) 
 Chapter 11 
 Case No. 09-11296 (KJC)

 (Joint Administration Pending) 
 RE: DOCKET NO. 25 
  

	1	 The debtors-in-possession in these cases, along with the last four digits of each Debtor’s federal or Canadian tax identification number, are:
AbitibiBowater Inc. (6415), AbitibiBowater US Holding 1 Corp. (6050), AbitibiBowater US Holding LLC (N/A), AbitibiBowater Canada Inc. (3225), Abitibi-Consolidated Alabama Corporation (4396), Abitibi-Consolidated Corporation (9050),
Abitibi-Consolidated Finance LP (4528), Abitibi Consolidated Sales Corporation (7144), Alabama River Newsprint Company (7247), Augusta Woodlands, LLC (0999), Bowater Alabama LLC (7106), Bowater America Inc. (8645), Bowater Canada Finance Corporation
(8810), Bowater Canadian Forest Products Inc. (2010), Bowater Canadian Holdings Incorporated (6828), Bowater Canadian Limited (7373), Bowater Finance Company Inc. (1715), Bowater Finance II LLC (7886), Bowater Incorporated (1803), Bowater LaHave
Corporation (5722), Bowater Maritimes Inc. (5684), Bowater Newsprint South LLC (1947), Bowater Newsprint South Operations LLC (0186), Bowater Nuway Inc. (8073), Bowater Nuway Mid-States Inc. (8290), Bowater South American Holdings Incorporated
(N/A), Bowater Ventures Inc. (8343), Catawba Property Holdings, LLC (N/A), Coosa Pines Golf Club Holdings LLC (8702), Donohue Corp. (9051), Lake Superior Forest Products Inc. (9305) and Tenex Data Inc. (5913). The corporate headquarters of the
debtors-in-possession is located at, and the mailing address for each debtor-in-possession is, 1155 Metcalfe Street, Suite 800, Montreal, Quebec H3B 5H2, Canada. 

 EXHIBIT B-1 

 FINAL ORDER PURSUANT TO SECTIONS 
 105, 362(d), 363(b)(l), 363(f), 363(m), 364(c)(l), 364(e) AND 365 
 OF THE BANKRUPTCY CODE (1) AUTHORIZING 
 CERTAIN
DEBTORS TO CONTINUE SELLING RECEIVABLES AND 
 RELATED RIGHTS PURSUANT TO AN AMENDED SECURITIZATION 
 FACILITY, (2) MODIFYING THE AUTOMATIC STAY AND (3) 
 GRANTING OTHER RELATED RELIEF 
 Upon the motion
dated April 16, 2009 (the “Motion”)2
of the above-captioned Debtors seeking an order of this Court, pursuant to sections 362(d), 363(b)(l), 363(f), 363(m), 364(c)(l), 364(e) and 365 of title 11 of the United States Code (the “Bankruptcy Code”): 
 (i) authorizing Abitibi Consolidated Sales Corporation (“ACSC”) and Abitibi-Consolidated
Inc., a Chapter 15 debtor3 (“ACI” and
together with ACSC the “Originators”) to enter into, and authorizing ACSC to cause Abitibi-Consolidated U.S. Funding Corp., a wholly-owned subsidiary of ACSC that is not a Debtor (“ACI Funding”) to enter into an
Omnibus Amendment, substantially in the form attached to the Motion (the “Amendment”), to (a) that certain Amended 
  

	2	 Capitalized terms used but not otherwise defined herein shall have the same meanings assigned thereto in the Motion. 

	3	 Notwithstanding anything in this Order to the contrary, this Order does not grant authority to ACI and nothing in this Order limits the jurisdiction
of the Quebec Superior Court of Justice (Commercial Division) (the “Canadian Court”) over ACI or limits oversight of the monitor appointed in the proceeding of Abitibi-Consolidated Inc. under Canada’s Companies’
Creditors Arrangement Act, R.S.C. 1985, c. C-36 (the “Canadian Proceeding”). References in this Order to ACI describe the Chapter 15 relief granted to ACI pursuant to this Court’s recognition of the Securitization
Provisions (as defined in the Omnibus Amendment) of the initial order of the Canadian Court entered in the Canadian Proceeding and grant of other Chapter 15 relief pursuant to the “Order Granting Provisional Relief” and the “Order
Granting Recognition and Relief in Aid of Foreign Proceeding Pursuant to 11 U.S.C. §§1517, 1520, and 1520”, in each case, upon entry by this Court in the Chapter 15 case of In re Abitibi-Consolidated Inc., et al.,
Case No. 09-11348 (KJC). 

  

 2 

 
and Restated Receivables Purchase Agreement, dated as of January 31, 2008 (as heretofore amended the “RPA”) among ACI Funding, Eureka Securitisation, plc
(“Eureka”), Citibank, N.A. (“Citibank”), Citibank, N.A., London Branch (the “Agent”), ACI, in its capacity as Subservicer and an Originator, and ACSC, in its capacity as Servicer and an Originator
and (b) that certain Amended and Restated Purchase and Contribution Agreement, dated as of January 31, 2008 (as heretofore amended the “PCA”, the RPA and PCA, each as amended by the Amendment, are collectively hereinafter
referred to as the “Receivables Agreements”) among ACI and ACSC as Sellers and ACI Funding as Purchaser, which Amendment shall, among other things, waive certain defaults under the Receivables Agreements; 
 (ii) authorizing the Originators to continue selling and/or contributing Receivables (as defined in the PCA)
to ACI Funding in accordance with the terms of the PCA (Receivables sold or contributed to ACI Funding, whether before or after the Filing Date (as defined below), together with the Related Security (as defined in the PCA) being referred to herein
as “Transferred Receivables”); 
 (iii) authorizing ACI, ACSC and the other
Debtors, as applicable, to otherwise perform or continue to perform, and authorizing ACSC to cause ACI Funding, as a wholly owned subsidiary of ACSC, to perform or continue to perform their respective obligations under each of the Receivables
Agreements (including without limitation servicing obligations) and each of the other instruments and agreements related to the securitization facility contemplated by

  

 3 

 
the Receivables Agreements, whether currently effective or hereafter entered into (such other instruments and agreements together with the Receivables Agreements and the Amendment, the
“Financing Agreements”), including notably, but without limiting the generality of the foregoing: (a) the Undertaking Agreement (Servicer) dated as of October 27, 2005 by ACI in favor of Eureka, Citibank and the other
Banks (as defined in the RPA) that are party to the RPA (as heretofore amended, including, without limitation, by Second Amendment of Undertaking Agreement (Servicer) dated as of January 31, 2008); (b) the Undertaking Agreement
(Originator) dated as of October 27, 2005 by ACI in favor of ACI Funding (as heretofore amended, including, without limitation, by Second Amendment of Undertaking Agreement (Originator) dated as of January 31, 2008); (c) the Deposit
Account Control Agreement dated as of January 31, 2008 among ACI Funding, ACI, ACSC, Citibank and the Agent, as amended (the “Deposit Account Control Agreement”); (d) the Blocked Accounts Agreement dated as of
October 27, 2005 among ACI, ACSC, the Agent, Royal Bank of Canada and ACI Funding, as amended (the “Blocked Accounts Agreement”); (e) the Agreement Re: Pledged Deposit Accounts dated as of October 27, 2005 among ACSC,
ACI, ACI Funding, the Agent and LaSalle Bank National Association (predecessor in interest to Bank of America, N.A.), as amended (the “Pledged Deposit Accounts Agreement”); (f) the Second Amended and Restated Four Party
Agreement for Sold Accounts (General) dated as of January 31, 2008 among Export Development Canada and Compagnie Francaise d’Assurance pour

  

 4 

 
le Commerce Exterieur – Canada Branch, ACI, ACI Funding, the Agent and Citibank, as amended; (g) the Intercompany Agreement dated as of December 20, 2007 between ACI and ACSC, as
amended; (h) the Accounts Receivable Policy (Shipments) General Terms and Conditions, plus the Coverage Certificate effective September 1, 2008 (together with all schedules and endorsements thereto) issued by Export Development Canada and
Compagnie Francaise d’Assurance pour le Commerce Exterieur - Canada Branch to ACI, as amended; and (i) the fee letters dated April 1, 2009 between ACI Funding and the Agent; 
 (iv) pursuant to section 364(c)(1) of the Bankruptcy Code, granting ACI Funding, the Agent, Eureka and
Citibank priority in payment with respect to the obligations of the Originators under the Financing Agreements over any and all administrative expenses of the kinds specified in sections 503(b) and 507(b) of the Bankruptcy Code, other than in
respect of the Carve-Out (as defined below); 
 (v) scheduling an interim hearing (the
“Interim Hearing”) on the Motion to consider entry of an Interim Order pursuant to sections 105, 362(d), 363(b)(l), 363(f), 363(m), 364(c)(l), 364(e) and 365 of the Bankruptcy Code (1) Authorizing certain Debtors to Continue
Selling Receivables and Related Rights Pursuant to an Amended Securitization Facility, (2) Modifying the Automatic Stay and (3) Granting Other Related Relief (the “Interim Order”) pursuant to Rule 4001 of the Federal Rules
of Bankruptcy Procedure (the “Bankruptcy Rules”); and 
 (vi) requesting that a
final hearing (the “Final Hearing”) be scheduled, and that notice procedures in respect of the Final Hearing be established, by this

  

 5 

 
Court to consider entry of a final order (this “Final Order”) authorizing on a final basis, among other things, the Amendment and continued performance of the Debtors’
respective obligations under the Financing Agreements, and granting other related relief; 
 and it appearing that the relief
requested in the Motion is in the best interests of the Debtors’ estates, their creditors, and other parties-in-interest; and the Court having considered the Motion and the documents related thereto, and after due deliberation and sufficient
cause appearing therefor; due and appropriate notice of the Interim Hearing, the Final Hearing and the Motion, and the relief requested therein having been served by the Debtors on the following parties, or, in lieu thereof, their counsel:
(i) the Office of the United States Trustee; (ii) the United States Securities and Exchange Commission; (iii) the Internal Revenue Service; (iv) counsel to the agents for the Debtors’ prepetition secured bank facilities;
(v) counsel to the agent for the Debtors’ proposed postpetition lenders; (vi) the indenture trustees for each series of the Debtors’ prepetition notes; (vii) the Agent; (viii) the monitor appointed in the Canadian
Proceeding; (ix) the parties identified on the Debtors’ consolidated list of thirty-five (35) largest unsecured creditors; (x) the Debtors’ primary cash management banks; (xi) the Debtors’ primary lockbox banks;
(xii) the Environmental Protection Agency and (xiii) other than with respect to notice of the Interim Hearing, counsel to the official committee of unsecured creditors in the Chapter 11 Cases (the “Creditors’
Committee”); the Interim Order having been entered at the Interim Hearing; the Final Hearing having been held on May 27, 2009; and all objections or responses, if any, to the Motion having been withdrawn or overruled

  

 6 

 
either prior to the Final Hearing, or at the Final Hearing; and upon the record made by the Debtors at the Interim Hearing and the Final Hearing and after due deliberation and consideration and
sufficient cause appearing therefor; 
 THE COURT MAKES THE FOLLOWING FINDINGS OF FACT AND CONCLUSIONS OF LAW:

 1. On April 16, 2009 (the “Filing Date”), the Debtors filed voluntary petitions for
relief with this Court under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Cases”). The Debtors are continuing in possession of their property, and operating and managing their businesses, as debtors in possession pursuant to
sections 1107 and 1108 of the Bankruptcy Code. 
 2. This Court has jurisdiction over these proceedings and the
parties and the property of the Debtors affected hereby pursuant to 28 U.S.C. §§ 157(b) and 1334. Venue is proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409. 
 3. Subject to Paragraph 24, the Debtors hereby forever waive and release any and all “claims” (as such term
is defined in the Bankruptcy Code), counterclaims, causes of action, defenses or setoff rights, in each case arising from or related to any acts or transactions occurring prior to the Filing Date against ACI Funding, the Agent, Citibank, Eureka and
each of their respective affiliates, agents, officers, directors, employees and attorneys (collectively, the “Released Parties”), whether arising at law or in equity, including any recharacterization, subordination, avoidance or
other claim arising under or pursuant to section 105 or chapter 5 of the Bankruptcy Code or under any other similar provisions of applicable state or federal law (collectively, the “Released Claims”);

  

 7 

 
provided, however, that nothing in the Interim Order or this Final Order releases any party thereto from their contractual obligations under the Financing Agreements (which shall
hereinafter be deemed to include the Waiver Agreement dated as of April 28, 2009) or in any way affects their property interests, as provided in the Financing Agreements, in the Transferred Receivables or the proceeds thereof; provided further,
however, that nothing in the Interim Order or this Final Order releases any of the Released Parties from any claims, counterclaims or causes of action assertable by any Debtor in connection with any termination, default or failure to perform under
that certain Master Agreement dated as of July 2, 2003, as amended, supplemented or otherwise modified from time-to-time (including, but not limited to, the confirmations dated June 17, 2004 and June 28, 2004), between Citibank Canada
and Abitibi-Consolidated Company of Canada. The Debtors further covenant not to sue the Released Parties on account of any Released Claims. 
 4. The Debtors admit, stipulate and agree that transfers of the Transferred Receivables by the Originators pursuant to the provisions of the Receivables Agreements whether occurring prior to or subsequent
to the Filing Date, constitute true sales or true contributions under applicable non-bankruptcy law and were by the Interim Order and hereby are deemed true sales or true contributions, and were or will be for fair consideration and are not
otherwise voidable or avoidable. The Debtors admit, stipulate and agree that upon the transfer of the Receivables to ACI Funding, the Receivables did (with respect to transfers occurring prior to the Filing Date) and will (with respect to the
transfers occurring on or after the Filing Date) become the sole property of ACI Funding, and none of the Debtors, nor any creditors of the Debtors, shall retain any ownership

  

 8 

 
rights, claims, liens or interests in or to the Transferred Receivables, or any proceeds thereof pursuant to section 541 of the Bankruptcy Code, pursuant to any theory of substantive
consolidation or otherwise. The Debtors admit, stipulate and agree that upon the transfer by each of the Originators pursuant to the provisions of the Financing Agreements, neither the Transferred Receivables, nor the proceeds thereof, shall
constitute property of the bankruptcy estates of any of the Debtors, notwithstanding any intentional or inadvertent deposit of any proceeds of the Transferred Receivables in bank accounts owned or controlled by any of the Debtors. 
 5. The Debtors seek access to the funding proposed to be provided by the Financing Agreements in order to assure sufficient
available sources of working capital and financing to carry on the operation of their businesses. Specifically, continued performance of the Financing Agreements will permit the Originators to continue transferring the Receivables to ACI Funding,
allowing the Debtors to continue their prepetition practice of converting Receivables to cash as soon as possible to provide cash flow necessary for various business purposes. The Debtors’ ability to maintain business relationships with their
vendors, suppliers and customers, to pay their employees, to purchase and supply new inventory and otherwise finance their operations, is essential to the Debtors’ continued viability. In addition, the Debtors’ need for financing is
immediate. In the absence of the proposed financing, serious and irreparable harm to the Debtors’ business operations and their estates could occur, which may include third parties declining to conduct business dealings with the Debtors. The
preservation, maintenance and enhancement of the going concern value of the Debtors are of the

  

 9 

 
utmost significance and importance to a successful reorganization of the Debtors under chapter 11 of the Bankruptcy Code. 
 6. Given their current financial condition, financing arrangements and capital structure, the Debtors cannot obtain unsecured credit allowable under section 503(b)(1) of the
Bankruptcy Code as an administrative expense. Financing on a postpetition basis is not otherwise available without certain Debtors granting, pursuant to section 364(c)(1) of the Bankruptcy Code, claims having priority over any and all administrative
expenses of the kinds specified in sections 503(b) and 507(b) of the Bankruptcy Code, other than as described below in respect of the Carve-Out. 
 7. Under the circumstances, the notice given by the Debtors of the Motion, the relief requested therein, the Interim Hearing and the Final Hearing constitutes appropriate, due and sufficient notice
thereof and complies with Bankruptcy Rule 4001(b) and (c) and the Local Bankruptcy Rules, and no further notice of the relief sought at the Interim Hearing and the Final Hearing and the relief granted herein is necessary or required 

8. Entry into the Amendment and continued performance of the Debtors’ respective obligations under the Financing
Agreements is in the best interests of the Debtors and their estates, and the Debtors were by the Interim Order and hereby are expressly authorized and empowered to enter into the Amendment and to perform and do or continue to perform and do, as
applicable, all acts that may be required in connection with the Financing Agreements. Each currently effective Financing Agreement constitutes, and upon execution and delivery thereof, each newly executed Financing

  

 10 

 
Agreement shall constitute, a valid and binding obligation of each Debtor party thereto, enforceable against each such Debtor in accordance with its terms. The terms and conditions of the
Financing Agreements have been negotiated in good faith and at arm’s length and the transfers made or to be made and the obligations incurred or to be incurred shall be deemed to have been made for fair or reasonably equivalent value and in
good faith (and without intent to “hinder, delay or defraud any creditor” of the Debtors) as those terms are used in the Bankruptcy Code and the transactions contemplated thereunder shall be deemed to have been made in “good
faith,” as that term is used in sections 363(m) and 364(e) of the Bankruptcy Code and in express reliance upon the protections offered by sections 363(m) and 364(e) of the Bankruptcy Code. The Agent shall be entitled, derivatively, to assert
any and all of the rights of ACI Funding, including, without limitation, those arising under section 363(m) of the Bankruptcy Code, arising as a result thereof. 
 Based upon the foregoing findings and conclusions, and upon the record made at the Interim Hearing and the Final Hearing, and good and sufficient cause appearing therefore;

 IT IS HEREBY ORDERED that: 
 9. The Motion is granted on a final basis in accordance with the terms of this Final Order. Any objections to the Motion with respect to the entry of this Final Order that have not
been withdrawn, waived or settled, and all reservations of rights included therein, are hereby denied and overruled. 
  

 11 

 10. ACI, ACSC and the other Debtors, as applicable, were by the Interim
Order and hereby are expressly authorized and empowered (i) to execute and deliver, and ACSC was by the Interim Order and hereby is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to execute and deliver the Amendment and
all related documents and instruments to be executed and delivered in connection therewith, and the Facility Termination Date (as defined in the RPA and in the PCA) and the Commitment Termination Date (as defined in the RPA) shall be deemed not to
have occurred as a consequence of the filing of the Chapter 11 Cases, ACI’s Chapter 15 case or the Canadian Proceeding or the taking of corporate action by AbitibiBowater Inc. (“ABI”), ACI or ACSC to authorize any of the
foregoing or the failure of ABI, ACI or ACSC to pay any debts that are otherwise stayed by any of the foregoing or the written admission by ABI, ACI or ACSC of its inability to pay such debts; (ii) to transfer, and shall be deemed to have
transferred, free and clear of all liens, claims, encumbrances and other interests pursuant to sections 363(b)(1) and (f) of the Bankruptcy Code, the Receivables to ACI Funding, without recourse (except to the limited extent provided in the
Financing Agreements); (iii) to otherwise perform or continue to perform, and ACSC was by the Interim Order and hereby is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to otherwise perform or continue to perform, as
applicable, their respective obligations under the Financing Agreements and (iv) to make, execute and deliver, and ACSC was by the Interim Order and hereby is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to make,
execute and deliver all instruments and documents and perform all other acts (including, without limitation, the

  

 12 

 
perfection of ACI Funding’s ownership interest in the Transferred Receivables) that may be required in connection with the Financing Agreements and the transactions contemplated thereby; it
being expressly contemplated that pursuant to the terms of the Financing Agreements, ACI and ACSC were by the Interim Order and hereby shall be expressly authorized and empowered pursuant to section 363(b)(1) of the Bankruptcy Code to service,
administer and collect the Transferred Receivables on behalf of ACI Funding pursuant to the Financing Agreements, and with respect to the Originators and ACI Funding, each were by the Interim Order and hereby shall be expressly authorized and
empowered pursuant to section 363(b)(l) of the Bankruptcy Code to make, execute and deliver all instruments and documents and perform all other acts (including, without limitation, the perfection of ACI Funding’s ownership interest in the
Transferred Receivables) that may be required in connection with the Financing Agreements and the transactions contemplated thereby. Moreover, ACI Funding shall be entitled to the full benefits of section 363(m) of the Bankruptcy Code in connection
with any transfers made pursuant to the provisions of the Financing Agreements, with the Agent being entitled to assert ACI Funding’s rights thereunder derivatively. ACI, ACSC and the other Debtors, as applicable, are hereby further expressly
authorized and empowered to make, execute and deliver, and ACSC is authorized to cause ACI Funding, as a wholly owned subsidiary of ACSC, to make, execute and deliver one or more non-material amendments to the Financing Agreements in such form as
the parties thereto may agree, expressly including any amendment to Section 7.01(ff) of the RPA to extend the term of the RPA, it being understood that no further approval of the Court shall be required for any such

  

 13 

 
non-material amendments to the Financing Agreements, provided that the Debtors shall send any such amendments to counsel for the Creditors’ Committee, counsel for the ACCC 364 day Term
Facility lenders and counsel for the United States Trustee promptly upon their execution. All indemnification and other obligations of the Originators and any other Debtors owing to the Agent, Eureka and Citibank under the Financing Agreements, the
Interim Order and this Final Order are hereinafter referred to as the “Agent Obligations.” All obligations of the Originators and any other Debtors owing to ACI Funding under the Financing Agreements, the Interim Order and this
Final Order are hereinafter referred to as the “Receivables Obligations.” For the avoidance of doubt, the Agent Obligations and the Receivables Obligations do not include any amounts owing to the Agent or Citibank or their
respective affiliates under or in connection with (i) any swap claims, (ii) any credit agreement in existence prior to the Filing Date not related to the Financing Agreements or (iii) any other indebtedness not related to the
Financing Agreements. Notwithstanding the foregoing, the Agent and Citibank shall be entitled to all of the rights and remedies accorded to them pursuant to the “safe harbor” provisions of the Bankruptcy Code. 
 11. The Originators and the other Debtors were by the Interim Order and hereby are authorized to use the proceeds of the
arrangements contemplated by the Financing Agreements in the operation of the Debtors’ businesses, provided, that the use of the proceeds is consistent with the terms of the Financing Agreements, the Interim Order and this Final Order or
as may otherwise be agreed in writing by the Agent. 
  

 14 

 12. In accordance with section 364(c)(1) of the Bankruptcy Code, the Agent
Obligations and the Receivables Obligations shall constitute allowed senior administrative expense claims against each of the Originators (the “Superpriority Claims”) with priority over any and all administrative expenses, adequate
protection claims, diminution claims and all other claims against the Originators, now existing or hereafter arising, of any kind whatsoever, including, without limitation, all administrative expenses of the kind specified in sections 503(b) and
507(b) of the Bankruptcy Code, and over any and all administrative expenses or other claims arising under sections 105, 326, 328, 330, 331, 503(b), 507(a), 507(b), 546, 726, 1113 or 1114 of the Bankruptcy Code, whether or not such expenses or
claims may become secured by a judgment lien or other nonconsensual lien, levy or attachment, which allowed claims shall for purposes of section 1129(a)(9)(A) of the Bankruptcy Code be considered administrative expenses allowed under
section 503(b) of the Bankruptcy Code, and which shall be payable from and have recourse to all pre- and post-petition property of the Originators and all proceeds thereof, subject only to the payment of the Carve-Out to the extent specifically
provided for herein. Subject only to the Carve-Out, no cost or expense of administration asserted against any Debtor with obligations arising under the Financing Agreements under sections 105, 364(c)(1), 503(b), 507(b) of the Bankruptcy Code, or
otherwise, including those resulting from the conversion of any of the Chapter 11 Cases pursuant to section 1112 of the Bankruptcy Code, shall be senior to, or pari passu with, the Superpriority Claims of the Agent, Citibank, Eureka or ACI
Funding arising out of the Agent Obligations and the Receivables Obligations, as applicable. The Agent shall be

  

 15 

 
permitted to enforce the Superpriority Claims in respect of the Receivables Obligations on a derivative basis on behalf of ACI Funding. The Superpriority Claims shall be entitled to the full
protection of section 364(e) of the Bankruptcy Code in the event that this Final Order or any provision hereof is vacated, reversed or modified, on appeal or otherwise. 
 13. Any provision of the Interim Order, this Final Order or the Financing Agreements to the contrary notwithstanding, the Superpriority Claims shall be subject and subordinate to a
carve-out (the “Carve-Out”) for (a) the payment of allowed professional fees and disbursements incurred by the professionals retained, pursuant to sections 327, 328 or 1103(a) of the Bankruptcy Code, by the Debtors and the
Creditors’ Committee and any disbursements of any member of the Creditors’ Committee in an aggregate amount not to exceed (i) $7,500,000 in the aggregate in respect of professional fees and disbursements incurred following the
occurrence and during the pendency of an Event of Termination (as such term is defined in the Receivables Agreements) or an event of termination or event of default under any other postpetition credit facility of the Debtors (each a
“Carve-Out Event”) plus (ii) professional fees and disbursements incurred prior to the occurrence of a Carve-Out Event to the extent subsequently allowed plus (iii) professional fees and disbursements
incurred from and after the date on which the Carve-Out Event is no longer continuing to the extent subsequently allowed, and (b) quarterly fees required to be paid pursuant to 28 U.S.C. § 1930(a)(6) and any fees payable to the Clerk of
the Bankruptcy Court; provided, however, that no portion of the Carve-Out or proceeds of the Financing Agreements shall be used to pay professional

  

 16 

 
fees and disbursements incurred in connection with (i) asserting any claims or causes of action against the Agent, Citibank, Eureka or ACI Funding or any of their respective successors and
assigns and/or challenging or raising any defense to the Agent Obligations or Receivables Obligations or other obligations under the Financing Agreements, (ii) asserting or prosecuting any action for preferences, fraudulent conveyances, or
other avoidance power claims against the Agent, Citibank, Eureka or ACI Funding or any of their respective successors and assigns, (iii) objecting to or contesting the true sale nature of the sale and/or contribution of the Transferred
Receivables or (iv) objecting to or contesting in any manner, or raising any, defenses to the validity, perfection, priority, extent or enforceability of the Agent Obligations or the Receivables Obligations under or in connection with the
Financing Agreements, provided, further, however, that the Carve-Out may include professional fees and disbursements for investigation of such claims, causes of action or defenses in an aggregate amount not to exceed $50,000. As long as no Carve-Out
Event shall have occurred and be continuing, the Debtors shall be permitted to pay compensation and reimbursement of expenses, to the extent permitted by the Bankruptcy Court payable under sections 330 and 331 of the Bankruptcy Code, as the same may
be payable, and the amounts so paid, or accrued but unpaid, shall not reduce the Carve-Out; provided, however, that, upon the occurrence and during the continuance of a Carve-Out Event, the foregoing permission to pay allowed compensation and to
reimburse expenses shall be limited to the professional fees and disbursements incurred prior to the occurrence of the Carve-Out Event plus the Carve-Out. 
  

 17 

 14. If the amount of the Carve-Out or any payment made pursuant to any
carve-out under any other postpetition credit facility of the Debtors satisfied with the assets of any Originator exceeds the product of (x) the aggregate amount paid pursuant to the Carve-Out or such other carve-out, which amount shall in no
event exceed $7,500,000 and (y) such Originator’s net asset value expressed as a percentage of the net asset value of the Debtors taken as a whole, such Originator shall have a right of contribution against the Debtors that are not
Originators in an amount equal to such excess (or in such other amount as the Bankruptcy Court may deem appropriate under the circumstances) and with the same relative priority as the Carve-Out, and shall be subrogated to the rights of any claimant
under the Carve-Out in respect of such right of contribution. 
 15. Pursuant to the Financing Agreements, ACI
Funding may deduct from the purchase price of Transferred Receivables amounts which are payable by the Originators to ACI Funding in respect of violations of certain representations and warranties and dilution items (all of such amounts,
collectively, the “Repayment Amounts”), and the automatic stay provisions of section 362 of the Bankruptcy Code were by the Interim Order and hereby are modified to the extent necessary so as to permit the deduction of such amounts
by ACI Funding. The payment by ACI Funding of the purchase price for Receivables which are subsequently reduced by such Repayment Amounts constitutes an extension of credit to the applicable Originators. 
 16. The performance by the Originators and ACI Funding of their respective obligations under the Financing Agreements, and
the consummation of the transactions contemplated by the Financing Agreements, and the conduct by the Originators and ACI

  

 18 

 
Funding of their respective businesses, whether occurring prior to or subsequent to the Filing Date, do not, and shall not, provide a basis for a substantive consolidation of the assets and
liabilities of the Originators, or any of them, with the assets and liabilities of ACI Funding or a finding that the separate corporate identities of the Originators and ACI Funding may be ignored. Notwithstanding any other provision of the Interim
Order or this Final Order, the Agent, Citibank, Eureka and the other parties thereto have agreed to enter into the Financing Agreements in express reliance on ACI Funding being a separate and distinct legal entity, with assets and liabilities
separate and distinct from those of any of the Debtors. 
 17. Pursuant to the Financing Agreements and as
described in the Motion, ACI Funding has agreed to pay, and ACSC was by the Interim Order and hereby is authorized and directed (without the necessity of any further application being made to, or order being obtained from, this Court) to cause ACI
Funding, as a wholly owned subsidiary of ACSC, to pay certain fees in consideration of the Agent’s and Citibank’s services in structuring and negotiating Amendment No. 4 to Amended and Restated Receivables Purchase Agreement and
Waiver Agreement dated as of April 1, 2009, Amendment No. 2 to Amended and Restated Purchase and Contribution Agreement and Waiver Agreement dated as of April 1, 2009, and the Financing Agreements. 
 18. Collections of Transferred Receivables and other funds that are subject to the Deposit Account Control Agreement, the
Blocked Accounts Agreement or the Pledged Deposit Accounts Agreement shall be processed and transferred pursuant to such agreements, and such agreements were by the Interim Order and hereby are approved in

  

 19 

 
all respects and each deposit bank party thereto was by the Interim Order and hereby is authorized and directed to comply therewith. 
 19. The Financing Agreements and the provisions of the Interim Order and this Final Order shall be binding upon all parties
in interest in these Cases, including, without limitation, the Debtors, ACI Funding, Eureka, Citibank, the Agent, ACSC and ACI and their respective successors and assigns (including any chapter 7 or chapter 11 trustee hereinafter appointed or
elected for the estate of any of the Originators, an examiner appointed pursuant to section 1104 of the Bankruptcy Code or any other fiduciary appointed as a legal representative of any of the Originators or with respect to the property of the
estate of any of the Originators) and shall inure to the benefit of the Debtors, ACI Funding, Eureka, Citibank, the Agent, ACSC and ACI. 
 20. ACI Funding, Citibank and the Agent shall not (i) be deemed to be in control of the operations of the Debtors, (ii) owe any fiduciary duty to the Debtors, their respective creditors,
shareholders or estates or (iii) be deemed to be acting as a “responsible person” or “owner or operator” with respect to the operation or management of the Debtors (as such terms, or any similar terms, are used in the United
States Comprehensive Environmental Response, Compensation and Liability Act, 29 U.S.C. §§ 9601, et seq., as amended, or any similar federal or state statute). 
 21. No rights of any entity in connection with a contract or transaction of the kind listed in sections 555, 556, 559,
560 or 561 of the Bankruptcy Code, whatever they might or might not be, are affected by the provisions of the Interim Order or this Final Order. 
  

 20 

 22. If any or all of the provisions of the Interim Order or this Final Order
are hereafter reversed, modified, vacated or stayed, such reversal, stay, modification or vacation shall not affect (x) the validity of any transfer of the Receivables made pursuant to the provisions of the Financing Agreements prior to written
notice to the Agent and ACI Funding of the effective date of such reversal, stay, modification or vacation, (y) the validity of any obligation or liability incurred by each of the Originators prior to written notice to the Agent and ACI Funding
of the effective date of such reversal, stay, modification or vacation or (z) the validity and enforceability of any priority authorized or created by the Interim Order, hereby or pursuant to the Financing Agreements. Notwithstanding any such
reversal, stay, modification or vacation, any indebtedness, obligations or liabilities incurred, or payment made, by any of the Originators, prior to written notice to the Agent and ACI Funding of the effective date of such reversal, stay,
modification or vacation, shall be governed in all respects by the original provisions of the Interim Order and this Final Order, and the Agent, Citibank, Eureka and ACI Funding shall be entitled to all the rights, remedies, privileges and benefits,
granted herein and pursuant to the Financing Agreements with respect to all such indebtedness, obligations or liabilities (including, without limitation, with respect to the manner in which the proceeds of the Transferred Receivables are applied)
and to the full benefits of sections 363(m) and 364(e) of the Bankruptcy Code in connection therewith. 
 23.
Upon transfer to ACI Funding, the Transferred Receivables are and shall be the property of ACI Funding and not property of the estates of any of the Debtors and accordingly no expenses of administration of the Chapter 11 Cases or any future

  

 21 

 
proceeding or case which may result from the Chapter 11 Cases, including liquidation in bankruptcy or other proceedings under the Bankruptcy Code, shall be charged against the Transferred
Receivables, or the proceeds thereof pursuant to section 506(c) of the Bankruptcy Code or otherwise, without the prior written consent of the Agent and no such consent shall be implied from any other action, inaction, or acquiescence by the Agent.
To the extent the Agent seeks to exercise, upon an Event of Termination (as such term is defined in the Receivables Agreements), any rights and remedies to the extent provided for in the Receivables Agreements against any Debtor, prior to seeking to
lift the automatic stay to exercise such enforcement rights or remedies against such Debtor, the Agent shall provide five (5) business days’ written notice (by facsimile, telecopy, electronic mail or otherwise) to (a) counsel for the
Debtors: (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York 10019-6064, Attention: Kelley A. Cornish; (ii) Stikeman Elliott LLP, 1155 René-Lévesque Blvd. West,
Suite 4000, Montréal, QC H3B 3V2, Canada, Attention: Guy Martel; and (iii) Young Conaway Stargatt & Taylor, LLP, The Brandywine Building, 1000 West Street, 17th Floor, Wilmington, Delaware 19801, Attention: Pauline
K. Morgan; (b) counsel for the Creditors’ Committee; and (c) counsel for the United States Trustee. For the avoidance of doubt, the foregoing notice requirement shall in no event apply to any exercise by the Agent of any rights and
remedies to the extent provided for in the Receivables Agreements against ACI Funding or the assets of ACI Funding. 
 24. The stipulations, admissions and releases contained in Paragraph 3 and Paragraph 4 of this Final Order, shall be binding on the Debtors and any successor thereto

  

 22 

 
under all circumstances and for all purposes and the Debtors are deemed to have irrevocably waived and relinquished all rights to contest any such stipulation, admission or release as of the date
of entry of the Interim Order. The stipulations, admissions and releases contained in Paragraph 3 and Paragraph 4 of this Final Order and the other findings and conclusions of law with respect to the prepetition effect of the Financing
Agreements contained in this Final Order shall be binding on all other parties in interest under all circumstances and for all purposes unless, and solely to the extent that, (a) any party in interest (other than the Creditors’ Committee)
commences a contested matter or adversary proceeding challenging such stipulation, admission or release or asserting any claims or causes of action on behalf of the Debtors’ estates against the Released Parties no later than July 1, 2009
or (b) the Creditors’ Committee commences a contested matter or adversary proceeding challenging such stipulation, admission or release or asserting any claims or causes of action on behalf of the Debtors’ estates against the Released
Parties no later than July 17, 2009. If no such contested matter or adversary proceeding is timely commenced then, without further order of the Court, all of the stipulations, admissions and releases contained in Paragraph 3 and
Paragraph 4 of this Final Order, shall be binding on all parties in interest in these chapter 11 cases and shall not be subject to challenge or modification in any respect. If any such contested matter or adversary proceeding is timely
commenced, the stipulations, admissions, releases findings and conclusions shall nonetheless remain binding on all parties in interest and shall be preclusive except to the extent that such stipulation, admission, release, finding or

  

 23 

 
conclusion is expressly challenged pursuant to such timely commenced contested matter or adversary proceeding. 
 25. Nothing in the Interim Order or this Final Order vests or confers on any person (as defined in the Bankruptcy Code), including the Creditors’ Committee, standing or
authority to pursue any cause of action belonging to the Debtors or their estates. 
 26. This Final Order shall
constitute findings of fact and conclusions of law and shall take effect and be fully enforceable nunc pro tunc to the Filing Date immediately upon entry hereof. Notwithstanding Bankruptcy Rules 4001(a)(3), 6004(h),
6006(d), 7062 or 9024 or any other Bankruptcy Rule, or Rule 62(a) of the Federal Rules of Civil Procedure, this Final Order shall be immediately effective and enforceable upon its entry and there shall be no stay of execution or effectiveness
of this Final Order. Specifically, pursuant to this Final Order, the ten day automatic stay periods of Bankruptcy Rules 6004(g) and 6006(d) are expressly inapplicable to this Final Order and the transactions including, without limitation, transfers
contemplated hereby and this Final Order shall become operative immediately upon entry on the docket. 
 27. To
the extent that any of the provisions of this Final Order may be inconsistent with the terms and conditions of the Financing Agreements, the provisions of this Final Order shall govern. 
 28. This order is supplemented by the record made at the Interim Hearing and at the Final Hearing to incorporate the
adequate protection provided to the ACCC 364 day Term Facility lenders. 
  

 24 

			
	Dated:	 	 Wilmington, Delaware

		 	                     , 2009

  

	
	  

	 Kevin J. Carey
 Chief United States Bankruptcy Judge

  

 25Exhibit 10.29

  Exhibit 10.29 
 EXECUTION COPY 
 THIRD AMENDMENT AND WAIVER 

This Third Amendment and Waiver (the "Agreement") to the Credit Agreement referred to below is dated as of February 25, 2008, by and
among BOWATER INCORPORATED, a corporation organized under the laws of Delaware, in its capacity as Borrower under the Credit Agreement referred to below (the "Borrower"), certain Subsidiaries of the Borrower party hereto (the "Subsidiary
Grantors"), AbitibiBowater, Inc., a corporation organized under the laws of Delaware (the "Parent"), the Lenders and the Canadian Lenders party hereto (the "Consenting Lenders") pursuant to an authorization (in the form attached
hereto as Exhibit A, each a "Lender Authorization") and WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent (the "Administrative Agent") for the Lenders party to the Credit Agreement referred to below. 
 STATEMENT OF PURPOSE: 
 The Borrower, the
Lenders, certain other financial institutions and the Administrative Agent are parties to the Credit Agreement dated as of May 31, 2006 (as amended by that certain First Amendment dated as of July 20, 2007, that certain Second Amendment
dated as of October 31, 2007, as amended hereby and as further amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). 
 The Borrower has requested that the Administrative Agent, the Lenders and the Canadian Lenders agree to amend the Credit Agreement as more specifically
set forth herein. Subject to the terms and conditions set forth herein, the Administrative Agent and each of the Consenting Lenders have agreed to grant such requests of the Borrower. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows: 
 1. Capitalized Terms. All capitalized undefined terms used in this Agreement (including, without limitation, in the
introductory paragraph and the statement of purpose hereto) shall have the meanings assigned thereto in the Credit Agreement (as amended by this Agreement). 
 2. Waiver. Pursuant to Section 13.2 of the Credit Agreement and subject to the terms and conditions hereof, including, without limitation, the conditions to effectiveness set forth in
Section 4 hereof, each of the Administrative Agent, the Issuing Lender and the other Consenting Lenders party hereto waive any and all Defaults or Events of Default occurring pursuant to Section 11.1(d) of the Credit
Agreement solely as a result of the failure by the Borrower and its Subsidiaries to comply with the financial covenants set forth in Sections 9.1 and 9.2 of the Credit Agreement solely with respect to the testing period ended
December 31, 2007. 
 3. Credit Agreement Amendments. The Credit Agreement is hereby amended as set forth on Exhibit B;
provided, that the Administrative Agent (in consultation with the Lenders and the Canadian Lenders) may effect such other amendments to the Credit Agreement as may be necessary or appropriate, in the opinion of the Administrative Agent (in
consultation with the Lenders and the Canadian Lenders), to reflect changes in the structure of the Newco Transactions from the structure described in the Credit Agreement so long as (a) any such new structure has substantially the same
economic end result as the structure described in the Credit Agreement and (b) any such changes are limited to changes that are not materially adverse to the Lenders or the Canadian Lenders. 
 4. Conditions to Effectiveness. Upon the satisfaction of each of the following conditions, this Agreement shall be deemed to be effective as of
the date hereof: 
  
 1 
  

 (a) the Administrative Agent shall have received counterparts
of this Agreement executed by the Administrative Agent (on behalf of itself and each of the Consenting Lenders by virtue of each Consenting Lender's execution of a Lender Authorization), the Borrower, the Parent and the Subsidiary Grantors;

 (b) the Administrative Agent shall have received executed Lender Authorizations from the requisite Consenting Lenders; 
 (c) the Administrative Agent shall have been reimbursed for all fees (including, without limitation, the fees set forth in that certain letter
agreement dated as of February 7, 2008 (as amended, restated, supplemented or otherwise modified) between Wachovia Capital Markets, LLC and the Borrower) and out-of-pocket charges and other expenses incurred in connection with this Agreement,
including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent; 
 (d) the Administrative
Agent and the Canadian Administrative Agent shall have received Schedule 1.1(c) to the Credit Agreement and Schedule 1.1(c) to the Canadian Credit Agreement, in each case, in form and substance reasonably satisfactory to the
Administrative Agent and the Canadian Administrative Agent; 
 (e) the Administrative Agent shall have received a corresponding amendment
to the Canadian Credit Agreement, in form and substance substantially consistent with this Agreement (with such changes as are applicable only to the Canadian Credit Agreement), duly executed by the Canadian Administrative Agent, the Canadian
Borrower, the Parent, each Canadian Guarantor and the requisite Consenting Lenders (whether directly or through a lender authorization); 
 (f) the Borrower shall have paid to the Administrative Agent (or its applicable affiliates), for the account of each Consenting Lender (including the Administrative Agent and the Canadian Administrative Agent) that executes and delivers this
Agreement or a Lender Authorization to the Administrative Agent (or its counsel) on or prior to 2:00 p.m. (Eastern Time) on February 22, 2008, an amendment fee in an amount equal to (a) 25 basis points times the principal amount of
such Consenting Lender's Commitment plus (b) 25 basis points times the principal amount of such Consenting Lender's "Commitment" (as defined in the Canadian Credit Agreement); and 
 (g) the Administrative Agent shall have received such other instruments, documents and certificates as the Administrative Agent shall reasonably
request in connection with the execution of this Agreement. 
 5. Effect of the Agreement. Except as expressly provided herein, the
Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect. Except as expressly set forth herein, this Agreement shall not be deemed (a) to be a waiver of, or consent to, a modification or amendment of,
any other term or condition of the Credit Agreement or any other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the
Credit Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a commitment or any other
undertaking or expression of any willingness to engage in any further discussion with the Borrower or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any
rights or remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with respect to any such documents or (d) to be a waiver of, or consent to or a modification or amendment of, any other term or condition
of any other agreement by and among the Borrower, on the one hand, and the Administrative Agent or any other Lender, on the other hand. 
  
 2 
  

 References in the Credit Agreement to "this Agreement" (and indirect references such as "hereunder", "hereby", "herein", and "hereof") and in any Loan Document to the Credit Agreement shall be deemed to be references to
the Credit Agreement as modified hereby. 
 6. Representations and Warranties/No Default. By their execution hereof, 
 (a) the Borrower and each Subsidiary Grantor hereby certifies, represents and warrants to the Administrative Agent and the Lenders that
after giving effect to the waiver set forth in Section 2 above and the amendments set forth in Section 3 above, each of the representations and warranties set forth in the Credit Agreement and the other Loan Documents is true
and correct in all material respects as of the date hereof (except to the extent that (A) any such representation or warranty that is qualified by materiality or by reference to Material Adverse Effect, in which case such representation or
warranty is true and correct in all respects as of the date hereof or (B) any such representation or warranty relates only to an earlier date, in which case such representation or warranty shall remain true and correct as of such earlier date)
and that no Default or Event of Default has occurred or is continuing; 
 (b) the Borrower, the Parent and each of the
Subsidiary Grantors hereby certifies, represents and warrants to the Administrative Agent and the Lenders that: 
 (i) it
has the right, power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other documents executed in connection herewith to which it is a party
in accordance with their respective terms and the transactions contemplated hereby; and 
 (ii) this Agreement and each
other document executed in connection herewith has been duly executed and delivered by the duly authorized officers of the Borrower, the Parent and each of the Subsidiary Grantors, and each such document constitutes the legal, valid and binding
obligation of the Borrower, the Parent and each of the Subsidiary Grantors, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from
time to time in effect which affect the enforcement of creditors' rights in general and the availability of equitable remedies. 
 7.
Reaffirmations. Each Credit Party (a) agrees that the transactions contemplated by this Agreement shall not limit or diminish the obligations of such Person under, or release such Person from any obligations under, the Subsidiary
Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party, (b) confirms and reaffirms its obligations under the Subsidiary Guaranty Agreement, the Collateral Agreement and each other Security Document
to which it is a party and (c) agrees that the Subsidiary Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party remain in full force and effect and are hereby ratified and confirmed. In furtherance
of the reaffirmations set forth in this Section 7, each Credit Party hereby grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a security interest in, all Collateral and all proceeds thereof as security
for the Obligations, in each case subject to any applicable terms and conditions set forth in the Subsidiary Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party. 
 8. Acknowledgement by Parent. The Parent hereby acknowledges receipt of a copy of the Credit Agreement and agrees, for the benefit of the
Administrative Agent and the Secured Parties, to be bound thereby and to comply with the terms thereof insofar as such terms are applicable to it (including, without limitation, Sections 7.1(f), 8.10(e)(i), 10.6(i) and
11.1(o)). 
  
 3 
  

 9. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. 
 10.
Counterparts. This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
 11. Electronic Transmission. A facsimile, telecopy, pdf or other reproduction of this Agreement may be executed by one or more parties hereto,
and an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution
and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute an original of this Agreement as well as any facsimile, telecopy, pdf or other reproduction
hereof. 
 12. Agreement Regarding Intercompany Subordination Agreement. The Intercompany Subordination Agreement is hereby amended
by: 
 (a) adding the phrase "(other than the U.S. Borrower)" after the reference to "Canadian Credit Party" in the
definition of "Demand Indebtedness"; and 
 (b) adding the phrase "(other than the U.S. Borrower)" after each reference to
the "Canadian Credit Party" in Section 2.05(a) and (b). 
 [Signature Pages Follow] 
  
 4 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date and year
first above written. 
  
 
					
	BORROWER:
	
	BOWATER INCORPORATED
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	Vice President & Treasurer
	
	PARENT:
	
	ABITIBIBOWATER, INC.
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	Sr. Vice President & CFO
	
	SUBSIDIARY GRANTORS:
	
	BOWATER MISSISSIPPI HOLDINGS INC.
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	Vice President & Treasurer
	
	BOWATER MISSISSIPPI LLC
		
	By:	 	/s/ David A. Spraley
		 	Name:	 	David A. Spraley
		 	Title:	 	Manager
	
	BOWATER AMERICA INC.
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	President
	
	BOWATER NUWAY INC.
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	Vice President

 [Signature Pages Continue] 
  

 
					
	BOWATER NUWAY MID-STATES INC.
		
	By:	 	/s/ William A. McCormick
		 	Name:	 	William A. McCormick
		 	Title:	 	Assistant Secretary
	
	BOWATER ALABAMA INC.
		
	By:	 	/s/ William G. Harvey
		 	Name:	 	William G. Harvey
		 	Title:	 	Vice President & Treasurer

 [Signature Pages Continue]

  

 
			
	WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (on behalf of itself and the Consenting Lenders who have executed a Lender Authorization) and as Issuing Lender, Swingline
Lender and a Lender
		
	By:	 	/s/ James Travagline
	Name:	 	James Travagline
	Title:	 	Vice President

 [Third Amendment and Waiver – Bowater] 
  

 LENDER AUTHORIZATION 
 Bowater Incorporated 
 Bowater Canadian
Forest Products Inc. 
 Third Amendment and Waiver 
 February 25, 2008 
 Wachovia Bank, National Association 
 NC0680 
 1525 West W.T. Harris Blvd. 
 Charlotte, North Carolina 28262 
 Attention: Syndication Agency Services 
 The Bank of Nova Scotia 
 40 King Street West 
 Scotia Plaza, 62nd Floor 
 Toronto, Ontario M5W 2X6 
 Attention: Corporate
Banking Loan Syndication 
  

	 	Re:	(a) the Third Amendment and Waiver dated as of February 25, 2008 (the "U.S. Agreement") to that certain Credit Agreement dated as of May 31, 2006 (as amended, the
"U.S. Credit Agreement") among Bowater Incorporated (the "U.S. Borrower"), the lenders party thereto (the "U.S. Lenders"), and Wachovia Bank, National Association, as administrative agent (the "U.S. Administrative Agent")
for the U.S. Lenders and (b) the Third Amendment and Waiver dated as of February 25, 2008 (the "Canadian Agreement" and, together with the U.S. Agreement, the "Agreements") to that certain Credit Agreement dated as of
May 31, 2006 (as amended, the "Canadian Credit Agreement") among Bowater Canadian Forest Products Inc. (the "Canadian Borrower"), the U.S. Borrower, the lenders party thereto (the "Canadian Lenders"), and The Bank of Nova
Scotia, as administrative agent (the "Canadian Administrative Agent") for the Canadian Lenders. 

 This Lender
Authorization acknowledges our receipt and review of the execution copy of the Agreements, each in the form posted on SyndTrak Online or otherwise distributed to us by the U.S. Administrative Agent or the Canadian Administrative Agent. By executing
this Lender Authorization, we hereby approve the Agreements and authorize the U.S. Administrative Agent or the Canadian Administrative Agent (as applicable) to execute and deliver the Agreements on our behalf. 
 Each financial institution purporting to be a U.S. Lender and executing this Lender Authorization agrees or reaffirms that it shall be a party to the
Agreements and the other Loan Documents (as defined in the U.S. Credit Agreement) to which U.S. Lenders are parties and shall have the rights and obligations of a "Lender" (as defined in the U.S. Credit Agreement), and agrees to be bound by the
terms and provisions applicable to a "Lender" under each such agreement. Each financial institution purporting to be a Canadian Lender and executing this Lender Authorization agrees or reaffirms that it shall be a party to the Agreements and the
other Loan Documents (as defined in the Canadian Credit Agreement) to which Canadian Lenders are parties and shall have the rights and obligations of a "Lender" (as defined in the Canadian Credit Agreement), and agrees to be bound by the terms and
provisions applicable to a "Lender" under each such agreement. In furtherance of the foregoing, each financial institution executing this Lender Authorization agrees to execute any additional documents reasonably requested by the U.S. Administrative
Agent or the Canadian Administrative Agent, as applicable, to evidence such financial 
  

 institution's rights and obligations under the U.S. Credit Agreement or the Canadian Credit Agreement, as applicable. 
 A facsimile, telecopy, pdf or other reproduction of this Lender Authorization may be executed by one or more parties hereto, and an executed copy of this Lender Authorization may be delivered by one or more parties
hereto by facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes.

  
 
			
	WACHOVIA BANK, N.A.
		
	By:	 	/s/ James Travagline
	Name:	 	James Travagline
	Title:	 	Vice President
	
	WELLS FARGO FOOTHILL, LLC
		
	By:	 	/s/ Rohan Damani
	Name:	 	Rohan Damani
	Title:	 	Vice President
	
	UBS LOAN FINANCE LLC
		
	By:	 	/s/ Irja R. Otsa
	Name:	 	Irja R. Otsa
	Title:	 	Associate Director
		
	By:	 	/s/ David B. Julie
	Name:	 	David B. Julie
	Title:	 	Associate Director
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	/s/ Peter Predun
	Name:	 	Peter Predun
	Title:	 	Executive Director
	
	CAROLINA FIRST BANK
		
	By:	 	/s/ Charles D. Chamberlain
	Name:	 	Charles D. Chamberlain
	Title:	 	Executive Vice President
	
	NORTH FORK BUSINESS CAPITAL CORPORATION
		
	By:	 	/s/ Ron Walker
	Name:	 	Ron Walker
	Title:	 	Vice President
	
	CITICORP USA, INC.
		
	By:	 	/s/ James M. Buchanan
	Name:	 	James M. Buchanan
	Title:	 	Vice President
	
	THE BANK OF NEW YORK MELLON
		
	By:	 	/s/ Robert J. Mitchell, Jr.
	Name:	 	Robert J. Mitchell, Jr.
	Title:	 	Vice President
	
	BANK OF MONTREAL
		
	By:	 	/s/ Bruno Jarry
	Name:	 	Bruno Jarry
	Title:	 	Director
	
	EXPORT DEVELOPMENT CANADA
		
	By:	 	/s/ Matthew Devine
	Name:	 	Matthew Devine
	Title:	 	Asset Manager
		
	By:	 	/s/ Howard Clysdale
	Name:	 	Howard Clysdale
	Title:	 	Loan Portfolio Manager
	
	RZB FINANCE LLC
		
	By:	 	/s/ John A. Valiska
	Name:	 	John A. Valiska
	Title:	 	First Vice President
		
	By:	 	/s/ Shirley Ritch
	Name:	 	Shirley Ritch
	Title:	 	Assistant Vice President
	
	GOLDMAN SACHS CREDIT PARTNERS, L.P.
		
	By:	 	/s/ Jaime Weisfelner
	Name:	 	Jaime Weisfelner
	Title:	 	Authorized Signatory
	
	AGFIRST, FARM CREDIT BANK
		
	By:	 	/s/ John W. Burnside, Jr.
	Name:	 	John W. Burnside, Jr.
	Title:	 	Vice President

  

 Exhibit B 
 EXECUTION COPY 
 Published CUSIP Number: 10218JAA3 
 Revolving Credit CUSIP Number: 10218JAB1 
  
  
  
 CREDIT AGREEMENT 
 dated as of
May 31, 2006 
 (as amended by that certain First Amendment dated as of July 20, 2007, 
 that certain Second Amendment dated as of October 31, 2007 and 
 that certain Third Amendment and Waiver dated as of February 25, 2008) 
 by and among 
 BOWATER INCORPORATED, 
 as Borrower,

 the Lenders referred to herein, 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent, 
 Swingline Lender and Issuing Lender, 
 JPMORGAN CHASE BANK, N.A. and UBS SECURITIES
LLC, 
 each as a Syndication Agent, 
 and 
 WELLS FARGO FOOTHILL, LLC 
 as Documentation Agent 
 WACHOVIA CAPITAL MARKETS, LLC, 
 as Sole Book Manager 
 WACHOVIA CAPITAL
MARKETS, LLC, 
 as Lead Arranger 
  
  
  
  

 Table of Contents 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	1
			
	 SECTION 1.1
	  	 Definitions
	  	1
	 SECTION 1.2
	  	Other Definitions and Provisions	  	33
	 SECTION 1.3
	  	Accounting Terms	  	34
	 SECTION 1.4
	  	UCC Terms	  	34
	 SECTION 1.5
	  	Rounding	  	34
	 SECTION 1.6
	  	References to Agreement and Laws	  	34
	 SECTION 1.7
	  	Times of Day	  	34
	 SECTION 1.8
	  	Letter of Credit Amounts	  	34
	 SECTION 1.9
	  	Amount of Obligations	  	35
		
	 ARTICLE II REVOLVING CREDIT FACILITY
	  	35
			
	 SECTION 2.1
	  	Revolving Credit Loans	  	35
	 SECTION 2.2
	  	Swingline Loans	  	35
	 SECTION 2.3
	  	Procedure for Advances of Revolving Credit Loans and Swingline Loans	  	36
	 SECTION 2.4
	  	Repayment and Prepayment of Revolving Credit and Swingline Loans	  	37
	 SECTION 2.5
	  	Permanent Reduction of the Commitment	  	38
	 SECTION 2.6
	  	Termination of Credit Facility	  	39
		
	 ARTICLE III LETTER OF CREDIT FACILITY
	  	39
			
	 SECTION 3.1
	  	L/C Commitment	  	39
	 SECTION 3.2
	  	Procedure for Issuance of Letters of Credit	  	40
	 SECTION 3.3
	  	Commissions and Other Charges	  	40
	 SECTION 3.4
	  	L/C Participations	  	41
	 SECTION 3.5
	  	Reimbursement Obligation of the Borrower	  	42
	 SECTION 3.6
	  	Obligations Absolute	  	42
	 SECTION 3.7
	  	Effect of Letter of Credit Application	  	43
		
	 ARTICLE IV GENERAL LOAN PROVISIONS
	  	43
			
	 SECTION 4.1
	  	Interest	  	43
	 SECTION 4.2
	  	Notice and Manner of Conversion or Continuation of Loans	  	45
	 SECTION 4.3
	  	Fees	  	45
	 SECTION 4.4
	  	Manner of Payment	  	45
	 SECTION 4.5
	  	Evidence of Indebtedness	  	46
	 SECTION 4.6
	  	Adjustments	  	47
	 SECTION 4.7
	  	Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the Administrative Agent	  	47
	 SECTION 4.8
	  	Changed Circumstances	  	48
	 SECTION 4.9
	  	Indemnity	  	49

  
 i 
  

					
	 SECTION 4.10
	  	Increased Costs	  	49
	 SECTION 4.11
	  	Taxes	  	50
	 SECTION 4.12
	  	Mitigation Obligations; Replacement of Lenders	  	52
	 SECTION 4.13
	  	Security	  	54
	 SECTION 4.14
	  	Additional Subsidiary Borrowers	  	54
	 SECTION 4.15
	  	Nature of Obligations; Bankruptcy Limitations; Agreement for Contribution	  	55
		
	 ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING
	  	57
			
	 SECTION 5.1
	  	Closing	  	57
	 SECTION 5.2
	  	Conditions to Closing and Initial Extensions of Credit	  	57
	 SECTION 5.3
	  	Conditions to All Extensions of Credit	  	61
	 SECTION 5.4
	  	Post-Closing Conditions	  	61
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE BORROWER
	  	63
			
	 SECTION 6.1
	  	Representations and Warranties	  	63
	 SECTION 6.2
	  	Survival of Representations and Warranties, Etc	  	70
		
	ARTICLE VII FINANCIAL INFORMATION AND NOTICES	  	70
			
	 SECTION 7.1
	  	Financial Statements and Projections	  	71
	 SECTION 7.2
	  	Officer's Compliance Certificate	  	72
	 SECTION 7.3
	  	Accountants' Certificate	  	72
	 SECTION 7.4
	  	Other Reports	  	72
	 SECTION 7.5
	  	Notice of Litigation and Other Matters	  	73
	 SECTION 7.6
	  	Accuracy of Information	  	74
		
	 ARTICLE VIII AFFIRMATIVE COVENANTS
	  	74
			
	 SECTION 8.1
	  	Preservation of Corporate Existence and Related Matters	  	74
	 SECTION 8.2
	  	Maintenance of Property; Reinvestment	  	74
	 SECTION 8.3
	  	Insurance	  	76
	 SECTION 8.4
	  	Accounting Methods and Financial Records	  	76
	 SECTION 8.5
	  	Payment of Taxes	  	76
	 SECTION 8.6
	  	Compliance With Laws and Approvals	  	76
	 SECTION 8.7
	  	Environmental Laws	  	76
	 SECTION 8.8
	  	Compliance with ERISA	  	77
	 SECTION 8.9
	  	Visits and Inspections	  	77
	 SECTION 8.10
	  	Additional Subsidiaries	  	77
	 SECTION 8.11
	  	Use of Proceeds	  	81
	 SECTION 8.12
	  	Requirements Regarding Certain Permitted Indebtedness	  	81
	 SECTION 8.13
	  	Further Assurances	  	82
		
	 ARTICLE IX FINANCIAL COVENANTS
	  	82
			
	 SECTION 9.1
	  	Consolidated Senior Secured Leverage Ratio	  	82
	 SECTION 9.2
	  	Interest Coverage Ratio	  	83

  
 ii 
  

					
	 ARTICLE X NEGATIVE COVENANTS
	  	83
			
	 SECTION 10.1
	  	Limitations on Indebtedness	  	83
	 SECTION 10.2
	  	Limitations on Liens	  	87
	 SECTION 10.3
	  	Limitations on Loans, Advances, Investments and Acquisitions	  	89
	 SECTION 10.4
	  	Limitations on Mergers and Liquidation	  	90
	 SECTION 10.5
	  	Limitations on Asset Dispositions	  	91
	 SECTION 10.6
	  	Limitations on Dividends and Distributions	  	92
	 SECTION 10.7
	  	Limitations on Exchange and Issuance of Capital Stock	  	94
	 SECTION 10.8
	  	Transactions with Affiliates	  	94
	 SECTION 10.9
	  	Certain Accounting Changes; Organizational Documents	  	94
	 SECTION 10.10
	  	Amendments; Payments and Prepayments of Indebtedness	  	95
	 SECTION 10.11
	  	Restrictive Agreements	  	96
	 SECTION 10.12
	  	Nature of Business	  	97
	 SECTION 10.13
	  	Borrower Jurisdiction	  	97
	 SECTION 10.14
	  	Impairment of Security Interests	  	97
		
	 ARTICLE XI DEFAULT AND REMEDIES
	  	97
			
	 SECTION 11.1
	  	Events of Default	  	97
	 SECTION 11.2
	  	Remedies	  	102
	 SECTION 11.3
	  	Rights and Remedies Cumulative; Non-Waiver; etc	  	103
	 SECTION 11.4
	  	Crediting of Payments and Proceeds	  	104
	 SECTION 11.5
	  	Administrative Agent May File Proofs of Claim	  	104
		
	 ARTICLE XII THE ADMINISTRATIVE AGENT
	  	105
			
	 SECTION 12.1
	  	Appointment and Authority	  	105
	 SECTION 12.2
	  	Rights as a Lender	  	105
	 SECTION 12.3
	  	Exculpatory Provisions	  	106
	 SECTION 12.4
	  	Reliance by the Administrative Agent	  	106
	 SECTION 12.5
	  	Delegation of Duties	  	107
	 SECTION 12.6
	  	Resignation of Administrative Agent	  	108
	 SECTION 12.7
	  	Non-Reliance on Administrative Agent and Other Lenders	  	109
	 SECTION 12.8
	  	No Other Duties, etc	  	109
	 SECTION 12.9
	  	Collateral and Guaranty Matters	  	109
		
	 ARTICLE XIII MISCELLANEOUS
	  	110
			
	 SECTION 13.1
	  	Notices	  	110
	 SECTION 13.2
	  	Amendments, Waivers and Consents	  	111
	 SECTION 13.3
	  	Expenses; Indemnity	  	113
	 SECTION 13.4
	  	Right of Set-off	  	114
	 SECTION 13.5
	  	Governing Law	  	115
	 SECTION 13.6
	  	Waiver of Jury Trial	  	116
	 SECTION 13.7
	  	Reversal of Payments	  	116
	 SECTION 13.8
	  	Injunctive Relief; Punitive Damages	  	116
	 SECTION 13.9
	  	Accounting Matters	  	116
	 SECTION 13.10
	  	Successors and Assigns; Participations	  	117

  
 iii 
  

					
	 SECTION 13.11
	  	Confidentiality	  	119
	 SECTION 13.12
	  	Performance of Duties	  	120
	 SECTION 13.13
	  	All Powers Coupled with Interest	  	120
	 SECTION 13.14
	  	Survival of Indemnities	  	120
	 SECTION 13.15
	  	Titles and Captions	  	121
	 SECTION 13.16
	  	Severability of Provisions	  	121
	 SECTION 13.17
	  	Counterparts	  	121
	 SECTION 13.18
	  	Integration	  	121
	 SECTION 13.19
	  	Term of Agreement	  	121
	 SECTION 13.20
	  	Advice of Counsel, No Strict Construction	  	121
	 SECTION 13.21
	  	USA Patriot Act	  	121
	 SECTION 13.22
	  	Inconsistencies with Other Documents; Independent Effect of Covenants	  	122
	 SECTION 13.23
	  	No Novation	  	122

  
 iv 
  

					
	EXHIBITS	  		  	
			
	 Exhibit A-1
	  	-	  	Form of Revolving Credit Note
	 Exhibit A-2
	  	-	  	Form of Swingline Note
	 Exhibit B
	  	-	  	Form of Notice of Borrowing
	 Exhibit C
	  	-	  	Form of Notice of Account Designation
	 Exhibit D
	  	-	  	Form of Notice of Prepayment
	 Exhibit E
	  	-	  	Form of Notice of Conversion/Continuation
	 Exhibit F
	  	-	  	Form of Officer's Compliance Certificate
	 Exhibit G
	  	-	  	Form of Assignment and Assumption
	 Exhibit H
	  	-	  	Form of Subsidiary Guaranty Agreement
	 Exhibit I
	  	-	  	Form of Collateral Agreement
	 Exhibit J
	  	-	  	Form of Intercompany Subordination Agreement
			
	SCHEDULES	  		  	
			
	 Schedule 1.1(a)
	  	-	  	Existing Letters of Credit
	 Schedule 1.1(b)
	  	-	  	Specified Existing Notes
	 Schedule 1.1(c)
	  	-	  	Description of Catawba Mill Real Property
	 Schedule 6.1(b)
	  	-	  	Subsidiaries and Capitalization
	 Schedule 6.1(i-1)
	  	-	  	ERISA Plans
	 Schedule 6.1(i-2)
	  	-	  	Canadian Plans
	 Schedule 6.1(l)
	  	-	  	Significant Indebtedness
	 Schedule 6.1(n)
	  	-	  	Burdensome Provisions
	 Schedule 6.1(t)
	  	-	  	Litigation
	 Schedule 10.1
	  	-	  	Permitted Indebtedness
	 Schedule 10.2
	  	-	  	Existing Liens
	 Schedule 10.3
	  	-	  	Existing Loans, Advances and Investments
	 Schedule 10.8
	  	-	  	Transactions with Affiliates

  
 v 
  

 CREDIT AGREEMENT, dated as of May 31, 2006, by and among BOWATER INCORPORATED, a Delaware corporation (the "Original Borrower"), together with each additional borrower that becomes a party hereto pursuant to the terms hereof, as
borrower, the lenders who are party to this Agreement or who may become a party to this Agreement pursuant to Section 13.10 hereof, as Lenders, and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative
Agent for the Lenders. 
 STATEMENT OF PURPOSE 
 The Borrower has requested, and the Lenders have agreed, to extend certain credit facilities to the Borrower on the terms and conditions of this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties
hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions. The following terms when used in this Agreement shall have the meanings assigned to
them below: 
 "Abitibi Entities" means, collectively, Abitibi-Consolidated Inc. and its Subsidiaries. 
 "Additional Newco Indebtedness" has the meaning assigned thereto in Section 10.1(m)(ii). 
 "Administrative Agent" means Wachovia, in its capacity as Administrative Agent hereunder, and any successor thereto appointed pursuant to
Section 12.6. 
 "Administrative Agent's Office" means the office of the Administrative Agent specified in or determined
in accordance with the provisions of Section 13.1(c). 
 "Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent. 
 "Affiliate" means, with respect to any Person, any other Person
which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person or any of its Subsidiaries. As used in this definition, the term "control" means (a) the power to
vote ten percent (10%) or more of the securities or other equity interests of a Person having ordinary voting power (excluding, however, a Person or group whose ownership in another Person is permitted to be reported on Schedule 13G pursuant to
Rule 13d-1(b) under the Securities Exchange Act of 1934, as amended) or (b) the possession, directly or indirectly, of any other power to direct or cause the direction of the management and policies of a Person, whether through ownership of
voting securities, by contract or otherwise. Notwithstanding the foregoing, (i) no individual shall be an Affiliate of the Borrower or any of its Subsidiaries solely and exclusively by reason of his or her being a director, officer or employee
of the Borrower or any of its Subsidiaries, (ii) none of the Subsidiaries of the Borrower 
  
 1 
  

 shall be
Affiliates of the Borrower or any of its Subsidiaries and (iii) no Borrower shall be an Affiliate of any other Borrower; provided, that the Abitibi Entities shall be Affiliates of the Borrower and its Subsidiaries for the purposes of
this Agreement and the other Loan Documents and the Canadian Credit Agreement and the "Loan Documents" (as defined in the Canadian Credit Agreement). 
 "Aggregate Credit Exposure" means the sum of (a) the aggregate amount of outstanding Loans and (b) the aggregate amount of outstanding Canadian Loans. 
 "Agreement" means this Credit Agreement, as amended by (a) the First Amendment dated as of July 20, 2007 by and among the Original
Borrower, the Subsidiary Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto), (b) the Second Amendment dated as of October 31, 2007 by and among the Original Borrower, the Subsidiary Guarantors and
the Administrative Agent (on behalf of itself and the Lenders party thereto) and (c) the Third Amendment and as further amended, restated, supplemented or otherwise modified from time to time. 
 "Applicable Insolvency Laws" means all Applicable Laws governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C. Sections 544, 547, 548 and 550 and other "avoidance" provisions of Title 11 of the United States Code, as amended
or supplemented). 
 "Applicable Law" means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties,
regulations, permits, licenses, approvals, legally binding policies, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators. 
 "Applicable Margin" means the corresponding percentages per annum as set forth below based on the Average Utilization: 
  

									
	 Pricing
Level
	  	 Average Utilization Percentage
	  	LIBOR +	 	 	Base Rate +	 
	I	  	Greater than 75%	  	3.25	%	 	2.00	%
	II	  	Greater than 35%, but less than or equal to 75%	  	3.00	%	 	1.75	%
	III	  	Less than or equal to 35%	  	2.75	%	 	1.50	%

 The Applicable Margin shall be determined by the Administrative Agent and
adjusted quarterly on the date (each a "Calculation Date") ten (10) Business Days after the end of each fiscal quarter of the Borrower; provided that the Applicable Margin shall be based on Pricing Level I until the first
Calculation Date occurring after the Third Amendment Effective Date and, thereafter the Pricing Level shall be determined by reference to the Average Utilization Percentage as of the last day of the most recently ended fiscal quarter of the Borrower
preceding the applicable Calculation Date. The Applicable Margin shall be effective from one Calculation 
  
 2 
  

 Date until
the next Calculation Date. Any adjustment in the Applicable Margin shall be applicable to all Extensions of Credit then existing or subsequently made or issued. 
 "Approved Fund" means any Person (other than a natural Person), including, without limitation, any special purpose entity, that is (or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its business; provided, that such Approved Fund must be administered, managed or underwritten by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender. 
 "Asset Coverage Amount" means, as of any date of
determination, an amount equal to eighty-five percent (85%) of the net book value of the Coverage Assets as set forth on the Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries most recently delivered pursuant to
Sections 5.2 or 7.1 hereof; provided, however that such percentage shall be reduced to seventy-five percent (75%) during the period from October 1, 2007 through and including September 30, 2008. 
 "Asset Disposition" means the disposition of any or all of the assets (including, without limitation, any Capital Stock owned thereby) of the
Borrower or any of its Subsidiaries whether by sale, lease, transfer or otherwise. The term "Asset Disposition" shall not include any Insurance and Condemnation Event. 
 "Assignment and Assumption" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party
whose consent is required by Section 13.10), and accepted by the Administrative Agent, in substantially the form of Exhibit G or any other form approved by the Administrative Agent. 
 "Attributable Indebtedness" means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease, the capitalized amount or principal amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease. 
 "Average Utilization" means, for any calendar quarter, the average daily principal balance of Loans outstanding during such calendar quarter. 
 "Base Rate" means, at any time, the higher of (a) the Prime Rate and (b) the Federal Funds Rate plus 1/2 of 1%; each change in
the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate or the Federal Funds Rate. 
 "Base Rate Loan" means any Loan bearing interest at a rate based upon the Base Rate as provided in Section 4.1(a). 
 "BCFC Notes" means the 7.95% Notes due 2011 issued pursuant to the Indenture dated as of October 31, 2001 among Bowater Canada Finance Corporation, as Issuer, the Original Borrower, as Guarantor, and The Bank of New York, as
Trustee. 
  
 3 
 

 "Borrower" means (a) prior to the receipt by the Administrative Agent of all
documentation required to be delivered pursuant to Sections 8.10(e)(i) and (ii)(A), the Original Borrower and (b) upon receipt by the Administrative Agent of all documentation required to be delivered pursuant to Sections
8.10(e)(i) and (ii)(A), collectively, the Original Borrower and Newco. 
 "Borrowing Limit" means, at any time, the
lesser of: 
 (a) the aggregate principal amount of the Commitments at such time less, except with respect to Sections 2.4(b)
and 5.2(e)(iii), 
 (i) in the case of any request for Revolving Credit Loans, the sum of all outstanding Swingline
Loans and L/C Obligations; 
 (ii) in the case of any request for Swingline Loans, the sum of all outstanding Revolving
Credit Loans and L/C Obligations; or 
 (iii) in the case of any request for issuance of a Letter of Credit, the sum of all
outstanding Loans; and 
 (b) the amount which, when aggregated with the aggregate amount of all other Consolidated Total Senior Secured
Indebtedness, does not exceed the Asset Coverage Amount. 
 "Bowater-Calhoun Arrangement" means that certain intercompany loan
arrangement pursuant to which: 
 (a) the Original Borrower loaned $33,294,000 of proceeds of the McMinn County pollution control bonds to
Calhoun Newsprint Company as evidenced by an intercompany note payable to the Original Borrower; and 
 (b) Calhoun Newsprint Company
loaned such proceeds back to the Original Borrower as evidenced by an intercompany note payable to Calhoun Newsprint Company and secured by the Original Borrower's intercompany note receivable referred to in clause (a). 
 "Business Day" means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal
holiday on which banks in Charlotte, North Carolina, New York, New York and Toronto, Ontario, are open for the conduct of their commercial banking business, and (b) with respect to all notices and determinations in connection with, and payments
of principal and interest on, any LIBOR Rate Loan, any day that is a Business Day described in clause (a) and that is also a day for trading by and between banks in Dollar deposits in the London interbank market. 
 "Calculation Date" has the meaning assigned thereto in the definition of Applicable Margin. 
 "Canadian Administrative Agent" means The Bank of Nova Scotia in its capacity as the administrative agent under the Canadian Credit Agreement.

  
 4 
  

 "Canadian Borrower" means Bowater Canadian Forest Products Inc., as borrower under the
Canadian Credit Facility. 
 "Canadian Collateral" means the "Collateral" as defined in the Canadian Credit Agreement. 

"Canadian Credit Agreement" means that certain credit agreement dated as of even date herewith by and among the Canadian Borrower, as
borrower, the Original Borrower, as guarantor, the lenders party thereto, as lenders, and The Bank of Nova Scotia, as administrative agent. 
 "Canadian Credit Facility" means that certain revolving credit facility established pursuant to the Canadian Credit Agreement. 
 "Canadian Credit Party" means the Canadian Borrower and each Canadian Guarantor. 
 "Canadian Employee Benefit Plan"
means (a) any employee benefit plan that is maintained for the benefit of employees or former employees of the Canadian Borrower or any of the Canadian Subsidiaries registered in accordance with the ITA or other Applicable Law which the
Borrower or any of its Subsidiaries sponsors, maintains, or to which it makes, is making, or is obligated to make, contributions or (b) any Canadian Pension Plan or Canadian Multiemployer Plan that has at any time within the preceding six
(6) years been maintained for the employees of the Borrower or any of its Subsidiaries, and shall not include any Employee Benefit Plan. 
 "Canadian Extensions of Credit" means the "Extensions of Credit" as defined in the Canadian Credit Agreement. 
 "Canadian
Guarantors" means the "Guarantors" as defined in the Canadian Credit Agreement. 
 "Canadian Lender" means any "Lender" as
defined in the Canadian Credit Agreement. 
 "Canadian Loans" means "Loans" as defined in the Canadian Credit Agreement. 

"Canadian Multiemployer Plan" means a "multi-employer pension plan" as defined by Applicable Laws and registered in accordance with the ITA
or other Applicable Laws and as to which the Borrower or any of its Subsidiaries is making, or is accruing an obligation to make, or has accrued an obligation to make, contributions within the preceding six (6) years, and shall not include any
Multiemployer Plan. 
 "Canadian Obligations" means the "Obligations" as defined in the Canadian Credit Agreement. 
 "Canadian Pension Plan" means any Canadian Employee Benefit Plan, other than a Canadian Multiemployer Plan, which is registered in accordance
with the ITA or other Applicable Law and which (a) is maintained for the employees of the Borrower or any of its Subsidiaries or (b) has at any time within the preceding six (6) years been maintained for the 
  
 5 
  

 employees of the Borrower or any of its Subsidiaries which the Borrower or any of its Subsidiaries sponsors, maintains, or to which
it makes, is making or is obligated to make, contributions, and shall not include any Pension Plan. 
 "Canadian Required Agreement
Lenders" means the "Required Agreement Lenders" as defined in the Canadian Credit Agreement. 
 "Canadian Secured Parties" means
the "Secured Parties" as defined in the Canadian Credit Agreement. 
 "Canadian Subsidiary" means any Subsidiary that is organized
under the laws of Canada or any province or political subdivision thereof. 
 "Capital Asset" means, with respect to the Borrower
and its Subsidiaries, any asset that should, in accordance with GAAP, be classified and accounted for as a capital asset on a Consolidated balance sheet of the Borrower and its Subsidiaries. 
 "Capital Expenditures" means, with respect to the Borrower and its Subsidiaries for any period, the aggregate cost of all Capital Assets
acquired by the Borrower and its Subsidiaries during such period, as determined in accordance with GAAP. 
 "Capital Lease" means
any lease of any property by the Borrower or any of its Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and accounted for as a capital lease on a Consolidated balance sheet of the Borrower and its Subsidiaries.

 "Capital Stock" means (a) in the case of a corporation, capital stock, (b) in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in the case of a limited
liability company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 
 "Cash Equivalents" means, collectively: 
 (a) marketable obligations issued or unconditionally guaranteed by the United States, Canada or any agency thereof maturing within two hundred seventy (270) days from the date of acquisition thereof; 
 (b) commercial paper maturing no more than two hundred seventy (270) days from the date of creation thereof and currently
having the highest rating obtainable from either S&P, Moody's or DBRS; 
 (c) certificates of deposit, time
deposits and bankers' acceptances maturing no more than two hundred seventy (270) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States or Canada, each having combined capital,
surplus and undivided profits of not less than $500,000,000 and having a rating of "A" or better by a nationally recognized rating agency; provided that the aggregate amount invested in such certificates of deposit shall not at any time
exceed 
  
 6 
  

 $5,000,000 for any one such certificate of deposit and $10,000,000 for any one such bank; 

(d) repurchase obligations for underlying securities of the types described in, and satisfying the requirements specified in,
clauses (a) and (c) above entered into with any bank satisfying the requirements specified in clause (c) above; 
 (e) demand deposit accounts maintained in the ordinary course of business; and 
 (f) (i) money market mutual
or similar funds which (A) invest solely in assets of the types described in clauses (a) through (e) above, without regard to the limitations as to the maturity of such obligations, bankers' acceptances, time deposits, certificates of
deposit, repurchase agreements or commercial paper set forth above, (B) are rated at least "AAm" or "AAmg" or their equivalent by both S&P and Moody's, provided that there is no "r-highlighter" affixed to such rating and (C) comply
with Rule 2a-7 of the Investment Company Act of 1940, as amended; and 
 (ii) the money market fund called Columbia Cash
Reserves, so long as Columbia Cash Reserves continues to buy only "first tier" securities as defined by Rule 2a-7 of the Investment Company Act of 1940, as amended. 
 "Catawba Mill Assets" means, collectively, (a) that certain mill owned as of the Third Amendment Effective Date by the Original Borrower and located in Catawba, South Carolina (the "Catawba Mill"),
along with the real property upon which the Catawba Mill is situated (as more particularly described on Schedule 1.1(c) hereto, the "Catawba Mill Real Property"), (b) all equipment used in connection therewith and located at the
Catawba Mill Real Property (the "Catawba Mill Equipment"), (c) all other rights and assets used for the operation, administration and maintenance of the Catawba Mill Real Property and (d) all operations thereof. 
 "Catawba Mortgage" means that certain mortgage, deed of trust, security agreement or other real property security document encumbering the Newco
Fixed Assets, in form and substance reasonably satisfactory to the Administrative Agent and the Canadian Administrative Agent and executed by Newco in favor of the Administrative Agent, for the ratable benefit of the Secured Parties and the Canadian
Secured Parties, as amended, restated, supplemented or otherwise modified from time to time. 
 "Catawba Note" has the meaning
assigned thereto in Section 10.5(h). 
 "Change in Control" means an event or series of events by which (a) any
person or group of persons (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership or control in one or more series of transactions of more than thirty-five percent (35%) of the
Capital Stock or thirty-five percent (35%) of the voting power of the Parent entitled to vote in the election of members of the board of directors of the Parent, (b) during any period of twenty-five (25) consecutive calendar months, a
majority of the members of the board of directors of the Parent cease to be composed of Continuing Directors, (c) there shall have occurred under any indenture or other instrument evidencing any Indebtedness of the Borrower or any of its
Subsidiaries in excess of $25,000,000 any "change in control" or similar 
  
 7 
  

 provision (as set forth in the
indenture, agreement or other evidence of such Indebtedness) obligating the Borrower or any of its Subsidiaries to repurchase, redeem or repay all or any part of such Indebtedness or Capital Stock provided for therein (provided that if such
obligation is contingent on any other event or circumstance, then such "change in control" shall not constitute a Change in Control hereunder unless such other event or circumstance also has occurred or exists), (d) the Parent shall cease to
own one hundred percent (100%) of the Capital Stock of the Original Borrower or (e) after the receipt of the documentation required pursuant to Section 8.10(e)(ii)(A)(1), the Parent shall cease to own one hundred percent
(100%) of the Capital Stock of Newco. 
 For the purposes hereof, "Continuing Directors" means, during any period of twenty-five
(25) consecutive calendar months, individuals (i) who were members of the board of directors on the first day of such period, (ii) whose election or nomination to the board of directors was approved by individuals who comprised a
majority of the board of directors on the first day of such period or (iii) whose election or nomination to the board of directors was approved by (A) individuals who were members of the board of directors on the first day of such period
or (B) individuals whose election or nomination to the board of directors was approved by a majority of the board of directors on the first day of such period; provided that in each case such individuals referenced in clause (A) and
clause (B) constituted a majority of the board of directors at the time of such election or nomination. 
 "Change in Law"
means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration,
interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 
 "Closing Date" means the date of this Agreement or such later Business Day upon which each condition described in Section 5.2 shall
be satisfied or waived in all respects in a manner acceptable to the Administrative Agent, in its sole discretion. 
 "Code" means
the Internal Revenue Code of 1986, and the rules and regulations thereunder, each as amended or modified from time to time. 
 "Collateral" means the collateral security for the Obligations and/or the Canadian Obligations (as the case may be) pledged or granted pursuant to the Security Documents. 
 "Collateral Agreement" means the collateral agreement of even date executed by the Credit Parties in favor of the Administrative Agent, for the
benefit of itself and the other Secured Parties, substantially in the form of Exhibit I, as amended, restated, supplemented or otherwise modified from time to time. 
 "Combination" means the combination of the Original Borrower with Abitibi-Consolidated Inc., with the Parent as a common holding company,
pursuant to the terms of the Combination Agreement. 
  
 8

  

 "Combination Agreement" means that
certain Combination Agreement and Agreement and Plan of Merger dated as of January 29, 2007 among the Parent, Abitibi-Consolidated Inc., the Original Borrower, Alpha-Bravo Merger Sub Inc., a Delaware corporation, and Bowater Canada, Inc., as
the same may be amended, modified or supplemented from time to time. 
 "Commitment" means (a) as to any Lender, the obligation
of such Lender to make Extensions of Credit to the Borrower hereunder in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Lender's name on the Register, as such amount may be modified at any time
or from time to time pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all Lenders to make Extensions of Credit, as such amount may be modified at any time or from time to time pursuant to the terms hereof. The
Commitment of all the Lenders on the Closing Date shall be $415,000,000. 
 "Commitment Percentage" means, as to any Lender at any
time, the ratio of (a) the amount of the Commitment of such Lender to (b) the Commitments of all the Lenders. 
 "Consolidated" means, when used with reference to financial statements or financial statement items of any Person, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP;
provided, however, that upon receipt by the Administrative Agent of all documentation required to be delivered pursuant to Sections 8.10(e)(i) and (ii)(A), when used with respect to the Borrower, "Consolidated" shall include the
Original Borrower and its Subsidiaries (other than the Abitibi Entities) combined with Newco and its Subsidiaries (if any). 
 "Consolidated Adjusted EBITDA" means, for any period, the sum for the Borrower and its Consolidated Subsidiaries (determined on a Consolidated basis, without duplication, in accordance with GAAP) of the following: (a) Consolidated
EBITDA for such period plus (b) any net gain on any Asset Disposition during such period minus (c) any net loss on any Asset Disposition during such period; provided that, for purposes of this Agreement, Consolidated
Adjusted EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise reasonably acceptable to the Administrative Agent, to include or exclude, as applicable, as of the first day of
any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset Disposition closed during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(i)) of assets
having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of $50,000,000. 
 "Consolidated
EBITDA" means, for any period, the sum for the Borrower and its Consolidated Subsidiaries (determined on a Consolidated basis, without duplication, in accordance with GAAP) of the following: 
 (a) Consolidated Net Income for such period, 
 plus 
 (b) the sum of the following to the extent deducted in determining Consolidated Net Income for such period: 
  
 9 
  

 (i) income taxes for such period (or minus, to the extent added in determining Consolidated Net Income for such period, income
tax benefit for such period); 
 (ii) amortization, depreciation, depletion and other non-cash charges for such period;

 (iii) Consolidated Interest Expense for such period; 
 (iv) any extraordinary charges for such period; 
 (v) any unusual or non-recurring charges for such period up to an amount not to exceed five percent (5%) of the Consolidated
EBITDA of the Borrower and its Subsidiaries (as calculated without giving effect to this clause (v) or clause (vi) below); 
 (vi) any cost savings and synergies associated with a Permitted Acquisition not to exceed five percent (5%) of the Consolidated EBITDA of the Borrower and its Subsidiaries (as calculated without giving effect to
this clause (vi) or clause (v) above); and 
 (vii) any net loss on any Asset Disposition during such period,

 less 
 (c) the sum of the following to the extent included in determining Consolidated Net Income for such period: 
 (i) the aggregate amount of interest income for such period; 
 (ii) any extraordinary gains
during such period; 
 (iii) any unusual or non-recurring gains during such period; and 
 (iv) any net gain on any Asset Disposition during such period; 
 provided that, for purposes of this Agreement, Consolidated EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise reasonably acceptable to
the Administrative Agent and the Canadian Administrative Agent, to include or exclude, as applicable, as of the first day of any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset
Disposition closed during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(i)) of assets having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of
$50,000,000. 
 "Consolidated Interest Expense" means, with respect to the Borrower and its Consolidated Subsidiaries for any
period, (a) the gross interest expense (including, without limitation, interest expense attributable to Capital Leases and plus the net amount payable (or minus the net amount receivable) under any Interest Rate Contracts of the
Borrower and its 
  
 10 
  

 Consolidated Subsidiaries), plus (b) the aggregate amount of all cash
distributions or dividends paid by the Borrower and its Consolidated Subsidiaries to the Parent pursuant to, and in accordance with, Section 10.6(j), all determined for such period on a Consolidated basis without duplication, in
accordance with GAAP. 
 "Consolidated Net Income" means, with respect to the Borrower and its Consolidated Subsidiaries, for any
period of determination, the net income (or loss) of the Borrower and its Consolidated Subsidiaries for such period, determined on a Consolidated basis in accordance with GAAP. 
 "Consolidated Senior Secured Leverage Ratio" means, as of any date of determination, the ratio of (a) Consolidated Total Senior Secured
Indebtedness on such date to (b) the sum, without duplication, of (i) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date plus (ii) the amount of Specified
Non-Recurring Charges taken during the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date. 
 "Consolidated Subsidiary" means, for any Person, each Subsidiary of such Person (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial
statements of such Person in accordance with GAAP. 
 "Consolidated Total Indebtedness" means, as of any date of determination,
without duplication, all Indebtedness (excluding clause (h) of the definition thereof) of the Borrower and its Consolidated Subsidiaries. 
 "Consolidated Total Leverage Ratio" means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date to (b) Consolidated EBITDA for the period of four (4) consecutive fiscal
quarters ending on or immediately prior to such date. 
 "Consolidated Total Senior Secured Indebtedness" means, 

(a) for purposes of determining the Consolidated Senior Secured Leverage Ratio, as of any date of determination with respect to the
Borrower and its Consolidated Subsidiaries on a Consolidated basis, without duplication, the sum of (i) all outstanding Extensions of Credit (including, without limitation, each outstanding Letter of Credit and each outstanding Swingline Loan)
under the Credit Facility plus (ii) all outstanding Canadian Extensions of Credit (including, without limitation, each outstanding letter of credit and each outstanding swingline loan) plus (iii) all other outstanding
Indebtedness of the Borrower and its Consolidated Subsidiaries which is secured by any assets of the Borrower and its Consolidated Subsidiaries other than (A) any Hedging Agreement and (B) any such Indebtedness that is secured by a Lien or
Liens (1) permitted pursuant to Section 10.2(k) or (2) that is or are junior in priority to the Liens in favor of the Administrative Agent securing the Obligations and/or the Canadian Obligations; and 
 (b) for all other purposes, as of any date of determination with respect to the Borrower and its Consolidated Subsidiaries on a
Consolidated basis, without duplication, the sum of (i) all outstanding Extensions of Credit (including, without limitation, each 
  
 11 
  

 outstanding Letter of Credit and each outstanding Swingline Loan) under the Credit Facility plus (ii) all other outstanding Indebtedness
(other than any Hedging Agreement) of the Borrower and its Consolidated Subsidiaries which is secured by a Lien on the Coverage Assets. 
 "Coverage Assets" means all accounts receivable (excluding any intercompany accounts receivable) and all inventory of the Borrower and its Consolidated Subsidiaries other than accounts receivable and inventory of the Canadian Borrower
or any Consolidated Subsidiary of the Canadian Borrower. 
 "Credit Facility" means, collectively, the Revolving Credit Facility,
the Swingline Facility and the L/C Facility. 
 "Credit Parties" means, collectively, the Borrower and the Subsidiary Guarantors.

 "DBRS" means Dominion Bond Rating Service Limited and any successor thereto. 
 "Default" means any of the events specified in Section 11.1 which with the passage of time, the giving of notice or any other
condition, would constitute an Event of Default. 
 "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Revolving Credit Loans, participations in L/C Obligations or participations in Swingline Loans required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless such amount is the subject of a good faith dispute, or
(c) has been deemed insolvent or become the subject of a bankruptcy, receivership or insolvency proceeding. 
 "Disputes" means
any dispute, claim or controversy arising out of, connected with or relating to this Agreement or any other Loan Document, between or among parties hereto and to the other Loan Documents. 
 "Dollars" or "$" means, unless otherwise qualified, dollars in lawful currency of the United States. 
 "Domestic Subsidiary" means any Subsidiary organized under the laws of any political subdivision of the United States. 
 "Eligible Assignee" means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other
than a natural person) approved by (i) the Administrative Agent, (ii) the Swingline Lender, (iii) each Issuing Lender and (iv) unless a Default or Event of Default has occurred and is continuing, the Original Borrower (each such
approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, "Eligible Assignee" shall not include the Borrower or any of the Borrower's Affiliates or Subsidiaries. 
 "Employee Benefit Plan" means (a) any employee benefit plan within the meaning of Section 3(3) of ERISA that is maintained for
employees of the Borrower or any of its Subsidiaries which the Borrower or any of its Subsidiaries or any of their ERISA Affiliates 
  
 12 
  

 sponsors, maintains, or to which it makes, is making, or is obligated to make, contributions or (b) any Pension Plan or Multiemployer Plan that has at any time
within the preceding six (6) years been maintained for the employees of the Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates. 
 "Environmental Claims" means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens,
accusations, allegations, notices of noncompliance or violation, investigations (other than internal reports prepared by any Person in the ordinary course of business and not in response to any third party action or request of any kind) or
proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law, including, without limitation, any and all
claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages, contribution, indemnification cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from
alleged injury or threat of injury to human health or the environment. 
 "Environmental Laws" means any and all federal, foreign,
state, provincial and local laws, statutes, ordinances, codes, rules, legally binding policies, standards and regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities, relating to the protection of
human health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or
remediation of Hazardous Materials. 
 "ERISA" means the Employee Retirement Income Security Act of 1974, and the rules and
regulations thereunder, each as amended or modified from time to time. 
 "ERISA Affiliate" means any Person who together with the
Borrower or any of its Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA. 
 "Eurodollar Reserve Percentage" means, for any day, the percentage (expressed as a decimal and rounded upwards, if necessary, to the next higher
1/100th of 1%) which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or
emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. 
 "Event of Default" means any of the events specified in Section 11.1; provided that any requirement for passage of time, giving of notice, or any other condition, has been satisfied.

 "Exchangeable Shares" means those shares of Capital Stock issued by Bowater Canada, Inc. and listed on the Toronto Stock Exchange
(under stock symbol BWX) which are exchangeable at any time at the option of the holder of such shares into common stock of the Parent and which entitle the holders thereof to similar voting rights and dividend payments (on a per share basis) as
those granted to holders of the common stock of the Parent. 
  
 13

  

 "Excluded Taxes" means, with respect to
the Administrative Agent, any Lender, any Issuing Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case
of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 4.12(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or is attributable to such Foreign Lender's failure or inability (other than as a result of a Change in Law) to comply with Section 4.11(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 4.11(a). 
 "Existing Facilities" means the collective reference to (a) the credit facility established pursuant to that certain Credit Agreement dated
as of April 22, 2004 (as amended, restated, supplemented or modified) by and among the Canadian Borrower and the Original Borrower, as borrowers, JPMorgan Chase Bank, as U.S. administrative agent, The Bank of Nova Scotia, as Canadian
administrative agent and the lenders party thereto and (b) the conduit facility established pursuant that certain Loan Agreement dated as of December 19, 2002 (as amended, restated, supplemented or modified) by and among Bowater Funding
Inc., as borrower, the Original Borrower, as initial servicer, the lenders party thereto, SunTrust Capital Markets, Inc. and Wachovia Bank, National Association, as co-agents, and SunTrust Capital Markets, Inc., as administrative agent. 

"Existing Letters of Credit" means those letters of credit existing on the Closing Date and identified on Schedule 1.1(a). 

"Existing Notes" means the collective reference to each of the senior unsecured notes and debentures set forth on Schedule
10.1. 
 "Extensions of Credit" means, as to any Lender at any time, (a) an amount equal to the sum of (i) the
aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, (ii) such Lender's Commitment Percentage of the L/C Obligations then outstanding and (iii) such Lender's Commitment Percentage of the Swingline
Loans then outstanding or (b) the making of any Loan or participation in any Swingline Loan or any Letter of Credit by such Lender, as the context requires. 
 "FDIC" means the Federal Deposit Insurance Corporation, or any successor thereto. 
 "Federal Funds
Rate" means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day (or, if such day is not a
Business 
  
 14 
 

 Day, for the immediately preceding Business Day), as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, the average of the quotation for such day on such transactions received by the Administrative Agent from three Federal
Funds brokers of recognized standing selected by the Administrative Agent. 
 "Fee Letter" means the separate fee letter agreement
executed by the Original Borrower and Wachovia and/or certain of its affiliates dated April 3, 2006. 
 "Fiscal Year" means the
fiscal year of the Borrower and its Subsidiaries ending on December 31. 
 "Foreign Lender" means any Lender that is organized
under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction. 
 "Foreign Pledge Documents" means any pledge agreements, charges and other similar documents and agreements granting
a lien on the Capital Stock of any first-tier Foreign Subsidiary of any Credit Party in favor of the Administrative Agent, for the ratable benefit of the Secured Parties. 
 "Foreign Subsidiary" means any Subsidiary that is not a Domestic Subsidiary. 
 "GAAP" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 
 "Governmental Approvals" means all authorizations, consents, approvals, permits, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities. 
 "Governmental Authority" means the government of the United States, Canada or any other nation, or of any political subdivision thereof, whether
state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central Bank). 
 "Guarantors" means the
Parent Guarantor and each Subsidiary Guarantor. 
 "Guaranty Obligation" means, with respect to the Borrower and its Subsidiaries,
without duplication, any obligation, contingent or otherwise, of any such Person pursuant to which such Person has directly or indirectly guaranteed any Indebtedness of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or 
  
 15 
  

 otherwise, of any such Person (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness (whether arising by virtue of partnership arrangements, by agreement to keep well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement
condition or otherwise) or (b) entered into for the purpose of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part);
provided, that the term Guaranty Obligation shall not include endorsements for collection or deposit in the ordinary course of business. 
 "Hazardous Materials" means any substances or materials (a) which are or become defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or mixtures or toxic substances under any
Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to human health or the environment and are or become regulated by any Governmental Authority,
(c) the presence of which require investigation or remediation under any Environmental Law or common law, (d) the discharge or emission or release of which requires a permit or license under any Environmental Law or other Governmental
Approval, (e) which are deemed to constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighboring properties, (f) which consist of underground or aboveground storage tanks, whether empty, filled or
partially filled with any substance, or (g) which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel,
natural gas or synthetic gas. 
 "Hedging Agreement" means any agreement with respect to any Interest Rate Contract, forward rate
agreement, commodity swap, forward foreign exchange agreement, currency swap agreement, cross-currency rate swap agreement, currency option agreement or other agreement or arrangement designed to alter the risks of any Person arising from
fluctuations in interest rates, currency values or commodity prices, all as amended, restated, supplemented or otherwise modified from time to time. 
 "Hedging Obligations" means all existing or future payment and other obligations owing by any Credit Party under any Hedging Agreement (which such Hedging Agreement is permitted hereunder) with any Person that is
a Lender or an Affiliate of a Lender at the time such Hedging Agreement is executed. 
 "Immaterial Subsidiary" means: 

(a) each QSPE; 
 (b) any Domestic
Subsidiary that is not a Wholly-Owned Subsidiary to the extent that (i) there is a provision in the organizational documents of such Domestic Subsidiary or (ii) the Borrower or any of its Subsidiaries is party to a legally enforceable
agreement, in either case that would prohibit such Domestic Subsidiary from being a Subsidiary Guarantor without the consent of (or the approval of directors appointed by) a third party owner of such Domestic Subsidiary; and 
  
 16 
  

 (c) any individual Domestic Subsidiary having total assets with a book value that is less than one percent
(1%) of the aggregate book value of the total Consolidated assets of the Borrower and its Subsidiaries (as of the most recent date for which financial statements have been delivered). 
 "Indebtedness" means, with respect to any Person at any date and without duplication, the sum of the following: 
 (a) all liabilities, obligations and indebtedness for borrowed money of such Person, including, but not limited to, obligations evidenced by bonds,
debentures, notes or other similar instruments of such Person; 
 (b) all obligations of such Person to pay the deferred purchase price of
property or services (including, without limitation, all obligations under non-competition, earn-out or similar agreements in connection with an acquisition), except trade payables and accrued obligations arising in the ordinary course of business,
so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; 
 (c) the Attributable Indebtedness of such Person with respect to such Person's obligations in respect of Capital Leases and Synthetic Leases
(regardless of whether accounted for as indebtedness under GAAP); 
 (d) all Indebtedness of any other Person secured by a Lien on any
asset owned by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 
 (e) all Guaranty Obligations of such Person; 
 (f) all obligations, contingent or otherwise, of such Person in connection with letters of credit, whether or not drawn, including, without limitation, any reimbursement obligation, and bankers' acceptances issued for the account of such
Person; 
 (g) all cash obligations of any such Person to redeem, repurchase, exchange, defease or otherwise make payments in respect of
Capital Stock of such Person, unless such redemption, repurchase, exchange, defeasance or other payment is contingent (unless such contingency has been satisfied) or is not required prior to the date that is ninety-one (91) days after the
Maturity Date; 
 (h) all Net Hedging Obligations of such Person; and 
 (i) the outstanding attributed principal amount under any asset securitization program of such Person. 
 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such 
  
 17 
  

 Person is not legally liable therefor under Applicable Law or as a result of any legally enforceable contractual limitation with respect to such Indebtedness.

 "Indemnified Taxes" means Taxes and Other Taxes other than Excluded Taxes. 
 "Insurance and Condemnation Event" means the receipt by the Borrower or any of its Subsidiaries of any cash insurance proceeds or condemnation
award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective property or assets. 
 "Intercompany Subordination Agreement" means an Intercompany Subordination Agreement substantially in the form of Exhibit J by and among the Administrative Agent and the applicable Credit Parties or
Subsidiaries thereof party thereto. 
 "Intercreditor Agreement" means each intercreditor agreement by and among the
Administrative Agent, the Canadian Administrative Agent, the Credit Parties, the Canadian Credit Parties and each lender or group of lenders (or any authorized representative thereof) with respect to any secured Indebtedness incurred pursuant to
Section 10.1(m), which agreement shall be in form and substance satisfactory to the Administrative Agent and the Canadian Administrative Agent, as amended, restated, supplemented or otherwise modified from time to time in accordance with
the terms of this Agreement. 
 "Interest Period" has the meaning assigned thereto in Section 4.1(b). 

"Interest Rate Contract" means any interest rate swap agreement, interest rate cap agreement, interest rate floor agreement, interest rate
collar agreement, interest rate option or any other agreement regarding the hedging of interest rate risk exposure executed in connection with hedging the interest rate exposure of any Person and any confirming letter executed pursuant to such
agreement, all as amended, restated, supplemented or otherwise modified from time to time. 
 "ISP98" means the International
Standby Practices (1998 Revision, effective January 1, 1999), International Chamber of Commerce Publication No. 590. 
 "Issuing Lender" means (a) with respect to Letters of Credit issued hereunder on or after the Closing Date, Wachovia, in its capacity as issuer thereof, or any successor thereto or any other Lender designated as an Issuing Lender
by the Original Borrower (with reasonable prior notice of such designation by the Original Borrower to the Administrative Agent) and (b) with respect to the Existing Letters of Credit, the issuers thereof as identified on Schedule
1.1(a). 
 "ITA" means the Income Tax Act (Canada), as amended or modified from time to time. 
 "L/C Commitment" means the lesser of (a) One Hundred Million Dollars ($100,000,000) and (b) the aggregate Commitments of the Lenders.

 "L/C Facility" means the letter of credit facility established pursuant to Article III. 
 "L/C Obligations" means at any time, an amount equal to the sum of (a) the aggregate undrawn and unexpired amount of the then outstanding
Letters of Credit and (b) the aggregate 
  
 18 
  

 amount of drawings under Letters of Credit which have not then been reimbursed
pursuant to Section 3.5. 
 "L/C Participants" means the collective reference to all of the Lenders other than the
applicable Issuing Lender. 
 "L/C Supporting Documentation" has the meaning assigned thereto in Section 3.2.

 "Lender" means each Person that is bound by the terms of this Agreement as a Lender (including, without limitation, each Issuing
Lender and the Swingline Lender unless the context otherwise requires) and each Person that hereafter becomes a party to this Agreement as a Lender pursuant to Section 13.10. 
 "Lending Office" means, with respect to any Lender, the office of such Lender maintaining such Lender's Extensions of Credit. 
 "Letter of Credit Application" means an application, in the form specified by the applicable Issuing Lender from time to time, requesting the
applicable Issuing Lender to issue a Letter of Credit. 
 "Letters of Credit" means the collective reference to letters of credit
issued pursuant to Section 3.1 and the Existing Letters of Credit. 
 "LIBOR" means the rate of interest per annum determined on the basis of the rate for deposits in Dollars in minimum amounts of at least $5,000,000 for a period equal to the applicable Interest Period which appears on the Reuters Page
LIBOR01 (or any successor page) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for any reason, such rate does not appear on Reuters Page LIBOR01 (or any successor page) then "LIBOR" shall be determined by the Administrative Agent to be the arithmetic
average of the rate per annum at which deposits in Dollars in minimum amounts of at least $5,000,000 would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two
(2) Business Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period. Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest
error. 
 "LIBOR Rate" means a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) determined by the
Administrative Agent pursuant to the following formula: 
 LIBOR Rate =
                        LIBOR               
           
                         1.00-Eurodollar Reserve Percentage 
 "LIBOR Rate Loan" means any Loan bearing interest at a rate based upon the LIBOR Rate as provided in Section 4.1(a). 
 "Lien" means, with respect to any asset, any mortgage, leasehold mortgage, lien, pledge, charge, security interest, hypothec, hypothecation,
assignment by way of security or 
  
 19 
  

 encumbrance of any kind in respect of such asset. For the purposes of this
Agreement, a Person shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease or other title retention agreement relating to
such asset. 
 "Loan Documents" means, collectively, this Agreement, each Note, the Letter of Credit Applications, the Security
Documents, each Intercreditor Agreement, the Intercompany Subordination Agreement, and each other document, instrument, certificate and agreement executed and delivered by the Parent, the Borrower or any of their respective Subsidiaries in
connection with this Agreement or otherwise referred to herein or contemplated hereby (excluding any Hedging Agreement), all as may be amended, restated, supplemented or otherwise modified from time to time. 
 "Loans" means the collective reference to the Revolving Credit Loans and the Swingline Loans, and "Loan" means any of such Loans. 
 "Material Adverse Effect" means, with respect to the Borrower or any of its Subsidiaries, a material adverse effect on (a) the business,
assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole, or (b) the ability of any such Person to perform its obligations under the Loan Documents to
which it is a party. 
 "Material Subsidiary" means: 
 (a) each Domestic Subsidiary of the Borrower, other than the Immaterial Subsidiaries; and 
 (b) each Subsidiary that, notwithstanding the definition of Immaterial Subsidiary, is designated as a Material Subsidiary pursuant to
Section 8.10(b). 
 Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, any
Subsidiary that (i) owns a Material Subsidiary or (ii) provides a guaranty of (A) the Existing Notes, (B) any Indebtedness incurred to refinance, refund, renew or extend the Existing Notes as permitted pursuant to
Section 10.1(d), (C) any Indebtedness permitted pursuant to Section 10.1(m), (D) any Indebtedness incurred to refinance, refund, renew or extend any Indebtedness incurred pursuant to Section 10.1(m) as
permitted pursuant to Section 10.1(d) or (E) any Indebtedness permitted pursuant to Section 11.1(o)(viii), in each case, shall be a Material Subsidiary. 
 "Maturity Date" means the earliest to occur of: 
 (a) May 25, 2011; provided, however, that such date shall be accelerated to: 
 (i) the date which is ninety-one (91) days prior to the then current maturity date of any Specified Existing Note if on the date
which is one hundred twenty (120) days prior to the then current maturity date of such Specified Existing Note either (A) the remaining outstanding principal balance thereof (excluding any such balance as to which sums have been set aside
for the payment thereof 
  
 20 
  

 pursuant to any defeasance or sinking fund or escrow
arrangement or similar provisions) is in excess of $75,000,000 or (B) the Aggregate Credit Exposure is in excess of $100,000,000 and the outstanding principal balance of such Specified Existing Note (excluding any such balance as to which sums
have been set aside for the payment thereof pursuant to any defeasance or sinking fund or escrow arrangement or similar provisions) has not been paid in full; or 
 (ii) the date which is ninety-one (91) days prior to the then current maturity date of any Indebtedness permitted pursuant to
Section 11.1(o)(viii) if, on the date which is one hundred twenty (120) days prior to the then current maturity date of such Indebtedness, such Indebtedness has not been paid in full in accordance with the terms of this Agreement or
extended or refinanced such that the maturity of such Indebtedness is more than ninety-one (91) days after May 25, 2011. 
 (b) the date of termination of the entire Commitment by the Borrower pursuant to Section 2.5; or 
 (c) the date of termination of the Commitment by the Administrative Agent on behalf of the Lenders pursuant to Section 11.2(a). 
 "Moody's" means Moody's Investors Service, Inc. and any successor thereto. 
 "Multiemployer Plan" means a "multiemployer plan" as defined in Section 4001(a)(3) of ERISA to which the Borrower or any of its
Subsidiaries or any of their ERISA Affiliates is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding six (6) years. 
 "Net Cash Proceeds" means, as applicable; 
 (a) with respect to any Asset Disposition, the gross cash proceeds received by the Borrower or any of its Subsidiaries therefrom less the sum of the following, without duplication, (i) selling expenses
incurred in connection with such Asset Disposition (including reasonable brokers' fees and commissions, legal, accounting and other professional and transactional fees, transfer and similar taxes and the Original Borrower's reasonable good faith
estimate of income taxes paid or payable in connection with such sale), (ii) reasonable reserves with respect to post-closing adjustments, indemnities and other contingent liabilities established in connection with such Asset Disposition
(provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds), (iii) the principal amount, premium or penalty, if any, interest and other amounts on any
Indebtedness secured by a Lien on the assets (or a portion thereof) sold in such Asset Disposition, which Indebtedness is repaid with such proceeds and (iv) the Original Borrower's reasonable good faith estimate of cash payments required to be
made within ninety (90) days of such Asset Disposition with respect to retained liabilities directly related to the assets (or a portion thereof) sold in such Asset Disposition (provided that, to the extent that cash proceeds are not
used to make payments in respect of such retained liabilities within 
  
 21 
  

 ninety (90) days of such Asset
Disposition, such cash proceeds shall constitute Net Cash Proceeds); and 
 (b) with respect to any Insurance and
Condemnation Event, the gross cash proceeds received by the Borrower or any of its Subsidiaries therefrom less the sum of the following, without duplication, (i) all fees and expenses in connection therewith and (ii) the principal
amount, premium or penalty, if any, interest and other amounts on any Indebtedness secured by a Lien on the assets (or a portion thereof) subject to such Insurance and Condemnation Event, which Indebtedness is repaid in connection therewith.

 "Net Hedging Obligations" means, with respect to any Hedging Agreement as of any date, the Termination Value of such Hedging
Agreement on such date. 
 "Newco" means a corporation or other entity to be formed under the laws of a state of the United States.

 "Newco Fixed Assets" means, collectively, the Catawba Mill, the Catawba Mill Real Property, the Catawba Mill Equipment and any
and all other real property and equipment owned or thereafter acquired by Newco or in which Newco has or at any time in the future may acquire any right, title or interest, and wherever located or deemed located to the extent related to or forming a
part of the Catawba Mill, the Catawba Mill Real Property or the Catawba Mill Equipment; provided, that in no event shall the Newco Fixed Assets include any Coverage Assets. 
 "Newco Transactions" means the following transactions, in each case, to the extent permitted pursuant to, and in accordance with the terms of,
this Agreement and the Canadian Credit Agreement: 
 (a) the formation by the Original Borrower of Newco; 
 (b) the transfer of the Catawba Mill Assets from the Original Borrower to Newco in exchange for the Catawba Note; and 
 (c) the transfer of all of the issued and outstanding Capital Stock of Newco held by the Original Borrower to the Parent pursuant to
Section 10.5(i) or Section 10.6(h). 
 "New Material Subsidiary" has the meaning assigned thereto in
Section 8.10. 
 "Notes" means the collective reference to the Revolving Credit Notes and the Swingline Note.

 "Notice of Account Designation" has the meaning assigned thereto in Section 2.3(b). 
 "Notice of Borrowing" has the meaning assigned thereto in Section 2.3(a). 
 "Notice of Conversion/Continuation" has the meaning assigned thereto in Section 4.2. 
  
 22 
  

 "Notice of Prepayment" has the meaning assigned thereto in Section 2.4(c). 
 "Obligations" means, in each case, whether now in existence or hereafter arising: (a) the principal of and interest on (including interest
accruing after the filing of any bankruptcy or similar petition) the Loans, (b) the L/C Obligations, (c) all Hedging Obligations and (d) all other fees and commissions (including reasonable attorneys' fees), charges, indebtedness,
loans, liabilities, financial accommodations, obligations, covenants and duties owing by the Borrower or any of its Subsidiaries to the Lenders or the Administrative Agent, in each case under any Loan Document, with respect to any Loan or Letter of
Credit, of every kind, nature and description, direct or indirect, absolute or contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any note. 
 "OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control. 
 "Officer's Compliance Certificate" means a certificate of the chief financial officer, the treasurer, or the assistant treasurer of the Original
Borrower substantially in the form of Exhibit F. 
 "Operating Lease" means, as to any Person as determined in
accordance with GAAP, any lease of property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease. 
 "Original Borrower" has the meaning assigned thereto in the introductory paragraph. 
 "Original Newco Indebtedness"
has the meaning assigned thereto in Section 10.1(m)(i). 
 "Other Taxes" means all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Loan Document. 
 "Parent" means AbitibiBowater, Inc., a Delaware corporation f/k/a Alpha-Bravo Holdings,
Inc. 
 "Parent Guarantor" means the Parent, as guarantor pursuant to the Parent Guaranty Agreement. 
 "Parent Guaranty Agreement" means the unconditional guaranty agreement executed by the Parent pursuant to Section 8.10(e)(i) in
favor of the Administrative Agent, for the ratable benefit of the Secured Parties, in form and substance satisfactory to the Administrative Agent, as amended, restated, supplemented or otherwise modified from time to time. 
 "Parent Overhead Expenses" means (a) accounting and auditing costs and expenses incurred by the Parent in the ordinary course of its
business in connection with preparing financial reports and tax filings; (b) customary fees and expenses payable to the SEC and other reasonable and customary costs and expenses payable in connection with the Parent being a publicly traded
company (including, without limitation, reasonable and customary fees and expenses required to be paid for professional and regulatory compliance); (c) reasonable and customary legal fees and expenses required for the corporate maintenance of
the Parent and the 
  
 23 
  

 Borrower and its Subsidiaries; (d) reasonable and customary director fees;
(e) reasonable and customary costs and expenses payable for director and officer insurance; (f) transfer agent fees payable in connection with Capital Stock of the Parent; and (g) franchise taxes and other fees payable to the
jurisdiction of incorporation or qualification of the Parent incurred in the ordinary course of conducting its business; provided that in no event shall Parent Overhead Expenses include management fees, salaries, bonuses, debt service and
dividends and other distributions in respect of the Capital Stock of the Parent. 
 "Participant" has the meaning assigned thereto
in Section 13.10(d). 
 "PBGC" means the Pension Benefit Guaranty Corporation or any successor agency. 
 "Pension Plan" means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV of ERISA or
Section 412 of the Code and which (a) is maintained for the employees of the Borrower or any of its Subsidiaries or any of their ERISA Affiliates or (b) has at any time within the preceding six (6) years been maintained for the
employees of the Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates which the Borrower or any of its Subsidiaries or any of their ERISA Affiliates sponsors, maintains, or to which it makes, is making or is
obligated to make, contributions. 
 "Permitted Acquisition" means any investment by the Borrower or any of its Subsidiaries in the
form of the acquisition of all or substantially all of the business or assets, or any portion of the business or assets that constitutes a line of business, a business unit or a division (whether by the acquisition of Capital Stock, assets or any
combination thereof), of any other Person if each such acquisition or investment meets all of the following requirements: 
 (a) with respect to any acquisition: 
 (i) such acquisition is not a hostile acquisition (with evidence thereof to
be provided to the Administrative Agent or the Canadian Administrative Agent upon its reasonable request); 
 (ii) the
Person or business to be acquired shall be in a substantially similar line of business as the Borrower and its Subsidiaries pursuant to Section 10.12; 
 (iii) if such transaction is a merger or consolidation involving a Credit Party or a Canadian Credit Party, the surviving Person shall
be a Credit Party or Canadian Credit Party and no Change of Control shall have been effected thereby; 
 (iv) if the
acquisition will result in the acquisition of, or creation of, any New Material Subsidiary, the Borrower shall comply with Section 8.10 hereof; 
 (v) no Default or Event of Default shall have occurred and be continuing both before and after giving effect to such acquisition; and

  
 24 
  

 (vi) after giving effect to the acquisition, at least (A) $50,000,000 in
availability shall exist under the Credit Facility and (B) $25,000,000 in availability shall exist under the Canadian Credit Facility; and 
 (b) with respect to any acquisition for which the Permitted Acquisition Consideration is greater than $50,000,000 or any acquisition funded (in whole or in part) by Extensions of Credit or Canadian Extensions of Credit
(in addition to the requirements set forth in clause (a) above): 
 (i) no less than fifteen (15) Business Days
prior to the proposed closing date of such acquisition, the Original Borrower shall have delivered written notice of such acquisition to the Administrative Agent and the Canadian Administrative Agent, which notice shall include the proposed closing
date of such acquisition; 
 (ii) no later than five (5) Business Days prior to the proposed closing date of such
acquisition, the Original Borrower shall have delivered to the Administrative Agent and the Canadian Administrative Agent an Officer's Compliance Certificate demonstrating, in form and substance reasonably satisfactory thereto, (A) pro
forma compliance (as of the most recent fiscal quarter ended for which financial statements have been delivered pursuant hereto, adjusted to give effect the acquisition and any Extensions of Credit or Canadian Extensions of Credit made or to
be made in connection therewith) with each covenant contained in Article IX and (B) a pro forma Consolidated Senior Secured Leverage Ratio (as of the most recent fiscal quarter ended for which financial statements have been
delivered pursuant hereto, adjusted to give effect the acquisition and any Extensions of Credit or Canadian Extensions of Credit made or to be made in connection therewith) not to exceed 1.00 to 1.00; 
 (iii) no later than five (5) Business Days prior to the proposed closing date of such acquisition, the Original Borrower, to the
extent requested by the Administrative Agent or the Canadian Administrative Agent, (A) shall have delivered to the Administrative Agent or the Canadian Administrative Agent, as applicable, promptly upon the finalization thereof, copies of
substantially final Permitted Acquisition Documents, which shall be in form and substance reasonably satisfactory to the Administrative Agent or the Canadian Administrative Agent, as applicable, and (B) shall have delivered to, or made
available for inspection by, the Administrative Agent or the Canadian Administrative Agent, as applicable, substantially complete Permitted Acquisition Diligence Information, which shall be in form and substance reasonably satisfactory to the
Administrative Agent or the Canadian Administrative Agent, as applicable; 
 (iv) the Original Borrower shall provide such
other documents and other information as may be reasonably requested by the Administrative Agent or the Canadian Administrative Agent in connection with the acquisition; and 
 
 
 25 
  

 (v) the Original Borrower shall demonstrate, in form and substance reasonably satisfactory to the Administrative Agent and the Canadian
Administrative Agent, that the entity to be acquired had positive Consolidated EBITDA for the four (4) fiscal quarter period ended prior to the proposed closing date of such acquisition (it being agreed and acknowledged that clause (b)(vi) of
the definition of "Consolidated EBITDA" shall be calculated solely with respect to the Person or business to be acquired); and 
 (c) with respect to any acquisition for which the Permitted Acquisition Consideration is less than $50,000,000 and such acquisition is not funded (in whole or in part) by Extensions of Credit or Canadian Extensions of Credit (in addition to
the requirements set forth in clause (a) above): 
 (i) no more than ten (10) days following the closing date of
such acquisition, the Original Borrower shall have delivered written notice of such acquisition to the Administrative Agent and the Canadian Administrative Agent, which notice shall include the closing date of such acquisition; and 
 (ii) to the extent requested by the Administrative Agent or the Canadian Administrative Agent, the Original Borrower shall have
delivered to the Administrative Agent or the Canadian Administrative Agent, as applicable, promptly upon the finalization thereof (but no later than fifteen (15) days after the closing date of such acquisition) copies of substantially final
Permitted Acquisition Documents. 
 Notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, the Original Borrower
shall have obtained the prior written consent of the Required Lenders prior to the consummation of such acquisition if (1) the Permitted Acquisition Consideration for any such acquisition (or series of related acquisitions), together with all
other acquisitions consummated during the previous twelve (12) month period exceeds $100,000,000 in the aggregate (excluding any portion of the acquisitions paid with the proceeds from any equity issuance by the Borrower) and (2) the
Permitted Acquisition Consideration for such acquisition (or series of related acquisitions), together with all other acquisitions consummated during the term of this Agreement, exceeds $300,000,000 in the aggregate (excluding any portion of the
acquisitions paid with the proceeds from any equity issuance by the Borrower). 
 "Permitted Acquisition Consideration" means the
aggregate amount of the purchase price (including, but not limited to, any assumed debt, earn-outs (valued at the maximum amount payable thereunder), deferred payments, or Capital Stock of the Borrower, net of the applicable acquired company's cash
and Cash Equivalent balance as shown on its most recent financial statements delivered in connection with the applicable Permitted Acquisition) to be paid on a singular basis in connection with any applicable Permitted Acquisition as set forth in
the applicable Permitted Acquisition Documents executed by the Borrower or any of its Subsidiaries in order to consummate the applicable Permitted Acquisition. 
 "Permitted Acquisition Diligence Information" means with respect to any acquisition proposed by the Borrower or any of its Subsidiaries, to the extent applicable and in the 
  
 26 
  

 possession of the Borrower or any of its Subsidiaries, all material financial information, all material contracts, all material
customer lists, all material supply agreements, and all other material information, in each case, reasonably requested to be delivered to the Administrative Agent or the Canadian Administrative Agent in connection with such acquisition (except to
the extent that any such information is (a) subject to any confidentiality agreement, unless mutually agreeable arrangements can be made to preserve such information as confidential, (b) classified or (c) subject to any
attorney-client privilege). 
 "Permitted Acquisition Documents" means with respect to any acquisition proposed by the Borrower or
any of its Subsidiaries, the purchase agreement, sale agreement, merger agreement or other similar agreement evidencing such acquisition (whichever is applicable), including, without limitation, all schedules and exhibits thereto and each other
material document executed, delivered, contemplated by or prepared in connection therewith and any amendment, modification or supplement to any of the foregoing. 
 "Permitted Liens" means the Liens permitted pursuant to Section 10.2. 
 "Person"
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity. 
 "Prime Rate" means, at any time, the rate of interest per annum publicly announced from time to time by Wachovia as its prime rate. Each change in the Prime Rate shall be effective as of the opening of business
on the day such change in such prime rate occurs. The parties hereto acknowledge that the rate announced publicly by Wachovia as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or
other banks. 
 "QSPE" means each of the following: (a) Calhoun Note Holdings AT LLC, (b) Calhoun Note Holdings TI LLC,
(c) Bowater Catawba Note Holdings I LLC, (d) Bowater Catawba Note Holdings II LLC, (e) Bowater Saluda Note Holdings LLC, (f) Timber Note Holding LLC and (g) any other qualified special purpose entity created to facilitate
the sale and/or the monetization of receivables from the sale of timberlands pursuant to Section 10.5(g); provided that: 
 (i) no portion of the Indebtedness or any other obligations (contingent or otherwise) of any such Person (1) may be guaranteed by the Borrower or any of its Subsidiaries, (2) may be recourse to or obligate the
Borrower or any of its Subsidiaries in any way or (3) may subject any property or asset of the Borrower or any of its Subsidiaries, directly or indirectly, contingently or otherwise, to the satisfaction thereof (other than, in the case of
clauses (1) (solely with respect to guaranties of make-whole premiums), (2) and (3), pursuant to Standard Securitization Undertakings); 
 (ii) the Borrower and its Subsidiaries may not have any material contract, agreement, arrangement or understanding with any such Person other than on terms no less favorable to the Borrower or any of its Subsidiaries
than those that might be obtained at the time from Persons that are not Affiliates of the Borrower or any of its Subsidiaries; and 
  
 27 
  

 (iii) the Borrower and its Subsidiaries may not (A) have any obligation to maintain or preserve the financial condition of any
such Person or (B) cause any such Person to achieve certain levels of operating results. 
 "Register" has the meaning assigned
thereto in Section 13.10(c). 
 "Reimbursement Obligation" means the obligation of the Borrower to reimburse the
applicable Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit. 
 "Related Parties" means,
with respect to any Person, such Person's Affiliates and the directors, officers, employees, agents and advisors of such Person and of such Person's Affiliates. 
 "Required Agreement Lenders" means, at any date, any combination of Lenders having more than fifty percent (50%) of the sum of the aggregate amount of the Commitment under this Credit Facility or, if the
Commitment under this Credit Facility has been terminated, any combination of Lenders holding more than fifty percent (50%) of the aggregate Extensions of Credit. 
 "Required Lenders" means, at any date, any combination of Lenders and Canadian Lenders having more than fifty percent (50%) of the sum of
(a) the aggregate amount of the Commitment under this Credit Facility (or if the Commitment has been terminated, the aggregate amount of Extensions of Credit under this Credit Facility) plus (b) the aggregate amount of the
commitments under the Canadian Credit Facility (or, if the commitments under the Canadian Credit Facility have been terminated, the aggregate amount of the Canadian Extensions of Credit). 
 "Responsible Officer" means, as to any Person, the chief executive officer, president, chief financial officer, controller, treasurer or
assistant treasurer of such Person or any other officer of such Person reasonably acceptable to the Administrative Agent and the Canadian Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer of a Person
shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Person and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Person.

 "Restricted Jurisdictions" means California, North Dakota, South Dakota or Vermont. 
 "Restricted Subsidiary" means any Person that is a "Restricted Subsidiary" pursuant to the definition thereof as contained in the Existing Notes
as in effect as of the Closing Date, for so long as such Existing Notes or any Indebtedness incurred to refinance such Existing Notes is outstanding and includes provisions restricting the granting of a lien on the capital stock or indebtedness of
such Restricted Subsidiaries. 
 "Revolving Credit Facility" means the revolving credit facility established pursuant to Article
II. 
 "Revolving Credit Loan" means any revolving loan made to the Borrower pursuant to Section 2.1, and all such
revolving loans collectively as the context requires. 
  
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 "Revolving Credit Note" means a
promissory note made by the Borrower in favor of a Lender evidencing the Revolving Credit Loans made by such Lender, substantially in the form of Exhibit A-1, and any amendments, supplements and modifications thereto, any substitutes
therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part. 
 "S&P" means
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto. 
 "SEC" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
 "Sanctioned Entity" shall mean (a) an agency of the government of, (b) an organization directly or indirectly controlled by, or (c) a person resident in a country that is subject to a sanctions
program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/sanctions/index.html, or as otherwise published from time to time as such program may be applicable to such agency, organization
or person. 
 "Sanctioned Person" shall mean a person named on the list of Specially Designated Nationals or Blocked Persons
maintained by OFAC available at http://www.treas.gov/offices/ enforcement/ofac/sdn/index.html, or as otherwise published from time to time. 
 "Secured Parties" means the Administrative Agent, the Lenders and/or any party to a Hedging Agreement that was a Lender or an Affiliate of a Lender at the time such Hedging Agreement was executed. 
 "Security Documents" means the collective reference to the Collateral Agreement, the Subsidiary Guaranty Agreement, the Parent Guaranty
Agreement, the Catawba Mortgage, each Foreign Pledge Document and each other agreement or writing pursuant to which the Parent or any Credit Party purports to pledge or grant a security interest in any property or assets securing the Obligations or
any such Person purports to guaranty the payment and/or performance of the Obligations, in each case, as amended, restated, supplemented or otherwise modified from time to time. 
 "Significant Indebtedness" means Indebtedness (other than the Obligations and the Canadian Obligations) of the Borrower and its
Subsidiaries the outstanding principal amount of which is in excess of $25,000,000. 
 "Solvent" means, as to the Borrower
and its Subsidiaries on a particular date, that any such Person (a) has capital sufficient to carry on its business and transactions and all business and transactions in which it is about to engage and is able to pay its debts as they mature,
(b) has assets having a value, both at fair valuation and at present fair saleable value, greater than the amount required to pay its probable liabilities (including contingencies), and (c) does not believe that it will incur debts or
liabilities beyond its ability to pay such debts or liabilities as they mature. 
 "Specified Existing Notes" means each of the
Existing Notes which (a) as of the Closing Date, matures or is subject to mandatory redemption prior to May 25, 2011 and (b) has an 
  
 29 
  

 outstanding principal amount, as of the Closing Date, in excess of $75,000,000. The Specified Existing Notes shall be set forth on Schedule 1.1(b). 
 "Specified Non-Recurring Charges" means the non-recurring charges against income taken by the Original Borrower during the following periods in
the following amounts: 
 (a) with respect to the fiscal quarter ended March 31, 2007, non-recurring charges in the
amount of $9,500,000; 
 (b) with respect to the fiscal quarter ended June 30, 2007, non-recurring charges in the
amount of $20,000,000; 
 (c) with respect to the fiscal quarter ended September 30, 2007, non-recurring charges in
the amount of $46,000,000; 
 (d) with respect to the fiscal quarter ending December 31, 2007, non-recurring charges
consisting of the following, without duplication, (i) severance expenses of the Original Borrower, (ii) merger costs incurred with respect to the Combination and (iii) other mill closure costs, in each case, taken during such quarter,
in an aggregate amount to be determined in accordance with GAAP, but not to exceed $100,000,000; and 
 (e) with respect to
the fiscal quarter ending March 31, 2008, non-recurring charges consisting of the following, without duplication, (i) severance expenses of the Original Borrower, (ii) merger costs incurred with respect to the Combination and
(iii) other mill closure costs, in each case, taken during such quarter, in an aggregate amount to be determined in accordance with GAAP, but not to exceed $100,000,000 less the amount of Specified Non-Recurring Charges taken pursuant to
clause (d) above with respect to the fiscal quarter ended December 31, 2007; 
 provided that, notwithstanding anything to
the contrary contained in this Agreement or any other Loan Document, for purposes of calculating the Consolidated Senior Secured Leverage Ratio and the interest coverage ratio as set forth in Section 9.2, such non-recurring charges shall
be excluded from the non-recurring charges included in clause (b)(v) of the definition of Consolidated EBITDA. 
 "Standard
Securitization Undertakings" means, collectively, (i) customary arms-length servicing obligations (together with any related performance guaranties), (ii) obligations (together with any related performance guaranties) to refund the
purchase price or grant purchase price credits for dilutive events or misrepresentation (in each case unrelated to the collectibility of receivables or creditworthiness of the associated account debtors), (iii) representations, warranties,
covenants and indemnities (together with any related performance guaranties) of a type that are reasonably customary in accounts receivable securitizations and (iv) in the case of a QSPE, a guarantee by the Borrower or its Subsidiaries of any
make whole premium (but not any principal or interest) on Indebtedness of such QSPE. 
 "Subordinated Indebtedness" means the
collective reference to any Indebtedness of the Borrower or any of its Subsidiaries subordinated in right and time of payment to the Obligations 
  
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 and containing such other terms and conditions, in each case as are satisfactory to the Administrative Agent and the Canadian Administrative Agent. 
 "Subsidiary" means as to any Person, any corporation, partnership, limited liability company or other entity of which more than fifty percent
(50%) of the outstanding Capital Stock having ordinary voting power to elect a majority of the board of directors or other persons or governing body performing similar functions of such corporation, partnership, limited liability company or
other entity is at the time directly or indirectly owned or controlled by such Person and/or one or more Subsidiaries of such Person (irrespective of whether, at the time, Capital Stock of any other class or classes of such corporation, partnership,
limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency); provided, however, notwithstanding the foregoing, the terms "Subsidiary" and "Subsidiaries": 
 (a) shall include (i) all Subsidiaries of the Original Borrower (other than those noted in clause (b) below) and
(ii) all Subsidiaries of Newco; and 
 (b) shall exclude (i) all QSPEs and (ii) all of the Abitibi Entities.

 Unless otherwise qualified, references to "Subsidiary" or "Subsidiaries" herein shall refer to those of the Borrower. 
 "Subsidiary Borrower" means any Domestic Subsidiary of the Borrower that is designated as a borrower under this agreement in accordance with the
terms of Section 4.14. 
 "Subsidiary Guarantors" means each direct or indirect Material Subsidiary of the Borrower
(a) in existence on the Closing Date or (b) which becomes a party to the Subsidiary Guaranty Agreement in accordance with Section 8.10. 
 "Subsidiary Guaranty Agreement" means the unconditional guaranty agreement of even date executed by the Subsidiary Guarantors in favor of the Administrative Agent, for the ratable benefit of the Secured Parties,
substantially in the form of Exhibit H, as amended, restated, supplemented or otherwise modified from time to time. 
 "Swingline Commitment" means the lesser of (a) Ten Million Dollars ($10,000,000) and (b) the Commitment. 
 "Swingline Facility" means the swingline facility established pursuant to Section 2.2. 
 "Swingline
Lender" means Wachovia in its capacity as swingline lender hereunder. 
 "Swingline Loan" means any swingline loan made by the
Swingline Lender to the Borrower pursuant to Section 2.2, and all such swingline loans collectively as the context requires. 
 "Swingline Note" means a promissory note made by the Borrower in favor of the Swingline Lender evidencing the Swingline Loans made by the Swingline Lender, substantially in the form of Exhibit A-2, and any amendments,
supplements and modifications thereto, any 
  
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 substitutes therefor, and any replacements, restatements, renewals or extension
thereof, in whole or in part. 
 "Swingline Termination Date" means the first to occur of (a) the resignation of Wachovia as
Administrative Agent in accordance with Section 12.6 and (b) the Maturity Date. 
 "Synthetic Lease" means any
synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in
accordance with GAAP. 
 "Taxes" means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 "Termination Event" means except for any such event or condition that could not reasonably be expected to have a Material Adverse Effect: (a) a "Reportable Event" described in Section 4043 of ERISA for which the notice
requirement has not been waived by the PBGC, or (b) the withdrawal of the Borrower or any of its Subsidiaries or any of their ERISA Affiliates from a Pension Plan during a plan year in which it was a "substantial employer" as defined in
Section 4001(a)(2) of ERISA, or (c) the termination of a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA or similar
provision of other Applicable Law, if the plan assets are not sufficient to pay all plan liabilities, or (d) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC or any other
applicable Governmental Authority under other Applicable Law, or (e) any other event or condition which would constitute grounds under Section 4042(a) of ERISA or other Applicable Law for the termination of, or the appointment of a trustee
to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 412 of the Code or Section 302 of ERISA or the provisions of any other Applicable Law, or (g) the partial or complete withdrawal of the Borrower
or any of its Subsidiaries or of any of their ERISA Affiliates from a Multiemployer Plan if withdrawal liability is asserted by such plan, or (h) any event or condition which results in the reorganization or insolvency of a Multiemployer Plan
under Sections 4241 or 4245 of ERISA, or (i) any event or condition which results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under
Section 4042 of ERISA, or (j) the termination of a Canadian Pension Plan, the filing of a notice of intent to terminate a Canadian Pension Plan or the treatment of a Canadian Pension Plan amendment as a termination, under Applicable Law,
if the plan assets are not sufficient to pay all plan liabilities, or (k) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Canadian Pension Plan by any applicable Governmental Authority under
Applicable Law, or (l) any other event or condition which would constitute grounds under Applicable Law for the termination of, or the appointment of a trustee to administer, any Canadian Pension Plan, or (m) the partial or complete
withdrawal of the Borrower or any of its Subsidiaries from a Canadian Multiemployer Plan if withdrawal liability is asserted by such plan, or (n) any event or condition which results in the reorganization or insolvency of a Canadian
Multiemployer Plan, or (o) any event or condition which results in the 
  
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 termination of a Canadian
Multiemployer Plan or the institution by any Governmental Authority of proceedings to terminate a Canadian Multiemployer Plan. 
 "Termination Value" means, in respect of any one or more Hedging Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Hedging Agreements, (a) for any date on or after the
date such Hedging Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Hedging Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedging Agreements (which may include a Lender or any Affiliate of a
Lender). 
 "Third Amendment" means that certain Third Amendment and Waiver dated as of Third Amendment Effective Date by and among
the Original Borrower, the Subsidiary Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto). 
 "Third Amendment Effective Date" means February 25, 2008. 
 "UCC" means the Uniform Commercial Code as in effect
in the State of New York, as amended or modified from time to time. 
 "United States" means the United States of America.

 "Wachovia" means Wachovia Bank, National Association, a national banking association, and its successors. 
 "Wholly-Owned" means, with respect to a Subsidiary, that all of the shares of Capital Stock of such Subsidiary are, directly or indirectly,
owned or controlled by the Borrower and/or one or more of its Wholly-Owned Subsidiaries (except for (a) directors' qualifying shares or other shares required by Applicable Law to be owned by a Person other than the Borrower and (b) the
Exchangeable Shares). 
 SECTION 1.2 Other Definitions and Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms, (c) the words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation", (d) the word "will" shall be construed to have the
same meaning and effect as the word "shall", (e) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (f) any reference herein to any Person shall be construed to include such Person's successors and assigns,
(g) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (h) all references herein to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (i) the words "asset" and "property" shall be construed to have the 
  
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 same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights, (j) the term "documents" includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic
form, (k) in the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including;" the words "to" and "until" each mean "to but excluding;" and the word "through" means "to and
including", and (l) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
 SECTION 1.3 Accounting Terms. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP as in effect from time to time, applied on a consistent basis and in a manner
consistent with that used in preparing the audited financial statements required by Section 7.1(b), except as otherwise specifically prescribed herein. 
 SECTION 1.4 UCC Terms. Terms defined in the UCC in effect on the Closing Date and not otherwise defined herein shall, unless the context
otherwise indicates, have the meanings provided by those definitions. Subject to the foregoing, the term "UCC" refers, as of any date of determination, to the UCC then in effect. 
 SECTION 1.5 Rounding. Any financial ratios required to be maintained pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 SECTION 1.6 References to Agreement and Laws. Unless otherwise expressly provided herein, (a) references to formation
documents, governing documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the
extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Applicable Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Applicable Law. 
 SECTION 1.7 Times of Day. Unless otherwise specified, all
references herein to times of day shall be references to Eastern time (daylight or standard, as applicable). 
 SECTION 1.8 Letter of
Credit Amounts. Unless otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated
by such Letter of Credit or the Letter of Credit Application therefor, whether or not such maximum face amount is in effect at such time. 
  
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 SECTION 1.9 Amount of Obligations. Unless otherwise specified, for purposes of this Agreement, any determination of the amount of any outstanding
Canadian Extensions of Credit (including, without limitation, Canadian Loans) or Canadian Obligations shall be based upon the Dollar Amount of such outstanding Canadian Extensions of Credit (including, without limitation, Canadian Loans) or Canadian
Obligations. For the purpose of this Section 1.9, "Dollar Amount" means the amount of Dollars which is equivalent to the amount so expressed in Canadian Dollars at the most favorable spot exchange rate reasonably determined by the
Administrative Agent to be available to it at the relevant time and "Canadian Dollar" means, at any time of determination, the then official currency of Canada. 
 ARTICLE II 
 REVOLVING CREDIT FACILITY 
 SECTION 2.1 Revolving Credit Loans. Subject to the terms and conditions of this Agreement, and in reliance upon the representations and
warranties set forth herein, each Lender severally agrees to make Revolving Credit Loans to the Borrower from time to time from the Closing Date through, but not including, the Maturity Date as requested by the Borrower in accordance with the terms
of Section 2.3; provided, that (a) the aggregate principal amount of all outstanding Revolving Credit Loans (after giving effect to any amount requested) shall not exceed the Borrowing Limit and (b) the principal amount
of outstanding Revolving Credit Loans from any Lender shall not at any time exceed such Lender's Commitment less such Lender's Commitment Percentage of outstanding L/C Obligations and outstanding Swingline Loans. Each Revolving Credit Loan by
a Lender shall be in a principal amount equal to such Lender's Commitment Percentage of the aggregate principal amount of Revolving Credit Loans requested on such occasion. Subject to the terms and conditions hereof, the Borrower may borrow, repay
and reborrow Revolving Credit Loans hereunder until the Maturity Date. 
 SECTION 2.2 Swingline Loans. 
 (a) Availability. Subject to the terms and conditions of this Agreement, the Swingline Lender agrees to make Swingline Loans to the Borrower
from time to time from the Closing Date through, but not including, the Swingline Termination Date; provided, that the aggregate principal amount of all outstanding Swingline Loans (after giving effect to any amount requested), shall not
exceed the lesser of (i) the Borrowing Limit and (ii) the Swingline Commitment. 
 (b) Refunding. 
 (i) Swingline Loans shall be refunded by the Lenders on demand by the Swingline Lender. Such refundings shall be made by the Lenders in
accordance with their respective Commitment Percentages and shall thereafter be reflected as Revolving Credit Loans of the Lenders on the books and records of the Administrative Agent. Each Lender shall fund its respective Commitment Percentage of
Revolving Credit Loans as required to repay Swingline Loans outstanding to the Swingline Lender upon demand by the Swingline Lender but in no event later than 1:00 p.m. on the next succeeding Business Day after such demand is made. No Lender's
obligation to fund its respective Commitment Percentage of a Swingline Loan shall be 
  
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 affected by
any other Lender's failure to fund its Commitment Percentage of a Swingline Loan, nor shall any Lender's Commitment Percentage be increased as a result of any such failure of any other Lender to fund its Commitment Percentage of a Swingline Loan.

 (ii) The Borrower shall pay to the Swingline Lender on demand the amount of such Swingline Loans to the extent amounts
received from the Lenders are not sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded. In addition, the Borrower hereby authorizes the Administrative Agent to charge any account maintained by the Borrower
with the Swingline Lender (up to the amount available therein) in order to immediately pay the Swingline Lender the amount of such Swingline Loans to the extent amounts received from the Lenders are not sufficient to repay in full the outstanding
Swingline Loans requested or required to be refunded. If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so
recovered shall be ratably shared among all the Lenders in accordance with their respective Commitment Percentages (unless the amounts so recovered by or on behalf of the Borrower pertain to a Swingline Loan extended after the occurrence and during
the continuance of an Event of Default of which the Administrative Agent has received notice in the manner required pursuant to Section 12.3 and which such Event of Default has not been waived by the Required Lenders, the Required
Agreement Lenders or the Lenders, as applicable). 
 (iii) Each Lender acknowledges and agrees that its obligation to
refund Swingline Loans in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Article
V. Further, each Lender agrees and acknowledges that if prior to the refunding of any outstanding Swingline Loans pursuant to this Section, one of the events described in Section 11.1(i) or (j) shall have occurred, each
Lender will, on the date the applicable Revolving Credit Loan would have been made, purchase an undivided participating interest in the Swingline Loan to be refunded in an amount equal to its Commitment Percentage of the aggregate amount of such
Swingline Loan. Each Lender will immediately transfer to the Swingline Lender, in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing such
participation dated the date of receipt of such funds and for such amount. Whenever, at any time after the Swingline Lender has received from any Lender such Lender's participating interest in a Swingline Loan, the Swingline Lender receives any
payment on account thereof, the Swingline Lender will distribute to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's
participating interest was outstanding and funded). 
 SECTION 2.3 Procedure for Advances of Revolving Credit Loans and Swingline
Loans. 
 (a) Requests for Borrowing. The Original Borrower shall give the Administrative Agent irrevocable prior written notice
substantially in the form of Exhibit B (a "Notice of Borrowing") not later than 12:00 p.m. (i) on the same Business Day as each Base Rate Loan (including each Swingline Loan) and (ii) at least three (3) Business
Days before each LIBOR Rate Loan, of its intention to borrow, specifying (A) the date of such borrowing, which shall be a 
  
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 Business Day, (B) the amount of such borrowing, which shall be, (x) with respect to Base Rate Loans (other than Swingline Loans) in an aggregate principal
amount of $1,000,000 or a whole multiple of $500,000 in excess thereof, (y) with respect to LIBOR Rate Loans in an aggregate principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess thereof and (z) with respect to
Swingline Loans in an aggregate principal amount of $100,000 or a whole multiple of $100,000 in excess thereof, (C) whether such Loan is to be a Revolving Credit Loan or Swingline Loan, (D) in the case of a Revolving Credit Loan whether
the Loans are to be LIBOR Rate Loans or Base Rate Loans, and (E) in the case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto. A Notice of Borrowing received after 12:00 p.m. shall be deemed received on the next
Business Day. The Administrative Agent shall promptly notify the Lenders of each Notice of Borrowing. 
 (b) Disbursement of Revolving
Credit and Swingline Loans. Not later than 2:00 p.m. on the proposed borrowing date, (i) each Lender will make available to the Administrative Agent, for the account of the Original Borrower, at the Administrative Agent's Office in funds
immediately available to the Administrative Agent, such Lender's Commitment Percentage of the Revolving Credit Loans to be made on such borrowing date and (ii) the Swingline Lender will make available to the Administrative Agent, for the
account of the Original Borrower, at the Administrative Agent's Office in funds immediately available to the Administrative Agent, the Swingline Loans to be made on such borrowing date. The Borrower hereby irrevocably authorizes the Administrative
Agent to disburse the proceeds of each borrowing requested pursuant to this Section in immediately available funds by crediting or wiring such proceeds to the deposit account of the Original Borrower identified in the most recent notice
substantially in the form of Exhibit C (a "Notice of Account Designation") delivered by the Original Borrower to the Administrative Agent or as may be otherwise agreed upon by the Original Borrower and the Administrative Agent
from time to time. Subject to Section 4.7 hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds of any Revolving Credit Loan requested pursuant to this Section to the extent that any Lender has
not made available to the Administrative Agent its Commitment Percentage of such Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline Loans shall be made by the Lenders as provided in Section 2.2(b). 

SECTION 2.4 Repayment and Prepayment of Revolving Credit and Swingline Loans. 
 (a) Repayment on Maturity Date. The Borrower hereby agrees to repay the outstanding principal amount of (i) all Revolving Credit Loans in
full on the Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b), together, in each case, with all accrued but unpaid interest thereon. 
 (b) Mandatory Prepayments. 
 (i) Borrowing Limit. If at any time the outstanding principal amount of all Revolving Credit Loans plus the sum of all outstanding Swingline Loans and L/C Obligations exceeds the Borrowing Limit, the
Borrower agrees to prepay (A) if such excess results from a change to the Asset Coverage Amount, within three (3) Business Days following the delivery of the applicable financial statements resulting in such 
  
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 change or (B) in any other circumstance, immediately upon notice from the Administrative Agent, by payment to
the Administrative Agent for the account of the Lenders, Extensions of Credit in an amount equal to such excess with each such repayment applied first to the principal amount of outstanding Swingline Loans, second to the principal
amount of outstanding Revolving Credit Loans and third, with respect to any Letters of Credit then outstanding, a payment of cash collateral into a cash collateral account opened by the Administrative Agent, for the benefit of the Lenders in
an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit (such cash collateral to be applied in accordance with Section 11.2(b)). 
 (ii) Excess L/C Obligations. If at any time the outstanding amount of all L/C Obligations exceeds the L/C Commitment, then, in
each such case, the Borrower shall promptly make a payment of cash collateral into a cash collateral account opened by the Administrative Agent, for the benefit of itself and the Lenders, in an amount equal to the aggregate then undrawn and
unexpired amount of such Letters of Credit (such cash collateral to be applied in accordance with Section 11.2(b)). 
 (c)
Optional Prepayments. The Borrower may at any time and from time to time prepay Revolving Credit Loans and Swingline Loans, in whole or in part, with irrevocable prior written notice to the Administrative Agent substantially in the form of
Exhibit D (a "Notice of Prepayment") given not later than 12:00 p.m. (i) on the same Business Day as the prepayment of each Base Rate Loan and each Swingline Loan and (ii) at least three (3) Business Days
before the prepayment of each LIBOR Rate Loan, specifying the date and amount of prepayment and whether the prepayment is of LIBOR Rate Loans, Base Rate Loans, Swingline Loans or a combination thereof, and, if of a combination thereof, the amount
allocable to each. Upon receipt of such notice, the Administrative Agent shall promptly notify each Lender. If any such notice is given, the amount specified in such notice shall be due and payable on the date set forth in such notice. Partial
prepayments shall be in an aggregate amount of $1,000,000 or a whole multiple of $500,000 in excess thereof with respect to Base Rate Loans (other than Swingline Loans), $3,000,000 or a whole multiple of $1,000,000 in excess thereof with respect to
LIBOR Rate Loans and $100,000 or a whole multiple of $100,000 in excess thereof with respect to Swingline Loans. A Notice of Prepayment received after 12:00 p.m. shall be deemed received on the next Business Day. 
 (d) Limitation on Prepayment of LIBOR Rate Loans. The Borrower may not prepay any LIBOR Rate Loan on any day other than on the last day of the
Interest Period applicable thereto unless such prepayment is accompanied by any amount required to be paid pursuant to Section 4.9 hereof. 
 (e) Hedging Agreements. No repayment or prepayment pursuant to this Section shall affect any of the Borrower's obligations under any Hedging Agreement. 
 SECTION 2.5 Permanent Reduction of the Commitment. 
 (a) Voluntary Reduction. The Borrower shall have the right at any time and from time to time, upon at least five (5) Business Days prior written notice to the Administrative Agent, to permanently reduce,
without premium or penalty, (i) the entire Commitment at any 
  
 38 
  

 time or (ii) portions of the Commitment, from
time to time, in an aggregate principal amount not less than $5,000,000 or any whole multiple of $5,000,000 in excess thereof. Any reduction of the Commitment shall be applied to the Commitment of each Lender according to its Commitment Percentage.
All commitment fees accrued until the effective date of any termination of the Commitment shall be paid on the effective date of such termination. 
 (b) Corresponding Payment. Each permanent reduction permitted pursuant to this Section shall be accompanied by a payment of principal sufficient to reduce the aggregate outstanding Revolving Credit Loans,
Swingline Loans and L/C Obligations, as applicable, after such reduction to the Commitment as so reduced and if the Commitment as so reduced is less than the aggregate amount of all outstanding Letters of Credit, the Borrower shall be required to
deposit cash collateral in a cash collateral account opened by the Administrative Agent in an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. Such cash collateral shall be applied in accordance with
Section 11.2(b). Any reduction of the Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans and Swingline Loans (and furnishing of cash collateral for all L/C Obligations) and shall result in the
termination of the Commitment and the Credit Facility. Such cash collateral shall be applied in accordance with Section 11.2(b). If the reduction of the Commitment requires the repayment of any LIBOR Rate Loan, such repayment shall be
accompanied by any amount required to be paid pursuant to Section 4.9 hereof. 
 SECTION 2.6 Termination of Credit
Facility. The Credit Facility shall terminate on the Maturity Date. 
 ARTICLE III 
 LETTER OF CREDIT FACILITY 
 SECTION 3.1 L/C Commitment. Subject to the terms and conditions hereof, each Issuing
Lender, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit ("Letters of Credit") for the account of the Borrower on any Business Day from the Closing Date to
but not including the fifth (5th) Business Day prior to the Maturity Date in such form as may be approved from time to time by the applicable
Issuing Lender; provided, that no Issuing Lender shall have any obligation to issue any Letter of Credit if, after giving effect to such issuance, (a) the aggregate amount of L/C Obligations would exceed the L/C Commitment or
(b) the aggregate amount of L/C Obligations would exceed the Borrowing Limit. Each Letter of Credit shall (i) be denominated in Dollars in a minimum amount of $100,000 (or such lesser amount as agreed to by the applicable Issuing Lender),
(ii) be a standby letter of credit issued to support obligations of the Borrower or any of its Subsidiaries, contingent or otherwise, (iii) expire on a date that is no later than the earlier of (A) twelve (12) or thirteen
(13) months (as requested by the Original Borrower) after the date of issuance or last renewal of such Letter of Credit, and (B) the fifth (5th) Business Day prior to the Maturity Date and (iv) be subject to ISP98 and, to the extent not inconsistent therewith, the laws of the State of New York. No Issuing Lender shall at any time be obligated to issue any Letter of Credit
hereunder if such issuance would conflict with, or cause such Issuing Lender or any L/C Participant to exceed any limits imposed by, any Applicable Law. References herein to "issue" and derivations thereof with respect to Letters of Credit shall
also include extensions or 
  
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 modifications of any outstanding Letters of Credit, unless the context
otherwise requires. As of the Closing Date, each of the Existing Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a Letter of Credit issued and outstanding hereunder. 
 SECTION 3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time to time request that an Issuing Lender issue a Letter of
Credit by delivering to such Issuing Lender at such Issuing Lender's Lending Office and to the Administrative Agent at the Administrative Agent's Office a Letter of Credit Application therefor, completed to the reasonable satisfaction of the
applicable Issuing Lender and the Administrative Agent, and such other certificates, documents and other papers and information as such Issuing Lender and the Administrative Agent may reasonably request (the "L/C Supporting Documentation").
Upon receipt of any Letter of Credit Application and the L/C Supporting Documentation, the applicable Issuing Lender shall process such Letter of Credit Application and the L/C Supporting Documentation delivered to it in connection therewith in
accordance with its customary procedures and shall, after approving the same and receiving confirmation from the Administrative Agent that sufficient availability exists under the Credit Facility for the issuance of such Letter of Credit, subject to
Section 3.1 and Article V, promptly issue the Letter of Credit requested thereby (but in no event shall the applicable Issuing Lender be required to issue any Letter of Credit earlier than three (3) Business Days after its
receipt of the Letter of Credit Application therefor and the L/C Supporting Documentation relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by the applicable Issuing Lender
and the Original Borrower. The applicable Issuing Lender shall promptly furnish to the Original Borrower and the Administrative Agent a copy of such Letter of Credit and the Administrative Agent shall promptly notify each Lender of the issuance of
such Letter of Credit and, upon request by any Lender, furnish to such Lender a copy of such Letter of Credit and the amount of such Lender's participation therein. 
 SECTION 3.3 Commissions and Other Charges. 
 (a) Letter of Credit Commissions. The Borrower
shall pay to the Administrative Agent, for the account of the each applicable Issuing Lender and the L/C Participants, a letter of credit commission with respect to each Letter of Credit in an amount equal to the face amount of such Letter of Credit
(as such amount may be reduced by (i) any permanent reduction of such Letter of Credit or (ii) any amount which is drawn, reimbursed and no longer available under such Letter of Credit) multiplied by the Applicable Margin with
respect to LIBOR Rate Loans (determined on a per annum basis). Such commission shall be payable quarterly in arrears on the last Business Day of each calendar quarter, on the Maturity Date and thereafter on demand of the Administrative Agent. The
Administrative Agent shall, promptly following its receipt thereof, distribute to each applicable Issuing Lender and the L/C Participants all commissions received pursuant to this Section in accordance with their respective Commitment Percentages.

 (b) Issuance Fee. In addition to the foregoing commission, the Borrower shall pay to the Administrative Agent, for the account of
each applicable Issuing Lender, an issuance fee with respect to each Letter of Credit issued by such Issuing Lender in an amount equal to the face amount of such Letter of Credit multiplied by one-eighth of one percent (0.125%) per annum.
Such issuance fee shall be payable quarterly in arrears on the last Business Day of each calendar 
  
 40 
  

 quarter
commencing with the first such date to occur after the issuance of such Letter of Credit, on the Maturity Date and thereafter on demand of the applicable Issuing Lender. 
 (c) Other Costs. In addition to the foregoing fees and commissions, the Borrower shall pay or reimburse each Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit. 
 SECTION 3.4 L/C Participations. 
 (a) Each Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce such Issuing Lender to issue Letters of Credit hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby
accepts and purchases from such Issuing Lender, on the terms and conditions hereinafter stated, for such L/C Participant's own account and risk an undivided interest equal to such L/C Participant's Commitment Percentage in such Issuing Lender's
obligations and rights under and in respect of each Letter of Credit issued by such Issuing Lender hereunder and the amount of each draft paid by such Issuing Lender thereunder. Each L/C Participant unconditionally and irrevocably agrees with each
Issuing Lender that, if a draft is paid under any Letter of Credit issued by such Issuing Lender for which such Issuing Lender is not reimbursed in full by the Borrower through a Revolving Credit Loan or otherwise in accordance with the terms of
this Agreement, such L/C Participant shall pay to such Issuing Lender upon demand at such Issuing Lender's Lending Office an amount equal to such L/C Participant's Commitment Percentage of the amount of such draft, or any part thereof, which is not
so reimbursed. 
 (b) Upon becoming aware of any amount required to be paid by any L/C Participant to the applicable Issuing Lender
pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment made by such Issuing Lender under any Letter of Credit issued by it, such Issuing Lender shall notify the Administrative Agent and each L/C Participant of
the amount and due date of such required payment and such L/C Participant shall pay to such Issuing Lender the amount specified on the applicable due date. If any such amount is paid to such Issuing Lender after the date such payment is due, such
L/C Participant shall pay to such Issuing Lender on demand, in addition to such amount, the product of (i) such amount, multiplied by (ii) the daily average Federal Funds Rate as determined by the Administrative Agent during the
period from and including the date such payment is due to the date on which such payment is immediately available to such Issuing Lender, multiplied by (iii) a fraction, the numerator of which is the number of days that elapse during
such period and the denominator of which is 360. A certificate of the applicable Issuing Lender with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error. With respect to payment to an Issuing Lender
of the unreimbursed amounts described in this Section, if the L/C Participants receive notice that any such payment is due (A) prior to 2:00 p.m. on any Business Day, such payment shall be due that Business Day, and (B) after 2:00 p.m. on
any Business Day, such payment shall be due on the following Business Day. 
 (c) Whenever, at any time after the applicable Issuing Lender
has made payment under any Letter of Credit and has received from any L/C Participant its Commitment Percentage of such payment in accordance with this Section, such Issuing Lender receives any payment 
  
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 related to such Letter of Credit (whether directly from the Borrower or otherwise), or any payment of interest on account thereof,
such Issuing Lender will distribute to such L/C Participant its pro rata share thereof; provided, that in the event that any such payment received by such Issuing Lender shall be required to be returned by such Issuing Lender,
such L/C Participant shall return to such Issuing Lender the portion thereof previously distributed by such Issuing Lender to it. 
 SECTION 3.5 Reimbursement Obligation of the Borrower. In the event of any drawing under any Letter of Credit, the Borrower agrees to reimburse (either with the proceeds of a Revolving Credit Loan as provided for in this Section or with
funds from other sources), in same day funds, the applicable Issuing Lender on each date on which such Issuing Lender notifies the Original Borrower of the date and amount of a draft paid under any Letter of Credit for the amount of (a) such
draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment. The applicable Issuing Lender shall promptly deliver written notice of any drawing under any Letter of
Credit issued by such Issuing Lender to the Administrative Agent and the Original Borrower. Unless the Borrower shall immediately notify the applicable Issuing Lender that the Borrower intends to reimburse such Issuing Lender for such drawing from
other sources or funds, the Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent requesting that the Lenders make a Revolving Credit Loan bearing interest at the Base Rate on such date in the amount of
(a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment, and the Lenders shall make a Revolving Credit Loan bearing interest at the Base Rate in
such amount, the proceeds of which shall be applied to reimburse such Issuing Lender for the amount of the related drawing and costs and expenses. Each Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan in accordance
with this Section to reimburse the applicable Issuing Lender for any draft paid under a Letter of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the
conditions set forth in Section 2.3(a) or Article V. If the Borrower has elected to pay the amount of such drawing with funds from other sources and shall fail to reimburse the applicable Issuing Lender as provided above, the
unreimbursed amount of such drawing shall bear interest at the rate which would be payable on any outstanding Base Rate Loans which were then overdue from the date such amounts become payable (whether at stated maturity, by acceleration or
otherwise) until payment in full. 
 SECTION 3.6 Obligations Absolute. The Borrower's obligations under this Article III
(including, without limitation, the Reimbursement Obligation) shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment which the Borrower may have or have had against any
Issuing Lender or any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees that no Issuing Lender nor any L/C Participant shall be responsible for, and the Borrower's Reimbursement Obligation under Section 3.5
shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower
and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. No Issuing Lender
shall be liable for any error, omission, 
  
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 interruption or delay in transmission, dispatch or delivery of any message or
advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions caused by the applicable Issuing Lender's gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final
nonappealable judgment. The Borrower agrees that any action taken or omitted by the applicable Issuing Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful
misconduct shall be binding on the Borrower and shall not result in any liability of such Issuing Lender or any L/C Participant to the Borrower. The responsibility of the applicable Issuing Lender to the Borrower in connection with any draft
presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit
in connection with such presentment are in conformity with such Letter of Credit. 
 SECTION 3.7 Effect of Letter of Credit
Application. To the extent that any provision of any Letter of Credit Application or L/C Supporting Documentation related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article
III shall apply. 
 ARTICLE IV 
 GENERAL LOAN PROVISIONS 
 SECTION 4.1 Interest. 
 (a) Interest Rate Options. Subject to the provisions of this Section, at the election of the Original Borrower, (i) Revolving Credit Loans
shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin and (ii) Swingline Loans shall bear interest at the Base Rate plus the Applicable Margin. The
Original Borrower shall select the rate of interest and Interest Period, if any, applicable to any Revolving Credit Loan at the time a Notice of Borrowing is given pursuant to Section 2.3 or at the time a Notice of
Conversion/Continuation is given pursuant to Section 4.2. Any Revolving Credit Loan or any portion thereof as to which the Original Borrower has not duly specified an interest rate as provided herein shall be deemed a Base Rate Loan.

 (b) Interest Periods. In connection with each LIBOR Rate Loan, the Original Borrower, by giving notice at the times described in
Section 2.3 or 4.2, as applicable, shall elect an interest period (each, an "Interest Period") to be applicable to such Revolving Credit Loan, which Interest Period shall be a period of one (1), two (2), three (3), or six
(6) months; provided that: 
 (i) the Interest Period shall commence on the date of advance of or conversion to
any LIBOR Rate Loan and, in the case of immediately successive Interest Periods, each successive Interest Period shall commence on the date on which the immediately preceding Interest Period expires; 
  
 43 
  

 (ii) if any Interest Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day; provided, that if any Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day that is not a Business Day but is a day of the month after which no
further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day; 
 (iii) any Interest Period with respect to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the relevant calendar month at the end of such Interest Period; 
 (iv) no Interest
Period shall extend beyond the Maturity Date; and 
 (v) there shall be no more than eight (8) Interest Periods in
effect at any time. 
 (c) Default Rate. Subject to Section 11.3, (i) immediately upon the occurrence and during
the continuance of an Event of Default under Section 11.1(a), (b), (i) or (j), or (ii) at the election of the Required Agreement Lenders, upon the occurrence and during the continuance of any other Event of
Default, (A) the Borrower shall no longer have the option to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (B) all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in excess of
the rate then applicable to LIBOR Rate Loans until the end of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans, and (C) all outstanding Base Rate
Loans and other Obligations arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans. Interest shall continue to accrue on the
Obligations after the filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether state, federal or foreign. 
 (d) Interest Payment and Computation. Interest on each Base Rate Loan shall be due and payable in arrears on the last Business Day of each
calendar quarter commencing September 30, 2006; and interest on each LIBOR Rate Loan shall be due and payable on the last day of each Interest Period applicable thereto, and if such Interest Period extends over three (3) months, at the end
of each three (3) month interval during such Interest Period. Interest on LIBOR Rate Loans and all fees payable hereunder shall be computed on the basis of a 360-day year and assessed for the actual number of days elapsed and interest on Base
Rate Loans shall be computed on the basis of a 365/366-day year and assessed for the actual number of days elapsed. 
 (e) Maximum
Rate. In no contingency or event whatsoever shall the aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable Law which a
court of competent jurisdiction shall, in a final determination, deem applicable hereto. In the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in
effect hereunder shall automatically be reduced to the maximum rate permitted by Applicable Law and the Lenders shall at the Administrative Agent's option (i) promptly refund to the Original Borrower any interest received by the Lenders in

  
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 excess of the maximum lawful rate or (ii) apply such excess to the principal balance of the Obligations on a
pro rata basis. It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess
of that which may be paid by the Borrower under Applicable Law. 
 SECTION 4.2 Notice and Manner of Conversion or Continuation of
Loans. Provided that no Default or Event of Default has occurred and is then continuing, the Borrower shall have the option to (a) convert all or any portion of any outstanding Base Rate Loans (other than Swingline Loans) in a principal
amount equal to $3,000,000 or any whole multiple of $1,000,000 in excess thereof into one or more LIBOR Rate Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its outstanding LIBOR Rate Loans in a
principal amount equal to $1,000,000 or a whole multiple of $500,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such LIBOR Rate Loans as LIBOR Rate Loans. Whenever the Borrower desires to convert or
continue Revolving Credit Loans as provided above, the Original Borrower shall give the Administrative Agent irrevocable prior written notice in the form attached as Exhibit E (a "Notice of Conversion/Continuation") not later
than 12:00 p.m. three (3) Business Days before the day on which a proposed conversion or continuation of such Loan is to be effective specifying (A) the Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to be
converted or continued, the last day of the Interest Period therefor, (B) the effective date of such conversion or continuation (which shall be a Business Day), (C) the principal amount of such Loans to be converted or continued, and
(D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan. The Administrative Agent shall promptly notify the Lenders of such Notice of Conversion/Continuation. 
 SECTION 4.3 Fees. 
 (a)
Commitment Fee. The Borrower shall pay to the Administrative Agent, for the account of the Lenders, a non-refundable commitment fee at a rate per annum equal to 0.50% on the average daily unused portion of the Commitment as in effect from
time to time during the period commencing on the Closing Date and ending on the Maturity Date; provided, that the amount of outstanding Swingline Loans shall not be considered usage of the Commitment for the purpose of calculating such
commitment fee. The commitment fee shall be payable for each calendar quarter in arrears on the last Business Day of such calendar quarter during the term of this Agreement commencing with the calendar quarter ending September 30, 2006 and
ending on the Maturity Date. Such commitment fee shall be distributed by the Administrative Agent to the Lenders pro rata in accordance with the Lenders' respective Commitment Percentages. 
 (b) Other Fees. The Borrower agrees to pay any fees (and other expenses) as set forth in the Fee Letter. 
 SECTION 4.4 Manner of Payment. Each payment by the Borrower on account of the principal of or interest on the Loans or of any fee, commission or
other amounts (including the Reimbursement Obligation) payable to the Lenders under this Agreement shall be made not later than 2:00 p.m. on the date specified for payment under this Agreement to the Administrative Agent at the Administrative
Agent's Office for the account of the Lenders (other 
  
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 than as set forth below) pro rata in accordance
with their respective Commitment Percentages, (except as specified below), in Dollars, in immediately available funds and shall be made without any set-off, counterclaim or deduction whatsoever. Any payment received after such time but before 3:00
p.m. on such day shall be deemed a payment on such date for the purposes of Section 11.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day. Any payment received after 3:00 p.m. shall be
deemed to have been made on the next succeeding Business Day for all purposes. Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to each Lender at its Lending Office its pro rata
share of such payment in accordance with such Lender's Commitment Percentage, (except as specified below) and shall wire advice of the amount of such credit to each Lender. Each payment to the Administrative Agent of the applicable Issuing Lender's
fees or L/C Participants' commissions shall be made in like manner, but for the account of the applicable Issuing Lender or the L/C Participants, as the case may be. Each payment to the Administrative Agent of Administrative Agent's fees or expenses
shall be made for the account of the Administrative Agent and any amount payable to any Lender under Sections 4.9, 4.10, 4.11 or 13.3 shall be paid to the Administrative Agent for the account of the applicable Lender.
Subject to Section 4.1(b)(ii), if any payment under this Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such extension of time shall
in such case be included in computing any interest if payable along with such payment. 
 SECTION 4.5 Evidence of Indebtedness.

 (a) Extensions of Credit. The Extensions of Credit made by each Lender shall be evidenced by one or more accounts or records
maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Extensions of
Credit made by the Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with
respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Revolving Credit Note and/or
Swingline Note, as applicable, which shall evidence such Lender's Revolving Credit Loans and/or Swingline Loans, as applicable, in addition to such accounts or records. Each Lender may attach schedules to its Notes and endorse thereon the date,
amount and maturity of its Loans and payments with respect thereto. 
 (b) Participations. In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swingline
Loans. In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in
the absence of manifest error. 
  
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 SECTION 4.6 Adjustments. If any Lender shall, by
exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender's receiving payment of a proportion of the aggregate
amount of its Loans and accrued interest thereon or other such obligations (other than pursuant to Sections 4.9, 4.10, 4.11 or 13.3 hereof) greater than its pro rata share thereof as provided herein, then
the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them;
provided that: 
 (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and 
 (ii) the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or (B) any payment obtained
by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Swingline Loans and Letters of Credit to any assignee or participant, other than to the Borrower or any of its Subsidiaries (as to
which the provisions of this paragraph shall apply). 
 Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so under
Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct
creditor of each Credit Party in the amount of such participation. 
 SECTION 4.7 Nature of Obligations of Lenders Regarding Extensions
of Credit; Assumption by the Administrative Agent. The obligations of the Lenders under this Agreement to make the Loans and issue or participate in Letters of Credit are several and are not joint or joint and several. Unless the Administrative
Agent shall have received notice from a Lender prior to a proposed borrowing date with respect to a LIBOR Rate Loan or prior to 12:00 noon on a proposed borrowing date with respect to a Base Rate Loan that such Lender will not make available to the
Administrative Agent such Lender's ratable portion of the amount to be borrowed on such date (which notice shall not release such Lender of its obligations hereunder), the Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the proposed borrowing date in accordance with Sections 2.3(b), and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.
If such amount is made available to the Administrative Agent on a date after such borrowing date, such Lender shall pay to the Administrative Agent on demand an amount, until paid, equal to the product of (a) the amount not made available by
such Lender in accordance with the terms hereof, multiplied by (b) the daily average Federal Funds Rate during such period as determined by the Administrative Agent, multiplied by (c) a fraction, the numerator of which is the
number of days that elapse from and including such borrowing date to the date on which such amount not made available by such 
  
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 Lender in accordance with the terms hereof shall have become immediately available to the Administrative Agent, and the denominator of which is 360. A certificate of the
Administrative Agent with respect to any amounts owing under this Section shall be conclusive, absent manifest error. If such Lender's Commitment Percentage of such borrowing is not made available to the Administrative Agent by such Lender within
three (3) Business Days after such borrowing date, the Administrative Agent shall be entitled to recover such amount made available by the Administrative Agent with interest thereon at the rate per annum applicable to Base Rate Loans hereunder,
on demand, from the Borrower. The failure of any Lender to make available its Commitment Percentage of any Loan requested by the Borrower shall not relieve it or any other Lender of its obligation, if any, hereunder to make its Commitment Percentage
of such Loan available on the borrowing date, but no Lender shall be responsible for the failure of any other Lender to make its Commitment Percentage of such Loan available on the borrowing date. 
 SECTION 4.8 Changed Circumstances. 
 (a) Circumstances Affecting LIBOR Rate Availability. If with respect to any Interest Period the Administrative Agent or any Lender (after consultation with the Administrative Agent) shall determine that, by reason of circumstances
affecting the foreign exchange and interbank markets generally, deposits in eurodollars, in the applicable amounts are not being quoted via the Reuters Page LIBOR01 (or any successor page) or offered to the Administrative Agent or such Lender for
such Interest Period, then the Administrative Agent shall forthwith give notice thereof to the Original Borrower. Thereafter, until the Administrative Agent notifies the Original Borrower that such circumstances no longer exist, the obligation of
the Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Loan to or continue any Loan as a LIBOR Rate Loan shall be suspended, and the Borrower shall repay in full (or cause to be repaid in full) the then outstanding
principal amount of each such LIBOR Rate Loan together with accrued interest thereon, on the last day of the then current Interest Period applicable to such LIBOR Rate Loan or convert the then outstanding principal amount of each such LIBOR Rate
Loan to a Base Rate Loan as of the last day of such Interest Period. 
 (b) Laws Affecting LIBOR Rate Availability. If, after the
date hereof, the introduction of, or any change in, any Applicable Law or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it
unlawful or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any LIBOR Rate Loan, such Lender shall promptly give notice thereof to the Administrative Agent and the
Administrative Agent shall promptly give notice to the Original Borrower and the other Lenders. Thereafter, until the Administrative Agent notifies the Original Borrower that such circumstances no longer exist, (a) the obligations of the
Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Loan or continue any Loan as a LIBOR Rate Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans hereunder, and (b) if any of the Lenders
may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then current Interest Period applicable thereto as a LIBOR Rate Loan, the applicable LIBOR Rate Loan shall immediately be converted to a Base Rate Loan for the remainder of
such Interest Period. 
  
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 SECTION 4.9 Indemnity. The Borrower hereby indemnifies
each of the Lenders against any loss or expense which may arise or be attributable to each Lender's obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a consequence of any failure by
the Borrower to make any payment when due of any amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow, continue or convert on a date specified therefor in a Notice of Borrowing or Notice of
Conversion/Continuation or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest Period therefor. The amount of such loss or expense shall be determined, in the applicable
Lender's sole discretion, based upon the assumption that such Lender funded its Commitment Percentage of the LIBOR Rate Loans in the London interbank market and using any reasonable attribution or averaging methods which such Lender deems
appropriate and practical. A certificate of such Lender setting forth the basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded to the Original Borrower through the Administrative Agent and shall be
conclusively presumed to be correct save for manifest error. 
 SECTION 4.10 Increased Costs. 
 (a) Increased Costs Generally. If any Change in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate) or an Issuing Lender; 
 (ii) subject any Lender or any Issuing Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit,
any participation in a Letter of Credit or any LIBOR Rate Loan made by it, or change the basis of taxation of payments to such Lender or such Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 4.11 and the imposition of, or any change in the rate of any Excluded Taxes payable by such Lender or such Issuing Lender); or 
 (iii) impose on any Lender or any Issuing Lender or the London interbank market any other condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by such Lender or any Letter of Credit or
participation therein; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting into or maintaining any
LIBOR Rate Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or such Issuing Lender of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate
in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such Issuing Lender hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender or such
Issuing Lender, the Borrower shall promptly pay to any such Lender or such Issuing Lender, as the case may be, such additional amount or 
  
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 amounts as will compensate such Lender or such Issuing Lender, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If any Lender or any Issuing Lender determines that any Change in Law affecting such Lender or such Issuing Lender or
any lending office of such Lender or such Issuing Lender or such Lender's or such Issuing Lender's holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender's or such Issuing
Lender's capital or on the capital of such Lender's or such Issuing Lender's holding company, if any, as a consequence of this Agreement, the Commitment of such Lender or the Loans made by, or participations in Letters of Credit held by, such
Lender, or the Letters of Credit issued by such Issuing Lender, to a level below that which such Lender or such Issuing Lender or such Lender's or such Issuing Lender's holding company could have achieved but for such Change in Law (taking into
consideration such Lender's or such Issuing Lender's policies and the policies of such Lender's or such Issuing Lender's holding company with respect to capital adequacy), then from time to time upon written request of such Lender or such Issuing
Lender the Borrower shall promptly pay to such Lender or such Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Lender or such Lender's or such Issuing Lender's holding company for
any such reduction suffered. 
 (c) Certificates for Reimbursement. A certificate of a Lender or an Issuing Lender setting forth the
amount or amounts necessary to compensate such Lender or such Issuing Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Original Borrower shall be conclusive absent
manifest error. The Borrower shall pay such Lender or such Issuing Lender, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof. 
 (d) Delay in Requests. Failure or delay on the part of any Lender or any Issuing Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender's or such Issuing Lender's right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Lender pursuant to this Section for any increased costs
incurred or reductions suffered more than nine (9) months prior to the date that such Lender or such Issuing Lender, as the case may be, notifies the Original Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender's or such Issuing Lender's intention to claim compensation therefor (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to
include the period of retroactive effect thereof). 
 SECTION 4.11 Taxes. 
 (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document
shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required by Applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from
such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions 
  
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 applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing Lender, as the case may be, receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with Applicable Law.

 (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of paragraph (a) above, the Borrower shall
timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law. 
 (c) Indemnification by the
Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and each Issuing Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender or such Issuing Lender, as the case may be, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Original
Borrower by a Lender or an Issuing Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Lender, shall be conclusive absent manifest error. 
 (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental
Authority, the Original Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of Lenders. Any Foreign Lender that is entitled to
an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan
Document shall deliver to the Original Borrower (with a copy to the Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by the Original Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by Applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Original Borrower or the Administrative Agent, shall
deliver such other documentation prescribed by Applicable Law or reasonably requested by the Original Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. Without limiting the generality of the foregoing, in the event that the Borrower is a resident for tax purposes in the United States, any Foreign Lender shall deliver to the Original Borrower
and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the
Original Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable: 
  
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 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which
the United States is a party, 
 (ii) duly completed copies of Internal Revenue Service Form W-8ECI, 
 (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a "bank" within the meaning of section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of the Borrower within the meaning of section 881(c)(3)(B) of the
Code, or (C) a "controlled foreign corporation" described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or 
 (iv) any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made. 
 (f) Treatment of Certain Refunds. If the Administrative Agent, a Lender or an Issuing Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an amount equal to such refund
(but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent,
such Lender or such Issuing Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative
Agent, such Lender or such Issuing Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or such
Issuing Lender in the event the Administrative Agent, such Lender or such Issuing Lender is required to repay such refund to such Governmental Authority. This paragraph shall not be construed to require the Administrative Agent, any Lender or any
Issuing Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 
 (g) Survival. Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section shall survive the payment in full of the
Obligations and the termination of the Commitment. 
 SECTION 4.12 Mitigation Obligations; Replacement of Lenders. 
 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 4.10, or requires the Borrower to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.11, then such 
  
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 Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 4.10 or Section 4.11, as the case
may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment. 
 (b) Replacement of Lenders. If any Lender requests compensation
under Section 4.10, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.11, or if any Lender defaults in its obligation
to fund Loans hereunder, or if any Lender notifies the Administrative Agent and the Original Borrower pursuant to Section 10.13 that it may not legally do business with a Borrower or Subsidiary Borrower incorporated, organized or formed
in a Restricted Jurisdiction, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 13.10), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that: 
 (i) the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 13.10; 
 (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and participations in Letters of Credit, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 4.9) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); 
 (iii) in the case of any such assignment resulting from a claim for compensation under Section 4.10 or payments required to
be made pursuant to Section 4.11, such assignment will result in a reduction in such compensation or payments thereafter; 
 (iv) in the case of any assignment resulting from a claim that a Lender may not legally do business with a Borrower or a Subsidiary Borrower incorporated, organized or formed in a Restricted Jurisdiction, such new
Lender may legally do business with a Borrower or a Subsidiary Borrower incorporated, organized or formed in a Restricted Jurisdiction; and 
 (v) such assignment does not conflict with Applicable Law. 
  
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 A Lender shall not be required
to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
 SECTION 4.13 Security. The Obligations of the Borrower shall be secured as provided in the Security Documents. 
 SECTION 4.14 Additional Subsidiary Borrowers. The Original Borrower may designate any Domestic Subsidiary as a Subsidiary Borrower under this
Agreement and the other Loan Documents upon satisfaction of each of the following conditions. 
 (a) The Borrower shall have delivered to
the Administrative Agent a written notice requesting that such Domestic Subsidiary be designated as a new Subsidiary Borrower and indicating such Domestic Subsidiary's jurisdiction of incorporation, organization or formation. The Administrative
Agent agrees that promptly upon receipt of such notice it will forward such notice to the Lenders requesting their approval of such Domestic Subsidiary as a Subsidiary Borrower. If the Required Agreement Lenders approve such designation (which
approval shall occur no earlier than five (5) Business Days after the Lenders receive written notice of the request that such Domestic Subsidiary be designated as a new Subsidiary Borrower), the applicable Domestic Subsidiary shall be deemed a
"Borrower" under this Agreement and the other Loan Documents and all references herein (other than the references in Articles V, VI, VII, VIII, IX and X of this Agreement) to "Borrower" shall be deemed to
include the Subsidiary Borrower. 
 (b) The Administrative Agent shall have received a duly executed supplement to this Agreement and any
other applicable Loan Documents joining such Domestic Subsidiary as a Subsidiary Borrower hereunder (such supplement to be in form and substance reasonably satisfactory to the Administrative Agent). 
 (c) Such Domestic Subsidiary shall deliver to the Administrative Agent such documents and certificates referred to in Section 5.2 as may be
reasonably requested by the Administrative Agent (it being agreed by the Borrower that, if the designation of such Domestic Subsidiary as a Subsidiary Borrower obligates the Administrative Agent or any Lender to comply with "know your customer" or
similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall, promptly upon the request of the Administrative Agent or any Lender, supply such documentation and other evidence
as is reasonably requested by the Administrative Agent or any Lender in order for the Administrative Agent or such Lender to carry out, and be satisfied it has complied with the results of, all necessary "know your customer" or other similar checks
under all Applicable Laws). 
 (d)(i) If not previously granted to the Administrative Agent under the Security Documents, such Domestic
Subsidiary shall pledge a security interest in all Collateral owned by such Domestic Subsidiary by delivering to the Administrative Agent a duly executed supplement to each applicable Security Document or such other documents as the
Administrative Agent shall reasonably deem appropriate for such purpose. 
  
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 (ii) To the extent not previously delivered to the Administrative Agent under the Security Documents, the Borrower shall deliver to the Administrative Agent such original Capital Stock or other certificates and stock or other transfer powers
evidencing the Capital Stock of such Domestic Subsidiary and, to the extent required by the Security Documents, all Capital Stock or other certificates and stock or other transfer powers evidencing the Capital Stock owned by such Domestic
Subsidiary. 
 (e) The Borrower shall deliver to the Administrative Agent such updated Schedules to the Loan Documents as requested by the
Administrative Agent with respect to such Domestic Subsidiary. 
 (f) The Borrower shall deliver to the Administrative Agent such other
documents (including, without limitation, legal opinions) as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
 (g) The obligations of each Subsidiary Borrower hereunder and under the other Loan Documents shall be joint and several with the Obligations of the
Borrower and each other Subsidiary Borrower. 
 SECTION 4.15 Nature of Obligations; Bankruptcy Limitations; Agreement for
Contribution. 
 (a) Nature of Obligations. All of the Borrowers shall be jointly and severally liable for the Obligations,
however incurred. 
 (b) Bankruptcy Limitations. Notwithstanding anything to the contrary contained in this Agreement, it is the
intention of each Borrower, the Administrative Agent and the Lenders that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with
respect to any Borrower or its assets, the amount of such Borrower's obligations with respect to the Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Applicable
Insolvency Laws after giving effect to Section 4.15(c). To that end, but only in the event and to the extent that after giving effect to Section 4.15(c), such Borrower's obligations with respect to the Obligations or any
payment made pursuant to such Obligations would, but for the operation of the first sentence of this Section 4.15(b), be subject to avoidance or recovery in any such proceeding under Applicable Insolvency Laws after giving effect to
Section 4.15(c), the amount of such Borrower's obligations with respect to the Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render such Borrower's
obligations with respect to the Obligations unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws. To the extent any payment actually made pursuant to the Obligations exceeds the limitation of the first
sentence of this Section 4.15(b) and is otherwise subject to avoidance and recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be limited to the amount by which such
actual payment exceeds such limitation and the Obligations as limited by the first sentence of this Section 4.15(b) shall in all events remain in full force and effect and be fully enforceable against such Borrower. The 
  
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 first sentence of this Section 4.15(b) is intended solely to preserve the rights of the Administrative Agent and the
Lenders hereunder against such Borrower in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither such Borrower, any other Borrower, any Guarantor nor any other Person shall have any right or claim under such
sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding. 
 (c) Agreement for
Contribution. The Borrowers hereby agree among themselves that, if any Borrower shall make an Excess Payment (as defined below), such Borrower shall have a right of contribution from each other Borrower in an amount equal to such other
Borrower's Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Borrower under this Section 4.15(c) shall be subordinate and subject in right of payment to the Obligations until such time as the
Obligations have been paid in full, and none of the Borrowers shall exercise any right or remedy under this Section 4.15(c) against any other Borrower until such Obligations have been paid in full. For purposes of this Section
4.15(c): 
 (i) "Excess Payment" shall mean the amount paid by any Borrower in excess of its Ratable Share of
any Obligations; 
 (ii) "Ratable Share" shall mean, for any Borrower in respect of any payment of Obligations, the
ratio (expressed as a percentage) as of the date of such payment of Obligations of (A) the amount by which the aggregate present fair salable value of all of the assets and properties of such Borrower exceeds the amount of all debts and
liabilities of such Borrower (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Borrower hereunder) to (B) the amount by which the aggregate present fair salable value of
all assets and other properties of all of the Borrowers exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Borrowers
hereunder) of the Borrowers; provided, however, that, for purposes of calculating the Ratable Shares of the Borrowers in respect of any payment of Obligations, any Borrower that became a Borrower subsequent to the date of any such
payment shall be deemed to have been a Borrower on the date of such payment and the financial information for such Borrower as of the date such Borrower became a Borrower shall be utilized for such Borrower in connection with such payment; and

 (iii) "Contribution Share" shall mean, for any Borrower in respect of any Excess Payment made by any other
Borrower, the ratio (expressed as a percentage) as of the date of such Excess Payment of (A) the amount by which the aggregate present fair salable value of all of the assets and properties of such Borrower exceeds the amount of all debts and
liabilities of such Borrower (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Borrower hereunder) to (B) the amount by which the aggregate present fair salable value of
all assets and other properties of the Borrowers other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding
the obligations of the Borrowers) of the Borrowers other than the maker of such Excess 
  
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 Payment;
provided, however, that, for purposes of calculating the Contribution Shares of the Borrowers in respect of any Excess Payment, any Borrower that became a Borrower subsequent to the date of any such Excess Payment shall be deemed to
have been a Borrower on the date of such Excess Payment and the financial information for such Borrower as of the date such Borrower became a Borrower shall be utilized for such Borrower in connection with such Excess Payment. 
 Each of the Borrowers recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such
contribution. No Borrower shall have any right of subrogation, indemnity or reimbursement under Applicable Law in respect of any payment of Obligations (other than the contribution rights set forth in this Section 4.15(c)) against any
other Borrower. 
 (d) Appointment of Original Borrower as Agent. Each Borrower hereby irrevocably appoints and authorizes the
Original Borrower (i) to provide the Administrative Agent with all notices with respect to Extensions of Credit obtained for the benefit of such Borrower and all other notices and instructions under this Agreement, (ii) to take such action
on behalf of the Borrowers as the Original Borrower deems appropriate on its behalf to obtain Extensions of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement and (iii) to
act as its agent for service of process and notices required to be delivered under this Agreement or the other Loan Documents, it being understood and agreed that receipt by the Original Borrower of any summons, notice or other similar item shall be
deemed effective receipt by such Borrower and its Subsidiaries. 
 For purposes of this Section, the term "Borrowers" means the collective
reference to the Original Borrower, Newco and each Subsidiary Borrower and "Borrower" means the Original Borrower, Newco or one of the Subsidiary Borrowers, as applicable. 
 ARTICLE V 
 CLOSING; CONDITIONS OF CLOSING AND BORROWING 
 SECTION 5.1 Closing. The closing shall take place at the offices of Kennedy Covington Lobdell & Hickman, L.L.P. at 10:00 a.m. on
May 31, 2006 or at such other place, date and time as the parties hereto shall mutually agree. 
 SECTION 5.2 Conditions to Closing
and Initial Extensions of Credit. The obligation of the Lenders to close this Agreement and to make the initial Loan or issue or participate in the initial Letter of Credit, if any, is subject to the satisfaction of each of the following
conditions: 
 (a) Executed Loan Documents. This Agreement, a Revolving Credit Note in favor of each Lender (if requested thereby),
a Swingline Note in favor of the Swingline Lender (if requested thereby) and the Security Documents, together with any other applicable Loan Documents, shall have been duly authorized, executed and delivered to the Administrative Agent by the
parties thereto, shall be in full force and effect and no Default or Event of Default shall exist hereunder or thereunder. 
  
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 (b) Closing Certificates; Etc. The Administrative Agent shall have received each of the following in form and substance reasonably satisfactory
to the Administrative Agent: 
 (i) Officer's Certificate of the Original Borrower. A certificate from a Responsible
Officer of the Original Borrower to the effect that all representations and warranties of the Original Borrower and its Subsidiaries contained in this Agreement and the other Loan Documents are true, correct and complete in all material respects
(provided that any representation or warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true, correct and complete in all respects); that neither the Original Borrower nor any of its Subsidiaries is
in violation of any of the covenants contained in this Agreement and the other Loan Documents; that, after giving effect to the transactions contemplated by this Agreement, no Default or Event of Default has occurred and is continuing; and that each
of the Credit Parties, as applicable, has satisfied each of the conditions set forth in Section 5.2 and Section 5.3. 
 (ii) Certificate of Secretary of each Credit Party. A certificate of a Responsible Officer of each Credit Party certifying as to the incumbency and genuineness of the signature of each officer of such Credit
Party executing Loan Documents to which it is a party and certifying that attached thereto is a true, correct and complete copy of (A) the articles or certificate of incorporation or formation of such Credit Party and all amendments thereto,
certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of incorporation or formation, (B) the bylaws or other governing document of such Credit Party as in effect on the Closing Date, (C) resolutions
duly adopted by the board of directors or other governing body of such Credit Party authorizing the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a
party, and (D) each certificate required to be delivered pursuant to Section 5.2(b)(iii). 
 (iii)
Certificates of Good Standing. Certificates as of a recent date of the good standing of each Credit Party under the laws of its jurisdiction of organization and, to the extent requested by the Administrative Agent, each other jurisdiction
where such Credit Party is qualified to do business and, to the extent available, a certificate of the relevant taxing authorities of such jurisdictions certifying that such Credit Party has filed required tax returns and owes no delinquent taxes.

 (iv) Opinions of Counsel. Favorable opinions of counsel to the Credit Parties addressed to the Administrative
Agent and the Lenders with respect to the Credit Parties, the Loan Documents and such other matters as the Lenders shall request. 
 (v) Tax Forms. Copies of the United States Internal Revenue Service forms required by Section 4.11(e). 
 (c) Personal Property Collateral. 
 (i) Filings and Recordings. The
Administrative Agent shall have received all filings and recordations that are necessary to perfect the security interests of the Administrative Agent, on behalf of itself and the Lenders, in the Collateral shall have been received by the
Administrative Agent and the Administrative Agent shall have received evidence reasonably 
  
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 satisfactory
to the Administrative Agent that upon such filings and recordations such security interests constitute valid and perfected first priority Liens thereon. 
 (ii) Pledged Collateral. The Administrative Agent shall have received original stock certificates or other certificates
evidencing the Capital Stock pledged pursuant to the Security Documents, together with an undated stock power for each such certificate duly executed in blank by the registered owner thereof. 
 (iii) Lien Search. The Administrative Agent shall have received the results of a Lien search (including a search as to
judgments, pending litigation and tax matters), in form and substance reasonably satisfactory thereto, made against the Credit Parties under the Uniform Commercial Code (or applicable judicial docket) as in effect in any state in which any of the
assets of such Credit Party are located, indicating among other things that its assets are free and clear of any Lien except for Permitted Liens. 
 (iv) Hazard and Liability Insurance. The Administrative Agent shall have received certificates of property hazard, business interruption and liability insurance, evidence of payment of all insurance premiums for
the current policy year of each insurance policy (naming the Administrative Agent as additional insured on all certificates for liability insurance and loss payee (or mortgagee) with respect to the Collateral on all certificates for property
insurance), and, if requested by the Administrative Agent, copies (certified by a Responsible Officer) of insurance policies in the form required under the Security Documents and otherwise in form and substance reasonably satisfactory to the
Administrative Agent. 
 (d) Consents; Defaults. 
 (i) Governmental and Third Party Approvals. The Credit Parties shall have received all material governmental, shareholder and
third party consents and approvals necessary (or any other material consents as determined in the reasonable discretion of the Administrative Agent) in connection with the transactions contemplated by this Agreement and the other Loan Documents and
the other transactions contemplated hereby and all applicable waiting periods shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or impose any material adverse conditions on any of
the Credit Parties or such other transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent could reasonably be expected to have such
effect. 
 (ii) No Injunction, Etc. No action, proceeding, investigation, regulation or legislation shall have been
instituted, threatened or proposed before any Governmental Authority to enjoin, restrain, or prohibit, or to obtain substantial damages in respect of, or which is related to or arises out of this Agreement or the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby, or which, in the Administrative Agent's sole discretion, would make it inadvisable to consummate the transactions contemplated by this Agreement or the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby. 
 (e) Financial Matters. 
  
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 (i) Financial Statements. The Administrative Agent shall have received (A) the
audited Consolidated balance sheet of the Original Borrower and its Subsidiaries as of December 31, 2005 and the related audited statements of income and retained earnings and cash flows for the Fiscal Year then ended, (B) any interim
unaudited Consolidated balance sheet of the Original Borrower and its Subsidiaries and related unaudited interim statements of income, cash flows and retained earnings for each interim quarterly period (if any) ended at least forty-five
(45) days prior to the Closing Date and (C) if requested by the Administrative Agent (on behalf of itself or any Lender), any financial statements or projections of the Canadian Borrower and its Subsidiaries required to be delivered by the
Canadian Borrower to the Canadian Administrative Agent pursuant to Section 5.2 of the Canadian Credit Agreement. 
 (ii) Financial Projections. The Administrative Agent shall have received projections prepared by management of the Original Borrower, of balance sheets, income statements and cash flow statements on a quarterly basis for 2006 and on an
annual basis for each year thereafter during the term of the Credit Facility. 
 (iii) Financial Condition
Certificate. The Original Borrower shall have delivered to the Administrative Agent a certificate, in form and substance satisfactory to the Administrative Agent, and certified as accurate by a Responsible Officer of the Original Borrower, that
(A) the Original Borrower and each of its Subsidiaries are each Solvent, (B) the material payables of the Original Borrower and each of its Subsidiaries are current and not past due, (C) attached thereto are calculations, as
determined on a pro forma basis as of March 31, 2006 and after giving effect to the transactions contemplated hereby and any Extensions of Credit or Canadian Extensions of Credit to be made on the Closing Date, with the covenants
contained in Article IX; (D) the financial projections previously delivered to the Administrative Agent represent the good faith estimates (utilizing assumptions believed to be reasonable) of the financial condition and operations of the
Original Borrower and its Subsidiaries; (E) attached thereto is a calculation of the ratio of (1) Consolidated Total Indebtedness as of the Closing Date (after giving effect to any Extensions of Credit or Canadian Extensions of Credit on
the Closing Date) to (2) Consolidated EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating that such ratio is less than 5.80 to 1.00; (F) attached
thereto is a calculation of Consolidated Adjusted EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating to the reasonable satisfaction of the Administrative
Agent that Consolidated Adjusted EBITDA (as determined in such manner) is not less than $500,000,000; and (G) attached thereto is a calculation of the Borrowing Limit as of the Closing Date. 
 (iv) Payment at Closing; Fee Letters. The Original Borrower shall have paid to the Administrative Agent and the Lenders the fees
set forth or referenced in Section 4.3 and any other accrued and unpaid fees or commissions due hereunder (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and to any other Person
such amount as may be due thereto in connection with the transactions contemplated hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents.

 (f) Miscellaneous. 
  
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 (i) Notice of Borrowing. The Administrative Agent shall have received a Notice of Borrowing from the Original Borrower in
accordance with Section 2.3(a) with respect to any Loans (if any) to be made on the Closing Date, and a Notice of Account Designation specifying the account or accounts to which the proceeds of any Loans made on or after the Closing Date
are to be disbursed. 
 (ii) Existing Facilities. Each of the Existing Facilities shall be repaid in full and
terminated and all collateral security therefor shall be released, and the Administrative Agent shall have received pay-off letters in form and substance satisfactory to it evidencing such repayment, termination and release. 
 (iii) Closing of the Canadian Credit Facility. The Canadian Credit Facility shall simultaneously close on the Closing Date.

 (iv) Other Documents. All opinions, certificates and other instruments and all proceedings in connection with the
transactions contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent. The Administrative Agent shall have received copies of all other documents, certificates and instruments reasonably requested
thereby, with respect to the transactions contemplated by this Agreement. 
 SECTION 5.3 Conditions to All Extensions of Credit. The
obligations of the Lenders to make any Extensions of Credit (including any initial Extensions of Credit), convert or continue any Loan and/or any Issuing Lender to issue or extend any Letter of Credit are subject to the satisfaction of the following
conditions precedent on the relevant borrowing, continuation, conversion, issuance or extension date: 
 (a) Continuation of
Representations and Warranties. The representations and warranties contained in Article VI shall be true and correct in all material respects on and as of such borrowing, continuation, conversion, issuance or extension date with the same
effect as if made on and as of such date, except for any representation and warranty made as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date; provided that any representation or
warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true and correct in all respects on and as of such borrowing, continuation, conversion, issuance or extension date. 
 (b) No Existing Default. No Default or Event of Default shall have occurred and be continuing (i) on the borrowing, continuation or
conversion date with respect to such Loan or after giving effect to the Loans to be made, continued or converted on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after giving effect to the issuance
or extension of such Letter of Credit on such date. 
 (c) Notices. The Administrative Agent shall have received a Notice of
Borrowing or Notice of Conversion/Continuation, as applicable, from the Original Borrower in accordance with Section 2.3(a) or Section 4.2, as applicable. 
 SECTION 5.4 Post-Closing Conditions. 
  
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 (a) Prior to July 14, 2006, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative Agent shall have
received (a) a duly executed copy of each applicable Foreign Pledge Document with respect to a pledge of sixty-five percent (65%) of the total outstanding Capital Stock of Bowater-Korea Co., Ltd., including, without limitation, if
applicable, original stock certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of the Republic of Korea) evidencing the Capital Stock of Bowater-Korea Co., Ltd., together with an appropriate undated stock power for
each certificate duly executed in blank by the Original Borrower), (b) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the Administrative Agent in connection therewith (including, without
limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to Bowater-Korea Co., Ltd., the Loan Documents and such other matters as the Administrative Agent shall reasonably request), and
(c) such other documents and certificates as may be reasonably requested by the Administrative Agent (in consultation with the Original Borrower), all in form, content and scope reasonably satisfactory to the Administrative Agent.
Notwithstanding the foregoing, subject to Section 12.3, the Administrative Agent may waive any or all of the requirements contained in this Section 5.4 to the extent that, in the sole discretion of the Administrative Agent,
they are impracticable or pose a materially undue burden on the Original Borrower or Bowater-Korea Co., Ltd. 
 (b) Prior to June 30,
2006, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative Agent shall have received the following control agreements, in each case in form and substance satisfactory to the Administrative Agent:

 (i) A deposit account control agreement executed by the applicable Credit Party, the Administrative Agent and Bank of
America, N.A. with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at Bank of America, N.A.; 
 (ii) A deposit account control agreement executed by the applicable Credit Party, the Administrative Agent and JPMorgan Chase Bank,
N.A. with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at JPMorgan Chase Bank, N.A.; 
 (iii) A deposit account control agreement executed by the applicable Credit Party, the Administrative Agent and Wachovia Bank, National
Association with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at Wachovia Bank, National Association; 
 (iv) A securities account control agreement executed by the applicable Credit Party, the Administrative Agent and Bank of New York with
respect to all securities accounts of the Credit Parties at Bank of New York; and 
 (v) All other control agreements which
the Administrative Agent requires to be delivered pursuant to the Collateral Agreement, in each case in form and substance satisfactory to the Administrative Agent. 
  
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 (c) Prior to June 30, 2006, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative Agent shall have
received any warehouse or similar agreement, and any other ancillary documentation, required to be delivered thereto pursuant to Section 4.6(b) of the Collateral Agreement (or, if any such warehouse or similar agreement, and any other
ancillary documentation, has not been delivered by such date, the Original Borrower shall take all actions required by the Administrative Agent pursuant to Section 4.6(b) in connection therewith). 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES
OF THE BORROWER 
 SECTION 6.1 Representations and Warranties. To induce the Administrative Agent and Lenders to enter into this
Agreement and to induce the Lenders to make Extensions of Credit, the Borrower hereby represents and warrants to the Administrative Agent and Lenders both before and after giving effect to the transactions contemplated hereunder that: 
 (a) Organization; Power; Qualification. Each of the Borrower and its Subsidiaries is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or formation, has the power and authority to own its properties and to carry on its business as now being and hereafter proposed to be conducted and is duly qualified and authorized to do business in
each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization except in jurisdictions where the failure to be so qualified or in good standing could not reasonably be expected
to result in a Material Adverse Effect. 
 (b) Ownership. Each Subsidiary of the Borrower as of the Closing Date is listed on
Schedule 6.1(b) (which schedule shall be updated pursuant to, and in connection with, the consummation of the transactions contemplated by Sections 8.10(e)(i) and (ii)(A)) together with (i) its jurisdiction of formation and
each jurisdiction in which it is qualified to do business as of the Closing Date, (ii) each Person holding ownership interests in such Subsidiary, (iii) the nature of the ownership interest held by each such Person and the percentage of
ownership of such Subsidiary represented by such ownership interests and (iv) a designation of each Subsidiary that is inactive. All outstanding shares have been duly authorized and validly issued and are fully paid and nonassessable, with no
personal liability attaching to the ownership thereof, and not subject to any preemptive or similar rights, except as described in Schedule 6.1(b) (which schedule shall be updated pursuant to, and in connection with, the consummation of the
transactions contemplated by Sections 8.10(e)(i) and (ii)(A)). As of the Closing Date, there are no outstanding stock purchase warrants, subscriptions, options, securities, instruments or other rights of any type or nature whatsoever,
which are convertible into, exchangeable for or otherwise provide for or permit the issuance of Capital Stock of the Borrower or its Subsidiaries, except as described on Schedule 6.1(b) (which schedule shall be updated pursuant to, and in
connection with, the consummation of the transactions contemplated by Sections 8.10(e)(i) and (ii)(A)). 
 (c)
Authorization of Agreement, Loan Documents and Borrowing. Each of the Borrower and its Subsidiaries has the right, power and authority and has taken all necessary 
  
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 corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in
accordance with their respective terms. This Agreement and each of the other Loan Documents have been duly executed and delivered by the duly authorized officers of the Borrower and each of its Subsidiaries party thereto, and each such document
constitutes the legal, valid and binding obligation of the Borrower or its Subsidiary party thereto, enforceable in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium or similar state or federal laws from time to time in effect which affect the enforcement of creditors' rights in general and (ii) the application of general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). 
 (d) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The
execution, delivery and performance by the Borrower and its Subsidiaries of the Loan Documents to which each such Person is a party, in accordance with their respective terms, the Extensions of Credit hereunder and the transactions contemplated
hereby do not and will not, by the passage of time, the giving of notice or otherwise, (i) require any Governmental Approval or violate any Applicable Law relating to the Borrower or any of its Subsidiaries, (ii) conflict with, result in a
breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of the Borrower or any of its Subsidiaries, (iii) conflict with, result in a breach of or constitute a default under any indenture,
agreement or other instrument to which such Person is a party or by which any of its properties may be bound or any Governmental Approval relating to such Person, which could reasonably be expected to have a Material Adverse Effect, (iv) result
in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by such Person other than Liens arising under the Loan Documents or (v) require any consent or authorization of, filing
with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement other than consents,
authorizations, filings or other acts or consents for which the failure to obtain or make could not reasonably be expected to have a Material Adverse Effect and other than consents or filings under the UCC. 
 (e) Compliance with Law; Governmental Approvals. Each of the Borrower and its Subsidiaries (i) has all Governmental Approvals required by
any Applicable Law for it to conduct its business, each of which is in full force and effect, is final and not subject to review on appeal and is not the subject of any pending or, to the best of its knowledge, threatened attack by direct or
collateral proceeding, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, (ii) is in compliance with its articles of incorporation, bylaws or other organizational documents of the Borrower or
any of its Subsidiaries, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect, (iii) is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable
Laws relating to it or any of its respective properties, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect, and (iv) has timely filed all reports, documents and other materials required to be
filed by it under all Applicable Laws with any Governmental Authority and has retained all records and documents required to be retained by it under Applicable Law, except where the failure to do so, 
  
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 individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 (f) Tax Returns and Payments. Each of the Borrower and its Subsidiaries has duly filed or caused to be filed all federal and other material tax
returns required by Applicable Law to be filed, and has paid, or made adequate provision for the payment of, all federal and other material taxes, assessments and governmental charges or levies upon it and its property, income, profits and assets
which are due and payable. Such returns accurately reflect in all material respects all liability for taxes of the Borrower and its Subsidiaries for the periods covered thereby. There is no ongoing audit or examination or, to the knowledge of the
Borrower, other investigation by any Governmental Authority of the tax liability of the Borrower and its Subsidiaries, except, in each case, as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. No
Governmental Authority has asserted any Lien or other claim against the Borrower or any of its Subsidiaries with respect to unpaid taxes which has not been discharged or resolved other than Permitted Liens. The charges, accruals and reserves on the
books of the Borrower and any of its Subsidiaries in respect of federal and other material taxes for all Fiscal Years and portions thereof since the organization of the Borrower and any of its Subsidiaries are in the judgment of the Borrower
adequate, and the Borrower does not anticipate any material amount of additional taxes or assessments for any of such years. 
 (g)
Intellectual Property Matters. Each of the Borrower and its Subsidiaries owns or possesses rights to use all franchises, licenses, copyrights, copyright applications, patents, patent rights or licenses, patent applications, trademarks,
trademark rights, service mark, service mark rights, trade names, trade name rights, copyrights and other rights with respect to the foregoing which are reasonably necessary to conduct its business, except where the failure to own or possess such
rights, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. No event has occurred which permits, or after notice or lapse of time or both would permit, the revocation or termination of any such
rights, and neither the Borrower nor any of its Subsidiaries is liable to any Person for infringement under Applicable Law with respect to any such rights as a result of its business operations except as could not reasonably be expected to have a
Material Adverse Effect. 
 (h) Environmental Matters. 
 (i) The properties owned, leased or operated by the Borrower and its Subsidiaries now or in the past do not contain, and to their
knowledge have not previously contained, any Hazardous Materials in amounts or concentrations which (A) constitute or constituted a violation of applicable Environmental Laws or (B) could give rise to liability under applicable
Environmental Laws except where such violation or liability could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; 
 (ii) Except to the extent such matters could not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect, the Borrower, each of its Subsidiaries and such properties and all operations conducted in connection therewith are in compliance, and have been in compliance, with all applicable Environmental Laws, and there is no contamination at, under
or about such properties or such operations which could interfere with the continued operation of such properties; 
  
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 (iii) Neither the Borrower nor any of its Subsidiaries has received any written notice of violation, alleged violation, non-compliance,
liability or potential liability regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws, nor does the Borrower or any of its Subsidiaries have knowledge or reason to believe that any such notice will be received
or is being threatened, except where such violation, alleged violation, non-compliance, liability or potential liability which is the subject of such notice could not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect; 
 (iv) Hazardous Materials have not been transported or disposed of to or from the properties owned,
leased or operated by the Borrower and its Subsidiaries in violation of, or in a manner or to a location which could give rise to liability under, Environmental Laws, nor have any Hazardous Materials been generated, treated, stored or disposed of
at, on or under any of such properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws, except where such violation or liability could not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect; 
 (v) No judicial proceedings or governmental or administrative action is
pending, or, to the knowledge of the Borrower, threatened, under any Environmental Law to which the Borrower or any of its Subsidiaries is or will be named as a potentially responsible party with respect to such properties or operations conducted in
connection therewith, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Borrower,
any of its Subsidiaries or such properties or such operations that could reasonably be expected to have a Material Adverse Effect; and 
 (vi) There has been no release, or to the best of the Borrower's knowledge, threat of release, of Hazardous Materials at or from properties owned, leased or operated by the Borrower or any Subsidiary, now or in the
past, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws that could reasonably be expected to have a Material Adverse Effect. 
 (i) ERISA. 
 (i)
As of the Closing Date, neither the Borrower nor any of its Subsidiaries nor any ERISA Affiliate maintains or contributes to, or has any obligation under, any Employee Benefit Plans other than those identified on Schedule 6.1(i-1) and neither
the Borrower nor any of its Subsidiaries maintains or contributes to, or has any obligation under, any Canadian Employee Benefit Plans other than those identified on Schedule 6.1(i-2). 
 (ii) The Borrower, each of its Subsidiaries and each of their ERISA Affiliates is in material compliance with all applicable provisions
of ERISA and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans except for any required amendments for which the remedial amendment period as defined in Section 401(b) of the Code has not yet
expired and except where a failure to so comply could not reasonably be expected to have a Material Adverse Effect. The Borrower and each of its Subsidiaries is in material compliance with all applicable provisions of the ITA and other Applicable
Law and the regulations and published interpretations thereunder with respect to all Canadian Employee 
  
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 Benefit Plans except where a failure to so comply could not reasonably be expected to have a Material Adverse Effect. Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code has been determined by the
Internal Revenue Service to be so qualified, and each trust related to such plan has been determined to be exempt under Section 501(a) of the Code except for such plans that have not yet received determination letters but for which the remedial
amendment period for submitting a determination letter has not yet expired. No liability has been incurred by the Borrower, any of its Subsidiaries or any of their ERISA Affiliates which remains unsatisfied for any taxes or penalties with respect to
any Employee Benefit Plan or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material Adverse Effect. No liability has been incurred by the Borrower or any of its Subsidiaries which remains unsatisfied
for any taxes or penalties with respect to any Canadian Employee Benefit Plan or any Canadian Multiemployer Plan, except for a liability that could not reasonably be expected to have a Material Adverse Effect. 
 (iii) Except as set forth on Schedule 6.1(i-1) or Schedule 6.1(i-2), as of the Closing Date, no Pension Plan or Canadian
Pension Plan has been terminated, nor has any accumulated funding deficiency (as defined in Section 412 of the Code or any other Applicable Law) been incurred (without regard to any waiver granted under Section 412 of the Code or any other
Applicable Law), nor has any funding waiver from the Internal Revenue Service been received or requested with respect to any Pension Plan, nor has the Borrower, any of Subsidiaries or any of their ERISA Affiliates failed to make any contributions or
to pay any amounts due and owing as required by Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan prior to the due dates of such contributions under Section 412 of the Code or Section 302 of ERISA,
nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan. 
 (iv) Except where the failure of any of the following representations to be correct in all material respects could not reasonably be expected to have a Material Adverse Effect, neither the Borrower nor any of its
Subsidiaries nor any of their ERISA Affiliates has: (A) engaged in a nonexempt prohibited transaction described in Section 406 of the ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC which remains
outstanding other than the payment of premiums and there are no premium payments which are due and unpaid, (C) failed to make a required contribution or payment to a Multiemployer Plan or a Canadian Multiemployer Plan, (D) failed to make a
required installment or other required payment under Section 412 of the Code, other Applicable Laws or its Employee Benefit Plans or (E) failed to make a required installment or other required payment under Applicable Laws or its Canadian
Employee Benefit Plans. 
 (v) No Termination Event has occurred or is reasonably expected to occur. 
 (vi) Except where the failure of any of the following representations to be correct in all material respects could not reasonably be
expected to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or investigation is existing or, to the best knowledge of the Borrower after due inquiry, threatened
concerning or involving any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by the Borrower, any of its 
 
 
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 Subsidiaries or any of their ERISA Affiliates, (B) Pension Plan or Canadian Pension Plan or (C) Multiemployer Plan or Canadian Multiemployer
Plan. 
 (j) Margin Stock. Neither the Borrower nor any of its Subsidiaries is engaged principally or as one of its activities in
the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" (as each such term is defined or used, directly or indirectly, in Regulation U of the Board of Governors of the Federal Reserve System). No part of the
proceeds of any of the Loans or Letters of Credit will be used for purchasing or carrying margin stock or for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X of such Board of Governors.

 (k) Government Regulation. Neither the Borrower nor any of its Subsidiaries is an "investment company" or a company "controlled"
by an "investment company" (as each such term is defined or used in the Investment Company Act of 1940, as amended) and neither the Borrower nor any of its Subsidiaries is, or after giving effect to any Extension of Credit or Canadian Extension of
Credit will be, subject to regulation under the Interstate Commerce Act, as amended, or any other Applicable Law which limits its ability to incur or consummate the transactions contemplated hereby. 
 (l) Significant Indebtedness. Schedule 6.1(l) sets forth a complete and accurate list of all Significant Indebtedness of the Borrower and
its Subsidiaries in effect as of the Closing Date. As of the Closing Date, other than as set forth in Schedule 6.1(l), each indenture, agreement or other instrument governing such Significant Indebtedness is, and after giving effect to the
consummation of the transactions contemplated by the Loan Documents will be, in full force and effect in accordance with the terms thereof. To the extent requested by the Administrative Agent, the Borrower and its Subsidiaries have delivered to the
Administrative Agent a true and complete copy of each indenture, agreement or other instrument governing the Significant Indebtedness required to be listed on Schedule 6.1(l). As of the Closing Date, neither the Borrower nor any Subsidiary
(nor, to the knowledge of the Borrower, any other party thereto) is in breach of or in default under any Significant Indebtedness in any material respect. 
 (m) Employee Relations. Each of the Borrower and its Subsidiaries has a stable work force in place, except as could not reasonably be expected to have a Material Adverse Effect. The Borrower knows of no pending,
threatened or contemplated strikes, work stoppage or other collective labor disputes involving its employees or those of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 (n) Burdensome Provisions. Except as described on Schedule 6.1(n), no Subsidiary is party to any agreement or instrument or otherwise
subject to any restriction or encumbrance that restricts or limits its ability to make dividend payments or other distributions in respect of its Capital Stock to the Borrower or any Subsidiary or to transfer any of its assets or properties to the
Borrower or any other Subsidiary in each case other than restrictions or encumbrances existing under or by reason of (i) the Loan Documents, (ii) Applicable Law and (iii) legally enforceable provisions which are contained in either
(A) the organizational documents of any Subsidiary that a not Wholly-Owned Subsidiary or (B) any other agreements with the other owner(s) of such Subsidiary (which, in the case of such provisions existing on the Closing Date, are described
on Schedule 6.1(n)). 
  
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 (o) Financial Statements. The audited and unaudited
financial statements delivered pursuant to Section 5.2(e)(i) are complete and correct and fairly present in all material respects on a Consolidated basis the assets, liabilities and financial position of the Borrower and its Subsidiaries
as at the respective dates of such statements, and the results of the operations and changes of financial position for the periods then ended (other than customary year-end adjustments for interim financial statements). All such financial
statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP. Such financial statements show all material indebtedness and other material liabilities, direct or contingent, of the Borrower and its
Subsidiaries as of the date thereof, including material liabilities for taxes, material commitments, and Indebtedness, in each case, to the extent required to be disclosed under GAAP. The projected financial statements delivered pursuant to
Section 5.2(e)(ii) were prepared in good faith on the basis of the assumptions stated therein, which assumptions are believed to be reasonable in light of then existing conditions. 
 (p) No Material Adverse Change. Since December 31, 2005, there has been no material adverse change in the business, assets, liabilities
(actual or contingent), operations, or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole and no event has occurred or condition arisen that could reasonably be expected to have a Material Adverse Effect.

 (q) Solvency. As of the Closing Date and after giving effect to each Extension of Credit made hereunder and each Canadian
Extension of Credit, each of the Credit Parties will be Solvent. 
 (r) Titles to Properties. Each of the Borrower and its
Subsidiaries has such title to the real property owned or leased by it as is reasonably necessary to the conduct of its business and valid and legal title to all of its personal property and assets, including, but not limited to, those reflected on
the balance sheets of the Borrower and its Subsidiaries delivered pursuant to Sections 5.2(e)(i), 7.1(a) and (b), except those which have been disposed of by the Borrower or its Subsidiaries subsequent to such date which
dispositions have been in the ordinary course of business or as otherwise expressly permitted hereunder. 
 (s) Liens. None of the
properties and assets of the Borrower or any of its Subsidiaries is subject to any Lien, except Permitted Liens. Neither the Borrower nor any of its Subsidiaries has signed any financing statement or any security agreement authorizing any secured
party thereunder to file any financing statement, except to perfect those Permitted Liens. 
 (t) Litigation. Except for matters
existing on the Closing Date and set forth on Schedule 6.1(t), there are no actions, suits or proceedings pending nor, to the knowledge of the Borrower, threatened against or in any other way relating adversely to or affecting the Borrower or
any of its Subsidiaries or any of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that has or could reasonably be expected to have a Material Adverse Effect. 
 (u) Senior Indebtedness Status. The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall
continue to rank at least senior in priority of payment to all Subordinated Indebtedness of each such Person and is designated as 
  
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 "Senior Indebtedness" under all instruments and documents, now or in the future, relating to all Subordinated Indebtedness of such Person. 
 (v) OFAC. None of the Borrower, any Subsidiary of the Borrower or any Affiliate of the Borrower or any Guarantor: (i) is a Sanctioned
Person, (ii) has more than ten percent (10%) of its assets in Sanctioned Entities, or (iii) derives more than ten percent (10%) of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned
Entities. The proceeds of any Loan will not be used and have not been used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. Solely for purposes of this
subsection (v), "Subsidiary" shall include (A) each Abitibi Entity and (B) each QSPE. 
 (w) Disclosure. The Borrower
and/or its Subsidiaries have disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which the Borrower or any of its Subsidiaries are subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. The financial statements, material reports, material certificates or other material information furnished (whether in writing or orally), taken
together as a whole, by or on behalf of any of the Borrower or any of its Subsidiaries to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) do not contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that, with respect to projected financial information, pro forma financial information, estimated financial information and other projected or estimated information, such information was prepared in good faith
based upon assumptions believed to be reasonable at the time. 
 SECTION 6.2 Survival of Representations and Warranties, Etc. All
representations and warranties set forth in this Article VI and all representations and warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in
connection with any amendment thereto) shall constitute representations and warranties made under this Agreement. All representations and warranties made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except
those that are expressly made as of a specific date), shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder.

 ARTICLE VII 
 FINANCIAL
INFORMATION AND NOTICES 
 Until all the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent
has been obtained in the manner set forth in Section 13.2, the Borrower will furnish or cause to be furnished to the Administrative Agent (for distribution to the Lenders) at the Administrative Agent's Office at the address set forth in
Section 13.1 or such other office as may be designated by the Administrative Agent from time to time: 
  
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 SECTION 7.1 Financial Statements and Projections. 
 (a) Quarterly Financial Statements. As soon as practicable and in any event within forty-five (45) days (or, if earlier, on the date of any required public filing thereof) after the end of each of the first
three (3) fiscal quarters of each Fiscal Year, an unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such fiscal quarter and unaudited Consolidated statements of income, retained earnings and cash flows
and a report containing management's discussion and analysis of such financial statements for the fiscal quarter then ended and that portion of the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in
comparative form the corresponding figures as of the end of and for the corresponding period in the preceding Fiscal Year and prepared by the Borrower in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial
position or results of operations of any change in the application of accounting principles and practices during the period, and certified by the chief financial officer of the Borrower to present fairly in all material respects the financial
condition of the Borrower and its Subsidiaries on a Consolidated basis as of their respective dates and the results of operations of the Borrower and its Subsidiaries for the respective periods then ended, subject to normal year end adjustments.

 (b) Annual Financial Statements. As soon as practicable and in any event within ninety (90) days (or, if earlier, on the
date of any required public filing thereof) after the end of each Fiscal Year, an audited Consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such Fiscal Year and audited Consolidated statements of income, retained
earnings and cash flows and a report containing management's discussion and analysis of such financial statements for the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the
corresponding figures as of the end of and for the preceding Fiscal Year and prepared in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application
of accounting principles and practices during the year. Such annual financial statements shall be audited by an independent certified public accounting firm acceptable to the Administrative Agent and the Canadian Administrative Agent, and
accompanied by a report thereon by such certified public accountants that is not qualified with respect to scope limitations imposed by the Borrower or any of its Subsidiaries or with respect to accounting principles followed by the Borrower or any
of its Subsidiaries not in accordance with GAAP. 
 (c) Annual Business Plan and Financial Projections. As soon as practicable and
in any event within ninety (90) days after the beginning of each Fiscal Year, a business plan of the Borrower and its Subsidiaries for such Fiscal Year, such plan to be prepared in accordance with GAAP and to include, on a quarterly basis, the
following: a projected income statement, statement of cash flows and balance sheet and a statement containing the volume and price assumptions by product line used in preparing the business plan, accompanied by a certificate from a Responsible
Officer of the Borrower to the effect that, to the best of such officer's knowledge, such projections are good faith estimates (utilizing assumptions believed to be reasonable) of the financial condition and operations of the Borrower and its
Subsidiaries for such Fiscal Year. 
 (d) Financial Statements of the Canadian Borrower and its Subsidiaries. If requested by the
Administrative Agent (on behalf of itself or any Lender), any financial statements of the 
  
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 Canadian Borrower and its
Subsidiaries required to be delivered by the Canadian Borrower to the Canadian Administrative Agent pursuant to Section 7.1 of the Canadian Credit Agreement. 
 (e) Monthly Borrowing Limit Calculation. Within fifteen (15) Business Days after the last day of each calendar month beginning after the
Third Amendment Effective Date, a report in form and substance reasonably satisfactory to the Administrative Agent showing a calculation of the Asset Coverage Amount and the Borrowing Limit as of the last day of the preceding calendar month.

 (f) Parent Cash Balance Reporting. On Monday of each week beginning after the first week that the Parent establishes its initial
deposit, securities or investment account, the Parent will deliver a written daily cash balance summary to the Administrative Agent and the Canadian Administrative Agent showing the aggregate available cash balance in the deposit, securities and
other investment accounts of the Parent as of the end of business on each Business Day of the preceding week. 
 SECTION 7.2 Officer's
Compliance Certificate. At each time financial statements are delivered pursuant to Sections 7.1(a) or (b) and at such other times as the Administrative Agent shall reasonably request, an Officer's Compliance Certificate.

 SECTION 7.3 Accountants' Certificate. At each time financial statements are delivered pursuant to Section 7.1(b), a
certificate of the independent public accountants certifying such financial statements that in connection with their audit, nothing came to their attention that caused them to believe that the Borrower failed to comply with the terms, covenants,
provisions or conditions of Articles IX, or, if such is not the case, specifying such non-compliance and its nature and period of existence. 
 SECTION 7.4 Other Reports. 
 (a) Promptly upon their becoming available, copies of all registration
statements (other than on Form S-8) and regular periodic reports on Forms 10-K, 10-Q and 8-K that the Parent, the Borrower or any of its Subsidiaries shall have filed with the SEC, or any similar periodic reports filed with any comparable agency in
Canada (it being agreed that each such report or statement shall be deemed delivered on the date that (i) such report or statement is posted on the website of the SEC at www.sec.gov, on SEDAR at www.sedar.com or on the website of
the Original Borrower at www.Bowater.com and (ii) the Original Borrower has provided the Administrative Agent with written notice of such posting). 
 (b) Promptly upon the mailing thereof to the shareholders of the Parent or the Borrower generally, copies of all financial statements, reports and proxy statements so mailed (it being agreed that such mailing shall be
deemed delivered on the date that (i) such information is posted on the website of the SEC at www.sec.gov, on SEDAR at www.sedar.com or on the website of the Borrower at www.Bowater.com and (ii) the Original Borrower
has provided the Administrative Agent with written notice of such posting). 
 (c) Such other information regarding the operations,
business affairs and financial condition of the Borrower or any of its Subsidiaries as the Administrative Agent (for itself or on behalf of any Lender) may reasonably request. 
 
 
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 SECTION 7.5 Notice of Litigation and Other Matters. Prompt (but in no event later than ten (10) days after any Credit Party obtains
knowledge thereof) telephonic and written notice of: 
 (a) the commencement of all proceedings and investigations by or before any
Governmental Authority and all actions and proceedings in any court or before any arbitrator against or involving the Borrower or any of its Subsidiaries or any of their respective properties, assets or businesses that if adversely determined could
reasonably be expected to have a Material Adverse Effect; 
 (b) any notice of any violation received by the Borrower or any of its
Subsidiaries from any Governmental Authority including, without limitation, any notice of violation of Environmental Laws which in any such case could reasonably be expected to have a Material Adverse Effect; 
 (c) any labor controversy that has resulted in, or threatens to result in, a strike or other work action against the Borrower or any of its
Subsidiaries which in any such case could reasonably be expected to have a Material Adverse Effect; 
 (d) any attachment, judgment, lien,
levy or order exceeding $10,000,000 that is assessed against the Borrower or any of its Subsidiaries; 
 (e)(i) any Default or Event of
Default or (ii) any event which constitutes or which with the passage of time or giving of notice or both would constitute a default or event of default under any Significant Indebtedness to which the Borrower or any of its Subsidiaries is a
party or by which the Borrower or any of its Subsidiaries or any of their respective properties may be bound which could reasonably be expected to have a Material Adverse Effect; 
 (f)(i) any unfavorable determination letter from the Internal Revenue Service regarding the qualification of an Employee Benefit Plan under
Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by the Borrower or any of its Subsidiaries or any of their ERISA Affiliates of the PBGC's or any other Governmental Authority's intent to terminate any
Pension Plan or Canadian Pension Plan or to have a trustee appointed to administer any Pension Plan or Canadian Pension Plan, (iii) all notices received by the Borrower or any of its Subsidiaries or any of their ERISA Affiliates from a
Multiemployer Plan or Canadian Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability pursuant to Section 4202 of ERISA or any other Applicable Law and (iv) the Borrower obtaining knowledge or reason to know
that the Borrower or any of its Subsidiaries or any of their ERISA Affiliates has filed or intends to file a notice of intent to terminate any Pension Plan or Canadian Pension Plan under a distress termination within the meaning of
Section 4041(c) of ERISA or otherwise; 
 (g) any event which makes any of the representations set forth in Section 6.1
that is subject to materiality or Material Adverse Effect qualifications inaccurate in any respect or any event which makes any of the representations set forth in Section 6.1 that is not subject to materiality or Material Adverse Effect
qualifications inaccurate in any material respect; 
  
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 (h) any notice delivered to the Borrower or the
Canadian Borrower, or sent by or on behalf of the Borrower or the Canadian Borrower, with respect to the Canadian Credit Agreement or any of the loan documents executed in connection therewith (including a copy of any such notice); and 

(i) any notice delivered to a Credit Party, or sent by or on behalf of a Credit Party, with respect to any Indebtedness incurred pursuant to
Section 10.1(m) or any loan document executed in connection therewith (including a copy of any such notice). 
 SECTION 7.6
Accuracy of Information. All written information, reports, statements and other papers and data furnished by or on behalf of the Parent or the Borrower to the Administrative Agent or any Lender whether pursuant to this Article VII or
any other provision of this Agreement, or any of the Security Documents, shall, at the time the same is so furnished, comply with the representations and warranties set forth in Section 6.1(w). 
 ARTICLE VIII 
 AFFIRMATIVE
COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been
obtained in the manner provided for in Section 13.2, the Borrower will, and will cause each of its Subsidiaries to: 
 SECTION
8.1 Preservation of Corporate Existence and Related Matters. Except as permitted by Section 10.4, preserve and maintain its legal existence and all material rights, franchises, licenses and privileges and qualify and remain
qualified as a foreign corporation and authorized to do business in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect. 
 SECTION 8.2 Maintenance of Property; Reinvestment. 
 (a) Protect and preserve all properties used or useful in its business, including copyrights, patents, trade names, service marks and trademarks; maintain in good working order and condition, ordinary wear and tear
excepted, all buildings, equipment and other tangible real and personal property; and from time to time make or cause to be made all repairs, renewals and replacements thereof and additions to such property necessary for the conduct of its business;
in each case, to the extent necessary so that the business carried on in connection therewith may be conducted in a commercially reasonable manner, it being understood and agreed that nothing in this paragraph shall prohibit the idling or
abandonment of any property in the reasonable business judgment of the Borrower and its Subsidiaries. 
 (b)(i) If the Borrower or any of
its Subsidiaries receives Net Cash Proceeds in excess of $10,000,000 from any Asset Disposition permitted under this Agreement (other than (A) any Asset Disposition permitted pursuant to clauses (a), (b), (c), (d), (e), (f), (h) or
(i) of Section 10.5 or (B) any Asset Disposition described in clause (ii) and clause (iii) below) or consented to by the requisite Lenders pursuant to Section 13.2, or from any Insurance and Condemnation
Event, and the Aggregate Credit Exposure is in excess of 
  
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 $100,000,000 at the end of the fiscal quarter following the time
such proceeds are received, the Borrower shall no later than twelve (12) months following such quarter end, apply such portion of such Net Cash Proceeds to repayment of the outstanding amounts under this Credit Facility or the Canadian Credit
Facility as shall reduce the Aggregate Credit Exposure to an amount less than $100,000,000; provided that no such repayment shall be required to the extent that such portion of the Net Cash Proceeds is within such twelve (12) month
period either (A) reinvested in the business (including Capital Expenditures, Permitted Acquisitions, purchases of assets in the ordinary course of business and other business expenditures permitted hereunder) or (B) subject to compliance
with Section 10.10, applied to repayment of the Existing Notes. 
 (ii) No later than five (5) Business
Days following the date of receipt by the Borrower or any of its Subsidiaries of any Net Cash Proceeds from any Asset Disposition permitted pursuant to Section 10.5(j) or from any Insurance and Condemnation Event with respect to the
Newco Fixed Assets, the Borrower shall, subject to the terms of the Intercreditor Agreements and the terms of, and in the allocations and manner specified in, the Catawba Mortgage, apply such Net Cash Proceeds (A) to permanently reduce the
Commitment under this Agreement and the "Commitment" (under and as defined in the Canadian Credit Agreement) and (B) to permanently repay Extensions of Credit under this Agreement and Canadian Extensions of Credit under the Canadian Credit
Agreement; provided that: 
 (1) no such reduction or repayment shall be required if such Net Cash Proceeds received
by the Borrower or any of its Subsidiaries are in an aggregate amount of $200,000,000 or less during the term of this Agreement; and 
 (2) no such reduction or repayment shall be required from the Net Cash Proceeds received by the Borrower or any of its Subsidiaries with respect to any Asset Disposition of any Catawba Mill Equipment, or any Insurance
and Condemnation Event with respect to any Catawba Mill Equipment, so long as such Net Cash Proceeds are committed to be reinvested in replacement Catawba Mill Equipment within three (3) months after receipt of such Net Cash Proceeds and are
thereafter actually reinvested in such assets within twelve (12) months after receipt of such Net Cash Proceeds; provided, that any portion of the Net Cash Proceeds not committed to be reinvested within such three (3) month period
or actually reinvested within such twelve (12) month period shall be applied in accordance with clauses (A) and (B) of this clause (ii); provided further, that the aggregate amount of the Net Cash Proceeds to be reinvested
shall either (x) be deposited in a Deposit Account (as such term is defined in the Collateral Agreement) subject to control (as such term is defined in the Collateral Agreement) of the Administrative Agent, for the benefit of the Secured
Parties and the Canadian Secured Parties, until so reinvested or (y) with respect to any amounts to be reinvested that are not deposited in a Deposit Account per clause (x) above, be used to repay Extensions of Credit (provided that
the Borrowing Limit shall be temporarily reduced by an amount equal to the principal amount of all such repayments made pursuant to this clause (y) until such time as such 
 
 
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 reinvestment actually occurs and the Borrower delivers written notice thereof to the Administrative Agent and the Canadian Administrative Agent).

 (iii) No later than five (5) Business Days following the date of receipt by the Borrower or any of its Subsidiaries
of any Net Cash Proceeds from any Asset Disposition of timberlands permitted pursuant to Section 10.5(g) or consented to by the requisite Lenders pursuant to Section 13.2, the Borrower shall apply such Net Cash Proceeds to
repayment of the outstanding amounts under this Credit Facility or the Canadian Credit Facility in an aggregate amount equal to the lesser of (A) fifty percent (50%) of the aggregate amount of such Net Cash Proceeds or (B) the amount
which when used to repay the outstanding amounts under this Credit Facility or the Canadian Credit Facility will reduce the Aggregate Credit Exposure to an amount less than $100,000,000. 
 SECTION 8.3 Insurance. Maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as are
customarily maintained by similar businesses and as may be required by Applicable Law and as are required by any Security Documents (including, without limitation, hazard and business interruption insurance), and on the Closing Date and from time to
time thereafter deliver to the Administrative Agent upon its reasonable request information in reasonable detail as to the insurance then in effect, stating the names of the insurance companies, the amounts of the insurance, the dates of the
expiration thereof and the properties and risks covered thereby. 
 SECTION 8.4 Accounting Methods and Financial Records. Maintain a
system of accounting, and keep proper books, records and accounts (which shall be true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance with GAAP and in
compliance with the regulations of any Governmental Authority having jurisdiction over it or any of its properties. 
 SECTION 8.5
Payment of Taxes. Pay and discharge all taxes, assessments and other governmental charges that may be levied or assessed upon it or on its income or profits or any of its property; except for any such tax, assessment or other governmental
charge the payment of which is being contested in good faith so long as adequate reserves are maintained with respect thereto in accordance with GAAP. 
 SECTION 8.6 Compliance With Laws and Approvals. Observe and remain in compliance with all Applicable Laws and maintain in full force and effect all Governmental Approvals, in each case applicable to the conduct
of its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
 SECTION 8.7
Environmental Laws. In addition to and without limiting the generality of Section 8.6, (a) comply with, and ensure such compliance by all tenants and subtenants with all applicable Environmental Laws and obtain and comply
with and maintain, and ensure that all tenants and subtenants, if any, obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws, except where the failure
to do so could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (b) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required

  
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 under Environmental Laws, and promptly comply with all lawful orders and directives of any Governmental Authority
regarding Environmental Laws, except where the failure to conduct or complete such actions, or comply with such orders or directions, could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and
(c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and their respective parents, Subsidiaries, Affiliates, employees, agents, officers and directors, from and against any claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the presence of Hazardous Materials, or the violation of, noncompliance with or
liability under any Environmental Laws applicable to the operations of the Borrower or any of its Subsidiaries, or any orders, requirements or demands of Governmental Authorities related thereto, including, without limitation, reasonable attorney's
and consultant's fees, investigation and laboratory fees, response costs, court costs and litigation expenses, except to the extent that any of the foregoing directly result from the gross negligence or willful misconduct of the party seeking
indemnification therefor, as determined by a court of competent jurisdiction by final nonappealable judgment. 
 SECTION 8.8 Compliance
with ERISA. In addition to and without limiting the generality of Section 8.6, (a) except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect,
(i) comply with all material applicable provisions of ERISA with respect to Employee Benefit Plans and the ITA and other Applicable Law with respect to all Canadian Employee Benefit Plans, (ii) not take any action or fail to take action
the result of which could be a liability to the PBGC or any other Governmental Authority or to a Multiemployer Plan or a Canadian Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any civil penalty
under ERISA or tax under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in
Section 4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent's request such additional information about any Employee Benefit Plan or Canadian Employee Benefit Plan as may be reasonably requested by
the Administrative Agent. 
 SECTION 8.9 Visits and Inspections. Permit representatives of the Administrative Agent or any Lender,
from time to time upon prior reasonable notice and during normal business hours, at the Borrower's expense, to visit and inspect its properties; inspect, audit and make extracts from its books, records and files, including, but not limited to,
management letters prepared by independent accountants; and discuss with its principal officers, and its independent accountants, its business, assets, liabilities, financial condition, results of operations and business prospects. Upon the
occurrence and during the continuance of an Event of Default, the Administrative Agent or any Lender may do any of the foregoing at any time without advance notice. 
 SECTION 8.10 Additional Subsidiaries. 
 (a) Within thirty (30) days after (i) the
redesignation of an Immaterial Subsidiary as a Material Subsidiary in accordance with Section 8.10(b) below or (ii) the creation or acquisition of any Material Subsidiary, including in connection with any Permitted Acquisition (any
such Subsidiary, a "New Material Subsidiary"), cause to be executed and delivered to the 
  
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 Administrative Agent (unless otherwise agreed to by the Administrative Agent): (A) a duly executed joinder agreement in form and substance reasonably satisfactory to the Administrative Agent joining such New Material Subsidiary to the
Subsidiary Guaranty Agreement, the Collateral Agreement and any other applicable Security Documents, (B) such updated Schedules to the Loan Documents as requested by the Administrative Agent with regard to such Person (including, without
limitation, updated Schedule 6.1(b) reflecting the creation or acquisition of such New Material Subsidiary), (C) such original stock or other certificates and stock or other transfer powers evidencing the ownership interests of the
Borrower or the applicable Material Subsidiary, as applicable, in such New Material Subsidiary (unless such New Material Subsidiary is a Restricted Subsidiary), (D) such documents and certificates referred to in Section 5.2 as may
be reasonably requested by the Administrative Agent (including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to the New Material Subsidiary, the Loan Documents and such
other matters as the Lenders shall request), and (E) such other documents and certificates as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent.

 (b) The Borrower may, at any time and upon written notice to the Administrative Agent, redesignate any Immaterial Subsidiary as a
Material Subsidiary. Further, promptly after the date on which the Borrower or the Administrative Agent determines that any Subsidiary no longer qualifies as an Immaterial Subsidiary such Subsidiary shall be redesignated as a Material Subsidiary and
shall comply with clause (a) of this Section. 
 (c) Notify the Administrative Agent at the time that any Person becomes a first tier
Foreign Subsidiary of the Borrower or any Material Subsidiary, and promptly thereafter (and in any event within forty-five (45) days after notification), cause to be executed and delivered to the Administrative Agent (unless otherwise agreed to
by the Administrative Agent): (i) Foreign Pledge Documents pledging sixty-five percent (65%) of the total outstanding Capital Stock of such new Foreign Subsidiary and a consent thereto executed by such new Foreign Subsidiary (including,
without limitation, if applicable, original stock certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of any relevant foreign jurisdiction) evidencing the Capital Stock of such new Foreign Subsidiary, together with
an appropriate undated stock power for each certificate duly executed in blank by the registered owner thereof), (ii) such updated Schedules to the Loan Documents as requested by the Administrative Agent with regard to such Person (including,
without limitation, updated Schedule 6.1(b) reflecting the creation or acquisition of such Person), (iii) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the Administrative Agent
(including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to such Person, the Loan Documents and such other matters as the Lenders shall request), and (iv) such other
documents and certificates as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
 (d) Within thirty (30) days after the creation or acquisition of any new Subsidiary, including in connection with any Permitted Acquisition, cause
to be executed and delivered to the Administrative Agent (unless otherwise agreed to by the Administrative Agent) a duly 
  
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 executed joinder agreement in the form attached to the Intercompany Subordination Agreement joining such new Subsidiary thereto. 
 (e)(i) Parent Loan Documentation. On or prior to the date that Newco is joined pursuant to Section 8.10(e)(ii) below, but in any
event no later than March 31, 2008 (as such date may be extended by the Administrative Agent and the Canadian Administrative Agent, each in its sole discretion), the Administrative Agent shall have received: 
 (A) a duly executed copy of the Parent Guaranty Agreement, in form and substance reasonably satisfactory to the Administrative Agent;
and 
 (B) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the
Administrative Agent with respect to the Parent (including, without limitation, favorable opinions of counsel addressed to the Administrative Agent and the Lenders with respect to the Parent, the Loan Documents to which it is a party and such other
matters as the Lenders shall request); 
 (ii) Newco Loan Documentation. 
 (A) On or prior to the transfer of the Catawba Mill Assets to Newco, but in no event later than March 31, 2008 (as such date may
be extended by the Administrative Agent in its sole discretion), the Administrative Agent shall have received: 
 (1) a
duly executed joinder agreement, in form and substance reasonably satisfactory to the Administrative Agent, joining Newco to the Credit Agreement, the Collateral Agreement, the Intercompany Subordination Agreement and any other applicable Loan
Documents pursuant to which Newco shall agree to the terms of this Agreement including, without limitation, Section 4.15; 
 (2) the duly executed (I) Catawba Mortgage and (II) Catawba Note (which note shall be pledged as security for the Obligations in accordance with the terms of the Collateral Agreement); 
 (3) such updated Schedules to the Loan Documents as requested by the Administrative Agent or the Canadian Administrative Agent with
regard to Newco (including, without limitation, an updated Schedule 6.1(b)); 
 (4) such documents and certificates
referred to in Section 5.2 as may be reasonably requested by the Administrative Agent or the Canadian Administrative Agent with respect to Newco (including, without limitation, favorable opinions of counsel addressed to the
Administrative Agent and the Lenders with respect to Newco, the Loan Documents to which it is a party and such other matters as the Lenders shall request); 
  
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 (B) Within forty-five (45) days of the date upon which Newco is joined as a Credit Party pursuant to this
Section 8.10(e)(ii)(A) (as such date may be extended by the Administrative Agent and the Canadian Administrative Agent, each in its sole discretion): 
 (1) a final title policy, insuring the first priority Liens of the Secured Parties and the Canadian Secured Parties and showing no
Liens prior to the Liens of the Secured Parties and the Canadian Secured Parties other than for ad valorem taxes not yet due and payable, with title insurance companies acceptable to the Administrative Agent, on the Catawba Mill Real Property (it
being agreed that the US Credit Parties shall provide or obtain any customary affidavits and indemnities as may be required or necessary to obtain title insurance satisfactory to the Administrative Agent); 
 (2) copies of all recorded documents creating exceptions to the title policy referred to in Section 8.10(e)(ii)(B)(1); 

 (3) a certification form of a certification from the National Research Center, or any successor agency thereto,
regarding the Catawba Mill Real Property; 
 (4) copies of as-built surveys of a recent date of the Catawba Mill Real
Property certified as of a recent date by a registered engineer or land surveyor. Each such survey shall be accompanied by an affidavit (a "Survey Affidavit") of an authorized signatory of the owner of such property stating that there have
been no improvements or encroachments to the property since the date of the respective survey such that the existing survey is no longer accurate. Such survey shall show the area of such property, all boundaries of the land with courses and
distances indicated, including chord bearings and arc and chord distances for all curves, and shall show dimensions and locations of all easements, private drives, roadways, and other facts materially affecting such property, and shall show such
other details as the Administrative Agent may reasonably request, including, without limitation, any encroachment (and the extent thereof in feet and inches) onto the property or by any of the improvements on the property upon adjoining land or upon
any easement burdening the property; any improvements, to the extent constructed, and the relation of the improvements by distances to the boundaries of the property, to any easements burdening the property, and to the established building lines and
the street lines; and if improvements are existing, (x) a statement of the number of each type of parking space required by Applicable Laws, ordinances, orders, rules, regulations, restrictive covenants and easements affecting the improvement,
and the number of each such type of parking space provided, and (y) the locations of all utilities serving the improvement; 
  
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 (5) a Phase I environmental assessment and such other environmental report reasonably requested by the Administrative Agent regarding
the Catawba Mill Real Property by an environmental engineering firm acceptable to the Administrative Agent showing no environmental conditions in violation of Environmental Laws or liabilities under Environmental Laws, either of which could
reasonably be expected to have a Material Adverse Effect; and 
 (6) such other certificates, documents and information
(including, without limitation, engineering and structural reports, permanent certificates of occupancy and evidence of zoning compliance, in each case, with respect to the Catawba Mill Real Property) as may be reasonably requested by the
Administrative Agent, all in form, consent and scope reasonably satisfactory to the Administrative Agent. 
 (iii)
General Requirements. In each case noted above, the Administrative Agent shall have received, on behalf of itself, the Lenders and any other applicable Person, all accrued and unpaid fees, expenses or commissions payable to the Administrative
Agent and the Lenders under this Agreement (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and such amounts as may be due to any other Person in connection with the transactions contemplated
hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 SECTION 8.11 Use of Proceeds. The Borrower shall use the proceeds of the Extensions of Credit (a) to finance the acquisition of Capital Assets, (b) to refinance the Existing Facilities and (c) for
working capital and general corporate purposes of the Borrower and its Subsidiaries, including the payment of certain fees and expenses incurred in connection with this Agreement. 
 SECTION 8.12 Requirements Regarding Certain Permitted Indebtedness. The ability of any Credit Party to incur Indebtedness (including, without
limitation, Guaranty Obligations related thereto) pursuant to Section 10.1(m) is subject to the satisfaction of each of the following conditions precedent on the relevant date of incurrence: 
 (a) the loan agreement and any other credit documentation governing such Indebtedness shall be in form and substance satisfactory to the Administrative
Agent; 
 (b) to the extent that such Indebtedness is secured pursuant to Section 10.2(k), each lender or group of lenders
party thereto (or any authorized representative thereof) shall execute an Intercreditor Agreement; 
 (c) the proceeds of such Indebtedness
incurred pursuant to Section 10.1(m)(i) shall be applied: 
 (i) first, in an aggregate principal amount
of up to $350,000,000 (A) for working capital and general corporate purposes of, or to repay Indebtedness of, any 
  
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 Credit Party or (B) to repay outstanding Indebtedness of any Abitibi Entity that matures on or prior to December 31, 2008; and 
 (ii) second, with respect to proceeds of Indebtedness incurred pursuant to Section 10.1(m)(i) in excess of
$350,000,000, such proceeds shall be applied as follows: 
 (A) in an aggregate principal amount not to exceed
$200,000,000, for working capital and general corporate purposes of, or to repay outstanding Indebtedness of, the Parent, any Subsidiary thereof or any Abitibi Entity; or 
 (B) for working capital and general corporate purposes of, or to repay outstanding Indebtedness of, any Credit Party; 
 provided, that in no event shall the proceeds of any such Indebtedness referred to in this Section 8.12(c) be used to redeem
equity-like securities of the Parent, any of its Subsidiaries or any Abitibi Entity; provided further that, the order of application of any proceeds under this clause (ii) shall be determined by the Original Borrower in its
discretion. 
 (d) the proceeds of any Indebtedness incurred pursuant to Section 10.1(m)(ii) shall be applied for working
capital and general corporate purposes of, or to repay outstanding Indebtedness of, the Parent, any Subsidiary thereof or any Abitibi Entity pursuant to Section 10.3(h) or Section 10.6(i); and 
 (e) the Administrative Agent shall have received such other certificates, documents and information as are reasonably requested thereby. 
 SECTION 8.13 Further Assurances. Make, execute and deliver all such additional and further acts, things, deeds and instruments as the
Administrative Agent or the Required Agreement Lenders (through the Administrative Agent) may reasonably require to document and consummate the transactions contemplated hereby and to vest completely in and insure the Administrative Agent and the
Lenders their respective rights under this Agreement, the Letters of Credit and the other Loan Documents. 
 ARTICLE IX 
 FINANCIAL COVENANTS 
 Until all of
the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been obtained in the manner set forth in Section 13.2, the Borrower and its Subsidiaries on a Consolidated basis will not: 

SECTION 9.1 Consolidated Senior Secured Leverage Ratio: As of any fiscal quarter end, permit the Consolidated Senior Secured Leverage Ratio
to be greater than the corresponding ratio set forth below: 
  
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	 Applicable Period
	  	Maximum Ratio
	 Third Amendment Effective Date to March 31, 2008
	  	4.50 to 1.00
	 April 1, 2008 through and including June 30, 2008
	  	2.75 to 1.00
	 July 1, 2008 through and including September 30, 2008
	  	1.50 to 1.00
	 October 1, 2008 and thereafter
	  	1.25 to 1.00

 SECTION 9.2 Interest Coverage Ratio.
As of any fiscal quarter ending during the periods specified below, permit the ratio of (a) the sum, without duplication, of (i) Consolidated Adjusted EBITDA for the period of four (4) consecutive fiscal quarters ending on or
immediately prior to such date, plus (ii) the amount of Specified Non-Recurring Charges taken during the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date, to (b) Consolidated Interest Expense
paid or payable in cash for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date, to be less than the corresponding ratio set forth below: 
  

			
	 Applicable Period
	  	Minimum Ratio
	 Third Amendment Effective Date to March 31, 2008
	  	0.75 to 1.00
	 April 1, 2008 through and including June 30, 2008
	  	1.10 to 1.00
	 July 1, 2008 through and including September 30, 2008
	  	1.40 to 1.00
	 October 1, 2008 through and including December 31, 2008
	  	1.75 to 1.00
	 January 1, 2009 and thereafter
	  	2.00 to 1.00

 ARTICLE X 
 NEGATIVE COVENANTS 
 Until all of the
Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been obtained in the manner set forth in Section 13.2, the Borrower will not and will not permit any of its Subsidiaries to: 

SECTION 10.1 Limitations on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness except: 
  
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 (a)(i) the Obligations (excluding Hedging Obligations permitted pursuant to Section 10.1(c)) and
(ii) the Guaranty Obligations in favor of the Administrative Agent for the benefit of the Secured Parties; 
 (b)(i) the Canadian
Obligations (excluding any Canadian Obligations pursuant to Hedging Agreements permitted pursuant to Section 10.1(c)) and (ii) the Guaranty Obligations in respect of the Canadian Obligations in favor of the Canadian Administrative
Agent for the benefit of the Canadian Secured Parties; 
 (c) Indebtedness incurred in connection with a Hedging Agreement (i) which
is entered into for interest rate, foreign currency or other business purposes and not for speculative purposes and (ii) with a counterparty reasonably satisfactory to the Administrative Agent and the Canadian Administrative Agent;
provided that any counterparty that is a Lender, a Canadian Lender or any Affiliate thereof shall be deemed satisfactory to the Administrative Agent and the Canadian Administrative Agent; 
 (d) Indebtedness existing on the Closing Date and not otherwise permitted under this Section and, to the extent that the outstanding principal amount
of such Indebtedness is in excess of $25,000,000, listed on Schedule 10.1 (including any Indebtedness (including, without limitation, any Guaranty Obligation of Indebtedness of another Person) issued to refinance or to refund such
Indebtedness or any Indebtedness which constitutes a renewal or extension of such Indebtedness); provided that (i) the principal amount of such Indebtedness may not be increased at the time of such refinancing, refunding, renewal or
extension except (A) by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing, refunding, renewal or extension and by an amount equal to any
existing commitments unutilized thereunder and (B) by additional amounts, to the extent that the Consolidated Total Leverage Ratio, on a pro forma basis after giving effect to such increase, would be no greater than 5.50 to 1.00,
(ii) no Default or Event of Default exists and is continuing or would be caused by the refinancing, refunding, renewal or extension thereof, (iii) the Administrative Agent and the Canadian Administrative Agent shall have received
satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement and the Canadian Credit Agreement on a pro forma basis after giving effect to the refinancing, refunding,
renewal or extension thereof, (iv) the weighted average life of such Indebtedness shall not be shorter than the weighted average life of the Indebtedness being refinanced, refunded, renewed or extended, (v) any terms of subordination set
forth in the Indebtedness being refinanced, refunded, renewed or extended are not adversely affected in any material respect and (vi) none of the Existing Notes nor any Indebtedness incurred in accordance with this paragraph to refinance,
refund, renew or extend the Existing Notes shall be guaranteed by the Borrower or any of its Subsidiaries (other than (A) those Existing Notes which are guaranteed by the Borrower as of the Closing Date and identified on Schedule 10.1 as
being so guaranteed and (B) any Indebtedness issued to refinance any Existing Notes which, as of the Closing Date, (1) have an outstanding principal balance in excess of $50,000,000 and (2) mature or are subject to mandatory
redemption prior to the Maturity Date); 
 (e) Indebtedness incurred in connection with Capital Leases, including those Capital Leases
existing on the Closing Date, and purchase money Indebtedness, including all purchase 
  
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 money Indebtedness existing on
the Closing Date, in an aggregate amount not to exceed $50,000,000 on any date of determination; 
 (f) Guaranty Obligations with respect
to Indebtedness permitted pursuant to subsections (c), (e), (h), (l), (m) and (n) of this Section (provided that (i) any Guaranty Obligations of Indebtedness incurred pursuant to
subsection (h) or, to the extent applicable, subsection (n) of this Section shall be subordinated to the Obligations and the Canadian Obligations to the same extent as the Indebtedness that is being guaranteed and
(ii) with respect to any Guaranty Obligations guaranteeing Indebtedness incurred pursuant to subsection (m) of this Section, the Borrower and its Subsidiaries shall have complied with Section 8.12); 
 (g)(i)(A) Indebtedness owed by any Credit Party to any other Credit Party including, without limitation, Indebtedness evidenced by the Catawba Note
(provided that, if requested by the Administrative Agent, such Indebtedness (other than the Catawba Note) shall be subordinated to the Obligations on terms and conditions reasonably satisfactory to the Administrative Agent) and
(B) Indebtedness owed by any Canadian Credit Party (other than the Borrower) to any other Canadian Credit Party (other than the Borrower) (provided that, if requested by the Canadian Administrative Agent, such Indebtedness shall be
subordinated to the Canadian Obligations on terms and conditions reasonably satisfactory to the Canadian Administrative Agent); 
 (ii)(A) Indebtedness owed by any Canadian Credit Party (other than the Borrower) to any Credit Party (provided that such Indebtedness shall be payable by such Canadian Credit Party on demand by the applicable Credit Party) and
(B) Indebtedness owed by any Credit Party to any Canadian Credit Party (provided that such Indebtedness shall be payable by such Credit Party (other than the Borrower) on demand by the applicable Canadian Credit Party); 
 (iii) Indebtedness owed by any Subsidiary which is not a Credit Party or a Canadian Credit Party to any other Subsidiary which is not a
Credit Party or a Canadian Credit Party; 
 (iv) Indebtedness owed by any Credit Party or any Canadian Credit Party to a
Subsidiary that is not a Credit Party or a Canadian Party (provided that such Indebtedness (other than Indebtedness existing as of the Closing Date pursuant to the Bowater-Calhoun Arrangement) shall be subordinated to the Obligations and the
Canadian Obligations, as applicable, pursuant to an Intercompany Subordination Agreement); and 
 (v) Indebtedness owed by
any Subsidiary that is not a Credit Party or a Canadian Credit Party to a Credit Party or a Canadian Credit Party (provided that such Indebtedness shall be payable by such Subsidiary on demand by the Credit Party or the Canadian Credit Party,
as applicable, to the extent required pursuant to the Intercompany Subordination Agreement); provided that the aggregate amount of such Indebtedness incurred after the Closing Date, together with any equity or capital investments made after
the Closing Date permitted pursuant to Section 10.3(g) (without duplication), shall not exceed $50,000,000 outstanding on any date of determination (which amount shall be calculated as the net balance of such loans, advances and
investments as reduced by any repayments or distributions made with respect 
  
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 thereto);
provided further that the limitation set forth in the preceding proviso shall not be applicable to any loans and advances made by the Borrower to Bowater Canada Finance Corporation to pay interest on the BCFC Notes; 
 (h) Subordinated Indebtedness; provided that in the case of each issuance of Subordinated Indebtedness, (i) no Default or Event of Default
shall have occurred and be continuing or would be caused by the issuance of such Subordinated Indebtedness, (ii) the Consolidated Total Leverage Ratio on pro forma basis after giving effect to issuance of such Subordinated
Indebtedness is no greater than 5.50 to 1.00 and (iii) the Administrative Agent and the Canadian Administrative Agent shall have received satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance with all
covenants contained in this Agreement and the Canadian Credit Agreement on a pro forma basis after giving effect to the issuance of any such Subordinated Indebtedness; 
 (i) Indebtedness of the Borrower or any of its Subsidiaries as an account party in respect of trade letters of credit in an aggregate amount not to
exceed $25,000,000 on any date of determination; provided that no such trade letter of credit shall be secured by any assets of the Borrower or any of its Subsidiaries other than the assets being acquired or shipped pursuant to such letter of
credit; 
 (j) Indebtedness (i) of any Person that becomes a Subsidiary after the Closing Date in connection with any Permitted
Acquisition or (ii) assumed in connection with any assets acquired in connection with any Permitted Acquisition, and the refinancing, refunding, renewal and extension (but not the increase in the aggregate principal amount) thereof;
provided that (A) such Indebtedness exists at the time such Person becomes a Subsidiary or such assets are acquired and is not created in contemplation of, or in connection with, such Person becoming a Subsidiary or such assets being
acquired and (B) notwithstanding anything to the contrary contained in this Agreement, neither the Borrower nor any other Subsidiary (other than such Person) shall have any liability or other obligation with respect to such Indebtedness (other
than any liability or other obligation of the Borrower or any of its Subsidiaries permitted hereunder which existed prior to the time that such Person became a Subsidiary or such asset was acquired); 
 (k) [Intentionally Omitted] 
 (l) Indebtedness in an aggregate principal amount not to exceed $125,000,000 in the form of Canadian cash management facilities; 
 (m) to the extent not otherwise permitted pursuant to this Section and so long as the Borrower shall have complied with the requirements set forth in Sections 8.10(e)(i) and (ii)(A) of this Agreement and
Section 8.10(e)(i) of the Canadian Credit Agreement: 
 (i) Indebtedness of any Credit Party (including Newco)
in an aggregate amount not to exceed $700,000,000 outstanding on any date of determination; provided, that in the case of each issuance of such Indebtedness, (A) no Default or Event of Default shall have occurred and be continuing or
would be caused by the issuance of such Indebtedness, (B) the Administrative Agent and the Canadian Administrative Agent shall have received satisfactory 
  

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 written evidence that the Borrower and its Subsidiaries would be in compliance with the
financial covenants set forth in Article IX on a pro forma basis after giving effect to such Indebtedness, (C) except in the case of any Guaranty Obligation of any Indebtedness of the Parent incurred pursuant to
Section 11.1(o) and only to the extent permitted pursuant to Section 11.1(o)(viii)(E), such Indebtedness shall not have a maturity date or required principal payment that is earlier than the ninety-first (91st) day after the Maturity Date and (D) the Borrower and the Parent shall have complied with the requirements set forth in Section 8.12 (other
than subsection (d)) (the "Original Newco Indebtedness"); and 
 (ii) additional Indebtedness of any Credit Party (including Newco) not otherwise permitted pursuant to Section 10.1(m)(i); provided, that in the case of each issuance of such Indebtedness,
(A) the Consolidated Total Leverage Ratio on a pro forma basis after giving effect to issuance of such Indebtedness is no greater than 4.50 to 1.00, (B) no Default or Event of Default shall have occurred and be continuing or
would be caused by the issuance of such Indebtedness, (C) the Administrative Agent and the Canadian Administrative Agent shall have received satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance with the
financial covenants set forth in Article IX on a pro forma basis after giving effect to such Indebtedness, (D) except in the case of any Guaranty Obligation of any Indebtedness of the Parent incurred pursuant to
Section 11.1(o) and only to the extent permitted pursuant to Section 11.1(o)(viii)(E), such Indebtedness shall not have a maturity date or required principal payment that is earlier than the ninety-first (91st) day after the Maturity Date and (E) the Borrower and the Parent shall have complied with the requirements set forth in Section 8.12 (other
than subsection (c)) (the "Additional Newco Indebtedness"); and 
 (n) Additional Indebtedness not otherwise permitted pursuant to
this Section in an aggregate amount outstanding not to exceed $25,000,000. 
 SECTION 10.2 Limitations on Liens. Create, incur,
assume or suffer to exist, any Lien on or with respect to any of its assets or properties (including, without limitation, shares of Capital Stock), real or personal, whether now owned or hereafter acquired, except: 
 (a)(i) Liens of the Administrative Agent for the benefit of the Secured Parties, (ii) Liens of the Canadian Administrative Agent for the benefit
of the Canadian Secured Parties and (iii) Liens on the Newco Fixed Assets of the Administrative Agent for the benefit of the Secured Parties and the Canadian Secured Parties pursuant to the Catawba Mortgage; 
 (b) Liens not otherwise permitted by this Section and in existence on the Closing Date and, with respect to each Credit Party and each Canadian Credit
Party, described on Schedule 10.2 (including Liens incurred in connection with any refinancing, refunding, renewal or extension of Indebtedness pursuant to Section 10.1(d) solely to the extent that the such Liens were in existence
on the Closing Date and described on Schedule 10.2); provided that the scope of any such Lien shall not be increased, or otherwise expanded, to cover any additional property or type of asset, as applicable, beyond that in existence on
the Closing Date; 
 (c) Liens for taxes, assessments and other governmental charges or levies not yet due or as to which the period of
grace (not to exceed thirty (30) days), if any, related thereto has not 
  
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 expired or which are being
contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP; 
 (d) the
claims of materialmen, mechanics, carriers, warehousemen, processors or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, (i) which are not overdue for a period of more than thirty (30) days
or (ii) which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP; 
 (e) Liens consisting of deposits or pledges made in the ordinary course of business in connection with, or to secure payment of, obligations under workers' compensation, unemployment insurance or similar legislation;

 (f) Liens constituting encumbrances in the nature of zoning restrictions, easements and rights or restrictions of record on the use of
real property or other similar restrictions, which do not, in any case, impair the use thereof in the ordinary conduct of business; 
 (g)
Liens securing Indebtedness permitted under Sections 10.1(e); provided that (i) such Liens shall be created substantially simultaneously with the acquisition or lease of the related asset, (ii) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness, (iii) the amount of Indebtedness secured thereby is not increased and (iv) the principal amount of Indebtedness secured by any such Lien shall at no time exceed
one hundred percent (100%) of the original purchase price or lease payment amount of such property at the time it was acquired; 
 (h)
Liens securing judgments for the payment of money not constituting an Event of Default under Section 11.1(m) or securing appeal or other surety bonds relating to such judgments; 
 (i) Liens on tangible property or tangible assets of the Borrower or any of its Subsidiaries acquired pursuant to a Permitted Acquisition, or on
tangible property or tangible assets of any Subsidiary of the Borrower which are in existence at the time that such Subsidiary of the Borrower is acquired pursuant to a Permitted Acquisition (provided that such Liens (i) are not incurred
in connection with, or in anticipation of, such Permitted Acquisition, (ii) are applicable only to specific tangible property or tangible assets, (iii) are not "blanket" or all asset Liens and (iv) do not attach to any other property
or assets of the Borrower or any of its Subsidiaries); 
 (j) Liens in existence as of the Closing Date in connection with the
Bowater-Calhoun Arrangement as described in clause (b) of the definition thereof; 
 (k) subject to Section 8.12(b), Liens
on the Collateral; provided, that such Liens shall (i) be junior in priority to the Liens of the Administrative Agent, for the benefit of the Secured Parties or the Canadian Secured Parties (as the case may be), on the Collateral and
(ii) secure Indebtedness incurred pursuant to Section 10.1(m); and 
 (l) Liens not otherwise permitted hereunder securing
obligations not at any time exceeding in the aggregate $25,000,000. 
  
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 SECTION 10.3 Limitations on Loans,
Advances, Investments and Acquisitions. Purchase, own, invest in or otherwise acquire, directly or indirectly, any Capital Stock, interests in any partnership or joint venture (including, without limitation, the creation or capitalization of any
Subsidiary), evidence of Indebtedness or other obligation or security, all or substantially all of the business or assets of any other Person (or any portion of the business or assets of any other Person that constitutes a line of business, a
business unit or a division) or any other investment or interest whatsoever in any other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions of credit to, or any investment in cash or by delivery of property
in, any Person (collectively, "Investments") except: 
 (a) Investments: 
 (i) existing on the Closing Date in Subsidiaries existing on the Closing Date; 
 (ii) after the Closing Date in Subsidiaries formed after the Closing Date so long as the Borrower, the Canadian Borrower and their
respective Subsidiaries comply with the applicable provisions of Section 8.10 of this Agreement and Section 8.10 of the Canadian Credit Agreement; 
 (iii) existing on the Closing Date (other than Investments in Subsidiaries on the Closing Date) and described on Schedule 10.3;

 (b) Investments in cash and Cash Equivalents; 
 (c) Investments by the Borrower or any of its Subsidiaries in the form of Permitted Acquisitions; 
 (d)
Hedging Agreements permitted pursuant to Section 10.1; 
 (e) Investments in the form of loans and advances to employees in the
ordinary course of business, which, in the aggregate, do not exceed at any time $2,000,000; 
 (f)(i) Investments in the form of
intercompany Indebtedness permitted pursuant to Section 10.1(g) (other than clause (v) of Section 10.1(g), but including, without limitation, Investments by the Original Borrower in Newco evidenced by the Catawba Note so
long as the Catawba Note is pledged as security for the Obligations and delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, in each case, pursuant to the terms of the Collateral Agreement), (ii) equity or
capital investments made by the Borrower or any of its Subsidiaries in any Credit Party or any Canadian Credit Party (or made in a Wholly-Owned Subsidiary that is not a Credit Party or a Canadian Credit Party and immediately contributed (directly or
indirectly through one or more intermediate Wholly-Owned Subsidiaries) into a Credit Party or a Canadian Credit Party) and (iii) equity or capital investments made by any Subsidiary that is not a Credit Party or a Canadian Credit Party in any
other Subsidiary that is not a Credit Party or a Canadian Credit Party; 
 (g) Investments in the form of intercompany Indebtedness
permitted by clause (v) of Section 10.1(g), together with equity or capital investments made by any Credit Party or any Canadian Credit Party to any Subsidiary which is not a Credit Party or a Canadian Credit Party; 
  
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 provided that the aggregate amount of such intercompany Indebtedness and equity or capital investments, in each case
incurred or made after the Closing Date, shall not exceed $50,000,000 outstanding on any date of determination (which amount shall be calculated as the net balance of such loans, advances and equity or capital investments as reduced by any
repayments or distributions made with respect thereto); provided further that the limitation set forth in the preceding proviso shall not be applicable to any loans and advances made by the Borrower to Bowater Canada Finance
Corporation to pay interest on the BCFC Notes; 
 (h) Investments in the form of loans or advances to any Abitibi Entity of all or a
portion of the proceeds of Indebtedness incurred pursuant to Section 10.1(m) so long as (i) no Default or Event of Default shall have occurred and be continuing or would be caused by such Investment, and (ii) the Parent and its
Subsidiaries shall have complied with Section 8.12(c) and (d); and 
 (i) Investments made after the Closing Date and
not otherwise permitted hereunder (including minority investments in joint ventures) in an aggregate amount not to exceed $20,000,000 on any date of determination (which amount shall be calculated as the net balance of such Investments as reduced by
any repayments or distributions made with respect thereto). 
 SECTION 10.4 Limitations on Mergers and Liquidation. Merge,
amalgamate, consolidate or enter into any similar combination with any other Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution) except: 
 (a) any Wholly-Owned Subsidiary of the Borrower may be merged, amalgamated or consolidated with or into: 
 (i) the Borrower (provided that the continuing or surviving Person shall be the Borrower); or 
 (ii) any other Wholly-Owned Subsidiary of the Borrower (provided that the continuing or surviving Person shall (A) be a
Subsidiary Guarantor in the case of a merger, amalgamation or consolidation involving a Subsidiary Guarantor, (B) include the Canadian Borrower in the case of a merger, amalgamation or consolidation involving the Canadian Borrower and
(C) subject to clauses (i) and (ii)(B) above, be a Canadian Guarantor in the case of a merger, amalgamation or consolidation involving a Canadian Guarantor); 
 provided further that no Credit Party may be merged, amalgamated or consolidated with or into a Canadian Credit Party and no Canadian Credit Party may be merged, amalgamated or consolidated with or into a
Credit Party; 
 (b) any Wholly-Owned Subsidiary of the Borrower may merge or amalgamate into the Person such Wholly-Owned Subsidiary was
formed to acquire in connection with a Permitted Acquisition; 
 (c) any Wholly-Owned Subsidiary of the Borrower may merge or amalgamate
into any Person pursuant to an Asset Disposition of all of the assets of such Wholly-Owned Subsidiary permitted pursuant to Section 10.5; and 
  
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 (d) any Subsidiary of the Borrower (other than the Canadian Borrower) may wind-up, liquidate or dissolve provided that (i) its assets are
transferred to the Borrower or any Wholly-Owned Subsidiary of the Borrower and (ii) if such Subsidiary is (A) a Subsidiary Guarantor then the transferee shall be a Credit Party and (B) a Canadian Guarantor (other than the Borrower)
then the transferee shall be a Canadian Credit Party. 
 SECTION 10.5 Limitations on Asset Dispositions. Make any Asset Disposition
(including, without limitation, the sale of any receivables and leasehold interests and any sale-leaseback or similar transaction) except: 
 (a) the sale of inventory in the ordinary course of business; 
 (b) the sale of obsolete, worn-out or surplus assets no longer used
or usable in the business of the Borrower or any of its Subsidiaries; 
 (c) the transfer of assets to the Borrower, the Canadian Borrower
or any Wholly-Owned Subsidiary (provided that, in the case of any such transfer of assets, (i) if the transferee of such assets is a Credit Party or a Canadian Credit Party, such Credit Party or Canadian Credit Party shall not pay more
than the fair market value of such assets (determined as of the date of the applicable transfer) and (ii) if the transferor of such assets is a Credit Party or a Canadian Credit Party, the transferee shall not pay less than the fair market
value of such assets (determined as of the date of the applicable transfer); 
 (d) the sale or discount without recourse of accounts
receivable arising in the ordinary course of business in connection with the compromise or collection thereof; 
 (e) the disposition of
any Hedging Agreement; 
 (f) the disposition of cash or Cash Equivalents; 
 (g) subject to the requirements of Section 8.2(b), the sale of timberlands by the Borrower or its Subsidiaries; 
 (h) the transfer by the Original Borrower of the Catawba Mill Assets to Newco in connection with the Newco Transactions in exchange for a promissory
note, in form and substance satisfactory to the Administrative Agent, payable by Newco to the Original Borrower (such note, as amended, restated, supplemented or otherwise modified, the "Catawba Note") and Capital Stock of Newco (or as
otherwise agreed to by the Administrative Agent); 
 (i) the transfer by the Original Borrower of all or (if the remaining portion is
dividended to the Parent pursuant to Section 10.6(h)) any portion of the issued and outstanding Capital Stock of Newco held by the Original Borrower to the Parent in accordance with the Newco Transactions in exchange for Capital Stock of
(i) Bowater Canadian Holdings Incorporated, a company organized under the laws of Nova Scotia, held by the Parent, (ii) Abitibi-Consolidated Inc. held by the Parent and/or (iii) Donohue Corporation held by the Parent (or such other
consideration as is reasonably acceptable to the Administrative Agent); 
 (j) Asset Dispositions of all or any portion of the Newco Fixed
Assets; provided that: 
  
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 (i) such Asset Disposition shall be for no
less than fair market value; 
 (ii) both before and after giving to such Asset Disposition, no Default or Event of Default
shall have occurred and be continuing; 
 (ii) the Borrower shall be in pro forma compliance with each of the
covenants set forth in Article IX; 
 (iv) the terms of such Asset Disposition shall be reasonably satisfactory to
the Administrative Agent and the Canadian Administrative Agent, each in its sole discretion; and 
 (v) the Net Cash
Proceeds of such Asset Disposition shall be applied in accordance with Section 8.2(b)(ii); and 
 (k) additional Asset
Dispositions not otherwise permitted pursuant to this Section in an aggregate amount not to exceed $250,000,000 in the aggregate during the term of this Agreement. 
 SECTION 10.6 Limitations on Dividends and Distributions. Declare or pay any dividends upon any of its Capital Stock; purchase, redeem, retire or otherwise acquire, directly or indirectly, any shares of its
Capital Stock, or make any distribution of cash, property or assets among the holders of shares of its Capital Stock, or make any change in its capital structure which such change in its capital structure could reasonably be expected to have a
Material Adverse Effect; provided that: 
 (a) the Borrower or any Subsidiary may pay dividends in shares of its own Capital Stock;

 (b) the Borrower or any Subsidiary may make cash distributions or equity repurchases pursuant to employee benefit plans or incentive
compensation plans, in each case to the extent such distributions constitute compensation to executives or employees of the Borrower or of the applicable Subsidiary; 
 (c) any Subsidiary may pay dividends to the holders of its Capital Stock (other than payment of dividends to holders of the Exchangeable Shares); provided that in the case of any dividend paid by a Subsidiary
that is not a Wholly-Owned Subsidiary, such dividend may be paid only if such dividend is paid on a ratable basis to the holders of such Capital Stock in accordance with their respective ownership percentages in such Subsidiary; 
 (d)(i) the Original Borrower may pay cash dividends to the Parent to allow the Parent to pay cash dividends to holders of the Parent's Capital Stock
and (ii) Bowater Canada, Inc. may pay cash dividends to holders of the Exchangeable Shares; provided that in each case (A) any such dividend is paid as promptly as possible but in no event later than seventy-five (75) days
after the date of declaration of such dividend, (B) such dividends do not exceed $75,000,000 in the aggregate during each Fiscal Year and (C) on each date that a dividend is declared and after giving effect thereto: 
  
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 (1) no Default or Event of Default shall have occurred and be continuing; and 
 (2) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX; 
 (e) the Borrower may pay dividends to the Parent to allow the Parent to repurchase shares of the Parent's Capital Stock, in an aggregate amount for all
such repurchases by the Borrower or dividends paid by the Borrower of up to $100,000,000 during the term of this Agreement; provided that on each date that Capital Stock is repurchased or such dividend is paid and after giving effect thereto:

 (A) no Default or Event of Default shall have occurred and be continuing; 
 (B) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX; 

(C) the Aggregate Credit Exposure shall not exceed $100,000,000; and 
 (D) the pro forma Consolidated Total Leverage Ratio shall not exceed 4.50 to 1.00; 
 (f) Bowater Canada, Inc. or Bowater Canadian Holdings Incorporated may repurchase all or a portion of the Exchangeable Shares solely through an
exchange of common stock of the Parent for the Exchangeable Shares being repurchased; 
 (g) the Borrower may make dividends and
distributions to the Parent to pay: 
 (i) taxes attributable to the consolidated operations of the Borrower and its
Subsidiaries; 
 (ii) the Parent Overhead Expenses in an aggregate amount per Fiscal Year not to exceed fifty percent
(50%) of the aggregate amount of Parent Overhead Expenses during such Fiscal Year; and 
 (iii) so long as no Default
or Event of Default has occurred and is continuing or would result after giving effect to such dividends or distributions, an additional amount of Parent Overhead Expenses in an aggregate amount not to exceed $10,000,000 per Fiscal Year; 

(h) the Original Borrower may pay a one-time dividend to the Parent of all or (if the remaining portion is transferred to the Parent pursuant to
Section 10.5(i)) any portion of the issued and outstanding shares of the Capital Stock of Newco held by the Original Borrower in connection with the Newco Transactions; 
 (i) subject to Section 11.1(o)(ix); so long as (i) no Default or Event of Default shall have occurred and be continuing or would be
caused thereby and (ii) the Borrower shall have 
  
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 complied with the requirements set forth in Sections
8.10(e)(i) and (ii)(A) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, the Borrower may make cash distributions or dividends to the Parent (including, without limitation, with all or a portion of the
proceeds of Indebtedness incurred pursuant to Section 10.1(m)) which, unless otherwise permitted pursuant to Section 8.12(c) or (d), shall be invested in a Credit Party; and 
 (j) subject to Sections 10.10 and 11.1(o)(viii)(E), the Borrower and its Subsidiaries may make cash distributions or dividends to the
Parent to allow the Parent to make required payments on Indebtedness incurred by the Parent as permitted pursuant to Section 11.1(o)(viii); provided that on each date any distribution or dividend is paid and after giving effect
thereto: 
 (i) no Default or Event of Default shall have occurred and be continuing; and 
 (ii) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX and
Section 11.1(o)(ix). 
 SECTION 10.7 Limitations on Exchange and Issuance of Capital Stock. Except to the extent
included as Indebtedness and incurred in accordance with Section 10.1 hereof, issue, sell or otherwise dispose of any class or series of Capital Stock that, by its terms or by the terms of any security into which it is convertible or
exchangeable, is, or upon the happening of an event or passage of time would be, (a) convertible or exchangeable into Indebtedness unless such Indebtedness is permitted at the time pursuant to Section 10.1 or (b) required to be
redeemed or repurchased, including at the option of the holder, in whole or in part, or has, or upon the happening of an event or passage of time would have, a redemption or similar payment due. 
 SECTION 10.8 Transactions with Affiliates. Directly or indirectly (a) make any loan or advance to, or purchase or assume any note or other
obligation to or from, any of its officers, directors, shareholders or other Affiliates, or to or from any member of the immediate family of any of its officers, directors, shareholders or other Affiliates, or subcontract any operations to any of
its Affiliates or (b) enter into, or be a party to, any other transaction not described in clause (a) above with any of its Affiliates other than: 
 (i) transactions permitted by Section 10.3, 10.4, 10.6 or 10.7; 
 (ii) transactions existing on the Closing Date and described on Schedule 10.8; 
 (iii) normal compensation and reimbursement of reasonable expenses of officers and directors; and 
 (iv) other transactions in the ordinary course of business on terms as favorable as would be obtained by it on a comparable arms-length
transaction with an independent, unrelated third party. 
 SECTION 10.9 Certain Accounting Changes; Organizational Documents.

 (a) Change its Fiscal Year end, or make any change in its accounting treatment and reporting practices except as required by GAAP.

  
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 (b) Amend, modify or change its articles of incorporation (or corporate charter or other similar
organizational documents) or amend, modify or change its bylaws (or other similar documents) in any manner which materially adversely affects the rights or interests of the Lenders or the Canadian Lenders. 
 SECTION 10.10 Amendments; Payments and Prepayments of Indebtedness. 
 (a) Amend, modify or change any indenture or other agreement governing the Existing Notes in any respect which would materially adversely affect the
rights or interests of the Administrative Agent, the Canadian Administrative Agent, the Lenders and the Canadian Lenders. 
 (b) Amend,
modify or change (i) any provision of this Agreement which, under Section 13.2, is subject to the approval of the Required Lenders without amending, modifying or changing the corresponding provision in the Canadian Credit Agreement
or (ii) any provision of the Canadian Credit Agreement which, under Section 14.2 of the Canadian Credit Agreement, is subject to the approval of the Required Lenders without amending, modifying or changing the corresponding
provision in this Agreement. 
 (c) Amend or modify (or permit the modification or amendment of) any of the terms or provisions of any
Indebtedness incurred pursuant to Section 10.1(m) or any Subordinated Indebtedness, in either case, in any respect which would materially adversely affect the rights or interests of the Administrative Agent, the Canadian Administrative
Agent, the Lenders and the Canadian Lenders. 
 (d) Cancel, forgive, make any payment (other than regularly scheduled interest payments) or
prepayment on, or redeem or acquire for value (including, without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying when due, but excluding payments at the scheduled
maturity thereof) all or any portion of any Indebtedness incurred pursuant to Section 10.1(m), any Subordinated Indebtedness (other than Indebtedness incurred pursuant to Section 10.1(g)(i)), the Existing Notes or any
Indebtedness incurred to refinance the Existing Notes as permitted pursuant to Section 10.1(d), except for: 
 (i) refinancings, refundings, renewals, extensions or exchange of any Subordinated Indebtedness permitted by Section 10.1(h) subject to the satisfaction of each of the conditions to a refinance, refunding, renewal or extension set
forth in Section 10.1(d); 
 (ii) refinancings, refundings, renewals, extensions or exchange of any
Indebtedness incurred pursuant to Section 10.1(m) to the extent permitted by Section 10.1(m) subject to the satisfaction of each of the conditions to a refinance, refunding, renewal or extension set forth in
Section 10.1(d); 
 (iii) refinancings, refundings, renewals, extensions or exchange of any Existing Notes
permitted by Section 10.1(d); and 
  
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 (iv) cash redemptions or repayments of the
Existing Notes or any Indebtedness incurred to refinance the Existing Notes as permitted pursuant to Section 10.1(d); provided that (A) no Default or Event of Default shall have occurred and be continuing at the time of such
redemption or repayment or would result from such redemption or repayment and (B) if at the time of such redemption or repayment (or immediately after giving effect thereto), the sum of (x) the principal amount of the outstanding Loans
under this Credit Facility plus (y) the principal amount of the outstanding Canadian Loans is in excess $100,000,000, the Administrative Agent shall have received satisfactory written evidence that: 
 (1) the Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement on a pro forma basis
after giving effect to such redemption; 
 (2) the principal amount of availability under this Credit Facility and the
Canadian Credit Facility both before and after giving effect to such redemption is equal to or greater than $50,000,000; 
 (3) the Consolidated Total Senior Secured Indebtedness, both before and immediately after giving effect thereto, is less than or equal to eighty percent (80%) of the net book value of the Coverage Assets as set forth on the Consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Section 5.2 or 7.1 hereof; and 
 (4) the principal amount of outstanding loans and the face amount of outstanding letters of credit under the Canadian Credit Facility, both before and immediately after giving effect thereto, is less than or equal to
fifty percent (50%) of the net book value of the accounts receivable and inventory owned by the Canadian Borrower and each of its Canadian Subsidiaries as set forth on the Consolidated balance sheet of the Canadian Borrower and its Consolidated
Subsidiaries most recently delivered pursuant to Section 5.2 or 7.1 of the Canadian Credit Agreement. 
 SECTION 10.11
Restrictive Agreements. 
 (a) Enter into any Indebtedness which: 
 (i) contains any covenants more restrictive than the provisions of Articles VIII, IX and X; or 
 (ii) contains any negative pledge on assets or restricts, limits or otherwise encumbers its ability to incur Liens on or with respect
to any of its assets or properties other than the assets or properties securing such Indebtedness (other than (A) the Existing Notes (provided that such provisions may not be amended or modified to be more restrictive), (B) any
Indebtedness incurred in accordance with Section 10.1(d) to refinance the Existing Notes (provided that such provisions may not be more restrictive than those contained in the Existing Notes), (C) the Canadian Credit Facility
(provided 
  
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 that such provisions shall not be amended or modified except
as permitted hereunder and thereunder) and (D) any Indebtedness incurred pursuant to Section 10.1(m)). 
 (b) Enter into
or permit to exist any agreement which impairs or limits the ability of any Subsidiary of the Borrower to pay dividends to the Borrower or to make or repay loans or advances to the Borrower other than (i) restrictions and conditions imposed by
Applicable Law or the Loan Documents, (ii) legally enforceable restrictions and conditions which are permitted by clause (iii) of Section 6.1(n) and (iii) customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary or its assets pending such sale; provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted under this Agreement. 
 SECTION 10.12 Nature of Business. Alter in any material respect the character or conduct of the business conducted by the Borrower and its
Subsidiaries as of the Closing Date. 
 SECTION 10.13 Borrower Jurisdiction. No Borrower nor any Subsidiary Borrower shall at any
time be, or become, incorporated, organized or formed (as the case may be) in a Restricted Jurisdiction unless: 
 (a) the Original
Borrower has provided thirty (30) days prior written notice to the Administrative Agent and the Lenders of such circumstance; and 
 (b) subject to the rights of the Original Borrower pursuant to Section 4.12(b), no Lender has indicated in writing to the Administrative Agent and the Original Borrower that is unable to legally do business with a Borrower or
Subsidiary Borrower incorporated, organized or formed under the laws of such Restricted Jurisdiction. 
 SECTION 10.14 Impairment of
Security Interests. Take or omit to take any action, which might or would have the result of materially impairing the security interests in favor of the Administrative Agent with respect to the Collateral or grant to any Person (other than the
Administrative Agent for the benefit of itself and the Secured Parties or the Canadian Secured Parties, as the case may be, pursuant to the Security Documents) any interest whatsoever in the Collateral, except for Permitted Liens and Asset
Dispositions permitted under Section 10.5. 
 ARTICLE XI 
 DEFAULT AND REMEDIES 
 SECTION 11.1 Events of Default. Each of the
following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment or order of any court or any order, rule or regulation
of any Governmental Authority or otherwise: 
 (a) Default in Payment of Principal of Loans and Reimbursement Obligations. The
Borrower or any other Credit Party shall default in any payment of principal of any Loan or Reimbursement Obligation when and as due (whether at maturity, by reason of acceleration or otherwise). 
  
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 (b) Other Payment Default. The Borrower or any other Credit Party shall default in the payment when and as
due (whether at maturity, by reason of acceleration or otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any other Obligation, and such default shall continue for a period of three (3) or more Business Days.

 (c) Misrepresentation. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of
the Borrower or any other Credit Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith that is subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in
any respect when made or deemed made or any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Credit Party herein, any other Loan Document, or in any document delivered in
connection herewith or therewith that is not subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any material respect when made or deemed made. 
 (d) Default in Performance of Certain Covenants. The Borrower or any other Credit Party shall default in the performance or observance of any
covenant or agreement contained in Sections 5.4, 7.1, 7.2, 7.5(e)(i), 8.2(b)(ii), 8.10(e) or 8.12 or Articles IX or X. 
 (e) Default in Performance of Other Covenants and Conditions. The Borrower or any other Credit Party shall default in the performance or
observance of any term, covenant, condition or agreement contained in this Agreement (other than as specifically provided for otherwise in this Section) or any other Loan Document and such default shall continue for a period of thirty (30) days
after written notice thereof has been given to the Borrower by the Administrative Agent. 
 (f) Hedging Agreement. The Borrower or
any other Credit Party shall default in the performance or observance of any terms, covenant, condition or agreement (after giving effect to any applicable grace or cure period) under any Hedging Agreement and such default causes the termination of
such Hedging Agreement and the Termination Value owed by such Credit Party as a result thereof exceeds $25,000,000. 
 (g) Indebtedness
Cross-Default. 
 (i) Any "Event of Default" (as defined in the Canadian Credit Agreement) shall occur under the
Canadian Credit Agreement. 
 (ii) Any "Event of Default" (or similar term used and defined in the documentation governing
any Indebtedness incurred pursuant to Section 10.1(m)) shall occur under any Indebtedness incurred pursuant to Section 10.1(m). 
 (iii) Any default shall occur in the payment of any Indebtedness of the Borrower or any of its Subsidiaries (other than the Loans, any
Reimbursement Obligation, the Canadian Credit Facility or any Indebtedness incurred pursuant to Section 10.1(m)) the aggregate outstanding amount of which Indebtedness is in excess of $25,000,000 beyond the period of grace, if any,
provided in the instrument or agreement under which such Indebtedness was created. 
  
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 (iv) Any default in the observance or performance of any other agreement or condition relating to any Indebtedness of the Borrower or any of its Subsidiaries (other than the Loans, any Reimbursement Obligation, the Canadian Credit Facility or
any Indebtedness incurred pursuant to Section 10.1(m)) the aggregate outstanding amount of which Indebtedness is in excess of $25,000,000 or contained in any instrument or agreement evidencing, securing or relating thereto or any other
event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, with the giving
of notice if required, any such Indebtedness to become due prior to its stated maturity (any applicable grace period having expired). 
 (h) Change in Control. Any Change in Control shall occur. 
 (i) Voluntary Bankruptcy Proceeding. The Borrower or any
of its Subsidiaries shall (i) commence a voluntary case under the federal bankruptcy laws (as now or hereafter in effect), (ii) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding up or composition for adjustment of debts, (iii) consent to or fail to contest in a timely and appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws or other laws,
(iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic
or foreign, (v) admit in writing its inability to pay its debts as they become due, (vi) make a general assignment for the benefit of creditors, or (vii) take any corporate action for the purpose of authorizing any of the foregoing.

 (j) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced against the Borrower or any of its
Subsidiaries in any court of competent jurisdiction seeking (i) relief under the federal bankruptcy laws (as now or hereafter in effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding
up or adjustment of debts, or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for the Borrower or any of its Subsidiaries or for all or any substantial part of their respective assets, domestic or foreign, and
such case or proceeding shall continue without dismissal or stay for a period of sixty (60) consecutive days, or an order granting the relief requested in such case or proceeding (including, but not limited to, an order for relief under such
federal bankruptcy laws) shall be entered. 
 (k) Failure of Agreements. (i) Any provision of this Agreement or any provision
of any other Loan Document shall for any reason cease to be valid and binding on the Borrower or any other Credit Party party thereto or any such Person shall so state in writing, (ii) any Loan Document shall for any reason cease to create a
valid and perfected first priority Lien on, or security interest in, any of the Collateral securing the Obligations purported to be covered thereby or (iii) any subordination provision in any document or instrument governing any Subordinated
Indebtedness or any Indebtedness incurred pursuant to Section 10.1(m), any subordination provision in any subordination agreement that relates to any Subordinated Indebtedness or any Indebtedness incurred pursuant to
Section 10.1(m) or any subordination provision in any guaranty by any Credit Party of any Subordinated Indebtedness or any Indebtedness incurred pursuant to Section 10.1(m) shall, in any case, cease to be in full force and

  
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 effect, or any Person shall contest in any manner the validity, binding nature or enforceability of any such
provision, in each of the foregoing clauses (i), (ii) and (iii), other than in accordance with the express terms hereof or thereof 
 (l) Termination Event. The occurrence of any of the following events: (i) the Borrower or any of its Subsidiaries or any of their ERISA Affiliates fails to make full payment when due of all amounts which, under the provisions of
any Pension Plan or Section 412 of the Code, the Borrower or any of its Subsidiaries or any of their ERISA Affiliates is required to pay as contributions thereto, (ii) the Borrower or any of its Subsidiaries fails to make full payment when
due of all amounts which, under the provisions of any Canadian Pension Plan or other Applicable Law, the Borrower or any of its Subsidiaries is required to pay as contributions thereto, (iii) an accumulated funding deficiency in excess of
$25,000,000 occurs or exists, whether or not waived, with respect to any Pension Plan or Canadian Pension Plan, (iv) a Termination Event, (v) the Borrower or any of its Subsidiaries or any of their ERISA Affiliates as employers under one
or more Multiemployer Plans makes a complete or partial withdrawal from any such Multiemployer Plan and the plan sponsor of such Multiemployer Plan notifies such withdrawing employer that such employer has incurred a withdrawal liability requiring
payments in an amount exceeding $25,000,000 or (vi) the Borrower or any of its Subsidiaries as employers under one or more Canadian Multiemployer Plans makes a complete or partial withdrawal from any such Canadian Multiemployer Plan and the
plan sponsor of such Canadian Multiemployer Plans notifies such withdrawing employer that such employer has incurred a withdrawal liability requiring payments in an amount exceeding $25,000,000. 
 (m) Judgment. A judgment or order for the payment of money which causes the aggregate amount of all such judgments or orders to exceed
(i) $10,000,000 in the aggregate (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) or (ii) $50,000,000 in the aggregate (regardless of insurance) shall be entered against the
Borrower or any of its Subsidiaries by any court and such judgment or order shall continue without having been paid and satisfied, discharged, vacated or stayed for a period of thirty (30) days after the entry thereof. 
 (n) Environmental. Any one or more Environmental Claims shall have been asserted against the Borrower or any of its Subsidiaries; the Borrower
or any of its Subsidiaries would be reasonable likely to incur liability as a result thereof; and such liability would be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect. 
 (o) Activities of Parent. The Parent shall engage in any business, operations or activities other than: 
 (i)(A) holding all of the Capital Stock of the Original Borrower, Newco and The Donohue Corporation, a Delaware corporation,
Abitibi-Consolidated Inc. or any of its subsidiaries; (B) holding certain preferred Capital Stock of Bowater Canadian Holdings Incorporated, a company organized under the laws of Nova Scotia, so long as promptly upon receipt thereof, the Parent
either (1) distributes such Capital Stock to the Original Borrower in connection with the Newco Transactions, (2) distributes such Capital Stock to another Credit Party or (3) pledges such Capital Stock as collateral support for the
Obligations in accordance with the Collateral Agreement, (C) the 
  
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 employment of management and
(D) activities reasonably complimentary and related to the foregoing (including, without limitation, investments in the Borrower); 
 (ii) guaranteeing the Obligations in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, pursuant to the Parent Guaranty Agreement; 
 (iii) guaranteeing or otherwise being obligated with respect to Indebtedness incurred pursuant to Section 10.1(m) so long
as (A) such guaranty obligation or Indebtedness is unsecured (provided, that in no event shall any such guaranty obligation or other Indebtedness restrict, limit or otherwise encumber the ability of the Parent to make distributions,
advances or otherwise invest in the Borrower) and (B) the Parent has executed and delivered the Parent Guaranty Agreement; 
 (iv) granting a security interest in its assets and properties (other than (A) the Capital Stock of the Borrower or (B) in connection with the Indebtedness permitted pursuant to the foregoing clause (iii) and the following
clause (viii)); provided that (x) the Administrative Agent is given a Lien on such assets and properties that is prior to such other Lien, or (y) to the extent that a Lien is granted in the stock of Abitibi-Consolidated Inc., then
the Administrative Agent shall be granted a Lien in the stock of the Original Borrower; 
 (v) granting a security interest
in the Capital Stock of the Borrower in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, to secure the Obligations; 
 (vi) engaging in non-revenue generating activities reasonably related to restructuring of the Subsidiaries of the Parent; provided, that in the case of any restructuring involving the Credit Parties or the
Canadian Credit Parties, the Administrative Agent and the Canadian Administrative Agent shall have received (A) an organizational chart of the Parent and its Subsidiaries after giving effect thereto and (B) a final summary of the steps
involved in any such restructuring; 
 (vii) guaranteeing obligations of Subsidiaries of the Parent or of the Abitibi
Entities to the extent that such obligations are unsecured, relate to indemnification obligations with respect to asset sales or trade obligations incurred in the ordinary course of business and do not constitute Indebtedness of such Subsidiary or
of such Abitibi Entity; and 
 (viii) to the extent not otherwise permitted hereunder and so long as the Borrower shall
have complied with the requirements set forth in Section 8.10(e)(i) and (ii)(A) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, incurring unsecured Indebtedness; provided, that:

 (A) the Administrative Agent and the Canadian Administrative Agent shall have received reasonably satisfactory written
evidence that the Borrower and its Subsidiaries would be in compliance with the covenants set forth in Article IX and Section 11.1(o)(ix) on a pro forma basis after giving effect to such Indebtedness; 
  
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 (B) no Default or Event of Default shall have occurred and be continuing or would be caused by
the issuance of such Indebtedness; 
 (C) no portion of such Indebtedness of the Parent may be recourse to any Credit Party
(except to the extent permitted pursuant to Section 10.1(d) or (m)) or any Canadian Credit Party (it being understood and agreed that no Credit Party (except to the extent permitted pursuant to Section 10.1(d) or
(m) or Canadian Credit Party shall have any obligation whatsoever to repay such Indebtedness or any other obligation related thereto); 
 (D) [Intentionally Omitted]; 
 (E) the Parent may not cancel, forgive or make any payment
(other than regularly scheduled interest payments) or prepayments on, or redeem or acquire for value (including, without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying
when due, but excluding payments at the scheduled maturity thereof) any such Indebtedness; provided, that the Parent may pay a cash settlement of any convertible Indebtedness so long as on the date of any such payment and after giving effect
thereto: 
 (1) no Default or Event of Default shall have occurred and be continuing; 
 (2) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX; 

(3) the Aggregate Credit Exposure shall not exceed $100,000,000; and 
 (4) the pro forma Consolidated Total Leverage Ratio shall not exceed 4.50 to 1.00; 
 (F) except to the extent such Indebtedness is guaranteed by a Credit Party (and therefore subject to Section 10.1(d) or
(m)), the proceeds of such Indebtedness are used solely for working capital and general corporate purposes of, or to repay outstanding Indebtedness of, the Parent and its Subsidiaries or any Abitibi Entity; and 
 (ix) holding a cash balance in the deposit, securities and other investment accounts of the Parent as of the end of any Business Day in
excess of $25,000,000, unless the amount of such balance that is in excess of $25,000,000 is as promptly as possible, but in no event later than one (1) Business Day, invested in the Borrower. 
 SECTION 11.2 Remedies. Upon the occurrence of an Event of Default, with the consent of the Required Agreement Lenders, the Administrative Agent
may, or upon the request of the Required Agreement Lenders, the Administrative Agent shall, by notice to the Borrower: 
  
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 (a) Acceleration; Termination of Facilities. Terminate the Commitment and declare the principal of and interest on the Loans and the
Reimbursement Obligations at the time outstanding, and all other amounts owed to the Lenders and to the Administrative Agent under this Agreement or any of the other Loan Documents (including, without limitation, all L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have presented or shall be entitled to present the documents required thereunder) and all other Obligations (other than Hedging Obligations), to be forthwith due and payable,
whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or the other Loan Documents to the
contrary notwithstanding, and terminate the Credit Facility and any right of the Borrower to request borrowings or Letters of Credit thereunder; provided, that upon the occurrence of an Event of Default specified in
Section 11.1(i) or (j), the Credit Facility shall be automatically terminated and all Obligations (other than Hedging Obligations) shall automatically become due and payable without presentment, demand, protest or other notice of
any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or in any other Loan Document to the contrary notwithstanding. 
 (b) Letters of Credit. With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to the preceding paragraph, the Borrower
shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held in such cash collateral account shall be applied by
the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay the other
Obligations on a pro rata basis. After all such Letters of Credit shall have expired or been fully drawn upon, the Reimbursement Obligation shall have been satisfied and all other Obligations shall have been paid in full, the balance,
if any, in such cash collateral account shall be returned to the Borrower. 
 (c) Rights of Collection. Exercise on behalf of the
Lenders all of its other rights and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all of the Borrower's Obligations. 
 SECTION 11.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not intended to be exhaustive
and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given
hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise. No delay or failure to take action on the part of the Administrative Agent or any Lender in exercising any right, power or
privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed
to be a waiver of any Event of Default. No course of dealing between the Borrower, the Administrative Agent and the Lenders or their respective agents or employees shall be effective to change, modify or discharge any provision of this Agreement or
any of the other Loan Documents or to constitute a waiver of any Event of Default. 
  
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 SECTION 11.4
Crediting of Payments and Proceeds. In the event that the Borrower shall fail to pay any of the Obligations when due or the Obligations have been accelerated pursuant to Section 11.2, all payments received by the Lenders upon the
Obligations and all net proceeds from the enforcement of the Obligations shall be applied: 
 First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees, payable to the Administrative Agent in its capacity as such and each Issuing Lender in its capacity as such (ratably among the Administrative Agent
and each Issuing Lender in proportion to the respective amounts described in this clause First payable to them); 
 Second,
to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders, including attorney fees (ratably among the Lenders in proportion to the respective amounts
described in this clause Second payable to them); 
 Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans and Reimbursement Obligations (including any accrued and unpaid interest thereon) (ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them);

 Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and Reimbursement Obligations
(ratably among the Lenders in proportion to the respective amounts described in this clause Fourth held by them); 
 Fifth,
to the Administrative Agent for the account of each Issuing Lender, to cash collateralize any L/C Obligations then outstanding (ratably among the Issuing Lenders in proportion to the respective amounts described in this clause Fifth payable
to them); 
 Sixth, to the payment of that portion of the Obligations constituting Hedging Obligations (including any termination
payments and any accrued and unpaid interest thereon) (ratably among the Secured Parties providing the Hedging Agreements giving rise to such Hedging Obligations in proportion to the respective amounts described in this clause Sixth payable
to them); and 
 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Applicable Law. 
 SECTION 11.5 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of
the Loans, L/C Obligations and all other Obligations that are owing and 
  
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 unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 3.3, 4.3 and 13.3) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender
to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3, 4.3 and 13.3. 
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 ARTICLE XII 
 THE ADMINISTRATIVE AGENT

 SECTION 12.1 Appointment and Authority. Each of the Lenders and each of the Issuing Lenders hereby irrevocably appoints Wachovia
to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the
terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lenders, and neither the Borrower
nor any of its Subsidiaries shall have rights as a third party beneficiary of any of such provisions. 
 SECTION 12.2 Rights as a
Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "Lender"
or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent
hereunder and without any duty to account therefor to the Lenders. 
  
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 SECTION 12.3 Exculpatory
Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders or Required Agreement Lenders, as applicable (or such other number or percentage of the Lenders
as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or Applicable Law; and 
 (c) shall not, except as expressly set forth herein and in
the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Required Lenders or Required Agreement Lenders, as applicable (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Section 13.2 and Section 11.2) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by
final nonappealable judgment. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower, a Lender or an Issuing Lender in
accordance with Section 13.1. In the event that the Administrative Agent receives such a notice, it shall promptly give notice thereof to the Lenders and the Issuing Lenders. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other
agreement, instrument or document or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 SECTION 12.4 Reliance by the Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be

  
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 genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a
Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the applicable Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or such
Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 SECTION 12.5 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and
powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
  
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 SECTION 12.6 Resignation of Administrative Agent. 
 (a) The Administrative Agent may at any time give notice of its resignation to the Lenders, each Issuing Lender and the Borrower. Upon receipt of any such notice of resignation, the Required Agreement Lenders shall have
the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed
by the Required Agreement Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the
Issuing Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then
such resignation shall nonetheless become effective in accordance with such notice and (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of any Lender or any Issuing Lender under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a
successor Administrative Agent is appointed) and (ii) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each Issuing Lender directly,
until such time as the Required Agreement Lenders appoint a successor Administrative Agent as provided for above in this paragraph. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other
Loan Documents (if not already discharged therefrom as provided above in this paragraph). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 13.3 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent. 
 (b) Any resignation by Wachovia as Administrative Agent pursuant to this Section shall also constitute its resignation as an Issuing Lender and the
Swingline Lender. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender and
Swingline Lender, (ii) the retiring Issuing Lender and Swingline Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (iii) the successor Issuing Lender shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring Issuing Lender to effectively assume the obligations of the retiring Issuing
Lender with respect to such Letters of Credit. 
  
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 SECTION 12.7 Non-Reliance on Administrative Agent and
Other Lenders. Each Lender and each Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and each Issuing Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender
or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder. 
 SECTION 12.8 No Other Duties, etc. Anything herein to
the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, book manager, lead manager, arranger, lead arranger or co-arranger listed on the cover page or signature pages hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Lender hereunder. 
 SECTION 12.9 Collateral and Guaranty Matters. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion,

 (a) to release any Lien on any Collateral granted to or held by the Administrative Agent, for the ratable benefit of the Secured
Parties, under any Loan Document (i) upon repayment of the outstanding principal of and all accrued interest on the Loans and Reimbursement Obligations, payment of all outstanding fees and expenses hereunder, the termination of the Commitment
and the expiration or termination of all Letters of Credit, (ii) that is sold or to be sold or otherwise transferred as part of or in connection with any sale or transfer permitted hereunder or under any other Loan Document, or
(iii) subject to Section 13.2, if approved, authorized or ratified in writing by the Required Agreement Lenders; 
 (b) to
subordinate or release any Lien on any Collateral granted to or held by the Administrative Agent under any Loan Document to the holder of any Permitted Lien; and 
 (c) to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement, the Collateral Agreement and any other Loan Documents if such Person ceases to be a Subsidiary as a result of a
transaction(s) permitted hereunder. 
 Upon request by the Administrative Agent at any time, the Required Agreement Lenders will confirm in writing the
Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement pursuant to this Section.

  
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 ARTICLE XIII 
 MISCELLANEOUS 
 SECTION 13.1 Notices. 
 (a) Method of Communication. Except as otherwise provided in this Agreement, all notices and communications hereunder shall be in writing (for
purposes hereof, the term "writing" shall include information in electronic format such as electronic mail and internet web pages), or by telephone subsequently confirmed in writing. Any notice shall be effective if delivered by hand delivery or
sent via electronic mail, posting on an internet web page, telecopy, recognized overnight courier service or certified mail, return receipt requested, and shall be presumed to be received by a party hereto (i) on the date of delivery if delivered by
hand or sent by electronic mail, posting on an internet web page, telecopy, (ii) on the next Business Day if sent by recognized overnight courier service and (iii) on the third (3rd) Business Day following the date sent by certified mail, return
receipt requested. A telephonic notice to the Administrative Agent as understood by the Administrative Agent will be deemed to be the controlling and proper notice in the event of a discrepancy with or failure to receive a confirming written notice.

 (b) Addresses for Notices. Notices to any party shall be sent to it at the following addresses, or any other address as to which
all the other parties are notified in writing. 
  

			
	If to the Borrower:	  	Bowater Incorporated
		  	55 East Camperdown Way
		  	Greenville, SC 29602-1028
		  	Attention: Treasurer
		  	Telephone No.: (864) 282-9413
		  	Telecopy No.: (864) 282-9219
		
	With copies to:	  	Hazen H. Dempster
		  	Troutman Sanders LLP
		  	Suite 5200
		  	600 Peachtree Street, N.E.
		  	Atlanta, Georgia 30308-2216
		  	Telephone No.: (404) 885-3126
		  	Telecopy No.: (404) 962-6544
		
	If to Wachovia as	  	Wachovia Bank, National Association
	Administrative Agent:	  	NC0680
		  	1525 West W. T. Harris Blvd.
		  	Charlotte, North Carolina 28262
		  	Attention: Syndication Agency Services
		  	Telephone No.: (704) 590-2703
		  	Telecopy No.: (704) 590-3481
		
	If to any Lender:	  	To the address set forth on the Register

  
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 (c) Administrative Agent's Office. The Administrative Agent hereby designates its office located at the address set forth above, or any subsequent office which shall have been specified for such purpose by written notice to the
Borrower and Lenders, as the Administrative Agent's Office referred to herein, to which payments due are to be made and at which Loans will be disbursed and Letters of Credit requested. 
 SECTION 13.2 Amendments, Waivers and Consents. Except as set forth below or as specifically provided in any Loan Document, any term, covenant,
agreement or condition of this Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any consent given by the Lenders, if, but only if, (a) in the case of an amendment, waiver or consent for which a
substantially similar corresponding amendment, waiver or consent with regard to the Canadian Credit Agreement will be made effective thereunder contemporaneously, such amendment, waiver or consent is in writing signed by the Required Lenders (or by
the Administrative Agent with the consent of the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the Borrower and (b) in the case of any other amendment, waiver or consent specifically
impacting only this Agreement and the other Loan Documents, such amendment, waiver or consent is in writing signed by the Required Agreement Lenders (or by the Administrative Agent with the consent of the Required Agreement Lenders) and delivered to
the Administrative Agent and, in the case of an amendment, signed by the Borrower; provided, that no amendment, waiver or consent shall: 
 (a) waive any condition set forth in Section 5.2 without the written consent of each Lender directly affected thereby; 
 (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 11.2) or the amount of Loans of any Lender without the written consent of such Lender; 
 (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the
Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, that only the consent of the Required Lenders shall be necessary in order to waive (in whole
or in part) any prepayment required pursuant to Section 8.2(b). 
 (d) reduce the principal of, or the rate of interest
specified herein on, any Loan or Reimbursement Obligation, or (subject to clause (iv) of the second proviso to this Section) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby; provided that only the consent of the Required Agreement Lenders shall be necessary to waive any obligation of the Borrower to pay interest at the rate set forth in Section 4.1(c) during the continuance
of an Event of Default; 
 (e) change Section 4.4 or Section 11.4 in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each Lender directly affected thereby; 
  
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 (f) change any provision of this Section or the definitions of "Required Lenders" or "Required Agreement Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any
rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender and each Canadian Lender directly affected thereby; 
 (g) increase the percentage specified in the definition of "Asset Coverage Amount"; reduce or eliminate any of the Indebtedness specified in part
(b) of the definition of "Consolidated Total Senior Secured Indebtedness" in determining the Borrowing Limit; or add additional categories or types of assets to the definition of "Coverage Assets", in each case without the written consent of
each Lender directly affected thereby; 
 (h) release all of the Guarantors or release Guarantors comprising substantially all of the
credit support for the Obligations, in either case, from any Guaranty Agreement (other than as authorized in Section 12.9), without the written consent of each Lender; 
 (i) release all or substantially all of the Collateral or release any Security Document (other than as authorized in Section 12.9 or as
otherwise specifically permitted or contemplated in this Agreement or the applicable Security Document) without the written consent of each Lender; or 
 (j) change Article XI of the Canadian Credit Agreement without the written consent of each Lender; 
 (k) add as Collateral any assets of any Person that is not organized under the laws of the United States or any state thereof without the written consent of the Canadian Administrative Agent and the Canadian Required Agreement Lenders (it
being understood that under the terms of the Canadian Credit Agreement a vote of the Administrative Agent and the Required Agreement Lenders shall be required to add as Collateral for the Canadian Credit Facility any assets of any Person that is not
organized under the laws of Canada or any province thereof); or 
 (l) join as a Credit Party any Person that is not organized under the
laws of the United States or any state thereof without the written consent of the Canadian Administrative Agent and the Canadian Required Agreement Lenders (it being understood that under the terms of the Canadian Credit Agreement a vote of the
Administrative Agent and the Required Agreement Lenders shall be required to join as a Canadian Credit Party any Person that is not organized under the laws of Canada or any province thereof); 
 provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the applicable Issuing Lender in addition to the Lenders
required above, affect the rights or duties of such Issuing Lender under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in
writing and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or duties of the Swingline Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights or 
  
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 privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein,
no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. 
 SECTION 13.3 Expenses; Indemnity. 
 (a) Costs and Expenses. The Borrower and the other Credit Parties, jointly and severally, shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other
Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by each
Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, any Lender or any Issuing
Lender (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or any Issuing Lender), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit. 
 (b) Indemnification. The Borrower and the other Credit Parties shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and each Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "Indemnitee") against, and hold each Indemnitee harmless from, any
and all losses, claims (including, without limitation, any Environmental Claims or civil penalties or fines assessed by OFAC), damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Credit Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or
thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Claim related in any way to the Borrower or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other
theory, whether brought by a third party or by the Borrower or any other Credit Party, and regardless of whether any Indemnitee is a party thereto, or (v) any claim (including, without limitation, any Environmental Claims or civil penalties or
fines assessed by OFAC), 
  
 113 
  

 investigation, litigation or other proceeding (whether or not the
Administrative Agent or any Lender is a party thereto) and the prosecution and defense thereof, arising out of or in any way connected with the Loans, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby, including without limitation, reasonable attorneys and consultant's fees, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (x) 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 or (y) result
from a claim brought by the Borrower or any other Credit Party against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if the Borrower or such Credit Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by
Lenders. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under clause (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), any Issuing Lender
or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), such Issuing Lender or such Related Party, as the case may be, such Lender's Commitment Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Administrative Agent (or any such sub-agent) or such Issuing Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or such
Issuing Lender in connection with such capacity. The obligations of the Lenders under this clause (c) are subject to the provisions of Section 4.7. 
 (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by Applicable Law, the Borrower and each other Credit Party shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in clause (b) above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby. 
 (e) Payments. All amounts due under this Section shall be payable promptly after demand therefor.

 SECTION 13.4 Right of Set-off. If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Lender,
the Swingline Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand,

  
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 provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time
owing by such Lender, such Issuing Lender, the Swingline Lender or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or
hereafter existing under this Agreement or any other Loan Document to such Lender, such Issuing Lender or the Swingline Lender, irrespective of whether or not such Lender, such Issuing Lender or the Swingline Lender shall have made any demand under
this Agreement or any other Loan Document and although such obligations of the Borrower or such Credit Party may be contingent or unmatured or are owed to a branch or office of such Lender, such Issuing Lender or the Swingline Lender different from
the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, each Issuing Lender, the Swingline Lender and their respective Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender, such Issuing Lender, the Swingline Lender or their respective Affiliates may have. Each Lender, each Issuing Lender and the Swingline Lender agrees to notify the Borrower and the Administrative
Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 SECTION 13.5 Governing Law. 
 (a)
Governing Law. This Agreement and the other Loan Documents, unless expressly set forth therein, shall be governed by, and construed in accordance with, the law of the State of New York, without reference to the conflicts of law principles
thereof. 
 (b) Submission to Jurisdiction. The Borrower and each other Credit Party irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United States District Court for the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto 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 court or, to the fullest extent permitted by Applicable 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 or in any other Loan Document shall affect any right that the Administrative Agent,
any Lender or any Issuing Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or any other Credit Party or its properties in the courts of any jurisdiction.

 (c) Waiver of Venue. The Borrower and each other Credit Party irrevocably and unconditionally waives, to the fullest extent
permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of
this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 115 
  

 (d) Service of Process. Each party hereto irrevocably consents to service of process in the manner provided
for notices in Section 13.1. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law. 
 SECTION 13.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 
 SECTION 13.7 Reversal of Payments. To the extent the Borrower makes a payment or payments to the Administrative Agent for the ratable benefit of
the Lenders or the Administrative Agent receives any payment or proceeds of the Collateral which payments or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid
to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds repaid, the Obligations or part thereof intended to be satisfied shall be
revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative Agent. 
 SECTION
13.8 Injunctive Relief; Punitive Damages. 
 (a) The Borrower recognizes that, in the event the Borrower fails to perform, observe
or discharge any of its obligations or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Lenders. Therefore, the Borrower agrees that the Lenders, at the Lenders' option, shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving actual damages. 
 (b) The Administrative Agent, the Lenders
and the Borrower (on behalf of itself and the other Credit Parties) hereby agree that no such Person shall have a remedy of punitive or exemplary damages against any other party to a Loan Document and each such Person hereby waives any right or
claim to punitive or exemplary damages that they may now have or may arise in the future in connection with any Dispute, whether such Dispute is resolved through arbitration or judicially. 
 SECTION 13.9 Accounting Matters. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth
in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the 
  
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 Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) the Borrower shall provide
to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and
after giving effect to such change in GAAP. 
 SECTION 13.10 Successors and Assigns; Participations. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of
participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that 
 (i) except in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the
applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered
to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless (A) such assignment is made to an existing Lender, to an Affiliate thereof, or to an
Approved Fund, in which case no minimum amount shall apply, or (B) each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consent (each such consent not to be
unreasonably withheld or delayed); 
  
 117 
  

 (ii) each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned; 
 (iii)(A) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment in respect of the Credit Facility if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender, (B) the consent of each Issuing Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding) and (C) the consent of the
Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Credit Facility; and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 for each assignment, and the
Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and
recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to
the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Sections 4.8, 4.9, 4.10, 4.11 and 13.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (d) of this Section. 
 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender may at any time, without
the consent of, or notice to, the Borrower and the Administrative Agent (except that notice shall be provided to the Borrower 
  
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 and the Administrative Agent with respect to any participations to a Person that would be a Foreign Lender), sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the
Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver or modification described in Section 13.2 that directly affects such Participant. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 4.8, 4.9, 4.10 and 4.11 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 13.4 as though it were a Lender, provided such Participant agrees to be subject to Section 4.6 as though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Sections 4.10 and
4.11 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower's prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 4.11 unless (i) the Borrower is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 4.11(e) as though it were a Lender and (ii) the applicable Lender shall provide the Borrower with satisfactory evidence that the participation is in registered form and shall
permit the Borrower to review such register as reasonably needed for the Borrower to comply with its obligations under Applicable Laws. 
 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 SECTION 13.11 Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by, 
  
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 or required to be disclosed to, any rating agency, or regulatory or similar authority (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this
Agreement or under any other Loan Document (or any Hedging Agreement with a Lender or the Administrative Agent) or any action or proceeding relating to this Agreement or any other Loan Document (or any Hedging Agreement with a Lender or the
Administrative Agent) or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any purchasing Lender, proposed purchasing Lender,
Participant or proposed Participant, or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (h) to
Gold Sheets and other similar bank trade publications, such information to consist of deal terms and other information customarily found in such publications, or (i) to the extent such Information (x) becomes publicly available
other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower or (j) to governmental regulatory authorities in
connection with any regulatory examination of the Administrative Agent or any Lender or in accordance with the Administrative Agent's or any Lender's regulatory compliance policy if the Administrative Agent or such Lender deems necessary for the
mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries or affiliates. For purposes of this Section, "Information" means all information received from any Credit Party relating to
any Credit Party or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Credit Party; provided that, in the case
of information received from a Credit Party after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
 SECTION 13.12 Performance of Duties. Each of the Credit Party's obligations under this Agreement and each of the other Loan Documents shall be
performed by such Credit Party at its sole cost and expense. 
 SECTION 13.13 All Powers Coupled with Interest. All powers of
attorney and other authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other Loan Documents shall be deemed
coupled with an interest and shall be irrevocable so long as any of the Obligations remain unpaid or unsatisfied, any of the Commitment remains in effect or the Credit Facility has not been terminated. 
 SECTION 13.14 Survival of Indemnities. Notwithstanding any termination of this Agreement, the indemnities to which the Administrative Agent and
the Lenders are entitled under the provisions of this Article XIII and any other provision of this Agreement and the other Loan Documents shall continue in full force and effect and shall protect the Administrative Agent and the Lenders
against events arising after such termination as well as before. 
  
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 SECTION 13.15 Titles and
Captions. Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement. 
 SECTION 13.16 Severability of Provisions. Any provision of this Agreement or any other Loan Document which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or
enforceability of such provision in any other jurisdiction. 
 SECTION 13.17 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together
shall constitute one and the same agreement. 
 SECTION 13.18 Integration. This Agreement, together with the other Loan Documents,
comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof. 
 SECTION 13.19 Term of Agreement. This Agreement shall remain in effect from the Closing Date through and
including the date upon which all Obligations arising hereunder or under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full and the Commitment has been terminated. No termination of this Agreement shall
affect the rights and obligations of the parties hereto arising prior to such termination or in respect of any provision of this Agreement which survives such termination. 
 SECTION 13.20 Advice of Counsel, No Strict Construction. Each of the parties represents to each other party hereto that it has discussed this
Agreement with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 SECTION 13.21 USA Patriot Act. The Administrative Agent and each Lender hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it is required to obtain, verify and record information that identifies the Borrower and each Guarantor, which information includes the name
and address of each Borrower and each Guarantor and other information that will allow such Lender to identify such Borrower or Guarantor in accordance with the Act. 
  
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 SECTION 13.22 Inconsistencies with Other Documents; Independent Effect of Covenants. 
 (a) In the event there is a conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall control;
provided that any provision of the Security Documents which imposes additional burdens on the Borrower or its Subsidiaries or further restricts the rights of the Borrower or its Subsidiaries or gives the Administrative Agent or Lenders
additional rights shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full force and effect. 
 (b) The Borrower expressly acknowledges and agrees that each covenant contained in Articles VIII, IX, or X hereof shall be given independent effect. Accordingly, the Borrower shall not engage in any transaction or other
act otherwise permitted under any covenant contained in Articles VIII, IX, or X if, before or after giving effect to such transaction or act, the Borrower shall or would be in breach of any other covenant contained in
Articles VIII, IX, or X. 
 SECTION 13.23 No Novation. The execution and delivery of this Agreement shall not
constitute a novation of any indebtedness or other obligations owing to the Lenders or the Administrative Agent based on facts or events occurring or existing prior to the execution and delivery of this Agreement. 
  
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   Schedule l.l (c) To Each Credit Agreement  
     
  
    
   
 
  QUICTCLAIM DEED  
     

	  STATE OF GEORGIA   )  
	  LAND RECORD  

	  
	  U. S. Goverment - Coosa River Newsprint  

	  COUNTY OF FULTON )  
	  February 16, 1951  

     
                         
  
     
     
  KNOW ALL BY THESE PRESENTS: That the United States of America, acting by and
through the administrator or' General Services, under and pursuant to the powers and authority contained in the provisions of the Federal Property and Administrative services Act of 1949 (63 Stat. 377), the Surplus Property Act of 1944 (58 Stat.
765) as amended, and regulations and orders promulgated thereunder, (to be now and hereinafter referred to as "Grantror"), for and in consideration of the sum of FOUR THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($$4,500.00) to it in hand paid by Coosa
River Newsprint Company, A corporation created, existing and doing business under and by virtue of the laws of the State of Alabama, with its domicile and general office at Coosa Pines, Talladega County, Alabama, (to be now and hereinafter . known
as "Grantor"), the receipt whereof is hereby acknowledged, does hereby ramise, release, quitclaim and convey unto the said Grantee, its successors and assigns, under and subject to the exceptions, conditions, restrictions and reservation, and
reservation of 'fissionable materials and rights, hereinafter expressed and set out, all right, title, interest and claim in and to two tracts or parcels of land, containing a total of 95.80 acres, more or less, situate within the reservation of the
former Alabama Ordnance Works, and lying and being in the County of Talladega, in the State of Alabama, and more particularly described as follows, to-wit:-  
   
 
  20.10 acres, more or less, in the East half of the Northwest quarter of Section 8, Township 20 South, Range 3 East,
Huntville, Maridian, and describe as follows :  
     
  Beginning at a point where the line of ordinate E 4 000 of the co-ordinate systems established for Alabama Ordnance Works intersects the West
right-on-way line of "A" Street, the co-ordinate of said point being  
  
   
    
  1 1,207.0, E 4000.0, of said Co-ordinate System; thence 31o 30',, E along said West right-of-way line 28,6 feet; thence southerly along said West
right-on-way line which is a circular curve to the right 1830.3 feet, said curve having a radius of 1729.28 feet and a long chord which. bears S 18o 15' 1729.8 feet; thence S 15o 001' W along said West right-of-way line 200 feet more or less to the
center of Talladega Creek; thence westerly along the center line of Talladega Creek 320 feet more or less to aforesaid line of ordinate E 4000, thence North along said line of ordinate E 4000, 1810 feet more or less to the point of beginning.
 
     
 
Less and except a perpetual easement reserved to the Government to use, operate, maintain, and improve a certain drainage ditch within a right-of-way 40 feet wide and lying 20 feet on each side of the following described center line:
 
     
 
Beginning at the point on the West boundary of afore-said tract where the center line of an existing ditch intersects said boundary, said point being 440 feet more or less South of the North corner of aforesaid tract; thence
southeasterly and subsequently southerly along the center line of said ditch 1500 feet more or less to Talladega Creek; and containing 1.4.acree more or less.  
     
  75.70 acres,
more or less, in the West half of Section 8, Township 23 South, Range 3 East, Huntsville Meridian, and describer as:  
     
  Beginning at a point where the South line of the property of the Alabama Ordnance Works intersects the
West right-of-way line or "A" Street, the co-ordinates of said point, being N 6494.0, E 5060.1, with reference to the Co-ordinate System established for Alabama Ordnance Works; thence westerly along said South line of property 980 feet
 more or less to the East bank of Coosa River; thence Northwesterly along said3100 feet more or less to the center of Talladega Creek; thence gesterly along the center line or said creek 166 feet more or less to the aforesaid west 
right-of-way line of "A" Street; these S 15o 00 W along said right-of-way line 417.1 feet more or less to the polar of curve; thence southerly along said right-of-way which is a circular curve to the feet 1127.1 feet, said curve having a radius of
1697.28 feet and a long chord which bears S 4o 04' E 1108.9 feet; thence S23o 08' E  along said right-of-way line 1469.1 feet to the point of beginning.  
     
  The above
described property' being comprised of portions of Tracts No. 11, 13, 14 and 15, of the Alabama Ordnance Works Military Reservation, said Tract No. 11 being acquired in fee by the United states of America by purchase from Mattie Bowen, Trustee, and
Tracts Nos. 13, 14 and 15 being acquired in fee by the United States of America by Declaration of Taking from, respectively, Margaret Hagan, J. J. Hightower, at al and Ada Keith, et al.  
     
  This conveyance is made subject,
however, to existing assessments for roads, highways, railroads, pipelines and public  
  
  -2-  
  
    
  utilities.  
     
  There is reserved to the
United States of America the permanent right in aid of any Government project or improvement of navigation on the Coosa River, to flood and impound water upon all of the above described lands lying below elevation 408 feet above mean see, level as
heretofore established by the United States Geodetic Survey.  
     
  And further excepting from this conveyance and reserving to the party of the first part, in accordance with Executive Order 9908, approved on December 5, 1947 (12 F. R. 8223), all uranium, thorium, and all other materials determined
pursuant to Section 5 (b)(l) of the Atomic Energy Act of 1946 (60 Stat. 761), to be peculiarly essential to the production of fissionable materials, contained in whatever concentration in deposits in the lad covered by this instrument which are
hereby reserved for the use of the United States, together with the right of the United Statue through its authorized agents or representatives at any time to enter upon the land and prospect for, mine, and remove the same, making just compensation
for any damage or injury occasioned there-by. However, such land may be used, and any rights otherwise acquired by this disposition may be exercised, as if no reservation of such materials had been made; except that, when such use results in the
extraction of any such material from the land in quantities which may not be transferred or delivered without a licence under the Atomic Energy Act of 1946, an it now exists or may hereafter be emended, such material shall be the property of the
United States Atomic Energy Commission, and the Commission may require delivery of such material to it by any possessor thereof after such material has been separated as such from the ores in which it was contained. If the Commission requires the
delivery of such material to it, it shall pay to the person mining or extracting the same, or to such other person as the Commission determines to be entitled thereto, such sums, including profits, as the Commission deems fair and  
     
     
      
     
  -3-  

 
 
   
    
  th e discovery, mining, development, production, extraction and other services performed with respect to such material
prior to such delivery, but such payment shall not include any amount on account of the value of such material before removal from its place of deposit in nature. If the Commission does not require delivery of such material to it, the reservation
hereby made shall be of no further force or effect.  
     
                  State property was duly determine to be surplus and was assigned for disposal, pursuant to the provisions of the aforementioned laws, regulations and
orders.  
     
                  To HAVE AND TO HOLD the above described property subject, however, to the exceptions, conditions, restrictions and reservations of fissionable
materials and rights, herein expressed and set out, unto the Grantee, its successors and assigns, to their own use and behoof forever.  
     
                  IN WITNESS WHEREOF, the Grantor has caused these presents to be executed by Lloyd
Gensel, eputy Regional Director, Public Buildings Service, General Servcies Administration, Region IV, Atlanta, Georgia, this the 16th day of February, 1951.  
     
                                          
                                         
                                         
                                     UNITED STATES OF AMERICA 

                                          
                                         
                                         
                                     Acting by and through 

                                          
                                         
                                         
                                     ADMINISTRATION OF GENERAL
SERVICES  
     
  WITNESS;  
     
                                          
                                         
                                         
                                     By: ________________________
 
  _____________________                            
                                         
                                         
                  LLOYD GENSEL  
                                          
                                         
                                         
                                         
        Deputy Regional Director  
                                          
                                         
                                         
                                         
        Public Buildings Service  
  _____________________             
                                         
                                         
                    General Services Administration  
                                          
             
                                         
                                         
                             Region IV, Atlanta, Georgia  
     
     
     
     
  -4- 

  
 
   
    

	  STATE OF GEORGIA   )  
	 
	  
	 
	  COUNTY OF FULTON )  
	 

     
                  I, EVA W. FULLER, a Notary Public, in and for the above mentioned county and state, herby certify that LLOYD GENSEL, whose name as Deputy Regional
Director, Public Buildings Service, General Services Administration, Region IV, Atlanta, Georgia, acting for the United states of America, is signed to the foregoing instrument of conveyance, and who is known to me, acknowledged before me on this
day that, being informed to  the contents of the foregoing instrument of conveyance, he, in his capacity as such Deputy Regional Director, Public Buildings Service, General Services Administration, Region IV, Atlanta, Georgia, and with full
authority so to do, executed the same voluntarily on the day the same bears date.  
     
 
                Given under my hand and official seal, this the 16th day of February, 1951.  
     
     
                                          
                            _____________________  
                                          
                                  EVA W. FULLER  
                                          
                                     Notary Public  
                                          
                            Georgia State at Large  
                                  
                      My Commission expires April 10, 1954  
  
  
     

	  STATE OF ALABAMA   )  
	 
	  
	  OFFICE OF PROBATE JUDGE  

	  TALLAGEDA COUNTY )  
	 

                       
  
     
                  I Hereby certified that this ___________ was filed in my office for record on the ______ day of ____________ , 19___, at ____ o'clock p.m., and was
duly recorded at the ____ day of _____, 10___ in Book _____ at Page _____ and that the tax of ______ has been paid hereon.  
     
     
                                          
                       ____________________________  
                                          
                                      JUDGE OF PROBATE

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