Document:

Pledge and Security Agreement

 Exhibit 10.28 
 Explanatory Note: The body of this document was previously filed with the SEC, as indicated in the Exhibit Index. What follows are additional schedules and/or exhibits to that document that were
not included in the original filing. 
  

 Schedule 1 
 Notice Addresses 

 NOTICE ADDRESSES 
 Cellu Paper Holdings, Inc. 
 3442 Francis Road, Suite 220 
 Alpharetta, Georgia 30004 
 Attn: Dianne Scheu, CFO

 Cellu Tissue Holdings, Inc. 
 3440 Francis Road 
 Alpharetta, Georgia 30004 
 Attn: Dianne Scheu, CFO 
 Cellu Tissue LLC 
 2 Forbes Street 
 East Hartford, Connecticut 06108

 Attn: Dianne Scheu, CFO 
 Cellu
Tissue Corporation – Natural Dam 
 4921 Route 58 North 
 Gouverneur, New York 13642 
 Attn: Dianne Scheu, CFO 
 Cellu Tissue Corporation – Neenah 
 249
North Lake Street 
 Neenah, Wisconsin 54956 
 Attn: Dianne Scheu, CFO 
 Coastal Paper Company 
 1321 South Magnolia Drive 
 Wiggins, Mississippi 39577 
 Attn: Dianne Scheu, CFO 
 Van Paper Company 

 1321 South Magnolia 
 Drive Wiggins,
Mississippi 39577 
 Attn: Dianne Scheu, CFO 
 Van Timber Company 
 1321 South Magnolia Drive 
 Wiggins, Mississippi 39577 
 Attn: Dianne Scheu, CFO 
  

 1 

 Menominee Acquisition Corporation 
 144 First Street 
 Menominee, Michigan 49858 
 Attn: Dianne Scheu, CFO 
  

 2 

 Schedule 2 
 Investment Property 

 INVESTMENT PROPERTY 
 PLEDGED STOCK 
  

									
	 Grantor(s)
	  	 Issuer
	  	 Ownership Interest of
 Grantor
	  	Percentage of
Ownership
Interest
Pledged	  	Percentage
Issued and
Outstanding
	Cellu Paper Holdings, Inc.	  	Cellu Tissue Holdings, Inc.	  	100 common, $0.01 par value	  	100	  	100
	Cellu Tissue Holdings, Inc.	  	Cellu Tissue LLC	  	100% of membership interests	  	100	  	100
	Cellu Tissue Holdings, Inc.	  	Cellu Tissue Corporation – Natural Dam	  	1,000 Common Shares, $0.01 par	  	100	  	100
	Cellu Tissue Holdings, Inc,	  	Cellu Tissue Corporation – Neenah	  	700 Common Shares, $0.01par	  	100	  	100
	Van Paper Company	  	Coastal Paper Company	  	99% of partnership interests	  	100	  	99
	Van Timber Company	  	Coastal Paper Company	  	1% of partnership interests	  	100	  	1
	Cellu Tissue Holdings, Inc.	  	Interlake Acquisition Corporation Limited	  	1,000 Common Shares, no par	  	100	  	100
	Cellu Tissue Holdings, Inc.	  	Menominee Acquisition Corporation	  	1,000 Common Shares, $0.01 par	  	100	  	100
	Cellu Tissue Holdings, Inc.	  	Van Paper Company	  	10,000 Common Shares	  	100	  	100
	Cellu Tissue Holdings, Inc.	  	Van Timber Company	  	1,000 Common Shares	  	100	  	100

 PLEDGED NOTES 
 None 
  

 3 

 Schedule 3 
 Perfection Matters 

 PERFECTION MATTERS 
  

			
	 Grantor
	  	 Filing Office(s)

	Cellu Paper Holdings, Inc.	  	Delaware – Secretary of State
	Cellu Tissue Holdings, Inc.	  	Delaware – Secretary of State
	Cellu Tissue LLC	  	Delaware – Secretary of State
	Cellu Tissue Corporation – Natural Dam	  	Delaware – Secretary of State
	Cellu Tissue Corporation – Neenah	  	Delaware – Secretary of State
	Menominee Acquisition Corporation	  	Delaware – Secretary of State
	Van Paper Company	  	Mississippi – Secretary of State
	Van Timber Company	  	Mississippi – Secretary of State
	Coastal Paper Company	  	 Mississippi – Secretary of State
 Virginia – Secretary of State

  

 4 

 Schedule 4 
 Jurisdictions of Organization and 
 Chief Executive
Officer 

 JURISDICTIONS OF ORGANIZATION AND CHIEF EXECUTIVE OFFICES 
 Cellu Paper Holdings. Inc. 
 3442 Francis
Road, Suite 220 
 Alpharetta, Georgia 30004 
 Jurisdiction of Organization: Delaware 
 Organizational ID: 3425443 
 CelluTissue Holdings. Inc. 
 333 East River Drive 
 East Hartford, CT 06108 
 Jurisdiction of
Organization: Delaware 
 Organizational ID: 2293394 
 Cellu Tissue LLC 
 2 Forbes Street 
 East Hartford, CT 06108 
 Jurisdiction of
Organization: Delaware 
 Organizational ID: 2029001 
 Cellu Tissue Corporation – Natural Dam 
 4921 Route 58 North 
 Gouverneur, NY 13642 
 Jurisdiction of
Organization: Delaware 
 Organizational ID: 2863273 
 Cellu Tissue Corporation – Neenah 
 249 North Lake Street 
 Neenah, WI 54956 
 Jurisdiction of Organization:
Delaware 
 Organizational ID: 3522616 
  

 5 

 Coastal Paper Company 
 1321 South Magnolia Drive 
 Wiggins, MS 39577 
 Jurisdiction of Organization: Virginia 
 Organizational ID: N/A 
 Van Paper Company 
 1321 South Magnolia Drive 
 Wiggins, MS 39577 
 Jurisdiction of Organization: Mississippi 
 Organizational ID: 0580737 
 Van Timber Company 
 1321 South Magnolia Drive 
 Wiggins, MS 39577 
 Jurisdiction of Organization: Mississippi 
 Organizational ID: 0605033 
 Menominee Acquisition Corporation 
 144 First Street 
 Menominee, MI 49858 
 Jurisdiction of Organization: Delaware 
 Organizational ID: 2858864 
  

 6 

 Schedule 5 
 Inventory and Equipment Locations 

 INVENTORY AND EQUIPMENT LOCATIONS 
 Cellu Tissue LLC 
 2 Forbes Street

 East Hartford, CT 06108 
 Eastern
Park Warehouse 
 12 Eastern Park Road 
 East Hartford, CT 06108 
 C&M Warehouse 
 95 Leggett Street 
 East Hartford, CT 06108. 
 Cellu Tissue Corporation – Natural Dam 
 4921 Route 58 North 
 Gouverneur, NY 13842 
 Cellu Tissue Corporation – Neenah 
 249 North Lake Street 
 Neenah, WI 54956 
 Coastal Paper Company 

 1321 South Magnolia Drive 
 Wiggins,
MS 39577 
 John Fayard Warehouse 
 1
Fastway Lane 
 Gulf Port, MS 39503 
 Menominee Acquisition Corporation 
 144 First Street 
 Menominee, MI 49858 
  

 7 

 Schedule 6 
 Intellectual Property 

 INTELLECTUAL PROPERTY 
 Menominee Acquisition Corporation 
  

	1.	“WAXTEX”, Trademark Registration No. 1,618,760, registered October 23, 1990; International Class No. 16 for waxed paper.

 Cellu Tissue Corporation – Neenah 
  

	1.	“MAGIC SOFT”, Trademark Registration No. 2,080,681, registered July 22, 1997; International Class No. 16 for facial tissue.

  

	2.	“MAGIC SOFT”, Trademark Registration No. 2,022,635, registered December 10, 1996; International Class No. 16 for paper towels, paper napkins
and bathroom tissue. 

 Licenses 
  

	1.	Cellu Paper Holdings, Inc. and its subsidiaries have arrangements with customers where Cellu Paper Holdings, Inc. and its subsidiaries use third party intellectual
property to make products to customers’ specifications at which time such right ceases. 

  

	2.	Software License Agreement and Maintenance Agreement, dated April 30, 1997, between J.D. Edwards World Solutions Company and Cellu Tissue Corporation.

  

	3.	Software License Agreement and Maintenance Agreement, dated October 20, 1998, between J.D. Edwards World Solutions Company and Cellu Tissue Corporation, as amended
by Addendums dated November 30, 2002 and August 27, 2003, and as further supplemented by attachments dated November 20, 2002, May 30, 2003 and August 27, 2003. 

  

	4.	Cellu Paper Holdings, Inc. and its subsidiaries have commercial licenses to use the following software: 

 OS/400 
 Client
Access/400 
 DB2 and SQL Development Kit 
 Websphere Development Studio 
 Query/400 
 Performance Tools/400 
 World 
 OneWorld – Suite Based 
 Extol Integrator 
 Barcode400 
 FormsPlus/400 
 R-Forms for iSeries 
 Really Real Time GL Inquiry 
  

 8 

 Acrobat Standard Version 6 
 Adobe Illustrator CS 
 ADP Payroll 
 E-Time 
 AutoCad 
 AutoCad Lite 
 FAS Asset Accounting 
 Quality Window 4.5 
 Quality Window 5.0 
 CAPE Pack 
 RightFax 9.0 
 Softphone 
 BriteStore ArcServe Backup Version 11 
 Dameware Utilities 
 dcLink for Enterprise One Base Foundation 
 dcLink for Enterprise One Data Collection Logistics Suite 
 dcLink for Enterprise
One TCP/IP Users 
 TranPrint Additional Printer Seats 
 TranPrint Enterprise Printing License 
 TranServer License 
 RFSmart 
 Myttouch 
 Trackit
5.0 Server + CALS 
 What’s Up Gold Version 8.03 
 Exchange 2003 
 Exchange CALS 
 Frontpage 
 Live Comm Server 2003 
 Live Comm Server CAL’s 
 Office Pro 2003 
 Office Pro XP 
 Outlook 2002 
 Project 2002 
 Project 2003 
 Project 98 
 SQL CAL
2000 
 SQL Server 2000 
 SQL Server 7 
 Technet Plus CAL 
 Visio 2002 
 Visio
2003 
 Vstudio.NET Pro 2002 
 Windows 2000 Server 
 Windows 2003 Server 
 Windows CAL 2000 
 Windows Server CAL 
  

 9 

 Windows XP Pro Upgrade 
 MSDSpro PlusWeb 
 Netware 5.1 
 Novell Clients 
 Twin Client 
 ProTool Lite 
 LabelMatrix 
 Ghost
7.5 
 Symantec Antivirus Enterprise Edition 9.0 
 Symantec Client Security 2.0 
 EasyLabel 
 TOPS Pro 
 Backup
Exec for Novell Servers Version 8.5 
 Backup Exec for Windows Servers MS Exchange Agent Version 1 
 Backup Exec for Windows Servers Open File Option Version 10 
 Backup Exec for Windows Servers Version 10 
 Backup Exec for Windows Servers
Version 9 
  

 10 

 Schedule 8 
 Commercial Tort Claims 

 COMMERCIAL TORT CLAIMS 
 None 
  

 13 

 Annex I 
 Form of Assumption Agreement 

 FORM OF ASSUMPTION AGREEMENT 
 ASSUMPTION AGREEMENT, dated as of
                    , 200  , made by
                             (the “Additional Grantor”), in favor of JPMorgan
Chase Bank, N.A., as the US administrative agent (in such capacity, the “US Administrative Agent”) for the Secured Parties. All capitalized terms not defined herein shall have the meaning ascribed to them in the Security
Agreement referred to below. 
 WITNESSETH: 
 WHEREAS, Cellu Paper Holdings, Inc., Cellu Tissue Holdings, Inc., certain of its subsidiaries and the US Administrative Agent have entered into a Pledge and Security Agreement, dated as of June 12,
2006 (as amended, supplemented or otherwise modified from time to time, the “Security Agreement”); 
 WHEREAS, the Security Agreement requires the Additional Grantor to become a party to the Security Agreement; and 
 WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Security Agreement; 
 NOW, THEREFORE, IT IS AGREED: 
 1. Security Agreement. By executing and
delivering this Assumption Agreement, the Additional Grantor, as provided in Section 11.13 of the Security Agreement, hereby becomes a party to the Security Agreement as a Grantor thereunder with the same force and effect as if originally named
therein as a Grantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the information set forth
in the Schedules to the Security Agreement. The Additional Grantor hereby represents and warrants that each of the representations and warranties contained in Article V of the Security Agreement is true and correct on and as the date hereof (after
giving effect to this Assumption Agreement) as if made on and as of such date. 
 2. GOVERNING LAW. THIS ASSUMPTION
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written. 
  

			
	[ADDITIONAL GRANTOR]
		
	By:	 	 
		 	Name:
		 	Title:

 ANNEX 1-A 
 Supplement to Schedule 1 
 Supplement to Schedule 2 
 Supplement to Schedule 3 
 Supplement to Schedule 4 
 Supplement to Schedule 5 
 Supplement to Schedule 6 
 Supplement to Schedule 7 

 Annex 2 
 Form of Acknowledgement and Consent 

 FORM OF ACKNOWLEDGEMENT AND CONSENT 
 The undersigned hereby acknowledges receipt of a copy of the Pledge and Security Agreement dated as of June 12,2006 (the
“Security Agreement”), among the Grantors party thereto in favor of JPMorgan Chase Bank, N.A., as US Administrative Agent. The undersigned agrees for the benefit of the US Administrative Agent and the Secured Parties as follows:

 1. The undersigned will be bound by the terms of the Security Agreement and will comply with such terms insofar as such terms
are applicable to the undersigned. 
 2. The undersigned will notify the US Administrative Agent promptly in writing of the
occurrence of any of the events described in Section 5.6(a) of the Security Agreement. 
 3. The terms of Sections 6.3(c)
and 6.6 of the Security Agreement shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.6 of the Security Agreement 
  

			
	[NAME OF ISSUER]
		
	By:	 	 
		 	Name:
		 	Title:
	
	Address for Notices:
	
	Fax:

 Annex 3 
 Form of Deposit Account Control Agreement 

 FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENT 
 This DEPOSIT ACCOUNT CONTROL AGREEMENT is made this
                     day of             , 200   (this
“Agreement”) between and among [NAME OF GRANTOR] (the “Company”) the US Administrative Agent (as defined below) and [NAME OF BANK] (“Bank”). 
 Reference is made to account number
                     maintained with Bank by the Company, as [Borrower] [Loan Guarantor] into which funds are deposited from time to time (the
“Account”). The Company has entered into a Pledge and Security Agreement, dated as of June 12,2006 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Security
Agreement”), among Cellu Paper Holdings, Inc., Cell Tissue Holdings, Inc., certain of its subsidiaries, and JPMorgan Chase Bank, N.A., as US administrative agent for the Secured Parties referred to therein (in such capacity, the “US
Administrative Agent”! 
 Pursuant to the Security Agreement and related documents, the Company has
granted to the US Administrative Agent, for the benefit of the Secured Parties, a security interest in certain property of the Company, including, among other things, accounts, inventory and all proceeds thereof (the : “Collateral”). Payments with respect to the Collateral
are or hereafter may be made to the Account. 
 Bank, the Company and the US Administrative Agent are entering into this letter
agreement to perfect the security interest of the US Administrative Agent in the Account. 
 1. Control. The Company
hereby transfers to the US Administrative Agent control of the Account and all funds and other property on deposit therein. By executing this Agreement, Bank (i) agrees that Bank shall comply with instructions originated by the US
Administrative Agent directing disposition of the funds in the Account without further consent of the Company and (ii) acknowledges and agrees that the US Administrative Agent now has control of the Account, that all funds and other property on
deposit in the Account shall be transferred to the US Administrative Agent as provided herein, that the Account is being maintained by you for the benefit of the US Administrative Agent and that all amounts and other property therein are held by you
as custodian for the US Administrative Agent. [Notwithstanding anything to the contrary or any other agreement relating to the Account, the Account is and shall be maintained for the benefit of the US Administrative Agent, shall be entitled
“JPMORGAN CHASE BANK. N.A. – [INSERT NAME OF COMPANY] ACCOUNT” and shall be subject to written instructions only from an authorized officer of the US Administrative Agent] 
 2. Lock Box Matters. 
 (a) Service. Bank will provide the Company and the US Administrative Agent with a lockbox deposit service (the “Service”) by which Bank shall (i) furnish the Company and the
US Administrative Agent with a Post Office Box at [                    ] (the “Lockbox”). receive mail from the Lockbox,
deposit all cash, credit all wires and transfers, and process for collection, checks and any other items (collectively “Items”) received to the Account or another deposit account to be designated by the US Administrative Agent the
account designated solely by US Administrative Agent (irrespective of whether a Control Notice (as defined below) shall have been delivered), and (ii) provide the Company or the US Administrative Agent with reports on the Items received.

 (b) Applicable Documentation. Bank will provide the Company, and in addition, to US Administrative
Agent, upon the US Administrative Agent’s written request to Bank, with [deposit account agreements], terms and conditions, lockbox agreements and other standard documentation in effect from time to time with respect to the Service or the
Account provided in

 
connection therewith (the “Applicable Documentation”), which contains further information or procedures regarding the Service and the Account. The Company and the US
Administrative Agent will follow the procedures set forth in the Applicable Documentation (which Bank may revise from time to time) for using the Service and the Account 
 (c) Lockbox. Bank will rent the Lockbox in the name designated by the US Administrative Agent, but Bank or its
designated agent will have unrestricted and exclusive access to the Lockbox. 
 (d) Deposit: Endorsement.
Bank is authorized to collect and open all mail delivered to the Lockbox, and to deposit to the Account or process for collection all Items received, except: (i) Items which Bank has been instructed in writing [by the Company pursuant to
applicable processing agreements attached hereto and approved by the US Administrative Agent not to process]; (ii) Items which Bank believes should receive the special attention of the Company and the US Administrative Agent, including, without
limitation Items bearing the legend “Paid in Full” or words of similar impact; (iii) Items for which the Company is not the payee, unless the Company or the US Administrative Agent has provided proper authorization, to deposit or
process for collection such Items; and (iv) [any other matter or merchandise received]. Bank will not deposit or process for collection such excepted Items or other matters or merchandise, but will forward them to the US Administrative Agent,
absent written notice to the contrary from the US Administrative Agent. The Company [and the US Administrative Agent, jointly and severally,] shall be liable to Bank as general endorsers on all Items deposited or otherwise processed by Bank. Absent
gross negligence or willful misconduct, Bank assumes no liability for the inadvertent deposit or processing of Items excepted from deposit or processing under this Agreement. Bank assumes no liability for any matter or merchandise received through
the Post Office which are not depositable Items. 
 (e) Transfer to Account. On each business day, Bank
shall open the mail delivered to the Lockbox and deposit the checks and other Items contained therein into the Account. 
 (f) Foreign Items. Any foreign Items will be processed for collection pursuant to the US Administrative Agent’s instructions and Bank will credit the Account for Items processed for collection on the day funds are finally
collected, less all fees and charges. 
 3. Reports. Bank shall provide to the Company, and in addition, to the US
Administrative Agent, upon the US Administrative Agent’s written request to Bank, with a record of all Items deposited to the Account or processed for collection and Bank shall provide monthly statements to the US Administrative Agent and, upon
the US Administrative Agent’s written request, to the Company. 
 4. Instructions, (a) Prior to the delivery to
Bank of a written notice from the US Administrative Agent substantially in the form of Exhibit A hereto (a “Control Notice”): 
  

	 	(i)	Bank is hereby authorized to comply with withdrawal, delivery or other instructions issued with respect to the Lockbox (collectively, “Lockbox
Instructions”) by the Company to Bank, including, without limitation, with respect to routine administrative matters, and the right and ability to access, pick up, withdraw or transfer checks or other Items from the Lockbox; and

  

	 	(ii)	Bank is hereby authorized to transfer to the Company, in same day funds, on each business day, the entire balance in the Account to the following account:

  

 2 

 ABA Number:
                                         
            
 [Insert Name and Address of the Company’s Bank
Account] 
 Account Name:
                                         
            
 Account Number:
                                         
        
 Reference:
                                         
                    
 Attention:
                                         
                    
 or to
such other deposit accounts or otherwise as the Company may from time to time designate in writing. 
 (b) From
and after the delivery to Bank of a Control Notice and until such time as such Control Notice has been withdrawn or terminated by the US Administrative Agent in writing: 
  

	 	(i)	Bank shall comply only with Lockbox Instructions issued by the US Administrative Agent to Bank; 

  

	 	(ii)	the Company shall have no right to issue withdrawal, payment, transfer or other fund disposition or other instructions with respect to the Account (collectively,
“Account Instructions” and, together with Lockbox Instructions, “Instructions”‘) or any other right or ability to access, withdraw or transfer funds from the Account 

  

	 	(iii)	 Bank shall transfer (by wire transfer or other method of transfer mutually acceptable to Bank and the US Administrative Agent), in same day funds, on
each business day, the entire balance in the Account to the following account:1 

 ABA Number:
                                         
            
 [Insert Name and Address of First Priority Collateral
Account] 
 Account Name:
                                         
            
 Account Number:
                                         
        
 Reference:
                                         
                    
 Attention:
                                         
                    
 or to
such other deposit account as the US Administrative Agent may from time to time designate in writing (the “Collateral Account”). 
 For the purposes of the foregoing, a “business day” is any day other than a Saturday, Sunday or other day on which Bank is or is authorized or required by law to be closed. 
 5. Re-presentment. If Bank has been instructed in writing to re-present Items which have been dishonored or returned to Bank unpaid,
Bank may do so automatically and without notice to the Company or the US Administrative Agent, and Bank reserves the right to charge back the Account or claim a refund from the Company [or the US Administrative Agent] should any such Items remain
unpaid. 
 6. Supplemental Agreement. This Agreement supplements, rather than replaces the Applicable Documentation,
which Applicable Documentation will continue to apply to the Account and 
  

	1	 The US Administrative Agent to provide account information for the First Priority Collateral Account. 

  

 3 

 such Service, and the respective rights, powers, duties, obligations, liabilities and responsibilities of
the parties thereto and hereto, to the extent not expressly conflicting with the provisions of this Agreement (however, in the event of any such conflict, the provisions of this Agreement shall control). Prior to issuing any instructions, the
Company and/or the US Administrative Agent shall provide Bank with such documentation as Bank may reasonably request to establish the identity and authority of the individuals issuing instructions on behalf of the US Administrative Agent or the
Company. 
 7. Agency. The Company hereby appoints the US Administrative Agent as its attorney-in-fact to give or receive
instructions, information, notices or communications on its behalf as contemplated by the terms of this Agreement. The Company shall be liable for the performance of all obligations and the observance of all limitations required of the Company and
the US Administrative Agent pursuant to the terms of this Agreement 
 8. Limitation of Liability. Notwithstanding
anything to the contrary in this Agreement: (i) Bank shall have only the duties and responsibilities with respect to the matters set forth herein as is expressly set forth in writing herein and shall not be deemed to be a fiduciary for or have
any fiduciary obligations to any party hereto; (ii) Bank shall be fully protected in acting or refraining from acting in good faith without investigation on any notice, instruction or request purportedly furnished to it by the Company or the US
Administrative Agent in accordance with the terms hereof, in which case the parties hereto agree that Bank has no duty to make any further inquiry whatsoever; (iii) it is hereby acknowledged and agreed that Bank has no knowledge of (and is not
required to know) the terms and provisions of any other agreements between the Company and the US Administrative Agent or any related documentation or whether any actions by the US Administrative Agent, the Company or any other person or entity are
permitted or a breach thereunder or consistent or inconsistent therewith; (iv) Bank shall not be liable to any party hereto or any other person for any action or failure to act under or in connection with this Agreement except to the extent
such conduct constitutes its own willful misconduct or gross negligence (and to the maximum extent permitted by law, shall under no circumstances be liable for any incidental, indirect, special, consequential or punitive damages); (v) Bank
shall use ordinary care in its performance of the Service, and shall not be liable unless it has failed to exercise such ordinary care; (vi) Bank assumes no obligation or liability to any payees or other third parties pursuant to this Agreement
or otherwise arising from the acts or omissions of Bank (unless such acts or omissions constitute the willful misconduct or gross negligence of Bank), the Company or the US Administrative Agent under this Agreement; and (vii) Bank shall not be
liable for losses or delays caused by (a) force majeure, (b) interruption or malfunction of computer, transmission or communications facilities, absent its gross negligence or willful misconduct and (c) labor difficulties,
court order or decree, the commencement of bankruptcy or other similar proceedings or other matters beyond Bank’s reasonable control. 
 9. Indemnification. The Company hereby agrees to indemnify, defend and save harmless Bank against any loss, liability or expense (including reasonable fees and disbursements of counsel who may be
an employee of Bank) incurred in connection with this Agreement, the Service or the Account (except to the extent due to Bank’s willful misconduct or gross negligence) or any interpleader proceeding relating thereto or incurred at the
Company’s direction or instruction, including without limitation any (i) returned or charged-back items, (ii) reversals or cancellations of payment orders and other electronic fund transfers, (iii) overdrafts resulting from
adjustments or corrections of previous credits or other postings (together with clauses (i) and (ii), collectively, “Returned Items”) or (iv) Bank’s charges, fees and expenses with respect to the Service or the
Account provided in connection therewith or hereunder (collectively, “Charges”). If the US Administrative Agent receives the proceeds of any Item by wire transfer in accordance with paragraph 4(b) above, and thereafter (x) any
such Item is returned, (y) there are insufficient funds in the Account to cover such Returned Items, and (z) the Company fails to make payment within ten days of demand therefor, then the US Administrative Agent shall pay Bank the

  

 4 

 
amount thereof within ten days of demand therefor. [If any Charges incurred during the term of this Agreement are not paid by the Company within ten days after written demand therefor, provided
that there are insufficient funds in the Account to cover the payment of such charges after written demand therefor by Bank to the Company, the US Administrative Agent shall pay to Bank ten days after receipt of written demand therefor from Bank the
amount of such Charges.] 
 10. Compensation. The Company shall compensate Bank for the Service and the Account, by an
agreed method, in accordance with Bank’s fee schedules from time to time in effect. Bank will provide the Company with not less than 30 days’ prior written notice of any change in fees. The Company shall also be responsible for paying any
applicable taxes levied or based upon the Service and the Account, but excluding taxes based upon Bank’s net income or assets. Bank may charge the Account for any such fees due to Bank by the Company. 
 11. Terms; Termination. Bank may terminate this Agreement (a) in its discretion upon the sending of at least 30 days’
advance written notice to the other parties hereto or (b) because of a material breach by the Company or the US Administrative Agent of any of the terms of this Agreement or the Applicable Documentation, upon the sending of at least five
days’ advance written notice to the other parties hereto. This Agreement may be terminated by the US Administrative Agent, with or without cause, upon its delivery of at least 30 days’ advance written notice to the other parties hereto.
Any other termination or any amendment or waiver of this Agreement shall be effected solely by an instrument in writing executed by all the parties hereto. Any termination of this Agreement by any party hereto shall have no effect upon any
obligation of any party hereto to any other party to this Agreement existing on the date on which such notice is so delivered or received or which comes into existence prior to the effective date of such termination; provided, however with
respect to the US Administrative Agent and the Company, the provisions of paragraphs 9 and 10 shall survive any such termination, provided that paragraph 10 shall terminate with respect to the US Administrative Agent 90 days from tile date of the
termination of this Agreement. 
 12. Notices. All notices under this Agreement shall be in writing and sent (including
overnight courier or via facsimile transmission and confirmed in writing or delivered by hand or by recommended national overnight delivery service) to the parties hereto at their respective addresses or fax numbers set forth below (or to such other
address or fax number as any such party shall designate in writing to the other parties from time to time): 
  

	 	(a)	US Administrative Agent: 

 JPMorgan Chase Bank, N.A. 
 270 Park Avenue 
 New York, New York 10017 
 Attn:                              
 Facsimile No.: (212) 270-              
 Telephone No.: (212)
                     
  

	 	(b)	Company: 

 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
  

 5 

	 	(c)	Bank: 

 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
 13. Miscellaneous. This Agreement and any Applicable Documentation constitute the entire agreement among the parties with respect to
the Service and the Account, may not be changed or waived orally, and supersede any prior proposals, understandings or agreements (oral or written) with respect to the Service and the Account. Bank has not and, without the prior written consent of
the US Administrative Agent and the Company, Bank shall not, agree with any third party to comply with instructions or other directions concerning the Lockbox, the Account or the disposition of Items or funds in the Account originated by such third
party. 
 14. Governing Law; Jurisdiction. Any disputes arising from or related to the Service, the Account or this
Agreement shall be governed by the laws of the State of New York (without reference to the conflict of law rules thereof). Any action against Bank arising from or related to the Service, the Account or this Agreement must be brought by the Company
or the US Administrative Agent in state or (where there is subject matter jurisdiction) federal court located in the State of New York. In addition, the Company and the US Administrative Agent consent to the jurisdiction and venue of the state and
federal courts located within the State of New York, County of New York for the adjudication of all claims made by Bank against either or both arising from or related to the Service, the Account or this Agreement. 
 This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument and shall become effective when counterparts hereof have been signed and delivered by the parties hereto. All parties hereby waive all rights to a trial by jury in any action or proceeding relating to the Service,
the Lockbox, the Account or this Agreement. 
 [Remainder of Page Intentionally Left Blank] 
  

 6 

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

									
	[NAME OF COMPANY]	 		 	 JPMORGAN CHASE BANK, N.A., as US
 Administrative Agent

					
	By:	 	 	 		 	By:	 	 
		 	Name:	 		 		 	Name:
		 	Title:	 		 		 	Title:

  

			
	[NAME OF BANK]
		
	By:	 	 
		 	Name:
		 	Title:

  

 7 

 EXHIBIT A 
 Form of Control Notice 
 [NAME OF BANK] 
 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
  

	 	Re:	Account No.                     (the
“Account”) 

	 	 	Post Office Box                      (the
“Lockbox”) 

 Ladies and Gentlemen: 
 Reference is made to the Account, the Lockbox and that certain Deposit Account Control Agreement, dated
            , 206   (the “Deposit Account Control Agreement”), among [NAME OF BANK], JPMorgan Chase Bank, N.A., as US administrative agent (the
“US Administrative Agent”), and                     . Capitalized terms used herein shall have the meanings given to them in
the Deposit Account Control Agreement. 
 The US Administrative Agent hereby notifies you that, from and after the date of this
notice, you are hereby directed to transfer (by wire transfer or other method of transfer mutually acceptable to you and the US Administrative Agent) to the US Administrative Agent, in same day funds, on each business day, the entire balance in the
Account to the Collateral Account specified in paragraph 4(b)(iii) of the Deposit Account Control Agreement or to such other account as the US Administrative Agent may from time to time designate in writing. 
 From and after the date hereof, until the US Administrative Agent withdraws or otherwise terminates the effectiveness of this Control Notice
in writing, you shall comply only with Instructions (including Lockbox Instructions and Account Instructions) issued to you by the US Administrative Agent. 
  

			
	Very truly yours,
	
	 JPMORGAN CHASE BANK, N.A.,
 as US Administrative Agent

		
	By:	 	 
		 	Name:
		 	Title:

 Annex 4 
 Form of Securities Account Control Agreement 

 FORM OF SECURITIES ACCOUNT CONTROL AGREEMENT 
 [Name and Address of Approved Securities Intermediary] 
                      , 20     
 Ladies and Gentlemen: 
 The
undersigned                  (the “Pledgor”) together with certain of its affiliates are party to a Pledge and Security Agreement dated
            , 2006 in favor of JPMorgan Chase Bank, N.A., as US Administrative Agent for the Secured Parties referred to therein (the “Pledgee” and such agreement
the “Security Agreement”) pursuant to which a security interest is granted by the Pledgor in all present and future Assets (hereinafter defined) in Account
No.             of the Pledgor (the “Pledge”). 
 In connection therewith, the Pledgor hereby instructs you (the “Approved Securities Intermediary”) to do all of the following: 
  

	 	1.	maintain the Account, as “                 - JPMorgan Chase Bank Control
Account”; 

  

	 	2.	hold in the Account the assets, including, without limitation, all financial assets, securities, security entitlements and all other property and rights now or
hereafter received in such Account (collectively the “Assets”), including, without limitation, those assets listed on Schedule A (List of Assets) attached hereto and made a part hereof; 

  

	 	3.	provide to the Pledgee, with a duplicate copy to the Pledgor, a monthly statement of Assets and a confirmation statement of each transaction effected in the Account
after such transaction is effected; and 

  

	 	4.	honor only the instructions or entitlement orders (within the meaning of Section 8-102 of the UCC) (as defined below) (the “Entitlement Orders”)
in regard to or in connection with the Account given by an Authorized Officer (as defined below) of the Pledgee, except that until such time as the Pledgee gives a written notice in the form of Exhibit A hereto (the “Control
Notice”) to the Approved Securities Intermediary that the Pledgor’s rights under this sentence have been terminated (on which notice the Approved Securities Intermediary may rely exclusively), the Pledgor acting through an Authorized
Officer may (a) exercise any voting right that it may have with respect to any Asset, (b) give Entitlement Orders and otherwise give instructions to enter into purchase or sale transactions in the Account and (c) withdraw and receive
for its own use all regularly scheduled interest and dividends paid with respect to the Assets (“Permitted Withdrawals”); provided, however, that, unless the Pledgee has consented to the specific transaction,
the Pledgor shall not instruct the Approved Securities Intermediary to deliver and, except as may be required by law or by court order, the Approved Securities Intermediary shall not deliver, cash, securities, or proceeds from the sale of, or
distributions on, such securities out of the Account to the Pledgor or to any other person or entity other than Permitted Withdrawals. 

 By its signature below, the Approved Securities Intermediary agrees to comply with the
Entitlement Orders and instructions of an Authorized Officer of the Pledgee (including, without limitation, any instruction with respect to sales, trades, transfers and withdrawals of cash or other of the Assets) without the consent of the Pledgor
or any other person (it being understood and agreed by the Pledgor that the Approved Securities Intermediary shall have no duty or obligation whatsoever of any kind or character to have knowledge of the terms of the Security Agreement or to
determine whether or not an event of default exists thereunder). The Pledgor hereby agrees to indemnify and hold harmless the Approved Securities Intermediary, its affiliates, officers and employees from and against all claims, causes of action,
liabilities, lawsuits, demands and damages, including, without limitation, all court costs and reasonable attorney’s fees, that may result by reason of the Approved Securities Intermediary complying with such instructions of the Pledgee.

 The Authorized Officer of the Pledgee who shall give oral instructions hereunder shall confirm the same in writing to the
Approved Securities Intermediary within five days after such oral instructions are given. 
 For the purpose
of this Agreement, the term “Authorized Officer of the Pledgor” shall refer in the singular to                  or
                 (each of whom is, on the date hereof, an officer or director of the Pledgor) and “Authorized Officer of the Pledgee” shall refer
in the singular to any person who is a vice president or assistant vice president of the Pledgee. In the event that the Pledgor shall find it advisable to designate a replacement for any of its Authorized Officers, written notice of any such
replacement shall be given to the Approved Securities Intermediary and the Pledgee.2 
 Except with respect to the obligations and duties as set forth herein, this
Agreement shall not impose or create any obligation or duty upon the Approved Securities Intermediary greater than or in addition to the customary and usual obligations and duties of the Approved Securities Intermediary to the Pledgor. 

As long as the Assets are pledged to the Pledgee, (i) the Approved Securities Intermediary shall not invade the Assets to cover
margin debits or calls in any other account of the Pledgor and (ii) the Approved Securities Intermediary agrees that, except for liens resulting from customary commissions, fees, or charges based upon transactions in the Account, it
subordinates in favor of the Pledgee any security interest, lien or right of setoff the Approved Securities Intermediary may have. The Approved Securities Intermediary acknowledges that it has not received notice of any other security interest in
the Account or the Assets. In the event any such notice is received, the Approved Securities Intermediary shall promptly notify the Pledgee. The Pledgor herein represents that the Assets are free and clear of any lien or encumbrance and agrees that,
with the exception of the security interest granted to the Pledgee, no lien or encumbrance shall be placed by it on the Assets without the express written consent of both the Pledgee and the Approved Securities Intermediary. 
 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and it and
the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, and the law of the Approved Securities Intermediary’s jurisdiction for the purposes of Section 8-110 of the Uniform
Commercial Code in effect in the State of New York (the “UCC”) shall be, the law of the State of New York. 
 The Approved Securities Intermediary shall treat all property at any time held by the Approved Securities Intermediary in the Account as financial assets within the meaning of the UCC. The 
  

	2	 JPMorgan Chase Bank, N.A. to advise regarding authorized officers. 

  

 2 

 Approved Securities Intermediary acknowledges that this Agreement constitutes written notification to the
Approved Securities Intermediary, pursuant to the UCC and any applicable federal regulations for the Federal Reserve Book Entry System, of the Pledgee’s security interest in the Assets. The Pledgor, Pledgee and Approved Securities Intermediary
are entering into this Agreement to provide for the Pledgee’s control of the Assets and to confirm the first priority of the Pledgee’s security interest in the Assets. The Approved Securities Intermediary agrees to promptly make and
thereafter maintain all necessary entries or notations in its books and records to reflect the Pledgee’s security interest in the Assets. 
 If any term or provision of this Agreement is determined to be invalid or unenforceable, the remainder of this Agreement shall be construed in all respects as if the invalid or unenforceable term or
provision were omitted. This Agreement may not be altered or amended in any manner without the express written consent of the Pledgor, the Pledgee and the Approved Securities Intermediary. This Agreement may be executed in any number of
counterparts, all of which shall constitute one original agreement. 
 This Agreement may be terminated by the Approved
Securities Intermediary upon 30 days’ prior written notice to the Pledgor and the Pledgee. Upon expiration of such 30-day period, the Approved Securities Intermediary shall be under no further obligation except to hold the Assets in accordance
with the terms of this Agreement, pending receipt of written instructions from the Pledgor and the Pledgee, jointly, regarding the further disposition of the pledged Assets. 
 The Pledgor acknowledges that this Agreement supplements any existing agreement of the Pledgor with the Approved Securities Intermediary
and, except as expressly provided herein, is in no way intended to abridge any right that the Approved Securities Intermediary might otherwise have. 
  

 3 

 IN WITNESS WHEREOF, the Pledgor and the Pledgee have caused this Agreement to be executed by
their duly authorized officers all as of the date first above written. 
  

			
	[NAME OF PLEDGOR]
		
	By:	 	 
		 	Name:
		 	Title:
	JPMORGAN CHASE BANK, N.A., as US Administrative Agent
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	 ACCEPTED AND AGREED
 as of the date first above written:

	
	[APPROVED FINANCIAL INTERMEDIARY]
		
	By:	 	 
		 	Name:
		 	Title:

  

 4 

 SCHEDULE A 
 LIST OF ASSETS 
 List of Assets for Pledged Collateral Account Number:
                     

 Annex 5 
 Form of Pledge Agreement 

 FORM OF PLEDGE AMENDMENT 
 This PLEDGE AMENDMENT, dated as of             
    , 20    , is delivered pursuant to Section 5.6 of the Pledge and Security Agreement, dated as of June 12,2006, by Cellu Paper Holdings, Inc., Cellu Tissue Holdings, Inc. (the
“US Borrower”), [the undersigned Grantor] and each other subsidiary of the US Borrower party thereto as Grantors, in favor of JPMorgan Chase Bank, N.A., as US Administrative Agent for the Secured Parties referred to therein
(the “Security Agreement”) and the undersigned hereby agrees that this Pledge Amendment may be attached to the Security Agreement and that the Pledged Collateral listed on this Pledge Amendment shall be and become part of the
Collateral referred to in the Security Agreement and shall secure all Secured Obligations of the undersigned. Capitalized terms used herein but not defined herein are used herein with the meaning given them in the Security Agreement. 
  

			
	[GRANTOR]
		
	By:	 	 
		 	Name:
		 	Title:

 Pledged Stock 
  

									
	 Issuer
	  	 Class
	  	 Certificate No(s).
	  	Par Value	  	Number of
Shares,
Units or
Interests

 Pledged Notes 
  

									
	 Issuer
	  	 Description of Debt
	  	 Certificate No(s).
	  	 Final Maturity
	  	Principal Amount

			
	ACKNOWLEDGED AND AGREED as of the date first above written:
	
	JPMORGAN CHASE BANK, N.A., as US Administrative Agent
		
	By:	 	 
		 	Name:
		 	Title:

  

 3Form of Indemnity Agreement

 Exhibit 10.34 
 INDEMNIFICATION AGREEMENT 
 This INDEMNIFICATION
AGREEMENT is made and executed effective as of this              day of                 ,
2009, by and between CELLU TISSUE HOLDINGS, INC., a Delaware corporation (the “Company”), and
                            , an individual resident of the State of
                         (the “Indemnitee”). 
 WHEREAS, the Company is aware that, in order to induce highly competent persons to serve the Company as directors or officers or in other
capacities, the Company must provide such persons with adequate protection through indemnification against risks of claims and actions against them arising out of their service to and activities on behalf of the Company; 
 WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company’s stockholders that the
Company act to assure such persons that there will be increased certainty of such protection in the future; 
 WHEREAS, it is
reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so that they will continue to serve the Company free from undue concern that they will not
be so indemnified; and 
 WHEREAS, the Indemnitee is willing to serve, continue to serve, and take on additional service for or
on behalf of the Company on the condition that he/she be so indemnified. 
 NOW, THEREFORE, in consideration of the premises and
the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Indemnitee do hereby agree as follows: 
 1. Service by the Indemnitee. The Indemnitee agrees to serve and/or continue to serve as a director or officer of the Company
faithfully and will discharge his/her duties and responsibilities to the best of his/her ability so long as the Indemnitee is duly elected or qualified in accordance with the provisions of the Certificate of Incorporation of Cellu Tissue Holdings,
Inc. (as may be amended from time to time, the “Certificate”), the Bylaws of Cellu Tissue Holdings, Inc. (as may be amended from time to time, the “Bylaws”), the General Corporation Law of the State of Delaware, as amended (the
“DGCL”) and any other applicable law in effect on the date of this Agreement and from time to time, or until his/her earlier death, resignation or removal. The Indemnitee may, at any time and for any reason, resign from such position
(subject to any other contractual obligation or other obligation imposed by operation by law), in which event the Company shall have no obligation under this Agreement to continue the employment or directorship of the Indemnitee and Indemnitee shall
have no further obligation to serve. Nothing in this Agreement shall confer upon the Indemnitee the right to continue in the employ of the Company or as a director of the Company or affect the right of the Company to terminate the Indemnitee’s
employment at any time in the sole discretion of the Company, with

 
or without cause, subject to any contract rights of the Indemnitee created or existing otherwise than under this Agreement. 
 2. Indemnification. The Company shall indemnify the Indemnitee against all Expenses (as defined below), judgments, fines and amounts
paid in settlement actually and reasonably incurred by the Indemnitee as provided in this Agreement to the fullest extent permitted by the Certificate, Bylaws and DGCL or other applicable law in effect on the date of this Agreement and to any
greater extent that applicable law may in the future from time to time permit. 
 3. Partial Indemnification. If the
Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee in connection
with the investigation, defense, appeal or settlement of any Proceeding, but is not entitled to indemnification for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses, judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee to which the Indemnitee is entitled. For purposes of this Section and without limitation, (1) the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter, and (2) a decision by any government, regulatory or self regulatory authority, agency or body not to
commence or pursue any investigation, civil or criminal enforcement matter or case or in any civil suit, shall be deemed to be a successful result as to such claim, issue or matter. 
 4. Indemnity for Expenses Incurred to Secure Recovery or as a Witness. 
 (a) The Company shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee
harmless from and against, any and all Expenses and, if requested by Indemnitee, shall advance on an as-incurred basis (as provided in Section 7 of this Agreement) such Expenses to Indemnitee, which are reasonably incurred by Indemnitee in
connection with any action or proceeding or part thereof brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement, any other agreement, the Certificate of Incorporation or By-laws of the
Company as now or hereafter in effect; or (ii) recovery under any director and officer liability insurance policies maintained by the Company. 
 (b) To the extent that Indemnitee is, by reason of Indemnitee’s status as a director or officer of the Company, a witness (or is forced or asked to respond to discovery requests) in any Proceeding to
which Indemnitee is not a party, the Company shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, and the Company will advance on an as-incurred basis (as provided in
Section 7 of this Agreement), all Expenses actually and reasonably incurred by Indemnitee or on behalf of Indemnitee in connection therewith. 
 5. Procedure for Determination of Entitlement to Indemnification. 

 (a) To obtain indemnification under this Agreement, Indemnitee shall submit
a written request for indemnification hereunder. The time at which Indemnitee submits a written request for indemnification shall be determined by the Indemnitee in the Indemnitee’s sole discretion. Once Indemnitee submits such a written
request for indemnification (and only at such time that Indemnitee submits such a written request for indemnification), a Determination (as defined by Section 22 of this Agreement) shall thereafter be made, as provided in and only to the extent
required by Section 5(c) of this Agreement. In no event shall a Determination of Indemnitee’s entitlement to indemnification be made, or be required to be made, as a condition to or otherwise in connection with any advancement of Expenses
pursuant to Section 7 of this Agreement or, with respect to any Proceeding, to the extent Indemnitee has been successful on the merits or otherwise in such Proceeding. If, at the time of receipt of any such request for indemnification, the
Company has director and officer insurance policies in effect, the Company will promptly notify the relevant insurers in accordance with the procedures and requirements of such policies. 
 (b) The Secretary of the Company shall, promptly upon receipt of a claim for indemnification from the Indemnitee, advise the
Board of Directors in writing that Indemnitee has requested indemnification. Any Expenses incurred by the Indemnitee in connection with the Indemnitee’s request for indemnification hereunder shall be borne by the Company. The Company hereby
indemnifies and agrees to hold the Indemnitee harmless for any Expenses incurred by Indemnitee under the immediately preceding sentence irrespective of the outcome of the determination of the Indemnitee’s entitlement to indemnification.

 (c) Upon submission of a written request by the Indemnitee for indemnification as provided in
Section 5(a), a Determination shall be made as to Indemnitee’s entitlement to indemnification. Any such Determination shall be made within thirty (30) days after receipt of Indemnitee’s written request for indemnification
pursuant to Section 5(a), unless Indemnitee agrees to a longer period, and such Determination shall be made either (i) by a majority of the Disinterested Directors, so long as Indemnitee does not request that such Determination be made by
Independent Counsel, or (ii) if so requested by Indemnitee, in Indemnitee’s sole discretion, by Independent Counsel in a written opinion to the Company and Indemnitee. If a Determination is made that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within twenty (20) days after such Determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available
to Indemnitee and reasonably necessary to such Determination. Any Expenses incurred by Indemnitee in so cooperating shall be advanced and borne by the Company (irrespective of the Determination as to Indemnitee’s entitlement to indemnification)
and the Company is liable to indemnify and hold Indemnitee harmless therefrom. If the person, persons or entity making such Determination shall determine that the Indemnitee is entitled to indemnification as to part (but not all) of the application
for indemnification, such person, persons or entity shall reasonably prorate such part of indemnification among such claims, issues or matters. 

 (d) In the event Indemnitee requests that the Determination be made by
Independent Counsel, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection by made by the Board of Directors, in which event the Board of Directors shall make such selection on behalf of the
Company, subject to the remaining provisions of this Section 5(d)), and Indemnitee or the Company, as the case may be, shall give written notice to the other, advising the Company or Indemnitee of the identity of the Independent Counsel so
selected. The Company or Indemnitee, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver to Indemnitee or the Company, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 22 of this Agreement, and
the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty (20) days after submission by
Indemnitee of a written request for indemnification pursuant to Section 5(a) of this Agreement, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction
for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person
as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under this Agreement. Any expenses incurred by Independent Counsel shall be borne by the
Company (irrespective of the Determination of Indemnitee’s entitlement to indemnification) and not by Indemnitee. 
 6.
Presumptions and Effect of Certain Proceedings.  
 (a) In making a Determination with respect to
entitlement to indemnification, the Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall be required to make any showing necessary to the making of any determination contrary to such presumption. 

(b) If the Board of Directors or, if so elected by Indemnitee, Independent Counsel shall have failed to make a
Determination as to entitlement to indemnification under Section 5 of this Agreement within 45 days after receipt by the Company of such request, the requisite determination of entitlement to indemnification shall be deemed to have been made
and the Indemnitee shall be absolutely entitled to such indemnification, absent actual fraud in the request for indemnification or a prohibition of indemnification under applicable law. The termination of any Proceeding covered by Section 2
hereof by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself adversely affect the rights of the Indemnitee to indemnification, except as may be provided herein. 
 7. Advancement of Expenses. 

 (a) To obtain advancement of Expenses under this Agreement, Indemnitee shall
submit to the Company a written request therefor, together with such invoices or other supporting information as may be reasonably requested by the Company and reasonably available to Indemnitee, and an unsecured, interest-free written undertaking
by Indemnitee to repay amounts advanced if it is ultimately determined that the Indemnitee is not entitled to be indemnified against such Expenses by the Company pursuant to this Agreement or otherwise. The Company shall make advance payment of
Expenses to Indemnitee no later than twenty (20) days after receipt of the written request for advancement (and each subsequent request for advancement) by Indemnitee. If, at the time of receipt of any such written request for advancement of
Expenses, the Company has director and officer insurance policies in effect, the Company will promptly notify the relevant insurers in accordance with the procedures and requirements of such policies. The Company shall thereafter keep such director
and officer insurers informed of the status of the Proceeding or other claim, as appropriate to secure coverage of Indemnitee for such claim. The Indemnitee’s entitlement to such Expenses shall include those incurred in connection with any
proceeding by the Indemnitee seeking an adjudication or award in arbitration pursuant to this Agreement. 
 (b)
Indemnitee’s right to advancement of Expenses under this Section 7 shall continue until such time as a final determination of the Proceeding for which advancement or indemnification is sought hereunder, from which all rights to appeal have
been exhausted, is made pursuant to Sections 5 and 8 of this Agreement. 
 8. Remedies of the Indemnitee in Cases of
Determination not to Indemnify or to Advance Expenses. In the event that a Determination is made that the Indemnitee is not entitled to indemnification hereunder or if the payment has not been timely made following a Determination of entitlement
to indemnification pursuant to Section 5, or if Expenses are not advanced pursuant to Section 7, the Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware or any other court of competent
jurisdiction of the Indemnitee’s entitlement to such indemnification or advance. Alternatively, the Indemnitee may, at the Indemnitee’s option, seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of
the American Arbitration Association, such award to be made within 60 days following the filing of the demand for arbitration. The Company shall not unreasonably oppose the Indemnitee’s right to seek any such adjudication or award in
arbitration or any other claim. Such judicial proceeding or arbitration shall be made de novo, and the Indemnitee shall not be prejudiced by reason of a prior determination (if so made) that the Indemnitee is not entitled to indemnification.
If a Determination is made or deemed to have been made pursuant to the terms of Section 5 hereof that the Indemnitee is entitled to indemnification, the Company shall be bound by such determination and shall be precluded from asserting that
such determination has not been made or that the procedure by which such determination was made is not valid, binding and enforceable. The Company further agrees to stipulate in any such court or before any such arbitrator that the Company is bound
by all the provisions of this Agreement and is precluded from making any assertions to the contrary. The Company shall advance all reasonable Expenses actually incurred by the Indemnitee in connection with such adjudication or award in arbitration
(including, but not limited to, any appellate proceedings) in accordance with the provisions set forth in Section 7 of this Agreement. 

 9. Notification and Defense of Claim. Indemnitee agrees to notify the Company
promptly upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses hereunder. Any failure by
Indemnitee to notify any the Company will relieve the Company of its advancement or indemnification obligations under this Agreement only to the extent the Company can establish that such omission to notify resulted in actual prejudice to it, and
the omission to notify the Company will, in any event, not relieve the Company from any liability which it may have to indemnify Indemnitee otherwise than under this Agreement. A notice provided under this Section 9 shall not be construed as a
request for indemnification pursuant to Section 5 or a request for advancement of Expenses under Section 7 of this Agreement. 
 Notwithstanding any other provision of this Agreement, with respect to any such Proceeding as to which the Indemnitee gives notice to the Company of the commencement thereof: 
 (a) The Company will be entitled to participate therein at its own expense. 
 (b) If Indemnitee is a participant in a Proceeding with any other Company directors or officers to whom the Company owes an
indemnification obligation, the Company shall not be required to advance expenses for more than one law firm (and, if necessary, an additional law firm to act as local counsel) to represent collectively Indemnitee and such other Company
directors or officers in respect of the same matter unless Indemnitee reasonably concludes that the representation of Indemnitee and such other Company directors or officers gives rise to a actual or potential conflict of interest.
 (c) The Company shall not, without the prior written consent of Indemnitee, which may be provided or withheld in
Indemnitee’s sole discretion, effect any settlement of any Proceeding against Indemnitee or which could have been brought against Indemnitee or which potentially or actually imposes any cost, liability, exposure or burden on Indemnitee,
including without limitation the entry of any contribution bar order, other bar order or other similar order, decree or stipulation pursuant to 15 U.S.C. § 78u-4 or any other foreign, federal or state statute, regulation, rule or law, unless
such settlement solely involves the payment of money or performance of any obligation by persons other than Indemnitee and includes an unconditional release of Indemnitee from all liability on any matters that are the subject of such Proceeding. The
Company shall not be obligated to indemnify Indemnitee against amounts paid in settlement of a Proceeding against Indemnitee if such settlement is effected by Indemnitee without the Company’s prior written consent, which consent shall not be
unreasonably withheld. 
 10. Other Right to Indemnification. The indemnification and advancement of Expenses provided by
this Agreement are cumulative, and not exclusive, and are in addition to any other rights to which the Indemnitee may now or in the future be entitled under any provision of the Bylaws or Certificate, any vote of stockholders or Disinterested
Directors, any provision of law or otherwise. Except as required by applicable law, the Company shall not

 
adopt any amendment to the Bylaws or Certificate the effect of which would be to deny, diminish or encumber the Indemnitee’s right to indemnification under this Agreement. 
 11. Director and Officer Liability Insurance. The Company shall, from time to time, make the good faith determination whether or not
it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the
Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In the event the
Company maintains directors’ and officers’ liability insurance, the Indemnitee shall be named as an insured in such manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the
Company’s officers or directors. However, the Company agrees that the provisions hereof shall remain in effect regardless of whether liability or other insurance coverage is at any time obtained or retained by the Company; except that any
payments made to, or on behalf of, the Indemnitee under an insurance policy shall reduce the obligations of the Company hereunder. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the
Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided or if the coverage provided by such insurance is limited by exclusions
so as to provide an insufficient benefit. 
 12. Spousal Indemnification. The Company will indemnify the
Indemnitee’s spouse to whom the Indemnitee is legally married at any time the Indemnitee is covered under the indemnification provided in this Agreement (even if Indemnitee did not remain married to him or her during the entire period of
coverage) against any Proceeding for the same period, to the same extent and subject to the same standards, limitations, obligations and conditions under which the Indemnitee is provided indemnification herein, if the Indemnitee’s spouse (or
former spouse) becomes involved in a pending or threatened action, suit, proceeding or investigation solely by reason of his or her status as Indemnitee’s spouse, including, without limitation, any pending or threatened action, suit, proceeding
or investigation that seeks damages recoverable from marital community property, jointly-owned property or property purported to have been transferred from the Indemnitee to his/her spouse (or former spouse). The Indemnitee’s spouse or former
spouse also shall be entitled to advancement of Expenses to the same extent that Indemnitee is entitled to advancement of Expenses herein. The Company may maintain insurance to cover its obligation hereunder with respect to Indemnitee’s spouse
(or former spouse) or set aside assets in a trust or escrow fund for that purpose. 
 13. Intent. This Agreement is
intended to be broader than any statutory indemnification rights applicable in the State of Delaware and shall be in addition to any other rights Indemnitee may have under the Certificate, Bylaws, applicable law or otherwise. To the extent that a
change in applicable law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Certificate, Bylaws, applicable law or this Agreement, it is the intent of the parties that
Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. 

 14. Attorney’s Fees and Other Expenses to Enforce Agreement. In the event that
the Indemnitee is subject to or intervenes in any Proceeding in which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce the Indemnitee’s rights under, or to recover damages
for breach of, this Agreement the Indemnitee, if he/she prevails in whole or in part in such action, shall be entitled to advancement of Expenses, including for attorneys’ fees and disbursements reasonably incurred by the Indemnitee, in
accordance with the terms set forth in Section 7 of this Agreement. 
 15. Effective Date. The provisions of this
Agreement shall cover claims, actions, suits or proceedings whether now pending or hereafter commenced and shall be retroactive to cover acts or omissions or alleged acts or omissions which heretofore have taken place. The Company shall be liable
under this Agreement, to the extent specified in Section 2 hereof, for all acts and omissions of the Indemnitee while serving as a director and/or officer, notwithstanding the termination of the Indemnitee’s service, if such act was
performed or omitted to be performed during the term of the Indemnitee’s service to the Company. 
 16. Duration of
Agreement. This Agreement shall survive and continue even though the Indemnitee may have terminated his/her service as a director, officer, employee, agent or fiduciary of the Company or as a director, officer, partner, employee, agent or
fiduciary of any other entity, including, but not limited to another corporation, partnership, limited liability company, employee benefit plan, joint venture, trust or other enterprise or by reason of any act or omission by the Indemnitee in any
such capacity. This Agreement shall be binding upon the Company and its successors and assigns, including, without limitation, any corporation or other entity which may have acquired all or substantially all of the Company’s assets or business
or into which the Company may be consolidated or merged, and shall inure to the benefit of the Indemnitee and his/her spouse, successors, assigns, heirs, devisees, executors, administrators or other legal representations. The Company shall require
any successor or assignee (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to
the Company and the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. 
 17. Third-Party Beneficiary. The Independent Counsel are express third-party beneficiaries of this Agreement, and may specifically
enforce the Company’s obligations hereunder as though a party hereunder. 
 18. Disclosure of Payments. Except as
required by any Federal or state securities laws or other Federal or state law, neither party shall disclose any payments under this Agreement unless prior approval of the other party is obtained. 
 19. Severability. If any provision or provisions of this Agreement shall be held invalid, illegal or unenforceable for any reason
whatsoever, (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, but not limited to, all portions of any Sections of this Agreement containing any such provision held to be invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent possible, the provisions of this Agreement (including, but not limited to, all

 
portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifest by the provision held invalid, illegal or unenforceable. 
 20.
Counterparts. This Agreement may be executed by one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 
 21. Captions. The captions and headings used in this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof. 
 22. Definitions. For purposes of this
Agreement: 
 (a) “Change in Control” shall mean any of the following events or transactions:

  

	 	(i)	the sale by the Company of all or substantially all of its assets or the consummation by the Company of any merger, consolidation, reorganization, or business
combination with any person, in each case, other than in a transaction: 

  

	 	A.	in which persons who were stockholders of the Company immediately prior to such sale, merger, consolidation, reorganization, or business combination own, immediately
thereafter, (directly or indirectly) more than 50% of the combined voting power of the outstanding voting securities of the purchaser of the assets or the merged, consolidated, reorganized or other entity resulting from such corporate transaction
(the “Successor Entity”); 

  

	 	B.	in which the Successor Entity is an employee benefit plan sponsored or maintained by the Company or any person controlled by the Company; or 

 

	 	C.	after which more than 50% of the members of the board of directors of the Successor Entity were members of the Board of Directors at the time of the action of the Board
of Directors approving the transaction (or whose nominations or elections were approved by at least two-thirds of the members of the Board of Directors at that time); 

  

	 	(ii)	 the acquisition directly or indirectly by any “person” or “group” (as those terms are used in Sections 13(d), and 14(d) of the
Securities Exchange Act of 1934, including without limitation, Rule 13d-5(b)) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934) of

	 	 
securities entitled to vote generally in the election of directors (“voting securities”) of the Company that represent 30% or more of the combined voting power of the Company
then-outstanding voting securities, other than: 

  

	 	A.	an acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any
person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company; 

  

	 	B.	an acquisition of voting securities by the Company or a person owned, directly or indirectly, by the holders of at least 50% of the voting power of the Company then
outstanding securities in substantially the same proportions as their ownership of the stock of the Company; 

  

	 	C.	an acquisition of voting securities from the Company; or 

  

	 	D.	an acquisition of voting securities pursuant to a transaction described in Section 22(a)(i) hereof that would not be a Change in Control under Section 22(a)
hereof; and 

 for purposes of clarification, an acquisition of the Company’s securities by the Company that
causes the Company voting securities beneficially owned by a person or group to represent 30% or more of the combined voting power of the Company’s then-outstanding voting securities is not to be treated as an “acquisition” by any
person or group for purposes of this Section 22(a)(ii); 
  

	 	(iii)	a change in the composition of the Board of Directors that causes less than a majority of the directors of the Company to be directors that meet one or more of the
following descriptions: 

  

	 	A.	a director who has been a director of the Company for a continuous period of at least 24 months; 

  

	 	B.	 a director whose election or nomination as director was approved by a vote of at least two-thirds of the then directors described in Sections
22(a)(iii)(A), (B) or (C) hereof by prior nomination or election, but excluding, for the purposes of this Section 22(a)(iii)(B), any director whose initial assumption of office occurred as a result of an actual or threatened
(x) election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or group other than the

	 	 
Board of Directors or (y) tender offer, merger, sale of substantially all of the Company’s assets, consolidation, reorganization, or business combination that would be a Change in
Control under Section 22(a)(i) hereof on the consummation thereof; or 

  

	 	C.	a director who was serving on the Board of Directors as a result of the consummation of a transaction described in Section 22(a)(i) that would not be a Change in
Control under Section 22(a)(i); or 

  

	 	(iv)	the approval by the Company’s stockholders of a liquidation or dissolution of the Company other than in connection with a transaction described in
Section 22(a)(i) that would not be a Change in Control thereunder. 

 (b)
“Determination” shall mean that either (x) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct or (y) there is
no reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct. 
 (c) “Disinterested Director” shall mean a director of the Company who is not or was not a party to the action,
suit, investigation or proceeding in respect of which indemnification is being sought by the Indemnitee. 
 (d)
“Expenses” shall include all attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating or being or preparing to be a witness in any threatened, pending or completed Proceeding, whether civil,
criminal, administrative or investigative in nature, in each case to the extent reasonable. 
 (e)
“Independent Counsel” shall mean a law firm or a member of a law firm that neither is presently nor in the past five years has been retained to represent (i) the Company or the Indemnitee in any matter material to either such party or
(ii) any other party to the action, suit, investigation or proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee’s right to indemnification under this Agreement.

 (f) “Proceeding” shall include any actual, threatened, pending or
completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened, pending or completed proceeding, whether brought by or in the right of the Company or
otherwise and whether civil, criminal, administrative or investigative in nature, in which Indemnitee was, is, may be or will be involved as a party, witness or otherwise, by reason of Indemnitee’s status as a director or officer of the Company
or by reason of any action taken by Indemnitee or of any inaction on Indemnitee’s part while acting as director or officer of the Company (in each case whether or not he is acting or serving in any such capacity or has such status at the time
any liability or expense is incurred for which indemnification or advancement of Expenses can be provided under this Agreement), or any foreign equivalent of the foregoing. 
 23. Entire Agreement, Modification and Waiver. This Agreement constitutes the entire agreement and understanding of the parties
hereto regarding the subject matter hereof, and no supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. No supplement, modification or amendment of this Agreement shall limit or restrict any right of the Indemnitee
under this Agreement in respect of any act or omission of the Indemnitee prior to the effective date of such supplement, modification or amendment unless expressly provided therein. 
 24. Notices. All notices, requests, demands or other communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand with receipt acknowledged by the party to whom said notice or other communication shall have been directed or if (ii) mailed by certified or registered mail, return receipt requested with postage
prepaid, on the date shown on the return receipt: 
  

	 	(a)	If to the Indemnitee to: 

 _____________________________ 
 _____________________________ 
 _____________________________ 
  

	 	(b)	If to the Company, to: 

 Cellu
Tissue Holdings, Inc. 
 1855 Lockeway Drive, Suite 501 
 Alpharetta, Georgia 30004 
 Attention: General Counsel 

 with a copy to: 
 King & Spalding LLP 
 1180 Peachtree Street 
 Atlanta, Georgia 30309 
 Attention: Alan J. Prince 
 or to
such other address as may be furnished to the Indemnitee by the Company or to the Company by the Indemnitee, as the case may be. 
 25. Governing Law. The parties hereto agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, applied without giving effect to any conflicts-of-law principles.

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

			
	CELLU TISSUE HOLDINGS, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 
	
	INDEMNITEE:
		
	By	 	 
	Name:

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