Document:

Exhibit 4.9

 

INTERCREDITOR
AGREEMENT

 

This INTERCREDITOR AGREEMENT
(“Agreement”), is dated as
of May 2, 2005, and entered into by and among NewPage Corporation (the “Company”), NewPage Holding Corporation (“Holdings”),
certain subsidiaries of the Company (the “Subsidiary
Guarantors” and together with
Holdings, the “Guarantors”), JPMorgan Chase Bank, in its capacity
as collateral agent for the Revolving Credit Lenders (including its successors
and assigns from time to time, the “Revolving
Credit Agent”) and The
Bank of New York, in its capacity as collateral trustee (including its
successors and assigns from time to time, the “Collateral Trustee”) for (i) Goldman Sachs Credit Partners L.P., in its capacity as
agent for the First Lien Term Loan Lenders (including its successors and
assigns from time to time, the “First Lien
Term Loan Agent”), and
the First Lien Term Loan Lenders, (ii) the Trustees for the Noteholders and the
Noteholders, and (iii) any future Parity Lien Representative, Parity Lien Claimholders,
Priority Lien Representative or Priority Lien Claimholders. As described in
more detail in Section 8.11 hereof, this Agreement is intended to be
binding on all Claimholders and Secured Debt Representatives, as well as the
Revolving Credit Agent and the Collateral Trustee. Capitalized terms used in
this Agreement have the meanings assigned to them in Section 1 below.

 

RECITALS

 

The Company, the Guarantors, the lenders (the “Revolving Credit Lenders”) and agents party thereto, and
Revolving Credit Agent, have entered into that Revolving Credit and Guaranty
Agreement dated as of the date hereof providing for a revolving credit facility
(as amended, restated, supplemented, modified, replaced or refinanced from time
to time, the “Revolving Credit Agreement”);

 

The Company, the Guarantors, the lenders (the “First Lien Term Loan Lenders”) and agents party thereto, and the
First Lien Term Loan Agent, have entered into that First Lien Term Loan Credit
and Guaranty Agreement dated as of the date hereof providing for the making of
certain term loans (as amended, restated, supplemented, modified, replaced or
refinanced from time to time, the “First Lien
Term Loan Agreement”);

 

The Company is also issuing (i) the floating rate senior secured notes
in the aggregate principal amount not to exceed $225 million (including any
related exchange notes, the “Floating Rate Notes”) pursuant to an Indenture dated as of the date hereof
(as amended, supplemented, amended and restated or otherwise modified and in
effect from time to time, the “Floating Rate Notes Indenture”) among
the Company, the guarantors party thereto and HSBC Bank USA, National
Association, as trustee (in such capacity and including its successors and
assigns from time to time, the “Floating Rate
Notes Trustee”) and
(ii) the 10% senior secured notes in the aggregate principal amount not to
exceed $350 million (including any related exchange notes, the “10% Senior Secured Notes”
and together with the Floating Rate Notes, the “Notes”)
pursuant to an Indenture dated as of the date hereof (as amended, supplemented,
amended and restated or otherwise modified and in effect from time to time, the
“10%  Senior
Secured Notes Indenture”) among the Company,
the guarantors party thereto and HSBC Bank USA, National Association, as trustee
(in such capacity and including its successors and assigns

 

 

from time to time, the “10% Senior Secured Notes Trustee” and,
together with the Floating Rate Notes Trustee, the “Trustees”);

 

The obligations of the Company to (i) the Revolving Credit Agent and
Revolving Credit Claimholders and (ii) the Secured Debt Representatives and the
Secured Debt Claimholders are each secured by Liens on certain of the assets of
the Company and the Guarantors; and

 

As a condition to the closing of each of the “Financing Transactions”,
each of the Revolving Credit Agent, the Collateral Trustee, the Secured Debt
Representatives and the various Claimholders have agreed to the relative
priority of their respective Liens on the Collateral and certain other rights,
priorities and interests as set forth in this Agreement.

 

AGREEMENT

 

In consideration of the foregoing, the mutual covenants and obligations
herein set forth and for other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

I.                                         DEFINITIONS.

 

1.1                                 Defined Terms. As used in the Agreement, the following
terms shall have the following meanings:

 

“10% Senior Secured Notes” has the
meaning assigned to that term in the recitals to this Agreement.

 

“10% Senior Secured Notes Indenture” has the meaning assigned to that term in the
recitals to this Agreement.

 

“10% Senior Secured Notes Trustee” has the meaning assigned to that
term in the recitals to this Agreement.

 

“Access Period” means for each parcel of Mortgaged Premises
the period, after the commencement of an Enforcement Period, which begins on
the day that Revolving Credit Agent (or, following the Discharge of Revolving
Credit Obligations, a Priority Lien Representative) provides Collateral Trustee
with the notice of its election to request access pursuant to Section 3.3(b)
below and ends on the earlier of (i) the 180th day after Revolving
Credit Agent obtains the ability to use, take physical possession of, remove or
otherwise control the use or access to the Revolving Credit Collateral located
on such Mortgaged Premises following Enforcement plus such number of days, if
any, after Revolving Credit Agent (or, following the Discharge of Revolving Credit
Obligations, the Collateral Trustee acting upon direction of the Priority Lien
Claimholders or a Priority Lien Representative acting on behalf of the
Collateral Trustee) obtains access to such Revolving Credit Collateral that it
is stayed or otherwise prohibited by law or court order from exercising
remedies with respect to Revolving Credit Collateral located on such Mortgaged
Premises or (ii) the date on which all or substantially all of the Revolving
Credit Collateral located on such Mortgaged Premises is sold,

 

2

 

collected or liquidated or (iii) the date on which the Discharge of
Revolving Credit Obligations and the Discharge of Priority Lien Obligations
occurs.

 

“Accounts”
means all now present and future “accounts” and “payment intangibles” (in each
case, as defined in Article 9 of the UCC).

 

“Account Agreements” means any lockbox account agreement, pledged account agreement,
blocked account agreement, securities account control agreement, or any similar
deposit or securities account agreements among the Collateral Trustee and/or
Revolving Credit Agent and the Company and/or a Guarantor and the relevant
financial institution depository or securities intermediary.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, “control,” as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings.

 

“Agreement” means this Intercreditor Agreement, as amended, restated, renewed, extended,
supplemented or otherwise modified from time to time.

 

“Bankruptcy Code” means Title 11 of the United States Code
entitled “Bankruptcy,” as now and hereafter in effect, or any successor
statute.

 

“Bankruptcy Law”
means the Bankruptcy Code and any similar federal, state or foreign law for the
relief of debtors.

 

“Board of Directors” means (1) with respect to a corporation, the board of directors of the
corporation or any committee thereof duly authorized to act on behalf of such
board, (2) with respect to a partnership, the Board of Directors of the general
partner of the partnership, (3) with respect to a limited liability company,
the managing member or members or any controlling committee or board of
directors of such company or of the sole member or of the managing member
thereof and (4) with respect to any other Person, the board or committee of
such Person serving a similar function.

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close.

 

“Capital Stock”
means:

 

(1)                                  in the case of a corporation, corporate
stock;

 

(2)                                  in the case of an association or business
entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

3

 

(3)                                  in the case of a partnership or limited
liability company, partnership interests (whether general or limited) or
membership interests; and

 

(4)                                  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, but excluding from all of
the foregoing any debt securities convertible into Capital Stock, whether or not
such debt securities include any right of participation with Capital Stock.

 

“Chattel Paper” means all present and future “chattel paper”
(as defined in Article 9 of the UCC).

 

“Claimholders” means the Revolving Credit Claimholders and
each of the Parity Lien Claimholders and Priority Lien Claimholders.

 

“Class” means (i) in the case of Parity Lien Debt, all Series of Parity Lien
Debt, taken together and (ii) in the case of Priority Lien Debt, all Series of
Priority Lien Debt, taken together.

 

“Collateral” means all of the assets and property of any Grantor, whether real, personal
or mixed, constituting either Revolving Credit Collateral, Shared Collateral or
Separate Collateral.

 

“Collateral Trust Agreement” means that certain Collateral Trust Agreement
dated as of May 2, 2005 (as the same may be amended from time to time) by and
among the First Lien Term Loan Agent, the Trustees and the Collateral Trustee,
as amended, restated, modified or replaced from time to time.

 

“Collateral Trustee” has the meaning assigned to that term in the
preamble to this Agreement.

 

“Company” has the meaning assigned to that term in the preamble to this
Agreement.

 

“Copyright Licenses” means any and all present and future
agreements providing for the granting of any right in or to Copyrights (whether
such Grantor is licensee or licensor thereunder).

 

“Copyrights” means all present and future United States, and foreign copyrights
(including Community designs), including but not limited to copyrights in
software and databases, and all Mask Works (as defined under 17 U.S.C. 901 of
the U.S. Copyright Act), whether registered or unregistered, and, with respect
to any and all of the foregoing: (i) all registrations and applications
therefore, (iii) all rights corresponding thereto throughout the world, and
(iv) all rights to sue for past, present and future infringements thereof.

 

“Deposit Accounts” means all present and future “deposit
accounts” (as defined in Article 9 of the UCC).

 

“DIP Financing” has the meaning assigned to that term in Section 6.1.

 

4

 

“Discharge of Parity Lien Obligations” means, except to the extent otherwise
expressly provided in Section 5.5:

 

(1)                                  termination or expiration of all commitments
to extend credit that would constitute Parity Lien Debt;

 

(2)                                  payment in full in cash of the principal of
and interest (including interest accruing on or after the commencement of any
Insolvency or Liquidation Proceeding, whether or not such interest would be
allowed in such Insolvency or Liquidation Proceeding), on all Indebtedness
outstanding under the Parity Lien Documents and constituting Parity Lien Debt;

 

(3)                                  discharge or cash collateralization (at the
lower of (A) 105% of the aggregate undrawn amount and (b) the percentage of the
aggregate undrawn amount required for release of Liens under the terms of the
applicable Parity Lien Document) of all outstanding letters of credit constituting
Parity Lien Debt; and

 

(4)                                  payment in full in cash of all other Parity
Lien Obligations that are outstanding and unpaid at the time the Parity Lien
Debt is paid in full in cash (other than any obligations for taxes, costs,
indemnifications, reimbursements, damages and other liabilities in respect of
which no claim or demand for payment has been made at such time).

 

If a Discharge of Parity Lien Obligations occurs prior to the
termination of this Agreement in accordance with Section 8.2, to the
extent that additional Parity Lien Obligations are incurred or Parity Lien
Obligations are reinstated in accordance with Section 6.4, the Discharge
of Parity Lien Obligations shall (effective upon the incurrence of such
additional Parity Lien Obligations or reinstatement of such Parity Lien
Obligations, as applicable) be deemed to no longer be effective.

 

“Discharge of Priority Lien Obligations” means, except to the extent otherwise expressly
provided in Section 5.5:

 

(1)                                  termination or expiration of all commitments
to extend credit that would constitute Priority Lien Debt;

 

(2)                                  payment in full in cash of the principal of
and interest (including interest accruing on or after the commencement of any
Insolvency or Liquidation Proceeding, whether or not such interest would be
allowed in such Insolvency or Liquidation Proceeding), on all Indebtedness
outstanding under the Priority Lien Documents and constituting Priority Lien Obligations;

 

(3)                                  discharge or cash collateralization (at the
lower of (A) 105% of the aggregate undrawn amount and (b) the percentage of the
aggregate undrawn amount required for release of Liens under the terms of the
applicable Priority Lien Document) of all outstanding letters of credit
constituting Priority Lien Debt; and

 

(4)                                  payment in full in cash of all other Priority
Lien Obligations that are outstanding and unpaid at the time the Priority Lien
Debt is paid in full in cash (other than any

 

5

 

obligations for taxes, costs, indemnifications,
reimbursements, damages and other liabilities in respect of which no claim or
demand for payment has been made at such time).

 

If a Discharge of Priority Lien Obligations occurs prior to the
termination of this Agreement in accordance with Section 8.2, to the
extent that additional Priority Lien Obligations are incurred or Priority Lien
Obligations are reinstated in accordance with Section 6.4, the Discharge
of Priority Lien Obligations shall (effective upon the incurrence of such
additional Priority Lien Obligations or reinstatement of such Priority Lien
Obligations, as applicable) be deemed to no longer be effective.

 

“Discharge of Revolving Credit Obligations” means, except to the extent otherwise
expressly provided in Section 5.5:

 

(1)                                  termination or expiration of all commitments,
if any, to extend credit that would constitute Revolving Credit Obligations;

 

(2)                                  payment in full in cash of the principal of
and interest (including interest accruing on or after the commencement of any
Insolvency or Liquidation Proceeding, whether or not such interest would be
allowed in such Insolvency or Liquidation Proceeding), on all Indebtedness
outstanding under the Revolving Credit Loan Documents and constituting Revolving
Credit Obligations;

 

(3)                                  termination or cash collateralization (in an
amount and manner reasonably satisfactory to the Revolving Credit Agent, but in
no event greater than 105% of the aggregate undrawn face amount) of all letters
of credit issued under the Revolving Credit Loan Documents and constituting Revolving
Credit Obligations; and

 

(4)                                  payment in full in cash of all other
Revolving Credit Obligations that are outstanding and unpaid at the time the
Indebtedness constituting such Revolving Credit Obligations is paid in full in
cash (other than any obligations for taxes, costs, indemnifications, reimbursements,
damages and other liabilities in respect of which no claim or demand for payment
has been made at such time).

 

If a Discharge of Revolving Credit Obligations occurs prior to the
termination of this Agreement in accordance with Section 8.2, to the
extent that additional Revolving Credit Obligations are incurred or Revolving
Credit Obligations are reinstated in accordance with Section 6.4, the
Discharge of Revolving Credit Obligations shall (effective upon the incurrence
of such additional Revolving Credit Obligations or reinstatement of such
Revolving Credit Obligations, as applicable) be deemed to no longer be
effective.

 

“Discharge
of Secured Debt Obligations” means the occurrence of both the Discharge of Parity Lien Obligations
and the Discharge of Priority Lien Obligations.

 

“Disposition” has the meaning assigned to that term in Section 5.l(b).

 

“Enforcement” means, collectively or individually for any
one of the Revolving Credit Agent, the Collateral Trustee, or any Secured Debt
Representative when a Revolving Credit Default or a Secured Debt Default, as
the case may be, has occurred and is continuing,

 

6

 

any action taken by such Person to repossess, or
exercise any remedies with respect to, any material amount of Collateral or
commence the judicial enforcement of any of the rights and remedies under the
Revolving Credit Loan Documents or the Secured Debt Documents or under any
applicable law, but in all cases excluding (i) the imposition of a default rate
or late fee and (ii) the collection and application of Accounts or other monies
deposited from time to time in Bank Accounts or Securities Accounts against the
Revolving Credit Obligations pursuant to the Revolving Credit Loan Documents; provided,
however, the foregoing exclusion set forth in clause (ii) shall
immediately cease to apply upon the earlier of (x) the Revolving Credit Agent’s
delivery of written notice to the Borrowers that such exclusion no longer
applies, (y) the lapse of ten (10) consecutive Business Days after a Revolving
Credit Default in which no “Revolving Loans” or “Special Agent Advances” are
made and no “Letters of Credit” are issued (in each case, as defined in the
Revolving Credit Agreement), and (z) the termination of the Revolving Commitments
pursuant to Section 8.1 (or any other applicable provision) of the
Revolving Credit Agreement.

 

“Enforcement Notice” means a written notice delivered, at a time when a Revolving Credit
Default or Secured Debt Default has occurred and is continuing, by either Revolving
Credit Agent or Collateral Trustee to the other such Person announcing that an Enforcement
Period has commenced, specifying the relevant event of default, stating the
current balance of the Revolving Credit Obligations or the current balances
owing with respect to Parity Lien Obligations and Priority Lien Obligations, as
the case may be, and requesting the current balance owing of the Revolving
Credit Obligations or Parity Lien Obligations and Priority Lien Obligations, as
the case may be.

 

“Enforcement Period” means the period of time following the receipt by either Revolving
Credit Agent or Collateral Trustee of an Enforcement Notice from the other
until either (i) in the case of an Enforcement Period commenced by Collateral
Trustee, the Discharge of Secured Debt Obligations, or (ii) in the case of an
Enforcement Period commenced by Revolving Credit Agent, the Discharge of
Revolving Credit Obligations, or (iii) Revolving Credit Agent or Collateral
Trustee (as applicable) agree in writing to terminate the Enforcement Period.

 

“Equally and Ratably” means, in reference to sharing of Liens or proceeds thereof as between
holders of Secured Obligations within the same Class, “equally and ratably” as
defined in the Collateral Trust Agreement.

 

“Equipment”
means: (i) all “equipment” (as defined in Article 9 of the UCC), (ii) all
machinery, manufacturing equipment, data processing equipment, computers,
office equipment, furnishings, furniture, appliances, “fixtures” (as defined in
the UCC) and tools (in each case, regardless of whether characterized as
equipment under the UCC) and (iii) all accessions or additions thereto, all
parts thereof, whether or not at any time of determination incorporated or
installed therein or attached thereto, and all replacements therefore, wherever
located, now or hereafter existing, including any fixtures.

 

“Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible
into, or exchangeable for, Capital Stock).

 

7

 

“Financing Transactions” means the execution, delivery and initial
funding under the Revolving Credit Agreement and the First Lien Term Loan
Agreement and the issuance of the Notes.

 

“First Lien Term Loan Agent” has the meaning assigned to that term in the
preamble of this Agreement.

 

“First Lien Term Loan Agreement” has the meaning assigned to that term in the
recitals to this Agreement.

 

“First Lien Term Loan Documents” means the First Lien Term Loan Agreement, the
First Lien Term Loan Mortgages and the other Credit Documents (as defined in the
First Lien Term Loan Agreement) and each of the other agreements, documents and
instruments providing for or evidencing any other First Lien Term Loan Obligation,
and any other document or instrument executed or delivered at any time in
connection with any First Lien Term Loan Obligations, including any
intercreditor or joinder agreement among holders of First Lien Term Loan
Obligations to the extent such are effective at the relevant time, as each may
be amended, restated, supplemented, modified, renewed or extended from time to
time in accordance with the provisions of this Agreement.

 

“First Lien Term Loan Lenders” has the meaning assigned to that term in the recitals
to this Agreement.

 

“First Lien Term Loan Mortgages” means a
collective reference to each mortgage, deed of trust and any other document or
instrument under which any Lien on real property owned or leased by any Grantor
is granted to secure any First Lien Term Loan Obligations or (except for this
Agreement and the Collateral Trust Agreement) under which rights or remedies
with respect to any such Liens are governed.

 

“First Lien Term Loan Obligations” means all Obligations with respect to principal
of and interest and premium (if any) on Indebtedness incurred and outstanding
under the First Lien Term Loan Agreement and the other First Term Loan
Documents. “First Lien Term Loan Obligations” shall include all interest
accrued or accruing (or which would, absent commencement of an Insolvency or
Liquidation Proceeding, accrue) after commencement of an Insolvency or
Liquidation Proceeding in accordance with the rate specified in the relevant
First Lien Term Loan Document whether or not the claim for such interest is
allowed as a claim in such Insolvency or Liquidation Proceeding.

 

“Floating Rate Notes” has the
meaning assigned to that term in the recitals to this Agreement.

 

“Floating Rate Notes Indenture” has the meaning assigned to that term in the
recitals to this Agreement.

 

“Floating Rate Notes Trustee” has
the meaning assigned to that term in the recitals to this Agreement.

 

8

 

“General Intangibles” means all present and future “general
intangibles” (as defined in Article 9 of the UCC), but excluding “payment
intangibles” (as defined in Article 9 of the UCC), Hedge Agreements and
Intellectual Property and any rights thereunder.

 

“Grantors” means the Company, each Guarantor and each other Person that has or may
from time to time hereafter execute and deliver a Revolving Credit Collateral
Document, Parity Lien Collateral Document or Priority Lien Collateral Document
as a “Grantor” (or the equivalent thereof).

 

“Guarantor” has the meaning set forth in the preamble to this Agreement.

 

“Hedge Agreements” means any (i) interest rate swap agreements
(whether from fixed to floating or from floating to fixed), interest rate cap
agreements, interest rate collar agreements and other agreements or
arrangements designed for the purpose of fixing, hedging or swapping interest
rate risk; (ii) other agreements or arrangements designed to manage interest
rates or interest rate risk; and (iii) other agreements or arrangements
designed to protect such Person against fluctuations in currency exchange rates
or commodity prices.

 

“Hedging Obligation” of any Person means any Obligation of such
Person pursuant to any Hedge Agreement.

 

“Holdings” has the meaning set forth in the recitals to this Agreement.

 

“Indebtedness” means and includes all Obligations that
constitute “Indebtedness” within the meaning of the Revolving Credit Agreement
or the Parity Lien Documents or the Priority Lien Documents, as applicable.

 

“Insolvency or Liquidation Proceeding” means:

 

(1)                                  any voluntary or involuntary case or
proceeding under the Bankruptcy Code with respect to any Grantor;

 

(2)                                  any other voluntary or involuntary
insolvency, reorganization or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding
with respect to any Grantor or with respect to a material portion of their respective
assets;

 

(3)                                  any liquidation, dissolution, reorganization
or winding up of any Grantor whether voluntary or involuntary and whether or
not involving insolvency or bankruptcy; or

 

(4)                                  any assignment for the benefit of creditors
or any other marshalling of assets and liabilities of any Grantor.

 

“Instruments” means all present and future “instruments”
(as defined in Article 9 of the UCC).

 

9

 

“Intellectual Property” means, collectively, the Copyrights, the
Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the
Trademark Licenses, the Trade Secrets, and the Trade Secret Licenses.

 

“Intercompany Notes of Subsidiaries” means all indebtedness owing by any of the
Company’s Subsidiaries to the Company or any of the Company’s other
Subsidiaries, whether or not represented by a note or agreement.

 

“Intercreditor Agreement Joinder” means an agreement substantially in the form
of Exhibit A.

 

“Inventory” mean all present and future “inventory” (as defined in Article 9
of the UCC) including, without limitation, all goods held for sale or lease or
to be furnished under contracts of service or so leased or furnished, all raw
materials, work in process, finished goods, and materials used or consumed in
the manufacture, packing, shipping, advertising, selling, leasing, furnishing
or production of such inventory or otherwise used or consumed in any Grantor’s
business; all goods in which any Grantor has an interest in mass or a joint or
other interest or right of any kind; and all goods which are returned to or
repossessed by any Grantor, all computer programs embedded in any goods and all
accessions thereto and products thereof (in each case, regardless of whether
characterized as inventory under the UCC).

 

“Letter of Credit” means any present and future “letter of
credit” (as defined in Article 5 of the UCC).

 

“Lien” means any lien, mortgage, pledge, assignment,
security interest, charge or encumbrance of any kind (including any agreement
to give any of the foregoing, any conditional sale or other title retention
agreement, and any lease in the nature thereof) and any option, trust, UCC
financing statement or other preferential arrangement having the practical
effect of any of the foregoing.

 

“Lien Sharing and Priority Confirmation” means:

 

(1)                                  as to any Series of Parity Lien Debt, the
written agreement of the holders of such Series of Parity Lien Debt, as set
forth in the indentures, credit agreement or other agreement governing such
Series of Parity Lien Debt, for the enforceable benefit of all holders of each
existing and future Series of Priority Lien Debt and Parity Lien Debt, each
existing and future Priority Lien Representative and Parity Lien Representative
and each existing and future holder of “Permitted Liens” (as defined in the Senior
Secured Notes Indentures):

 

(a)                                  that all Parity Lien Obligations will be and
are secured Equally and Ratably by all Parity Liens at any time granted by the
Company or any other Guarantor to secure any Obligations in respect of such
Series of Parity Lien Debt, whether or not upon property otherwise constituting
collateral for such Series of Parity Lien Debt, and that all such Parity Liens
will be enforceable by the Collateral Trustee for the benefit of all holders of
Parity Lien Obligations Equally and Ratably; provided that holders of
any future Parity Lien Debt that constitutes a “security” for purposes of the
Securities Act of 1933 will not be entitled to be secured by any Separate
Collateral;

 

10

 

(b)                                 that the holders of Obligations in respect of
such Series of Parity Lien Debt are bound by the provisions of this Agreement
and the Collateral Trust Agreement, including the provisions relating to the
ranking of Parity Liens and the order of application of proceeds from the
enforcement of Parity Liens;

 

(c)                                  consenting to and directing the Collateral
Trustee to perform its obligations under the Collateral Trust Agreement and the
other Security Documents; and

 

(d)                                 consenting to the terms of this Agreement;
and

 

(2)                                  as to any Series of Priority Lien Debt, the
written agreement of the holders of such Series of Priority Lien Debt, as set forth
in the credit agreement, indenture or other agreement governing such Series of
Priority Lien Debt, for the enforceable benefit of all holders of each existing
and future Series of Parity Lien Debt, each existing and future Parity Lien
Representative and each existing and future holder of “Permitted Liens” (as
defined in the Senior Secured Notes Indentures):

 

(a)                                  that all Priority Lien Obligations will be
and are secured Equally and Ratably by all Priority Liens at any time granted
by the Company or any other Grantor to secure any Obligations in respect of
such Series of Priority Lien Debt, whether or not upon property otherwise
constituting collateral for such Series of Priority Lien Debt, and that all
such Priority Liens will be enforceable by the Collateral Trustee for the benefit
of all holders of Priority Lien Obligations Equally and Ratably; provided
that the holders of any future Priority Lien Debt that constitutes a “security”
for purposes of the Security Act of 1933, as amended, will be entitled to be
secured by any Separate Collateral;

 

(b)                                 that the holders of Obligations in respect of
such Series of Priority Lien Debt are bound by the provisions of this Agreement
and the Collateral Trust Agreement, including the provisions relating to the
ranking of Priority Liens and the order of application of proceeds from
enforcement of Priority Liens;

 

(c)                                  consenting to and directing the Collateral
Trustee to perform its obligations under the Collateral Trust Agreement and the
other Security Documents; and

 

(d)                                 consenting to the terms of this Agreement.

 

“Mortgaged Premises” means any real property which shall now or
hereafter be subject to a Parity Lien Mortgage or Priority Lien Mortgage, as
applicable.

 

“New Agent” has
the meaning assigned to that term in Section 5.5.

 

“New Debt Notice” has
the meaning assigned to that term in Section 5.5.

 

“Note Claimholders” means, at any relevant time, the holders of the Note Obligations,
including the Noteholders and the Trustees.

 

11

 

“Noteholder” means, at any relevant time, a Person in whose name a Note is registered.

 

“Note Obligations” means
all Obligations with respect to Notes outstanding under the Senior Secured Note
Indentures and the other applicable Security Documents. “Note Obligations”
shall include all interest accrued or accruing (or which would, absent
commencement of an Insolvency or Liquidation Proceeding, accrue) after
commencement of an Insolvency or Liquidation Proceeding in accordance with the
rate specified in the relevant Senior Secured Note Indenture whether or not the
claim for such interest is allowed as a claim in such Insolvency or Liquidation
Proceeding.

 

“Notes” has
the meaning assigned to that term in the recitals to this Agreement.

 

“Obligations” means all obligations of every nature of each
Grantor from time to time owed to any agent or trustee, the Revolving Credit
Claimholders, the Secured Debt Claimholders or any of them or their respective
Affiliates, in each case under the Revolving Credit Loan Documents or the
Secured Debt Documents, whether for principal, interest or payments for early
termination of Hedge Agreements, fees, expenses, indemnification or otherwise
and all guarantees of any of the foregoing.

 

“Parity Lien” means a Lien granted by a security document
to the Collateral Trustee, at any time, upon any property of the Company or any
other Guarantor to secure Parity Lien Obligations.

 

“Parity Lien Claimholder” means the holders of any Parity Lien
Obligation at that time, including the Parity Lien Representatives.

 

“Parity Lien Debt” means:

 

(1)                                  the Notes issued and the related guarantees
by the Guarantors incurred on the date of the Senior Secured Note Indentures
(including any related exchange notes); and

 

(2)                                  any other Indebtedness of the Company
(including additional notes), which may be guaranteed by the Guarantors, that
is secured Equally and Ratably with the Notes by a Parity Lien that was
permitted to be incurred and so secured under each applicable Secured Debt
Document; provided that:

 

(a)                                  the net proceeds are used to refund,
refinance, replace, defease, discharge or otherwise acquire or retire Priority
Lien Debt or other Parity Lien Debt; or

 

(b)                                 on the date of incurrence of such
Indebtedness, after giving pro forma effect to the incurrence thereof and the
application of the proceeds therefrom, the Secured Leverage Ratio would not be
greater than 4.0 to 1.0;

 

provided, further,
in the case of any Indebtedness referred to in clause (3) of this definition:

 

(a)                                  on or before the date on which such
Indebtedness is incurred by the Company, such Indebtedness is designated by the
Company, in an officers’ certificate

 

12

 

delivered to each Parity Lien Representative and the Collateral Trustee,
as “Parity Lien Debt” for the purposes of the Senior Secured Note Indentures
and the Collateral Trust Agreement; provided that no Series of Secured
Debt may be designated as both Parity Lien Debt and Priority Lien Debt;

 

(b)                                 such Indebtedness is governed by an
indenture, credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation; and

 

(c)                                  all requirements set forth in the Collateral
Trust Agreement as to the confirmation, grant or perfection of the Collateral
Trustee’s Liens to secure such Indebtedness or Obligations in respect thereof
are satisfied (and the satisfaction of such requirements and the other
provisions of this clause (c) will be conclusively established if the Company
delivers to the Collateral Trustee an officers’ certificate stating that such requirements
and other provisions have been satisfied and that such Indebtedness is “Parity
Lien Debt”).

 

“Parity Lien Default” means an “Event of Default” (as defined in
any of the Parity Lien Documents), which is no longer subject to any applicable
cure or notice period.

 

“Parity Lien Documents” means, collectively, the Senior Secured Note Indentures
and the indenture, credit agreement or other agreement governing each other
Series of Parity Lien Debt and the related Security Documents (other than any
Security Documents that do not secure Parity Lien Obligations).

 

“Parity Lien Mortgages” means a collective reference to each
mortgage, deed of trust and other document or instrument under which any Lien
on real property owned or leased by any Grantor is granted to secure any Parity
Lien Obligations or (except for this Agreement and the Collateral Trust
Agreement) under which rights or remedies with respect to any such Liens are
governed.

 

“Parity Lien Obligations” means
Parity Lien Debt and all other Obligations in respect thereof (including,
without limitation, all Note Obligations).

 

“Parity Lien Representative” means:

 

(1)                                  in the case of each Series of the Notes, the
applicable Trustee; or

 

(2)                                  in the case of any other Series of Parity
Debt, the trustee, agent or representative of the holders of such Series of
Parity Lien Debt who maintains the transfer register for such Series of Parity
Lien Debt and (a) is appointed as a Parity Lien Representative (for purposes
related to the administration of the Security Documents) pursuant to an
indenture, credit agreement or other agreement governing such Series of Parity
Lien Debt, together with its successors in such capacity, and (b) has become a
party to the Collateral Trust Agreement by executing a joinder in the form
required under the Collateral Trust Agreement.

 

“Patent Licenses” means all
present and future agreements providing for the granting of any right in or to
Patents (whether such Grantor is licensee or licensor thereunder).

 

13

 

“Patents” shall mean all United States and foreign patents and certificates of
invention, or similar industrial property rights, and applications for any of
the foregoing, including, but not limited to: (i) each patent and patent
application referred to from time to time on schedules to Revolving Credit
Collateral Documents, or Security Agreements relating to the Parity Lien
Obligations or Priority Lien Obligations, (ii) all reissues, divisions,
continuations, continuations-in-part, extensions, renewals, and reexaminations
thereof, (iii) all rights corresponding thereto throughout the world, (iv) all
inventions and improvements described therein, and (v) all rights to sue for
past, present and future infringements thereof.

 

“Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, governmental authority
or other entity.

 

“Pledged Collateral” has the meaning set forth in Section 5.4(a).

 

“Priority Lien” means a Lien granted by a security document
to the Collateral Trustee, at any time, upon any property of the Company or any
other Guarantor to secure Priority Lien Obligations.

 

“Priority Lien Claimholder” means, at any relevant time, the holders of
any Priority Lien Obligations at that time, including the Priority Lien
Representatives.

 

“Priority Lien Debt” means:

 

(1)                                  Indebtedness of the Company (which may be
guaranteed by the Guarantors) under the First Lien Term Loan Agreement that was
permitted to be incurred and secured under each applicable Secured Debt
Document (or as to which the lenders under such Credit Agreement obtained an
officers’ certificate at the time of incurrence to the effect that such Indebtedness
was permitted to be incurred and secured by all applicable Secured Debt Documents);

 

(2)                                  any other Indebtedness of the Company (which
may be guaranteed by the Guarantors) that is secured by a Priority Lien that
was permitted to be incurred and so secured under each applicable Secured Debt
Document; provided, in the case of any Indebtedness referred to in this
clause (2), that:

 

(a)                                  on or before the date on which such
Indebtedness is incurred, such Indebtedness is designated by the Company, in an
officers’ certificate delivered to each Secured Debt Representative and the
Collateral Trustee, as “Priority Lien Debt” for the purposes of the Secured
Debt Documents; provided that no Series of Secured Debt may be
designated as both Parity Lien Debt and Priority Lien Debt;

 

(b)                                 such Indebtedness is governed by an
indenture, credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation; and

 

(c)                                  all requirements set forth in the Collateral
Trust Agreement as to the confirmation, grant or perfection of the Collateral
Trustee’s Lien to secure such Indebtedness or Obligations in respect thereof
are satisfied (and the satisfaction of such requirements and the other
provisions of this clause (c) will be conclusively established if

 

14

 

the Company delivers to the Collateral Trustee an officers’ certificate
stating that such requirements and other provisions have been satisfied and
that such Indebtedness is “Priority Lien Debt”); and

 

(3)                                  Hedging Obligations of the Company (which may
be guaranteed by the Guarantors) incurred to hedge or manage interest rate risk
with respect to Priority Lien Debt or Parity Lien Debt, or to protect the
Company against fluctuations in currency exchange risks or commodity prices; provided
that:

 

(a)                                  such Hedging Obligations are secured by a
Priority Lien on all of the assets and properties that secure the Priority Lien
Debt in respect of which such Hedging Obligations are incurred; and

 

(b)                                 such Priority Lien is senior to or on a parity
with the Priority Liens securing the Priority Lien Debt in respect of which
such Hedging Obligations are incurred.

 

“Priority Lien Default” means an “Event of Default” (as defined in
any of the Priority Lien Documents), which is no longer subject to any
applicable cure or notice period.

 

“Priority Lien Documents” means the First Lien Term Loan Documents and
any other indenture, credit agreement or other agreement pursuant to which any
Priority Lien Debt is incurred and the related Security Documents (other than
any Security Documents that do not secure Priority Lien Obligations).

 

“Priority Lien Mortgages” means a collective reference to each First
Lien Term Loan Mortgage and each other mortgage, deed of trust and other
document or instrument under which any Lien on real property owned or leased by
any Grantor is granted to secure any Priority Lien Obligations or (except for
this Agreement and the Collateral Trust Agreement) under which rights or
remedies with respect to any such Liens are governed.

 

“Priority Lien Obligations” means the Priority Lien Debt and all other Obligations
in respect of Priority Lien Debt.

 

“Priority Lien Representative” means (1) the First Lien Term Loan Agent or
(2) in the case of any other Series of Priority Lien Debt, the trustee, agent
or representative of the holders of such Series of Priority Lien Debt who
maintains the transfer register for such Series of Priority Lien Debt and is
appointed as a representative of the Priority Lien Debt (for purposes related
to the administration of the Security Documents) pursuant to the credit
agreement or other agreement governing such Series of Priority Lien Debt.

 

“Priority Lien Standstill Period” has the meaning set forth in Section 3.1(a)(1).

 

“Real Estate Asset” means, at any time of determination, any
interest (fee, leasehold or otherwise) then owned by the Company or any Grantor
in any real property.

 

“Records” means all present and future “records” (as defined in Article 9 of
the UCC).

 

15

 

“Recovery” has the meaning set forth in Section 6.4.

 

“Refinance” means, in respect of any Indebtedness, to refinance, extend, renew,
defease, amend, modify, supplement, restructure, replace, refund or repay, or
to issue other indebtedness, in exchange or replacement for, such Indebtedness
in whole or in part. “Refinanced” and “Refinancing”
shall have correlative meanings.

 

“Revolving Commitments” means the “Revolving Commitments,” (as such
term is defined in the Revolving Credit Agreement).

 

“Revolving Credit Agent” has the meaning assigned to that term in the
preamble to this Agreement.

 

“Revolving Credit Agreement” has the meaning assigned to that term in the
recitals to this Agreement.

 

“Revolving Credit Claimholders” means, at any relevant time, the holders of
Revolving Credit Obligations at that time, including the Revolving Credit
Lenders and the agents under the Revolving Credit Loan Documents.

 

“Revolving Credit Collateral” means all now owned or hereafter acquired:
(a) Accounts, other than “payment intangibles” (as defined in Article 9 of
the UCC) which constitute identifiable proceeds of Shared Collateral, (b) all
Inventory or documents of title for any Inventory; (c) Deposit Accounts,
Securities Accounts (including all cash, marketable securities and other funds
held in or on deposit in either of the foregoing) Instruments (including
Intercompany Notes of Subsidiaries) and Chattel Paper; provided, however,
that to the extent that Instruments or Chattel Paper constitute identifiable
proceeds of Shared Collateral or Separate Collateral or other identifiable
proceeds of Shared Collateral or Separate Collateral are deposited or held in
any such Bank Accounts or Securities Accounts after an Enforcement Notice, then
(as provided in Section 3.5 below) such Instruments, Chattel Paper or
other identifiable proceeds shall be treated as Shared Collateral or Separate
Collateral, as the case may be; (d) Revolving Credit General Intangibles; (e)
Records, “supporting obligations” (as defined in Article 9 of the UCC) and
related Letters of Credit, commercial tort claims or other claims and causes of
action, in each case, to the extent related primarily to any of the foregoing;
and (f) substitutions, replacements, accessions, products and proceeds
(including, without limitation, insurance proceeds, licenses, royalties,
income, payments, claims, damages and proceeds of suit) of any or all of the
foregoing.

 

“Revolving Credit Collateral Documents” means the “Collateral Documents” (as defined
in the Revolving Credit Agreement) and any other agreement, document or
instrument pursuant to which a Lien is granted securing any Revolving Credit
Obligations or under which rights or remedies with respect to such Liens are
governed.

 

“Revolving Credit Default” means an “Event of Default” (as defined in
the Revolving Credit Agreement).

 

“Revolving Credit General Intangibles” means all General Intangibles pertaining to
the other items of property included within clauses (a), (b), (c), (e), and (f)
of the

 

16

 

definition of Revolving Credit Collateral,
including, without limitation, all contingent rights with respect to warranties
on Inventory or Accounts which are not yet “payment intangibles” (as defined in
Article 9 of the UCC).

 

“Revolving Credit Lenders” has the meaning assigned to that term in the
recitals to this Agreement.

 

“Revolving Credit Loan Documents” means the Revolving Credit Agreement, the
Revolving Credit Collateral Documents and the other Credit Documents (as defined
in the Revolving Credit Agreement) and each of the other agreements, documents
and instruments providing for or evidencing any other Revolving Credit
Obligation, and any other document or instrument executed or delivered at any
time in connection with any Revolving Credit Obligations, including any
intercreditor or joinder agreement among holders of Revolving Credit
Obligations, to the extent such are effective at the relevant time, as each may
be amended, supplemented, refunded, deferred, restructured, replaced or
refinanced from time to time in whole or in part (whether with the Revolving
Credit Agent and Revolving Credit Lenders or other agents and lenders or
otherwise), in each case in accordance with the provisions of this Agreement.

 

“Revolving Credit Obligations” means all Obligations outstanding under the
Revolving Credit Agreement and the other Revolving Credit Loan Documents.
“Revolving Credit Obligations” shall include all interest accrued or accruing
(or which would, absent commencement of an Insolvency or Liquidation
Proceeding, accrue) after commencement of an Insolvency or Liquidation
Proceeding in accordance with the rate specified in the relevant Revolving
Credit Loan Document whether or not the claim for such interest is allowed as a
claim in such Insolvency or Liquidation Proceeding.

 

“Revolving Credit Standstill Period” has the meaning set forth in Section 3.2(a)(1).

 

“Secured Debt” means, collectively, all Parity Lien Debt and
Priority Lien Debt.

 

“Secured Debt Claimholders” means, collectively, all Parity Lien
Claimholders and Priority Lien Claimholders.

 

“Secured Debt Default” means a Parity Lien Default or a Priority
Lien Default.

 

“Secured Debt Collateral Documents” means the “Collateral Documents” as
respectively defined in the First Lien Term Loan Agreement and any other
agreement, document or instrument pursuant to which a Lien is granted securing
any Secured Debt Obligations or under which rights or remedies with respect to
such Liens are governed.

 

“Secured Debt Documents” means the Collateral Trust Agreement, the
Parity Lien Documents and the Priority Lien Documents.

 

“Secured Debt Obligations” means, collectively, all Parity Lien
Obligations and Priority Lien Obligations.

 

17

 

“Secured Debt Representative” means each Parity Lien Representative and
each Priority Lien Representative.

 

“Secured Leverage Ratio” means the “Secured Leverage Ratio” as defined
in the Senior Secured Note Indentures.

 

“Securities Accounts” means all
present and future “securities accounts” (as defined in Article 8 of the
UCC), including all monies, “uncertificated securities,” and “securities
entitlements” (as defined in Article 8 of the UCC) contained therein.

 

“Security Documents” means this Agreement, the Collateral Trust
Agreement, each Lien Sharing and Priority Confirmation, and all security
agreements, pledge agreements, collateral assignments, mortgages, deeds of
trust, collateral agency agreements, control agreements or other grants or
transfers for security executed and delivered by the Company or any other
Grantor creating (or purporting to create) a Lien upon Collateral in favor of
the Collateral Trustee, as each may be amended, supplemented, refunded,
deferred, restructured, replaced or refinanced from time to time in whole or in
part (whether with the First Lien Term Loan Agent, First Lien Term Loan
Lenders, the Trustees and Noteholders existing on the date of this Agreement or
other agents, lenders, trustees and Noteholders or otherwise), in each case in
accordance with the provisions of this Agreement.

 

“Senior Secured Note Indentures” means,
collectively, the    % Senior Secured Notes Indenture and the
Floating Rate Notes Indenture.

 

“Separate Collateral” means Stock of Subsidiaries and Intercompany
Notes of Subsidiaries unless, at the relevant time of consideration, such
Intercompany Notes of Subsidiaries secure Revolving Credit Obligations.

 

“Series of Parity Lien Debt” means, severally, the Notes and each other issue or series of Parity
Lien Debt for which a single transfer register is maintained.

 

“Series of Priority Lien Debt” means, severally, the Indebtedness outstanding under the First Lien
Term Loan Agreement and any other credit facility that constitutes Priority
Lien Debt.

 

“Series of Secured
Debt” means each Series of Parity Lien Debt and
each Series of Priority Lien Debt.

 

“Shared Collateral” means all
now owned or hereafter acquired Collateral other than the Revolving Credit
Collateral, including, without limitation all: (a) Equipment; (b) Real Estate
Assets; (c) Intellectual Property; (d) Shared Lien General Intangibles; (e)
documents of title related to Equipment; (f) Records, “supporting obligations”
(as defined in Article 9 of the UCC) and related Letters of Credit,
commercial tort claims or other claims and causes of action, in each case, to the extent related primarily to the
foregoing; and (g) substitutions, replacements, accessions, products and
proceeds (including, without limitation, insurance proceeds, licenses,
royalties, income, payments, claims, damages and proceeds of suit) of any or
all of the foregoing.

 

18

 

“Shared Lien General Intangibles” means all General Intangibles which are not
Revolving Credit General Intangibles.

 

“Stock of Subsidiaries” means all Capital Stock of, and Equity
Interests in, Subsidiaries of the Company.

 

“Subsidiary” means, with respect to any specified Person:

 

(1)                                  any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that
effectively transfers voting power) to vote in the election of directors,
managers, trustees of the corporation, association or other business entity is
at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person (or a combination thereof);
and

 

(2)                                  any partnership (A) the sole general partner
or the managing general partner of which is such Person or a Subsidiary of such
Person or (B) the only general partners of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof); provided, however,
that notwithstanding the foregoing, Rumford Cogeneration Company Limited
Partnership, a Maine limited partnership, shall not constitute a Subsidiary of
the Borrower, unless and until the Borrower directly or indirectly acquires all
of the limited partner interests therein.

 

“Subsidiary Guarantors” has the meaning assigned to that term in the
preamble of this Agreement.

 

“Subsidiary Stock” means all
present and future equity securities of Subsidiaries of Holdings.

 

“Trademark Licenses” means any and all present and future
agreements providing for the granting of any right in or to Trademarks (whether
such Grantor is licensee or licensor thereunder).

 

“Trademarks” means all present and future United States, and foreign trademarks,
trade names, corporate names, company names, business names, fictitious
business names, Internet domain names, service marks, certification marks,
collective marks, logos, other source or business identifiers, designs and
general intangibles of a like nature, all registrations and applications for
any of the foregoing including, but not limited to: (i) all extensions or
renewals of any of the foregoing, (ii) all of the goodwill of the business
connected with the use of and symbolized by the foregoing, and (iii) the right
to sue for past, present and future infringement or dilution of any of the
foregoing or for any injury to goodwill.

 

“Trade Secret Licenses” means any and all present and future
agreements providing for the granting of any right in or to Trade Secrets (whether
such Grantor is licensee or licensor thereunder).

 

19

 

“Trade Secrets” means all present and future trade secrets
and other confidential or proprietary information and know-how, regardless of
whether such Trade Secret has been reduced to a writing or other tangible form,
including all documents and things embodying, incorporating, or referring in
any way to such Trade Secret, including but not limited to the right to sue for
past, present and future misappropriation or other violation of any Trade
Secret.

 

“Trustees” has the meaning assigned to that term in the recitals to this
Agreement.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the
State of New York or when the context implies, the Uniform Commercial Code as in
effect from time to time in any other applicable jurisdiction.

 

“Voting Stock” of any specified Person as of any date means
the Capital Stock of such Person that is at the time entitled to vote in the
election of the Board of Directors of such Person.

 

1.2                                 Terms Generally. The definitions of terms in this Agreement
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.” The word
“will” shall be construed to have the same meaning and effect as the word
“shall.” Unless the context requires otherwise:

 

(a)                                  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,
restated, supplemented, modified, renewed or extended;

 

(b)                                 any reference herein to any Person shall be
construed to include such Person’s permitted successors and assigns;

 

(c)                                  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;

 

(d)                                 all references herein to Sections shall be
construed to refer to Sections of this Agreement;

 

(e)                                  all references to terms defined in the New
York UCC shall have the meaning ascribed to them therein (unless otherwise
specifically defined herein); and

 

(f)                                    the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

Whenever any term used in this Agreement is defined or otherwise
incorporated by reference to the Senior Secured Note Indentures, such reference
shall be deemed to have the

 

20

 

same effect as if the definition of such term had been independently
set forth herein in full, and such term shall continue to have the meaning
established pursuant to the Senior Secured Note Indentures (subject to the
immediately preceding sentence of this subsection) notwithstanding the
termination of the Senior Secured Note Indentures or redemption of all Secured
Debt Obligations evidenced thereby.

 

II.                                     LIEN PRIORITIES.

 

2.1                                 Relative Priorities. Notwithstanding the date, time, method,
manner or order of grant, attachment or perfection of any Liens securing the
Secured Debt Obligations granted on the Collateral or of any Liens securing the
Revolving Credit Obligations granted on the Collateral and notwithstanding any
provision of any UCC, or any other applicable law or the Revolving Credit Loan
Documents or the Secured Debt Documents or any defect or deficiencies in, or
failure to perfect, the Liens securing the Revolving Credit Obligations or
Secured Debt Obligations or any other circumstance whatsoever, the Revolving
Credit Agent, on behalf of itself and/or the Revolving Credit Claimholders, the
Collateral Trustee and each Secured Debt Representative, for itself on behalf
of the respective Secured Debt Claimholders hereby each agrees that:

 

(a)                                  any Lien of the Revolving Credit Agent on the
Revolving Credit Collateral, whether now or hereafter held by or on behalf of
the Revolving Credit Agent or any Revolving Credit Claimholder or any agent or
trustee therefore, regardless of how acquired, whether by grant, possession,
statute, operation of law, subrogation or otherwise, shall be senior in all
respects and prior to any Lien on the Revolving Credit Collateral securing any
Secured Debt Obligations; and

 

(b)                                 any Lien of the Collateral Trustee or any
Secured Debt Representative on the Shared Collateral or the Separate
Collateral, whether now or hereafter held by or on behalf of the Collateral
Trustee or any Secured Debt Representative, any Secured Debt Claimholder or any
agent or trustee therefore regardless of how acquired, whether by grant,
possession, statute, operation of law, subrogation or otherwise, shall be
senior in all respects to any Liens on the Shared Collateral or Separate
Collateral which may secure any Revolving Credit Obligations.

 

2.2                                 Prohibition on Contesting Liens. The Revolving Credit Agent, Revolving
Credit Claimholders, the Collateral Trustee, each Secured Debt Representative
and the Secured Debt Claimholders, each agrees that it will not (and hereby
waives any right to) contest or support any other Person in contesting, in any
proceeding (including any Insolvency or Liquidation Proceeding), the
perfection, priority, validity or enforceability of a Lien held by or on behalf
of any of the Revolving Credit Claimholders or any of the Secured Debt
Claimholders in all or any part of the Collateral, or the provisions of this
Agreement; provided that nothing in this Agreement shall be construed to
prevent or impair the rights of the either the Revolving Credit Agent or any
Revolving Credit Claimholder, the Collateral Trustee, or the Secured Debt
Representatives or any Secured Debt Claimholder to enforce this Agreement,
including the provisions of this Agreement relating to the priority of the
Liens securing the Obligations as provided in Sections 2.1, 3.1 and 3.2.

 

21

 

2.3                                 No New Liens. So long as the Discharge of Revolving
Credit Obligations and the Discharge of Secured Debt Obligations have not
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against the Company or any other Grantor, the Revolving Credit
Agent, Revolving Credit Claimholders, the Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders, each agree that the Company
shall not, and shall not permit any other Grantor to:

 

(a)                                  grant or permit any additional Liens on any
asset or property to secure any Priority Lien Obligation unless it has granted
or concurrently grants a Lien on such asset or property to secure all of the
Priority Lien Obligations;

 

(b)                                 grant or permit any additional Liens on any
asset or property to secure any Parity Lien Obligations, unless it has granted
or concurrently grants a Lien on such asset or property to secure all of the
Secured Debt Obligations (except, with respect to Parity Lien Obligations, Separate Collateral); or

 

(c)                                  grant or permit any additional Liens on any
asset or property to secure any Revolving Credit Obligations unless it has
granted or concurrently grants a Lien on such asset or property to secure the
Priority Lien Obligations.

 

To
the extent any additional Liens are granted on any asset or property pursuant
to this Section 2.3, the priority of such additional Liens shall be
determined in accordance with Section 2.1 (and with respect to priorities
among the Parity Liens and Priority Liens, also the terms of the Collateral
Trust Agreement). In addition, to the extent that the foregoing provisions are
not complied with for any reason, without limiting any other rights and
remedies available hereunder, the Revolving Credit Agent, the Collateral
Trustee and each Secured Debt Representative, agree that any amounts received
by or distributed to any of them pursuant to or as a result of Liens granted in
contravention of this Section 2.3 shall be subject to Section 4.2.

 

III.                                 ENFORCEMENT.

 

3.1                                 Exercise of Remedies – Restrictions on
Collateral Trustee, and Secured Debt Representatives and Secured Debt
Claimholders.

 

(a)                                  Until the Discharge of Revolving Credit
Obligations has occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
the Collateral Trustee and each Secured Debt Representative and Secured Debt
Claimholder:

 

(1)                                  will not exercise or seek to exercise any
rights or remedies with respect to any Revolving Credit Collateral (including
the exercise of any right of setoff or any right under any Account Agreement,
landlord waiver or bailee’s letter or similar agreement or arrangement to which
the Collateral Agent, any Secured Debt Representative or any Secured Debt
Claimholder is a party) or institute any action or proceeding with respect to
such rights or remedies (including any action of foreclosure); provided,
however, that the Collateral Trustee may exercise any or all such rights
or remedies after the passage of a period of at least 180 days has elapsed
since the later of: (i) the date on which a Priority Lien Representative first
declares the existence of a Priority Lien Default and demands

 

22

 

the repayment of all the principal amount of any Priority Lien
Obligations; and (ii) the date on which the Revolving Credit Agent received
notice from the Collateral Trustee of such declarations of a Priority Lien
Default, (the “Priority Lien Standstill
Period”); provided,
further, however, that notwithstanding anything herein to the
contrary, in no event shall the Collateral Trustee, any Secured Debt
Representative or any Secured Debt Claimholder exercise any rights or remedies
with respect to the Revolving Credit Collateral if, notwithstanding the
expiration of the Priority Lien Standstill Period, the Revolving Credit Agent
or Revolving Credit Claimholders shall have commenced and be diligently
pursuing the exercise of their rights or remedies with respect to all or any
material portion of such Revolving Credit Collateral (prompt notice of such
exercise to be given to the Collateral Trustee);

 

(2)                                  will not contest, protest or object to any
foreclosure proceeding or action brought by the Revolving Credit Agent or any
Revolving Credit Claimholder or any other exercise by the Revolving Credit
Agent or any Revolving Credit Claimholder of any rights and remedies relating
to the Revolving Credit Collateral, whether under the Revolving Credit Loan
Documents or otherwise; and

 

(3)                                  subject to their rights under clause (a)(l)
above and except as may be permitted in Section 3.1(c), will not object to
the forbearance by the Revolving Credit Agent or the Revolving Credit Claimholders
from bringing or pursuing any Enforcement;

 

provided, however,
that, in the case of (1), (2) and (3) above, the Liens granted to secure the
Priority Lien Obligations shall attach to any proceeds resulting from actions
taken by the Revolving Credit Agent or any Revolving Credit Claimholder in
accordance with this Agreement after application of such proceeds to the extent
necessary to meet the requirements of a Discharge of Revolving Credit
Obligations.

 

(b)                                 Until the Discharge of Revolving Credit Obligations
has occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against the Company or any other Grantor, the Revolving Credit
Agent and the Revolving Credit Claimholders shall have the right to enforce
rights, exercise remedies (including set-off and the right to credit bid their
debt) and, in connection therewith (including voluntary Dispositions of
Revolving Credit Collateral by the respective Grantors after a Revolving Credit
Default) make determinations regarding the release, disposition, or
restrictions with respect to the Revolving Credit Collateral without any
consultation with or the consent of the Collateral Trustee, any Secured Debt
Representative or any Secured Debt Claimholder; provided, however,
that the Lien securing the Priority Lien Obligations shall remain on the
proceeds (other than those properly applied to the Revolving Credit
Obligations) of such Collateral released or disposed of subject to the relative
priorities described in Section 2. In exercising rights and remedies with
respect to the Revolving Credit Collateral, the Revolving Credit Agent and the
Revolving Credit Claimholders may enforce the provisions of the Revolving
Credit Loan Documents and exercise remedies thereunder, all in such order and
in such manner as they may determine in the exercise of their sole discretion.
Such exercise and enforcement shall include the rights of an agent appointed by
them to sell or otherwise dispose of the Revolving Credit Collateral upon
foreclosure, to incur expenses in connection with such sale or disposition, and
to exercise

 

23

 

all the rights and remedies of a secured creditor under the UCC and of
a secured creditor under the Bankruptcy Laws of any applicable jurisdiction.

 

(c)                                  Notwithstanding the foregoing, the Collateral
Trustee, any Secured Debt Representative and any Secured Debt Claimholder
(unless, as among the Secured Debt Claimholders, the Collateral Trust Agreement
provides to the contrary) may:

 

(1)                                  file a claim or statement of interest with
respect to the Secured Debt Obligations; provided that an Insolvency or
Liquidation Proceeding has been commenced by or against the Company or any
other Grantor;

 

(2)                                  take any action (not adverse to the priority
status of the Liens on the Revolving Credit Collateral, or the rights of the
Revolving Credit Agent or any Revolving Credit Claimholder to exercise remedies
in respect thereof) in order to create, perfect, preserve or protect its Lien
on any of the Collateral;

 

(3)                                  file any necessary responsive or defensive
pleadings in opposition to any motion, claim, adversary proceeding or other
pleading made by any Person objecting to or otherwise seeking the disallowance
of the claims of the Secured Debt Claimholders, including any claims secured by
the Revolving Credit Collateral, if any, in each case in accordance with the
terms of this Agreement;

 

(4)                                  file any pleadings, objections, motions or
agreements which assert rights or interests available to unsecured creditors of
the Grantors arising under either any Insolvency or Liquidation Proceeding or
applicable non-bankruptcy law, in each case not inconsistent with the terms of
this Agreement;

 

(5)                                  vote on any plan of reorganization, file any
proof of claim, make other filings and make any arguments and motions that are,
in each case, in accordance with the terms of this Agreement, with respect to
the Secured Debt Obligations and the Shared Collateral or Separate Collateral;

 

(6)                                  exercise any of its rights or remedies with
respect to any of the Revolving Credit Collateral after the termination of the
Priority Lien Standstill Period to the extent permitted by Section 3.l(a)(l);
and

 

(7)                                  make a cash bid on all or any portion of the
Revolving Credit Collateral in any foreclosure proceeding or action.

 

The Collateral Trustee and each Secured Debt Representative, on behalf
of itself and/or its respective Secured Debt Claimholders, agrees that it will
not take or receive any Revolving Credit Collateral or any proceeds of such Revolving
Credit Collateral in connection with the exercise of any right or remedy
(including set-off) with respect to any such Revolving Credit Collateral in its
capacity as a creditor in violation of this Agreement.  Without limiting the generality of the
foregoing, unless and until the Discharge of Revolving Credit Obligations has
occurred, except as expressly provided in Sections 3.1(a), 6.3(c)(l) and this Section 3.1(c),
the sole right of the Collateral Trustee and any Secured Debt Representative or
Secured Debt Claimholder with respect to the Revolving Credit Collateral is to
hold a Lien (if any) on such

 

24

 

Collateral
pursuant to the respective Secured Debt Documents for the period and to the
extent granted therein and to receive a share of the proceeds thereof, if any,
after the Discharge of Revolving Credit Obligations has occurred.

 

(d)                                 Subject to Sections 3.1(a) and (c) and Section 6.3(c)(1):

 

(1)                                  Collateral Trustee and each Secured Debt
Representative, for itself and/or on behalf of its respective Secured Debt
Claimholders, agrees that it will not take any action that would hinder any
exercise of remedies under the Revolving Credit Loan Documents or that is
otherwise prohibited hereunder, including any sale, lease, exchange, transfer
or other disposition of the Revolving Credit Collateral, whether by foreclosure
or otherwise;

 

(2)                                  Collateral Trustee and each Secured Debt
Representative, for itself and/or on behalf of its respective Secured Debt
Claimholders, hereby waives any and all rights the Collateral Trustee, such
Secured Debt Representative and the respective Secured Debt Claimholders, as
applicable, may have as a junior lien creditor or otherwise to object to the
manner in which the Revolving Credit Agent or the Revolving Credit Claimholders
seek to enforce or collect the Revolving Credit Obligations or the Liens
securing the Revolving Credit Obligations granted in any of the Revolving
Credit Loan Documents or undertaken in accordance with this Agreement,
regardless of whether any action or failure to act by or on behalf of the
Revolving Credit Agent or Revolving Credit Claimholders is adverse to the
interest of the Secured Debt Claimholders;

 

(3)                                  The Collateral Trustee and each Secured Debt
Representative hereby acknowledges and agrees that no covenant, agreement or
restriction contained in any Secured Debt Document (other than this Agreement)
shall be deemed to restrict in any way the rights and remedies of the Revolving
Credit Agent or the Revolving Credit Claimholders with respect to the
enforcement of the Liens on the Revolving Credit Collateral as set forth in
this Agreement and the Revolving Credit Loan Documents.

 

(e)                                  Except as otherwise specifically set forth in
Sections 3.1(a) and (d) and 3.5, the Collateral Trustee, the Secured Debt
Representatives and Secured Debt Claimholders may exercise rights and remedies
as unsecured creditors against the Company or any other Grantor that has
guaranteed or granted Liens to secure the Secured Debt Obligations, and the
Collateral Trustee may exercise rights and remedies with respect to the Shared
Collateral and the Separate Collateral, in each case, in accordance with the
terms of the Secured Debt Documents and applicable law; provided, however,
that in the event that the Collateral Trustee, any Secured Debt Representative
or Secured Debt Claimholder becomes a judgment Lien creditor in respect of
Revolving Credit Collateral as a result of its enforcement of its rights as an
unsecured creditor with respect to the Secured Debt Obligations, such judgment
Lien shall be subject to the terms of this Agreement for all purposes
(including in relation to the Revolving Credit Obligations) as the other Liens
securing the Secured Debt Obligations are subject to this Agreement.

 

(f)                          Nothing in this Agreement shall prohibit the
receipt by the Collateral Trustee, any Secured Debt Representative or Secured
Debt Claimholder of the required payments of interest, principal and other
amounts owed in respect of its Secured Debt

 

25

 

Obligations, so long as such receipt is not the direct or indirect
result of the exercise by Collateral Trustee, such Secured Debt Representative
or Secured Debt Claimholder of rights or remedies as a secured creditor in
respect of the Revolving Credit Collateral (including set-off) or enforcement
in contravention of this Agreement of any Lien held by any of them. Nothing in
this Agreement impairs or otherwise adversely affects any rights or remedies the
Revolving Credit Agent or the Revolving Credit Claimholders may have against
the Grantors under the Revolving Credit Loan Documents.

 

3.2                                 Exercise of Remedies – Restrictions on
Revolving Credit Agent and Revolving Credit Claimholders.

 

(a)                                  Until the Discharge of Secured Debt
Obligations has occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
the Revolving Credit Agent and Revolving Credit Claimholders:

 

(1)                                  will not exercise or seek to exercise any
rights or remedies with respect to any Shared Collateral or Separate Collateral
(including the exercise of any right of setoff or any right under any Account
Agreements, landlord waiver or bailee’s letter or similar agreement or arrangement
to which the Revolving Credit Agent, any Revolving Credit Claimholder is a
party) or institute any action or proceeding with respect to such rights or
remedies (including any action of foreclosure); provided, however,
the Revolving Credit Agent may exercise the rights provided for in Section 3.3
(with respect to any Access Period) and may exercise any or all such rights or
remedies after the passage of a period of at least 180 days has elapsed since
the later of: (x) the date on which the Revolving Credit Agent declared the
existence of any Revolving Credit Default and demanded the repayment of all the
principal amount of any Revolving Credit Obligations; and (y) the date on which
the Collateral Trustee received notice from the Revolving Credit Agent of such
declarations of any Revolving Credit Default, (the “Revolving
Credit Standstill Period”); provided, further, however,
that notwithstanding anything herein to the contrary, in no event shall the
Revolving Credit Agent or any Revolving Credit Claimholder exercise any rights
or remedies (other than those under Section 3.3) with respect to the
Shared Collateral or Separate Collateral if, notwithstanding the expiration of
the Revolving Credit Standstill Period, the Collateral Trustee shall have commenced and be diligently pursuing the exercise of its rights or remedies with
respect to all or any material portion of such Collateral (prompt
notice of such exercise to be given to the Revolving Credit Agent);

 

(2)                                  will not contest, protest or object to any foreclosure
proceeding or action brought by the Collateral Trustee, any Secured Debt
Representative or any Secured Debt Claimholder or any other exercise by the
Collateral Trustee, any Secured Debt Representative or any Secured Claimholder
of any rights and remedies relating to the Shared Collateral or Separate
Collateral, whether under the Secured Debt Documents or otherwise; and

 

(3)                                  subject to their rights under clause (a)(1)
above and except as may be permitted in Section 3.2(c), will not object to
the forbearance by the Collateral Trustee, any Secured

 

26

 

Debt Representative or any Secured Debt Claimholder from bringing or
pursuing any Enforcement;

 

provided, however,
that in the case of (1), (2) and (3) above, the Liens (if any) granted to
secure the Revolving Credit Obligations shall attach to any proceeds resulting
from actions taken by the Collateral Trustee, any Secured Debt Representative
and any Secured Debt Claimholder in accordance with this Agreement after
application of such proceeds to the extent necessary to meet the requirements
of a Discharge of Secured Debt Obligations.

 

(b)                                 Until the Discharge of Secured Debt
Obligations has occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
the Collateral Trustee, the Secured Debt Representatives and the Secured Debt
Claimholders shall have the right to enforce rights, exercise remedies
(including set-off and the right to credit bid their debt) and make, in
connection therewith (including voluntary Dispositions of Shared Collateral or
Separate Collateral by the respective Grantors after a Secured Debt Default)
determinations regarding the release, disposition, or restrictions with respect
to the Shared Collateral or Separate Collateral without any consultation with
or the consent of the Revolving Credit Agent or any Revolving Credit
Claimholder; provided, however, that the Lien (if any) securing
the Revolving Credit Obligations shall remain on the proceeds (other than those
properly applied to the Secured Debt Obligations) of such Collateral released
or disposed of subject to the relative priorities described in Section 2.
In exercising rights and remedies with respect to the Shared Collateral or the
Separate Collateral, the Collateral Trustee, the Secured Debt Representatives
and the Secured Debt Claimholders may enforce the provisions of the Secured
Debt Documents and exercise remedies thereunder, all in such order and in such
manner as they may determine in the exercise of their sole discretion. Such
exercise and enforcement shall include the rights of an agent appointed by them
to sell or otherwise dispose of the Shared Collateral and Separate Collateral
upon foreclosure, to incur expenses in connection with such sale or
disposition, and to exercise all the rights and remedies of a secured creditor
under the UCC and of a secured creditor under the Bankruptcy Laws of any
applicable jurisdiction.

 

(c)                                  Notwithstanding the foregoing, the Revolving
Credit Agent and Revolving Credit Claimholders may:

 

(1)                                  file a claim or statement of interest with
respect to the Revolving Credit Obligations; provided that an Insolvency
or Liquidation Proceeding has been commenced by or against the Company or any
other Grantor;

 

(2)                                  take any action (not adverse to the priority
status of the Liens of the Collateral Trustee on the Shared Collateral and
Separate Collateral) in order to create, perfect, preserve or protect its Lien
on any of the Revolving Credit Collateral;

 

(3)                                  file any necessary responsive or defensive
pleadings in opposition to any motion, claim, adversary proceeding or other
pleading made by any Person objecting to or otherwise seeking the disallowance
of the claims of the Revolving Credit Claimholders;

 

27

 

(4)                                  file any pleadings, objections, motions or
agreements which assert rights or interests available to unsecured creditors of
the Grantors arising under either any Insolvency or Liquidation Proceeding or
applicable non-bankruptcy law, in each case not inconsistent with the terms of
this Agreement;

 

(5)                                  vote on any plan of reorganization, file any
proof of claim, make other filings and make any arguments and motions that are,
in each case, in accordance with the terms of this Agreement, with respect to
the Revolving Credit Obligations and the Revolving Credit Collateral;

 

(6)                                  exercise any of its rights or remedies with
respect to any of the Collateral after the termination of the Revolving Credit
Standstill Period, to the extent permitted by Section 3.2(a)(l); and

 

(7)                                  make a cash bid on all or any portion of the
Shared Collateral or Separate Collateral in any foreclosure proceeding or
action.

 

The Revolving Credit Agent, on behalf of itself and the Revolving
Credit Claimholders, agrees that it will not take or receive any Shared
Collateral or Separate Collateral or any proceeds of such Collateral in
connection with the exercise of any right or remedy (including set-off) with
respect to any such Collateral in its capacity as a creditor in violation of
this Agreement.

 

(d)                                 Subject to Sections 3.2(a) and (c) and
Sections 3.3 and 6.3(c)(2):

 

(1)                                  the Revolving Credit Agent, on behalf of
itself and the Revolving Credit Claimholders, agrees that the Revolving Credit
Agent and the Revolving Credit Claimholders will not take any action that would
hinder any exercise of remedies by the Collateral Trustee under the Secured
Debt Documents or that is otherwise prohibited hereunder, including any sale,
lease, exchange, transfer or other disposition of the Shared Collateral or
Separate Collateral, whether by foreclosure or otherwise;

 

(2)                                  the Revolving Credit Agent, on behalf of
itself and the Revolving Credit Claimholders, hereby waives any and all rights
it or the Revolving Credit Claimholders may at any time have as a junior lien
creditor or otherwise to object to the manner in which the Collateral Trustee
seeks to enforce or collect the Secured Debt Obligations or the Liens securing
the Shared Collateral and Separate Collateral granted in any of the Secured
Debt Documents or undertaken in accordance with this Agreement, regardless of
whether any action or failure to act by or on behalf of the Secured Debt
Representatives or Secured Debt Claimholders is adverse to the interest of the
Revolving Credit Claimholders; and

 

(3)                                  the Revolving Credit Agent hereby
acknowledges and agrees that no covenant, agreement or restriction contained in
the Revolving Credit Collateral Documents, or any other Revolving Credit Loan
Document (other than this Agreement), shall be deemed to restrict in any way
the rights and remedies of the Collateral Trustee, any Secured Debt
Representative or Secured Debt Claimholder with respect to the enforcement of
its Liens

 

28

 

on the Shared Collateral or Separate Collateral as
set forth in this Agreement and the Secured Debt Documents.

 

(e)                                  Except as otherwise specifically set forth in
Sections 3.2(a) and (d) and 3.5, the Revolving Credit Agent and the Revolving
Credit Claimholders may exercise rights and remedies as unsecured creditors
against the Company or any other Grantor that has guaranteed or granted Liens
to secure the Revolving Credit Obligations and may exercise rights and remedies
with respect to the Revolving Credit Collateral, in each case, in accordance
with the terms of the Revolving Credit Loan Documents and applicable law; provided,
however, that in the event that any Revolving Credit Claimholder becomes
a judgment Lien creditor in respect of Shared Collateral or Separate Collateral
as a result of its enforcement of its rights as an unsecured creditor with
respect to the Revolving Credit Obligations, such judgment Lien shall be
subject to the terms of this Agreement for all purposes (including in relation
to the Secured Debt Obligations) as the other Liens securing the Revolving
Credit Obligations are subject to this Agreement.

 

(f)                                    Nothing in this Agreement shall prohibit the
receipt by the Revolving Credit Agent or any Revolving Credit Claimholder of
the required payments of interest, principal and other amounts owed in respect
of the Revolving Credit Obligations, so long as such receipt is not the direct or indirect result of the
exercise by the Revolving Credit Agent or any Revolving Credit Claimholder of
rights or remedies as a secured creditor in respect of the Shared Collateral or
Separate Collateral (including set-off) or enforcement in contravention of this
Agreement of any Lien held by any of them. Nothing in this Agreement impairs or
otherwise adversely affects any rights or remedies the Collateral Trustee, the
Secured Debt Representatives or the Secured Debt Claimholders may have against
the Grantors under the Secured Debt Documents.

 

3.3                                 Exercise of Remedies – Collateral Access
Rights.

 

(a)                                  The Revolving Credit Agent, Collateral
Trustee and the Secured Debt Representatives agree not to commence Enforcement
until an Enforcement Notice has been given to the Collateral Trustee or the
Revolving Credit Agent, as the case may be. Subject to the provisions of
Sections 3.1 and 3.2 above, either the Revolving Credit Agent or the Collateral
Trustee may, to the extent permitted by applicable law, join in any judicial
proceedings commenced by the other Person to enforce Liens on the Collateral,
provided that neither such Person, nor the Revolving Credit Claimholders or
Secured Debt Claimholders, as the case may be, shall interfere with the
Enforcement actions of the other with respect to Collateral in which such party
or its Secured Debt Representative has the benefit of the priority Lien in
accordance herewith.

 

(b)                                 If the Collateral Trustee or any Secured Debt
Representative or any of their respective agents or representatives, or any
third party pursuant to any Enforcement undertaken by the Collateral Trustee or
any Secured Debt Representative, as applicable, or any receiver, shall obtain
possession or physical control of any of the Mortgaged Premises, the Collateral
Trustee or such Secured Debt Representative, as applicable, shall promptly
notify the Revolving Credit Agent and each Priority Lien Representative of that
fact and the Revolving Credit Agent (or, following the Discharge of Revolving
Credit Obligations, each

 

29

 

Priority Lien Representative) shall, within ten (10)
Business Days thereafter, notify Collateral Trustee or Secured Debt
Representative or, if applicable, any such third party (at such address to be
provided by the Collateral Trustee or such Secured Debt Representative, as
applicable, in connection with the applicable Enforcement), as to whether the
Revolving Credit Agent (or, following the Discharge of Revolving Credit
Obligations, each Priority Lien Representative) desires to exercise (or in the
case of a Priority Lien Representative, cause the Collateral Trustee to
exercise on behalf of the Priority Lien Claimholders) access rights under this
Agreement, at which time the parties shall confer in good faith to coordinate
with respect to the Revolving Credit Agent’s (or Collateral Trustee’s) exercise
of such access rights. Access rights may apply to differing parcels of
Mortgaged Premises at differing times (i.e. the Collateral Trustee may obtain
possession of one plant at a different time than it obtains possession of other
properties), in which case, a differing Access Period may apply to each such
property.

 

(c)                                  Upon delivery of notice to the Collateral
Trustee or the relevant Secured Debt Representative as provided in Section 3.3(b),
the Access Period shall commence for the subject parcel of Mortgaged Premises.
During the Access Period, Revolving Credit Agent (or, following the Discharge
of Revolving Credit Obligations, the Collateral Trustee on behalf of each
Priority Lien Claimholder) and its agents, representatives and designees shall
have a non-exclusive right to have access to, and a rent free right to use, the
Shared Collateral for the purpose of arranging for and effecting the sale or
disposition of Revolving Credit Collateral, including the production,
completion, packaging and other preparation of such Revolving Credit Collateral
for sale or disposition. During any such Access Period, Revolving Credit Agent
(or, following the Discharge of Revolving Credit Obligations, the Collateral
Trustee on behalf of each Priority Lien Claimholder) and its representatives
(and persons employed on their behalf), may continue to operate, service,
maintain, process and sell the Revolving Credit Collateral, as well as to
engage in bulk sales of Revolving Credit Collateral. Revolving Credit Agent
(or, following the Discharge of Revolving Credit Obligations, the Collateral
Trustee on behalf of each Priority Lien Claimholder) shall take proper care of
any Shared Collateral that is used by it during the Access Period and repair
and replace any damage (ordinary wear-and-tear excepted) caused by it or its agents,
representatives or designees and comply with all applicable laws in connection
with its use or occupancy of the Shared Collateral. The Revolving Credit Agent
and the Revolving Credit Claimholders (or, following the Discharge of Revolving
Obligations, each Priority Lien Representative instructing the Collateral
Trustee to act on its behalf) shall indemnify and hold harmless the Collateral
Trustee or the relevant Secured Debt Claimholders for any injury or damage to
Persons or property caused by the acts or omissions of Persons under its
control. Revolving Credit Agent, Collateral Trustee and each Secured Debt
Representative shall cooperate and use reasonable efforts to ensure that their
activities during the Access Period as described above do not interfere
materially with the activities of the other as described above, including the
right of Collateral Trustee or any Secured Debt Representative to commence
foreclosure of the Parity Lien Mortgages or Priority Lien Mortgages or to show
the Shared Collateral to prospective purchasers and to ready the Shared
Collateral for sale.

 

(d)                                 If any order or injunction is issued or stay
is granted which prohibits Revolving Credit Agent (or, following the Discharge
of Revolving Credit Obligations, the Collateral Trustee, acting pursuant to
instructions from a Priority Lien Representative) from exercising any of its
rights hereunder, then at Revolving Credit Agent’s (or, following the

 

30

 

Discharge of Revolving Credit Obligations, the
respective Priority Lien Representative’s) option, the Access Period granted
under this Section 3.3 shall be stayed during the period of such
prohibition and shall continue thereafter for the number of days remaining as
required under this Section 3.3. If the Collateral Trustee or any Secured
Debt Representative shall foreclose or otherwise sell any of the Shared
Collateral, such Person will notify the buyer thereof of the existence of this
Agreement and that the buyer is acquiring such Collateral subject to the terms
of this Agreement.

 

(e)                                  The Grantors hereby agree with the Collateral
Trustee and the Secured Debt Representatives that Revolving Credit Agent (or,
following the Discharge of Revolving Credit Obligations, the Collateral Trustee
on behalf of the Priority Lien Claimholders) shall have access, during the
Access Period, as described herein and each such Grantor that owns any of the
Mortgaged Premises grants a non-exclusive easement in gross over its property
to permit the uses by Revolving Credit Agent (or, following the Discharge of
Revolving Credit Obligations, the Collateral Trustee on behalf of the Priority
Lien Claimholders), contemplated by this Section 3.3. The Collateral
Trustee and each Secured Debt Representative consents to such easement and to
the recordation of the Collateral Access Easement Agreement substantially in
the form attached as Exhibit B hereto
in the relevant real estate documents with respect to each parcel of Real
Estate that is to be hereafter subject to either a Priority Lien Mortgage or
Parity Lien Mortgage and agrees, upon request by Revolving Collateral Agent
(or, following the Discharge of Revolving Credit Obligations, the Collateral
Trustee on behalf of the Priority Lien Claimholders), to execute and permit the
recording of the Subordination of Mortgage/Deed of Trust, substantially in the
form attached as Exhibit C hereto.
Revolving Credit Agent and each Priority Lien Representative each agrees that
upon either a Discharge of Revolving Credit Obligations or a Discharge of
Priority Lien Obligations, as the case may be, or upon the expiration of the
final Access Period with respect to any parcel of property covered by a
Priority Lien Mortgage or Parity Lien Mortgage, it shall, upon request, execute
and deliver to the Collateral Trustee, or if a Discharge of Secured Debt
Obligations has occurred, to the respective Grantor, such documentation, in
recordable form, as may reasonably be requested to terminate any and all rights
of the Revolving Credit Agent with respect to such Access Periods.

 

3.4                                 Exercise of Remedies – Intellectual Property
Rights/Access to Information.
Collateral Trustee and each Secured Debt Representative hereby grants (to the
full extent of their respective rights and interests) the Revolving Credit
Agent (and, following the Discharge of Revolving Credit Obligations, the
Collateral Trustee, for the benefit of the Priority Lien Claimholders) and its
agents, representatives and designees (a) a royalty free, rent free license and
lease to use all of the Shared Collateral, including any computer or other data
processing Equipment and Intellectual Property, to collect all Accounts or
amounts owing under Instruments or Chattel Paper, to copy, use or preserve any
and all information relating to any of the Collateral, and to complete the
manufacture, packaging and sale of (i) work-in-process, (ii) raw materials and
(iii) complete inventory and (b) a royalty free license (which will be binding
on any successor or assignee of the Intellectual Property) to use any and all
Intellectual Property at any time to in connection with its Enforcement; provided,
however, the royalty free, rent free license and lease granted in clause
(a) with respect to Equipment shall immediately expire upon the sale, lease,
transfer or other disposition of such Equipment.

 

31

 

3.5                                 Exercise of Remedies – Set Off and Tracing of
and Priorities in Proceeds. Collateral
Trustee and each Secured Debt Representative, for itself and/or on behalf of
the Secured Debt Claimholders, each acknowledges and agrees that, to the extent
any such Person exercises its rights of setoff against any Grantors’ Deposit
Accounts, Securities Accounts or other assets, the amount of such setoff shall
be deemed to be the Revolving Credit Collateral to be held and distributed
pursuant to Section 4.3; provided, however, that the
foregoing shall not apply to any setoff by any such Person against any Shared
Collateral to the extent applied to payment of Secured Debt. Collateral Trustee
and each Secured Debt Representative, for itself and/or on behalf of the
Secured Debt Claimholders agree that prior to an issuance of an Enforcement
Notice all funds deposited under Account Agreements and then applied to the
Revolving Credit Obligations shall be treated as Revolving Credit Collateral
and, unless the Revolving Credit Agent (or, following the Discharge of
Revolving Credit Obligations, the relevant Priority Lien Representative or the
Collateral Trustee) has actual knowledge to the contrary, any claim that
payments made to Revolving Credit Agent (or, following the Discharge of
Revolving Credit Obligations, the Priority Lien Claimholders) through the bank
accounts that are subject to Account Agreements are proceeds of or otherwise constitute
Shared Collateral, are waived. Revolving Credit Agent, Revolving Claimholders,
the Collateral Trustee, the Secured Debt Representatives and the Secured Debt
Claimholders, each agrees that, prior to an issuance of an Enforcement Notice,
any proceeds of Collateral, whether or not deposited under Account Agreements,
which are used by any Grantor to acquire other property which is Collateral
shall not (as among the Revolving Credit Agent, the Collateral Trustee, the
Secured Debt Representatives and the various Claimholders) be treated as
proceeds of Collateral for purposes of determining the relative priorities in
the Collateral which was so acquired.

 

3.6                                 Until the Discharge of Revolving Credit
Obligations has occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
the Collateral Trustee, the Secured Debt Representatives and the Secured Debt
Claimholders each agree they will not exercise or seek to exercise any rights
or remedies they may have, or hereafter acquire, under that certain Cash
Management Intercreditor Agreement dated as of the date hereof by and among
Escanaba Timber LLC, the Company, Holdings, the Revolving Credit Agent, the
Collateral Trustee and General Electric Capital Corporation.

 

IV.                                PAYMENTS.

 

4.1                                 Application of Proceeds.

 

(a)                                  So long as the Discharge of Revolving Credit
Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
all Revolving Credit Collateral or proceeds thereof received in connection with
the sale or other disposition of, or collection on, such Collateral upon the
exercise of remedies by the Revolving Credit Agent or Revolving Credit
Claimholders, shall be applied by the Revolving Credit Agent to the Revolving
Credit Obligations in such order as specified in the relevant Revolving Credit
Loan Documents. Upon the Discharge of Revolving Credit Obligations, the
Revolving Credit Agent shall deliver to the Collateral Trustee any Collateral
and proceeds of Collateral held by it in the same form as received, with any
necessary endorsements or as a court of competent jurisdiction may

 

32

 

otherwise direct to be applied by the Collateral Trustee or any Secured
Debt Representative in such order as specified in the Collateral Trust
Agreement and/or the other relevant Secured Debt Documents.

 

(b)                                 So long as the Discharge of Secured Debt
Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company or any other Grantor,
all Shared Collateral or proceeds thereof received in connection with the sale
or other disposition of, or collection on, such Collateral upon the exercise of
remedies by the Collateral Trustee or Secured Debt Claimholders, shall be
applied to the Secured Debt Obligations in such order as specified in
Collateral Trust Agreement and/or the other relevant Secured Debt Documents.

 

4.2                                 Payments Over in Violation of Agreement. Unless and until both the Discharge of
Revolving Credit Obligations and the Discharge of Secured Debt Obligations have
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against the Company or any other Grantor, any Collateral or
proceeds thereof (including assets or proceeds subject to Liens referred to in
the final sentence of Section 2.3) received by the Revolving Credit Agent,
any Revolving Credit Claimholder, the Collateral Trustee, any Secured Debt
Representative or any Secured Debt Claimholder in connection with the exercise
of any right or remedy (including set-off) relating to the Collateral in
contravention of this Agreement shall be segregated and held in trust and forthwith
paid over to the Revolving Credit Agent or Collateral Trustee, as appropriate
in the same form as received, with any necessary endorsements or as a court of
competent jurisdiction may otherwise direct. The Collateral Trustee and
Revolving Credit Agent are each hereby authorized to make any such endorsements
as agent for the other Person. This authorization is coupled with an interest
and is irrevocable until both the Discharge of Revolving Credit Obligations and
Discharge of Secured Debt Obligations have occurred.

 

4.3                                 Application of Payments. Subject to the other terms of (a) this
Agreement, all payments received by the Revolving Credit Agent or the Revolving
Credit Claimholders may be applied, reversed and reapplied, in whole or in
part, to the Revolving Credit Obligations to the extent provided for in the
Revolving Credit Loan Documents; and (b) this Agreement and the Collateral
Trust Agreement, all payments received by the Collateral Trustee, any Secured
Debt Representative or the Secured Debt Claimholders may be applied, reversed
and reapplied, in whole or in part, to the Secured Debt Obligations to the
extent provided for in the Collateral Trust Agreement and/or the other Secured
Debt Documents.

 

V.                                    OTHER AGREEMENTS.

 

5.1                                 Releases.

 

(a)                                  (i) If in connection with the exercise of the
Revolving Credit Agent’s remedies in respect of any Collateral as provided for
in Section 3.1, the Revolving Credit Agent, for itself or on behalf of any
of the Revolving Credit Claimholders, releases its Liens on any part of the
Revolving Credit Collateral, then the Liens, if any, of the Collateral Trustee,
the Secured Debt Representatives and the Secured Debt Claimholders, on the
Collateral sold or disposed of in connection with such exercise, shall be
automatically, unconditionally and

 

33

 

simultaneously released. The Collateral Trustee, for
itself and/or on behalf of any such Persons, promptly shall execute and deliver
to the Revolving Credit Agent or such Grantor such termination statements,
releases and other documents as the Revolving Credit Agent or such Grantor may
request to effectively confirm such release.

 

(ii)                                  If in connection with the exercise by the
Collateral Trustee or any Secured Debt Representative of remedies in respect of
any Collateral as provided for in Section 3.2, the Collateral Trustee, for
itself and/or on behalf of any of the Secured Debt Representatives and Secured
Debt Claimholders, releases all of its Liens on any part of the Shared
Collateral or Separate Collateral, then the Liens, if any, of the Revolving
Credit Agent, for itself or for the benefit of the Revolving Credit
Claimholders, on the Collateral sold or disposed of in connection with such
exercise, shall be automatically, unconditionally and simultaneously released.
The Revolving Credit Agent, for itself and/or on behalf of any such Revolving
Credit Claimholder shall each promptly execute and deliver to the Collateral
Trustee or such Grantor such termination statements, releases and other
documents as the Collateral Trustee or such Grantor may request to effectively
confirm such release.

 

(b)                                 If in connection with any sale, lease,
exchange, transfer or other disposition of any Collateral (collectively, a “Disposition”) permitted under the terms of both the
Revolving Credit Loan Documents and the Secured Debt Documents (including
voluntary Dispositions of Revolving Credit Collateral by the respective
Grantors after a Revolving Credit Default and voluntary Dispositions of Shared
Collateral or Separate Collateral by the respective Grantors after a Secured
Debt Default), (i) the Revolving Credit Agent, for itself and/or on behalf of
any of the Revolving Credit Claimholders, releases its Liens on any part of the
Revolving Credit Collateral, in each case other than (A) in connection with the
Discharge of Revolving Credit Obligations or (B) after the occurrence and
during the continuance of a Secured Debt Default, then the Liens, if any, of
the Collateral Trustee and/or any Secured Debt Representative, for itself
and/or for the benefit of the Secured Debt Claimholders, on such Collateral
shall be automatically, unconditionally and simultaneously released, and (ii)
the Collateral Trustee or any Secured Debt Representative, for itself and/or on
behalf of the Secured Debt Claimholders, releases all of its Liens on any part
of the Shared Collateral or Separate Collateral, in each case other than (A) in
connection with the Discharge of Secured Debt Obligations or (B) after the
occurrence and during the continuance of a Revolving Credit Default, then the
Liens, if any, of the Revolving Credit Agent, for itself and/or for the benefit
of the Revolving Credit Claimholders, on such Collateral shall be
automatically, unconditionally and simultaneously released. The Revolving
Credit Agent, Collateral Trustee or any Secured Debt Representative, each for
itself and/or on behalf of any such Revolving Credit Claimholders or Secured
Debt Claimholder, as the case may be, promptly shall execute and deliver to the
Collateral Trustee, Revolving Credit Agent or such Grantor such termination
statements, releases and other documents as the Collateral Trustee, Revolving
Credit Agent or such Grantor may request to effectively confirm such release.

 

(c)                                  Until the Discharge of Revolving Credit
Obligations shall occur, the Collateral Trustee and each Secured Debt
Representative, for itself and/or on behalf of the Secured Debt Claimholders,
hereby irrevocably constitutes and appoints the Revolving Credit Agent and any
of its officers or agents, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of the

 

34

 

Collateral
Trustee and each Secured Debt Representative or such Secured Debt Claimholder,
whether in the Revolving Credit Agent’s name or, at the option of the Revolving
Credit Agent, in the Collateral Trustee’s, any Secured Debt Representative’s or
any Secured Debt Claimholder’s own name, from time to time in the Revolving
Credit Agent’s discretion, for the purpose of carrying out the terms of this Section 5.1,
to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary to accomplish the purposes of this Section 5.1,
including any endorsements or other instruments of transfer or release.

 

(d)                                 Until the Discharge of Secured Debt
Obligations shall occur, the Revolving Credit Agent, for itself and/or on
behalf of the Revolving Credit Claimholders hereby irrevocably constitutes and
appoints the Collateral Trustee and any of its officers or agents, with full
power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of Revolving Credit Agent
or such Revolving Credit Claimholder, whether in the Collateral Trustee’s name
or, at the option of the Collateral Trustee, in the Revolving Credit Agent’s or
any Revolving Credit Claimholder’s own name, from time to time in Collateral
Trustee’s discretion, for the purpose of carrying out the terms of this Section 5.1,
to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary to accomplish the purposes of this Section 5.1,
including any endorsements or other instruments of transfer or release

 

5.2                                 Insurance.

 

(a)                                  Unless and until the Discharge of Revolving
Credit Obligations has occurred, subject to the terms of, and the rights of the
Grantors under, the Revolving Credit Loan Documents, (i) the Revolving Credit
Agent and the Revolving Credit Claimholders shall have the sole and exclusive
right to adjust settlement for any insurance policy covering the Revolving
Credit Collateral or the Liens with respect thereto in the event of any loss
thereunder or with respect thereto and to approve any award granted in any
condemnation or similar proceeding (or any deed in lieu of condemnation)
affecting such Collateral; (ii) all proceeds of any such policy and any such
award (or any payments with respect to a deed in lieu of condemnation) if in
respect to such Collateral and to the extent required by the Revolving Credit
Loan Documents shall be paid to the Revolving Credit Agent for the benefit of
the Revolving Credit Claimholders pursuant to the terms of the Revolving Credit
Loan Documents (including, without limitation, for purposes of cash
collateralization of letters of credit) and thereafter, to the extent no
Revolving Credit Obligations are outstanding, and subject to the terms of, and
the rights of the Grantors under, the Secured Debt Documents and the terms of
the Collateral Trust Agreement, to the Collateral Trustee for the benefit of
the Secured Debt Claimholders to the extent required under the Secured Debt
Documents and then, to the extent no Secured Debt Obligations which were
secured by such Collateral are outstanding, to the owner of the subject
property, such other Person as may be entitled thereto or as a court of
competent jurisdiction may otherwise direct, and (iii) if the Collateral
Trustee or any Secured Debt Representative or any Secured Debt Claimholder
shall, at any time, receive any proceeds of any such insurance policy or any
such award or payment in contravention of this Agreement, it shall segregate
and hold in trust and forthwith pay such proceeds over to the Revolving Credit
Agent in accordance with the terms of Section 4.2.

 

35

 

(b)                                 Unless and until the Discharge of Secured
Debt Obligations has occurred, subject to the terms of, and the rights of the
Grantors under the Secured Debt Documents, (i) the Collateral Trustee shall
have the sole and exclusive right to adjust settlement for any insurance policy
covering the Shared Collateral or Separate Collateral or the Liens with respect
thereto in the event of any loss thereunder or with respect thereto and to
approve any award granted in any condemnation or similar proceeding (or any
deed in lieu of condemnation) affecting such Collateral; (ii) all proceeds of
any such policy and any such award (or any payments with respect to a deed in
lieu of condemnation) if in respect to such Collateral and to the extent
required by the Secured Debt Documents shall be paid to the Collateral Trustee
for the benefit of the Secured Debt Claimholders pursuant to the terms of the
Collateral Trust Agreement and the other Secured Debt Documents and thereafter,
to the extent no Secured Debt Obligations which were secured by such Collateral
are outstanding, and subject to the terms of, and the rights of the Grantors
under, the Revolving Credit Collateral Documents to either the Revolving Credit
Agent for the benefit of the Revolving Credit Claimholders to the extent
required under such Revolving Credit Collateral Documents and then, to the
extent no Revolving Credit Obligations which were secured by such Collateral
are outstanding, to the owner of the subject property, such other Person as may
be entitled thereto or as a court of competent jurisdiction may otherwise
direct, and (iii) if the Revolving Credit Agent, Collateral Trustee or any
Revolving Credit Claimholder shall, at any time, receive any proceeds of any
such insurance policy or any such award or payment in contravention of this
Agreement, it shall segregate and hold in trust and forthwith pay such proceeds
over to the Collateral Trustee in accordance with the terms of Section 4.2.

 

(c)                                  To effectuate the foregoing, Revolving Credit
Agent and Collateral Trustee shall each receive separate lender’s loss payable
endorsements naming themselves as loss payee and additional insured, as their
interests may appear, with respect to policies which insure Collateral
hereunder. To the extent any proceeds are received for business interruption or
for any liability or indemnification and those proceeds are not compensation
for a casualty loss with respect to the Shared Collateral, such proceeds shall
first be applied to repay the Revolving Credit Obligations and then be applied,
to the extent required by the Secured Debt Documents, to the Secured Debt
Obligations.

 

5.3                                 Amendments to Revolving Credit Loan Documents
and Secured Debt Documents; Refinancing; Legending Provisions.

 

(a)                                  The Revolving Credit Loan Documents and
Secured Debt Documents may be amended, supplemented or otherwise modified in
accordance with the terms of both the Revolving Credit Loan Documents and the
Secured Debt Documents and the Revolving Credit Obligations and Secured Debt
Obligations may be Refinanced, in each case, without notice to, or the consent
(except to the extent a consent is required to permit the Refinancing
transaction under any Revolving Credit Document or any Secured Debt Document)
of the Revolving Credit Agent, the Revolving Credit Claimholders, the
Collateral Trustee, the Secured Debt Representatives or the Secured Debt
Claimholders, as the case may be, all without affecting the Lien subordination
or other provisions of this Agreement, provided, however, that
the holders of such Refinancing debt bind themselves in an Intercreditor
Joinder Agreement or other writing, reasonably acceptable to the Collateral
Trustee and Revolving Credit Agent and addressed to the Collateral Trustee or
Revolving Credit Agent and the Revolving Credit

 

36

 

Claimholders, as the case may be, to the terms of this Agreement and
any such amendment, supplement, modification or Refinancing shall be in
accordance with the provisions of both the Revolving Credit Loan Documents and
the Secured Debt Documents.

 

(b)                                 The Company agrees that each Revolving Credit
Collateral Document and Secured Debt Collateral Document shall include the
following language (or language to similar effect approved by both the
Collateral Trustee and the Revolving Credit Agent):

 

“Notwithstanding anything herein to the contrary, the lien and security
interest granted to the [Revolving Credit Agent, Collateral Trustee or other
Person, as applicable] pursuant to this Agreement and the exercise of any right
or remedy by the [Revolving Credit Agent, Collateral Trustee or other Person,
as applicable] hereunder are subject to the provisions of the Intercreditor
Agreement, dated as of May 2, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”),
among NewPage Corporation, NewPage Holding Corporation, JPMorgan Chase Bank,
N.A., as Revolving Credit Agent and The Bank of New York, as Collateral Trustee
and certain other persons which may be or become parties thereto or become
bound thereto from time to time. In the event of any conflict between the terms
of the Intercreditor Agreement and this Agreement, the terms of the
Intercreditor Agreement shall govern and control.”

 

(c)                                  Revolving Credit Agent, Collateral Trustee
and each Secured Debt Representative shall each use its best efforts to notify
the other parties of any written amendment or modification to any Revolving
Credit Loan Document or any Secured Debt Document, as applicable, but the
failure to do so shall not create a cause of action against the party failing
to give such notice or create any claim or right on behalf of any third party.
In connection with amendments or modifications permitted by Section 5.3,
Revolving Credit Agent, Collateral Trustee and each Secured Debt
Representative, as applicable shall, upon request of the other party, provide
copies of all such modifications or amendments and copies of all other relevant
documentation to the other Persons.

 

5.4                                 Bailees for Perfection.

 

(a)                                  Revolving Credit Agent, Collateral Trustee
and each Secured Debt Representative, as the case may be, agree to hold that
part of the Collateral that is in its possession or control (or in the
possession or control of its agents or bailees) to the extent that possession
or control thereof is taken to perfect a Lien thereon under the UCC (such
Collateral being the “Pledged Collateral”)
as collateral agent for the Revolving Credit Claimholders and Secured Debt
Claimholders, as the case may be, and as bailee for the Revolving Credit Agent,
Collateral Trustee or Secured Debt Representative, as the case may be, (such
bailment being intended, among other things, to satisfy the requirements of
Sections 8-301(a)(2) and 9-313(c) of the UCC) and any assignee solely for the
purpose of perfecting the security interest granted under the Revolving Credit
Loan Documents and the Secured Debt Documents, as applicable, subject to the
terms and conditions of this Section 5.4.

 

37

 

(b)                                 No Person shall have any obligation
whatsoever to any other Person to ensure that the Pledged Collateral is genuine
or owned by any of the Grantors or to preserve rights or benefits of any Person
except as expressly set forth in this Section 5.4. The duties or
responsibilities under this Section 5.4 shall be limited solely to holding
the Pledged Collateral as bailee in accordance with this Section 5.4 and
delivering the Pledged Collateral upon a Discharge of Revolving Credit
Obligations or Discharge of Secured Debt Obligations, as the case may be, as
provided in paragraph (d) below.

 

(c)                                  No Person acting pursuant to this Section 5.4
shall have by reason of the Revolving Credit Loan Documents, the Secured Debt
Documents, this Agreement, the Collateral Trust Agreement or any other
document, a fiduciary relationship with any other Person with respect to such
acts.

 

(d)                                 Upon the Discharge of Revolving Credit
Obligations the Revolving Credit Agent shall deliver the remaining Pledged
Collateral (if any) together with any necessary endorsements, first, to
the Collateral Trustee to the extent the Secured Debt Obligations which are
secured by such Pledged Collateral remain outstanding, and second, to
the Company (in each case, so as to allow such Person to obtain possession or
control of such Pledged Collateral). The Revolving Credit Agent further agrees
to take all other action reasonably requested by the Collateral Trustee in
connection with the Collateral Trustee obtaining a first-priority interest in
the Collateral or as a court of competent jurisdiction may otherwise direct.

 

(e)                                  Upon the Discharge of the Secured Debt
Obligations, the Collateral Trustee shall deliver the remaining Pledged
Collateral (if any) together with any necessary endorsements, first, to
the Revolving Credit Agent to the extent any Revolving Credit Obligations which
are secured by such Pledged Collateral remain outstanding, and second,
to the Company (in each case, so as to allow such Person to obtain possession
or control of such Pledged Collateral). The Collateral Trustee further agrees
to take all other action reasonably requested by the Revolving Credit Agent in
connection with the Revolving Credit Agent obtaining a first-priority interest
in the Collateral or as a court of competent jurisdiction may otherwise direct

 

(f)                                    Subject to the terms of this Agreement, (i)
so long as the Discharge of Revolving Credit Obligations has not occurred, the
Revolving Credit Agent shall be entitled to deal with the Pledged Collateral or
Collateral within its “control” in accordance with the terms of this Agreement
and other Revolving Credit Loan Documents, but only to the extent that such
Collateral constitutes Revolving Credit Collateral, as if the Liens (if any) of
the Collateral Trustee or Secured Debt Representatives did not exist and (ii)
so long as the Discharge of Secured Debt Obligations has not occurred, the
Collateral Trustee or any Secured Debt Representative shall be entitled to deal
with the Pledged Collateral or Collateral within its “control” in accordance
with the terms of this Agreement, the Collateral Trust Agreement and other
Secured Debt Documents, but only to the extent that such Collateral constitutes
Shared Collateral or Separate Collateral, as if the Liens of the Revolving
Credit Agent did not exist.

 

5.5                                 When Discharge of Revolving Credit
Obligations and Discharge of Secured Debt Obligations Deemed to Not Have
Occurred. If concurrently
with the Discharge of

 

38

 

Revolving Credit Obligations or the Discharge of Secured Debt
Obligations, the Company enters into any Refinancing of any Revolving Credit
Obligation or Secured Debt Obligation as the case may be, which Refinancing is
permitted by the Secured Debt Loan Documents and the Revolving Credit Loan
Documents, then such Discharge of Revolving Credit Obligations or the Discharge
of Secured Debt Obligations, shall automatically be deemed not to have occurred
for all purposes of this Agreement (other than with respect to any actions
taken as a result of the occurrence of such first Discharge of Revolving Credit
Obligations or the Discharge of Secured Debt Obligations) and, from and after
the date on which the New Debt Notice (defined below) is delivered to the
Collateral Trustee or Revolving Credit Agent, as appropriate, in accordance
with the next sentence, the obligations under such Refinancing shall
automatically be treated as Revolving Credit Obligations or Secured Debt
Obligations for all purposes of this Agreement, including for purposes of the
Lien priorities and rights in respect of Collateral set forth herein, and the
Revolving Credit Agent or Collateral Trustee, as the case may be, under such
new Revolving Credit Loan Documents or Secured Debt Documents shall be the
Revolving Credit Agent or Collateral Trustee for all purposes of this
Agreement. Upon receipt of a notice (the “New Debt Notice”)
stating that the Company has entered into new Revolving Credit Loan Documents
or new Secured Debt Documents (which notice shall include a complete copy of
the relevant new documents and provide the identity of the new agent for such
facility, such agent, the “New Agent”),
the Revolving Credit Agent and the Collateral Trustee shall promptly (a) enter
into such documents and agreements (including amendments or supplements to this
Agreement) as the Company or such New Agent shall reasonably request in order
to provide to the New Agent the rights contemplated hereby, in each case
consistent in all material respects with the terms of this Agreement and (b)
deliver, to the extent contemplated by this Agreement, to the New Agent any
Pledged Collateral held by it together with any necessary endorsements (or
otherwise allow the New Agent to obtain control of such Pledged Collateral).
The New Agent shall agree in a writing addressed to the Revolving Credit Agent,
Collateral Trustee and each Secured Debt Representative, the Revolving Credit
Claimholders, and Secured Debt Claimholders, as the case may be, to be bound by
the terms of this Agreement.

 

VI.                                INSOLVENCY OR LIQUIDATION
PROCEEDINGS.

 

6.1                                 Finance and Sale Issues. Until the Discharge of Revolving Credit
Obligations has occurred, if the Company or any other Grantor shall be subject
to any Insolvency or Liquidation Proceeding and the Revolving Credit Agent
shall, acting in accordance with the Revolving Credit Agreement, agree to
permit the use of “Cash Collateral” (as such term is defined in Section 363(a)
of the Bankruptcy Code), on which a Lien has been granted to the Revolving
Credit Agent pursuant to the Revolving Credit Loan Agreements or to permit the
Company or any other Grantor to obtain financing, whether from the Revolving
Credit Claimholders or any other Person under Section 364 of the
Bankruptcy Code or any similar Bankruptcy Law (“DIP
Financing”), then the Collateral Trustee, each Secured Debt
Representative and each Secured Debt Claimholder each agrees that it will raise
no objection to such Cash Collateral use or DIP Financing so long as such Cash
Collateral use or DIP Financing meet the following requirements: (i) it is on
commercially reasonable terms, (ii) the Collateral Trustee, each Secured Debt Representative
and each Secured Debt Claimholder retain the right to object to any ancillary
agreements or arrangements regarding the Cash Collateral use or the DIP
Financing that are materially prejudicial to their interests in the Shared
Collateral, and (iii) the terms of the DIP Financing (a) do not compel the
Company to seek confirmation of a specific

 

39

 

plan
of reorganization for which all or substantially all of the material terms are
set forth in the DIP Financing documentation or a related document and (b) do
not expressly require the liquidation of the Collateral prior to a default
under the DIP Financing documentation or Cash Collateral order. To the extent
the Liens securing the Revolving Credit Obligations are subordinated to or pari
passu with such DIP Financing which meets the requirements of clauses (i)
through (iii) above, the Collateral Trustee and each Secured Debt
Representative will subordinate any Liens in the Revolving Credit Collateral to
the Liens securing such DIP Financing (and all Obligations relating thereto)
and will not request adequate protection or any other relief in connection
therewith (except, as expressly agreed by the Revolving Credit Agent or to the
extent permitted by Section 6.3).

 

6.2                                 Relief from the Automatic Stay.

 

(a)                                  Until the Discharge of Revolving Credit
Obligations has occurred, the Collateral Trustee, each Secured Debt
Representative and each Secured Debt Claimholder, agrees that none of them
shall seek (or support any other Person seeking) relief from the automatic stay
or any other stay in any Insolvency or Liquidation Proceeding in respect of the
Revolving Credit Collateral (other than to the extent such relief is required
to exercise its rights under Section 3.3), without the prior written
consent of the Revolving Credit Agent, unless the Revolving Credit Agent has
already filed a motion (which remains pending) for adequate protection with
respect to its interest in such Revolving Credit Collateral.

 

(b)                                 Until the Discharge of Secured Debt
Obligations has occurred, the Revolving Credit Agent, on behalf of itself and
the Revolving Credit Claimholders agrees that none of them shall seek (or
support any other Person seeking) relief from the automatic stay or any other
stay in any Insolvency or Liquidation Proceeding in respect of the Shared
Collateral or the Separate Collateral (other than to the extent such relief is
required to exercise its rights under Section 3.3), without the prior
written consent of the Collateral Trustee, unless the Collateral Trustee has
already filed a motion (which remains pending) for adequate protection with
respect to its interest in the Shared Collateral or the Separate Collateral.

 

6.3                                 Adequate Protection.

 

(a)                                  The Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders, each agree that none of them
shall contest (or support any other Person contesting):

 

(1)                                  any request by the Revolving Credit Agent for
adequate protection with respect to the Revolving Credit Collateral; or

 

(2)                                  any objection by the Revolving Credit Agent
to any motion, relief, action or proceeding based on the Revolving Credit Agent
or the Revolving Credit Claimholders claiming a lack of adequate protection
with respect to the Revolving Credit Collateral.

 

(b)                                 The Revolving Credit Agent and the Revolving
Credit Claimholders, each agree that none of them shall contest (or support any
other Person contesting):

 

40

 

(1)                                  any request by the Collateral Trustee for
adequate protection with respect to the Shared Collateral or the Separate
Collateral; or

 

(2)                                  any objection by the Collateral Trustee to
any motion, relief, action or proceeding based on the Collateral Trustee or any
Secured Debt Claimholder claiming a lack of adequate protection with respect to
the Shared Collateral or Separate Collateral.

 

(c)                                  Notwithstanding the foregoing provisions in
this Section 6.3, in any Insolvency or Liquidation Proceeding:

 

(1)                                  if the Revolving Credit Claimholders (or any
subset thereof) are granted adequate protection with respect to the Revolving
Credit Collateral in the form of additional collateral (even if such collateral
is not of a type which would otherwise have constituted Revolving Credit
Collateral) in connection with any Cash Collateral use or DIP Financing, then
the Collateral Trustee, on behalf of itself or any of the Secured Debt
Claimholders, may seek or request adequate protection with respect to its
interests in such Collateral in the form of a Lien on the same additional
collateral, which Lien will be subordinated (except to the extent that the
Collateral Trustee already had a Lien on such Collateral (in which case the
priorities established by Section 2.1 shall apply)) to the Liens securing
the Revolving Credit Obligations and such Cash Collateral use or DIP Financing
(and all Obligations relating thereto) on the same basis as the other Liens of
the Collateral Trustee on Revolving Credit Collateral; and

 

(2)                                  in the event the Collateral Trustee or any
Secured Debt Representative or any of the Secured Debt Claimholders seeks or
requests adequate protection in respect of Shared Collateral or Separate
Collateral and such adequate protection is granted in the form of additional
collateral (even if such collateral is not of a type which would otherwise have
constituted Shared Collateral or Separate Collateral), then the Collateral
Trustee, the Secured Debt Representatives and the Secured Debt Claimholders
each agrees that the Revolving Credit Agent may also be granted a Lien on the
same additional collateral as security for the Revolving Credit Obligations and
for any Cash Collateral use or DIP Financing provided by the Revolving Credit
Claimholders, Revolving Credit Agent and each Revolving Credit Claimholder,
agrees that any Lien on such additional collateral securing the Revolving
Credit Obligations, shall be subordinated (except to the extent that the
Revolving Credit Agent already had a Lien on such Collateral (in which case the
priorities established by Section 2.1 shall apply)) to the Liens on such
collateral securing the Secured Debt Obligations, all on the same basis as the
other Liens of the Revolving Credit Agent on Shared Collateral.

 

(d)                                 Except as otherwise expressly set forth in Section 6.1
or in connection with the exercise of remedies with respect to (i) the
Revolving Credit Collateral, nothing herein shall limit the rights of the
Collateral Trustee, any Secured Debt Representative or any Secured Debt
Claimholder from seeking adequate protection with respect to their rights in
the Shared Collateral or the Separate Collateral in any Insolvency or
Liquidation Proceeding (including adequate protection in the form of a cash
payment, periodic cash payments or otherwise) or (ii) the Shared Collateral or
Separate Collateral, nothing herein shall limit the rights of the Revolving
Credit Agent or the Revolving Credit Claimholders from seeking adequate

 

41

 

protection with respect to their rights in the Revolving Credit
Collateral in any Insolvency or Liquidation Proceeding (including adequate
protection in the form of a cash payment, periodic cash payments or otherwise).

 

6.4                                 Avoidance Issues. If any Revolving Credit Claimholder or
Secured Debt Claimholder is required in any Insolvency or Liquidation
Proceeding or otherwise to turn over or otherwise pay to the estate of the
Company or any other Grantor any amount paid in respect of Revolving Credit
Obligations or the Secured Debt Obligations, as the case may be, (a “Recovery”), then such Revolving Credit Claimholders or
Secured Debt Claimholders shall be entitled to a reinstatement of Revolving
Credit Obligations or the Secured Debt Obligations, as the case may be, with
respect to all such recovered amounts. If this Agreement shall have been
terminated prior to such Recovery, this Agreement shall be reinstated in full
force and effect, and such prior termination shall not diminish, release,
discharge, impair or otherwise affect the obligations of the parties hereto
from such date of reinstatement.

 

6.5                                 Reorganization Securities. If, in any Insolvency or Liquidation Proceeding, debt obligations of
the reorganized debtor secured by Liens upon any property of the reorganized
debtor are distributed pursuant to a plan of reorganization or similar
dispositive restructuring plan, both on account of Revolving Credit Obligations
and on account of Secured Debt Obligations, then, to the extent the debt
obligations distributed on account of the Revolving Credit Obligations and on
account of the Secured Debt Obligations are secured by Liens upon the same
property, the provisions of this Agreement will survive the distribution of
such debt obligations pursuant to such plan and will apply with like effect to
the debt obligations so distributed, to the Liens securing such debt
obligations and the distribution of proceeds thereof.

 

6.6                                 Post-Petition Interest.

 

(a)                                  The Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders each agree that none of them
shall oppose or seek to challenge any claim by the Revolving Credit Agent or
any Revolving Credit Claimholder for allowance in any Insolvency or Liquidation
Proceeding of Revolving Credit Obligations consisting of post-petition
interest, fees or expenses to the extent of the value of the Lien securing any
Revolving Credit Claimholder’s claim, without regard to the existence of the
Lien of the Collateral Trustee on behalf of the Secured Debt Claimholders on
the Collateral.

 

(b)                                 Neither the Revolving Credit Agent, nor any
other Revolving Credit Claimholder shall oppose or seek to challenge any claim
by the Collateral Trustee, any Secured Debt Representative or any Secured Debt
Claimholder for allowance in any Insolvency or Liquidation Proceeding of
Secured Debt Obligations consisting of post-petition interest, fees or expenses
to the extent of the value of the Lien securing any Secured Debt Claimholder’s
claim, without regard to the existence of the Lien of the Revolving Credit
Agent on behalf of the Revolving Credit Claimholders on the Collateral.

 

6.7                                 Waiver - 1111(b)(2) Issues.

 

(a)                                  The Collateral Trustee, each Secured Debt
Representative and each Secured Debt Claimholder, each waives any objection or
claim it may hereafter have against any

 

42

 

Revolving Credit Claimholder arising out of the election of any
Revolving Credit Claimholder of the application of Section 1111(b)(2) of
the Bankruptcy Code to any claims of such Revolving Credit Claimholder and
agrees that in the case of any such election it shall have no claim or right to
payment with respect to the Revolving Credit Collateral in or from such
Insolvency or Liquidation Proceeding. Any reorganization securities issued with
respect to such election shall be allocated solely to the Revolving Credit
Claimholders pursuant to Section 6.5 hereof.

 

(b)                                 The Revolving Credit Agent, for itself and/or
on behalf of the Revolving Credit Claimholders, each waives any objection or
claim it may hereafter have against any Secured Debt Claimholder arising out of
the election of any Secured Debt Claimholder of the application of Section 1111(b)(2)
of the Bankruptcy Code to any claims of such Secured Debt Claimholder and
agrees that in the case of any such election it shall have no claim or right to
payment with respect to the Shared Collateral in or from such Insolvency or
Liquidation Proceeding. Any reorganization securities issued with respect to
such election shall be allocated solely to the Secured Debt Claimholders pursuant
to Section 6.5 hereof.

 

VII.                            RELIANCE; WAIVERS; ETC.

 

7.1                                 Reliance. Other than any reliance on the terms of this Agreement, the Revolving
Credit Agent, on behalf of itself and the Revolving Credit Claimholders under
its Revolving Credit Loan Documents, acknowledges that it and such Revolving
Credit Claimholders have, independently and without reliance on the Collateral
Trustee, any Secured Debt Representative or any Secured Debt Claimholder, and
based on documents and information deemed by them appropriate, made their own
credit analysis and decision to enter into such Revolving Credit Loan Documents
and be bound by the terms of this Agreement and they will continue to make
their own credit decision in taking or not taking any action under the
Revolving Credit Loan Documents or this Agreement. The Collateral Trustee and
each Secured Debt Representative, on behalf of itself and the Secured Debt
Claimholders, acknowledges that it and the Secured Debt Claimholders have,
independently and without reliance on the Revolving Credit Agent or any
Revolving Credit Claimholder, and based on documents and information deemed by
them appropriate, made their own credit analysis and decision to enter into
each of the Secured Debt Documents and be bound by the terms of this Agreement
and they will continue to make their own credit decision in taking or not
taking any action under the Secured Debt Documents, the Collateral Trust
Agreement or this Agreement.

 

7.2                                 No Warranties or Liability. The Revolving Credit Agent, on behalf of
itself and the Revolving Credit Claimholders under the Revolving Credit Loan
Documents, acknowledges and agrees that each of the Collateral Trustee, the
Secured Debt Representatives and the Secured Debt Claimholders have made no
express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectibility or enforceability
of any of the Secured Debt Documents, the ownership of any Collateral or the
perfection or priority of any Liens thereon. Except as otherwise provided in
this Agreement, the Collateral Trustee, the Secured Debt Representatives and
the Secured Debt Claimholders will be entitled to manage and supervise their
respective loans and extensions of credit under the Secured Debt Documents in
accordance with law and as they may otherwise, in their sole discretion, deem
appropriate. The Collateral Trustee, the Secured Debt Representatives and the
Secured Debt Claimholders, each acknowledges and agrees that the Revolving
Credit Agent and

 

43

 

the
Revolving Credit Claimholders have made no express or implied representation or
warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Revolving Credit
Loan Documents, the ownership of any Collateral or the perfection or priority
of any Liens thereon. Except as otherwise provided herein, the Revolving Credit
Agent and the Revolving Credit Claimholders will be entitled to manage and
supervise their respective loans and extensions of credit under their
respective Revolving Credit Loan Documents in accordance with law and as they
may otherwise, in their sole discretion, deem appropriate. The Collateral
Trustee, the Secured Debt Representatives and the Secured Debt Claimholders
shall have no duty to the Revolving Credit Agent or any of the Revolving Credit
Claimholders, and the Revolving Credit Agent and the Revolving Credit
Claimholders shall have no duty to the Collateral Trustee, the Secured Debt
Representatives or any of the Secured Debt Claimholders, to act or refrain from
acting in a manner which allows, or results in, the occurrence or continuance
of an event of default or default under any agreements with the Company or any
other Grantor (including the Revolving Credit Loan Documents and the Secured
Debt Documents), regardless of any knowledge thereof which they may have or be
charged with.

 

7.3                                 No Waiver of Lien Priorities.

 

(a)                                  No right of the Revolving Credit Agent, the
Revolving Credit Claimholders, the Collateral Trustee, the Secured Debt
Representatives or the Secured Credit Claimholders to enforce any provision of
this Agreement, the Collateral Trust Agreement, any Revolving Credit Loan
Document or any other Secured Debt Document shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or any other Grantor or by any act or failure to act by such Persons or by any
noncompliance by any such Person with the terms, provisions and covenants of
this Agreement, the Collateral Trust Agreement, any of the Revolving Credit
Loan Documents or any of the other Secured Debt Documents, regardless of any
knowledge thereof which such Persons, or any of them, may have or be otherwise
charged with.

 

(b)                                 Without in any way limiting the generality of
the foregoing paragraph (but subject to the rights of the Company and the other
Grantors under the Revolving Credit Loan Documents and Secured Debt Documents
and subject to the provisions of Section 5.3(a)), the Revolving Credit
Agent, the Revolving Credit Claimholders, the Collateral Trustee, the Secured
Debt Representatives and the Secured Debt Claimholders may, at any time and
from time to time in accordance with the Revolving Credit Loan Documents and
Secured Debt Documents and/or applicable law, without the consent of, or notice
to, the other Persons (as the case may be), without incurring any liabilities
to such Persons and without impairing or releasing the Lien priorities and
other benefits provided in this Agreement or the Collateral Trust Agreement
(even if any right of subrogation or other right or remedy is affected,
impaired or extinguished thereby) do any one or more of the following:

 

(1)                                  change the manner, place or terms of payment or
change or extend the time of payment of, or amend, renew, exchange, increase or
alter, the terms of any of the Obligations or any Lien or guaranty thereof or
any liability of the Company or any other Grantor, or any liability incurred
directly or indirectly in respect thereof (including any increase in or
extension of the Obligations, without any restriction as to the tenor or terms

 

44

 

of any such increase or extension) or otherwise amend, renew, exchange,
extend, modify or supplement in any manner any Liens held by the Revolving
Credit Agent or Collateral Trustee or any rights or remedies under any of the
Revolving Credit Loan Documents or the Secured Debt Documents;

 

(2)                                  sell, exchange, release, surrender, realize
upon, enforce or otherwise deal with in any manner and in any order any part of
the Collateral (except to the extent provided in this Agreement) or any
liability of the Company or any other Grantor or any liability incurred
directly or indirectly in respect thereof;

 

(3)                                  settle or compromise any Obligation or any
other liability of the Company or any other Grantor or any security therefore
or any liability incurred directly or indirectly in respect thereof and apply
any sums by whomsoever paid and however realized to any liability in any manner
or order that is not inconsistent with the terms of this Agreement; and

 

(4)                                  exercise or delay in or refrain from
exercising any right or remedy against the Company or any security or any other
Grantor or any other Person, elect any remedy and otherwise deal freely with
the Company, any other Grantor.

 

7.4                                 Obligations Unconditional. All rights, interests, agreements and
obligations of the Revolving Credit Agent and the Revolving Credit Claimholders
and the Collateral Trustee, the Secured Debt Representatives and the Secured
Debt Claimholders, respectively, hereunder shall remain in full force and
effect irrespective of:

 

(a)                                  any lack of validity or enforceability of any
Revolving Credit Loan Documents or any Secured Debt Documents;

 

(b)                                 except as otherwise expressly set forth in
this Agreement, any change in the time, manner or place of payment of, or in
any other terms of, all or any of the Revolving Credit Obligations or Secured
Debt Obligations, or any amendment or waiver or other modification, including
any increase in the amount thereof, whether by course of conduct or otherwise,
of the terms of any Revolving Credit Loan Document or any Secured Debt
Document;

 

(c)                                  except as otherwise expressly set forth in
this Agreement, any exchange of any security interest in any Collateral or any
other collateral, or any amendment, waiver or other modification, whether in
writing or by course of conduct or otherwise, of all or any of the Revolving
Credit Obligations or Secured Debt Obligations or any guaranty thereof;

 

(d)                                 the commencement of any Insolvency or
Liquidation Proceeding in respect of the Company or any other Grantor; or

 

(e)                                  any other circumstances which otherwise might
constitute a defense available to, or a discharge of, the Company or any other
Grantor in respect of the Revolving Credit Agent, the Revolving Credit
Obligations, any Revolving Credit Claimholder, the Collateral Trustee, the
Secured Debt Representatives, the Secured Debt Obligations or any Secured Debt
Claimholder in respect of this Agreement.

 

45

 

VIII.                        MISCELLANEOUS.

 

8.1                                 Conflicts. In the event of any conflict between the provisions of this Agreement
and the provisions of any Revolving Credit Loan Document or any Secured Debt
Document, the provisions of this Agreement shall govern and control.

 

8.2                                 Effectiveness; Continuing Nature of this
Agreement; Severability.
This Agreement shall become effective when executed and delivered by the
parties hereto. This is a continuing agreement of lien subordination and the
Revolving Credit Agent, the Revolving Credit Claimholders and the Collateral
Trustee, the Secured Debt Representatives and the Secured Debt Claimholders may
continue, at any time and without notice to any of the others, to extend credit
and other financial accommodations and lend monies to or for the benefit of the
Company or any Grantor in reliance hereon. Each such Person hereby waives any
right it may have under applicable law to revoke this Agreement or any of the
provisions of this Agreement The terms of this Agreement shall survive, and
shall continue in full force and effect, in any Insolvency or Liquidation
Proceeding. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall not invalidate the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.
All references to the Company or any other Grantor shall include the Company or
such Grantor as debtor and debtor-in-possession and any receiver or trustee for
the Company or any other Grantor (as the case may be) in any Insolvency or
Liquidation Proceeding. This Agreement shall terminate and be of no further
force and effect:

 

(a)                                  with respect to the Revolving Credit Agent,
the Revolving Credit Claimholders and the Revolving Credit Obligations, the
date of the Discharge of Revolving Credit Obligations, subject to the rights of
the Revolving Credit Agent and Revolving Credit Claimholders under Section 6.4;
and

 

(b)                                 with respect to the Collateral Trustee, the
Secured Debt Representatives, the Secured Debt Claimholders and the Secured
Debt Obligations, the date of the Discharge of Secured Debt Obligations,
subject to the rights of the Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders under Section 6.4.

 

8.3                                 Amendments; Waivers. No amendment, modification or waiver of any
of the provisions of this Agreement shall be deemed to be made unless the same
shall be in writing signed on behalf of Revolving Credit Agent and the
Collateral Trustee or their respective authorized agent and each waiver, if
any, shall be a waiver only with respect to the specific instance involved and
shall in no way impair the rights of the parties making such waiver or the
obligations of the other parties to such party in any other respect or at any
other time. Notwithstanding the foregoing, the Company shall not have any right
to consent to or approve any amendment, modification or waiver of any provision
of this Agreement except to the extent its rights are directly affected (which
includes, but is not limited to any amendment to the Grantors’ ability to cause
additional obligations to constitute Revolving Credit Obligations or Secured
Debt Obligations as the Company may designate).

 

46

 

8.4                                 Information Concerning Financial Condition of
the Company and its Subsidiaries. The Revolving Credit Agent and the Revolving Credit Claimholders, on
the one hand, and the Collateral Trustee, the Secured Debt Representatives and
the Secured Debt Claimholders, on the other hand, shall each be responsible for
keeping themselves informed of (a) the financial condition of the Company and
its Subsidiaries and all endorsers and/or guarantors of the Revolving Credit
Obligations or the Secured Debt Obligations and (b) all other circumstances
bearing upon the risk of nonpayment of the Revolving Credit Obligations or the
Secured Debt Obligations. Neither the Revolving Credit Agent and the Revolving
Credit Claimholders, on the one hand, nor the Collateral Trustee, the Secured
Debt Representatives and the Secured Debt Claimholders, on the other hand,
shall have any duty to advise the other of information known to it or them
regarding such condition or any such circumstances or otherwise. In the event
that either the Revolving Credit Agent or any of the Revolving Credit
Claimholders, on the one hand, or the Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders, on the other hand,
undertakes at any time or from time to time to provide any such information to
any of the others, it or they shall be under no obligation:

 

(a)                                  to make, and shall not make, any express or
implied representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of any such information so provided;

 

(b)                                 to provide any additional information or to
provide any such information on any subsequent occasion;

 

(c)                                  to undertake any investigation; or

 

(d)                                 to disclose any information, which pursuant
to accepted or reasonable commercial finance practices, such party wishes to
maintain confidential or is otherwise required to maintain confidential.

 

8.5                                 Subrogation.

 

(a)                                  With respect to the value of any payments or
distributions in cash, property or other assets that any of the Secured Debt
Claimholders or the Collateral Trustee or any Secured Debt Representative pays
over to the Revolving Credit Agent or the Revolving Credit Claimholders under
the terms of this Agreement, the Secured Debt Claimholders, the Collateral
Trustee and any Secured Debt Representative shall be subrogated to the rights
of the Revolving Credit Agent and the Revolving Credit Claimholders; provided,
however, that, the Collateral Trustee, any Secured Debt Representative
and the Secured Debt Claimholders, hereby each agrees not to assert or enforce
all such rights of subrogation it may acquire as a result of any payment
hereunder until the Discharge of Revolving Credit Obligations has occurred. The
Company acknowledges and agrees that, to the extent permitted by applicable
law, the value of any payments or distributions in cash, property or other
assets received by the Collateral Trustee, any Secured Debt Representative or
any Secured Debt Claimholder that are paid over to the Revolving Credit Agent
or the Revolving Credit Claimholders pursuant to this Agreement shall not
reduce any of the Secured Debt Obligations.

 

47

 

(b)                                 With respect to the value of any payments or
distributions in cash, property or other assets that any of the Revolving
Credit Claimholders or the Revolving Credit Agent pays over to the Collateral
Trustee or any Secured Debt Representative or the Secured Debt Claimholders
under the terms of this Agreement, the Revolving Credit Claimholders and the
Revolving Credit Agent shall be subrogated to the rights of the Collateral
Trustee, any Secured Debt Representative and the Secured Debt Claimholders; provided,
however, that the Revolving Credit Agent, on behalf of itself and the
Revolving Credit Claimholders, hereby agrees not to assert or enforce all such
rights of subrogation it may acquire as a result of any payment hereunder until
the Discharge of Secured Debt Obligations has occurred. The Company
acknowledges and agrees that, to the extent permitted by applicable law, the
value of any payments or distributions in cash, property or other assets
received by the Revolving Credit Agent or the Revolving Credit Claimholders
that are paid over to the Collateral Trustee, any Secured Debt Representative
or any Secured Debt Claimholder pursuant to this Agreement shall not reduce any
of the Revolving Credit Obligations.

 

8.6                                 SUBMISSION TO JURISDICTION; WAIVERS.

 

(a)                                  ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND
CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY, FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY:

 

(1)                                 ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

 

(2)                                 WAIVES ANY DEFENSE OF FORUM
NON CONVENIENS;

 

(3)                                 AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS
ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 8.8; AND

 

(4)                                 AGREES THAT SERVICE AS
PROVIDED IN CLAUSE (3) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER
THE APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

 

(b)                                  EACH OF THE PARTIES HERETO
HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER. THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS,

 

48

 

BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP THAT EACH HAS ALREADY RELIED
ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO
RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER
WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL
AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE; MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN
WAIVER SPECIFICALLY REFERRING TO THIS SECTION 8.6(b) AND EXECUTED BY EACH
OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

 

(c)                                  EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT or ANY
OTHER REVOLVING CREDIT LOAN DOCUMENT, SECURED DEBT DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY
HERETO.

 

8.7                                 Notices. All notices to the Secured Debt Representatives or to the Revolving
Credit Claimholders and Secured Debt Claimholders permitted or required under
this Agreement shall also be sent to the Revolving Credit Agent and Collateral
Trustee, respectively. Unless otherwise specifically provided herein, any
notice hereunder shall be in writing and may be personally served, telexed or
sent by telefacsimile or United States mail or courier service and shall be
deemed to have been given when delivered in person or by courier service and
signed for against receipt thereof, upon receipt of telefacsimile or telex, or
three Business Days after depositing it in the United States mail with postage
prepaid and properly addressed. For the purposes hereof, the addresses of the
parties hereto shall be as set forth below each party’s name on the signature
pages hereto, or, as to each party, at such other address as may be designated
by such party in a written notice to all of the other parties.

 

8.8                                 Further Assurances. The Revolving Credit Agent, the Collateral
Trustee, each Secured Debt Representative and each of the Claimholders, each
agrees that each of them shall take such further action and shall execute and
deliver such additional documents and instruments (in recordable form, if
requested) as the Revolving Credit Agent or Collateral Trustee may reasonably
request to effectuate the terms of and the Lien priorities contemplated by this
Agreement. Without limiting the generality of the foregoing, all such Persons
agree upon request by Revolving Credit Agent or Collateral Trustee, to cooperate
in good faith (and to direct their counsel to cooperate in good faith) from
time to time in order to determine the specific items included in the Revolving
Credit Collateral or Shared Collateral, as applicable, and the

 

49

 

steps taken to perfect their respective Liens thereon and the identity
of the respective parties obligated under the Revolving Credit Loan Documents
and the Secured Debt Documents.

 

8.9                                 APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

8.10                           Binding Effect on Successors and Assigns and
on Claimholders and Secured Debt Representatives. This Agreement shall be binding upon the
Revolving Credit Agent, the Revolving Credit Claimholders, the Collateral
Trustee, the Secured Debt Representatives and the Secured Debt Claimholders and
their respective successors and assigns. Collateral Trustee represents that it
has not agreed to any modification of the provisions in the Secured Debt
Documents authorizing it to execute this Agreement and bind the Secured Debt
Claimholders and Secured Debt Representatives and Revolving Credit Agent
represents that it has not agreed to any modification of the provisions in the
Revolving Credit Agreement authorizing it to execute this Agreement and bind
the Revolving Credit Claimholders. Notwithstanding any implication to the
contrary in any provision in any other section of the Agreement, neither
the Collateral Trustee nor the Revolving Credit Agent make any representation
regarding the validity or binding effect of the Secured Debt Documents or
Revolving Credit Loan Documents, respectively, or their authority to bind any
of the Claimholder’s through their execution of this Agreement.

 

8.11                           Specific Performance. Each of the Revolving Credit Agent and the
Collateral Trustee may demand specific performance of this Agreement. The
Revolving Credit Agent, on behalf of itself and the Revolving Credit
Claimholders under the Revolving Credit Loan Documents, and the Collateral
Trustee, on behalf of itself, the Secured Debt Representatives and the Secured
Debt Claimholders, hereby irrevocably waive any defense based on the adequacy
of a remedy at law and any other defense which might be asserted to bar the
remedy of specific performance in any action which may be brought by the
Revolving Credit Agent or the Revolving Credit Claimholders or the Collateral
Trustee, the Secured Debt Representatives or the Secured Debt Claimholders, as
the case may be.

 

8.12                           Headings. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose or be given any substantive effect.

 

8.13                           Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed counterpart of a signature
page of this Agreement or any document or instrument delivered in connection
herewith by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement or such other document or instrument, as
applicable.

 

8.14                           Authorization. By its signature, each Person executing
this Agreement on behalf of a party hereto represents and warrants to the other
parties hereto that it is duly authorized to execute this Agreement.

 

50

 

8.15                           No Third Party Beneficiaries. This Agreement and the rights and benefits
hereof shall inure to the benefit of each of the parties hereto and its
respective successors and assigns and shall inure to the benefit of each of the
Revolving Credit Agent, the Collateral Trustee, the Secured Debt
Representatives, the Revolving Credit Claimholders and the Secured Debt
Claimholders. Nothing in this Agreement shall impair, as between the Company
and the other Grantors and the Revolving Credit Agent and the Revolving Credit
Claimholders, or as between the Company and the other Grantors and the
Collateral Trustee, the Secured Debt Representatives and the Secured Debt
Claimholders the obligations of the Company and the other Grantors to pay
principal, interest, fees and other amounts as provided in the Revolving Credit
Loan Documents and the Secured Debt Documents, respectively.

 

8.16                           Provisions Solely to Define Relative Rights. The provisions of this Agreement are and
are intended solely for the purpose of defining the relative rights of the
Revolving Credit Agent and the Revolving Credit Claimholders on the one hand
and the Collateral Trustee, the Secured Debt Representatives and the Secured
Debt Claimholders on the other hand. None of the Company, any other Grantor or any
other creditor thereof shall have any rights hereunder and neither the Company
nor any Grantor may rely on the terms hereof. Nothing in this Agreement is
intended to or shall impair the obligations of the Company or any other
Grantor, which are absolute and unconditional, to pay the Revolving Credit
Obligations, and the Secured Debt Obligations as and when the same shall become
due and payable in accordance with their terms.

 

8.17                           Marshalling of Assets. The Collateral Trustee, the Secured Debt
Representatives and the Secured Debt Claimholders hereby each waive any and all
rights to have the Revolving Credit Collateral, or any part thereof, marshaled
upon any foreclosure or other enforcement of Revolving Credit Agent’s or
Collateral Trustee’s Liens. Revolving Credit Agent and each Revolving Credit
Claimholder hereby waive any and all rights to have the Shared Collateral or
Separate Collateral, or any part thereof, marshaled upon any foreclosure or
other enforcement of the Collateral Trustee’s Liens

 

51

 

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

 

	
   

  	
  Revolving Credit Agent

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as
  Revolving Credit Agent, and as authorized

  representative of the Revolving Credit Claimholders

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Peter S. Predun

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Peter
  S. Predun

  	
   

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  IB/ABL
  Portfolio Management Group

  
	
   

  	
  270 Park Ave, 4th Floor

  
	
   

  	
  New
  York, NY 10017

  
	
   

  	
  Attention:
  Paul O’Neill

  

 

 

[INTERCREDITOR AGREEMENT]

 

 

	
   

  	
  Collateral Trustee

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as
  Collateral Trustee and as authorized

  representative of the Secured Debt Representatives

  and Secured Debt Claimholders

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patricia Gallagher

  	
   

  
	
   

  	
   

  	
  Name:

  	
  PATRICIA GALLAGHER

  
	
   

  	
   

  	
  Title:

  	
  VICE
  PRESIDENT

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  The
  Bank of New York

  
	
   

  	
  101
  Barclay Street, Floor 8W

  
	
   

  	
  New
  York, NY 10286

  
	
   

  	
  Attention:
  Patricia Gallagher, Vice President

  
	
   

  	
  Telecopier:
  (212) 815-5707

  
	
   

  	
  Email:
  pgallagher@bankofny.com

  
					

 

 

[INTERCREDITOR AGREEMENT]

 

 

	
   

  	
  Notes Agent

  
	
   

  	
   

  
	
   

  	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.,

  as Notes Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William W. Archer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William
  W. Archer

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  Goldman
  Sachs Credit Partners L.P.

  
	
   

  	
  85
  Broad Street

  
	
   

  	
  New
  York, New York 10004

  
	
   

  	
  Attention:
  Stephen King

  
	
   

  	
  Telecopier:
  (212) 357-0932

  
	
   

  	
   

  
	
   

  	
  With
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Goldman
  Sachs Credit Partners L.P.

  
	
   

  	
  85
  Broad Street

  
	
   

  	
  New
  York, New York 10004

  
	
   

  	
  Attention:
  John Makrinos

  
	
   

  	
  Telecopier:
  (212) 357-4597

  
					

 

 

[INTERCREDITOR AGREEMENT]

 

 

Acknowledged and Agreed to by:

 

Company

 

	
  NEWPAGE CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Linda M. Sheffield

  	
   

  
	
   

  	
  Name:
  Linda M. Sheffield

  
	
   

  	
  Title:
  Treasurer

  

 

Notice
Address:

NewPage
Corporation

Courthouse
Plaza N.E.

Dayton,
OH 45463

 

 

Holdings

 

	
  NEWPAGE HOLDING CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Linda M. Sheffield

  	
   

  
	
   

  	
  Name:
  Linda M. Sheffield

  
	
   

  	
  Title:
  Treasurer

  

 

Notice
Address:

NewPage
Holding Corporation

Courthouse
Plaza N.E.

Dayton,
OH 45463

 

 

[INTERCREDITOR AGREEMENT]

 

 

Subsidiary Guarantors

 

CHILLICOTHE PAPER INC.

 

	
  WICKLIFFE PAPER COMPANY

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Linda M. Sheffield

  	
   

  
	
   

  	
  Name:
  Linda M. Sheffield

  
	
   

  	
  Title:   Treasurer

  

 

 

ESCANABA PAPER COMPANY

 

MEADWESTVACO MARYLAND, INC.

(to be named LUKE PAPER COMPANY)

 

MEADWESTVACO OXFORD CORPORATION

(to be named RUMFORD PAPER COMPANY)

 

MEADWESTVACO ENERGY SERVICES LLC

(to be named NEWPAGE ENERGY SERVICES LLC)

 

	
  UPLAND RESOURCES, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Peter H.Vogel

  	
   

  
	
   

  	
  Name:

  	
  Peter
  H.Vogel

  
	
   

  	
  Title:

  	
  President

  
				

 

 

RUMFORD COGENERATION, INC.

 

	
  RUMFORD FALLS POWER COMPANY

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Peter H.Vogel

  	
   

  
	
   

  	
  Name:

  	
  Peter
  H.Vogel

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
				

 

Notice
Address of Subsidiary Guarantors:

c/o
NewPage Corporation

Courthouse
Plaza N.E.

Dayton,
OH 45463

 

 

[INTERCREDITOR AGREEMENT]Exhibit
4.10

 

Execution
Copy

 

 

 

COLLATERAL TRUST AGREEMENT

 

dated
as of May 2, 2005

 

 

among

 

 

NEWPAGE CORPORATION,

 

the
other Pledgors from time to time party hereto,

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as
Administrative Agent under the Term Loan Credit and Guarantee Agreement,

 

HSBC BANK USA, NATIONAL ASSOCIATION,

as
Trustee under the Indentures,

 

and

 

THE BANK OF NEW YORK,

as
Collateral Trustee

 

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1.      DEFINITIONS; PRINCIPLES OF CONSTRUCTION

  	
   

  
	
  SECTION 1.1

  	
  Defined Terms

  	
   

  
	
  SECTION 1.2

  	
  Rules of
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2.      THE TRUST ESTATES

  	
   

  
	
  SECTION 2.1

  	
  Declaration of
  Senior Trust

  	
   

  
	
  SECTION 2.2

  	
  Declaration of
  Junior Trust

  	
   

  
	
  SECTION 2.3

  	
  Priority of Liens

  	
   

  
	
  SECTION
  2.4

  	
  Restrictions on
  Enforcement of Parity Liens

  	
   

  
	
  SECTION 2.5

  	
  Waiver
  of Right of Marshalling

  	
   

  
	
  SECTION 2.6

  	
  Discretion
  in Enforcement of Priority Liens

  	
   

  
	
  SECTION 2.7

  	
  Discretion
  in Enforcement of Priority Lien Obligations

  	
   

  
	
  SECTION 2.8

  	
  Insolvency
  or Liquidation Proceedings

  	
   

  
	
  SECTION 2.9

  	
  Collateral
  Shared Equally and Ratably within Class

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3.      OBLIGATIONS AND POWERS OF COLLATERAL
  TRUSTEE

  	
   

  
	
  SECTION 3.1

  	
  Undertaking
  of the Collateral Trustee

  	
   

  
	
  SECTION 3.2

  	
  Release
  or Subordination of Liens

  	
   

  
	
  SECTION 3.3

  	
  Enforcement
  of Liens

  	
   

  
	
  SECTION 3.4

  	
  Order
  of Application of Proceeds

  	
   

  
	
  SECTION 3.5

  	
  Powers
  of the Collateral Trustee

  	
   

  
	
  SECTION 3.6

  	
  Documents
  and Communications

  	
   

  
	
  SECTION 3.7 

  	
  For
  Sole and Exclusive Benefit of Holders of Secured Obligations

  	
   

  
	
  SECTION 3.8

  	
  Additional
  Secured Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4.      OBLIGATIONS ENFORCEABLE BY THE BORROWER
  AND THE OTHER PLEDGORS

  	
   

  
	
  SECTION 4.1

  	
  Release
  of Liens on Collateral

  	
   

  
	
  SECTION 4.2

  	
  Delivery
  of Copies to Secured Debt Representatives

  	
   

  
	
  SECTION 4.3

  	
  Collateral
  Trustee not Required to Serve, File or Record

  	
   

  
	
  SECTION 4.4

  	
  Release
  of Liens in Respect of Secured Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5.      IMMUNITIES OF THE COLLATERAL TRUSTEE

  	
   

  
	
  SECTION 5.1

  	
  No
  Implied Duty

  	
   

  
	
  SECTION 5.2

  	
  Appointment
  of Agents and Advisors

  	
   

  
	
  SECTION 5.3

  	
  Other
  Agreements

  	
   

  
	
  SECTION 5.4

  	
  Solicitation
  of Instructions

  	
   

  
	
  SECTION 5.5

  	
  Limitation
  of Liability

  	
   

  
	
  SECTION 5.6

  	
  Documents
  in Satisfactory Form

  	
   

  
	
  SECTION 5.7

  	
  Entitled
  to Rely

  	
   

  
	
  SECTION 5.8

  	
  Secured
  Debt Default

  	
   

  
	
  SECTION 5.9

  	
  Actions
  by Collateral Trustee

  	
   

  
	
  SECTION 5.10

  	
  Security
  or Indemnity in favor of the Collateral Trustee

  	
   

  
	
  SECTION 5.11

  	
  Rights
  of the Collateral Trustee

  	
   

  

 

i

 

	
  SECTION 5.12

  	
  Limitations
  on Duty Collateral Trustee in Respect of Collateral

  	
   

  
	
  SECTION 5.13

  	
  Assumption
  of Rights, Not Assumption of Duties

  	
   

  
	
  SECTION 5.14

  	
  No
  Liability for Clean Up of Hazardous Materials

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6.      RESIGNATION
  AND REMOVAL OF THE COLLATERAL TRUSTEE

  	
   

  
	
  SECTION 6.1

  	
  Resignation
  or Removal of Collateral Trustee

  	
   

  
	
  SECTION 6.2

  	
  Appointment
  of Successor Collateral Trustee

  	
   

  
	
  SECTION 6.3

  	
  Succession

  	
   

  
	
  SECTION 6.4

  	
  Merger,
  Conversion or Consolidation of Collateral Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7.      INTERCREDITOR
  AGREEMENT

  	
   

  
	
  SECTION 7.1

  	
  Authorization
  and Effectiveness

  	
   

  
	
  SECTION 7.2

  	
  Amendment
  and Voting

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.      MISCELLANEOUS PROVISIONS

  	
   

  
	
  SECTION
  8.1

  	
  Amendment

  	
   

  
	
  SECTION
  8.2

  	
  Voting

  	
   

  
	
  SECTION
  8.3

  	
  Further Assurances; Insurance

  	
   

  
	
  SECTION
  8.4

  	
  Perfection of Junior Trust Estate

  	
   

  
	
  SECTION
  8.5

  	
  Successors and Assigns

  	
   

  
	
  SECTION
  8.6

  	
  Delay and Waiver

  	
   

  
	
  SECTION
  8.7

  	
  Notices

  	
   

  
	
  SECTION
  8.8

  	
  Notice Following Discharge of Priority Lien
  Obligations

  	
   

  
	
  SECTION
  8.9

  	
  Entire Agreement

  	
   

  
	
  SECTION
  8.10

  	
  Compensation; Expenses

  	
   

  
	
  SECTION
  8.11

  	
  Indemnity

  	
   

  
	
  SECTION
  8.12

  	
  Severability

  	
   

  
	
  SECTION
  8.13

  	
  Headings

  	
   

  
	
  SECTION
  8.14

  	
  Obligations Secured

  	
   

  
	
  SECTION
  8.15

  	
  Governing Law

  	
   

  
	
  SECTION
  8.16

  	
  Consent to Jurisdiction

  	
   

  
	
  SECTION
  8.17

  	
  Waiver of Jury Trial

  	
   

  
	
  SECTION
  8.18

  	
  Counterparts

  	
   

  
	
  SECTION
  8.19

  	
  Effectiveness

  	
   

  
	
  SECTION
  8.20

  	
  Additional Pledgors

  	
   

  
	
  SECTION
  8.21

  	
  Continuing Nature of this Agreement

  	
   

  
	
  SECTION
  8.22

  	
  Insolvency

  	
   

  
	
  SECTION
  8.23

  	
  Rights and Immunities of Secured Debt
  Representatives

  	
   

  
	
  SECTION
  8.24

  	
  Force Majeure

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A — Form of Collateral Trust Joinder

  	
   

  

 

ii

 

This Collateral Trust Agreement (this “Agreement”) is
dated as of May 2, 2005 and is by and among NewPage Corporation, a Delaware
corporation (the “Borrower”), the Pledgors from time to time
party hereto, Goldman Sachs Credit Partners L.P., as Administrative Agent under
the First Lien Term Loan Agreement (as defined below), HSBC Bank USA, National
Association, as Trustee (as defined below), and The Bank of New York, as
Collateral Trustee (in such capacity and together with its successors in such
capacity, the “Collateral Trustee”).

 

RECITALS

 

The Borrower intends to enter into the ABL Facility (as defined
herein), which will provide for $350,000,000 senior secured revolving credit
facilities and a First Lien Term Loan Agreement, dated the date hereof, which
will provide for a $750,000,000 term loan facility (as defined below).

 

The Borrower intends to issue $225.0 million in aggregate principal
amount of Floating Rate Senior Secured Notes due 2012 (the “Floating Notes”) and
$350.0 million in aggregate principal amount of 10% Senior Secured Notes due
2012 (the “Fixed Notes,” and together with the Floating Notes and
including any related exchange notes, the “Notes”) pursuant to
Indentures dated as of the date hereof (as amended, supplemented, amended and
restated or otherwise modified and in effect from time to time, each an “Indenture,” and together, the “Indentures”), each
among the Borrower, the guarantors party thereto and HSBC Bank USA, National
Association, as trustee (in such capacities and together with its successors in
such capacities, the “Trustee”).

 

Capitalized terms used in this Agreement have the meanings assigned to
them above or in Article 1 below.

 

The Borrower and the other Pledgors intend to secure the Obligations
under the First Lien Term Loan Agreement and any future Priority Lien Debt on a
priority basis and, subject to such priority, intend to secure the Obligations
under the Indentures and any future Parity Lien Debt, with Liens on all present
and future Collateral to the extent that such Liens have been provided for in
the applicable Security Documents.

 

This Agreement sets forth the terms on which each Secured Party has
appointed the Collateral Trustee to act as the trustee for the present and
future holders of the Secured Obligations to receive, hold, maintain,
administer and distribute the Collateral at any time delivered to the
Collateral Trustee or the subject of the Security Documents, and to enforce the
Security Documents and all interests, rights, powers and remedies of the
Collateral Trustee with respect thereto or thereunder and the proceeds thereof.

 

AGREEMENT

 

In consideration of the premises and the mutual agreements herein set
forth, the receipt and sufficiency of which are hereby acknowledged, the
parties to this Agreement hereby agree as follows:

 

 

ARTICLE 1. DEFINITIONS; PRINCIPLES OF CONSTRUCTION

 

SECTION 1.1         Defined Terms

 

The following terms will have the following meanings:

 

“ABL
Collateral” means
all now owned or hereafter acquired

 

(a)           “accounts” and “payment intangibles,” other
than “payment intangibles” (in each case, as defined in Article 9 of the UCC)
which constitute identifiable proceeds of the Shared Collateral and/or the
Separate Collateral;

 

(b)           “inventory” (as defined in Article 9 of the
UCC) or documents of title for any inventory;

 

(c)           “deposit
accounts” (as defined in Article 9 of the UCC), “securities accounts” (as
defined in Article 8 of the UCC), including all monies, “uncertificated
securities,” and “securities entitlements” (in each case, as defined in Article
8 of the UCC) contained therein
(including all cash, marketable securities and other funds held in or on
deposit in either of the foregoing), “instruments” (as defined in Article 9 of the
UCC), including Intercompany Notes of Subsidiaries, and “chattel paper” (as
defined in Article 9 of the UCC); provided,
however, that to the extent that instruments or chattel paper
constitute identifiable proceeds of the Shared Collateral or the Separate Collateral
or other identifiable proceeds of the Shared Collateral or the Separate
Collateral are deposited or held in any such bank accounts or securities
accounts after an Enforcement Notice, then such instruments, chattel paper or
other identifiable proceeds shall be treated as Shared Collateral or Separate
Collateral (as applicable);

 

(d)           General Intangibles pertaining to the other
items of property included within clauses (a), (b), (c), (e) and (f) of this
definition of ABL Collateral, including, without limitation, all contingent
rights with respect to warranties on inventory or accounts which are not
yet “payment intangibles” (as defined in Article 9 of the UCC);

 

(e)           “records” (as defined in Article 9 of the
UCC), “supporting obligations” (as defined in Article 9 of the UCC) and related
Letters of Credit, commercial tort claims or other claims and causes of action,
in each case, to the extent related primarily to any of the foregoing; and

 

(f)            substitutions, replacements, accessions,
products and proceeds (including, without limitation, insurance proceeds,
licenses, royalties, income, payments, claims, damages and proceeds of suit) of
any or all of the foregoing.

 

“ABL
Facility” means
that certain Revolving Loan Credit and Guarantee Agreement, dated as of the
date hereof, by and among the Borrower, the guarantors party thereto, the
lenders party thereto, Goldman Sachs Credit Partners L.P., as Administrative
Agent, Joint Lead Arranger, Joint Bookrunner and Co-Syndication Agent, UBS
Securities LLC, as Joint Lead Arranger, Joint Bookrunner and Co-Syndication
Agent, and JPMorgan Chase Bank, N.A., as revolving loan collateral agent.

 

2

 

“Act of
Required Debtholders” means,
as to any matter at any time:

 

(1)           prior to the Discharge of Priority Lien Obligations, a direction in writing
delivered to the Collateral Trustee by or with the written consent of the
holders of more than 50% of the sum of:

 

(a)           the aggregate outstanding principal amount of
Priority Lien Debt (including outstanding letters of credit whether or not then
available or drawn); and

 

(b)           other than in connection with the exercise of
remedies, the aggregate unfunded commitments to extend credit which, when
funded, would constitute Priority Lien Debt; and

 

(2)           at any time after the Discharge of Priority Lien Obligations, a
direction in writing delivered to the Collateral Trustee by or with the written
consent of the holders of Parity Lien Debt representing the Required Parity
Lien Debtholders.

 

For purposes of this definition, (a) Secured
Debt registered in the name of, or beneficially owned by, the Borrower or any
Affiliate of the Borrower (other than Notes held by any Person that is an Affiliate
of the Borrower as of the date hereof and that is regulated by any banking or
insurance authority) will be deemed not to be outstanding, and (b) votes will
be determined in accordance with Section 8.2.

 

“Actionable
Default” means:

 

(1)           the failure to pay any payment of principal
of or interest on any Series of Secured Debt outstanding in the amount of $25.0
million or more resulting in an event of default under the applicable Series of
Secured Debt after payment is due, including payments that are due (or if any
required offer had been timely made would be due) in respect of any mandatory
offer to purchase Parity Lien Debt resulting in an event of default under the
applicable Series of Secured Debt,

 

(2)           the failure to pay in full, when due and
payable in full (whether at maturity, upon acceleration or otherwise), the ABL
Facility, the First Lien Term Loans the Notes or any other Series of Secured
Debt outstanding in the amount of $25.0 million or more,

 

(3)           the exercise by the Collateral Trustee or any
of its co-trustees or agents of any right or power that is exercisable by it
only upon default to take sole and exclusive dominion or control over any
deposits in a deposit account, commodity contract in a commodity account or
financial asset in a securities account constituting any Shared Collateral or
the delivery of any instructions to the Collateral Trustee directing it to foreclose
or otherwise enforce, or to disburse the proceeds of enforcement of, any Lien upon
any Collateral, or

 

3

 

(4)           the occurrence of any “Event of Default” under either of the Indentures
or any Credit Agreement arising from the commencement of any bankruptcy case, receivership
or other Insolvency or Liquidation Proceeding by or against the Borrower or any
of its Subsidiaries or any similar default provision at any time in effect
under any indenture or agreement governing any Series of Secured Debt.

 

“Additional
Secured Debt” has
the meaning set forth in Section 3.8.

 

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this definition,
“control,” as used with respect to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities,
by agreement or otherwise; provided that
beneficial ownership of 10% or more of the Voting Stock of a Person will be
deemed to be control. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

“Agreement” has the meaning set forth in the preamble.

 

“Attributable
Debt” in
respect of a Sale/Leaseback Transaction means, as at the time of determination,
the present value (discounted at the interest rate provided in the applicable Secured
Debt Documents as at such time of determination, compounded annually) of the
total obligations of the lessee for rental payments during the remaining term
of the lease included in such Sale/Leaseback Transaction (including any period
for which such lease has been extended); provided,
however, that if such Sale/Leaseback Transaction results in a
Capital Lease Obligation, the amount of Indebtedness represented thereby will
be determined in accordance with the definition of “Capital Lease Obligation.”

 

“Board of
Directors” means
(1) with respect to a corporation, the board of directors of the corporation or any committee thereof duly
authorized to act on behalf of such board, (2) with respect to a partnership,
the Board of Directors of the general partner of the partnership, (3) with respect
to a limited liability company, the managing member or members or any
controlling committee or board of directors of such company or of the sole
member or of the managing member thereof and (4) with respect to any other
Person, the board or committee of such Person serving a similar function. 

 

“Borrower” has the meaning set forth in the preamble.

 

“Business Day” means any day other than a Saturday, a Sunday
or a day on which banking institutions in the City of New York or at a place of
payment are authorized by law, regulation or executive order to remain closed.

 

“Capital Lease
Obligation” means,
at the time any determination is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalized on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may
be prepaid by the lessee without payment of a penalty.

 

4

 

“Capital Stock” means:

 

(1)  in the case of a corporation, corporate
stock;

 

(2)  in the case of an association or business
entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

(3)  in the case of a partnership or limited
liability company, partnership interests (whether general or limited) or
membership interests; and

 

(4)  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, but excluding from all of
the foregoing any debt securities convertible into Capital Stock, whether or
not such debt securities include any right of participation with Capital Stock.

 

“Cash
Equivalents” means:

 

(1)           United States dollars;

 

(2)           securities issued or directly and fully
guaranteed or insured by the United States government or any agency or instrumentality
of the United States government (provided that the
full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than 360 days from the date of acquisition;

 

(3)           certificates of deposit and eurodollar time
deposits with maturities of six months or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding six months and overnight
bank deposits, in each case, with any lender party to the Credit Agreements or
with any domestic commercial bank having capital and surplus in excess of
$500.0 million and a Thomson Bank Watch Rating of “B” or better at the time of
acquisition;

 

(4)           repurchase obligations for underlying
securities of the types described in clauses (2) and (3) above entered into
with any financial institution meeting the qualifications specified in clause
(3) above;

 

(5)           commercial paper having at the time of
acquisition one of the two highest ratings obtainable from Moody’s or S&P
and, in each case, maturing within nine months after the date of acquisition;
and

 

(6)           securities issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition
thereof and at the time of acquisition thereof, having one of the two highest
ratings obtainable from either Moody’s or S&P;

 

(7)           money market funds at least 95% of the assets
of which constitute Cash Equivalents of the kinds described in clauses (1)
through (6) of this definition; and

 

5

 

(8)           local currencies held by the Borrower or any
of its Restricted Subsidiaries, from time to time in the ordinary course of
business and consistent with past practice.

 

“Class” means (1) in the case of Parity Lien Debt,
all Series of Parity Lien Debt, taken together, and (2) in the case of Priority
Lien Debt, all Series of Priority Lien Debt, taken together.

 

“Collateral” means, in the case of each Series of Secured
Debt, all properties and assets of the Borrower and the other Pledgors now
owned or hereafter acquired in which Liens have been granted to the Collateral
Trustee to secure any or all Secured Obligations, and shall exclude any
properties and assets in which the Collateral Trustee is required to release
its Liens pursuant to Section 3,2; provided
that, if such Liens are required to be released as a result of the
sale, transfer or other disposition of any properties or assets of the Borrower
or any other Pledgor, such assets or properties will cease to be excluded from
the Collateral if the Borrower or any other Pledgor thereafter acquires or
reacquires such assets or properties.

 

“Collateral
Trustee” has the
meaning set forth in the preamble.

 

“Collateral
Trust Joinder” means
an agreement substantially in the form of Exhibit A.

 

“Credit
Agreements” means
each of the ABL Facility and the First Lien Term Loan Agreement, including any
related notes, Guarantees, collateral documents, instruments and agreements
executed in connection therewith, and, in each case, as amended, restated,
modified, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of a receivables financing or
sales of debt securities to institutional investors) in whole or in part from
time to time, including any related agreement extending the maturity of,
refinancing, replacing or otherwise restructuring (including increasing the
amount of available borrowings or letters of credit thereunder or adding
Subsidiaries of the Borrower as additional borrowers or guarantors thereunder)
all or any portion of the Indebtedness under such agreement or any successor or
replacement agreement and whether by the same or any other agent, lender or
group of lenders.

 

‘‘Credit Facilities’’ means one or more debt facilities (including,
without limitation, the Credit Agreements), indentures or commercial paper
facilities, in each case, with banks or other institutional lenders or a
trustee providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special
purpose entities formed to borrow from such lenders against such receivables)
or letters of credit or issuances of senior secured notes, in each case, as
amended, restated, modified, renewed, refunded, replaced (whether upon or after
termination or otherwise), substituted or refinanced (including by means of
sales of debt securities to institutional investors) in whole or in part from
time to time.

 

“Discharge of
Priority Lien Obligations” means the occurrence of all of the following:

 

(1)           termination or expiration of all commitments to extend credit that
would constitute Priority Lien Debt;

 

(2)           payment in full in cash of the principal of and interest and premium
(if any) on all Priority Lien Debt (other than any undrawn letters of credit);

 

6

 

(3)           discharge or cash collateralization (at the
lower of (A) 105% of the aggregate undrawn amount and (B) the percentage of the
aggregate undrawn amount required for release of Liens under the terms of the
applicable Priority Lien Document) of all outstanding letters of credit
constituting Priority Lien Debt; and

 

(4)           payment in full in cash of all other Priority
Lien Obligations that are outstanding and unpaid at the time the Priority Lien
Debt is paid in full in cash (other than any obligations for taxes, costs,
indemnifications, reimbursements, damages and other liabilities in respect of
which no claim or demand for payment has been made at such time).

 

“Domestic
Subsidiary” means any Restricted Subsidiary of the
Borrower that was formed under the laws of the United States or any state of
the United States or the District of Columbia or that guarantees or otherwise
provides direct credit support for any Indebtedness of the Borrower.

 

“Enforcement
Notice” means a
written notice delivered pursuant to the Intercreditor Agreement, at a time
when an event of default under the ABL Facility or an event of default under
the First Lien Term Loan Agreement has occurred and is continuing, by either
Secured Debt Representative thereunder to the other, specifying the relevant
event of default.

 

“equally
and ratably” means,
in reference to sharing of Liens or proceeds thereof as between holders of
Secured Obligations within the same Class, that such Liens or proceeds:

 

(1)           will be allocated and distributed first to the Secured Debt
Representative for each outstanding Series of Secured Debt within that Class,
for the account of the holders of such Series of Secured Debt, ratably in
proportion to the principal of, and interest and premium (if any) and
reimbursement obligations (contingent or otherwise) with respect to letters of
credit, if any, outstanding (whether or not drawings have been made under such
letters of credit) on each outstanding Series of Secured Debt within that Class
when the allocation or distribution is made, and thereafter,

 

(2)           will be allocated and distributed (if any remain after payment in full
of all of the principal of, and interest and premium (if any) and reimbursement
obligations (contingent or otherwise) with respect to letters of credit, if
any, outstanding (whether or not drawings have been made on such letters of
credit) on all outstanding Secured Obligations within that Class) to the
Secured Debt Representative for each outstanding Series of Secured Obligations
within that Class, for the account of the holders of any remaining Secured
Obligations within that Class, ratably in proportion to the aggregate unpaid
amount of such remaining Secured Obligations within that Class due and demanded
(with written notice to the applicable Secured Debt Representative and the Collateral
Trustee) prior to the date such distribution is made;

 

provided, however, that, for the purpose of defining “equally and ratably” during the
pendency of any Actionable Default, and subject to Section 3.4 hereof, if any
payment or distribution is made in cash to any holders of Parity Lien
Obligations from or on account of Separate Collateral by reason of enforcement
of Liens or realization in a bankruptcy case, receivership or other

 

7

 

Insolvency or Liquidation Proceeding, then
any concurrent or subsequent payment or distribution that is to be made in cash
to such holders from or on account of Shared Collateral by reason of any such
enforcement or realization shall be reduced, and any concurrent or subsequent
payment or distribution that is to be made in cash to the remaining holders of
Parity Lien Obligations from or on account of Shared Collateral by reason of
any such enforcement or realization shall be increased, to the extent necessary
to cause the aggregate amount of all payments and distributions made in cash to
all holders of Parity Lien Obligations (whether made from or on account of
Separate Collateral or from or on account of Shared Collateral) by reason of
any such enforcement or realization to be distributed equally and ratably as
fully as if the Separate Collateral had been Shared Collateral; provided, further that, for the purpose of
defining “equally and ratably” during the pendency of any Actionable Default,
and subject to Section 3.4 hereof, if any payment or distribution is made in
cash to any holders of Priority Lien Obligations from or on account of Separate
Collateral by reason of enforcement of Liens or realization in a bankruptcy
case, receivership or other Insolvency or Liquidation Proceeding, then any
concurrent or subsequent payment or distribution that is to be made in cash to
such holders from or on account of Shared Collateral by reason of any such
enforcement or realization shall be reduced, and any concurrent or subsequent
payment or distribution that is to be made in cash to the remaining holders of
Priority Lien Obligations from or on account of Shared Collateral by reason of
any such enforcement or realization shall be increased, to the extent necessary
to cause the aggregate amount of all payments and distributions made in cash to
all holders of Priority Lien Obligations (whether made from or on account of
Separate Collateral or from or on account of Shared Collateral) by reason of
any such enforcement or realization to be distributed equally and ratably as
fully as if the Separate Collateral had been Shared Collateral.

 

“Equity
Interests” means
Capital Stock and all warrants, options or other rights to acquire Capital
Stock (but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).

 

“Fair
Market Value” means
the value that would be paid by a willing buyer to a willing seller in a
transaction not involving distress or necessity of either party determined in
good faith by the Board of Directors of the Borrower.

 

“First
Lien Term Loan Administrative Agent” means, at any time, the Person serving at
such time as the “Agent” or “Administrative Agent” under the First Lien Term
Loan Agreement or any other representative then most recently designated in
accordance with the applicable provisions of the First Lien Term Loan Agreement,
together with its successors in such capacity.

 

“First
Lien Term Loan Agreement” means that certain Term Loan Credit and
Guaranty Agreement, dated as of the date hereof, by and among the Borrower, the
guarantors party thereto, the lenders party thereto, Goldman Sachs Credit
Partners L.P., as Administrative Agent, Joint Lead Arranger, Joint Bookrunner
and Co-Syndication Agent and UBS Securities LLC, as Joint Lead Arranger, Joint
Bookrunner and Co-Syndication Agent.

 

“First
Lien Term Loans” means the principal of and interest and
premium (if any) on Indebtedness of the Borrower incurred under the First Lien
Term Loan Agreement.

 

8

 

“Foreign
Subsidiary” means
any Restricted Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“GAAP” means generally accepted accounting
principles which are in effect on the date of the Indentures set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession or in the rules and regulations of the Securities and Exchange
Commission (the “SEC”) governing the
inclusion of financial statements (including pro forma financial statements) in
periodic reports required to be filed pursuant to Section 13 of the Securities
Exchange Act of 1934, as amended, including opinions and pronouncements in
staff accounting bulletins and similar written statements from the accounting
staff of the SEC.

 

“General
Intangibles” means
“general intangibles” (as defined in Article 9 of the UCC), but excluding “payment
intangibles” (as defined in Article 9 of the UCC), claims under agreements of
the type described under clauses (1), (2) and (3) of the definition of “Hedging
Obligations” and Intellectual Property (as defined in the Intercreditor
Agreement) and any rights thereunder.

 

“Guarantee” means a guarantee other than by endorsement
of negotiable instruments for collection in the ordinary course of business,
direct or indirect, in any manner including, without limitation, by way of a
pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise).

 

“Guarantors” means each of:

 

(1)           each of the Borrower’s Subsidiaries on the
date hereof; and

 

(2)           any other Subsidiary of the Borrower that
executes a Guarantee in accordance with the provisions of any Secured Debt
Document,

 

and their respective
successors and assigns, in each case, until the Guarantee of such Person has been
released in accordance with the provisions of the applicable Secured Debt
Documents.

 

“Hedging
Obligations” means,
with respect to any specified Person, the obligations of such Person under:

 

(1)           interest rate swap agreements (whether from
fixed to floating or from floating to fixed), interest rate cap agreements,
interest rate collar agreements and other agreements or arrangements designated
for the purpose of fixing, hedging or swapping interest rate risk;

 

(2)           other agreements or arrangements designed to
manage interest rates or interest rate risk; and

 

9

 

(3)           other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates or commodity prices.

 

“Indebtedness” means, with respect to any specified Person,
any indebtedness of such Person (excluding accrued expenses and trade
payables), whether or not contingent:

 

(1)           in respect of borrowed money;

 

(2)           evidenced by bonds, notes, debentures or
similar instruments or letters of credit (or reimbursement agreements in
respect thereof) (other than letters of credit issued in respect of trade payables
entered into in the ordinary course of business);

 

(3)           in respect of banker’s acceptances;

 

(4)           representing Capital Lease Obligations;

 

(5)           representing the balance deferred and unpaid
of the purchase price of any property or services due more than six months
after such property is acquired or such services are completed; or

 

(6)           representing any Hedging Obligations,

 

if and to the extent any of
the preceding items (other than letters of credit and Hedging Obligations)
would appear as a liability upon a balance sheet of the specified Person
prepared in accordance with GAAP. In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person.

 

Notwithstanding the foregoing, in connection with the purchase by the
Borrower or any Restricted Subsidiary of any business, the term “Indebtedness”
will exclude post-closing payment adjustments to which the seller may become
entitled to the extent such payment is determined by a final closing balance
sheet or such payment depends on the performance of such business after the
closing; provided, however, that
at the time of closing, the amount of any such payment is not determinable and,
to the extent such payment thereafter becomes fixed and determined, the amount
is paid within 30 days thereafter.

 

“Indemnified
Liabilities” means
any and all liabilities (including all environmental liabilities), obligations,
losses, damages, penalties, actions, judgments, suits, costs, taxes, expenses
or disbursements of any kind or nature whatsoever with respect to the execution,
delivery, performance, administration or enforcement of this Agreement or any
of the other Security Documents, including any of the foregoing relating to the
use of proceeds of any Secured Debt or the violation of, noncompliance with or
liability under, any law (including environmental laws) applicable to or
enforceable against the Borrower, any of its Subsidiaries or any other Pledgor
or any of the Collateral and all reasonable costs and expenses (including
reasonable fees and expenses of legal counsel selected by the Indemnitee)
incurred by any Indemnitee in connection with any claim, action, investigation
or proceeding in any respect relating to any of the foregoing, whether or not
suit is brought.

 

10

 

“Indemnitee” has the meaning set forth in Section 8.11(a).

 

“Indenture” and “Indentures” have the meaning set forth in the
recitals.

 

“Insolvency
or Liquidation Proceeding” means:

 

(1)           any case commenced by or against the Borrower
or any other Pledgor under Title 11, U.S. Code or any similar federal or state
law for the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Borrower or any other Pledgor, any receivership or assignment for the
benefit of creditors relating to the Borrower or any other Pledgor or any
similar case or proceeding relative to the Borrower or any other Pledgor or its
creditors, as such, in each case whether or not voluntary;

 

(2)           any liquidation, dissolution, marshalling of
assets or liabilities or other winding up of or relating to the Borrower or any
other Pledgor, in each case whether or not voluntary and whether or not
involving bankruptcy or insolvency; or

 

(3)           any other proceeding of any type or nature in
which substantially all claims of creditors of the Borrower or any other
Pledgor are determined and any payment or distribution is or may be made on
account of such claims.

 

“Intercompany
Notes of Subsidiaries” means
all indebtedness owing by any of the Borrower’s Subsidiaries to the Borrower or
any of the Borrower’s other Subsidiaries, whether or not represented by a note
or agreement.

 

“Intercreditor
Agreement” means
that certain intercreditor agreement, dated as of the date hereof, among the
Borrower, New Page Holding Corporation, certain Subsidiaries of the Borrower,
JPMorgan Chase Bank, N.A., as Collateral Agent under the ABL Facility (the “ABL
Collateral Agent”), as
amended, supplemented, restated, modified, renewed or replaced (whether upon or
after termination or otherwise), in whole or in part from time to time, or any
other successor agreement and whether among the same or any other parties.

 

“Junior
Trust Estate” has
the meaning set forth in Section 2.2.

 

“Letter
of Credit” means
any present and future “letter of credit” (as defined in Article 5 of the UCC).

 

“Lien” means, with respect to any asset, any
mortgage, lien, pledge, charge, security interest or encumbrance of any kind in
respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in such asset.

 

“Lien
Sharing and Priority Confirmation” means:

 

(1)           as to any Series of Parity Lien Debt, the
written agreement of the holders of such Series of Parity Lien Debt, as set
forth in the indentures, credit agreement or other

 

11

 

agreement governing such
Series of Parity Lien Debt, for the enforceable benefit of all holders of each
existing and future Series of Priority Lien Debt and Parity Lien Debt, each
existing and future Priority Lien Representative and Parity Lien Representative
and each existing and future holder of Permitted Liens:

 

(a)             that all Parity Lien Obligations will be and
are secured equally and ratably by all Parity Liens at any time granted by the
Borrower or any Guarantor to secure any Obligations in respect of such Series
of Parity Lien Debt, whether or not upon property otherwise constituting Shared
Collateral for such Series of Parity Lien Debt, and that all such Parity Liens
will be enforceable by the Collateral Trustee for the benefit of all holders of
Parity Lien Obligations equally and ratably; provided that the holders of any
future Parity Lien Debt that constitutes a “security” for purposes of the
Securities Act of 1933, as amended, will not be entitled to be secured by any
Separate Collateral;

 

(b)             that the holders of Obligations in respect of
such Series of Parity Lien Debt are bound by the provisions of this Agreement,
including the provisions relating to the ranking of Parity Liens and the order
of application of proceeds from the enforcement of Parity Liens;

 

(c)             consenting to and directing the Collateral
Trustee to perform its obligations under this Agreement and the other Security
Documents; and

 

(d)             consenting to the terms of the Intercreditor
Agreement; and

 

(2)            as to any Series of Priority Lien Debt, the
written agreement of the holders of such Series of Priority Lien Debt, as set
forth in the credit agreement, indenture or other agreement governing such
Series of Priority Lien Debt, for the enforceable benefit of all holders of
each existing and future Series of Parity Lien Debt, each existing and future
Parity Lien Representative and each existing and future holder of Permitted
Liens:

 

(a)            that all Priority Lien Obligations will be
and are secured equally and ratably by all Priority Liens at any time granted
by the Borrower or any other Pledgor to secure any Obligations in respect of
such Series of Priority Lien Debt, whether or not upon property otherwise
constituting collateral for such Series of Priority Lien Debt, and that all
such Priority Liens will be enforceable by the Collateral Trustee for the
benefit of all holders of Priority Lien Obligations equally and ratably; provided that the holders of any future Priority Lien Debt that constitutes
a “security” for purposes of the Securities Act of 1933, as amended, will not
be entitled to be secured by any Separate Collateral;

 

(b)            that the holders of Obligations in respect of
such Series of Priority Lien Debt are bound by the provisions of this
Agreement, including the provisions relating to the ranking of Priority Liens
and the order of application of proceeds from enforcement of Priority Liens;

 

(c)            consenting to and directing the Collateral
Trustee to perform its obligations under this Agreement and the other Security
Documents; and

 

12

 

(d)            consenting to the terms of the Intercreditor
Agreement.

 

“Moody’s” means Moody’s Investors
Service, a division of Dun & Bradstreet Corporation, and its successors and
assigns.

 

“Non-Recourse
Debt” means
Indebtedness:

 

(1)           as to which neither the Borrower nor any of
its Restricted Subsidiaries (a) provides credit support of any kind (including
any undertaking, agreement or instrument that would constitute Indebtedness),
(b) is directly or indirectly liable as a guarantor or otherwise, or (c)
constitutes the lender;

 

(2)           no default with respect to which (including
any rights that the holders of the Indebtedness may have to take enforcement
action against an Unrestricted Subsidiary) would permit upon notice, lapse of
time or both any holder of any other Indebtedness of the Borrower or any of its
Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment of the Indebtedness to be accelerated or payable prior to its
Stated Maturity; and

 

(3)           as to which (a) the explicit terms provide
that there is no recourse against any assets of the Borrower or any of its
Restricted Subsidiaries or (b) the lenders have been notified in writing that
they will not have any recourse to the stock or assets of the Borrower or any
of its Restricted Subsidiaries.

 

“Notes” has the meaning set forth in the recitals.

 

“Note
Documents” means
the Indentures, the Notes and the Security Documents.

 

“Obligations” means any principal (including reimbursement
obligations with respect to letters of credit whether or not drawn), interest
(including all interest accrued thereon after the commencement of any
Insolvency or Liquidation Proceeding at the rate, including any applicable
post-default rate, specified in the Priority Lien Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such
proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable under the documentation governing any Indebtedness.

 

“Officers’
Certificate” means a certificate with respect to
compliance with a condition or covenant provided for in this Agreement, signed
on behalf of the Borrower by two officers of the Borrower, one of whom must be
the principal executive officer, the principal financial officer, the treasurer
or the principal accounting officer of the Borrower, including:

 

(a)            a statement that the Person making such
certificate has read such covenant or condition;

 

(b)           a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions
contained in such certificate are based;

 

13

 

(c)           a statement that, in the opinion of such
Person, he or she has made such examination or investigation as is necessary to
enable him or her to express an informed opinion as to whether or not such
covenant or condition has been satisfied; and

 

(d)           a statement as to whether or not, in the
opinion of such Person, such condition or covenant has been satisfied.

 

“Parity
Lien” means
a Lien granted by a Security Document to the Collateral Trustee, at any time,
upon any property of the Borrower or any Guarantor to secure Parity Lien
Obligations.

 

“Parity
Lien Debt” means:

 

(1)           the Notes issued (including any related Exchange Notes) and the related
Guarantees on the date hereof, and all other Obligations of the Borrower or the
Guarantors under the Indentures; and

 

(2)           any other Indebtedness of the Borrower (including additional Notes), which
may be guaranteed by the Guarantors, that is secured equally and ratably with
the Notes by a Parity Lien that was permitted to be incurred and so secured
under each applicable Secured Debt Document; provided
that:

 

(a)           the net proceeds are used to refund,
refinance, replace, defease, discharge or otherwise acquire or retire Priority
Lien Debt or other Parity Lien Debt; or

 

(b)           on the date of incurrence of such
Indebtedness, after giving pro forma effect to the incurrence thereof and the
application of the proceeds therefrom, the Secured Leverage Ratio would not be
greater than 4.0 to 1.0;

 

provided, further, in the case of any Indebtedness referred to
in clause (3) of this definition, that:

 

(a)           on or before the date on which such
Indebtedness is incurred by the Borrower, such Indebtedness is designated by
the Borrower, in an Officers’ Certificate delivered to each Parity Lien
Representative and the Collateral Trustee, as “Parity Lien Debt” for the
purposes of the Indentures and this Agreement; provided
that no Series of Secured Debt may be designated as both Parity Lien
Debt and Priority Lien Debt;

 

(b)          such Indebtedness is governed by an
indenture, credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation; and

 

(c)           all requirements set forth in this Agreement
as to the confirmation, grant or perfection of the Collateral Trustee’s Lien to
secure such Indebtedness or Obligations in respect thereof are satisfied (and
the satisfaction of such requirements and the other provisions of this clause
(c) will be conclusively established if the Borrower delivers to the Collateral
Trustee an Officers’

 

14

 

Certificate
stating that such requirements and other provisions have been satisfied and
that such Indebtedness is “Parity Lien Debt”).

 

“Parity
Lien Documents” means,
collectively, the Note Documents and the indenture, credit agreement or other
agreement governing each other Series of Parity Lien Debt and the Security
Documents (other than any Security Documents that do not secure Parity Lien
Obligations).

 

“Parity
Lien Obligations” means
Parity Lien Debt and all other Obligations in respect thereof.

 

“Parity
Lien Representative” means:

 

(1)           in the case of each series of the Notes, the
applicable Trustee for such series; or

 

(2)           in the case of any other Series of Parity
Lien Debt, the trustee, agent or representative of the holders of such Series
of Parity Lien Debt who maintains the transfer register for such Series of
Parity Lien Debt and (A) is appointed as a Parity Lien Representative (for
purposes related to the administration of the Security Documents) pursuant to
an indenture, credit agreement or other agreement governing such Series of Parity
Lien Debt, together with its successors in such capacity, and (B) that has
become party to this Agreement by executing a Collateral Trust Joinder.

 

“Permitted Liens” means:

 

(1)           any Liens held by the Collateral Trustee
securing (A) Priority Lien Debt in an aggregate principal amount not exceeding
the Priority Lien Cap (as defined in the Indentures) and (B) all related
Priority Lien Obligations;

 

(2)           Liens held by the Collateral Trustee equally
and ratably securing (A) the Notes issued on the date hereof (and the related
exchange notes) and all future Parity Lien Debt that was permitted by all
applicable Secured Debt Documents to be incurred and (B) all related Parity
Lien Obligations; provided that, notwithstanding
the foregoing, any future Parity Lien Debt that does not constitute a “security”
for purposes of the Securities Act of 1933, as amended, will be permitted to be
secured by Separate Collateral pursuant to this clause (2) even if the Liens
held by the Collateral Trustee securing such Indebtedness do not equally and
ratably secure the Notes issued on the date hereof (and the related exchange
notes) and any future Parity Lien Debt that constitutes a “security” for
purposes of the Securities Act of 1933, as amended;

 

(3)           Liens securing (A) Revolving Credit Debt up
to the Revolving Credit Debt Cap and (B) all related Revolving Credit
Obligations (as defined in the Indentures), together with the Liens on the
Shared Collateral granting limited access rights with respect to the ABL
Collateral;

 

(4)           Liens in favor of the Borrower or the
Guarantors;

 

15

 

(5)             Liens to secure the performance of tenders,
completion guarantees, statutory obligations, surety or appeal bonds, bids,
leases, government contracts, performance bonds or other obligations of a like
nature incurred in the ordinary course of business;

 

(6)             Liens to secure Indebtedness (including
Capital Lease Obligations) or Attributable Debt permitted by clause (b)(6) of
Section 4.09 of the Indentures or comparable provisions of any other Secured
Debt Documents covering only the assets acquired with or financed by such
Indebtedness or in the case of real property or fixtures, including additions
and improvements, the real property on which such assets is attached;

 

(7)             Liens existing on the date hereof;

 

(8)             Liens for taxes, assessments or governmental
charges or claims that are not yet delinquent or that are being contested in
good faith by appropriate proceedings promptly instituted and diligently
concluded; provided that any
reserve or other appropriate provision as is required in conformity with GAAP
has been made therefor;

 

(9)             Liens imposed by law, such as carriers’
warehousemen’s, landlords’ mechanics’ suppliers, materialmen’s and repairmen’s
Liens, or in favor of customs or revenue authorities or freight forwarders or
handlers to secure payment of custom duties, in each case, incurred in the
ordinary course of business;

 

(10)           any state of facts an accurate survey would
disclose, public and private roads, timber cutting and hauling contracts,
timber sales contracts, prescriptive easements or adverse possession claims,
minor encumbrances, easements or reservations of, or rights of others for,
pursuant to any leases, licenses, rights-of-way or other similar agreements or
arrangements, development, air or water rights, sewers, electric lines, telegraph
and telephone lines and other utility lines, pipelines, service lines, railroad
lines, improvements and structures located on, over or under any property,
drains, drainage ditches, culverts, electric power or gas generating or co-generation,
storage and transmission facilities and other similar purposes, zoning or other
restrictions as to the use of real property or minor defects in title, which
were not incurred to secure payment of Indebtedness and that do not in the
aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

 

(11)           Liens created for the benefit of (or to
secure) the Notes (or the guarantees thereof);

 

(12)           Liens to secure any Permitted Refinancing
Indebtedness (as defined in the Indentures) permitted to be incurred under the
Indentures (other than Revolving Credit Debt, Parity Lien Debt or Priority Lien
Debt); provided, however, that
the new Lien shall be limited to all or part of the same property and assets
that secured or, under the written agreements pursuant to which the
Indebtedness being refinanced arose, could secure the original Lien (plus
improvements and accessions to, such property or proceeds or distributions
thereof);

 

16

 

(13)          Liens incurred in the ordinary course of business of the Borrower or
any Subsidiary of the Borrower with respect to Indebtedness and other
obligations that do not exceed $20.0 million at any one time outstanding;

 

(14)          Liens upon specific items of inventory or other goods and proceeds of
any Person securing such Person’s obligations in respect of bankers’
acceptances issued or created for the account of such Person to facilitate the
purchase, shipment or storage of such inventory or other goods;

 

(15)          Liens incurred or pledges or deposits made in the ordinary course of business
in connection with workers’ compensation, unemployment insurance and other types
of social security and employee health and disability benefits, or
casualty—liability insurance or self insurance including any Lien securing
letters of credit issued in the ordinary course of business consistent with
past practice in connection therewith;

 

(16)          judgment and attachment Liens not giving rise to an Event of Default
(as defined in the applicable Secured Debt Document) and notices of lis
pendens and associated rights related to litigation being
contested in good faith by appropriate proceedings and for which adequate
reserves have been made in conformity with GAAP;

 

(17)          Liens securing Hedging Obligations incurred pursuant to clause (b)(10)
of Section 4.09 of the Indentures or comparable provisions of any other Secured
Debt Documents;

 

(18)          any extension, renewal or replacement, in whole or in part, of any Lien
described in clauses (6), (7), (20), (21) or (22) of this definition; provided that any such extension, renewal or replacement is no more
restrictive in any material respect than the Lien so extended, renewed or
replaced and does not extend to any additional property or assets, in
conformity with GAAP;

 

(19)          Liens on Receivables and Related Assets of the type specified in the definition
of “Qualified Receivables Transaction” in the Indentures to secure Indebtedness
incurred and outstanding under clause (b)(2) of Section 4.09 of the Indentures
or comparable provisions of any other Secured Debt Documents;

 

(20)          any interest or title of a lessor, licensor, or sublicense under any
operating lease, license or sublicense, as applicable;

 

(21)          Liens on assets of Foreign Subsidiaries securing Indebtedness incurred pursuant
to clause (b)(l7) of Section 4.09 of the Indentures or comparable provisions of
any other Secured Debt Documents; and

 

(22)          Liens in favor of collecting or payor banks having a right of setoff, revocation,
refund or chargeback with respect to money or instruments of the Borrower or
any Restricted Subsidiary thereof on deposit with or in possession of such
bank.

 

17

 

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company, government or any other
entity.

 

“Pledgors” means the Borrower, the Guarantors and any
other Person (if any) that at any time provides collateral security for any
Secured Obligations.

 

“Priority
Lien” means a
Lien granted by a Security Document to the Collateral Trustee, at any time,
upon any property of the Borrower or any other Pledgor to secure Priority Lien Obligations.

 

“Priority
Lien Debt” means:

 

(1)           Indebtedness of the Borrower (which may be
guaranteed by the Guarantors) under the First Lien Term Loan Agreement that was
permitted to be incurred and secured under each applicable Secured Debt Document
(or as to which the lenders under such credit agreement obtained an Officers’
Certificate at the time of incurrence to the effect that such Indebtedness was
permitted to be incurred and secured by all applicable Secured Debt Documents);

 

(2)           any other Indebtedness of the Borrower (which
may be guaranteed by the Guarantors) that is secured by a Priority Lien that
was permitted to be incurred and so secured under each applicable Secured Debt
Document; provided, in the case
of any Indebtedness referred to in this clause (2), that:

 

(a)           on or before the date on which such
Indebtedness is incurred, such Indebtedness is designated by the Borrower, in
an Officers’ Certificate delivered to each Secured Debt Representative and the
Collateral Trustee, as “Priority Lien Debt” for the purposes of the Secured
Debt Documents; provided that no
Series of Secured Debt may be designated as both Parity Lien Debt and Priority Lien
Debt;

 

(b)           such Indebtedness is governed by an
indenture, credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation; and

 

(c)           all requirements set forth in this Agreement
as to the confirmation, grant or perfection of the Collateral Trustee’s Lien to
secure such Indebtedness or Obligations in respect thereof are satisfied (and
the satisfaction of such requirements and the other provisions of this clause
(c) will be conclusively established if the Borrower delivers to the Collateral
Trustee an Officers’ Certificate stating that such requirements and other
provisions have been satisfied and that such Indebtedness is “Priority
Lien Debt”); and

 

(3)           Hedging Obligations of the Borrower (which
may be guaranteed by the Guarantors) incurred to hedge or manage interest rate
risk with respect to Priority Lien Debt or Parity Lien Debt, or to protect the
Borrower against fluctuation in currency exchange rates or commodity prices; provided that:

 

18

 

(a)           such Hedging Obligations are secured by a
Priority Lien on all of the assets and properties that secure Priority Lien
Debt in respect of which such Hedging Obligations are incurred; and

 

(b)           such Priority Lien is senior to or on a
parity with the Priority Liens securing Priority Lien Debt in respect of which
such Hedging Obligations are incurred.

 

“Priority
Lien Documents” means
the First Lien Term Loan Agreement and any other indenture, credit agreement or
other agreement pursuant to which any Priority Lien Debt is incurred and the
Security Documents (other than any Security Documents that do not secure Priority
Lien Obligations).

 

“Priority
Lien Obligations” means
the Priority Lien Debt and all other Obligations in respect of Priority Lien
Debt.

 

“Priority
Lien Representative” means:

 

(a)          the First Lien Term Loan Administrative
Agent; or

 

(b)          in the case of any other Series of Priority
Lien Debt, the trustee, agent or representative of the holders of such Series
of Priority Lien Debt who maintains the transfer register for such Series of
Priority Lien Debt and is appointed as a representative of the Priority Lien
Debt (for purposes related to the administration of the Security Documents)
pursuant to the credit agreement or other agreement governing such Series of Priority
Lien Debt.

 

“Receivables” means accounts receivable (including all
rights to payment created by or arising from the sale of goods, or the
rendition of services, no matter how evidenced (including in the form of
chattel paper) and whether or not earned by performance) of the Borrower or any
Restricted Subsidiary, whether now existing or arising in the future.

 

“Related
Assets” means
any Receivables or interests therein and any assets related thereto, including,
without limitation, all Collateral securing such Receivables, all contracts and
contract rights, purchase orders, security interests, financing statements or
other documentation in respect of such Receivables, any guarantees,
indemnities, warranties or other documentation in respect of such Receivables,
any other assets that are customarily transferred or in respect of which
security interests are customarily granted in connection with asset
securitization transactions involving receivables similar to such Receivables
and any collections or proceeds of any of the foregoing.

 

“Required
Parity Lien Debtholders” means,
at any time, the holders of a majority in aggregate principal amount of all
Parity Lien Debt then outstanding, calculated in accordance with the provisions
of Section 8.2. For purposes of this definition, Parity Lien Debt registered in
the name of, or beneficially owned by, the Borrower or any Affiliate of the
Borrower (other than Notes held by any Person that is an Affiliate of the
Borrower as of the date hereof and that is regulated by any banking or
insurance authority) will be deemed not to be outstanding.

 

19

 

“Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

 

“Revolving
Credit Debt” means:

 

(1)           Indebtedness of the Borrower (which may be guaranteed
by the Guarantors) under the ABL Facility that was permitted to be incurred and
secured under each applicable Secured Debt Document (or as to which the lenders
under such Credit Agreement obtained an Officers’ Certificate at or before the
time of incurrence to the effect that such Indebtedness was permitted to be
incurred and secured by all applicable Secured Debt Documents); and

 

(2)           any other Indebtedness of the Borrower (which
may be guaranteed by the Guarantors) that is secured by a Lien on the ABL
Collateral that was permitted to be incurred and so secured under each
applicable Secured Debt Document; provided, in
the case of any Indebtedness referred to in this clause (2) that on or before
the date on which such Indebtedness is incurred, such Indebtedness is
designated by the Borrower, in an Officers’ Certificate delivered to each
Secured Debt Representative and the Collateral Trustee as “Revolving Credit
Debt” for purposes of the Secured Debt Documents; provided, further, that no Series of Secured Debt may be
designated as Revolving Credit Debt and Priority Lien Debt or Parity Lien Debt;

 

provided,
further that no
Indebtedness will be considered to be “Revolving Credit Debt” if on the date it
was incurred the aggregate principal amount of all outstanding Revolving Credit
Debt exceeds the Revolving Credit Debt Cap as of such date (unless the lenders
under the applicable Credit Facility obtained an Officers’ Certificate at or
before the time of incurrence to the effect that such Indebtedness was permitted
to be incurred and secured by all applicable Secured Debt Documents). For
purposes of this definition, letters of credit may constitute “Revolving Credit
Debt.” All outstanding letters of credit will be deemed to have a principal
amount equal to the maximum potential liability of the Borrower and its
Restricted Subsidiaries thereunder.

 

“Revolving
Credit Debt Cap” means
an amount equal to the amount of Indebtedness permitted to be incurred pursuant
to clauses (1) or (19) of the definition of Permitted Debt (as defined in the
Indentures) less (A) any
Indebtedness incurred under clauses (1) or (19) of the definition of Permitted
Debt that has been designated Priority Lien Debt and (B) less any Parity Lien
Debt applied to repay revolving credit indebtedness incurred under clauses (1)
or (19) of the definition of Permitted Debt.

 

“S&P” means Standard & Poor’s Ratings Services
and its successors and assigns.

 

“Sale/Leaseback
Transaction” means
an arrangement relating to property owned by the Borrower or a Restricted
Subsidiary on the date hereof or thereafter acquired by the Borrower or a
Restricted Subsidiary whereby the Borrower or a Restricted Subsidiary transfers
such property to a Person and the Borrower or a Restricted Subsidiary leases it
from such Person.

 

“Secured
Debt” means,
collectively, all Parity Lien Debt and Priority Lien Debt.

 

20

 

“Secured
Debt Default” means
any event or condition which, under the terms of any credit agreement,
indenture or other agreement governing any Series of Secured Debt causes, or
permits holders of Secured Debt outstanding thereunder (with or without the
giving of notice or lapse of time, or both, and whether or not notice has been
given or time has lapsed) to cause, the Secured Debt outstanding thereunder to
become immediately due and payable.

 

“Secured
Debt Documents” means
the Parity Lien Documents and the Priority Lien Documents.

 

“Secured
Debt Representative” means
each Parity Lien Representative and each Priority Lien Representative.

 

“Secured
Leverage Ratio” means,
on any date, the ratio of:

 

(1)           the aggregate principal amount of Secured
Debt, Revolving Credit Debt and Capital Lease Obligations outstanding on such
date plus all Indebtedness of Restricted Subsidiaries of the Borrower that are
not Guarantors outstanding on such date (and, for this purpose, letters of
credit will be deemed to have a principal amount equal to the face amount
thereof, whether or not drawn), to:

 

(2)           the aggregate amount of the Borrower’s
Consolidated Adjusted EBITDA (as defined in the Indentures) for the most recent
four-quarter period for which financial information is available.

 

In
addition, for purposes of calculating the Secured Leverage Ratio:

 

(1)            acquisitions that have been made by the
specified Person or any of its Restricted Subsidiaries, including through
mergers or consolidations, or any Person or any of its Restricted Subsidiaries
acquired by the specified Person or any of its Restricted Subsidiaries, and
including any related financing transactions and including increases in ownership
of Restricted Subsidiaries, during the four-quarter reference period or subsequent
to such reference period and on or prior to the date on which the event for which
the calculation of the Secured Leverage Ratio is made (the “Leverage Calculation Date”) will
be given pro forma effect (in accordance with Regulation S-X under the Securities
Act), including Pro Forma Cost Savings (as defined in the Indentures) whether or
not such Pro Forma Cost Savings comply with Regulation S-X, as if they had
occurred on the first day of the four-quarter reference period;

 

(2)            the Consolidated Adjusted EBITDA attributable
to discontinued operations, as determined in accordance with GAAP, and
operations or businesses (and ownership interests therein disposed of prior to
the Leverage Calculation Date, will be excluded (including by adding back the
amount of any attributable Consolidated Adjusted EBITDA that was negative);

 

(3)            the Interest Expense (as defined in the Indentures)
attributable to discontinued operations, as determined in accordance with GAAP,
and operations or businesses (and ownership interests therein) disposed of
prior to the Leverage Calculation Date, will be excluded, but only to the
extent that the obligations giving rise to such

 

21

 

Interest
Expense will not be obligations of the specified Person or any of its
Restricted Subsidiaries following the Leverage Calculation Date;

 

(4)           any Person that is a Restricted Subsidiary on
the Leverage Calculation Date will be deemed to have been a Restricted
Subsidiary at all times during such four-quarter period;

 

(5)           any Person that is not a Restricted
Subsidiary on the Leverage Calculation Date will be deemed not to have been a
Restricted Subsidiary at any time during such four-quarter period; and

 

(6)           if any Indebtedness bears a floating rate of
interest, the interest expense on such Indebtedness will be calculated as if
the rate in effect on the Leverage Calculation Date had been the applicable
rate for the entire period (taking into account any Hedging Obligation
applicable to such Indebtedness if such Hedging Obligation has a remaining term
as at the Leverage Calculation Date in excess of 12 months).

 

“Secured
Obligations” means,
collectively, all Parity Lien Obligations and all Priority Lien Obligations.

 

“Secured
Parties” means
the holders of Secured Obligations and the Secured Debt Representatives.

 

“Security
Documents” means
this Agreement, the Intercreditor Agreement, each Lien Sharing and Priority
Confirmation, and all security agreements, pledge agreements, collateral assignments,
mortgages, collateral agency agreements, control agreements, deeds of trust or other
grants or transfers for security executed and delivered by the Borrower or any
other Pledgor creating (or purporting to create) a Lien upon Collateral in
favor of the Collateral Trustee, in each case, as amended, modified, renewed,
restated or replaced, in whole or in part, from time to time, in accordance
with its terms and Section 8.1.

 

“Senior
Trust Estate” has
the meaning set forth in Section 2.1.

 

“Separate
Collateral” means
the Stock of Subsidiaries and Intercompany Notes of Subsidiaries, unless at the
relevant time of consideration, such Intercompany Notes of Subsidiaries secure
obligations under the ABL Facility.

 

“Series
of Parity Lien Debt” means,
severally, the Notes and each other issue or series of Parity Lien Debt for
which a single transfer register is maintained.

 

“Series
of Priority Lien Debt” means,
severally, Indebtedness outstanding under the First Lien Term Loan Agreement
and any other Credit Facility that constitutes Priority Lien Debt.

 

“Series
of Secured Debt” means,
severally, each Series of Parity Lien Debt and each Series of Priority Lien
Debt.

 

“Shared
Collateral” means
all properties and assets at any time owned or acquired by the Borrowers or any
of the other Pledgors, except:

 

22

 

(1)           Separate Collateral;

 

(2)           ABL Collateral;

 

(3)           any properties and assets in which the Collateral Trustee is required
to release its Liens pursuant to Section 4.1 of this Agreement; and

 

(4)           any properties and assets that no longer secure the Notes or any
Obligations in respect thereof pursuant to Section 4.4 of this Agreement;

 

provided that, in the case of clauses (3) and (4), if such Liens are required to
be released as a result of the sale, transfer or other disposition of any
properties or assets of the Borrower or any other Pledgor, such assets or
properties will cease to be excluded from the Collateral if the Borrower or any
other Pledgor thereafter acquires or reacquires such assets or properties.

 

“Significant
Subsidiary” means
any Subsidiary that would be a “significant subsidiary” as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such Regulation is in effect on the date of the
Indentures.

 

“Stated
Maturity” means,
with respect to any installment of interest or principal (in any series of
Indebtedness, the date on which the payment of interest or principal was
scheduled to be paid in the documentation governing such Indebtedness as of the
date of the Indentures, and will not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

 

“Stock of
Subsidiaries” means
all Capital Stock of, and Equity Interests in, Subsidiaries of the Borrower.

 

“Subsidiary” means, with respect to any specified Person:

 

(1)           any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that
effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination
thereof); and

 

(2)           any partnership (a) the sole general partner
or the managing general partner of which is such Person or a Subsidiary of such
Person or (b) the only general partners of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof);  provided,
however, that notwithstanding the foregoing, Rumford Cogeneration
Company Limited Partnership, a Maine limited partnership (“Rumford L.P.”)
shall not constitute a Subsidiary of the Borrower, unless and until
the Borrower directly or indirectly acquires all of the limited partner
interests in Rumford L.P.

 

23

 

“Trustee” has the meaning set forth in the recitals.
References in this Agreement to the Trustee shall be deemed to be references to
the Trustee under either of the Indentures or both such trustees, as the
context requires.

 

“Trust
Estates” has the
meaning set forth in Section 2.2.

 

“UCC” means the Uniform Commercial Code as in
effect from time to time in the State of New York, when the context implies,
the Uniform Commercial Code as in effect from time to time in any other
applicable jurisdiction.

 

“Unrestricted
Subsidiary” means
any Subsidiary of the Borrower that is designated by the Board of Directors of
the Borrower as an Unrestricted Subsidiary pursuant to a resolution of the
Board of Directors, but only to the extent that such Subsidiary:

 

(1)          has no Indebtedness other than Non-Recourse
Debt;

 

(2)          except as permitted by Section 4.20 of the
Indentures or comparable provisions of any other Secured Debt Documents, is not
party to any agreement, contract, arrangement or understanding with the
Borrower or any Restricted Subsidiary of the Borrower unless the terms of any
such agreement, contract, arrangement or understanding are no less favorable to
the Borrower or such Restricted Subsidiary than those that might be obtained at
the time from Persons who are not Affiliates of the Borrower;

 

(3)          is a Person with respect to which neither the
Borrower nor any of its Restricted Subsidiaries has any direct or indirect
obligation (a) to subscribe for additional Equity Interests or (b) to maintain
or preserve such Person’s financial condition or to cause such Person to
achieve any specified levels of operating results; and

 

(4)          has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Borrower or any
of its Restricted Subsidiaries unless such guarantee or credit support is
released upon its designation as an Unrestricted Subsidiary.

 

“Voting
Stock” of any
specified Person as of any date means the Capital Stock of such Person that is
at the time entitled to vote in the election of the Board of Directors of such
Person.

 

SECTION 1.2         Rules of Interpretation.

 

(a)         All terms used in this Agreement that are
defined in Article 9 of the UCC and not otherwise defined herein have the
meanings assigned to them in Article 9 of the UCC.

 

(b)         Unless otherwise indicated, any reference to
any agreement or instrument will be deemed to include a reference to that
agreement or instrument as assigned, amended, supplemented, amended and
restated, or otherwise modified and in effect from time to time or replaced in
accordance with the terms of this Agreement.

 

24

 

(c)           The use in this Agreement or any of the other
Security Documents of the word “include” or “including,” when following any
general statement, term or matter, will not be construed to limit such
statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not
nonlimiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but will be deemed to
refer to all other items or matters that fall within the broadest possible
scope of such general statement, term or matter. The word “will” shall be
construed to have the same meaning and effect as the word “shall.”

 

(d)           References to “Sections,” “clauses,” “recitals”
and the “preamble” will be to Sections, clauses, recitals and the preamble,
respectively, of this Agreement unless otherwise specifically provided.
References to “Articles” will be to Articles of this Agreement unless otherwise
specifically provided. References to “Exhibits” and “Schedules” will be to
Exhibits and Schedules, respectively, to this Agreement unless otherwise
specifically provided.

 

(e)           Notwithstanding anything to the contrary in
this Agreement, any references contained herein to any section, clause,
paragraph, definition or other provision of the Indentures (including any
definition contained therein) shall be deemed to be a reference to such section,
clause, paragraph, definition or other provision as in effect on the date of
this Agreement; provided that any
reference to any such section, clause, paragraph or other provision shall refer
to such section, clause, paragraph or other provision of the Indentures
(including any definition contained therein) as amended or modified from time
to time if such amendment or modification has been (1) made in accordance with
the Indentures and (2) prior to the Discharge of Priority Lien Obligations,
approved in a writing delivered to the Trustee and the Collateral applicable
Trustee by, or on behalf of, the requisite holders of Priority Lien Obligations
as are needed (if any) under the terms of the applicable Priority Lien
Documents to approve such amendment or modification. Notwithstanding the
foregoing, whenever any term used in this Agreement is defined or otherwise
incorporated by reference to the Indentures, such reference shall be deemed to
have the same effect as if such definition or term had been set forth herein in
full and such term shall continue to have the meaning established pursuant to
the Indentures notwithstanding the termination or expiration of the Indentures
or redemption of all Obligations evidenced thereby.

 

(f)           This Agreement and the other Security
Documents will be construed without regard to the identity of the party who
drafted it and as though the parties participated equally in drafting it.
Consequently, each of the parties acknowledges and agrees that any rule of construction
that a document is to be construed against the drafting party will not be
applicable either to this Agreement or the other Security Documents.

 

(g)          The provisions of the Trust Indenture Act of
1939, as amended (15 U.S.C. §§ 77aaa-77bbbb) (the “TIA”), that
are applicable to obligations and duties of the Collateral Trustee or the
Pledgors in respect of the Collateral are hereby incorporated by reference and
to the extent that there are provisions contained in this Agreement that
conflict with the duties imposed by the TIA, the provisions of the TIA will
control.

 

25

 

ARTICLE 2. THE TRUST ESTATES

 

SECTION
2.1         Declaration of Senior Trust.

 

To secure the payment of the Priority Lien Obligations and in
consideration of the mutual agreements set forth in this Agreement, each of the
Pledgors has granted to the Collateral Trustee, and the Collateral Trustee has
accepted and hereby agrees to hold, in trust under this Agreement for the
benefit of all present and future holders of Priority Lien Obligations, all of
the Liens granted by such Pledgor’s and all of the Collateral Trustee’s right,
title and interest in, to and under all Collateral granted to the Collateral
Trustee under any Security Document for the benefit of the holders of Priority
Lien Obligations, together with all of the Collateral Trustee’s right, title
and interest in, to and under the Security Documents, and all interests,
rights, powers and remedies of the Collateral Trustee thereunder or in respect
thereof and all cash and non-cash proceeds thereof (collectively, the “Senior
Trust Estate”).

 

The
Collateral Trustee and its successors and assigns under this Agreement will
hold the Senior Trust Estate in trust for the benefit solely and exclusively of
all present and future holders of Priority Lien Obligations as security for the
payment of all present and future Priority Lien Obligations.

 

Notwithstanding
the foregoing, if at any time:

 

(1)          all Liens securing the Priority Lien
Obligations have been released as provided in Section 4.1;

 

(2)          the Collateral Trustee holds no other
property in trust as part of the Senior Trust Estate;

 

(3)          no monetary obligation (other than
indemnification and other contingent obligations not then due and payable and
letters of credit that have been cash collateralized as provided in clause (3)
of the definition of “Discharge of
Priority Lien Obligations”) is outstanding and payable under this
Agreement to the Collateral Trustee or any of its co-trustees or agents
(whether in an individual or representative capacity); and

 

(4)          the Borrower delivers to the Collateral
Trustee an Officers’ Certificate stating that all Priority Liens of the
Collateral Trustee have been released in compliance with all applicable
provisions of the Priority Lien Documents and that the Pledgors are not
required by any Priority Lien Document to grant any Priority Lien upon any
property,

 

then the senior trust
arising hereunder will terminate, except that all provisions set forth in
Sections 8.10 and 8.11 that are enforceable by the Collateral Trustee or any of
its co-trustees or agents (whether in an individual or representative capacity)
will remain enforceable in accordance with their terms.

 

The
parties further declare and covenant that the Senior Trust Estate will be held
and distributed by the Collateral Trustee subject to the further agreements
herein.

 

26

 

SECTION
2.2        Declaration of Junior Trust.

 

To
secure the payment of the Parity Lien Obligations and in consideration of the
premises and the mutual agreements set forth herein, each of the Pledgors has
granted to the Collateral Trustee, and the Collateral Trustee has accepted and
hereby agrees to hold, in trust under this Agreement for the benefit of all
present and future holders of Parity Lien Obligations, all of the Liens granted
by such Pledgor’s and all of the Collateral Trustee’s right, title and interest
in, to and under all Collateral granted to the Collateral Trustee under any
Security Document for the benefit of the holders of Parity Lien Obligations,
together with all of the Collateral Trustee’s right, title and interest in, to
and under the Security Documents, and all interests, rights, powers and
remedies of the Collateral Trustee thereunder or in respect thereof and all
cash and non-cash proceeds thereof (collectively, the “Junior Trust Estate,” and together with the Senior Trust
Estate, the “Trust Estates”).

 

The
Collateral Trustee and its successors and assigns under this Agreement will
hold the Junior Trust Estate in trust for the benefit solely and exclusively of
all present and future holders of Parity Lien Obligations as security for the
payment of all present and future Parity Lien Obligations.

 

Notwithstanding
the foregoing, if at any time:

 

(1)          all Liens securing the Parity Lien
Obligations have been released as provided in Section 4.1;

 

(2)          the Collateral Trustee holds no other
property in trust as part of the Junior Trust Estate;

 

(3)          no monetary obligation (other than
indemnification and other contingent obligations not then due and payable and
letters of credit that have been cash collateralized as provided in clause (3)
of the definition of “Discharge of Priority Lien Obligations”) is outstanding and payable under
this Agreement to the Collateral Trustee or any of its co-trustees or
agents (whether in an individual or representative capacity); and

 

(4)          the Borrower delivers to the Collateral
Trustee an Officers’ Certificate stating that all Parity Liens of the
Collateral Trustee have been released in compliance with all applicable
provisions of the Parity Lien Documents and that the Pledgors are not required
by any Parity Lien Document to grant any Parity Lien upon any property,

 

then
the junior trust arising hereunder will terminate, except that all provisions
set forth in Sections 8.10 and 8.11 that are enforceable by the Collateral
Trustee or any of its co-trustees or agents (whether in an individual or
representative capacity) will remain enforceable in accordance with their
terms.

 

The
parties further declare and covenant that the Junior Trust Estate will be held
and distributed by the Collateral Trustee subject to the further agreements
herein.

 

27

 

SECTION
2.3        Priority of Liens. Notwithstanding anything else contained
herein or in any other Security Document, it is the intent of the parties that:

 

(1)          this Agreement and the other Security
Documents create two separate and distinct Trust Estates and Liens: the Senior
Trust Estate and Priority Lien securing the payment and performance of the
Priority Lien Obligations and the Junior Trust Estate and Parity Lien securing
the payment and performance of the Parity Lien Obligations; and

 

(2)          the Liens securing the Parity Lien
Obligations are subject and subordinate to the Liens securing the Priority Lien
Obligations.

 

SECTION 2.4        Restrictions on Enforcement
of Parity Liens.

 

(a)           Until the Discharge of Priority Lien
Obligations, the holders of Obligations under the First Lien Term Loan
Agreement and other Priority Lien Obligations will have, subject to the
exceptions set forth below in clauses (1) through (4), Section 10.04 of the Indentures
or any other comparable provision in any other Secured Debt Documents and subject
to the rights of the holders of Permitted Liens, the exclusive right to
authorize and direct the Collateral Trustee with respect to the Security
Documents and the Collateral including, without limitation, the exclusive right
to authorize or direct the Collateral Trustee to enforce, collect or realize on
any Collateral or exercise any other right or remedy with respect to the
Collateral and neither the Trustee nor the holders of the Notes or other Parity
Lien Obligations may authorize or direct the Collateral Trustee with respect to
such matters. Notwithstanding the foregoing, the Trustee and the holders of the
Notes (together with any other holder of Parity Lien Obligations) may, subject
to the rights of the other holders of Permitted Liens, direct the Collateral
Trustee:

 

(1)           without any condition or restriction
whatsoever, at any time after the Discharge of Priority Lien Obligations;

 

(2)           as necessary to redeem any Collateral in a
creditor’s redemption permitted by law or to deliver any notice or demand
necessary to enforce (subject to the prior Discharge of Priority Lien
Obligations) any right to claim, take or receive proceeds of Collateral
remaining after the Discharge of Priority Lien Obligations in the event of foreclosure
or other enforcement of any Permitted Lien;

 

(3)           as necessary to perfect or establish the
priority (subject to Priority Liens and other Permitted Liens) of the Parity
Liens upon any Collateral; provided that, unless
otherwise agreed to by the Collateral Trustee in the Security Documents, the Trustee
and the holders of Parity Lien Obligations may not require the Collateral
Trustee to take any action to perfect any Collateral through possession or
control; or

 

(4)           as necessary to create, prove, preserve or
protect (but not enforce) the Parity Liens upon any Collateral.

 

(b)           Subject to Section 10.04 of the Indentures or
any other comparable provision in any other Secured Debt Documents, until the
Discharge of Priority Lien

 

28

 

Obligations, none of the holders of the Notes
or other Parity Lien Obligations, the Collateral Trustee or any Parity Lien
Representative will:

 

(1)           request judicial relief, in an Insolvency or Liquidation Proceeding or
in any other court, that would hinder, delay, limit or prohibit the lawful
exercise or enforcement of any right or remedy otherwise available to the
Collateral Trustee or the holders of Priority Lien Obligations in respect of
the Priority Liens or that would limit, invalidate, avoid or set aside any
Priority Lien or subordinate the Priority Liens to the Parity Liens or grant
the Parity Liens equal ranking to the Priority Liens;

 

(2)           oppose or otherwise contest any motion for relief from the automatic
stay or from any injunction against foreclosure or enforcement of Priority Liens
made by the Collateral Trustee or any holder of Priority Lien Obligations or
any Priority Lien Representative in any Insolvency or Liquidation Proceeding;

 

(3)           oppose or otherwise contest any lawful exercise by the Collateral Trustee
or any holder of Priority Lien Obligations or any Priority Lien Representative
of the right to credit bid Priority Lien Debt at any sale in foreclosure of
Priority Liens;

 

(4)           oppose or otherwise contest any other request for judicial relief made
in any court by the Collateral Trustee or any holder of Priority Lien
Obligations or any Priority Lien Representative relating to the lawful
enforcement of any Priority Lien; or

 

(5)           challenge the validity, enforceability,
perfection or priority of the Priority Liens.

 

Notwithstanding the foregoing, both before
and during an Insolvency or Liquidation Proceeding, the holders of the Notes
and other Parity Lien Obligations and the Parity Lien Representatives may take
any actions and exercise any and all rights that would be available to a holder
of unsecured claims, including, without limitation, the commencement of an
Insolvency or Liquidation Proceeding against the Borrower or the Guarantors in
accordance with applicable law; provided that,
by accepting a Note, each holder of Notes will agree not to take any of the
actions prohibited by clauses (1) through (5) of this Section 2.4(b) or oppose
or contest any order that it has agreed not to oppose or contest under Section
2.8.

 

(c)           At any time prior to the Discharge of
Priority Lien Obligations and after (1) the commencement of any Insolvency or
Liquidation Proceeding in respect of the Borrower or any other Pledgor or (2)
the Collateral Trustee and each Parity Lien Representative have received
written notice from any Priority Lien Representative at the direction of an Act
of Required Debtholders stating that (i) any Series of Priority Lien Debt has
become due and payable in full (whether at maturity, upon acceleration or
otherwise) or (ii) the holders of Priority Liens securing one or more Series of
Priority Lien Debt have become entitled under any Priority Lien Documents to
and desire to enforce any or all of the Priority Liens by reason of a default
under such Priority Lien Documents, no payment of money (or the equivalent of
money) shall be made from the proceeds of
Collateral by the Borrower or any other Pledgor to the Collateral
Trustee (other than distributions to the Collateral Trustee for the benefit of
the holders of Priority

 

29

 

Lien Obligations), any Parity Lien
Representative, any holder of Notes or any other holder of Parity Lien
Obligations (including, without limitation, payments and prepayments made for
application to Parity Lien Obligations and all other payments and deposits made
pursuant to any provision of the Indentures, the Notes, the Guarantees or any
other Parity Lien Document).

 

(d)           Subject to Section 10.04 of the Indentures or
comparable provisions of any other Secured Debt Documents, all proceeds of
Collateral received by the Collateral Trustee, any Parity Lien Representative,
any holder of Notes or any other holder of Parity Lien Obligations in violation
of Section 2.2(c) will be held by the Collateral Trustee, the applicable Parity
Lien Representative or the applicable holder of Parity Lien Obligations for the
account of the holders of Priority Liens and remitted to any Priority Lien
Representative upon demand by such Priority Lien Representative. The Parity
Liens will remain attached to and enforceable against all proceeds so held or
remitted. Subject to Section 10.04 of the Indentures or comparable provisions
of any other Secured Debt Documents, all proceeds of Collateral received by the
Collateral Trustee, holders of Parity Lien Obligations and Parity Lien
Representatives not in violation of Section 2.2(c) will be received by the
Collateral Trustee, such Parity Lien Representatives or such holder of Parity
Lien Obligations free from the Priority Liens and all other Liens except the
Parity Liens and the Permitted Liens.

 

SECTION 2.5        Waiver of Right of
Marshalling.

 

(a)          Prior to the Discharge of Priority Lien
Obligations, the holders of the Notes and other Parity Lien Obligations, each
Parity Lien Representative and the Collateral Trustee may not assert or enforce
any right of marshalling accorded to a junior lienholder, as against the
Collateral Trustee, the holders of Priority Lien Obligations and the Priority
Lien Representatives (in their capacity as priority lienholders).

 

(b)          Following the Discharge of Priority Lien
Obligations, the holders of Parity Lien Obligations and any Parity Lien
Representative may assert their right under the UCC or otherwise to any
proceeds remaining following a sale or other disposition of Collateral by, or
on behalf of, the Collateral Trustee or the holders of Priority Lien
Obligations.

 

SECTION 2.6       Discretion in Enforcement of
Priority Liens.

 

(a)          In exercising rights and remedies with
respect to the Collateral, the Priority Lien Representatives may enforce (or
refrain from enforcing) or instruct the Collateral Trustee to enforce the
provisions of the Priority Lien Documents and exercise (or refrain from
exercising) or instruct the Collateral Trustee to exercise remedies thereunder
or any such rights and remedies, all in such order and in such manner as they
may determine in the exercise of their sole and exclusive discretion,
including:

 

(1)          the exercise or forbearance from exercise of all rights and remedies in
respect of the Collateral and/or the Priority Lien Obligations;

 

(2)          the enforcement or forbearance from enforcement of any Priority Lien in
respect of the Collateral;

 

30

 

(3)           the exercise or forbearance from exercise of
rights and powers of a holder of shares of stock included in the Senior Trust
Estate to the extent provided in the Security Documents;

 

(4)           the acceptance of the Collateral in full or
partial satisfaction of the Priority Lien Obligations; and

 

(5)           the exercise or forbearance from exercise of
all rights and remedies of a secured lender under the UCC or any similar law of
any applicable jurisdiction or in equity.

 

SECTION 2.7        Discretion in Enforcement of
Priority Lien Obligations.

 

(a)           Without in any way limiting the generality of
Section 2.6, the holders of Priority Lien Obligations and the Priority Lien
Representatives may, at any time and from time to time, without the consent of
or notice to holders of Parity Lien Obligations or the Parity Lien Representatives,
without incurring responsibility to holders of Parity Lien Obligations and the Parity
Lien Representatives and without impairing or releasing the subordination
provided in this Agreement or the obligations hereunder of holders of Parity
Lien Obligations and the Parity Lien Representatives, do any one or more of the
following:

 

(1)           change the manner, place or terms of payment
or extend the time of payment of, or renew or alter, the Priority Lien
Obligations, or otherwise amend or supplement in any manner the Priority Lien
Obligations, or any instrument evidencing the Priority Lien Obligations or any
agreement under which the Priority Lien Obligations are
outstanding;

 

(2)           release any Person or entity liable in any
manner for the collection of the Priority Lien Obligations;

 

(3)           release the Priority Lien on any Collateral;
and

 

(4)           exercise or refrain from exercising any
rights against any Pledgor. 

 

SECTION 2.8        Insolvency or Liquidation
Proceedings.

 

(a)           If in any Insolvency or Liquidation
Proceeding and prior to the Discharge of Priority Lien Obligations, the holders
of Priority Lien Obligations by an Act of Required Debtholders consent to any
order:

 

(1)          for use of cash collateral;

 

(2)          approving a debtor-in-possession financing
secured by a Lien that is senior to or on a parity with all Priority Liens upon
any property of the estate in such Insolvency or Liquidation Proceeding;

 

31

 

(3)           granting any relief on account of Priority
Lien Obligations as adequate protection (or its equivalent) for the benefit of
the holders of Priority Lien Obligations in the Collateral subject to Priority
Liens; or

 

(4)           relating to a sale of assets of the Borrower
or any other Pledgor that provides, to the extent the assets sold are to be
free and clear of Liens, that all Priority Liens and Parity Liens will attach
to the proceeds of the sale;

 

then, the holders of the Notes and other
Parity Lien Obligations, in their capacity as holders of secured claims and
each Parity Lien Representative will not oppose or otherwise contest the entry
of such order, so long as none of the holders of Priority Lien Obligations or
any Priority Lien Representative in any respect opposes or otherwise contests
any request made by any holder of the Notes or other Parity Lien Obligations or
a Parity Lien Representative for the grant to the Collateral Trustee, for the
benefit of the holders of the
Notes or other Parity Lien Obligations, of a junior Lien upon any property on
which a Lien is (or is to be) granted under such order to secure the Priority
Lien Obligations, co-extensive in all respects with, but subordinated (as set forth
in Section 2.3) to, such Lien and all Priority Liens on such property.

 

Notwithstanding
the foregoing, both before and during an Insolvency or Liquidation Proceeding,
the holders of the Notes or other Parity Lien Obligations and the Parity Lien
Representatives may take any actions and exercise any and all rights that would
otherwise be available to a holder of unsecured claims, including, without
limitation, the commencement of Insolvency or Liquidation Proceedings against
the Borrower or any Guarantor in accordance with applicable law; provided that, by accepting a Note, each
holder of Notes agrees not to
take any of the actions
prohibited under Section 2.4(b) or oppose or contest any order that it has
agreed not to oppose or contest under clauses (1) through (4) of the preceding
paragraph.

 

(b)           The holders of the Notes or other Parity Lien Obligations or any Parity
Lien Representative will not file or prosecute in any Insolvency or Liquidation
Proceeding any motion for adequate protection (or any comparable request for
relief) based upon their interest in the Collateral under the Parity Liens,
except that:

 

(1)           they may freely seek and obtain relief: (A) granting
a junior Lien co-extensive in all respects with, but subordinated (as set forth
in Section 2.3) to, all Liens granted in such Insolvency or Liquidation
Proceeding to, or for the benefit of, the holders of Priority Lien Obligations;
or (B) in connection with the confirmation of any plan of reorganization or
similar dispositive restructuring plan; and

 

(2)           they may freely seek and obtain any relief
upon a motion for adequate protection (or any comparable relief), without any
condition or restriction whatsoever, at any time after the Discharge of
Priority Lien Obligations.

 

SECTION 2.9         Collateral Shared Equally
and Ratably within Class. The
parties to this Agreement agree that the payment and satisfaction of all of the
Secured Obligations within each Class will be secured equally and ratably by
the Liens established in favor of the Collateral Trustee for the benefit of the
Secured Parties belonging to such Class. It is understood and

 

32

 

agreed that nothing in this Section 2.9 is
intended to alter the priorities among Secured Parties belonging to different
Classes as provided in Section 2.3.

 

ARTICLE 3. OBLIGATIONS AND POWERS OF COLLATERAL TRUSTEE

 

SECTION
3.1        Undertaking of the Collateral Trustee.

 

(a)           Subject to, and in accordance with, this
Agreement, the Collateral Trustee will, as trustee, for the benefit solely and
exclusively of the present and future Secured Parties:

 

(1)           accept, enter into, hold, maintain,
administer and enforce all Security Documents, including all Collateral subject
thereto, and all Liens created thereunder, perform its obligations under the
Security Documents and protect, exercise and enforce the interests, rights,
powers and remedies granted or available to it under, pursuant to or in
connection with the Security Documents;

 

(2)           take all lawful and commercially reasonable
actions permitted under the Security Documents that it may deem necessary or
advisable to protect or preserve its interest in the Collateral subject thereto
and such interests, rights, powers and remedies;

 

(3)           deliver and receive notices pursuant to the
Security Documents;

 

(4)           sell, assign, collect, assemble, foreclose
on, institute legal proceedings with respect to, or otherwise exercise or
enforce the rights and remedies of a secured party (including a mortgagee,
trust deed beneficiary and insurance beneficiary or loss payee) with respect to
the Collateral under the Security Documents and its other interests, rights,
powers and remedies;

 

(5)           remit as provided in Section 3.4 all cash
proceeds received by the Collateral Trustee from the collection, foreclosure or
enforcement of its interest in the Collateral under the Security Documents or
any of its other interests, rights, powers or remedies;

 

(6)           execute and deliver amendments to the
Security Documents as from time to time authorized pursuant to Section 8.1
accompanied by an Officers’ Certificate to the effect that the amendment was permitted
under Section 8.1; and

 

(7)           release any Lien granted to it by any Security
Document upon any Collateral if and as required by Section 4.1(b).

 

(b)           Each party to this Agreement acknowledges and
consents to the undertaking of the Collateral Trustee set forth in Section
3.1(a) and agrees to each of the other provisions of this Agreement applicable
to the Collateral Trustee.

 

(c)           Notwithstanding anything to the contrary
contained in this Agreement, the Collateral Trustee will not commence any
exercise of remedies or any foreclosure actions or otherwise take any action or
proceeding against any of the Collateral (other than actions as

 

33

 

necessary to prove, protect
or preserve the Liens securing the Secured Obligations) unless and until it
shall have been directed by written notice of an Act of Required Debtholders
and then only in accordance with the provisions of this Agreement.

 

(d)           Notwithstanding anything to the contrary
contained in this Agreement, no institution serving as administrative agent
under the ABL Facility, Parity Lien Representative or Priority Lien
Representative may serve as Collateral Trustee, but any such Priority Lien
Representative or administrative agent under the ABL Facility may serve as an
agent for the Collateral Trustee.

 

SECTION 3.2        Release or Subordination of Liens. The Collateral Trustee will not release or
subordinate any Lien of the Collateral Trustee or consent to the release or subordination
of any Lien of the Collateral Trustee, except:

 

(a)           as directed by an Act of Required Debtholders
accompanied by an Officers’ Certificate to the effect that the release or
subordination was permitted by each applicable Secured Debt Document;

 

(b)           as required by Article 4;

 

(c)           as ordered pursuant to applicable law under a
final and nonappealable order or judgment of a court of competent jurisdiction;

 

(d)           for the subordination of the Junior Trust
Estate and the Parity Liens to the Senior Trust Estate and the Priority Liens;
or

 

(e)           releases of ABL Collateral to the extent
required by the Intercreditor Agreement.

 

SECTION 3.3        Enforcement of Liens. If the Collateral Trustee at any time
receives written notice that any event has occurred that constitutes a default
under any Secured Debt Document entitling the Collateral Trustee to foreclose
upon, collect or otherwise enforce its Liens thereunder, the Collateral Trustee
will promptly deliver written notice thereof to each Secured Debt
Representative and to the administrative agent under the ABL Facility.
Thereafter, the Collateral Trustee may await direction by an Act of Required
Debtholders and will act, or decline to act, as directed by an Act of Required
Debtholders, in the exercise and enforcement of the Collateral Trustee’s
interests, rights, powers and remedies in respect of the Collateral or under
the Security Documents or applicable law and, following the initiation of such
exercise of remedies, the Collateral Trustee will act, or decline to act, with
respect to the manner of such exercise of remedies as directed by an Act of
Required Debtholders. Unless it has been directed to the contrary by an Act of
Required Debtholders, the Collateral Trustee in any event may (but will not be
obligated to) take or refrain from taking such action with respect to any
default under any Secured Debt Document as it may deem advisable and in the
best interest of the holders of Secured Obligations, subject in all cases to
the terms of the Intercreditor Agreement.

 

34

 

 

SECTION 3.4        Order of Application of Proceeds.

 

(a)           The Collateral Trustee will apply the
proceeds of any collection, sale, foreclosure or other realization upon any
Shared Collateral and the proceeds of any title insurance policy required under
any Priority Lien Document or Parity Lien Document in the following order of application:

 

FIRST, to the payment of all amounts payable under this Agreement on
account of the Collateral Trustee’s fees and any reasonable legal fees, costs
and expenses or other liabilities of any kind incurred by the Collateral
Trustee or any co-trustee or agent of the Collateral Trustee in connection with
any Security Document, including amounts I reasonably necessary to provide for
the expenses of the Collateral Trustee in maintaining and disposing of the
Collateral;

 

SECOND,
to the repayment of Indebtedness and other Obligations, other than Secured
Debt, secured by a Permitted Lien on the Collateral sold or realized upon;

 

THIRD,
equally and ratably to the respective Priority Lien Representatives for
application to the payment of all outstanding Priority Lien Debt and any other
Priority Lien Obligations that are then due and payable in such order as may be
provided in the Priority Lien Documents in an amount sufficient to pay in full
in cash all outstanding Priority Lien Debt and all other Priority Lien
Obligations that are then due and payable (including all interest accrued
thereon after the commencement of any Insolvency or Liquidation Proceeding at
the rate, including any applicable post-default rate, specified in the Priority
Lien Documents, even if such interest is not enforceable, allowable or allowed
as a claim in such proceeding, and including the discharge or cash
collateralization (at the lower of (1) 105% of the aggregate undrawn amount and
(2) the percentage of the aggregate undrawn amount required for release of
Liens under the terms of the applicable Priority Lien Document) of all
outstanding letters of credit constituting Priority Lien Debt);

 

FOURTH,
equally and ratably to the respective Parity Lien Representatives for application
to the payment of all outstanding Parity Lien Debt and any other Parity Lien Obligations
that are then due and payable in such order as may be provided in the Parity Lien
Documents in an amount sufficient to pay in full in cash all outstanding Parity
Lien Debt and all other Parity Lien Obligations that are then due and payable
(including, to the extent legally permitted, all interest accrued thereon after
the commencement of any Insolvency or Liquidation Proceeding at the rate,
including any applicable post-default rate, specified in the Parity Lien
Documents, even if such interest is not enforceable, allowable or allowed as a
claim in such proceeding, and including the discharge or cash collateralization
(at the lower of (1) 105% of the aggregate undrawn amount and (2) the percentage
of the aggregate undrawn amount required for release of Liens under the terms
of the applicable Parity Lien Document) of all outstanding letters of credit,
if any, constituting Parity Lien Debt); and

 

FIFTH,
any surplus remaining after the payment in full in cash of amounts described in
the preceding clauses will be paid to the Borrower or the applicable pledgor,
as the case may be, its successors or assigns, or as a court of competent
jurisdiction may direct.

 

35

 

(b)           If any Parity Lien Representative or any
holder of a Parity Lien Obligation collects or receives any proceeds of such
foreclosure, collection or other enforcement that should have been applied to
the payment of the Priority Lien Obligations in accordance with Section 3.4(a)
above, whether after the commencement of an Insolvency or Liquidation
Proceeding or otherwise, such Parity Lien Representative or such holder of a
Parity Lien Obligation, as the case may be, will forthwith deliver the same to
the Collateral Trustee, for the account of the holders of the Priority Lien
Obligations and other Obligations secured by a Permitted Lien, to be applied in
accordance with Section 3.4(a). Until so delivered, such proceeds will be held
by that Parity Lien Representative or that holder of a Parity Lien Obligation,
as the case may be, for the benefit of the holders of the Priority Lien
Obligations and other Obligations secured by a Permitted Lien.

 

(c)           This Section 3.4 is intended for the benefit
of, and will be enforceable as a third party beneficiary by, each present and
future holder of Secured Obligations, each present and future Secured Debt
Representative and the Collateral Trustee as holder of Priority Liens and
Parity Liens. The Secured Debt Representative of each future Series of Secured
Debt will be required to deliver a Lien Sharing and Priority Confirmation to
the Collateral Trustee and each other Secured Debt Representative at the time
of incurrence of such Series of Secured Debt.

 

(d)           In connection with the application of
proceeds pursuant to Section 3.4(a), except as otherwise directed by an Act of
Required Debtholders, the Collateral Trustee may sell any non-cash proceeds for
cash prior to the application of the proceeds thereof.

 

SECTION 3.5        Powers of the Collateral Trustee.

 

(a)           The Collateral Trustee is irrevocably
authorized and empowered to enter
into and perform its obligations and protect, perfect, exercise and enforce its
interest, rights, powers and remedies under the Security Documents and
applicable law and in equity and to act as set forth in this Article 3 or as
requested in any lawful directions given to it from time to time in respect of
any matter by an Act of Required Debtholders.

 

(b)          A Secured Debt Representative or holder of
Secured Obligations will not have any liability whatsoever for any act or
omission of the Collateral Trustee if such act or omission is not taken
pursuant to any lawful directions given to it from time to time in respect of any
matter by an Act of Required Debtholders.

 

SECTION 3.6        Documents and Communications. The Collateral Trustee will permit each
Secured Debt Representative and each holder of Secured Obligations upon
reasonable written notice from time to time to inspect and copy, at the cost
and expense of the party requesting such copies, any and all Security Documents
and other documents, notices, certificates, instructions or communications
received by the Collateral Trustee in its capacity as such.

 

SECTION 3.7        For Sole and Exclusive Benefit of
Holders of Secured Obligations. The Collateral
Trustee will accept, hold, administer and enforce all Liens on the Collateral
at any time transferred or delivered to it and all other interests, rights,
powers and remedies at any time granted to or enforceable by the Collateral
Trustee and all other property of the Trust Estates solely and exclusively for
the benefit of the present and future holders of present and future

 

36

 

Secured Obligations, and will distribute all
proceeds received by it in realization thereon or from enforcement thereof
solely and exclusively pursuant to the provisions of Section 3.4.

 

SECTION 3.8        Additional Secured Debt.

 

(a)           The Collateral Trustee will, as trustee
hereunder, perform its undertakings set forth in Section 3.l(a) with respect to
each holder of Secured Obligations of a Series of Secured Debt that is issued
or incurred after the date hereof that:

 

(1)           holds Secured Obligations that are identified
as Parity Lien Debt or Priority Lien Debt in accordance with the procedures set
forth in Section 3.8(b);

 

(2)           signs, through its designated Secured Debt
Representative identified pursuant to Section 3.8(b), a Collateral Trust
Joinder; and

 

(3)           delivers a Lien Sharing and Priority
Confirmation.

 

(b)          The Borrower or other applicable Pledgor will
be permitted to designate as an additional holder of Secured Obligations
hereunder each Person who is, or who becomes, the registered holder of Parity
Lien Debt or the registered holder of Priority Lien Debt incurred by the
Borrower or such other Pledgor after the date of this Agreement in accordance
with me terms of all applicable Secured Debt Documents. The Borrower or other
applicable Pledgor may effect such designation by delivering to the Collateral
Trustee, with copies to each previously identified Secured Debt Representative,
each of the following:

 

(1)          an Officers’ Certificate stating that;

 

(A)         the Borrower or such other Pledgor intends to
incur additional Secured Debt (“Additional
Secured Debt”) which will either be (i) Priority
Lien Debt permitted by each applicable Secured Debt Document to be secured by a
Priority Lien equally and ratably with all previously existing and future
Priority Lien Debt, or (ii) Parity Lien Debt permitted by each applicable
Secured Debt Document to be secured with a Parity Lien equally and ratably with
all previously existing and future Parity Lien Debt;

 

(2)          evidence that the Borrower or such other
Pledgor has duly authorized, executed (if applicable) and recorded (or caused
to be recorded) in each appropriate governmental office all relevant filings
and recordations to ensure that the Additional Secured Debt is secured by the
Collateral in accordance with the Security Documents; and

 

(3)          a written notice specifying the name and
address of the Secured Debt Representative for such series of Additional
Secured Debt for purposes of Section 8.7.

 

Notwithstanding the
foregoing, nothing in this Agreement will be construed to allow the Borrower or
any other Pledgor to incur additional Indebtedness unless otherwise permitted
by the terms of all applicable Secured Debt Documents.

 

37

 

ARTICLE 4. OBLIGATIONS ENFORCEABLE BY THE BORROWER

AND THE OTHER PLEDGORS

 

SECTION 4.1         Release of Liens on Collateral.

 

(a)            The Collateral Trustee’s Liens upon the
Collateral will be released:

 

(1)            in whole, upon (A) payment in full and
discharge of all outstanding Secured Debt and all other Secured Obligations
that are outstanding, due and payable at the time all of the Secured Debt is
paid in full and discharged and (B) termination or expiration of all
commitments to extend credit under all Secured Debt Documents and the cancellation
or termination or cash collateralization (at the lower of (1) 105% of the aggregate
undrawn amount and (2) the percentage of the aggregate undrawn amount required
for release of Liens under the terms of the applicable Secured Debt Documents) of
all outstanding letters of credit issued pursuant to any Secured Debt
Documents;

 

(2)            as to any Collateral that is sold,
transferred or otherwise disposed of by the Borrower or any other Pledgor to a
Person that is not (either before or after such sale, transfer or disposition)
the Borrower or a Restricted Subsidiary of the Borrower in a transaction or
other circumstance that complies with Section 4.10 of the Indentures and is permitted
by the Secured Debt Documents, at the time of such sale, transfer or other disposition
or to the extent of the interest sold, transferred or otherwise disposed of; provided that the Collateral Trustee’s
Liens upon the Collateral will not be released if the sale or disposition is
subject to Section 5.01 of the Indentures;

 

(3)            as to a release of any Collateral
constituting less than all or substantially all of the Shared Collateral, if
consent to the release of all Priority Liens on such Collateral has been given
by an Act of Required Debtholders;

 

(4)            as to a release of any Collateral
constituting less than all or substantially all of the Separate Collateral, if
consent has been given by a majority of the holders of the Priority Lien Debt
which have a Lien on the Separate Collateral or, after a Discharge of Priority
Lien Debt, a majority of the holders of the Parity Lien Debt which have a Lien
on the Separate Collateral;

 

(5)            as to a release of all or substantially all
of the Shared Collateral, if (A) consent to the release of that Collateral has
been given by the requisite percentage or number of holders of each Series of
Secured Debt at the time outstanding as provided for in the applicable Secured
Debt Documents and (B) the Borrower has delivered an Officers’ Certificate to
the Collateral Trustee certifying that any such necessary consents have been
obtained; and

 

(6)            as to any ABL Collateral, as provided in the
Intercreditor Agreement.

 

(b)           The Collateral Trustee agrees for the benefit
of the Borrower and the other Pledgors that if the Collateral Trustee at any
time receives:

 

38

 

(1)           an Officers’ Certificate stating that (A) the
signing officer has read Article 4 of this Agreement and understands the
provisions and the definitions relating hereto, (B) such officer has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not the conditions precedent in this
Agreement and all other Secured Debt Documents, if any, relating to the release
of the Collateral have been complied with and (C) in the opinion of such
officer, such conditions precedent, if any, have been complied with;

 

(2)           the proposed instrument or instruments
releasing such Lien as to such property in recordable form, if applicable; and

 

(3)           prior to the Discharge of Priority Lien
Obligations, the written confirmation of each Priority Lien Representative (or,
at any time after the Discharge of Priority Lien Obligations, each Parity Lien
Representative) (such confirmation to be given following
receipt of, and based solely on, the Officers’ Certificate described in clause
(1) above, upon which Officers’ Certificate each Parity Lien Representative may
conclusively rely) that, in its view, such release is permitted by Section
4.1(a) and the respective Secured Debt Documents governing the Secured
Obligations the holders of which such Secured Debt Representative represents;

 

then the Collateral Trustee will execute
(with such acknowledgements and/or notarizations as are required) and deliver
such release to the Borrower or other applicable Pledgor on or before the later
of (x) the date specified in such request for such release and (y) the fifth
Business Day after the date of receipt of the items required by this Section
4.1(b) by the Collateral Trustee.

 

(c)           The Collateral Trustee hereby agrees that:

 

(1)           in the case of any release pursuant to clause
(2) of Section  4.1(a), if the terms of any such sale, transfer or other disposition require the
payment of the purchase price to be contemporaneous with the delivery of the
applicable release, then, at the written request of and at the expense of
the Borrower or other applicable Pledgor, the Collateral Trustee will either
(A) be present at and deliver the release at the closing of such transaction or
(B) deliver the release under customary escrow arrangements that permit such contemporaneous
payment and delivery of the release; and

 

(2)           at any time when a Secured Debt Default under
a Series of Secured Debt that constitutes Parity Lien Debt has occurred and is
continuing, within one Business Day of the receipt by it of any Act of Required
Debtholders pursuant to Section 4.l(a)(3), the Collateral Trustee will deliver
a copy of such Act of Required Debtholders to each Secured Debt Representative.

 

(d)           Each Secured Debt Representative hereby
agrees that:

 

(1)           as soon as reasonably practicable after
receipt of an Officers’ Certificate from the Borrower (upon which each Secured
Debt Representative may conclusively rely) pursuant to Section 4.l(b)(l), it
will, to the extent required by such Section, cither provide (A) the written
confirmation required by Section 4.1(b)(3), (B) a written statement that such
release is not permitted by Section 4.l(a) or (C) a request for

 

39

 

further
information from the Borrower reasonably necessary to determine whether the
proposed release is permitted by Section 4.1(a) and after receipt of such
information such Secured Debt Representative will as soon as reasonably
practicable either provide the written confirmation or statement required
pursuant to clause (A) or (B), as applicable; and

 

(2)           within one Business Day of the receipt by it
of any notice from the Collateral Trustee pursuant to Section 4. l(c)(2), such
Secured Debt Representative will deliver a copy of such notice to each
registered holder of the Series of Priority Lien Debt or Series of Parity Lien
Debt for which it acts as Secured Debt Representative.

 

SECTION 4.2        Delivery of Copies to
Secured Debt Representatives. The Borrower will deliver to each Secured Debt Representative a copy
of each Officers’ Certificate delivered to the Collateral Trustee pursuant to
Section 4.l(b), together with copies of all documents delivered to the
Collateral Trustee with such Officers’ Certificate. The Secured Debt
Representatives will not be obligated to take notice thereof or to act thereon,
subject to Section 4.l(d).

 

SECTION 4.3        Collateral Trustee not
Required to Serve, File or Record. The Collateral Trustee is not required to
serve, file, register or record any instrument releasing or subordinating its
Liens on any Collateral; provided,
however, that if the Borrower or
any other Pledgor shall make a written demand for a termination statement under
Section 9-513(c) of the UCC, the Collateral Trustee shall comply with the
written request of such Borrower or Pledgor to comply with the requirements of
such UCC provision.

 

SECTION 4.4        Release of Liens in Respect
of Secured Debt. The
Collateral Trustee’s Liens upon the Collateral will no longer secure a
particular Series of Secured Debt outstanding under the documents governing
such Series of Secured Debt or any other Obligations under the applicable
Secured Debt Documents, and the right of the holders of such Series of Secured
Debt and such Obligations to the benefits and proceeds of the Collateral Trustee’s
Lien on the Collateral will terminate and be discharged:

 

(1)           upon satisfaction and discharge of all
obligations under such Series of Secured Debt if the applicable Secured Debt
Documents contain satisfaction and discharge provisions;

 

(2)           upon a legal defeasance or covenant
defeasance of such Series of Secured Debt if the applicable Secured Debt
Documents contain legal defeasance or covenant defeasance provisions;

 

(3)           upon payment in full and discharge of all
amounts of a particular Series of Secured Debt outstanding under such governing
documents and all Obligations that are outstanding, due and payable under the
applicable Secured Debt Documents at the time the Series of Secured Debt is
paid in full and discharged; or

 

(4)           in whole or in part, with the consent of the
holders of the requisite percentage of the holders of such Series of Secured
Debt in accordance with the amendment provisions of the applicable Secured Debt
Documents.

 

40

 

ARTICLE 5. IMMUNITIES OF THE COLLATERAL TRUSTEE

 

SECTION 5.1        No Implied Duty. The Collateral Trustee will not have any
fiduciary duties nor will it have responsibilities or obligations other than
those expressly assumed by it in this
Agreement and the other Security Documents. The Collateral Trustee will not be
required to take any action that is contrary to applicable law or any provision
of this Agreement or the other Security Documents.

 

SECTION 5.2        Appointment of Agents and
Advisors. The Collateral
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys, accountants,
appraisers or other experts or advisors selected by it in good faith as it may
reasonably require and will not be responsible for any misconduct or negligence
on the part of any of them. The Collateral Trustee may consult with counsel of
its selection and the advice of such counsel or any opinion of counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

SECTION 5.3        Other Agreements.

 

(a)           The Collateral Trustee has accepted and is bound
by the Security Documents executed by the Collateral Trustee as of the date of
this Agreement and, as directed by an Act of Required Debtholders, the
Collateral Trustee shall execute additional Security Documents delivered to it
after the date of this Agreement; provided,
however, that such additional Security Documents do not adversely
affect the rights, privileges, benefits and immunities of the Collateral
Trustee. The Collateral Trustee will not otherwise be bound by, or be held
obligated by, the provisions of any credit agreement, indenture or other
agreement governing Secured Debt (other than this Agreement and the other
Security Documents).

 

(b)           Notwithstanding the foregoing, as of the date
of this Agreement, the Collateral Trustee shall enter into the Cash Management
Intercreditor Agreement, dated the date hereof, among Escanaba Timber LLC (formerly
known as Maple Acquisition LLC), a Delaware limited liability company, NewPage
Holdings Corporation, a Delaware corporation, the Borrower, the ABL Collateral
Agent, the Collateral Trustee and General Electric Capital Corporation, as Collateral
Agent under the First Lien Term Loan Agreement.

 

SECTION 5.4        Solicitation of Instructions.

 

(a)           The Collateral Trustee may at any time
solicit written confirmatory instructions, in the form of an Act of Required
Debtholders, an Officers’ Certificate or an order of a court of competent
jurisdiction, as to any action that it may be requested or required to take, or
that it may propose to take, in the performance of any of its obligations under
this Agreement or the other Security Documents.

 

(b)           No written direction given to the Collateral
Trustee by an Act of Required Debtholders that in the sole judgment of the
Collateral Trustee imposes, purports to impose or might reasonably be expected
to impose upon the Collateral Trustee any obligation or liability not set forth
in or arising under this Agreement and the other Security Documents will be
binding

 

41

 

upon the Collateral Trustee
unless the Collateral Trustee elects, at its sole option, to accept such
direction.

 

SECTION 5.5        Limitation of Liability. The Collateral Trustee will not be
responsible or liable for any action taken or omitted to be taken by it
hereunder or under any other Security Document, except for its own negligence,
bad faith or willful misconduct as determined by a court of competent
jurisdiction. In no event shall the Collateral Trustee be responsible or liable
for special, indirect, or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the
Collateral Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action.

 

SECTION 5.6        Documents in Satisfactory
Form. The Collateral
Trustee will be entitled to require that all agreements, certificates,
opinions, instruments and other documents at any time submitted to it,
including those expressly provided for in this Agreement, be delivered to it in
a form and with substantive provisions reasonably satisfactory to it.

 

SECTION 5.7        Entitled to Rely. The Collateral Trustee may seek and
conclusively rely upon, and shall be fully protected in conclusively relying
upon, any judicial order or judgment, upon any advice, opinion or statement of
legal counsel, independent consultants and other experts selected by it in good
faith and upon any certification, instruction, notice or other writing
delivered to it by the Borrower or any other Pledgor in compliance with the
provisions of this Agreement or delivered to it by any Secured Debt
Representative as to the holders of Secured Obligations for whom it acts,
without being required to determine the authenticity thereof or the correctness
of any fact stated therein or the propriety or validity of service thereof. The
Collateral Trustee may act in reliance upon any instrument comporting with the
provisions of this Agreement or any signature reasonably believed by it to be
genuine and may assume that any Person purporting to give notice or receipt or
advice or make any statement or execute any document in connection with the
provisions hereof or the other Security Documents has been duly authorized to
do so. To the extent an Officers’ Certificate or opinion of counsel is required
or permitted under this Agreement to be delivered to the Collateral Trustee in
respect of any matter, the Collateral Trustee may rely conclusively on Officers’
Certificate or opinion of counsel as to such matter and such Officers’
Certificate or opinion of counsel shall be full warranty and protection to the
Collateral Trustee for any action taken, suffered or omitted by it under the
provisions of this Agreement and the other Security Documents.

 

SECTION 5.8        Secured Debt Default. The Collateral Trustee will not be required
to inquire as to the occurrence or absence of any Secured Debt Default and will
not be affected by or required to act upon any notice or knowledge as to the
occurrence of any Secured Debt Default unless and until it is directed by an
Act of Required Debtholders.

 

SECTION 5.9        Actions by Collateral Trustee. As to any matter not expressly provided for
by this Agreement or the other Security Documents, the Collateral Trustee will
act or refrain from acting as directed by an Act of Required Debtholders and
will be fully protected if it does so, and any action taken, suffered or omitted
pursuant to hereto or thereto shall be binding on the holders of Secured
Obligations.

 

42

 

SECTION 5.10                    Security or Indemnity in favor of the Collateral
Trustee.  The Collateral
Trustee will not be required to advance or expend any funds or otherwise incur
any financial liability in the performance of its duties or the exercise of its
powers or rights hereunder unless it has been provided with security or
indemnity reasonably satisfactory to it against any and all liability or
expense which may be incurred by it by reason of taking or continuing to take
such action. The Collateral Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Agreement at the request or direction
of any of the holders of Secured Debt pursuant to this Agreement, unless such
holders of Secured Debt shall have offered to the Collateral Trustee security
or indemnity satisfactory to the Collateral Trustee against the costs, expenses
and liabilities which might be incurred by it in compliance with such request
of direction.

 

SECTION 5.11                    Rights of the Collateral Trustee.  In the event of any conflict between any terms
and provisions set forth in this Agreement and those set forth in any other Security
Document, the terms and provisions of this Agreement shall supersede and
control the terms and provisions of such other Security Document.  In the event there is any bona fide, good
faith disagreement between the other parties to this Agreement or any of the
other Security Documents resulting in adverse claims being made in connection
with Collateral held by the Collateral Trustee and the terms of this Agreement
or any of the other Security Documents do not unambiguously mandate the action
the Collateral Trustee is to take or not to take in connection therewith under
the circumstances then existing, or the Collateral Trustee is in doubt as to
what action it is required to take or not to take hereunder or under the other
Security Documents, it will be entitled to refrain from taking any action (and
will incur no liability for doing so) until directed otherwise in writing by a
request signed jointly by the parties hereto entitled to give such direction or
by order of a court of competent jurisdiction.

 

SECTION 5.12                    Limitations on Duty of Collateral Trustee in Respect
of Collateral.

 

(a)                                  Beyond
the exercise of reasonable care in the custody of Collateral in its possession,
the Collateral Trustee will have no duty as to any Collateral in its possession
or control or in the possession or control of any agent or bailee or any income
thereon or as to preservation of rights against prior parties or any other
rights pertaining thereto and the Collateral Trustee will not be responsible
for filing any financing or continuation statements or recording any documents
or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any Liens on the Collateral. The
Collateral Trustee will be deemed to have exercised reasonable care in the
custody of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which it accords its own property, and
the Collateral Trustee will not be liable or responsible for any loss or
diminution in the value of any of the Collateral by reason of the act or
omission of any carrier, forwarding agency or other agent or bailee selected by
the Collateral Trustee in good faith.

 

(b)                                 The
Collateral Trustee will not be responsible for the existence, genuineness or
value of any of the Collateral or for the validity, perfection, priority or
enforceability of the Liens in any of the Collateral, whether impaired by
operation of law or by reason of any action or omission to act on its part
hereunder, except to the extent such action or omission constitutes negligence,
bad faith or willful misconduct on the part of the Collateral Trustee, for the
validity or sufficiency of the Collateral or any agreement or assignment

 

43

 

contained therein, for
the validity of the title of any Pledgor to the Collateral, for insuring the
Collateral or for the payment of taxes, charges, assessments or Liens upon the
Collateral or otherwise as to the maintenance of the Collateral. The Collateral
Trustee hereby disclaims any representation or warranty to the present and
future holders of the Secured Obligations concerning the perfection of the
Liens granted hereunder or in the value of any of the Collateral.

 

SECTION 5.13                    Assumption of Rights, Not Assumption of Duties.
Notwithstanding anything to the contrary contained herein:

 

(1)                                   each
of the parties thereto will remain liable under each of the Security Documents
(other than this Agreement) to the extent set forth therein to perform all of
their respective duties and obligations thereunder to the same extent as if
this Agreement had not be executed;

 

(2)                                   the
exercise by the Collateral Trustee of any of its rights, remedies or powers
hereunder will not release such parties from any of their respective duties or obligations
under the other Security Documents; and

 

(3)                                   the
Collateral Trustee will not be obligated to perform any of the obligations or
duties of any of the parties thereunder other than the Collateral Trustee.

 

SECTION 5.14                    No Liability for Clean Up of Hazardous Materials. In the event that the Collateral Trustee
is required to acquire title to an asset for any reason, or take any managerial
action of any kind in regard thereto, in order to carry out any fiduciary or
trust obligation for the benefit of another, which in the Collateral Trustee’s
sole discretion may cause the Collateral Trustee to be considered an “owner or
operator” under any environmental laws or otherwise cause the Collateral
Trustee to incur, or be exposed to, any environmental liability or any
liability under any other federal, state or local law, the Collateral Trustee
reserves the right, instead of taking such action, either to resign as
Collateral Trustee or to arrange for the transfer of the title or control of
the asset to a court appointed receiver. The Collateral Trustee will not be
liable to any Person for any environmental liability or any environmental
claims or contribution actions under any federal, state or local law, rule or
regulation by reason of the Collateral Trustee’s actions and conduct as
authorized, empowered and directed hereunder or relating to any Kind of
discharge or release or threatened discharge or release of any hazardous
materials into the environment.

 

ARTICLE 6.   RESIGNATION AND REMOVAL OF
THE COLLATERAL TRUSTEE

 

SECTION 6.1                         Resignation or Removal of Collateral Trustee.
Subject to the appointment of a successor Collateral Trustee as provided in
Section 6.2 and the acceptance of such appointment by the successor Collateral
Trustee:

 

(a)                                  the
Collateral Trustee may resign at any time by giving not less than 30 days’
notice of resignation to each Secured Debt Representative and the Borrower; and

 

(b)                                 the
Collateral Trustee may be removed at any time, with or without cause, by an Act
of Required Debtholders.

 

44

 

SECTION 6.2                          Appointment of Successor Collateral Trustee. Upon any such resignation or removal, a
successor Collateral Trustee may be appointed by an Act of Required
Debtholders.  If no successor Collateral
Trustee has been so appointed and accepted such appointment within 30 days
after the predecessor Collateral Trustee gave notice of resignation or was
removed, the retiring Collateral Trustee may (at the expense of the Borrower),
at its option, petition a court of competent jurisdiction for appointment of a
successor Collateral Trustee, which must be a bank or trust company:

 

(1)                                   authorized
to exercise corporate trust powers;

 

(2)                                   having
a combined capital and surplus of at least $100,000,000;

 

(3)                                   maintaining
an office in New York, New York; and

 

(4)                                   that
is not a Secured Debt Representative.

 

The Collateral Trustee will fulfill its obligations
hereunder until a successor Collateral Trustee meeting the requirements of this
Section 6.2 has accepted its appointment as Collateral Trustee
and the provisions of Section 6.3 have been satisfied.

 

SECTION 6.3                          Succession.  When the Person so appointed as successor
Collateral Trustee accepts such appointment:

 

(1)                                   such
Person will succeed to and become vested with all the rights, powers,
privileges and duties of the predecessor Collateral Trustee, and the
predecessor Collateral Trustee will be discharged from its duties and
obligations hereunder; and

 

(2)                                   the
predecessor Collateral Trustee will (at the expense of the Borrower) upon
payment of all amounts owed it hereunder, promptly transfer all Liens and
collateral security and other property of the Trust Estates within its
possession or control to the possession or control of the successor Collateral
Trustee and will execute instruments and assignments as may be necessary or
desirable or reasonably requested by the successor Collateral Trustee to
transfer to the successor Collateral Trustee all Liens, interests, rights,
powers and remedies of the predecessor Collateral Trustee in respect of the
Security Documents or the Trust Estates.

 

Thereafter the
predecessor Collateral Trustee will remain entitled to enforce the immunities
granted to it in Article 5 and the provisions of Sections 8.10 and 8.11.

 

SECTION 6.4                          Merger, Conversion or Consolidation of Collateral
Trustee.  Any Person into
which the Collateral Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Collateral Trustee shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of the
Collateral Trustee shall be the successor of the Collateral Trustee pursuant to
Section 6.3, provided that (i) without the execution or filing of any paper
with any party hereto or any further act on the part of any of the parties
hereto, except where an instrument of transfer or assignment is required by law
to effect such succession, anything herein to the contrary notwithstanding,
such Person satisfies the eligibility requirements specified in

 

45

 

clauses (1) through (4) of Section 6.2 and (ii) prior
to any such merger, conversion or consolidation, the Collateral Trustee shall
have notified the Borrower, each Priority Lien Representative and each Parity
Lien Representative thereof in writing.

 

ARTICLE
7.  INTERCREDITOR AGREEMENT

 

SECTION 7.1                          Authorization and Effectiveness.  As of the date hereof, on behalf of the
holders of the Priority Lien Obligations, the holders of Parity Lien
Obligations and the various Secured Debt Representatives, the Collateral
Trustee shall enter into the Intercreditor Agreement; provided that such Intercreditor Agreement
shall provide that no amendment or supplement to the provisions of the
Intercreditor Agreement will be effective without the approval of the
Collateral Trustee. Upon execution by the ABL Collateral Agent and the
Collateral Trustee, the Intercreditor Agreement (as in effect on the date
hereof) shall be binding on the holders of Secured Obligations.

 

SECTION
7.2                          Amendment and Voting.

 

The Collateral Trustee shall not consent to any amendment or supplement
to the Intercreditor Agreement without the consent of a majority of the holders
of each Series of Secured Debt then outstanding, calculated in accordance with
the provisions of Section 8.2.

 

ARTICLE
8.   MISCELLANEOUS PROVISIONS

 

SECTION
8.1                          Amendment.

 

(a)                                  No
amendment or supplement to the provisions of any Security Document will be effective
without the approval of the Collateral Trustee acting as directed by an Act of
Required Debtholders, except that:

 

(1)                                  
any amendment or supplement that has the effect solely of adding or maintaining
Collateral, securing additional Secured Debt that was otherwise permitted by
the terms of the Secured Debt Documents to be secured by the Collateral or
preserving, perfecting or establishing the priority of the Liens thereon or the
rights of the Collateral Trustee therein will become effective when executed
and delivered by the Borrower or any other applicable Pledgor party thereto and
the Collateral Trustee;

 

(2)                                  no
amendment or supplement that reduces, impairs or adversely affects the right of
any holder of Secured Obligations:

 

(A)                                 to
vote its outstanding Secured Debt as to any matter described as subject to an
Act of Required Debtholders or direction by the Required Parity Lien
Debtholders (or amends the provisions of this clause (2) or the definition of “Act
of Required Debtholders” or “Required
Parity Lien Debtholders”),

 

(B)                                   to
share in the order of application described in Section 3.4 in the proceeds of
enforcement of or realization on any Collateral, or

 

46

 

(C)                                to
require that Liens securing Secured Obligations be released only as set forth
in the provisions described in Section 4.1 hereof,

 

will become effective without the consent of the
requisite percentage or number of holders of each Series of Secured Debt so
affected under the applicable Secured Debt Document; and

 

(3)                                  no
amendment or supplement that imposes any obligation upon the Collateral Trustee
or any Secured Debt Representative or adversely affects the rights of the
Collateral Trustee or any Secured Debt Representative, respectively, in its
individual capacity as such will become effective without the consent of the
Collateral Trustee or such Secured Debt Representative, respectively.

 

(b)                                 Notwithstanding
Section 8.1(a) but subject to Sections 8.l(a)(2) and 8.1(a)(3):

 

(1)                                   any
mortgage or other Security Document that secures Priority Lien Obligations may
be amended or supplemented with the approval of the Collateral Trustee acting
as directed in writing by the holders of the Priority Lien Debt, unless such
amendment or supplement would not be permitted under the terms of this
Agreement or any of the Secured Debt Documents;

 

(2)                                   any
mortgage or other Security Document that secures Obligations may be amended or
supplemented with the approval of the Collateral Trustee acting as directed in
writing by an Act of Required Debtholders, unless such amendment or supplement
would not be permitted under the terms of this Agreement or the other Priority
Lien Documents; and

 

(3)                                   any
amendment or waiver of, or any consent under, any provision of this Agreement
or any other Security Document that secures Priority Lien Obligations (except
any such amendment, waiver or consent that releases Collateral with respect to
which any consent of holders of Parity Lien Debt is required pursuant to this
Agreement, which will be governed by the provisions described above) will apply
automatically to any comparable provision of any comparable Parity Lien
Document without the consent of or notice to any holder of Parity Lien
Obligations and without any action by the Borrower or any other Pledgor or any
holder of Notes or other Parity Lien Obligations.

 

(c)                                 The
Collateral Trustee will not enter into any amendment or supplement unless it
has received an Officers’ Certificate to the effect that such amendment or
supplement will not result in a breach of any provision or covenant contained
in any of the Secured Debt Documents. Prior to executing any amendment or
supplement pursuant to this Section 8.1, the Collateral Trustee will be
entitled to receive an opinion of counsel of the Borrower to the effect that
the execution of such document is authorized or permitted hereunder, and with
respect to amendments adding Collateral, an opinion of counsel of the Borrower
addressing customary perfection, and if such additional Collateral consists of
equity interests of any Person, priority matters with respect to such
additional Collateral.

 

47

 

(d)                                 The
holders of Parity Lien Obligations and the Parity Lien Representatives agree
that each Security Document that secures Parity Lien Obligations (but not also
securing Priority Lien Obligations) may include language substantially to the
effect of the following:

 

“Notwithstanding anything herein to the contrary, the Lien and security
interest granted to the Collateral Trustee pursuant to this Agreement and the
exercise of any right or remedy by such Collateral Trustee hereunder are
subject to the provisions of the Collateral Trust Agreement, dated as of May 2, 2005, among NewPage Corporation, the Pledgors
from time to time party thereto, Goldman Sachs Credit Partners L.P., as
Administrative Agent under the First Lien Term Loan Agreement (as defined
therein), HSBC Bank USA, National Association, as Trustee under the Indentures
(as defined therein) and The Bank of New York, as Collateral Trustee (as
amended, supplemented, amended and restated or otherwise modified and in effect
from time to time, the “Collateral Trust Agreement”). In the event of any conflict
between the terms of the Collateral Trust Agreement and this Agreement, the
terms of the Collateral Trust Agreement will govern”;

 

provided,
however, that if the jurisdiction in which any such Parity
Lien Document will be filed prohibits the inclusion of the language above or
would prevent a document containing such language from being recorded, the
Parity Lien Representatives and the Priority Lien Representatives agree, prior
to such Parity Lien Document being entered into, to negotiate in good faith
replacement language stating that the Lien and security interest granted under
such Parity Lien Document is subject to the provisions of this Agreement.

 

SECTION 8.2                          Voting.  In connection with any matter under this
Agreement requiring a vote of holders of Secured Debt, each Series of Secured
Debt will cast its votes in accordance with the Secured Debt Documents
governing such Series of Secured Debt.  The
amount of Secured Debt to be voted by a Series of Secured Debt will equal (1)
the aggregate principal amount of Secured Debt held by such Series of Secured
Debt (including outstanding letters of credit whether or not then available or
drawn), plus (2) other than
in connection with an exercise of remedies, the aggregate unfunded commitments
to extend credit which, when funded, would constitute Indebtedness of such Series
of Secured Debt. Following and in accordance with the outcome of the applicable
vote under its Secured Debt Documents, the Secured Debt Representative of each
Series of Secured Debt will cast all of its votes as a block in respect of any
vote under this Agreement.

 

SECTION 8.3                          Further Assurances; Insurance.

 

(a)                                  The
Borrower and each of the other Pledgors will do or cause to be done all acts
and things that may be required, or that the Collateral Trustee from time to
time may reasonably request, to assure and confirm that the Collateral Trustee
holds, for the benefit of the holders of Secured Obligations, duly created and
enforceable and perfected Liens upon the Collateral (including any properly or
assets that are acquired or otherwise become Collateral after the date hereof),
in each case as contemplated by, and with the Lien priority required under, the
Secured Debt Documents.

 

48

 

(b)                                 Upon
the reasonable request of the Collateral Trustee or any Secured Debt
Representative at any time and from time to time, the Borrower and each of the
other Pledgors will promptly execute, acknowledge and deliver such security
documents, instruments, certificates, notices and other documents, and take
such other actions as may be reasonably required, or that the Collateral
Trustee may reasonably request, to create, perfect, protect, assure or enforce
the Liens and benefits intended to be conferred, in each case as contemplated
by the Secured Debt Documents for the benefit of holders of Secured
Obligations.

 

(c)                                  The
Borrower and the other Pledgors will:

 

(1)                                   keep
their properties adequately insured at all times by financially sound and
reputable insurers;

 

(2)                                   maintain
such other insurance, to such extent and against such risks (and with such
deductibles, retentions and exclusions), including fire and other risks insured
against by extended coverage and coverage for acts of terrorism, as is
customary with companies in the same or similar businesses operating in the
same or similar locations, including public liability insurance against claims for
personal injury of death or property damage occurring upon, in, about or in
connection with the use of any properties owned, occupied or controlled by
them;

 

(3)                                   maintain
such other insurance as may be required by law;

 

(4)                                   maintain
title insurance, in the form delivered to the Collateral Trustee on the date
hereof on all existing real property Collateral and with respect to real
property acquired after the date hereof, maintain title insurance in form and
substance comparable to the title insurance policies on the date hereof, on all
such after acquired real property Collateral insuring the Collateral Trustee’s
Lien on that property, subject only to Permitted Liens and other exceptions to
title approved by the Priority Lien Representative as long as there is Priority
Lien Debt outstanding and thereafter, the Collateral Trustee; provided that title insurance need only
be maintained on any particular parcel of real property having a Fair Market
Value of less than $10.0 million if and to the extent title insurance is
maintained in respect of Priority Liens on that property; and

 

(5)                                   maintain
such other insurance as may be required by the Security Documents.

 

(d)                                 Upon
the request of the Collateral Trustee, the Borrower and the other Pledgors will
furnish to the Collateral Trustee full information as to their property and
liability insurance carriers. Holders of Secured Obligations, as a class, will
be named as additional insureds, with a waiver of subrogation, on all insurance
policies of the Borrower and the other Pledgors and the Collateral Trustee will
be named as a loss payee, with 30 days’ notice of cancellation or material
change, on all property and casualty insurance policies of the Borrower and the
other Pledgors.

 

(e)                                  All
insurance policies required by Sections 8.3(c) (except for the insurance
described in 8.3(c)(3)) above will:

 

49

 

(1)                                 provide
that, with respect to third party liability insurance, the holders of Secured
Obligations, as a class, shall be named as additional insureds, with a waiver
of subrogation;

 

(2)                                 name
the Collateral Trustee as a loss payee and additional insured;

 

(3)                                 provide
that (x) no cancellation or termination of such insurance and (y) no reduction
in the limits of liability of such insurance or other material change shall be
effective until 30 days after written notice is given by the insurers to the
Collateral Trustee of such cancellation, termination, reduction or change;

 

(4)                                 waive
all claims for insurance premiums or commissions or additional premiums or
assessments against the Secured Parties; and

 

(5)                                 waive
any right of the insurers to setoff or counterclaim or to make any other
deductions, whether by way of attachment or otherwise, as against the Secured
Parties.

 

SECTION 8.4                          Perfection of Junior Trust Estate.

 

Solely for purposes of perfecting the Liens of the Collateral Trustee
in its capacity as agent of the holders of Parity Lien Obligations and the
Parity Lien Representatives in any portion of the Junior Trust Estate in the
possession or control of the Collateral Trustee (or its agents or bailees) as
part of the Senior Trust Estate including, without limitation, any instruments,
goods, negotiable documents, tangible chattel paper, electronic chattel paper,
certificated securities, money, deposit accounts and securities accounts, the
Collateral Trustee, the holders of Priority Lien Obligations and the Priority
Lien Representatives hereby acknowledge that the Collateral Trustee also holds
such property as agent for the benefit of the holders of Parity Lien Obligations
and the Parity Lien Representatives.

 

SECTION 8.5                          Successors and Assigns.

 

(a)                                  Except
as provided in Section 5.2, the Collateral Trustee may not, in its capacity as
such, delegate any of its duties or assign any of its rights hereunder, and any
attempted delegation or assignment of any such duties or rights will be null
and void. All obligations of the Collateral Trustee hereunder will inure to the
sole and exclusive benefit of, and be enforceable by, each Secured Debt
Representative and each present and future holder of Secured Obligations, each
of whom will be entitled to enforce this Agreement as a third-party beneficiary
hereof, and all of their respective successors and assigns.

 

(b)                                 Neither
the Borrower nor any other Pledgor may delegate any of its duties or assign any
of its rights hereunder, and any attempted delegation or assignment of any such
duties or rights will be null and void. All obligations of the Borrower and the
other Pledgors hereunder will inure to the sole and exclusive benefit of, and
be enforceable by, the Collateral Trustee, each Secured Debt Representative and
each present and future holder of Secured Obligations, each of whom will be
entitled to enforce this Agreement as a third-party beneficiary hereof, and all
of their respective successors and assigns.

 

50

 

SECT ION 8.6                       Delay and Waiver.  No failure to exercise, no course of dealing
with respect to the exercise of, and no delay in exercising, any right, power
or remedy arising under this Agreement or any of the other Security Documents
will impair any such right, power or remedy or operate as a waiver thereof. No
single or partial exercise of any such right, power or remedy will preclude any
other or future exercise thereof or the exercise of any other right, power or
remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law.

 

SECTION 8.7                          Notices.  Any communications, including notices and
instructions, between the parties hereto or notices provided herein to be given
may be given to the following addresses:

 

	
  If to the Collateral Trustee:

  	
   

  	
  The Bank of New York

  
	
   

  	
   

  	
  101 Barclay Street, Floor 8 West

  
	
   

  	
   

  	
  New York, NY 10286

  
	
   

  	
   

  	
  Telephone: (212) 815-5445

  
	
   

  	
   

  	
  Fax: (212) 815-5707

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Borrower or any other Pledgor:

  	
   

  	
  NewPage Corporation

  
	
   

  	
   

  	
  Courthouse Plaza NE

  
	
   

  	
   

  	
  Dayton, Ohio 45463

  
	
   

  	
   

  	
  Telephone: (877) 855-7243

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the First Lien Administrative Agent:

  	
   

  	
  Goldman Sachs Credit Partners L.P,

  
	
   

  	
   

  	
  85 Broad Street

  
	
   

  	
   

  	
  New York, NY 10004

  
	
   

  	
   

  	
  Fax: (212) 357-0932

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Trustee:

  	
   

  	
  HSBC Bank USA, National Association

  
	
   

  	
   

  	
  452 Fifth Avenue

  
	
   

  	
   

  	
  New York, NY 10018

  
	
   

  	
   

  	
  Telephone: (212) 525-1316

  
	
   

  	
   

  	
  Fax: (212) 525-1300

  

 

and if to any other
Secured Debt Representative, to such address as it may specify by written
notice to the parties named above.

 

All notices and communications will be faxed to the relevant fax number
set forth above or mailed by first class mail, certified or registered, return
receipt requested, or by overnight air courier guaranteeing next day delivery,
to the relevant address set forth above or, as to holders of Secured Debt, its
address shown on the register kept by the office or agency where the relevant
Secured Debt may be presented for registration of transfer or for exchange. To
the extent applicable, any notice or communication will also be so mailed to
any Person described in § 313(c) of the Trust Indenture Act of 1939, as
amended, to the extent required thereunder.

 

51

 

Failure to mail a notice or communication to a holder
of Secured Debt or any defect in it will not affect its sufficiency with
respect to other holders of Secured Debt.

 

If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

 

SECTION 8.8                          Notice Following Discharge of Priority Lien
Obligations.  Promptly following
the Discharge of Priority Lien Obligations with respect to one or more Series
of Priority Lien Debt, each Priority Lien Representative with respect to each
applicable Series of Priority Lien Debt that is so discharged will provide written
notice of such discharge to the Collateral Trustee and to each other Secured
Debt Representative.

 

SECTION 8.9                          Entire Agreement.  This Agreement states the complete agreement
of the parties relating to the undertaking of the Collateral Trustee set forth
herein and supersedes all oral negotiations and prior writings in respect of
such undertaking.

 

SECTION 8.10                    Compensation; Expenses.  The Pledgors jointly and severally agree to
pay, promptly upon demand:

 

(1)                                      such
compensation to the Collateral Trustee and its agents as the Borrower and the
Collateral Trustee may agree in writing from time to time;

 

(2)                                      all
reasonable costs and expenses incurred by the Collateral Trustee and its agents
in the preparation, execution, delivery, filing, recordation, administration or
enforcement of this Agreement or any other Security Document or any consent,
amendment, waiver or other modification relating hereto or thereto;

 

(3)                                      all
reasonable fees, expenses and disbursements of legal counsel and any auditors,
accountants, consultants or appraisers or other professional advisors and
agents engaged by the Collateral Trustee incurred in connection with the
negotiation, preparation, closing, administration, performance or enforcement
of this Agreement and the other Security Documents or any consent, amendment,
waiver or other modification relating hereto or thereto and any other document
or matter requested by the Borrower or any other Pledgor;

 

(4)                                      all
reasonable costs and expenses incurred by the Collateral Trustee and its agents
in creating, perfecting, preserving, releasing or enforcing the Collateral
Trustee’s Liens on the Collateral, including filing and recording fees,
expenses and taxes, stamp or documentary taxes, search fees, and title
insurance premiums;

 

(5)                                      all
other reasonable costs and expenses incurred by the Collateral Trustee and its
agents in connection with the negotiation, preparation and execution of the
Security Documents and any consents, amendments, waivers or other modifications
thereto and the transactions contemplated thereby or the exercise of rights or
performance of obligations by the Collateral Trustee thereunder; and

 

(6)                                      after
the occurrence of any Secured Debt Default, all costs and expenses incurred by
the Collateral Trustee and its agents in connection with the preservation,

 

52

 

collection, foreclosure
or enforcement of the Collateral subject to the Security Documents or any
interest, right, power or remedy of the Collateral Trustee or in connection
with the collection or enforcement of any of the Secured Obligations or the
proof, protection, administration or resolution of any claim based upon the
Secured Obligations in any Insolvency or Liquidation Proceeding, including all
fees and disbursements of attorneys, accountants, auditors, consultants,
appraisers and other professionals engaged by the Collateral Trustee or its
agents.

 

The agreements in this Section 8.10 will survive
repayment of all other Secured Obligations and the removal or resignation of
the Collateral Trustee.

 

SECTION 8.11                   Indemnity.

 

(a)                                   The
Pledgors jointly and severally agree to defend, indemnify, pay and hold
harmless the Collateral Trustee and its Affiliates, directors, officers,
partners, trustees, employees, attorneys and agents, and (in each case) their
respective heirs, representatives, successors and assigns (each of the
foregoing, an “Indemnitee”) from and against any and all Indemnified
Liabilities; provided, no
Indemnitee will be entitled to indemnification hereunder with respect to any
Indemnified Liability to the extent such Indemnified Liability is found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

 

(b)                                  All
amounts due under this Section 8.11 will be payable upon demand.

 

(c)                                  To
the extent that the undertakings to defend, indemnify, pay and hold harmless
set forth in Section 8.11(a) may be unenforceable in whole or in part because
they violate any law or public policy, each of the Pledgors will contribute the
maximum portion that it is permitted to pay and satisfy under applicable law to
the payment and satisfaction of all Indemnified Liabilities incurred by
Indemnitees or any of them.

 

(d)                                 No
Pledgor will ever assert any claim against any Indemnitee, on any theory of
liability, for any lost profits or special, indirect or consequential damages
or (to the fullest extent a claim for punitive damages may lawfully be waived)
any punitive damages arising out of, in connection with, or as a result of,
this Agreement or any other Secured Debt Document or any agreement or
instrument or transaction contemplated hereby or relating in any respect to any
Indemnified Liability, and each of the Pledgors hereby forever waives, releases
and agrees not to sue upon any claim for any such lost profits or special,
indirect, consequential or (to the fullest extent lawful) punitive damages,
whether or not accrued and whether or not known or suspected to exist in its
favor.

 

(e)                                  The
agreements in this Section 8.11 will survive repayment of all other Secured
Obligations and the removal or resignation of the Collateral Trustee.

 

SECTION 8.12                    Severability.  If any provision of this Agreement is
invalid, illegal or unenforceable in any respect or in any jurisdiction, the
validity, legality and enforceability of such provision in all other respects
and of all remaining provisions, and of such provision in all other
jurisdictions, will not in any way be affected or impaired thereby.

 

53

 

SECTION 8.13                    Headings.  Section headings herein have been inserted
for convenience of reference only, arc not to be considered a part of this
Agreement and will in no way modify or restrict any of the terms or provisions
hereof.

 

SECTION 8.14                    Obligations Secured.  All obligations of the Pledgors set forth in
or arising under this Agreement will be Secured Obligations and are secured by
all Liens granted by the Security Documents.

 

SECTION 8.15                    Governing Law.  THE INTERNAL LAW OF THE STATE OF NEW YORK
WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 8.16                    Consent to Jurisdiction.  All judicial proceedings brought against any
party hereto arising out of or relating to this Agreement or any of the other
Security Documents may be brought in any state or federal court of competent
jurisdiction in the State, County and City of New York. By executing and
delivering this Agreement, each Pledgor, for itself and in connection with its
properties, irrevocably:

 

(1)                                    accepts
generally and unconditionally the nonexclusive jurisdiction and venue of such
courts;

 

(2)                                    waives
any defense of forum non conveniens;

 

(3)                                    agrees
that service of all process in any such proceeding in any such court may be
made by registered or certified mail, return receipt requested, to such party
at its address provided in accordance with Section 8.7;

 

(4)                                    agrees
that service as provided in clause (3) above is sufficient to confer personal
jurisdiction over such party in any such proceeding in any such court and
otherwise constitutes effective and binding service in every respect; and

 

(5)                                    agrees
each party hereto retains the right to serve process in any other manner
permitted by law or to bring proceedings against any party in the courts of any
other jurisdiction.

 

SECTION 8.17                    Waiver of Jury Trial.  Each party to this Agreement waives its rights
to a jury trial of any claim or cause of action based upon or arising under
this Agreement or any of the other Security Documents or any dealings between
them relating to the subject matter of this Agreement or the intents and
purposes of the other Security Documents. The scope of this waiver is intended
to be all-encompassing of any and all disputes that may be filed in any court
and that relate to the subject matter of this Agreement and the other Security
Documents, including contract claims, tort claims, breach of duty claims and
all other common law and statutory claims. Each party to this Agreement
acknowledges that this waiver is a material inducement to enter into a business
relationship, that each party hereto has already relied on this waiver in
entering into this Agreement, and that each party hereto will continue to rely
on this waiver in its related future dealings. Each party hereto further
warrants and represents that it has

 

54

 

reviewed this waiver with
its legal counsel and that it knowingly and voluntarily waives its jury trial
rights following consultation with legal counsel. This waiver is irrevocable,
meaning that it may not be modified either orally or in writing (other than by
a mutual written waiver specifically referring to this Section 8.17 and
executed by each of the parties hereto), and this waiver will apply to any
subsequent amendments, renewals, supplements or modifications of or to this
Agreement or any of the other Security Documents or to any other documents or
agreements relating thereto. In the event of litigation, this Agreement may be
filed as a written consent to a trial by the court.

 

SECTION 8.18                    Counterparts.  This Agreement may be executed in any number
of counterparts (including by facsimile), each of which when so executed and
delivered will be deemed an original, but all such counterparts together will
constitute but one and the same instrument.

 

SECTION 8.19                    Effectiveness.  This Agreement will become effective upon the
execution of a counterpart hereof by each of the parties hereto and receipt by
each party of written notification of such execution and written or telephonic
authorization of delivery I thereof.

 

SECTION 8.20                    Additional Pledgors.  The Borrower will cause each Person that
becomes a Pledgor or is required by any Secured Debt Document to become a party
to this Agreement to become a party to this Agreement, for all purposes of this
Agreement, by causing such Person to execute and deliver to the parties hereto
a Collateral Trust Joinder, whereupon such Person will be bound by the terms
hereof to the same extent as if it had executed and delivered this Agreement as
of the date hereof. The Borrower shall promptly provide each Secured Debt
Representative with a copy of each Collateral Trust Joinder executed and
delivered pursuant to this Section 8.20.

 

SECTION 8.21                    Continuing Nature of this Agreement. This Agreement, including the
subordination provisions hereof, will be reinstated if at any time any payment
or distribution in respect of any of the Priority Lien Obligations is rescinded
or must otherwise be returned in an Insolvency or Liquidation Proceeding or
otherwise by any holder of Priority Lien Obligations or Priority Lien
Representative or any representative of any such party (whether by demand,
settlement, litigation or otherwise). In the event that all or any part of a
payment or distribution made with respect to the Priority Lien Obligations is
recovered from any holder of Priority Lien Obligations or any Priority Lien
Representative in an Insolvency or Liquidation Proceeding or otherwise, such
payment or distribution received by any holder of Parity Lien Obligations or
Parity Lien Representative with respect to the Parity Lien Obligations from the
proceeds of any Collateral or any title insurance policy required by any real
properly mortgage at any time after the date of the payment or distribution
that is so recovered, whether pursuant to a right of subrogation or otherwise,
that Parity Lien Representative or that holder of a Parity Lien Obligation, as
the case may be, will forthwith deliver the same to the Collateral Trustee, for
the account of the holders of the Priority Lien Obligations and other
Obligations secured by a Permitted Lien, to be applied in accordance with
Section 3.4.  Until so delivered, such
proceeds will be held by that Parity Lien Representative or that holder of a
Parity Lien Obligation, as the case may be, for the benefit of the holders of
the Priority Lien Obligations and other Obligations secured by a Permitted
Lien.

 

55

 

SECTION 8.22                    Insolvency.  This Agreement will be applicable both before
and after the commencement of any Insolvency or Liquidation Proceeding by or
against any Pledgor.  The relative
rights, as provided for in this Agreement, will continue after the commencement
of any such Insolvency or Liquidation Proceeding on the same basis as prior to
the date of the commencement of any such case, as provided in this Agreement.

 

SECTION 8.23                    Rights and Immunities of Secured Debt Representatives.  The First Lien Term Loan
Administrative Agent will be entitled to all of the rights, protections, immunities
and indemnities set forth in the First Lien Term Loan Agreement, the Trustee
will be entitled to all of the rights, protections, immunities and indemnities
set forth in the Indentures and any future Secured Debt Representative will be
entitled to all of the rights, protection’s, immunities and indemnities set
forth in the credit agreement, indenture or other agreement governing the
applicable Secured Debt with respect to which such Person will act as
representative, in each case as if specifically set forth herein. In no event
will any Secured Debt Representative be liable for any act or omission on the
part of the Pledgors or the Collateral Trustee hereunder.

 

SECTION 8.24                   Force Majeure.  In no event shall the Collateral Trustee be
responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Collateral Trustee shall use reasonable
efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable lender the circumstances.

 

56

 

IN WITNESS WHEREOF, the parties hereto have caused this Collateral
Trust Agreement to be executed by their respective officers or representatives
as of the day and year first above written.

 

 

	
   

  	
   

  	
  NEWPAGE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Linda Sheffield

  	
   

  
	
   

  	
   

  	
  Name: Linda Sheffield

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEWPAGE HOLDING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Linda Sheffield

  	
   

  
	
   

  	
   

  	
  Name: Linda Sheffield

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHILLICOTHE PAPER INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WICKLIFFE PAPER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Linda Sheffield

  	
   

  
	
   

  	
   

  	
  Name: Linda Sheffield

  
	
   

  	
   

  	
  Title:   Treasurer

  

 

[COLLATERAL TRUST AGEEMENT]

 

 

	
   

  	
   

  	
  ESCANABA PAPER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEADWESTVACO MARYLAND INC.

  
	
   

  	
   

  	
  (to be named LUKE PAPER COMPANY)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEADWESTVACO OXFORD CORPORATION

  
	
   

  	
   

  	
  (to be named RUMFORD PAPER COMPANY)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEADWESTVACO ENERGY SERVICES LLC

  
	
   

  	
   

  	
  (to be named NEWPAGE ENERGY SERVICES

  LLC)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UPLAND RESOURCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Peter Vogel

  	
   

  
	
   

  	
   

  	
  Name: Peter Vogel

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RUMFORD COGENERATION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RUMFORD FALLS POWER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Peter Vogel

  	
   

  
	
   

  	
   

  	
  Name: Peter Vogel

  
	
   

  	
   

  	
  Title:   President

  

 

 

	
   

  	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  as First Lien Term Loan Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WW Archer

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

 

	
   

  	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION,

  as Trustee under the Indentures

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ FRANK J. GODINO

  	
   

  
	
   

  	
   

  	
  Name: FRANK J. GODINO

  
	
   

  	
   

  	
  Title:   Vice President

  

 

 

	
   

  	
   

  	
  THE BANK OF NEW YORK,

  as Collateral Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ PATRICIA GALLAGHER

  	
   

  
	
   

  	
   

  	
  Name: PATRICIA GALLAGHER

  
	
   

  	
   

  	
  Title:   Vice
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]