Document:

Eleventh Amendment and Consent to the Credit Agreement

 Exhibit 10.2 
 ELEVENTH AMENDMENT AND CONSENT 
 This Eleventh Amendment and Consent (the “Agreement”) to
the Credit Agreement referred to below is dated as of February 27, 2009 and effective in accordance with Section 5 below, by and among BOWATER CANADIAN FOREST PRODUCTS INC., a company organized under the laws of Nova Scotia, in its
capacity as Borrower under the Credit Agreement referred to below (the “Borrower”), BOWATER INCORPORATED, a corporation organized under the laws of Delaware (“BI”), BOWATER ALABAMA LLC (formerly known as Bowater
Alabama Inc.), a limited liability company organized under the laws of Alabama (“BA”), BOWATER NEWSPRINT SOUTH LLC, a limited liability company organized under the laws of Delaware (“BNS”), BOWATER NEWSPRINT SOUTH
OPERATIONS LLC (formerly known as Bowater Newsprint South Inc.), a limited liability company organized under the laws of Delaware and the successor by merger to Bowater Mississippi LLC (“BNSO” and collectively with BA, BNS and BNSO,
the “New Borrowers”), each in its capacity as a Guarantor under the Credit Agreement referred to below (BI and the New Borrowers are collectively referred to herein as the “U.S. Borrower”), certain Subsidiaries and
Affiliates of the Borrower party hereto (the “Grantors”), ABITIBIBOWATER INC., a corporation organized under the laws of Delaware (the “Parent”), the Lenders and the U.S. Lenders party hereto (collectively, the
“Consenting Lenders”) pursuant to an authorization (in the form attached hereto as Exhibit A, each a “Lender Authorization”) and THE BANK OF NOVA SCOTIA, as administrative agent (the “Administrative
Agent”) for the Lenders party to the Credit Agreement referred to below. 
 STATEMENT OF PURPOSE: 
 The Borrower, the U.S. Borrower, the Lenders, certain other financial institutions and the Administrative Agent are parties to the Credit Agreement dated
as of May 31, 2006 (as amended by that certain First Amendment dated as of July 20, 2007, that certain Second Amendment dated as of October 31, 2007, that certain Third Amendment and Waiver dated as of February 25, 2008, that
certain Fourth Amendment dated as of March 31, 2008, that certain Fifth Amendment dated as of April 30, 2008, that certain Sixth Amendment dated as of May 28, 2008, that certain Seventh Amendment dated as of June 6, 2008, that
certain Eighth Amendment dated as of June 30, 2008, that certain Ninth Amendment and Waiver dated as of August 7, 2008 and that certain Tenth Amendment and Waiver dated as of November 12, 2008, as amended hereby and as further
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). 
 On February 6,
2009, Fairfax Financial Holdings Limited (“Fairfax”) provided additional liquidity to the Borrower in an aggregate amount equal to $12,000,000 (the “Fairfax Liquidity”). The Borrower has requested that the
Administrative Agent, the Lenders and the U.S. Lenders consent to (a) the Fairfax Liquidity, (b) the incurrence of additional Loans resulting in no less than $18,000,000 of cash proceeds less all legal, underwriting and other fees and
expenses incurred in connection therewith (the “EDC Loans” and, together with the Fairfax Liquidity, the “Additional Credit Loans”), (c) securing the Additional Credit Loans with the Collateral (other than that
portion of the Collateral consisting of New U.S. Borrower Fixed Assets) and (d) the other amendments to the Credit Agreement more specifically set forth herein. 
 Subject to the terms and conditions set forth herein, the Administrative Agent and each of the Consenting Lenders have agreed to grant such requests of the Borrower. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows: 
 1. Capitalized Terms. Except as otherwise provided herein, all capitalized undefined terms used in this Agreement
(including, without limitation, in the introductory paragraph and the statement of purpose hereto) shall have the meanings assigned thereto in the Credit Agreement. 
  

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 2. Consent. Pursuant to Section 14.2 of the Credit Agreement and subject to the terms
and conditions hereof, including, without limitation, the conditions to effectiveness set forth in Section 5 hereof, and to the extent consent by the Lenders is required to permit the Fairfax Liquidity, each of the Administrative Agent,
the Issuing Lender, the Swingline Lender and the other Consenting Lenders party hereto consents to the Fairfax Liquidity. In furtherance of the foregoing, and subject to the terms and conditions hereof, including, without limitation, the conditions
to effectiveness set forth in Section 5 hereof, each of the Administrative Agent, the Issuing Lender, the Swingline Lender and the other Consenting Lenders party hereto agrees to waive any breach of the Credit Agreement or default in the
performance or observance of any covenant or agreement contained in Sections 8.2 or 10.1 of the Credit Agreement and Sections 8.2 or 10.1 of the U.S. Credit Agreement, in each case solely as a result of the Fairfax
Liquidity. 
 3. Retroactive Credit Agreement Amendment. Effective as of January 30, 2009 upon the satisfaction of the conditions
to effectiveness of this Agreement as set forth in Section 5 hereof, the definition of “Borrowing Base” set forth in Section 1.1 of the Credit Agreement is hereby amended by replacing the table set forth in clause (c)(ii)
thereof with the following table: 
  

			
	 Applicable Period
	  	 Maximum Available Foreign Account Amount

	Tenth Amendment Effective Date to but excluding the Reversion Date	  	Lesser of (a) $115,000,000 and (b) if the Policy Sublimit is reduced to an amount less than $75,000,000, the Policy Sublimit as of such date
		
	Reversion Date to but excluding the Conversion Date	  	Lesser of (a) $100,000,000 and (b) if the Policy Sublimit is reduced to an amount less than $75,000,000, the Policy Sublimit as of such date
		
	Conversion Date to but excluding June 30, 2009	  	Lesser of (a) $75,000,000 and (b) the Policy Sublimit as of such date
		
	June 30, 2009 and thereafter	  	Lesser of (a) $50,000,000 and (b) the Policy Sublimit as of such date

 4. Credit Agreement Amendments. The Credit Agreement and certain of the Exhibits to the
Credit Agreement are hereby amended as set forth on Exhibit B. It is hereby acknowledged by the parties hereto that the amended Credit Agreement as set forth on Exhibit B reflects the Credit Agreement as amended in accordance with
Section 3 of this Agreement. 
 5. Conditions to Effectiveness. Upon the satisfaction of each of the following conditions,
this Agreement shall be deemed to be effective as of the date hereof (other than the amendment set forth in Section 3 of this Agreement, which upon satisfaction of each of the following conditions shall be deemed effective as of
January 30, 2009): 
 (a) the Administrative Agent shall have received counterparts of this Agreement executed by
(i) either the Administrative Agent (on behalf of itself and each of the Consenting Lenders by virtue of each Consenting Lender’s execution of a Lender Authorization) or the requisite Consenting Lenders (by virtue of each Consenting
Lender’s execution of a Lender Authorization), (ii) the Parent, (iii) the Borrower, (iv) the U.S. Borrower and (v) each of the Grantors; 
  

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 (b) the Administrative Agent shall have received executed Lender Authorizations from the
requisite Consenting Lenders; 
 (c) the Administrative Agent shall have been reimbursed for all fees and out-of-pocket
charges and other expenses incurred in connection with this Agreement, including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent; 
 (d) the Administrative Agent shall have received an effective corresponding amendment to the U.S. Credit Agreement, in form and substance
substantially consistent with this Agreement (with such changes as are applicable only to the U.S. Credit Agreement), duly executed by the U.S. Administrative Agent, the U.S. Borrower, the Parent, each U.S. Guarantor and the requisite Consenting
Lenders (whether directly or through a lender authorization) (such corresponding amendment, the “U.S. Amendment”); 
 (e) concurrently with the effectiveness of this Agreement, the Borrower shall have received no less than $18,000,000 of cash proceeds (less all legal, underwriting and other fees and expenses incurred in connection therewith) from the
issuance of the EDC Loans; 
 (f) the U.S. Administrative Agent shall have received an updated rolling 13-week forecast of
cash receipts and disbursements of the U.S. Borrower and its Consolidated Subsidiaries for the 13-consecutive week period beginning on the date of delivery of such forecast, which forecast shall be in form and substance reasonably satisfactory the
Administrative Agent and the U.S. Administrative Agent and shall be calculated on a pro forma basis giving effect to (i) the Fairfax Liquidity, (ii) the amendments to the calculations of the Borrowing Base, the U.S. Borrowing
Base, the Overadvance Amount and the U.S. Overadvance Amount set forth in this Agreement or the U.S. Amendment, as applicable and (iii) the issuance of the EDC Loans; 
 (g) the Administrative Agent shall have received favorable opinions of counsel to the Credit Parties addressed to the Administrative Agent
and the Lenders with respect to this Agreement, the Security Documents (other than the New U.S. Borrower Mortgages) and such other matters as the Lenders shall request (including, without limitation, opinions of (i) Troutman Sanders LLP (which
opinion shall include a no conflict opinion with respect to the Existing Notes issued by the Borrower that are governed by the laws of any state of the United States), (ii) Stikeman Elliott LLP (which opinion shall include a no conflict opinion
with respect to the Existing Notes of the Borrower that are governed by the laws of Canada or any province or territory thereof), (iii) special Nova Scotia counsel and (iv) special New-Brunswick counsel); 
 (h) the Administrative Agent shall have received the results of a Lien search, in form and substance satisfactory thereto, made against
each of the Credit Parties (except the U.S. Borrower) in Quebec, Ontario, Nova Scotia, New-Brunswick and any other jurisdiction reasonably requested by the Administrative Agent; and 
  

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 (i) the Administrative Agent shall have received such other instruments, documents and
certificates as the Administrative Agent shall reasonably request in connection with the execution of this Agreement. 
 6. Borrowing
Limitation. Each Credit Party hereby acknowledges and confirms that (a) Exhibit C hereto sets forth the aggregate principal amount of all outstanding U.S. Extensions of Credit and Extensions of Credit (excluding the Additional Credit
Loans and treating the entire Swingline Commitment as outstanding) as of the date hereof and (b) that such amounts are not subject to any defense, counterclaim, recoupment or offset of any kind. From and after the date hereof until the
completion closing and settlement of the Exchange Offer, the Borrower shall be permitted to request Extensions of Credit and U.S. Borrower shall be permitted to request U.S. Extensions of Credit; provided, that (i) the aggregate
principal of all outstanding U.S. Extensions of Credit shall not exceed the amount set forth on Exhibit C with respect to the U.S. Extensions of Credit and (ii) the aggregate principal of all outstanding Extensions of Credit (excluding
the Additional Credit Loans and treating the entire Swingline Commitment as outstanding) shall not exceed the amount set forth on Exhibit C with respect to the Extensions of Credit. 
 7. Effect of the Agreement; Agreement Regarding Borrowing Base and Overadvance Amount. 
 (a) Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and
effect. Except as expressly set forth herein, this Agreement shall not be deemed (i) to be a waiver of, or consent to, a modification of or amendment of, any other term or condition of the Credit Agreement or any other Loan Document,
(ii) to prejudice any other right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement or the other Loan Documents or any of the instruments or
agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, (iii) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion
with the Borrower or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders or the Administrative Agent, or any
of them, under or with respect to any such documents or (iv) to be a waiver of, or consent to or a modification or amendment of, any other term or condition of any other agreement by and among the Borrower, on the one hand, and the
Administrative Agent or any other Lender, on the other hand. References in the Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein”, and “hereof”) and
in any Loan Document to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby. This Agreement shall not be deemed to be an approval or acceptance of the terms and conditions of the Exchange Offer (as such
term is defined in Exhibit B hereto) or to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the U.S. Borrower, the Borrower or any other Person with respect to any waiver,
amendment, modification or any other change to the Credit Agreement or the Loan Documents with respect to the Exchange Offer. 
 (b) Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, the parties hereto acknowledge and agree that if: 
 (i) the Exchange Offer is terminated (it being agreed that the expiration of the Exchange Offer shall not constitute a termination thereof
if the Exchange Offer expires in accordance with its terms on March 9, 2009 and the completion, closing and settlement of the Exchange Offer will occur on or before March 17, 2009); or 
  

 4 

 (ii) the Exchange Offer shall not have been completed, closed and settled on or before
March 17, 2009 on terms and conditions satisfactory to the Administrative Agent, the U.S. Administrative Agent and the Required Lenders, 
 then, in
either case upon the earlier to occur of the events described in clauses (b)(i) and (b)(ii) of this Section 7: 
 (A) the Overadvance Amount shall be reduced to $63,556,526 as described in Exhibit B to this Agreement and shall be reflected at such reduced amount in calculating the Overadvance Amount at any time prior to March 31, 2009 for
all purposes under the Credit Agreement, including without limitation, in calculating the Borrowing Limit for the calendar month ending February 28, 2009 and preparing the Borrowing Base Certificate for the calendar month ending
February 28, 2009; and 
 (B) the Maximum Available Foreign Account Amount used (1) in calculating the Borrowing
Base at any time prior to the Conversion Date, including, without limitation, in calculating the Borrowing Base for the calendar month ending February 28, 2009 and (2) in preparing the Borrowing Base Certificate at any time prior to the
Conversion Date including, without limitation, for the calendar month ending February 28, 2009, shall, in each case equal the lesser of (x) $100,000,000 and (y) if the Policy Sublimit is reduced to an amount less than $75,000,000, the
Policy Sublimit as of such date. 
 8. Representations and Warranties/No Default. By their execution hereof, 
 (a) the Parent, the Borrower, the U.S. Borrower and each of the Grantors hereby certifies, represents and warrants to the Administrative
Agent and the Lenders that after giving effect to the consent set forth in Section 2 above and the amendments set forth in Sections 3 and 4 above, each of the representations and warranties set forth in the Credit Agreement
and the other Loan Documents is true and correct in all material respects as of the date hereof (except to the extent that (A) any such representation or warranty that is qualified by materiality or by reference to Material Adverse Effect, in
which case such representation or warranty is true and correct in all respects as of the date hereof or (B) any such representation or warranty relates only to an earlier date, in which case such representation or warranty shall remain true and
correct as of such earlier date) and that no Default or Event of Default has occurred or is continuing; 
 (b) the Parent, the
Borrower, the U.S. Borrower and each of the Grantors hereby certifies, represents and warrants to the Administrative Agent and the Lenders that: 
 (i) it has the right, power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other documents executed in
connection herewith to which it is a party in accordance with their respective terms and the transactions contemplated hereby; 
 (ii) this Agreement and each other document executed in connection herewith has been duly executed and delivered by the duly authorized officers of the Parent, the Borrower, the U.S. Borrower and each of the Grantors, and each such document
constitutes the legal, valid and binding obligation of the Parent, the Borrower, the U.S. Borrower and each of the Grantors, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies; and 
  

 5 

 (iii) neither EDC nor Fairfax is an Affiliate of the U.S. Borrower or any of its
Subsidiaries. 
 9. Reaffirmations. Each Credit Party (a) agrees that the transactions contemplated by this Agreement shall not
limit or diminish the obligations of such Person under, or release such Person from any obligations under, the Credit Agreement, the applicable Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party,
(b) confirms and reaffirms its obligations under the Credit Agreement, the applicable Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party and (c) agrees that the Credit Agreement, the
applicable Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party remain in full force and effect and are hereby ratified and confirmed. 
 10. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 11. Counterparts. This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. 
 12. Electronic Transmission. A facsimile,
telecopy, pdf or other reproduction of this Agreement may be executed by one or more parties hereto, and an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission
device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to
execute an original of this Agreement as well as any facsimile, telecopy, pdf or other reproduction hereof. 
 13. Representations and
Agreements of Additional Credit Lenders. 
 (a) Each Person executing this Agreement as the “Additional Credit
Lender” hereby (i) represents and warrants that (A) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a
Lender and an Additional Credit Lender (as such term is defined in Exhibit B attached hereto) under the Credit Agreement, (B) from and after the date hereof, it shall be bound by the provisions of the Credit Agreement as a Lender and an
Additional Credit Lender thereunder and, to the extent of its Additional Credit Commitment (as such term is defined in Exhibit B attached hereto), shall have the obligations of a Lender and an Additional Credit Lender thereunder, (C) it
has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 7.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Agreement and the Credit Agreement and to commit to the Additional Credit Commitment on the basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (D) if it is a Foreign Lender, it has provided to the Administrative Agent duly completed and executed documentation required to be delivered by it pursuant to the terms of the Credit Agreement and
(ii) agrees that (A) it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Loan Documents, (B) it will perform in accordance with their terms all of the obligations that by the terms of the Loan Documents are required to be performed by it as a 

  

 6 

 
Lender and (C) it will execute any additional documents reasonably requested by the Administrative Agent to evidence such financial institution’s
rights and obligations under the Credit Agreement. 
 (b) By its execution hereof, Fairfax acknowledges and agrees that the
Fairfax Liquidity shall be an Additional Credit Loan (as such term is defined in Exhibit B attached hereto). 
 14. Agreement
Regarding Additional Credit Loans. Notwithstanding anything to the contrary set forth in this Agreement, the Credit Agreement, the U.S. Credit Agreement, the other Loan Documents or any other U.S. Loan Document it is hereby agreed and
acknowledged by the parties hereto that, prior to the earlier of (a) the completion, closing and settlement of the Exchange Offer (as such term is defined in Exhibit B attached hereto) and (b) the Maturity Date, the U.S. Borrower
and its Subsidiaries shall not cancel, forgive, make any payment or prepayment on, or redeem or acquire for value (including, without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the
purpose of paying when due, including any payments at the scheduled maturity thereof) all or any portion of the Additional Credit Loans. Furthermore, the parties hereto agree that any failure by the U.S. Borrower or any of its Subsidiaries to comply
with this Section 14 shall, without any further action by any party, constitute an immediate Event of Default and an immediate “Event of Default” (as defined in the U.S. Credit Agreement). 
 15. Agreement Regarding Post-Closing Deliverables. No later than March 9, 2009, the Administrative Agent shall have received favorable
opinions of special Korean counsel to the Credit Parties addressed to the Administrative Agent and the Lenders (or the Additional Credit Lenders) with respect to the Security Documents governing the security interests with respect to the Korean
Shares and such other matters as the Lenders shall request. 
 [Signature Pages Follow] 
  

 7 

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

			
	BORROWER:
	
	BOWATER CANADIAN FOREST PRODUCTS INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Vice President and Treasurer

	
	U.S. BORROWER:
	
	BOWATER INCORPORATED
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Senior Vice President and Treasurer

	
	BOWATER ALABAMA LLC
	
	By: Bowater Newsprint South LLC, its member
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Manager

	
	BOWATER NEWSPRINT SOUTH LLC
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Manager

	
	BOWATER NEWSPRINT SOUTH OPERATIONS LLC
	
	By: Bowater Newsprint South LLC, its manager
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Manager

 [Signature Pages Continue] 

			
	PARENT:
	
	ABITIBIBOWATER INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Senior Vice President and Chief Financial Officer

	
	GRANTORS:
	
	BOWATER CANADIAN HOLDINGS INCORPORATED
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Vice President

	
	BOWATER CANADA FINANCE LIMITED PARTNERSHIP
		
	By:	 	BOWATER CANADA TREASURY CORPORATION, its general partner
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 President

	
	BOWATER SHELBURNE CORPORATION
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 President

	
	BOWATER LAHAVE CORPORATION
		
	By:	 	 /s/ William G. Harvey

	Name:	 	 William G. Harvey

	Title:	 	 Director

 [Signature Pages Continue] 

			
	THE BANK OF NOVA SCOTIA, as Administrative Agent (on behalf of itself and the Consenting Lenders who have executed a Lender Authorization) and as Issuing Lender and
Lender
		
	By:	 	 /s/ Robert Boomhour

	Name:	 	 Robert Boomhour

	Title:	 	 Director

 [Signature Pages Continue] 

			
	EXPORT DEVELOPMENT CANADA, as an Additional Credit Lender
		
	By:	 	 /s/ Christiane deBilly

	Name:	 	 Christiane deBilly

	Title:	 	 Financing Manager

  

			
		
	By:	 	 /s/ Carl Burlock

	Name:	 	 Carl Burlock

	Title:	 	 Director, Finance

 [Signature Pages Continue] 

			
	FAIRFAX FINANCIAL HOLDINGS LIMITED, as an Additional Credit Lender
		
	By:	 	 /s/ Ronald Schokking

	Name:	 	 Ronald Schokking

	Title:	 	 Vice President

 Exhibit A 
 Form of Lender Authorization 

 LENDER AUTHORIZATION 
 Bowater Incorporated and New Borrowers 
 Bowater Canadian Forest Products Inc.

 Ninth Amendment to U.S. Credit Agreement 
 Eleventh Amendment to Canadian Credit Agreement 
 February 27, 2009 
 Wachovia Bank, National Association, as U.S Administrative Agent 
 NC0680

 1525 West W.T. Harris Blvd. 
 Charlotte, North Carolina 28262

 Attention: Syndication Agency Services 
 The Bank of Nova
Scotia, as Canadian Administrative Agent 
 40 King Street West 
 Scotia Plaza, 62nd Floor 
 Toronto, Ontario M5W 2X6 
 Attention: Corporate
Banking Loan Syndication 
  

	 	Re:	(a) The Ninth Amendment dated as of February 27, 2009 (the “U.S. Agreement”) to that certain Credit Agreement dated as of May 31, 2006 (as amended, the
“U.S. Credit Agreement”) among Bowater Incorporated and the New Borrowers party thereto (collectively, the “U.S. Borrower”), the lenders party thereto (the “U.S. Lenders”), and Wachovia Bank,
National Association, as administrative agent (the “U.S. Administrative Agent”) for the U.S. Lenders and (b) the Eleventh Amendment dated as of February 27, 2009 (the “Canadian Agreement” and, together
with the U.S. Agreement, the “Agreements”) to that certain Credit Agreement dated as of May 31, 2006 (as amended, the “Canadian Credit Agreement”) among Bowater Canadian Forest Products Inc. (the
“Canadian Borrower”), the U.S. Borrower, the lenders party thereto (the “Canadian Lenders”), and The Bank of Nova Scotia, as administrative agent (the “Canadian Administrative Agent”) for the
Canadian Lenders. 

 This Lender Authorization acknowledges our receipt and review of the execution copy of the Agreements,
each in the form posted on SyndTrak Online or otherwise distributed to us by the U.S. Administrative Agent or the Canadian Administrative Agent. By executing this Lender Authorization, we hereby approve the Agreements and authorize the U.S.
Administrative Agent or the Canadian Administrative Agent (as applicable) to execute and deliver the Agreements on our behalf. 
 Each
financial institution purporting to be a U.S. Lender and executing this Lender Authorization agrees or reaffirms that it shall be a party to the Agreements and the other Loan Documents (as defined in the U.S. Credit Agreement) to which U.S. Lenders
are parties and shall have the rights and obligations of a “Lender” (as defined in the U.S. Credit Agreement), and agrees to be bound by the terms and provisions applicable to a “Lender” under each such agreement. Each financial
institution purporting to be a Canadian Lender and executing this Lender Authorization agrees or reaffirms that it shall be a party to the Agreements and the other Loan Documents (as defined in the Canadian Credit Agreement) to which Canadian
Lenders are parties and shall have the rights and obligations of a “Lender” (as defined in the Canadian Credit Agreement), and agrees to be bound by the terms and provisions applicable to a “Lender” under each such agreement. In
furtherance of the foregoing, each financial institution executing 

 
this Lender Authorization agrees to execute any additional documents reasonably requested by the U.S. Administrative Agent or the Canadian Administrative
Agent, as applicable, to evidence such financial institution’s rights and obligations under the U.S. Credit Agreement or the Canadian Credit Agreement, as applicable. 
 A facsimile, telecopy, pdf or other reproduction of this Lender Authorization may be executed by one or more parties hereto, and an executed copy of this
Lender Authorization may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall
be considered valid, binding and effective for all purposes. 
  

			
	  

	[Insert name of applicable financial institution]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 [Eleventh Amendment to Canadian Credit Agreement – Bowater] 

 Exhibit B 
 Amended Canadian Credit Agreement 

 CREDIT AGREEMENT 
 dated as of May 31, 2006 
 (as amended by that certain First Amendment dated as of July 20, 2007,

 that certain Second Amendment dated as of October 31, 2007, 
 that certain Third Amendment and Waiver dated as of February 25, 2008, 
 that
certain Fourth Amendment dated as of March 31, 2008, that certain Fifth Amendment dated 
 as of April 30, 2008, that certain Sixth
Amendment dated as of May 28, 2008, 
 that certain Seventh Amendment dated as of June 6, 2008, 
 that certain Eighth Amendment dated as of June 30, 2008, 
 that certain Ninth Amendment and Waiver dated as of August 7, 2008, 
 that certain Tenth Amendment and
Waiver dated as of November 12, 2008 and that certain 
 Eleventh Amendment and Consent dated as of February 27, 2009) 
 by and among 
 BOWATER CANADIAN FOREST
PRODUCTS INC., 
 as Borrower, 
 BOWATER INCORPORATED, 
 BOWATER ALABAMA LLC, 
 BOWATER NEWSPRINT SOUTH LLC, and 
 BOWATER NEWSPRINT SOUTH OPERATIONS
LLC, 
 as Guarantors, 
 the
Lenders referred to herein, 
 THE BANK OF NOVA SCOTIA, 
 as Administrative Agent 
 and Issuing Lender, 
 BANK OF MONTREAL, 
 as Syndication Agent and Swingline Lender, 
 and 
 WACHOVIA BANK, NATIONAL ASSOCIATION,

 as Documentation Agent 
 WACHOVIA CAPITAL MARKETS, LLC, 
 as Sole Book Manager 
 WACHOVIA CAPITAL MARKETS, LLC, 
 as Lead Arranger 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	 ARTICLE I DEFINITIONS
	  	1
	 SECTION 1.1
	 	 Definitions
	  	1
	 SECTION 1.2
	 	 Other Definitions and Provisions
	  	50
	 SECTION 1.3
	 	 Accounting Terms
	  	51
	 SECTION 1.4
	 	 PPSA and CCQ Terms
	  	51
	 SECTION 1.5
	 	 Rounding
	  	51
	 SECTION 1.6
	 	 References to Agreement and Laws
	  	51
	 SECTION 1.7
	 	 Times of Day
	  	52
	 SECTION 1.8
	 	 Letter of Credit Amounts
	  	52
	 SECTION 1.9
	 	 Amount of Obligations
	  	52
		
	 ARTICLE II REVOLVING CREDIT FACILITY
	  	52
	 SECTION 2.1
	 	 Revolving Credit Loans
	  	52
	 SECTION 2.2
	 	 Swingline Loans
	  	52
	 SECTION 2.3
	 	 EDC Credit Loan
	  	54
	 SECTION 2.4
	 	 Fairfax Credit Loan
	  	55
	 SECTION 2.5
	 	 Procedure for Advances of Revolving Credit Loans and Swingline Loans
	  	55
	 SECTION 2.6
	 	 Repayment and Prepayment of Loans
	  	56
	 SECTION 2.7
	 	 Permanent Reduction of the Revolving Credit Commitment and Swingline Commitment
	  	60
	 SECTION 2.8
	 	 Termination of Credit Facility
	  	61
	 SECTION 2.9
	 	 Terms Applicable to BA Loans
	  	63
		
	 ARTICLE III LETTER OF CREDIT FACILITY
	  	68
	 SECTION 3.1
	 	 L/C Commitment
	  	68
	 SECTION 3.2
	 	 Procedure for Issuance of Letters of Credit
	  	68
	 SECTION 3.3
	 	 Commissions and Other Charges
	  	69
	 SECTION 3.4
	 	 L/C Participations
	  	70
	 SECTION 3.5
	 	 Reimbursement Obligation of the Borrower
	  	71
	 SECTION 3.6
	 	 Obligations Absolute
	  	71
	 SECTION 3.7
	 	 Effect of Letter of Credit Application
	  	72
		
	 ARTICLE IV GENERAL LOAN PROVISIONS
	  	72
	 SECTION 4.1
	 	 Interest
	  	72
	 SECTION 4.2
	 	 Notice and Manner of Conversion or Continuation of Loans
	  	75
	 SECTION 4.3
	 	 Fees
	  	76
	 SECTION 4.4
	 	 Manner of Payment
	  	78
	 SECTION 4.5
	 	 Evidence of Indebtedness
	  	78
	 SECTION 4.6
	 	 Adjustments
	  	79

  

 i 

					
	 SECTION 4.7
	 	 Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the Administrative Agent
	  	82
	 SECTION 4.8
	 	 Changed Circumstances
	  	83
	 SECTION 4.9
	 	 Indemnity
	  	84
	 SECTION 4.10
	 	 Increased Costs
	  	84
	 SECTION 4.11
	 	 Taxes
	  	86
	 SECTION 4.12
	 	 Mitigation Obligations; Replacement of Lenders
	  	88
	 SECTION 4.13
	 	 Security
	  	89
	 SECTION 4.14
	 	 Additional Subsidiary Borrowers
	  	90
		
	 ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING
	  	91
	 SECTION 5.1
	 	 Closing
	  	91
	 SECTION 5.2
	 	 Conditions to Closing and Initial Extensions of Credit
	  	91
	 SECTION 5.3
	 	 Conditions to All Extensions of Credit
	  	95
	 SECTION 5.4
	 	 Post-Closing Conditions
	  	96
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE BORROWER
	  	97
	 SECTION 6.1
	 	 Representations and Warranties
	  	97
	 SECTION 6.2
	 	 Survival of Representations and Warranties, Etc.
	  	104
		
	 ARTICLE VII FINANCIAL INFORMATION AND NOTICES
	  	105
	 SECTION 7.1
	 	 Financial Statements and Projections
	  	105
	 SECTION 7.2
	 	 Officer’s Compliance Certificate
	  	110
	 SECTION 7.3
	 	 Accountants’ Certificate
	  	110
	 SECTION 7.4
	 	 Other Reports
	  	110
	 SECTION 7.5
	 	 Notice of Litigation and Other Matters
	  	111
	 SECTION 7.6
	 	 Accuracy of Information
	  	112
		
	 ARTICLE VIII AFFIRMATIVE COVENANTS
	  	112
	 SECTION 8.1
	 	 Preservation of Corporate Existence and Related Matters
	  	112
	 SECTION 8.2
	 	 Maintenance of Property; Commitment Reductions and Repayments
	  	112
	 SECTION 8.3
	 	 Insurance
	  	118
	 SECTION 8.4
	 	 Accounting Methods and Financial Records
	  	118
	 SECTION 8.5
	 	 Payment of Taxes
	  	118
	 SECTION 8.6
	 	 Compliance With Laws and Approvals
	  	118
	 SECTION 8.7
	 	 Environmental Laws
	  	118
	 SECTION 8.8
	 	 Compliance with ERISA
	  	119
	 SECTION 8.9
	 	 Visits and Inspections; Consultant Matters
	  	119
	 SECTION 8.10
	 	 Additional Guarantors; Canadian Fixed Assets and Korean Shares
	  	120
	 SECTION 8.11
	 	 Use of Proceeds
	  	129
	 SECTION 8.12
	 	 Further Assurances
	  	129
		
	 ARTICLE IX FINANCIAL COVENANTS
	  	129
	 SECTION 9.1
	 	 Consolidated Senior Secured Leverage Ratio
	  	129
	 SECTION 9.2
	 	 Interest Coverage Ratio
	  	130

  

 ii 

					
		
	 ARTICLE X NEGATIVE COVENANTS
	  	130
	 SECTION 10.1
	 	 Limitations on Indebtedness
	  	130
	 SECTION 10.2
	 	 Limitations on Liens
	  	134
	 SECTION 10.3
	 	 Limitations on Loans, Advances, Investments and Acquisitions
	  	136
	 SECTION 10.4
	 	 Limitations on Mergers and Liquidation
	  	137
	 SECTION 10.5
	 	 Limitations on Asset Dispositions
	  	138
	 SECTION 10.6
	 	 Limitations on Dividends and Distributions
	  	139
	 SECTION 10.7
	 	 Limitations on Exchange and Issuance of Capital Stock
	  	140
	 SECTION 10.8
	 	 Transactions with Affiliates
	  	140
	 SECTION 10.9
	 	 Certain Accounting Changes; Organizational Documents
	  	141
	 SECTION 10.10
	 	 Amendments; Payments and Prepayments of Indebtedness
	  	141
	 SECTION 10.11
	 	 Restrictive Agreements
	  	143
	 SECTION 10.12
	 	 Nature of Business
	  	143
	 SECTION 10.13
	 	 Impairment of Security Interests
	  	143
	 SECTION 10.14
	 	 Maximum Cash Balances
	  	144
		
	 ARTICLE XI UNCONDITIONAL U.S. BORROWER GUARANTY
	  	144
	 SECTION 11.1
	 	 Guaranty of Obligations
	  	144
	 SECTION 11.2
	 	 Nature of Guaranty
	  	144
	 SECTION 11.3
	 	 Waivers
	  	145
	 SECTION 11.4
	 	 Modification of Loan Documents, Etc.
	  	146
	 SECTION 11.5
	 	 Demand by the Administrative Agent
	  	147
	 SECTION 11.6
	 	 Termination; Reinstatement
	  	147
	 SECTION 11.7
	 	 No Subrogation
	  	148
	 SECTION 11.8
	 	 Payments
	  	149
	 SECTION 11.9
	 	 Nature of Obligations; Bankruptcy Limitations; Agreement for Contribution
	  	149
		
	 ARTICLE XII DEFAULT AND REMEDIES
	  	151
	 SECTION 12.1
	 	 Events of Default
	  	151
	 SECTION 12.2
	 	 Remedies
	  	156
	 SECTION 12.3
	 	 Rights and Remedies Cumulative; Non-Waiver; etc.
	  	157
	 SECTION 12.4
	 	 Crediting of Payments and Proceeds
	  	158
	 SECTION 12.5
	 	 Administrative Agent May File Proofs of Claim
	  	159
	 SECTION 12.6
	 	 Judgment Currency
	  	159
		
	 ARTICLE XIII THE ADMINISTRATIVE AGENT
	  	160
	 SECTION 13.1
	 	 Appointment and Authority
	  	160
	 SECTION 13.2
	 	 Rights as a Lender
	  	161
	 SECTION 13.3
	 	 Exculpatory Provisions
	  	161
	 SECTION 13.4
	 	 Reliance by the Administrative Agent
	  	162
	 SECTION 13.5
	 	 Delegation of Duties
	  	162
	 SECTION 13.6
	 	 Resignation of Administrative Agent
	  	163
	 SECTION 13.7
	 	 Non-Reliance on Administrative Agent and Other Lenders
	  	164
	 SECTION 13.8
	 	 No Other Duties, etc; Documentation Agent
	  	164
	 SECTION 13.9
	 	 Collateral and Guaranty Matters
	  	165
	 SECTION 13.10
	 	 Swingline Lender
	  	165

  

 iii 

					
	 SECTION 13.11
	 	 Additional Loans
	  	166
	 SECTION 13.12
	 	 Special Agent Advances
	  	166
		
	 ARTICLE XIV MISCELLANEOUS
	  	168
	 SECTION 14.1
	 	 Notices
	  	168
	 SECTION 14.2
	 	 Amendments, Waivers and Consents
	  	169
	 SECTION 14.3
	 	 Expenses; Indemnity
	  	171
	 SECTION 14.4
	 	 Right of Setoff
	  	173
	 SECTION 14.5
	 	 Governing Law
	  	174
	 SECTION 14.6
	 	 Waiver of Jury Trial
	  	174
	 SECTION 14.7
	 	 Reversal of Payments
	  	175
	 SECTION 14.8
	 	 Additional Intercreditor Provision
	  	175
	 SECTION 14.9
	 	 Injunctive Relief; Punitive Damages
	  	176
	 SECTION 14.10
	 	 Accounting Matters
	  	177
	 SECTION 14.11
	 	 Successors and Assigns; Participations
	  	177
	 SECTION 14.12
	 	 Confidentiality
	  	180
	 SECTION 14.13
	 	 Performance of Duties
	  	181
	 SECTION 14.14
	 	 All Powers Coupled with Interest
	  	181
	 SECTION 14.15
	 	 Survival of Indemnities
	  	181
	 SECTION 14.16
	 	 Titles and Captions
	  	181
	 SECTION 14.17
	 	 Severability of Provisions
	  	181
	 SECTION 14.18
	 	 Counterparts
	  	181
	 SECTION 14.19
	 	 Integration
	  	181
	 SECTION 14.20
	 	 Term of Agreement
	  	181
	 SECTION 14.21
	 	 No Fiduciary Duty
	  	182
	 SECTION 14.22
	 	 Advice of Counsel, No Strict Construction
	  	182
	 SECTION 14.23
	 	 USA Patriot Act
	  	182
	 SECTION 14.24
	 	 Inconsistencies with Other Documents; Independent Effect of Covenants
	  	183
	 SECTION 14.25
	 	 No Novation
	  	183

  

 iv 

 EXHIBITS 
  

					
	 Exhibit A-1
	  	-	    	 Form of Revolving Credit Note

	 Exhibit A-2
	  	-	    	 Form of Swingline Note

	 Exhibit B
	  	-	    	 Form of Notice of Borrowing

	 Exhibit C
	  	-	    	 Form of Notice of Account Designation

	 Exhibit D
	  	-	    	 Form of Notice of Prepayment

	 Exhibit E
	  	-	    	 Form of Notice of Conversion/Continuation

	 Exhibit F
	  	-	    	 Form of Officer’s Compliance Certificate

	 Exhibit G
	  	-	    	 Form of Assignment and Assumption

	 Exhibit H
	  	-	    	 Form of Subsidiary Guaranty Agreement

	 Exhibit I
	  	-	    	 Form of Collateral Agreement

	 Exhibit J
	  	-	    	 Form of Intercompany Subordination Agreement

	 Exhibit K
	  		    	 Form of Borrowing Base Certificate

 SCHEDULES 
  

					
	Schedule 1.1(a)	  	-	    	 Existing Letters of Credit

	Schedule 1.1(b)	  	-	    	 Specified Existing Notes

	Schedule 1.1(c)	  	-	    	 Description of New U.S. Borrower Real Property

	Schedule 6.1(b)	  	-	    	 Subsidiaries and Capitalization

	Schedule 6.1(i-1)	  	-	    	 ERISA Plans

	Schedule 6.1(i-2)	  	-	    	 Canadian Plans

	Schedule 6.1(l)	  	-	    	 Significant Indebtedness

	Schedule 6.1(n)	  	-	    	 Burdensome Provisions

	Schedule 6.1(t)	  	-	    	 Litigation

	Schedule 10.1	  	-	    	 Permitted Indebtedness

	Schedule 10.2	  	-	    	 Existing Liens

	Schedule 10.3	  	-	    	 Existing Loans, Advances and Investments

	Schedule 10.8	  	-	    	 Transactions with Affiliates

  

 v 

 CREDIT AGREEMENT, dated as of May 31, 2006, by and among BOWATER CANADIAN FOREST PRODUCTS INC., a
Canadian corporation (the “Borrower”), together with each additional borrower that becomes a party hereto pursuant to the terms hereof, as Borrower, BOWATER INCORPORATED, a Delaware corporation (the “Original U.S.
Borrower”), BOWATER ALABAMA LLC (formerly known as Bowater Alabama, Inc.), an Alabama limited liability company (the “Coosa Pines Borrower”), BOWATER NEWSPRINT SOUTH LLC, a Delaware limited liability company (“BNS
Holdings”) and BOWATER NEWSPRINT SOUTH OPERATIONS LLC (formerly known as Bowater Newsprint South, Inc.), a Delaware limited liability company and the successor by merger to Bowater Mississippi, LLC (the “Grenada Borrower”
and, collectively with the Coosa Pines Borrower and BNS Holdings, the “New U.S. Borrowers”), together with each additional guarantor that becomes a party hereto pursuant to the terms hereof, as Guarantors, the lenders who are party
to this Agreement or who may become a party to this Agreement pursuant to Section 14.11 hereof, as Lenders, and THE BANK OF NOVA SCOTIA, as Administrative Agent for the Lenders. 
 STATEMENT OF PURPOSE 
 The Borrower has requested, and the Lenders have agreed,
to extend certain credit facilities to the Borrower on the terms and conditions of this Agreement. 
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions. The following terms when used in this Agreement shall have the meanings assigned to them below: 
 “Abitibi” means Abitibi-Consolidated Inc. 
 “Abitibi Entities” means, collectively, Abitibi and
its Subsidiaries. 
 “Accounts” has the meaning specified in Section 1.1 of the Collateral Agreement.

 “Additional Credit Commitment” means the EDC Credit Commitment and the Fairfax Credit Commitment. 
 “Additional Credit Lenders” means collectively the EDC Credit Lender and the Fairfax Credit Lender solely in their respective capacities
as a lender in respect of the Additional Credit Commitment. 
 “Additional Credit Loan” means any EDC Credit Loan or any
Fairfax Credit Loan and “Additional Credit Loans” means the collective reference to the EDC Credit Loans and the Fairfax Credit Loans. 

 “Administrative Agent” means The Bank of Nova Scotia, in its capacity as Administrative
Agent hereunder, and any successor thereto appointed pursuant to Section 13.6. 
 “Administrative Agent’s
Office” means the office of the Administrative Agent specified in or determined in accordance with the provisions of Section 14.1(c). 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
 “Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such
first Person or any of its Subsidiaries. As used in this definition, the term “control” means (a) the power to vote ten percent (10%) or more of the securities or other equity interests of a Person having ordinary voting power
(excluding, however, a Person or group whose ownership in another Person is permitted to be reported on Schedule 13G pursuant to Rule 13d-1(b) under the Securities Exchange Act of 1934, as amended) or (b) the possession, directly or indirectly,
of any other power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, (i) no individual shall be an Affiliate of
the U.S. Borrower or any of its Subsidiaries solely and exclusively by reason of his or her being a director, officer or employee of the U.S. Borrower or any of its Subsidiaries, (ii) none of the Subsidiaries of the U.S. Borrower shall be
Affiliates of the U.S. Borrower or any of its Subsidiaries and (iii) no U.S. Borrower shall be an Affiliate of any other U.S. Borrower; provided that the Abitibi Entities shall be Affiliates of the U.S. Borrower and its Subsidiaries for
the purposes of this Agreement and the other Loan Documents and the U.S. Credit Agreement and the “Loan Documents” (as defined in the U.S. Credit Agreement). 
 “Aggregate Credit Exposure” means the sum of (a) the aggregate amount of outstanding Loans, (b) the Swingline Commitment and (c) the aggregate amount of outstanding U.S. Loans.

 “Agreement” means this Credit Agreement, as amended by (a) the First Amendment dated as of July 20, 2007 by and
among the Borrower, the Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto), (b) the Second Amendment dated as of October 31, 2007 by and among the Borrower, the Guarantors and the Administrative
Agent (on behalf of itself and the Lenders party thereto), (c) the Third Amendment, (d) the Fourth Amendment, (e) the Fifth Amendment, (f) the Sixth Amendment, (g) the Seventh Amendment, (h) the Eighth Amendment,
(i) the Ninth Amendment, (j) the Tenth Amendment, (k) the Eleventh Amendment and as further amended, restated, supplemented or otherwise modified from time to time. 
 “Applicable Insolvency Laws” means all Applicable Laws governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C. Sections 544, 547, 548 and 550 and other “avoidance” provisions of Title 11 of the United
States Code, as amended or supplemented, the Bankruptcy and Insolvency Act (Canada), as amended or supplemented, the Companies’ Creditors Arrangement Act (Canada), as amended or supplemented, and the CCQ). 
  

 2 

 “Applicable Law” means all applicable provisions of constitutions, laws, statutes,
ordinances, rules, treaties, regulations, permits, licenses, approvals, legally binding policies, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators. 
 “Applicable Margin” means, 
 (a) with respect to Loans (other than the Additional Credit Loans) the corresponding percentages per annum as set forth below based on the Average Utilization: 
  

									
	 Pricing
 Level
	  	 Average Utilization
 Percentage
	  	LIBOR +	 	 	Canadian Prime Rate
or Base Rate +	 
	 I
	  	 Greater than 75%
	  	5.50	%	 	4.50	%
	 II
	  	 Greater than 35%, but less than or equal to 75%
	  	5.25	%	 	4.25	%
	 III
	  	 Less than or equal to 35%
	  	5.00	%	 	4.00	%

 (b) with respect to EDC Credit Loans, 8.00%; or 
 (c) with respect to Fairfax Credit Loans, 10.00%. 
 The
Applicable Margin shall be determined by the Administrative Agent and adjusted quarterly on each Calculation Date; provided that the Applicable Margin shall be based on Pricing Level II from and after the Eleventh Amendment Effective
Date until the first Calculation Date occurring after the Eleventh Amendment Effective Date and, thereafter the Pricing Level shall be determined by reference to the Average Utilization Percentage as of the last day of the most recently ended fiscal
quarter of the U.S. Borrower preceding the applicable Calculation Date. The Applicable Margin shall be effective from one Calculation Date until the next Calculation Date. Any adjustment in the Applicable Margin shall be applicable to all Extensions
of Credit then existing or subsequently made or issued. 
 “Approved Fund” means any Person (other than a natural Person),
including, without limitation, any special purpose entity, that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business;
provided, that such Approved Fund must be administered, managed or underwritten by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  

 3 

 “April 2008 Convertible Indebtedness” means that certain Indebtedness incurred by the
Parent in accordance with the terms of Section 12.1(o)(viii) on or prior to April 15, 2008, which is convertible into Capital Stock of the Parent. 
 “Asset Coverage Amount” means, as of any date of determination, an amount equal to sixty percent (60%) of the net book value of the Coverage Assets as set forth on the Consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Section 5.2 or Section 7.1 hereof. 
 “Asset Disposition” means the disposition of any or all of the assets (including, without limitation, any Capital Stock owned thereby) of the U.S. Borrower or any of its Subsidiaries whether by sale, lease, transfer or
otherwise. The term “Asset Disposition” shall not include any Insurance and Condemnation Event. 
 “Asset Sale Reduction
Amount” means: 
 (d) with respect to any Asset Disposition or Insurance and Condemnation Event with respect to the New U.S. Borrower
Fixed Assets, one hundred percent (100%) of the Net Cash Proceeds of such Asset Disposition or Insurance and Condemnation Event; or 
 (e) with respect to any other Asset Disposition or Insurance and Condemnation Event, seventy five percent (75%) of the Net Cash Proceeds of such Asset Disposition or Insurance and Condemnation Event. 
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of
any party whose consent is required by Section 14.11), and accepted by the Administrative Agent, in substantially the form of Exhibit G or any other form approved by the Administrative Agent. 
 “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof
that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease, the capitalized amount or principal amount of the remaining lease payments under the relevant lease
that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease. 
 “Average Utilization” means, for any calendar quarter, the average daily principal balance of all Extensions of Credit (other than Extensions of Credit under the EDC Credit Facility and the Fairfax
Credit Facility) outstanding during such calendar quarter. 
 “Average Utilization Percentage” means, for any calendar
quarter, the ratio of (a) the Dollar Amount of the Average Utilization for such quarter to (b) the aggregate amount of the Revolving Credit Commitments of all Lenders as of the end of such quarter. 
 “BA Discount Rate” means, with respect to an issue of Bankers’ Acceptances with the same maturity date, (a) for a Lender which
is a Schedule I Lender, the CDOR Rate for the appropriate term, and (b) for a Lender which is a Lender (other than a Schedule I Lender), the 

  

 4 

 
arithmetic average (rounded upwards to the nearest  1/100 of 1%) of the actual discount rates for Bankers’ Acceptances for such term accepted by the Schedule II or III Reference Banks established in accordance with their normal practices at or about 10:00 a.m.
(Toronto time) on the date of issuance. 
 “BA Equivalent Loan” means a Revolving Credit Loan made to the Borrower by
a Non-BA Lender in lieu of accepting such Non-BA Lender’s share of Bankers’ Acceptances which may be evidenced by a Discount Note. 
 “BA Loan” means a borrowing by the Borrower by way of the issuance of Bankers’ Acceptances and includes a BA Equivalent Loan. 
 “BA Proceeds” means, for any Bankers’ Acceptance issued and to be purchased by the Lenders hereunder, an amount calculated on the applicable date that such Bankers’ Acceptance is accepted by
dividing: 
 (a) the face amount of such Bankers’ Acceptance 
 by 
 (b) the sum of one plus the
product of: 
 (i) the BA Discount Rate applicable thereto 
 and 
 (ii) a
fraction, the numerator of which is the number of days in the applicable Interest Period and the denominator of which is the number of days in the applicable year, being 365 or 366, as the case may be, 
 with the product being rounded up or down to the (A) second decimal place (with .005 being rounded up) and (B) nearest whole cent with one-half of one cent
being rounded up. 
 “Bankers’ Acceptance” means each bill of exchange, including a depository bill issued in
accordance with the Depository Bills and Notes Act (Canada), denominated in Canadian Dollars, drawn by the Borrower and accepted by a Lender (including, without limitation, each Discount Note). 
 “Base Rate” means, at any time, the higher of (a) the Prime Rate and
(b) the Federal Funds Rate plus  1/2 of 1%; each change in the Base Rate shall take effect simultaneously with the
corresponding change or changes in the Prime Rate or the Federal Funds Rate. 
 “Base Rate Loan” means any
Loan made to the Borrower in Dollars which bears interest at a rate based upon the Base Rate as provided in Section 4.1(a). 
  

 5 

 “BCFC Notes” means the 7.95% Notes due 2011 issued pursuant to the Indenture dated as of
October 31, 2001 among Bowater Canada Finance Corporation, as Issuer, the Original U.S. Borrower, as Guarantor, and The Bank of New York, as Trustee. 
 “Borrower” has the meaning assigned thereto in the introductory paragraph hereto. 
 “Borrowing Base” means, at any time, the amount equal to: 
 (a) the sum of: 
 (i) up to eighty-five percent (85%) of Eligible Domestic Accounts; plus  
 (ii) the lesser of (A) up to eighty-five percent (85%) of Eligible Foreign Accounts and (B) an amount equal to the
Designated Available Foreign Account Amount at such time (it being understood and agreed that, as of any applicable date of determination of the Borrowing Base or the U.S. Borrowing Base, the sum of (1) the Designated Available Foreign Account
Amount plus (2) the Designated U.S. Available Foreign Account Amount shall not exceed the amount set forth below during the applicable period set forth below): 
  

			
	 Applicable Period
	  	 Maximum Available Foreign
 Account Amount

	Tenth Amendment Effective Date to but excluding the Reversion Date	  	Lesser of (a) $115,000,000 and (b) if the Policy Sublimit is reduced to an amount less than $75,000,000, the Policy Sublimit as of such date
		
	Reversion Date to but excluding the Conversion Date	  	Lesser of (a) $100,000,000 and (b) if the Policy Sublimit is reduced to an amount less than $75,000,000, the Policy Sublimit as of such date
		
	Conversion Date to but excluding June 30, 2009	  	Lesser of (a) $75,000,000 and (b) the Policy Sublimit as of such date
		
	June 30, 2009 and thereafter	  	Lesser of (a) $50,000,000 and (b) the Policy Sublimit as of such date

 plus 
 (b) the sum of: 
 (i) with
respect to Eligible Inventory consisting of work in process, an amount equal to the least of: (A) up to fifty percent (50%) of the Value of such Eligible Inventory, (B) up to eighty-five percent (85%) of the Net Recovery
Percentage of such Eligible Inventory, and (C) $1,500,000; plus 
  

 6 

 (ii) with respect to Eligible Inventory consisting of finished goods and raw materials,
the lesser of: (A) up to seventy-five percent (75%) of the Value of such Eligible Inventory and (B) up to eighty-five percent (85%) of the Net Recovery Percentage of such Eligible Inventory; 
 minus 
 (c) any
Reserves. 
 “Borrowing Base Certificate” means a certificate substantially in the form of Exhibit K.

 “Borrowing Limit” means, at any time, the least of: 
 (a) the aggregate principal amount of the Commitments at such time less, except with respect to Section 2.6(d) and Section 5.2(e)(iii),

 (i) in the case of any request for Revolving Credit Loans (other than BA Loans), the sum of (A) the Swingline
Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2), (B) all outstanding BA Loans, (C) all L/C Obligations and
(D) all outstanding Additional Credit Loans; 
 (ii) in the case of any request for Swingline Loans, the sum of
(A) all outstanding Revolving Credit Loans (including BA Loans), (B) all L/C Obligations and (C) all outstanding Additional Credit Loans; 
 (iii) in the case of any request for BA Loans, the sum of (A) the Swingline Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or
participated, pursuant to Section 2.2), (B) all outstanding Revolving Credit Loans (other than BA Loans), (C) all L/C Obligations and (D) all outstanding Additional Credit Loans; 
 (iv) in the case of any request for issuance of a Letter of Credit, the sum of (A) the Swingline Commitment (less, during a
Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2), (B) all outstanding Revolving Credit Loans (including BA Loans) and (C) all
outstanding Additional Credit Loans. 
 (b) the amount which, when aggregated with the aggregate amount of all other Extensions of Credit,
does not exceed the Asset Coverage Amount; and 
 (c) other than in respect of Additional Credit Loans, at any time on or after the Tenth
Amendment Effective Date but prior to the Conversion Date, the sum of (i) the Borrowing Base at such time plus (ii) the Overadvance Amount at such time less (iii) except with respect to Section 2.6(d), 

 

 7 

 (A) in the case of any request for Revolving Credit Loans (other than BA Loans), the sum
of the Swingline Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and of all outstanding BA Loans and L/C Obligations;

 (B) in the case of any request for Swingline Loans, the sum of all outstanding Revolving Credit Loans (including BA Loans)
and L/C Obligations; 
 (C) in the case of any request for BA Loans, the sum of the Swingline Commitment (less, during a
Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and of all outstanding Revolving Credit Loans (other than BA Loans) and L/C Obligations; or

 (D) in the case of any request for issuance of a Letter of Credit, the sum of the Swingline Commitment (less, during a
Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and all outstanding Revolving Credit Loans (including BA Loans); and 
 (d) other than in respect of Additional Credit Loans , at any time on or after the Conversion Date, the Borrowing Base at such time less, except
with respect to Section 2.6(d), 
 (i) in the case of any request for Revolving Credit Loans (other than BA Loans), the
sum of the Swingline Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and the sum of all outstanding BA Loans and L/C
Obligations; 
 (ii) in the case of any request for Swingline Loans, the sum of all outstanding Revolving Credit Loans
(including BA Loans) and L/C Obligations; 
 (iii) in the case of any request for BA Loans, the sum of the Swingline
Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and of all outstanding Revolving Credit Loans (other than BA Loans)
and L/C Obligations; or 
 (iv) in the case of any request for issuance of a Letter of Credit, the sum of the Swingline
Commitment (less, during a Reallocation Period, the principal amount of outstanding Swingline Loans which have been refunded, or participated, pursuant to Section 2.2) and all outstanding Revolving Credit Loans (including BA Loans).

 “Bowater-Calhoun Arrangement” means that certain intercompany loan arrangement pursuant to which: 
 (a) the Original U.S. Borrower loaned $33,294,000 of proceeds of the McMinn County pollution control bonds to Calhoun Newsprint Company as evidenced by an
intercompany note payable to the Original U.S. Borrower; and 
  

 8 

 (b) Calhoun Newsprint Company loaned such proceeds back to the Original U.S. Borrower as evidenced by an
intercompany note payable to Calhoun Newsprint Company and secured by the Original U.S. Borrower’s intercompany note receivable referred to in clause (a). 
 “Bowater Guaranteed Obligations” has the meaning assigned thereto in Section 11.1. 
 “Business Day” means: 
 (a)
for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal holiday on which banks in New York, New York, Toronto, Ontario and Montreal, Québec are open for the conduct of their
commercial banking business; and 
 (b) with respect to all notices and determinations in connection with, and payments of principal and
interest on, any LIBOR Rate Loan, any day that is a Business Day described in clause (a) and that is also a day for trading by and between banks in deposits for the applicable Permitted Currency in the London interbank market or any
other applicable offshore interbank market for such Permitted Currency. 
 “Calculation Date” means each date that is ten
(10) Business Days after the end of each fiscal quarter of the Original U.S. Borrower. 
 “Canadian Dollar” or
“C$” means, at any time of determination, the lawful currency of Canada. 
 “Canadian Employee Benefit Plan”
means (a) any employee benefit plan that is maintained for the benefit of employees or former employees of the Borrower or any of its Domestic Subsidiaries registered in accordance with the ITA or other Applicable Law which the U.S. Borrower or
any of its Subsidiaries sponsors, maintains, or to which it makes, is making, or is obligated to make, contributions or (b) any Canadian Pension Plan or Canadian Multiemployer Plan that has at any time within the preceding six (6) years
been maintained for the employees of the U.S. Borrower or any of its Subsidiaries, and shall not include any Employee Benefit Plan. 
 “Canadian Fixed Asset Mortgages” means, collectively, those certain mortgages, hypothecs, deeds of trust, security agreements, subordination agreements or other real property security documents encumbering the Canadian
Fixed Assets located in (a) Thunder Bay, Ontario, (b) Gatineau, Quebec and (c) Dolbeau, Quebec, in each case, executed by the applicable Credit Party in favor of the Administrative Agent, for the ratable benefit of the Secured
Parties, as amended, restated, supplemented or otherwise modified from time to time in form and substance reasonably satisfactory to the Administrative Agent. 
 “Canadian Fixed Assets” means any Fixed Assets that are located in Canada and are owned by the Borrower or any Domestic Subsidiary thereof. 
  

 9 

 “Canadian GAAP” means generally accepted accounting principles in Canada, that are
applicable to the circumstances as of the date of determination, consistently applied. 
 “Canadian Multiemployer Plan”
means a “multi-employer pension plan” as defined by Applicable Laws and registered in accordance with the ITA or other Applicable Laws and as to which the U.S. Borrower or any of its Subsidiaries is making, or is accruing an obligation to
make, or has accrued an obligation to make, contributions within the preceding six (6) years, and shall not include any Multiemployer Plan. 
 “Canadian Pension Plan” means any Canadian Employee Benefit Plan, other than a Canadian Multiemployer Plan, which is registered in accordance with the ITA or other Applicable Law and which (a) is maintained for the
employees of the U.S. Borrower or any of its Subsidiaries or (b) has at any time within the preceding six (6) years been maintained for the employees of the U.S. Borrower or any of its Subsidiaries which the U.S. Borrower or any of its
Subsidiaries sponsors, maintains, or to which it makes, is making or is obligated to make, contributions, and shall not include any Pension Plan. 
 “Canadian Prime Rate” means, 
 (a) with respect to Revolving Credit Loans denominated in Canadian Dollars, at any
time, the greater of (i) the rate of interest per annum announced by the Administrative Agent from time to time (and in effect on such day) as its prime rate for Canadian Dollar commercial loans made in Canada, as adjusted automatically from
time to time and without notice to the Borrower upon change by the Administrative Agent and (ii) one percent (1%) plus the one (1) month CDOR Rate from time to time (and in effect on such day) as advised by the Administrative
Agent to the Borrower from time to time pursuant hereto; and 
 (b) with respect to Swingline Loans denominated in Canadian Dollars, at any
time, the greater of (i) the rate of interest per annum announced by the Swingline Lender from time to time (and in effect on such day) as its prime rate for Canadian Dollar commercial loans made in Canada, as adjusted automatically from time
to time and without notice to the Borrower upon change by the Swingline Lender and (ii) one percent (1%) plus the one (1) month CDOR Rate from time to time (and in effect on such day) as advised by the Swingline Lender to the
Borrower from time to time pursuant hereto. 
 The parties hereto acknowledge that the rate announced publicly by the Administrative Agent or
the Swingline Lender, as applicable, as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks. 
 “Canadian Prime Rate Loan” means any Loan made to the Borrower in Canadian Dollars which bears interest based upon the Canadian Prime
Rate as provided in Section 4.1(a). 
 “Canadian Pro Rata Percentage” means, as of any date of determination,
the percentage obtained by the following formula: 
 (a) the aggregate Commitment (less the Additional Credit Commitment) applicable to all
Lenders as of 11:00 a.m. on such date of determination 
  

 10 

 divided by  
 (b) the sum of (i) the aggregate Commitment (less the Additional Credit Commitment) applicable to all Lenders as of 11:00 a.m. on such date of determination plus (ii) the aggregate U.S. Commitment
applicable to all U.S. Lenders as of 11:00 a.m. on such date of determination. 
 “Capital Asset” means, with respect to the
U.S. Borrower and its Subsidiaries, any asset that should, in accordance with GAAP, be classified and accounted for as a capital asset on a Consolidated balance sheet of the U.S. Borrower and its Subsidiaries. 
 “Capital Expenditures” means, with respect to the U.S. Borrower and its Subsidiaries for any period, the aggregate cost of all Capital
Assets acquired by the U.S. Borrower and its Subsidiaries during such period, as determined in accordance with GAAP. 
 “Capital
Lease” means any lease of any property by the U.S. Borrower or any of its Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and accounted for as a capital lease on a Consolidated balance sheet of the U.S. Borrower
and its Subsidiaries. 
 “Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case of
an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited),
(d) in the case of a limited liability company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person. 
 “Cash Equivalents” means, collectively: 
 (a) marketable obligations issued or unconditionally guaranteed by the United States, Canada or any agency thereof maturing within two hundred seventy
(270) days from the date of acquisition thereof; 
 (b) commercial paper maturing no more than two hundred seventy (270) days from
the date of creation thereof and currently having the highest rating obtainable from either S&P, Moody’s or DBRS; 
 (c)
certificates of deposit, time deposits and bankers’ acceptances maturing no more than two hundred seventy (270) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States or Canada,
each having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of “A” or better by a nationally recognized rating agency; provided that the aggregate amount invested in such
certificates of deposit shall not at any time exceed $5,000,000 for any one such certificate of deposit and $10,000,000 for any one such bank; 
 (d) repurchase obligations for underlying securities of the types described in, and satisfying the requirements specified in, clauses (a) and (c) above entered into with any bank satisfying the requirements specified
in clause (c) above; 
  

 11 

 (e) demand deposit accounts maintained in the ordinary course of business; and 
 (f) (i) money market mutual or similar funds which (A) invest solely in assets of the types described in clauses (a) through
(e) above, without regard to the limitations as to the maturity of such obligations, bankers’ acceptances, time deposits, certificates of deposit, repurchase agreements or commercial paper set forth above, (B) are rated at
least “AAm” or “AAmg” or their equivalent by both S&P and Moody’s, provided that there is no “r-highlighter” affixed to such rating and (C) comply with Rule 2a-7 of the Investment Company Act of
1940, as amended; and 
 (ii) the money market fund called Columbia Cash Reserves, so long as Columbia Cash Reserves continues
to buy only “first tier” securities as defined by Rule 2a-7 of the Investment Company Act of 1940, as amended. 
 “Cash
Management Arrangement” means any cash management arrangement (a) entered into by (i) any Credit Party (other than the U.S. Borrower) and (ii) any Lender or any Affiliate thereof at the time such cash management arrangement
was entered into, as counterparty and (b) which has been designated by such Lender or such Affiliate, by notice to the Administrative Agent and the Borrower no later than thirty (30) days after the execution and delivery of the agreements
governing such cash management arrangement, as a Cash Management Arrangement. The designation of any cash management arrangement as a Cash Management Arrangement hereunder shall not create in favor of the Lender or Affiliate thereof that is a party
thereto any rights in connection with the management or release of any Collateral or of the Obligations of any Credit Party under any Loan Document. For avoidance of doubt, all cash management arrangements in existence on the Tenth Amendment
Effective Date between any Credit Party and any Lender or an Affiliate thereof shall constitute Cash Management Arrangements hereunder. 
 “CCQ” means the Civil Code of Québec as in effect in the Province of Québec, as amended or modified from time to time. 
 “CDOR Rate” means, on any day, with respect to a particular term as specified herein, the annual rate of discount or interest which is the arithmetic average of the discount rates (rounded upwards to
the nearest multiple of 0.01%) for bankers’ acceptances denominated in Canadian Dollars for such term and face amount identified as such on the Reuters Screen CDOR Page at approximately 10:00 a.m. (Toronto time) on such day, or if such day is
not a Business Day, then on the immediately preceding Business Day (as adjusted by the Administrative Agent after 10:00 a.m. (Toronto time) to reflect any error in any posted rate or in the posted average annual rate). If the rate does not appear on
the Reuters Screen CDOR Page as contemplated above, then the CDOR Rate on any day shall be calculated by the Administrative Agent as the arithmetic average of the discount rates (rounded upwards to the nearest multiple of 0.01%) for bankers’
acceptances denominated in Canadian Dollars for such term and face amount of, and as quoted by, the Schedule I Reference Banks, as of 10:00 a.m. (Toronto time) on that day, or if that day is not a Business Day, then on the immediately preceding
Business Day. Each calculation by the Administrative Agent of the CDOR Rate shall be binding and conclusive for all purposes, absent manifest error. 
  

 12 

 “Change in Control” means an event or series of events by which (a) except in the
case of the conversion to Capital Stock of the April 2008 Convertible Indebtedness (as to which this clause (a) shall not apply), any person or group of persons (within the meaning of Section 13(d) of the Securities Exchange
Act of 1934, as amended) shall obtain ownership or control in one or more series of transactions of more than thirty-five percent (35%) of the Capital Stock or thirty-five percent (35%) of the voting power of the Parent entitled to vote in
the election of members of the board of directors of the Parent, (b) after giving effect to the conversion to Capital Stock of the April 2008 Convertible Indebtedness and solely in connection therewith, any person or group of persons (within
the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership or control in one or more series of transactions of fifty percent (50%) or more of the Capital Stock or fifty percent
(50%) or more of the voting power of the Parent entitled to vote in the election of members of the board of directors of the Parent, (c) during any period of twenty-five (25) consecutive calendar months, a majority of the members of
the board of directors of the Parent cease to be composed of Continuing Directors, (d) there shall have occurred under any indenture or other instrument evidencing any Indebtedness of the U.S. Borrower or any of its Subsidiaries in excess of
$25,000,000 any “change in control” or similar provision (as set forth in the indenture, agreement or other evidence of such Indebtedness) obligating the U.S. Borrower or any of its Subsidiaries to repurchase, redeem or repay all or any
part of such Indebtedness or Capital Stock provided for therein (provided that if such obligation is contingent on any other event or circumstance, then such “change in control” shall not constitute a Change in Control hereunder
unless such other event or circumstance also has occurred or exists), (e) the Parent shall cease to own one hundred percent (100%) of the Capital Stock of the Original U.S. Borrower, (f) the Original U.S. Borrower shall cease to own,
directly or indirectly, one hundred percent (100%) of the Capital Stock of the Borrower or (g) the Parent shall cease to own one hundred percent (100%) of the Capital Stock of any New U.S. Borrower. 
 For the purposes hereof, “Continuing Directors” means, during any period of twenty-five (25) consecutive calendar months, individuals
(i) who were members of the board of directors on the first day of such period, (ii) whose election or nomination to the board of directors was approved by individuals who comprised a majority of the board of directors on the first day of
such period or (iii) whose election or nomination to the board of directors was approved by (A) individuals who were members of the board of directors on the first day of such period or (B) individuals whose election or nomination to
the board of directors was approved by a majority of the board of directors on the first day of such period; provided that in each case such individuals referenced in clause (A) and clause (B) constituted a majority of
the board of directors at the time of such election or nomination. 
 “Change in Law” means the occurrence, after the date
of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by
any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 
 “Closing Date” means May 31, 2006. 
  

 13 

 “Code” means the Internal Revenue Code of 1986, and the rules and regulations
thereunder, each as amended or modified from time to time. 
 “Collateral” means the collateral security for the Obligations
and/or the U.S. Obligations (as the case may be) pledged or granted pursuant to the Security Documents. 
 “Collateral
Agreement” means the collateral agreement dated as of the Closing Date executed by the Credit Parties in favor of the Administrative Agent, for the benefit of itself and the other Secured Parties, substantially in the form of Exhibit
I, as amended, restated, supplemented or otherwise modified from time to time. 
 “Combination” means the combination of
the Original U.S. Borrower with Abitibi-Consolidated Inc., with the Parent as a common holding company, pursuant to the terms of the Combination Agreement. 
 “Combination Agreement” means that certain Combination Agreement and Agreement and Plan of Merger dated as of January 29, 2007 among the Parent, Abitibi-Consolidated Inc., the Original U.S.
Borrower, Alpha-Bravo Merger Sub Inc., a Delaware corporation, and Bowater Canada, Inc., as the same may be amended, modified or supplemented from time to time. 
 “Commitment” means (a) as to any Lender, the obligation of such Lender to make Extensions of Credit to the Borrower hereunder in an aggregate principal amount at any time outstanding not
to exceed the amount set forth opposite such Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all Lenders to
make Extensions of Credit, as such amount may, subject to Section 14.2(b)(ii), be modified at any time or from time to time pursuant to the terms hereof. The Commitment of all the Lenders on the Closing Date shall be $165,000,000, the
Commitments of all the Lenders on the Sixth Amendment Effective Date shall be $112,500,000, the Commitments of all Lenders on the Seventh Amendment Effective Date shall be $143,750,000, the Commitments of all Lenders on the Tenth Amendment Effective
Date shall be $141,177,293, and the Commitments of all Lenders on the Eleventh Amendment Effective Date shall be $163,893,053. 
 “Commitment Percentage” means, as to any Lender at any time, the ratio of (a) the amount of the Commitment (other than the Additional Credit Commitment) of such Lender to (b) the Commitments (other than the
Additional Credit Commitment) of all the Lenders; provided that at any time other than during a Reallocation Period, the Commitment Percentage of the Swingline Lender with respect to Swingline Loans and the Swingline Commitment shall be one hundred
percent (100%) and the Commitment Percentage of all other Lenders with respect to Swingline Loans and the Swingline Commitment shall be zero percent (0%); provided further that, at any time during a Reallocation Period, the Commitment
Percentage of the Lenders with respect to that portion of the outstanding Swingline Loans required to be refunded, or participated, pursuant to Section 2.2 shall be equal to the ratio of (x) the amount of the Commitment (other than
the Additional Credit Commitment) of such Lender to (y) the Commitments (other than the Additional Credit Commitment) of all the Lenders. 
  

 14 

 “Consolidated” means, when used with reference to financial statements or financial
statement items of any Person, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP; provided, however, that, when used with respect to the U.S. Borrower,
“Consolidated” shall include the Original U.S. Borrower and its Subsidiaries (other than the Abitibi Entities) combined with each New U.S. Borrower and its Subsidiaries (if any). 
 “Consolidated Adjusted EBITDA” means, for any period, the sum for the U.S. Borrower and its Consolidated Subsidiaries (determined on a
Consolidated basis, without duplication, in accordance with GAAP) of the following: (a) Consolidated EBITDA for such period plus (b) any net gain on any Asset Disposition during such period minus (c) any net loss on any
Asset Disposition during such period; provided that, for purposes of this Agreement, Consolidated Adjusted EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise
reasonably acceptable to the Administrative Agent, to include or exclude, as applicable, as of the first day of any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset Disposition closed
during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(h)) of assets having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of $50,000,000. 
 “Consolidated EBITDA” means, for any period, the sum for the U.S. Borrower and its Consolidated Subsidiaries (determined on a
Consolidated basis, without duplication, in accordance with GAAP) of the following: 
 (a) Consolidated Net Income for such period,

 plus 
 (b) the sum of the following to the extent deducted in determining Consolidated Net Income for such period: 
 (i)
income taxes for such period (or minus, to the extent added in determining Consolidated Net Income for such period, income tax benefit for such period); 
 (ii) amortization, depreciation, depletion and other non-cash charges for such period; 
 (iii) Consolidated Interest Expense for such period; 
 (iv) any extraordinary charges for such period; 
 (v) any unusual or non-recurring charges for such period up to an amount not to exceed five percent (5%) of the Consolidated EBITDA
of the U.S. Borrower and its Subsidiaries (as calculated without giving effect to this clause (v) or clause (vi) below); 
 (vi) any cost savings and synergies associated with a Permitted Acquisition not to exceed five percent (5%) of the Consolidated EBITDA of the U.S. Borrower and its Subsidiaries (as calculated without giving
effect to this clause (vi) or clause (v) above); and 
  

 15 

 (vii) any net loss on any Asset Disposition during such period, 
 less 
 (c) the sum of
the following to the extent included in determining Consolidated Net Income for such period: 
 (i) the aggregate amount of
interest income for such period; 
 (ii) any extraordinary gains during such period; 
 (iii) any unusual or non-recurring gains during such period; and 
 (iv) any net gain on any Asset Disposition during such period; 
 provided that, for purposes of this Agreement, Consolidated EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise reasonably acceptable
to the Administrative Agent and the U.S. Administrative Agent, to include or exclude, as applicable, as of the first day of any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset
Disposition closed during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(h)) of assets having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of
$50,000,000. 
 “Consolidated Interest Expense” means, with respect to the U.S. Borrower and its Consolidated Subsidiaries
for any period, (a) the gross interest expense (including, without limitation, interest expense attributable to Capital Leases and plus the net amount payable (or minus the net amount receivable) under any Interest Rate Contracts
of the U.S. Borrower and its Consolidated Subsidiaries), plus (b) the aggregate amount of all cash distributions or dividends paid by the U.S. Borrower and its Consolidated Subsidiaries to the Parent pursuant to, and in accordance with,
Section 10.6(j) , all determined for such period on a Consolidated basis without duplication, in accordance with GAAP. 
 “Consolidated Net Income” means, with respect to the U.S. Borrower and its Consolidated Subsidiaries, for any period of determination, the net income (or loss) of the U.S. Borrower and its Consolidated Subsidiaries for such
period, determined on a Consolidated basis in accordance with GAAP. 
 “Consolidated Senior Secured Leverage Ratio” means,
as of any date of determination, the ratio of (a) Consolidated Total Senior Secured Indebtedness on such date to (b) the sum, without duplication, of (i) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters
ending on or immediately prior to such date plus (ii) the amount of Specified Non-Recurring Charges taken during the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date. 
  

 16 

 “Consolidated Subsidiary” means, for any Person, each Subsidiary of such Person (whether
now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of such Person in accordance with GAAP. 
 “Consolidated Total Indebtedness” means, as of any date of determination, without duplication, all Indebtedness (excluding
clause (h) of the definition thereof) of the U.S. Borrower and its Consolidated Subsidiaries. 
 “Consolidated Total
Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date to (b) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately
prior to such date. 
 “Consolidated Total Senior Secured Indebtedness” means, 
 (a) for purposes of determining the Consolidated Senior Secured Leverage Ratio, as of any date of determination with respect to the U.S. Borrower and its
Consolidated Subsidiaries on a Consolidated basis, without duplication, the sum of (i) all outstanding U.S. Extensions of Credit (including, without limitation, each outstanding letter of credit and each outstanding swingline loan) under the
U.S. Credit Facility plus (ii) all outstanding Extensions of Credit (including, without limitation, each outstanding Letter of Credit and each outstanding Swingline Loan) under the Credit Facility plus (iii) all other
outstanding Indebtedness of the U.S. Borrower and its Consolidated Subsidiaries which is secured by any assets of the U.S. Borrower and its Consolidated Subsidiaries other than any Hedging Agreement; and 
 (b) for all other purposes, as of any date of determination with respect to the U.S. Borrower and its Consolidated Subsidiaries on a Consolidated basis,
without duplication, the sum of (i) all outstanding U.S. Extensions of Credit (including, without limitation, each outstanding letter of credit and each outstanding swingline loan) under the U.S. Credit Facility plus (ii) all other
outstanding Indebtedness (other than any Hedging Agreement) of the U.S. Borrower and its Consolidated Subsidiaries which is secured by a Lien on the U.S. Coverage Assets. 
 “Consultants” means a third-party consultant hired by the U.S. Administrative Agent, on behalf of the Secured Parties and the U.S. Secured Parties; provided, that if the Administrative Agent or
the U.S. Administrative Agent shall determine in its reasonable discretion that a separate consultant or consultants should be hired by such Person for the benefit of the Secured Parties or the U.S. Secured Parties, as the case may be,
“Consultants” as defined in this Agreement shall refer collectively to all of the consultants hired by the Administrative Agent and the U.S. Administrative Agent. 
 “Conversion Date” means March 31, 2009; provided that, if on or prior to March 31, 2009, the Specified Abitibi
Indebtedness is repurchased, repaid, exchanged (provided that the maturity date of any Indebtedness exchanged therefor is later than April 30, 2009) or redeemed in full, or the maturity date thereof or the maturity date of any
indebtedness exchanged therefor is, in any case, extended to a date later than April 30, 2009, or any combination thereof, the Conversion Date shall automatically and without further action be extended to April 29, 2009. 
  

 17 

 “Coosa Pines IDB” has the meaning set forth in the definition of Supplemental New U.S.
Borrower Mortgage. 
 “Coverage Assets” means all accounts receivable (excluding any intercompany accounts receivable) and
all inventory of the Borrower and its Domestic Subsidiaries; provided that for purposes of calculating the Asset Coverage Amount, the net book value of inventory constituting Coverage Assets shall not, at any time, exceed $170,000,000.

 “Credit Facility” means, collectively, the Revolving Credit Facility, the Swingline Facility, the L/C Facility, the EDC
Credit Facility and the Fairfax Credit Facility. 
 “Credit Insurance Policy” means a foreign accounts receivable credit
insurance policy as of any date issued by an insurer reasonably acceptable to the Administrative Agent and the U.S. Administrative Agent, containing terms and provisions (including, without limitation, coverage amounts, limits, deductibles and
exclusions from coverage) reasonably acceptable to the Administrative Agent and the U.S. Administrative Agent. 
 “Credit
Parties” means, collectively, the Borrower and the Guarantors. 
 “DBRS” means DBRS Limited and any successor
thereto. 
 “Debt Issuance” means the issuance by the U.S. Borrower or any of its Subsidiaries of Indebtedness permitted
pursuant to Section 10.1(h) or 10.1(m) or otherwise consented to by the requisite Lenders pursuant to Section 14.2. 
 “Debt Issuance Reduction Amount” has the meaning set forth in Section 8.2(b)(ii). 
 “Default” means any of the events specified in Section 12.1 which with the passage of time, the giving of notice or any other condition, would constitute an Event of Default. 
 “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Revolving Credit Loans, participations in L/C
Obligations or participations in Swingline Loans required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless such amount is the subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a
bankruptcy, receivership or insolvency proceeding. 
 “Designated Available Foreign Account Amount” means, as of any date of
determination of the Borrowing Base or the U.S. Borrowing Base, the amount of Eligible Foreign Accounts designated by the Borrower in the Borrowing Base Certificate delivered as of such date. 
 “Designated U.S. Available Foreign Account Amount” means, as of any date of determination of the Borrowing Base or the U.S. Borrowing
Base, the amount of “Eligible Foreign Accounts” (as defined in the U.S. Credit Agreement) designated by the Original U.S. Borrower in the U.S. Borrowing Base Certificate delivered as of such date. 
  

 18 

 “Determination Time” means (a) with respect to Extensions of Credit expressed in
Canadian Dollars, each of (i) approximately 11:00 a.m. (Toronto time) two (2) Business Days before such Extension of Credit is made or issued (or to be made or issued), as applicable, and (ii) approximately 11:00 a.m. (Toronto time)
two (2) Business Days before each date on which such Extension of Credit is continued pursuant to Section 4.2 or extended (or to be continued or extended), as applicable, (b) with respect to the second proviso in the definition
of Overadvance Amount, approximately 11:00 a.m. (Toronto time) on the date of delivery of the certificate delivered pursuant to Section 8.10(f)(i)(J) or (c) at such times as may be reasonably determined by the Administrative Agent
(not more frequently than quarterly). 
 “Discount Note” means a non-interest bearing promissory note denominated in
Canadian Dollars issued by the Borrower to a Non-BA Lender to evidence a BA Equivalent Loan. 
 “Disputes” means any
dispute, claim or controversy arising out of, connected with or relating to this Agreement or any other Loan Document, between or among parties hereto and to the other Loan Documents. 
 “Document” has the meaning specified in Section 1.1 of the Collateral Agreement. 
 “Documentation Agent” means Wachovia Bank, National Association, in its capacity as Documentation Agent hereunder. 
 “Dollar Amount” means, as of any date of determination, (a) with respect to each Extension of Credit or other sum expressed in
Dollars, the amount thereof and (b) with respect to each Extension of Credit or other sum expressed in Canadian Dollars, the amount of Dollars which is equivalent to the principal amount of such Extension of Credit or other sum, at the most
favorable spot exchange rate reasonably determined by the Administrative Agent as of the most recent Determination Time. 
 “Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the United States. 
 “Domestic Subsidiary” means any Subsidiary of the Borrower organized under the laws of Canada or any province or political subdivision thereof. 
 “EDC” means Export Development Canada. 
 “EDC Credit Commitment” means
Eighteen Million Three Hundred Thousand Dollars ($18,300,000). 
 “EDC Credit Facility” means the loan facility established
pursuant to Section 2.3. 
 “EDC Credit Lender” means any Person in its capacity as a Lender under the EDC
Credit Facility. 
  

 19 

 “EDC Credit Loan” means the loan made pursuant to the EDC Credit Facility. 

“EDC Credit Note” means the promissory note made by the Borrower in favor of the EDC Credit Lender evidencing the EDC Credit Loans
made by the EDC Lender in a form acceptable to the EDC Credit Lender, and any amendments, supplements and modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.

 “EDC Credit Termination Date” means the earlier of (a) the Maturity Date and (b) the date upon which the
Exchange Offer is completed, closed and settled to the satisfaction of the Administrative Agent, the U.S. Administrative Agent and the Required Lenders. 
 “Eleventh Amendment” means that certain Eleventh Amendment and Consent dated as of February 27, 2009 by and among the Borrower, the Guarantors, EDC, Fairfax and the Administrative Agent (on
behalf of itself and the Lenders and the U.S. Lenders party thereto). 
 “Eleventh Amendment Effective Date” means
February 27, 2009. 
 “Eligible Accounts” means, at any time, Accounts of the Borrower and its Consolidated
Subsidiaries which the Administrative Agent determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, are eligible as the basis for the extension of Revolving Credit Loans and Swingline Loans and the
issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible Accounts shall not include any Account: 
 (a) that does not arise out of actual and bona fide sales of goods or rendering of services in the ordinary course of the Borrower’s or the relevant Subsidiary’s business, which transactions are completed in
accordance with the terms and provisions of any documents related thereto; 
 (b) that would otherwise be an Eligible Domestic Account, but
is payable other than in Dollars or Canadian Dollars, or that is otherwise on terms other than those normal or customary in the Borrower’s or the relevant Subsidiary’s business; 
 (c) that would otherwise be an Eligible Foreign Account, but is payable other than in Dollars, Canadian Dollars, Euros or Pounds Sterling or that is
otherwise on terms other than those normal or customary in the Borrower’s or the relevant Subsidiary’s business; 
 (d) that is
owing from an account debtor where the account debtor or any officer or employee of the account debtor with respect to such Account is an officer, employee, agent or other Affiliate of the Borrower or any Subsidiary; 
 (e) that would otherwise be an Eligible Domestic Account, but is unpaid more than ninety (90) days past original invoice date or more than sixty
(60) days past the original due date; 
  

 20 

 (f) that would otherwise be an Eligible Foreign Account, but is unpaid more than one hundred eighty
(180) days past original invoice date or more than sixty (60) days past the original due date; 
 (g) of any account debtor where
fifty percent (50%) or more of the Accounts owing from such account debtor are not deemed Eligible Accounts; 
 (h) that is owing by an
account debtor to the extent the aggregate amount of Accounts owing from such account debtor and its Affiliates to the Borrower or any of its Subsidiaries exceeds ten percent (10%) of the aggregate Eligible Accounts, but only the amount in
excess thereof shall be ineligible; 
 (i) that is owing from any Person that (i) has disputed liability for any Account owing from such
Person or (ii) has otherwise asserted any claim, demand or liability against the Borrower or any of its Subsidiaries, whether by action, suit, counterclaim or otherwise; 
 (j) that is owing from any Person that shall take or be the subject of any action or proceeding of a type described in Section 12.1(i) or
Section 12.1(j); 
 (k) that is owing from any account debtor not deemed creditworthy at any time by the Administrative Agent in
good faith; 
 (l) with respect to which any cheque or other instrument of payment has been returned uncollected for any reason; 

(m) which is evidenced by a promissory note, chattel paper or instrument; 
 (n) that is owing by an account debtor located in any jurisdiction which requires filing of a “Notice of Business Activities Report” or other
similar report in order to permit the Borrower or its applicable Subsidiary to seek judicial enforcement in such jurisdiction of payment of such Account, unless the Borrower or its applicable Subsidiary has filed such report or qualified to do
business in such jurisdiction; 
 (o) (i) owing from any Person that is also a supplier to or creditor of the Borrower or any of its
Subsidiaries or (ii) representing any manufacturer’s or supplier’s credits, discounts, incentive plans or similar arrangements entitling the Borrower or any of its Subsidiaries to discounts on future purchase therefrom; 
 (p) that is owing by an account debtor whose chief executive office with respect to such Account is located outside Canada or the United States, other
than Eligible Foreign Accounts; 
 (q) that (i) is not evidenced by an invoice or other documentation satisfactory to the Administrative
Agent which has been sent to the account debtor, (ii) is contingent upon the Borrower’s or its Subsidiary’s completion of any further performance, (iii) represents a progress billing, or (iv) arises out of sales on a
bill-and-hold, guaranteed sale, sale-or-return, sale on approval, consignment, cash on delivery basis or subject to any right of return, repurchase, setoff or charge back; 
  

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 (r) that is owing from an account debtor that is an agency, department or instrumentality of the United
States or Canada or any state or province thereof or that is an agency, department or instrumentality of any country other than the United States or Canada or any state, territory, province or other political subdivision of a country other than the
United States or Canada unless the Borrower or its relevant Subsidiary shall have satisfied the requirements of the Assignment of Claims Act of 1940 in the case of Accounts owing from any agency, department or instrumentality of the United States,
the Financial Administration Act (Canada) in the case of Accounts owing from an agency, department or instrumentality of Canada and any similar state or provincial legislation or any similar foreign legislation and the Administrative Agent is
satisfied as to the absence of setoffs, counterclaims and other defenses on the part of such account debtor; 
 (s) with respect to which any
representation and warranty set forth in any Loan Document applicable to Accounts is not true and correct; 
 (t) in respect of which the
Collateral Agreement or any Quebec Collateral Document, after giving effect to the related filings of financing statements that have then been made, if any, does not or has ceased to create a valid and perfected first priority lien or security
interest in favor of the Administrative Agent, on behalf of the Secured Parties, securing the Obligations or which is subject to any Lien except those permitted under this Agreement which does not have priority over the Liens of the Administrative
Agent hereunder (which are subject to an intercreditor agreement in form and substance satisfactory to the Administrative Agent between the holder of such Lien and the Administrative Agent); 
 (u) that is owing to a non-Wholly Owned Subsidiary; 
 (v) that is, in accordance with GAAP, classified as a contra-account which offset other assets on the balance sheet of the Borrower or its Subsidiaries; 
 (w) that is owing by an account debtor located in an Excluded Country; 
 (x) that is owing by an account
debtor whose total indebtedness to the Borrower or any of its Subsidiaries exceeds the credit limit with respect to such account debtor as determined by the Borrower or any of its Subsidiaries from time to time, to the extent such credit limit as to
any account debtor is established consistent with the practices of the Borrower in effect on the Tenth Amendment Effective Date (but the portion of the Accounts not in excess of such credit limit may be deemed Eligible Accounts); or 
 (y) which the Administrative Agent otherwise determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender,
is unacceptable for any reason whatsoever. 
 “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a
Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative 

  

 22 

 
Agent, (ii) if required by Section 14.11(b), the Swingline Lender, (iii) if required by Section 14.11(b), each Issuing Lender and
(iv) unless a Default or Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed). Notwithstanding the foregoing, “Eligible Assignee” shall not include the U.S.
Borrower or any of the U.S. Borrower’s Affiliates or Subsidiaries. 
 “Eligible Domestic Accounts” means Eligible
Accounts owing by an account debtor whose chief executive office with respect to such Accounts is located in Canada or in the United States. 
 “Eligible Foreign Accounts” means, so long as the Borrower maintains the Credit Insurance Policy, Eligible Accounts owing by an account debtor whose chief executive office with respect to such Accounts is located outside
Canada and the United States. 
 “Eligible Inventory” means, at any time, Inventory of the Borrower and its Consolidated
Subsidiaries which the Administrative Agent determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, are eligible as the basis for the extension of Revolving Credit Loans and Swingline Loans and the
issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible Inventory shall not include any Inventory: 
 (a) that is located on leaseholds as to which the lessor has not entered into a collateral access agreement providing the Administrative Agent with the right to receive notices of default, the right to repossess such
Inventory at any time and such other rights as may be requested by the Administrative Agent, unless the Administrative Agent has established acceptable Reserves against such Inventory in lieu of obtaining a collateral access agreement; 

(b) that is slow moving, obsolete, unusable, unmerchantable, damaged, defective, unfit for sale, perishable or otherwise unavailable for sale;

 (c) consisting of promotional, marketing, packaging or shipping materials and supplies, prototypes, displays or display items,
bill-and-hold goods, goods held on consignment or goods not of a types held for sale in the ordinary course of business; 
 (d) that fails to
meet all standards imposed by any Governmental Authority having regulatory authority over such Inventory or its use or sale; 
 (e) that is
subject to any licensing, patent, royalty, trademark, trade name or copyright agreement with any third party unless the Administrative Agent is satisfied that it may sell or otherwise dispose of such Inventory without (i) infringing the rights
of such party, (ii) violating any contract with such party or (iii) incurring any liability with respect to payment of royalties other than royalties incurred pursuant to the sale of such Inventory under the current licensing agreements;

 (f) that is subject to a Lien of any other Person (unless such Person has entered into an intercreditor agreement, in form and substance
satisfactory to the Administrative Agent which subordinates such Lien to the Liens of the Administrative Agent); 
  

 23 

 (g) that is located outside Canada; 
 (h) that is not in the possession of or under the sole control of the Borrower or any of its Subsidiaries (including any Inventory that is owned in part
by another Person); 
 (i) with respect to which any representation and warranty set forth in any Loan Document applicable to Inventory is
not true and correct; 
 (j) in respect of which the Collateral Agreement or any Quebec Collateral Document, after giving effect to the
related filings of financing statements that have then been made, if any, does not or has ceased to create a valid and perfected first priority lien or security interest in favor of the Administrative Agent, on behalf of the Secured Parties,
securing the Obligations; 
 (k) that is located in any third party warehouse or is in the possession of a bailee (other than a third party
processor) and is not evidenced by a Document, unless such warehouseman or bailee has delivered to the Administrative Agent a collateral access agreement in form and substance acceptable to the Administrative Agent and such other documentation as
the Administrative Agent may require or the Administrative Agent has established acceptable Reserves against such Inventory in lieu of obtaining a collateral access agreement; 
 (l) which is being processed offsite at a third party location or outside processor, or is in transit to or from said third party location or outside
processor; 
 (m) which is not reflected in a current perpetual inventory report of the Borrower delivered to the Administrative Agent
pursuant to Section 7.1(j); 
 (n) for which reclamation rights have been asserted by the seller; 
 (o) which is owned by any non-Wholly-Owned Subsidiary; 
 (p) that is subject to repossession under the “30-day goods” rule in the Bankruptcy and Insolvency Act (Canada) except to the extent that the applicable vendor has entered into an agreement with the
Administrative Agent in form and substance acceptable to the Administrative Agent waiving its right to repossession; or 
 (q) which the
Administrative Agent otherwise determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, is unacceptable for any reason whatsoever. 
 “Employee Benefit Plan” means (a) any employee benefit plan within the meaning of Section 3(3) of ERISA that is
maintained for employees of the U.S. Borrower or any of its Subsidiaries which the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates sponsors, maintains, or to which it makes, is making, or is obligated to make, contributions
or (b) any Pension Plan or Multiemployer Plan that has at any time within the preceding six (6) years been maintained for the employees of the U.S. Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates.

  

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 “EMU Legislation” means legislative measures of the Council of European Union for the
introduction of, change over to or operation of the euro. 
 “Environmental Claims” means any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of noncompliance or violation, investigations (other than internal reports prepared by any Person in the ordinary course of business and
not in response to any third party action or request of any kind) or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any
such Environmental Law, including, without limitation, any and all claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages, contribution, indemnification cost recovery, compensation or
injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to human health or the environment. 
 “Environmental Laws” means any and all federal, foreign, state, provincial and local laws, statutes, ordinances, codes, rules, legally binding policies, standards and regulations, permits, licenses, approvals,
interpretations and orders of courts or Governmental Authorities, relating to the protection of human health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment,
storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations thereunder, each as amended or modified from time to time. 
 “ERISA Affiliate” means any Person who together with the U.S. Borrower or any of its Subsidiaries is treated as a single employer within
the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA. 
 “Euro” means the single currency to which the Participating Member States of the European Union have converted. 
 “Event of Default” means any of the events specified in Section 12.1; provided that any requirement for passage of time, giving of notice, or any other condition, has been satisfied. 
 “Exchange Offer” means the offer by Bowater Finance II LLC to exchange all or a portion of certain Existing Notes in accordance with the
terms set forth in that certain Offering Circular regarding the Exchange Offers and Consent Solicitation dated as of February 9, 2009 (it being understood and agreed that the completion, closing and settlement (which is expected to occur on or
prior to March 16, 2009) of the Exchange Offer shall be subject to such Exchange Offer being on terms and conditions satisfactory to the Administrative Agent, the U.S. Administrative Agent and the Required Lenders). 
 “Exchangeable Shares” means those shares of Capital Stock issued by Bowater Canada, Inc. and listed on the Toronto Stock Exchange (under
stock symbol BWX) which are exchangeable at any time at the option of the holder of such shares into common stock of the Parent and which entitle the holders thereof to similar voting rights and dividend payments (on a per share basis) as those
granted to holders of the common stock of the Parent. 
  

 25 

 “Excluded Accounts” means any deposit, securities and other investments account of the
U.S. Borrower and its Subsidiaries for which the U.S. Borrower is not providing balances and/or statements as required pursuant to Section 7.1(f)(ii) and (iii). 
 “Excluded Country” means Venezuela, Guatemala and such other countries as determined by the Administrative Agent or the U.S.
Administrative Agent, in each case, in the exercise of its reasonable credit judgment (it being understood and agreed that no other country in which an account debtor is located with respect to the Accounts specified in the Borrowing Base
Certificate dated as of September 30, 2008 shall be deemed to be an Excluded Country). 
 “Excluded Taxes” means, with
respect to the Administrative Agent, any Lender, any Issuing Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by Canada or any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 4.12(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 4.11(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 4.11(a). 
 “Existing Facilities” means the collective reference to (a) the credit facility established pursuant to that certain Credit
Agreement dated as of April 22, 2004 (as amended, restated, supplemented or modified) by and among the Original U.S. Borrower and the Borrower, as borrowers, JPMorgan Chase Bank, as U.S. administrative agent, The Bank of Nova Scotia, as
Canadian administrative agent and the lenders party thereto and (b) the conduit facility established pursuant that certain Loan Agreement dated as of December 19, 2002 (as amended, restated, supplemented or modified) by and among Bowater
Funding Inc., as borrower, the Original U.S. Borrower, as initial servicer, the lenders party thereto, SunTrust Capital Markets, Inc. and Wachovia Bank, National Association, as co-agents, and SunTrust Capital Markets, Inc., as administrative agent.

 “Existing Letters of Credit” means those letters of credit existing on the Closing Date and identified on Schedule
1.1(a). 
 “Existing Notes” means the collective reference to each of the senior unsecured notes and debentures set
forth on Schedule 10.1. 
  

 26 

 “Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to
the sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then outstanding, (iii) such
Lender’s Commitment Percentage of the Swingline Loans then outstanding, (iv) the aggregate principal amount of all EDC Credit Loans made by such Lender then outstanding, and (v) the aggregate principal amount of all Fairfax Credit
Loans made by such Lender then outstanding or (b) the making of any Loan or participation in any Swingline Loan or any Letter of Credit by such Lender, as the context requires. 
 “Fairfax” means Fairfax Financial Holdings Limited. 
 “Fairfax Credit Commitment” means Twelve Million Dollars ($12,000,000). 
 “Fairfax
Credit Facility” means the loan facility established pursuant to Section 2.4. 
 “Fairfax Credit Lender” means
any Person in its capacity as a Lender under the Fairfax Credit Facility. 
 “Fairfax Credit Loan” means the loan made
pursuant to the Fairfax Credit Facility. 
 “Fairfax Credit Note” means the promissory note made by the Borrower in favor of
the Fairfax Credit Lender evidencing the Fairfax Credit Loan made by the Fairfax Credit Lender in a form acceptable to the Fairfax Credit Lender, and any amendments, supplements and modifications thereto, any substitutes therefor, and any
replacements, restatements, renewals or extension thereof, in whole or in part. 
 “Fairfax Credit Termination Date” means
the earlier of (a) the Maturity Date and (b) the date upon which the Exchange Offer is completed, closed and settled to the satisfaction of the Administrative Agent, the U.S. Administrative Agent and the Required Lenders. 
 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by federal funds brokers on such day (or, if such day is not a Business Day, for the immediately preceding Business Day), as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, the average of the quotation for such day on such transactions received by the Administrative Agent from three Federal
Funds brokers of recognized standing selected by the Administrative Agent. 
 “Fee Letter” means either (a) the
separate fee letter agreement executed by the Borrower and The Bank of Nova Scotia and/or certain of its affiliates dated May 31, 2006 or (b) the separate fee letter agreement executed by the Borrower and EDC dated February 27, 2009,
as applicable. 
 “Fiscal Year” means the fiscal year of the U.S. Borrower and its Subsidiaries ending on December 31.

  

 27 

 “Fixed Assets” means, collectively, each mill owned by the U.S. Borrower or any
Subsidiary (each, a “Mill”), the real property on which each such Mill is situated, all equipment used in connection with each such Mill and all other rights and assets used for the operation, administration and maintenance of each
such Mill. For the avoidance of doubt, the term Fixed Assets shall not include any timberlands owned by the U.S. Borrower or any of its Subsidiaries. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, Canada and
each province thereof shall be deemed to constitute a single jurisdiction. 
 “Foreign Pledge Documents” means any pledge
agreements, hypothecs, charges and other similar documents and agreements granting a Lien on the Korean Shares in favor of the Administrative Agent, for the ratable benefit of the Secured Parties. 
 “Fourth Amendment” means that certain Fourth Amendment dated as of Fourth Amendment Effective Date by and among the Borrower, the
Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto). 
 “Fourth Amendment Effective
Date” means March 31, 2008. 
 “Fifth Amendment” means that certain Fifth Amendment dated as April 30,
2008 by and among the Borrower, the Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto). 
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied. 
 “Governmental Approvals” means all authorizations, consents, approvals, permits,
licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities. 
 “Governmental
Authority” means the government of the United States, Canada or any other nation, or of any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 “Guarantors” means each Parent Guarantor, each Subsidiary Guarantor and each New U.S. Borrower. 
 “Guaranty Agreements” means, collectively, the Parent Guaranty Agreements and the Subsidiary Guaranty Agreements. 
  

 28 

 “Guaranty Obligation” means, with respect to the U.S. Borrower and its Subsidiaries,
without duplication, any obligation, contingent or otherwise, of any such Person pursuant to which such Person has directly or indirectly guaranteed any Indebtedness of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of any such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness (whether arising by virtue of partnership arrangements, by
agreement to keep well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement condition or otherwise) or (b) entered into for the purpose of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, that the term Guaranty Obligation shall not include endorsements for collection or deposit in the ordinary course
of business. 
 “Hazardous Materials” means any substances or materials (a) which are or become defined as hazardous
wastes, hazardous substances, pollutants, contaminants, chemical substances or mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or
otherwise harmful to human health or the environment and are or become regulated by any Governmental Authority, (c) the presence of which require investigation or remediation under any Environmental Law or common law, (d) the discharge or
emission or release of which requires a permit or license under any Environmental Law or other Governmental Approval, (e) which are deemed to constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighboring
properties, (f) which consist of underground or aboveground storage tanks, whether empty, filled or partially filled with any substance, or (g) which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam
insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas. 
 “Hedging Agreement” means any agreement with respect to any Interest Rate Contract, forward rate agreement, commodity swap, forward foreign exchange agreement, currency swap agreement, cross-currency rate swap agreement,
currency option agreement or other agreement or arrangement designed to alter the risks of any Person arising from fluctuations in interest rates, currency values or commodity prices, all as amended, restated, supplemented or otherwise modified from
time to time. 
 “Hedging Obligations” means all existing or future payment and other obligations owing by any Credit Party
under any Hedging Agreement (which such Hedging Agreement is permitted hereunder) with any Person that is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is executed. 
 “Immaterial Subsidiary” means: 
 (a) each QSPE; 
 (b) any Domestic Subsidiary that is not a Wholly-Owned Subsidiary to the extent that (i) there is a provision
in the organizational documents of such Domestic Subsidiary or (ii) the 

  

 29 

 
Borrower or any of its Subsidiaries is party to a legally enforceable agreement, in either case that would prohibit such Domestic Subsidiary from being a
Subsidiary Guarantor without the consent of (or the approval of directors appointed by) a third party owner of such Domestic Subsidiary; and 
 (c) any individual Domestic Subsidiary having total assets with a book value that is less than one percent (1%) of the aggregate book value of the total Consolidated assets of the U.S. Borrower and its Subsidiaries (as of the most
recent date for which financial statements have been delivered). 
 “Indebtedness” means, with respect to any Person at any
date and without duplication, the sum of the following: 
 (a) all liabilities, obligations and indebtedness for borrowed money of such
Person, including, but not limited to, obligations evidenced by bonds, debentures, notes or other similar instruments of such Person; 
 (b)
all obligations of such Person to pay the deferred purchase price of property or services (including, without limitation, all obligations under non-competition, earn-out or similar agreements in connection with an acquisition), except trade payables
and accrued obligations arising in the ordinary course of business, so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; 

(c) the Attributable Indebtedness of such Person with respect to such Person’s obligations in respect of Capital Leases and Synthetic Leases
(regardless of whether accounted for as indebtedness under GAAP); 
 (d) all Indebtedness of any other Person secured by a Lien on any asset
owned by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 
 (e) all Guaranty Obligations of such Person; 
 (f) all obligations, contingent or otherwise, of such Person in connection with letters of credit, whether or not drawn, including, without limitation, any reimbursement obligation, and bankers’ acceptances issued for the account of
such Person; 
 (g) all cash obligations of any such Person to redeem, repurchase, exchange, defease or otherwise make payments in respect of
Capital Stock of such Person, unless such redemption, repurchase, exchange, defeasance or other payment is contingent (unless such contingency has been satisfied) or is not required prior to the date that is ninety-one (91) days after the
Maturity Date; 
 (h) all Net Hedging Obligations of such Person; and 
  

 30 

 (i) the outstanding attributed principal amount under any asset securitization program of such Person.

 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a
joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Person is not legally liable therefor under Applicable Law or as a result of any legally enforceable
contractual limitation with respect to such Indebtedness. 
 “Indemnified Taxes” means Taxes and Other Taxes other than
Excluded Taxes. 
 “Insurance and Condemnation Event” means the receipt by the U.S. Borrower or any of its Subsidiaries of
any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective property or assets. 
 “Intercompany Subordination Agreement” means an Intercompany Subordination Agreement substantially in the form of Exhibit J by
and among the Administrative Agent and the applicable Credit Parties or Subsidiaries thereof party thereto. 
 “Interest
Period” has the meaning assigned thereto in Section 4.1(b). 
 “Interest Rate Contract” means any
interest rate swap agreement, interest rate cap agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or any other agreement regarding the hedging of interest rate risk exposure executed in connection with
hedging the interest rate exposure of any Person and any confirming letter executed pursuant to such agreement, all as amended, restated, supplemented or otherwise modified from time to time. 
 “Inventory” has the meaning specified in Section 1.1 of the Collateral Agreement. 
 “ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999), International Chamber of Commerce
Publication No. 590. 
 “Issuing Lender” means (a) with respect to Letters of Credit issued hereunder on or after
the Closing Date, The Bank of Nova Scotia, in its capacity as issuer thereof, or any successor thereto or any other Lender designated as an Issuing Lender by the Borrower (with reasonable prior notice of such designation by the Borrower to the
Administrative Agent) and (b) with respect to the Existing Letters of Credit, the issuers thereof as identified on Schedule 1.1(a). 
 “ITA” means the Income Tax Act (Canada), as amended or modified from time to time. 
 “Korean Fixed
Assets” means the Fixed Assets owned by the Borrower or any of its Subsidiaries and located in Mokpo, South Korea. 
 “Korean Shares” means all present and future outstanding Capital Stock issued by Bowater-Korea Co., Ltd. 
  

 31 

 “L/C Commitment” means the lesser of (a) Fifty Million Dollars ($50,000,000) and
(b) the aggregate Revolving Credit Commitments of the Lenders. 
 “L/C Facility” means the letter of credit facility
established pursuant to Article III. 
 “L/C Obligations” means at any time, an amount equal to the sum of
(a) the aggregate undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed pursuant to Section 3.5. 

“L/C Participants” means the collective reference to all of the Lenders other than (a) the applicable Issuing Lender,
(b) the Swingline Lender in its capacity as Swingline Lender and (c) the Additional Credit Lenders in their respective capacities as Additional Credit Lenders. 
 “L/C Supporting Documentation” has the meaning assigned thereto in Section 3.2. 
 “Lender” means each Person that is bound by the terms of this Agreement as a Lender (including, without limitation, the Additional Credit Lenders, each Issuing Lender and the Swingline Lender unless the context otherwise
requires) and each Person that hereafter becomes a party to this Agreement as a Lender pursuant to Section 14.11. 
 “Lending Office” means, with respect to any Lender, the office or branch of such Lender maintaining such Lender’s Extensions of Credit. 
 “Letter of Credit Application” means an application, in the form specified by the applicable Issuing Lender from time to time, requesting the applicable Issuing Lender to issue a Letter of Credit.

 “Letters of Credit” means the collective reference to letters of credit issued pursuant to Section 3.1 and
the Existing Letters of Credit. 
 “LIBOR” means the rate of interest
per annum determined on the basis of the rate for deposits in the applicable Permitted Currency in minimum amounts of at least $5,000,000 (with respect to Revolving Credit Loans denominated in Dollars) or C$5,000,000 (with respect to Revolving
Credit Loans denominated in Canadian Dollars) for a period equal to the applicable Interest Period which appears on the Reuters Page LIBOR01 (or any successor page) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the
first day of the applicable Interest Period (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for any reason, such rate does not
appear on Reuters Page LIBOR01 (or any successor page), then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in the applicable Permitted Currency in minimum
amounts of at least $5,000,000 (with respect to Revolving Credit Loans denominated in Dollars) or C$5,000,000 (with respect to Revolving Credit Loans denominated in Canadian Dollars) would be offered by first class banks in the London interbank
market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period. Each calculation by the Administrative Agent
of LIBOR shall be conclusive and binding for all purposes, absent manifest error. 
  

 32 

 “LIBOR Rate” means the rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) equal to LIBOR. Each calculation by the Administrative Agent of the LIBOR Rate shall be conclusive and binding for all purposes, absent manifest error. 
 “LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate as provided in Section 4.1(a). 
 “Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien, pledge, charge, security interest, hypothec,
hypothecation, assignment by way of security or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest
of a vendor or lessor under any conditional sale agreement, Capital Lease or other title retention agreement relating to such asset. 
 “Loan Documents” means, collectively, this Agreement, each Note, the Letter of Credit Applications, the Security Documents, the Intercompany Subordination Agreement, and each other document, instrument, certificate and
agreement executed and delivered by the Parent, the U.S. Borrower or any of their respective Subsidiaries in connection with this Agreement or otherwise referred to herein or contemplated hereby (excluding any Hedging Agreement and any agreements
with respect to any Cash Management Arrangement), all as may be amended, restated, supplemented or otherwise modified from time to time. 
 “Loans” means the collective reference to the Revolving Credit Loans, the Swingline Loans, the EDC Credit Loans and the Fairfax Credit Loans, and “Loan” means any of such Loans. 
 “Material Adverse Effect” means, with respect to the U.S. Borrower or any of its Subsidiaries, a material adverse effect on (a) the
business, assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the U.S. Borrower and its Subsidiaries, taken as a whole, or (b) the ability of any such Person to perform its obligations under the Loan
Documents to which it is a party. 
 “Material Subsidiary” means: 
 (a) each Domestic Subsidiary of the Borrower, other than the Immaterial Subsidiaries; and 
 (b) each Domestic Subsidiary that, notwithstanding the definition of Immaterial Subsidiary, is designated as a Material Subsidiary pursuant to
Section 8.10(a)(ii). 
 Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, any
Domestic Subsidiary that (i) owns a Material Subsidiary or (ii) provides a guaranty of (A) the Existing Notes, (B) any Indebtedness incurred to refinance, refund, renew or extend the Existing Notes as permitted pursuant to
Section 10.1(d) or (C) any Indebtedness permitted pursuant to Section 12.1(o)(viii), in each case, shall be a Material Subsidiary. 
  

 33 

 “Maturity Date” means the earliest of the dates referred to in Section 2.8
(subject to the extension provisions thereof). 
 “Moody’s” means Moody’s Investors Service, Inc. and any
successor thereto. 
 “Multiemployer Plan” means a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA to which the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding
six (6) years. 
 “Net Cash Proceeds” means, as applicable; 
 (a) with respect to any Asset Disposition, the gross cash proceeds received by the U.S. Borrower or any of its Subsidiaries therefrom less the sum
of the following, without duplication, (i) selling expenses incurred in connection with such Asset Disposition (including reasonable brokers’ fees and commissions, legal, accounting and other professional and transactional fees, transfer
and similar taxes and the Original U.S. Borrower’s reasonable good faith estimate of income taxes paid or payable in connection with such sale), (ii) reasonable reserves with respect to post-closing adjustments, indemnities and other
contingent liabilities established in connection with such Asset Disposition (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds), (iii) subject
to Section 8.2(b), the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness secured by a Lien on the assets (or a portion thereof) sold in such Asset Disposition, which Indebtedness is repaid with
such proceeds and (iv) the Original U.S. Borrower’s reasonable good faith estimate of cash payments required to be made within ninety (90) days of such Asset Disposition with respect to retained liabilities directly related to the
assets (or a portion thereof) sold in such Asset Disposition (provided that, to the extent that cash proceeds are not used to make payments in respect of such retained liabilities within ninety (90) days of such Asset Disposition, such
cash proceeds shall constitute Net Cash Proceeds); 
 (b) with respect to any Insurance and Condemnation Event, the gross cash proceeds
received by the U.S. Borrower or any of its Subsidiaries therefrom less the sum of the following, without duplication, (i) all fees and expenses in connection therewith and (ii) subject to Section 8.2(b), the principal
amount, premium or penalty, if any, interest and other amounts on any Indebtedness secured by a Lien on the assets (or a portion thereof) subject to such Insurance and Condemnation Event, which Indebtedness is repaid in connection therewith; and

 (c) with respect to any Debt Issuance, the gross cash proceeds received by the U.S. Borrower or any of its Subsidiaries therefrom less all
legal, underwriting and other fees and expenses incurred in connection therewith. 
 “Net Hedging Obligations” means, with
respect to any Hedging Agreement as of any date, the Termination Value of such Hedging Agreement on such date. 
  

 34 

 “Net Recovery Percentage” means, at any time, the fraction, expressed as a percentage,
(a) the numerator of which is the amount equal to the recovery in respect of Eligible Inventory at such time on a net orderly liquidation value basis as set forth in the most recent acceptable appraisal of Eligible Inventory received by the
Administrative Agent, net of operating expenses, liquidation expenses and commissions, and (b) the denominator of which is the applicable original Value of the aggregate amount of the Inventory subject to such appraisal. 
 “New U.S. Borrowers” has the meaning set forth in the introductory paragraph. 
 “New U.S. Borrower Fixed Assets” means, collectively, the New U.S. Borrower Mill Assets and any and all other real property and
equipment owned or thereafter acquired by any New U.S. Borrower or in which any New U.S. Borrower has or at any time in the future may acquire any right, title or interest, and wherever located or deemed located to the extent related to or forming a
part of the New U.S. Borrower Mill Assets; provided, that in no event shall the New U.S. Borrower Fixed Assets include any U.S. Coverage Assets. 
 “New U.S. Borrower Mill Assets” means, collectively: 
 (a) (i) that certain mill owned as of
the Fourth Amendment Effective Date by Bowater Alabama, Inc., a Subsidiary of the Original U.S. Borrower, and located in Coosa Pines, Alabama (the “Coosa Pines Mill”), along with the real property upon which the Coosa Pines Mill is
situated (as more particularly described on Schedule 1.1(c) hereto, the “Coosa Pines Mill Real Property”); 
 (ii) all equipment used in connection with the Coosa Pines Mill and located at the Coosa Pines Mill Real Property (the “Coosa Pines Mill Equipment”); and 
 (iii) all other rights and assets used for the operation, administration and maintenance of the Coosa Pines Mill Real Property;

 (b) (i) that certain mill owned (directly or beneficially) as of the Fourth Amendment Effective Date by a Subsidiary of the Original U.S.
Borrower, and located in Grenada, Mississippi (the “Grenada Mill”), along with the real property upon which the Grenada Mill is situated (as more particularly described on Schedule 1.1(c) hereto, the “Grenada Mill
Real Property”); 
 (ii) all equipment used in connection with the Grenada Mill and located at the Grenada Mill Real
Property (the “Grenada Mill Equipment”); and 
 (iii) all other rights and assets used for the operation,
administration and maintenance of the Grenada Mill Real Property; and 
 (c) all operations of the foregoing. 
 “New U.S. Borrower Mortgages” means those certain mortgages, deeds of trust, security agreements, subordination agreements or other real
property security documents encumbering the New U.S. Borrower Fixed Assets, in each case in form and substance reasonably satisfactory 

  

 35 

 
to the Administrative Agent and the U.S. Administrative Agent and executed by the applicable New U.S. Borrower in favor of the U.S. Administrative Agent, for
the ratable benefit of the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, as amended, restated, supplemented or otherwise modified from time to time. Unless specifically excluded, the Supplemental New U.S.
Borrower Mortgage shall be a New U.S. Borrower Mortgage. 
 “New U.S. Borrower Notes” has the meaning assigned thereto in
Section 10.5(h). 
 “New U.S. Borrower Transactions” means the transfer of the Capital Stock of each New U.S.
Borrower from the Original U.S. Borrower to the Parent in exchange for the New U.S. Borrower Notes, in each case, to the extent permitted pursuant to, and in accordance with the terms of, this Agreement and the U.S. Credit Agreement. 
 “New Material Subsidiary” has the meaning assigned thereto in Section 8.10. 
 “Non-BA Lender” means a Lender that cannot or does not as a matter of policy accept or purchase Bankers’ Acceptances. 

“Non-Consenting Lender” has the meaning assigned thereto in Section 2.8. 
 “Non-Fixed Assets Collateral” means any portion of the Collateral that consists of assets or property that are not Fixed Assets or
timberlands. 
 “Notes” means the collective reference to the Revolving Credit Notes, the Swingline Note, the Discount
Notes, the EDC Credit Note and the Fairfax Credit Note. 
 “Notice of Account Designation” has the meaning assigned thereto
in Section 2.5(b). 
 “Notice of Borrowing” has the meaning assigned thereto in Section 2.5(a).

 “Notice of Conversion/Continuation” has the meaning assigned thereto in Section 4.2. 
 “Notice of Prepayment” has the meaning assigned thereto in Section 2.6(e). 
 “Obligations” means, in each case, whether now in existence or hereafter arising: (a) the principal of and interest on (including
interest accruing after the filing of any bankruptcy or similar petition) the Loans, (b) the L/C Obligations, (c) all Hedging Obligations, (d) all obligations owing by any Credit Party (other than the U.S. Borrower) under any Cash
Management Arrangement and (e) all other fees and commissions (including reasonable attorneys’ fees), charges, indebtedness, loans, liabilities, financial accommodations, obligations, covenants and duties owing by the U.S. Borrower, the
Borrower or any of their respective Subsidiaries to the Lenders or the Administrative Agent, in each case under any Loan Document, with respect to any Loan or Letter of Credit, of every kind, nature and description, direct or indirect, absolute or
contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any note. 
  

 36 

 “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets
Control. 
 “Officer’s Compliance Certificate” means a certificate of the chief financial officer, the treasurer or the
assistant treasurer of each of the Borrower and the Original U.S. Borrower substantially in the form of Exhibit F. 
 “Operating Lease” means, as to any Person as determined in accordance with GAAP, any lease of property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease. 
 “Original U.S. Borrower” has the meaning assigned thereto in the introductory paragraph hereto. 
 “Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
 “Overadvance Amount” means, as of the Eleventh Amendment Effective Date, $67,415,586; provided that such amount shall be reduced
to $63,556,526 on the Reversion Date and will be further reduced in monthly installments on each of the dates set forth below in the amounts set forth below: 
  

							
	 Overadvance Amount Reduction Date
	  	Reduction Amount	  	Remaining
Overadvance Amount
	 March 31, 2009
	  	$	3,859,060	  	$	59,697,466
			
	 Conversion Date
	  	$	59,697,466	  	$	0

 “Parent” means AbitibiBowater Inc., a Delaware corporation f/k/a Alpha-Bravo
Holdings, Inc. 
 “Parent Guarantor” means (a) the U.S. Borrower, as guarantor pursuant to Article XI hereof,
and (b) each other direct or indirect parent company of the Borrower that (i) has previously provided a guaranty of the Obligations or (ii) hereafter becomes a guarantor pursuant to Section 8.10(c). 
 “Parent Guaranty Agreements” means each unconditional guaranty agreement executed by the Parent Guarantors in favor of the
Administrative Agent for the ratable benefit of the Secured Parties, as amended, restated, supplemented or otherwise modified from time to time. 
 “Parent Overhead Expenses” means (a) accounting and auditing costs and expenses incurred by the Parent in the ordinary course of its business in connection with preparing financial reports and tax filings;
(b) customary fees and expenses payable to the SEC and other reasonable and customary costs and expenses payable in connection with the Parent being a publicly traded company (including, without limitation, reasonable and 

  

 37 

 
customary fees and expenses required to be paid for professional and regulatory compliance); (c) reasonable and customary legal fees and expenses
required for the corporate maintenance of the Parent and the U.S. Borrower and its Subsidiaries; (d) reasonable and customary director fees; (e) reasonable and customary costs and expenses payable for director and officer insurance;
(f) transfer agent fees payable in connection with Capital Stock of the Parent; and (g) franchise taxes and other fees payable to the jurisdiction of incorporation or qualification of the Parent incurred in the ordinary course of
conducting its business; provided that in no event shall Parent Overhead Expenses include management fees, salaries, bonuses, debt service and dividends and other distributions in respect of the Capital Stock of the Parent. 
 “Participant” has the meaning assigned thereto in Section 14.11(d). 
 “Participating Member State” means each state so described in any EMU Legislation. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any successor agency. 
 “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV of ERISA
or Section 412 of the Code and which (a) is maintained for the employees of the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates or (b) has at any time within the preceding six (6) years been
maintained for the employees of the U.S. Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates which the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates sponsors, maintains, or to which it
makes, is making or is obligated to make, contributions. 
 “Permitted Acquisition” means any investment by the U.S.
Borrower or any of its Subsidiaries in the form of the acquisition of all or substantially all of the business or assets, or any portion of the business or assets that constitutes a line of business, a business unit or a division (whether by the
acquisition of Capital Stock, assets or any combination thereof), of any other Person (which acquisition (a) was permitted prior to the Tenth Amendment Effective Date or (b) is permitted on or after the Tenth Amendment Effective Date if
consented to by the Required Lenders pursuant to Section 14.2). 
 “Permitted Currency” means Dollars and
Canadian Dollars or each such currency, as the context requires. 
 “Permitted Liens” means the Liens permitted pursuant to
Section 10.2. 
 “Permitted Secured Indebtedness” has the meaning set forth in
Section 8.10(f)(i)(J). 
 “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, governmental authority or other entity. 
 “Policy Sublimit” means the
maximum Dollar amount of the Credit Insurance Policy against which claims may be made only by the U.S. Borrower or any of its Subsidiaries (and not by Abitibi, the Parent or any other Subsidiary thereof). 
  

 38 

 “Pounds Sterling” means, at any time of determination, the then official currency of the
United Kingdom. 
 “PPSA” means the Personal Property Security Act as in effect in the provinces of Ontario, Nova Scotia and
New Brunswick, as amended or modified from time to time. 
 “Prime Rate” means, 
 (a) with respect to all Revolving Credit Loans or Additional Credit Loans denominated in Dollars, at any time, the rate of interest per annum publicly
announced from time to time by the Administrative Agent as its prime rate for Dollar commercial loans made in Canada; and 
 (b) with respect
to all Swingline Loans denominated in Dollars, at any time, the rate of interest per annum publicly announced from time to time by the Swingline Lender as its prime rate for Dollar commercial loans made in Canada. 
 Each change in the Prime Rate shall be effective as of the opening of business on the day such change in such prime rate occurs. The parties hereto
acknowledge that the rate announced publicly by the Administrative Agent or the Swingline Lender, as applicable, as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.

 “Priority Payables” means, with respect to any Person, any amount payable by such Person which is secured by a Lien in
favour of a Governmental Authority which, in the reasonable good faith credit discretion of the Administrative Agent, ranks or is capable of ranking prior to or pari passu with the Liens created by the Security Documents in respect of any Eligible
Accounts or Eligible Inventory, including amounts owing for wages, vacation pay, severance pay, employee deductions, sales tax, excise tax, Taxes payable pursuant to the Excise Tax Act (net of GST input credits), income tax, workers compensation,
government royalties, pension fund obligations including Canadian Pension Plans, real property tax and other statutory or other claims that have or may have priority over, or rank pari passu with, such Liens created by the Security
Documents. 
 “QSPE” means each of the following: (a) Calhoun Note Holdings AT LLC, (b) Calhoun Note Holdings TI
LLC, (c) Bowater Catawba Note Holdings I LLC, (d) Bowater Catawba Note Holdings II LLC, (e) Bowater Saluda Note Holdings LLC, (f) Timber Note Holding LLC and (g) any other qualified special purpose entity created to
facilitate the sale and/or the monetization of receivables from the sale of timberlands pursuant to Section 10.5(g); provided that: 
 (i) no portion of the Indebtedness or any other obligations (contingent or otherwise) of any such Person (1) may be guaranteed by the U.S. Borrower or any of its Subsidiaries, (2) may be recourse to or
obligate the U.S. Borrower or any of its Subsidiaries in any way or (3) may subject any property or asset of the U.S. Borrower or any of its Subsidiaries, directly or indirectly, contingently or otherwise, to the satisfaction thereof (other
than, in the case of clauses (1) (solely with respect to guaranties of make whole premiums), (2) and (3), pursuant to Standard Securitization Undertakings); 
  

 39 

 (ii) the U.S. Borrower and its Subsidiaries may not have any material contract,
agreement, arrangement or understanding with any such Person other than on terms no less favorable to the U.S. Borrower or any of its Subsidiaries than those that might be obtained at the time from Persons that are not Affiliates of the U.S.
Borrower or any of its Subsidiaries; and 
 (iii) the U.S. Borrower and its Subsidiaries may not (A) have any obligation
to maintain or preserve the financial condition of any such Person or (B) cause any such Person to achieve certain levels of operating results. 
 “Québec Collateral Documents” means, collectively, any Deed of Hypothec, Debenture and Pledge referred to in Section 13.1(b). 
 “Reallocation Period” means any period (a) commencing upon the date on which the Revolving Credit Loans and Swingline Loans are
reallocated in accordance with Section 4.6(b)(i)(A)(1) and (b) ending on the date on which (i) the Default or Event of Default which gave rise to the reallocation noted in clause (a) above has been cured or
waived and (ii) the Revolving Credit Loans and Swingline Loans have been reallocated in accordance with Section 4.6(b)(i)(B). 
 “Register” has the meaning assigned thereto in Section 14.11(c). 
 “Reimbursement
Obligation” means the obligation of the Borrower to reimburse the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit. 
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the directors, officers, employees, agents and
advisors of such Person and of such Person’s Affiliates. 
 “Required Agreement Lenders” means, at any date, any
combination of Lenders having more than fifty percent (50%) of the sum of the aggregate amount of the Commitment under this Credit Facility or, if the Commitment under this Credit Facility has been terminated, any combination of Lenders holding
more than fifty percent (50%) of the aggregate Extensions of Credit; provided that the Additional Credit Commitments and the Extensions of Credit of the Additional Credit Lenders under the EDC Credit Facility or the Fairfax Credit Facility, as
applicable, shall be excluded in determining such percentages. 
 “Required Lenders” means, at any date, any combination of
Lenders and U.S. Lenders having more than fifty percent (50%) of the sum of (a) the aggregate amount of the Commitment under this Credit Facility (or if the Commitment has been terminated, the aggregate amount of Extensions of Credit under
this Credit Facility) plus (b) the aggregate amount of the commitments under the U.S. Credit Facility (or, if the commitments under the U.S. Credit Facility have been terminated, the aggregate amount of the U.S. Extensions of Credit);
provided that the Additional Credit Commitments and the Extensions of Credit of the Additional Credit Lenders under the EDC Credit Facility or the Fairfax Credit Facility, as applicable, shall be excluded in determining such percentages. 

 

 40 

 “Reserves” means, as of any date of determination, such amounts as the Administrative
Agent may from time to time establish and revise in good faith reducing the amount of the Extensions of Credit (other than the EDC Credit Loans and the Fairfax Credit Loans) which would otherwise be available to the Borrower under the lending
formulas provided herein: (a) to reflect events, conditions, contingencies or risks which, as determined by the Administrative Agent in good faith, adversely affect, or would have a reasonable likelihood of adversely affecting, either
(i) the Collateral or any other property which is security for the Obligations, its value or the amount that might be received by the Administrative Agent from the sale or other disposition or realization upon the Collateral, or (ii) the
assets, business or prospects of the Borrower or any of its Consolidated Subsidiaries or (iii) the security interests and other rights of the Administrative Agent or any Lender in the Collateral (including the enforceability, perfection and
priority thereof) or (b) to reflect the Administrative Agent’s good faith belief that any collateral report or financial information furnished by or on behalf of the Borrower or any of its Consolidated Subsidiaries to the Administrative
Agent is or may have been incomplete, inaccurate or misleading in any material respect or (c) in respect of any state of facts which the Administrative Agent determines in good faith constitutes a Default or an Event of Default. Without
limiting the generality of the foregoing, Reserves may, at the Administrative Agent’s option, be established (i) to reflect environmental liabilities and Priority Payables and (ii) to reflect up to the average balance for the
applicable Settlement Period of commingled accounts receivable owed by account debtors to the U.S. Borrower and its Subsidiaries but paid to Abitibi or any of its Subsidiaries net of the average balance for such applicable Settlement Period of
commingled accounts receivable owed by account debtors to Abitibi and its Subsidiaries but paid to the U.S. Borrower or any of its Subsidiaries. To the extent that the Administrative Agent may revise the lending formulas used to determine the
Borrowing Base or establish new criteria or revise existing criteria so as to address any circumstances, condition, event or contingency in any manner satisfactory to the Administrative Agent, the Administrative Agent shall not establish a Reserve
for the same purpose. The amount of any Reserve established by the Administrative Agent shall have a reasonable relationship to the event, condition, or other matter which is the basis for the Reserve as determined by the Administrative Agent in
good faith. 
 “Responsible Officer” means, as to any Person, the chief executive officer, president, chief financial
officer, controller, treasurer or assistant treasurer of such Person or any other officer of such Person reasonably acceptable to the Administrative Agent and the U.S. Administrative Agent. Any document delivered hereunder that is signed by a
Responsible Officer of a Person shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Person and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Person. 
 “Restricted Subsidiary” means any Person that is a “Restricted Subsidiary”
pursuant to the definition thereof as contained in the Existing Notes as in effect as of the Closing Date, for so long as such Existing Notes or any Indebtedness incurred to refinance such Existing Notes is outstanding and includes provisions
restricting the granting of a lien on the capital stock or indebtedness of such Restricted Subsidiaries. 
  

 41 

 “Reversion Date” means the earliest of the following dates: 
 (a) the date that the Exchange Offer is terminated (it being agreed that the expiration of the Exchange Offer shall not constitute a termination thereof
if the Exchange Offer expires in accordance with its terms on March 9, 2009 and the completion, closing and settlement of the Exchange Offer will occur on or before March 17, 2009); 
 (b) the date of the completion, closing and settlement of the Exchange Offer; and 
 (c) March 17, 2009. 
 “Revolving Credit Commitment” means: 
 (a) as to any Revolving Credit Lender (other than a Revolving Credit Lender
that a also the Swingline Lender or an Additional Credit Lender) at any time, the amount of the Commitment of such Lender; 
 (b) as to any
Revolving Credit Lender that is also a Swingline Lender (i) at any time during a Reallocation Period, the amount of the Commitment of the Swingline Lender and (ii) at any other time, the difference between (A) the amount of the
Commitment of the Swingline Lender less (B) the amount of the Swingline Commitment; 
 (c) as to any Revolving Credit Lender that
is also an Additional Credit Lender, at any time, the difference between (i) the amount of the Commitment of such Lender less (ii) the amount of the Additional Credit Commitment of such Lender; and 
 (d) as to any Additional Credit Lender that is not a Revolving Credit Lender, zero. 
 “Revolving Credit Commitment Percentage” means, as to any Revolving Credit Lender at any time, the ratio of (a) the amount of the
Revolving Credit Commitment of such Revolving Credit Lender to (b) the total amount of the Revolving Credit Commitments of all the Revolving Credit Lenders. 
 “Revolving Credit Facility” means the revolving credit facility established pursuant to Section 2.1. 
 “Revolving Credit Lender” means any Lender other than a Lender acting in its capacity as an Additional Credit Lender, a Lender acting in its capacity as Swingline Lender and a Lender acting in its
capacity as Issuing Lender. 
 “Revolving Credit Loan” means (a) any revolving loan made to the Borrower pursuant to
Section 2.1, (b) any BA Loan made to the Borrower pursuant to Section 2.9 and (c) all such revolving loans collectively as the context requires; provided, however, that “Revolving Credit Loan” shall not
include an EDC Credit Loan or a Fairfax Credit Loan. 
 “Revolving Credit Note” means a promissory note made by the Borrower
in favor of a Revolving Credit Lender evidencing the Revolving Credit Loans (other than BA Loans) made by such Revolving Credit Lender, substantially in the form of Exhibit A-1, and any amendments, supplements and modifications thereto, any
substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part. 
  

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 “S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto. 
 “SEC” means the Securities and Exchange Commission, or any
Governmental Authority succeeding to any of its principal functions. 
 “Sanctioned Entity” shall mean (a) an agency of
the government of, (b) an organization directly or indirectly controlled by, or (c) a person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/sanctions/index.html, or as otherwise published from time to time as such program may be applicable to such agency, organization or person. 
 “Sanctioned Person” shall mean a person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC
available at http://www.treas.gov/offices/ enforcement/ofac/sdn/index.html, or as otherwise published from time to time. 
 “Schedule I Lender” means any Lender named on Schedule I to the Bank Act (Canada). 
 “Schedule I
Reference Banks” means any bank or banks named on Schedule I to the Bank Act (Canada) as may be agreed from time to time by the Administrative Agent and the Borrower. 
 “Schedule II or III Lender” means any Lender named on Schedule II or Schedule III to the Bank Act (Canada). 
 “Schedule II or III Reference Banks” means any bank named on Schedule II or Schedule III to the Bank Act (Canada) as may be
agreed from time to time by the Administrative Agent and the Borrower. 
 “Secured Parties” means the Administrative Agent,
the Lenders, any party to a Hedging Agreement that was a Lender or an Affiliate of a Lender at the time such Hedging Agreement was executed, and any counterparty to any Cash Management Arrangement that was a Lender or an Affiliate of a Lender at the
time such Cash Management Arrangement was executed; provided, however, that solely with respect to the U.S. New Borrower Fixed Assets, “Secured Parties” shall not include the Additional Credit Lenders. 
 “Security Documents” means the collective reference to the Collateral Agreement, the Québec Collateral Documents, the Guaranty
Agreements, the New U.S. Borrower Mortgages, the Canadian Fixed Asset Mortgages and each other agreement or writing pursuant to which any Credit Party purports to pledge or grant a security interest in any property or assets securing the Obligations
(or any portion thereof) or any such Person purports to guaranty the payment and/or performance of the Obligations (or any portion thereof), in each case, as amended, restated, supplemented or otherwise modified from time to time. 
  

 43 

 “Settlement Period” means the time period within which commingled accounts receivable
owed by account debtors to the U.S. Borrower and its Subsidiaries, on the one hand, and Abitibi and its Subsidiaries, on the other hand, are settled between the U.S. Borrower and Abitibi. 
 “Seventh Amendment” means that certain Seventh Amendment dated as of June 6, 2008 by and among the Borrower, the Guarantors and the
Administrative Agent (on behalf of itself and the Lenders party thereto). 
 “Seventh Amendment Effective Date” means
June 6, 2008. 
 “Significant Indebtedness” means Indebtedness (other than the Obligations and the U.S. Obligations) of
the U.S. Borrower and its Subsidiaries the outstanding principal amount of which is in excess of $25,000,000. 
 “Sixth
Amendment” means that certain Sixth Amendment dated as of May 28, 2008 by and among the Borrower, the Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto). 
 “Sixth Amendment Effective Date” means May 28, 2008. 
 “Solvent” means, as to the U.S. Borrower and its Subsidiaries on a particular date, that any such Person (a) has capital sufficient to carry on its business and transactions and all business and
transactions in which it is about to engage and is able to pay its debts as they mature, (b) has assets having a value, both at fair valuation and at present fair saleable value, greater than the amount required to pay its probable liabilities
(including contingencies), and (c) does not believe that it will incur debts or liabilities beyond its ability to pay such debts or liabilities as they mature. 
 “Special Agent Advances” shall have the meaning set forth in Section 13.11 hereof. 
 “Specified Abitibi Indebtedness” means Indebtedness of Abitibi evidenced by the Credit and Guaranty Agreement dated as of April 1, 2008 by and among Abitibi-Consolidated Company of Canada, Abitibi and certain
affiliates and subsidiaries thereof, the lenders party thereto and Goldman Sachs Credit Partners L.P., as administrative agent (as amended, restated, supplemented or otherwise modified). 
 “Specified Existing Notes” means each of the Existing Notes which (a) as of the Closing Date, matures or is subject to mandatory
redemption prior to May 25, 2011 and (b) has an outstanding principal amount, as of the Closing Date, in excess of $75,000,000. The Specified Existing Notes shall be set forth on Schedule 1.1(b). 
 “Specified Non-Recurring Charges” means the non-recurring charges against income taken by the Original U.S. Borrower during the
following periods in the following amounts: 
 (a) with respect to the fiscal quarter ended March 31, 2007, non-recurring charges in the
amount of $9,500,000; 
  

 44 

 (b) with respect to the fiscal quarter ended June 30, 2007, non-recurring charges in the amount of
$20,000,000; 
 (c) with respect to the fiscal quarter ended September 30, 2007, non-recurring charges in the amount of $46,000,000;

 (d) with respect to the fiscal quarter ending December 31, 2007, non-recurring charges consisting of the following, without
duplication, (i) severance expenses of the Original U.S. Borrower, (ii) merger costs incurred with respect to the Combination and (iii) other mill closure costs, in each case, taken during such quarter, in an aggregate amount to be
determined in accordance with GAAP, but not to exceed $100,000,000; and 
 (e) with respect to the fiscal quarter ending March 31, 2008,
non-recurring charges consisting of the following, without duplication, (i) severance expenses of the Original U.S. Borrower, (ii) merger costs incurred with respect to the Combination and (iii) other mill closure costs, in each case,
taken during such quarter, in an aggregate amount to be determined in accordance with GAAP, but not to exceed $100,000,000 less the amount of Specified Non-Recurring Charges taken pursuant to clause (d) above with respect to the
fiscal quarter ended December 31, 2007; 
 provided that, notwithstanding anything to the contrary contained in this Agreement or
any other Loan Document, for purposes of calculating the Consolidated Senior Secured Leverage Ratio and the interest coverage ratio as set forth in Section 9.2, such non-recurring charges shall be excluded from the non-recurring charges
included in clause (b)(v) of the definition of Consolidated EBITDA. 
 “Stamping Fee” has the meaning assigned
thereto in Section 2.9(k). 
 “Standard Securitization Undertakings” means, collectively, (i) customary
arms-length servicing obligations (together with any related performance guaranties), (ii) obligations (together with any related performance guaranties) to refund the purchase price or grant purchase price credits for dilutive events or
misrepresentation (in each case unrelated to the collectibility of receivables or creditworthiness of the associated account debtors), (iii) representations, warranties, covenants and indemnities (together with any related performance
guaranties) of a type that are reasonably customary in accounts receivable securitizations and (iv) in the case of a QSPE, a guarantee by the U.S. Borrower or its Subsidiaries of any make whole premium (but not any principal or interest) on
Indebtedness of such QSPE. 
 “Subordinated Indebtedness” means the collective reference to any Indebtedness of the U.S.
Borrower or any of its Subsidiaries subordinated in right and time of payment to the Obligations and containing such other terms and conditions, in each case as are satisfactory to the Administrative Agent and the U.S. Administrative Agent.

 “Subsidiary” means as to any Person, any corporation, partnership, limited liability company or other entity of which
more than fifty percent (50%) of the outstanding Capital Stock having ordinary voting power to elect a majority of the board of directors or other persons or governing body performing similar functions of such corporation, partnership, limited
liability 

  

 45 

 
company or other entity is at the time directly or indirectly owned or controlled by such Person and/or one or more Subsidiaries of such Person (irrespective
of whether, at the time, Capital Stock of any other class or classes of such corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency); provided,
however, notwithstanding the foregoing, the terms “Subsidiary” or “Subsidiaries”: 
 (a) shall include (i) all
Subsidiaries of the Original U.S. Borrower (other than those noted in clause (b) below) and (ii) all Subsidiaries of each New U.S. Borrower; and 
 (b) shall exclude (i) all QSPEs and (ii) all of the Abitibi Entities. 
 Unless otherwise qualified, references to
“Subsidiary” or “Subsidiaries” herein shall refer to those of the U.S. Borrower. 
 “Subsidiary
Borrower” means any Domestic Subsidiary of the Borrower that is designated as a borrower under this agreement in accordance with the terms of Section 4.14. 
 “Subsidiary Guarantors” means each direct or indirect Material Subsidiary of the Borrower which becomes a party to the Subsidiary
Guaranty Agreement in accordance with Section 8.10(a). 
 “Subsidiary Guaranty Agreement” means each
unconditional guaranty agreement executed by the Subsidiary Guarantors in favor of the Administrative Agent for the ratable benefit of the Secured Parties, substantially in the form of Exhibit H, as amended, restated, supplemented or
otherwise modified from time to time. 
 “Supplemental New U.S. Borrower Mortgage” means that certain Agreement of
Subordination and Attornment, dated as of May 15, 2008, executed by The Industrial Development Board of the City of Childersburg, a public corporation duly organized and existing under the laws of the State of Alabama (such Person, the
“Coosa Pines IDB”), in the Coosa Pines Mill or Coosa Pines Real Property to the interests of the Administrative Agent and the U.S. Administrative Agent therein, executed by the Coosa Pines IDB in favor of the U.S. Administrative
Agent, for the ratable benefit of the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, as amended, restated, supplemented or otherwise modified from time to time. 
 “Swingline Commitment” means the lesser of (a) Ten Million Dollars ($10,000,000) and (b) the Revolving Credit Commitment.

 “Swingline Facility” means the swingline facility established pursuant to Section 2.2. 
 “Swingline Lender” means Bank of Montreal in its capacity as swingline lender hereunder. 
  

 46 

 “Swingline Loan” means any swingline loan made by the Swingline Lender to the Borrower
pursuant to Section 2.2, and all such swingline loans collectively as the context requires. 
 “Swingline Note”
means a promissory note made by the Borrower in favor of the Swingline Lender evidencing the Swingline Loans made by the Swingline Lender, substantially in the form of Exhibit A-2, and any amendments, supplements and modifications thereto,
any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part. 
 “Swingline
Termination Date” means the first to occur of (a) the resignation or removal of the Swingline Lender in accordance with Section 13.10 (except to the extent the Swingline Lender is replaced with a successor Swingline Lender,
reasonably acceptable to the Borrower and the Administrative Agent (such approvals not to be unreasonably withheld or delayed), prior to the effectiveness of such resignation) and (b) the Maturity Date. 
 “Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in accordance with GAAP. 
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto. 
 “Tenth Amendment” means that certain Tenth Amendment and Waiver dated
as of the Tenth Amendment Effective Date by and among the Borrower, the Parent, the Guarantors and the Administrative Agent (on behalf of itself and the Lenders and the U.S. Lenders party thereto). 
 “Tenth Amendment Consenting Lenders” means, collectively, each of the Lenders that consented to the Tenth Amendment by 5:00 p.m. on
November 13, 2008 (together with each such Lender’s successors and permitted assignees). 
 “Tenth Amendment Effective
Date” means November 12, 2008. 
 “Termination Event” means except for any such event or condition that could
not reasonably be expected to have a Material Adverse Effect: (a) a “Reportable Event” described in Section 4043 of ERISA for which the notice requirement has not been waived by the PBGC, or (b) the withdrawal of the
U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates from a Pension Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination of
a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA or similar provision of other Applicable Law, if the plan assets are not
sufficient to pay all plan liabilities, or (d) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC or any other applicable Governmental Authority under other Applicable Law,
or (e) any other event or 

  

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condition which would constitute grounds under Section 4042(a) of ERISA or other Applicable Law for the termination of, or the appointment of a
trustee to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 412 of the Code or Section 302 of ERISA or the provisions of any other Applicable Law, or (g) the partial or complete
withdrawal of the U.S. Borrower or any of its Subsidiaries or of any of their ERISA Affiliates from a Multiemployer Plan if withdrawal liability is asserted by such plan, or (h) any event or condition which results in the reorganization or
insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (i) any event or condition which results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of
proceedings to terminate a Multiemployer Plan under Section 4042 of ERISA, or (j) the termination of a Canadian Pension Plan, the filing of a notice of intent to terminate a Canadian Pension Plan or the treatment of a Canadian Pension Plan
amendment as a termination, under Applicable Law, if the plan assets are not sufficient to pay all plan liabilities, or (k) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Canadian Pension Plan
by any applicable Governmental Authority under Applicable Law, or (l) any other event or condition which would constitute grounds under Applicable Law for the termination of, or the appointment of a trustee to administer, any Canadian Pension
Plan, or (m) the partial or complete withdrawal of the U.S. Borrower or any of its Subsidiaries from a Canadian Multiemployer Plan if withdrawal liability is asserted by such plan, or (n) any event or condition which results in the
reorganization or insolvency of a Canadian Multiemployer Plan, or (o) any event or condition which results in the termination of a Canadian Multiemployer Plan or the institution by any Governmental Authority of proceedings to terminate a
Canadian Multiemployer Plan. 
 “Termination Value” means, in respect of any one or more Hedging Agreements, after taking
into account the effect of any legally enforceable netting agreement relating to such Hedging Agreements, (a) for any date on or after the date such Hedging Agreements have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Hedging Agreements, as determined based upon one or more mid-market
or other readily available quotations provided by any recognized dealer in such Hedging Agreements (which may include a Lender or any Affiliate of a Lender). 
 “Third Amendment” means that certain Third Amendment and Waiver dated as of Third Amendment Effective Date by and among the Borrower, the Guarantors and the Administrative Agent (on behalf of itself
and the Lenders party thereto). 
 “Third Amendment Effective Date” means February 25, 2008. 
 “United Kingdom” means the United Kingdom of Great Britain and Northern Ireland. 
 “U.S. Administrative Agent” means Wachovia Bank, National Association in its capacity as the administrative agent under the U.S. Credit
Agreement. 
 “U.S. Borrower” means, collectively, the New U.S. Borrowers and the Original U.S. Borrower. 
  

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 “U.S. Borrower Guaranty” means the unconditional guaranty of the payment of the
Obligations of the Borrower under Article XI of this Agreement. 
 “U.S. Borrowing Base” means the “Borrowing
Base” as defined in the U.S. Credit Agreement. 
 “U.S. Borrowing Base Certificate” means a “Borrowing Base
Certificate” as defined in the U.S. Credit Agreement. 
 “U.S. Borrowing Limit” means the “Borrowing Limit”
as defined in the U.S. Credit Agreement. 
 “U.S. Collateral” means the “Collateral” as defined in the U.S. Credit
Agreement. 
 “U.S. Collateral Agreement” means the “Collateral Agreement” as defined in the U.S. Credit
Agreement. 
 “U.S. Commitment” means the “Commitment” (as defined in the U.S. Credit Agreement) of all the U.S.
Lenders. 
 “U.S. Coverage Assets” means the “Coverage Assets” as defined in the U.S. Credit Agreement.

 “U.S. Credit Agreement” means that certain credit agreement dated as of the Closing Date by and among the U.S. Borrower,
as borrower, the lenders party thereto, as lenders, and the U.S. Administrative Agent, as administrative agent. 
 “U.S. Credit
Facility” means that certain revolving credit facility established pursuant to the U.S. Credit Agreement. 
 “U.S. Credit
Party” means the U.S. Borrower and each U.S. Subsidiary Guarantor. 
 “U.S. Extensions of Credit” means the
“Extensions of Credit” as defined in the U.S. Credit Agreement. 
 “U.S. Lender” means any “Lender” as
defined in the U.S. Credit Agreement. 
 “U.S. Loans” means “Loans” as defined in the U.S. Credit Agreement.

 “U.S. Maturity Date” means the “Maturity Date” as defined in the U.S. Credit Agreement. 
 “U.S. Non-Fixed Assets Collateral” means any portion of the U.S. Collateral that consists of assets or property that are not Fixed
Assets or timberlands. 
 “U.S. Obligations” means the “Obligations” as defined in the U.S. Credit Agreement.

 “U.S. Overadvance Amount” means the “Overadvance Amount” as defined in the U.S. Credit Agreement. 

 

 49 

 “U.S. Parent Guaranty Agreement” means the “Parent Guaranty Agreement” as
defined in the U.S. Credit Agreement. 
 “U.S. Pro Rata Percentage” means, as of any date of determination, the percentage
obtained by the following formula: 
 (a) the aggregate U.S. Commitment applicable to all U.S. Lenders as of 11:00 a.m. on such date of
determination 
 divided by 
 (b) the sum of (i) the aggregate U.S. Commitment applicable to all U.S. Lenders as of 11:00 a.m. on such date of determination plus (ii) the aggregate Commitment (less the Additional Credit
Commitment) applicable to all Lenders as of 11:00 a.m. on such date of determination. 
 “U.S. Required Agreement Lenders”
means the “Required Agreement Lenders” as defined in the U.S. Credit Agreement. 
 “U.S. Secured Parties” means
the “Secured Parties” as defined in the U.S. Credit Agreement. 
 “U.S. Subsidiary Guarantors” means the
“Subsidiary Guarantors” as defined in the U.S. Credit Agreement. 
 “United States” means the United States of
America. 
 “Value” means, with respect to Inventory, the lower of (a) cost computed (i) on a last-in first-out
basis in accordance with GAAP in the case of Inventory manufactured at the Original U.S. Borrower’s Catawba and Calhoun mills and (ii) on a first-in first-out basis in accordance with GAAP with respect to all other Inventory or
(b) market value; provided that, for purposes of the calculation of the Borrowing Base, (i) the value of the Inventory shall not include: (A) intercompany profit or (B) write-ups or write-downs in value with respect to
currency exchange rates and (ii) notwithstanding anything to the contrary contained in this Agreement, the cost of the Inventory shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and
accepted by the Administrative Agent. 
 “Wholly-Owned” means, with respect to a Subsidiary, that all of the shares of
Capital Stock of such Subsidiary are, directly or indirectly, owned or controlled by the U.S. Borrower and/or one or more of its Wholly-Owned Subsidiaries (except for (a) directors’ qualifying shares or other shares required by Applicable
Law to be owned by a Person other than the U.S. Borrower and (b) the Exchangeable Shares). 
 SECTION 1.2 Other Definitions and
Provisions. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined, (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and 

  

 50 

 
“including” shall be deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to
have the same meaning and effect as the word “shall”, (e) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (f) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (g) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(h) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (i) the words “asset” and “property” shall
be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (j) the term “documents” includes any and all
instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form, (k) in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including”, and
(l) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
 SECTION 1.3 Accounting Terms. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and
all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP as in effect from time to time, applied on a consistent basis and in a
manner consistent with that used in preparing the audited financial statements required by Section 7.1(b) and (d), except as otherwise specifically prescribed herein. 
 SECTION 1.4 PPSA and CCQ Terms. Terms defined in the PPSA or the CCQ in effect on the Closing Date and not otherwise defined herein shall,
unless the context otherwise indicates, have the meanings provided by those definitions. Subject to the foregoing, the terms “PPSA” and “CCQ” refer, as of any date of determination, to the PPSA or the CCQ, as
applicable, then in effect. 
 SECTION 1.5 Rounding. Any financial ratios required to be maintained pursuant to this Agreement
shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with
a rounding-up if there is no nearest number). 
 SECTION 1.6 References to Agreement and Laws. Unless otherwise expressly
provided herein, (a) references to formation documents, governing documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements
and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Applicable Law shall include all
statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Applicable Law. 
  

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 SECTION 1.7 Times of Day. Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as applicable). 
 SECTION 1.8 Letter of Credit Amounts. Unless
otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or
the Letter of Credit Application therefor, whether or not such maximum face amount is in effect at such time. 
 SECTION 1.9 Amount
of Obligations. Unless otherwise specified, for purposes of this Agreement, any determination of the amount of any outstanding Loans, L/C Obligations or other Obligations or the amount of the Borrowing Base or any component thereof shall be
based upon the Dollar Amount of such outstanding Loans, L/C Obligations or other Obligations or Borrowing Base or component thereof. 
 ARTICLE II 
 REVOLVING CREDIT FACILITY 
 SECTION 2.1 Revolving Credit Loans. Subject to the terms and conditions of this Agreement (including, without limitation, with respect to any BA Loan, Section 2.9), and in reliance upon the
representations and warranties set forth herein, each Revolving Credit Lender severally agrees to make Revolving Credit Loans in any Permitted Currency to the Borrower from time to time from the Closing Date through, but not including, the Maturity
Date as requested by the Borrower in accordance with the terms of Section 2.5; provided, that (a) the aggregate principal amount of all outstanding Revolving Credit Loans, after giving effect to any amount requested, shall not exceed the
Borrowing Limit and (b) the principal amount of outstanding Revolving Credit Loans from any Lender shall not at any time exceed an amount equal to such Lender’s Revolving Credit Commitment less such Lender’s Revolving Credit
Commitment Percentage of outstanding L/C Obligations less such Lender’s Commitment Percentage of the Swingline Commitment. Each Revolving Credit Loan by a Revolving Credit Lender shall be in a principal amount equal to such Lender’s
Revolving Credit Commitment Percentage of the aggregate principal amount of Revolving Credit Loans requested on such occasion in the Permitted Currency requested by the Borrower. Subject to the terms and conditions hereof, the Borrower may borrow,
repay and reborrow Revolving Credit Loans hereunder until the Maturity Date. 
 SECTION 2.2 Swingline Loans. 
 (a) Availability. Subject to the terms and conditions of this Agreement and so long as the Swingline Lender has not received notice of a Default or
an Event of Default in the manner consistent with the requirements of Section 13.10(b) and which such Default or Event of Default has not been waived by the Required Lenders, the Required Agreement Lenders or the 

  

 52 

 
Lenders, as applicable, the Swingline Lender agrees to make Swingline Loans, including by way of an overdraft (after giving effect to all applicable netting
arrangements entered into with the Swingline Lender respecting accounts subject to any deposit account control agreements executed in connection herewith) in any account of the Borrower maintained with the Swingline Lender, in any Permitted Currency
to the Borrower from time to time from the Closing Date through, but not including, the Swingline Termination Date; provided, that the aggregate principal amount of all outstanding Swingline Loans (after giving effect to any amount
requested), shall not exceed the lesser of (i) the Borrowing Limit and (ii) the Swingline Commitment. 
 (b) Refunding.

 (i) Swingline Loans shall be refunded by the Revolving Credit Lenders in the applicable Permitted Currency on demand by the
Swingline Lender with notice to the Administrative Agent only following the occurrence and during the continuance of an Event of Default; provided that the Revolving Credit Lenders shall not be required to refund any Swingline Loan extended
by the Swingline Lender to the Borrower after the occurrence and during the continuance of a Default or an Event of Default of which the Swingline Lender has received notice in the manner consistent with the notice requirements of
Section 13.10(b) and which such Default or Event of Default has not been waived by the Required Lenders, the Required Agreement Lenders or the Lenders, as applicable. Such refundings shall be made by the Revolving Credit Lenders by way
of a Revolving Credit Loan in accordance with their respective Commitment Percentages (which Revolving Credit Loan shall bear interest based upon (1) the Canadian Prime Rate with respect to any Swingline Loan denominated in Canadian Dollars and
(2) the Base Rate with respect to any Swingline Loan denominated in Dollars). Each Revolving Credit Lender shall fund its respective Commitment Percentage of Revolving Credit Loans as required to repay Swingline Loans outstanding to the
Swingline Lender upon any such demand by the Swingline Lender but in no event later than 1:00 p.m. on the next succeeding Business Day after such demand is made. No Revolving Credit Lender’s obligation to fund its respective Commitment
Percentage of a Swingline Loan shall be affected by any other Revolving Credit Lender’s failure to fund its Commitment Percentage of a Swingline Loan, nor shall any Revolving Credit Lender’s Commitment Percentage be increased as a result
of any such failure of any other Revolving Credit Lender to fund its Commitment Percentage of a Swingline Loan. 
 (ii) The
Borrower shall pay to the Swingline Lender on demand, in the applicable Permitted Currency, with notice to the Administrative Agent, the amount of such Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not
sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded. In addition, the Borrower hereby authorizes the Administrative Agent to charge any account maintained by the Borrower with the Swingline Lender (up to
the amount available therein) in order to immediately pay the Swingline Lender the amount of such Swingline Loans to the extent amounts received from the Lenders are not sufficient to repay in full the outstanding Swingline Loans requested or
required to be refunded. If any portion of any such amount paid to the Swingline Lender shall be 

  

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recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so recovered shall be ratably shared
among all the Revolving Credit Lenders in accordance with their respective Commitment Percentages (unless the amounts so recovered by or on behalf of the Borrower pertain to a Swingline Loan extended after the occurrence and during the continuance
of a Default or an Event of Default of which the Swingline Lender has received notice in the manner consistent with the notice requirements of Section 13.10(b) and which such Default or Event of Default has not been waived by the
Required Lenders, the Required Agreement Lenders or the Lenders, as applicable). 
 (iii) Each Revolving Credit Lender
acknowledges and agrees that its obligation to refund Swingline Loans in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation,
non-satisfaction of the conditions set forth in Article V at the time of such refunding; provided that the Revolving Credit Lenders shall not be required to refund any Swingline Loan extended by the Swingline Lender to the Borrower
after the occurrence and during the continuance of a Default or an Event of Default of which the Swingline Lender has received notice in the manner consistent with the notice requirements of Section 13.10(b) and which such Default or
Event of Default has not been waived by the Required Lenders, the Required Agreement Lenders or the Lenders, as applicable. Further, each Revolving Credit Lender agrees and acknowledges that if, prior to the refunding of any outstanding Swingline
Loans pursuant to this Section, one of the events described in Section 12.1(i) or (j) shall have occurred, each Revolving Credit Lender will, on the date the applicable Revolving Credit Loan would have been made, purchase an
undivided participating interest in the Swingline Loan to be refunded (in lieu of its obligation to refund a Swingline Loan under clause (i) above) in an amount equal to its Commitment Percentage of the aggregate amount of such Swingline
Loan. Each Revolving Credit Lender will immediately transfer to the Swingline Lender, in immediately available funds in the applicable Permitted Currency, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to
such Revolving Credit Lender a certificate evidencing such participation dated the date of receipt of such funds and for such amount. Whenever, at any time after the Swingline Lender has received from any Revolving Credit Lender such Lender’s
participating interest in a Swingline Loan, the Swingline Lender receives any payment on account thereof, the Swingline Lender will distribute to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded). 
 SECTION 2.3 EDC Credit Loan. Subject to the terms and conditions of this Agreement, and in reliance upon the representations and warranties set forth herein, the EDC Credit Lender agrees to make the EDC Credit Loan in Dollars to
the Borrower on the Eleventh Amendment Effective Date. Notwithstanding anything to the contrary, an EDC Credit Loan may only be a Base Rate Loan and for greater certainty the EDC Credit Lender shall not participate in or be liable in connection with
any BA Loan, BA Equivalent Loan, Letter of Credit, Swingline Loan or other Loan contemplated herein. 
  

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 SECTION 2.4 Fairfax Credit Loan. Subject to the terms and conditions of this Agreement, and
in reliance upon the representations and warranties set forth herein, Fairfax has made the Fairfax Credit Commitment available to the Borrower by way of the Fairfax Credit Loan which was fully funded as of the Eleventh Amendment Effective Date.
Notwithstanding anything to the contrary, a Fairfax Credit Loan may only be a Base Rate Loan and for greater certainty the Fairfax Credit Lender shall not participate in or be liable in connection with any BA Loan, BA Equivalent Loan, Letter of
Credit, Swingline Loan or other Loan contemplated herein. 
 SECTION 2.5 Procedure for Advances of Revolving Credit Loans and
Swingline Loans. 
 (a) Requests for Borrowing. The Borrower shall give irrevocable prior written notice substantially in the form
of Exhibit B (a “Notice of Borrowing”) to (i) the Administrative Agent with respect to any Loan (other than a Swingline Loan made by way of overdraft) and (ii) the Swingline Lender, with respect to each Swingline
Loan (other than a Swingline Loan made by way of overdraft). Such Notice of Borrowing shall be delivered not later than 12:00 p.m. (i) on the same Business Day as each Canadian Prime Rate Loan, each Base Rate Loan and each Swingline Loan,
(ii) at least one (1) Business Day before each BA Loan and (iii) at least three (3) Business Days before each LIBOR Rate Loan, of its intention to borrow, specifying (A) the date of such borrowing, which shall be a Business
Day; (B) the applicable Permitted Currency with respect to such borrowing; (C) the amount of such borrowing, which shall be, (1) with respect to Canadian Prime Rate Loans (other than Swingline Loans) in an aggregate principal amount
of C$1,000,000 or a whole multiple of C$500,000 in excess thereof, (2) with respect to Base Rate Loans (other than Swingline Loans) in an aggregate principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof, (3) with
respect to BA Loans in an aggregate principal amount of C$1,000,000 or a whole multiple of C$500,000 in excess thereof, (4) with respect to LIBOR Rate Loans denominated in Canadian Dollars in an aggregate principal amount of C$3,000,000 or a
whole multiple of C$1,000,000 in excess thereof, (5) with respect to LIBOR Rate Loans denominated in Dollars in an aggregate principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess thereof and (6) with respect to
Swingline Loans in any amount of Canadian Dollars or Dollars (as applicable); (D) whether such Loan is to be a Revolving Credit Loan or Swingline Loan; (E) in the case of a Revolving Credit Loan whether the Loans are to be LIBOR Rate
Loans, Canadian Prime Rate Loans, Base Rate Loans or BA Loans; and (F) in the case of a LIBOR Rate Loan or any BA Loan, the duration of the Interest Period applicable thereto. A Notice of Borrowing received after 12:00 p.m. shall be deemed
received on the next Business Day. The Administrative Agent shall promptly notify the applicable Lenders of each Notice of Borrowing. 
 (b)
Disbursement of Loans. Not later than 2:00 p.m. on the proposed borrowing date for any Loan (including any BA Loan), (i) each Revolving Credit Lender will make available to the Administrative Agent, for the account of the Borrower,
at the Administrative Agent’s Office in funds immediately available to the Administrative Agent, such Lender’s Revolving Credit Commitment Percentage of the Revolving Credit Loans (including any BA Loan) to be made on such borrowing date
(provided that, without limiting anything to the contrary contained herein, BA Loans shall be subject to all disbursement provisions of Section 2.9); (ii) the Swingline Lender will make available to the Administrative Agent,
for the account of the Borrower, at the Administrative Agent’s Office in funds immediately available to the Administrative Agent, the Swingline Loans (other than a Swingline Loan made by way of overdraft) to be made on such borrowing date and
(iii) the EDC Credit Lender will make available to the Administrative Agent, for the account of the Borrower, at the 

  

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Administrative Agent’s office in funds immediately available to the Administrative Agent, the EDC Credit Loan on the Eleventh Amendment Effective Date.
The Borrower hereby irrevocably authorizes the Administrative Agent (or with respect to Swingline Loans made by way of overdraft, the Swingline Lender) to disburse the proceeds of each borrowing requested pursuant to this Section in immediately
available funds by crediting or wiring such proceeds to the deposit account of the Borrower identified in the most recent notice substantially in the form of Exhibit C (a “Notice of Account Designation”) delivered by the
Borrower to the Administrative Agent (or as may be otherwise agreed upon by the Borrower and the Administrative Agent or, with respect to Swingline Loans made by way of overdraft, the Swingline Lender) from time to time. Subject to
Section 4.7 hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds of any Loan (including any BA Loan) requested pursuant to this Section to the extent that (i) with respect to any Revolving
Credit Loan (including any BA Loan), any Lender has not made available to the Administrative Agent its Revolving Credit Commitment Percentage of such Revolving Credit Loan (including any BA Loan) or (ii) with respect to any Swingline Loan, the
Swingline Lender has not made available to the Administrative Agent such Swingline Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline Loans shall be made by the Lenders as provided in Section 2.2(b).

 (c) Notwithstanding the foregoing, any check, payment instruction or debit authorization drawn on or made to the Swingline Lender by the
Borrower resulting in an overdraft in any account maintained by the Swingline Lender subject to any deposit account control agreements executed in connection herewith will be deemed to be a request (an “Overdraft Request”) for a
Swingline Loan to be made in an amount sufficient to cover such overdraft. Notwithstanding the foregoing, the notice required in this Section shall not be required in connection with any Overdraft Request and all Overdraft Requests shall be funded
as Swingline Loans by the Swingline Lender to the Borrower as agreed to by the Swingline Lender and the Borrower in accordance with Section 2.2(a). 
 SECTION 2.6 Repayment and Prepayment of Loans. 
 (a) Repayment on Maturity Date. The
Borrower hereby agrees to repay the outstanding principal amount of (i) all Revolving Credit Loans in full on the Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b), together, in each case, with all
accrued but unpaid interest thereon. 
 (b) Repayment on EDC Credit Termination Date. The Borrower hereby agrees to repay the
outstanding amount of all EDC Credit Loans on the EDC Credit Termination Date and, where the EDC Credit Termination Date occurs as a result of completion of the Exchange Offer, each of the Lenders and the Credit Parties hereby consents to such
repayment notwithstanding that other Obligations may be, and may remain, outstanding. Upon such repayment, the EDC Credit Facility shall terminate and the EDC Credit Commitment shall be reduced to zero. 
  

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 (c) Repayment on Fairfax Credit Termination Date. The Borrower hereby agrees to repay the
outstanding amount of all Fairfax Credit Loans on the Fairfax Credit Termination Date and, where the Fairfax Credit Termination Date occurs as a result of completion of the Exchange Offer, each of the Lenders and the Credit Parties hereby consents
to such repayment notwithstanding that other Obligations may be, and may remain, outstanding. Upon such repayment, the Fairfax Credit Facility shall terminate and the Fairfax Credit Commitment shall be reduced to zero. 
 (d) Mandatory Prepayments. 
 (i) Borrowing Limit. If at any time (as determined by the Administrative Agent under Section 2.6(d)(iv), which determination shall be conclusive absent manifest error): 
 (A) solely because of currency fluctuation, the outstanding principal amount of all Revolving Credit Loans plus the sum of
(1) the Swingline Commitment, (2) solely for the purposes of calculating clauses (a) and (b) of the Borrowing Limit, the outstanding Additional Credit Loans and (3) all outstanding L/C Obligations exceeds one hundred and
five percent (105%) of the Borrowing Limit (including, without limitation, (x) upon a reduction of the Overadvance Amount pursuant to the definition thereof or Section 8.2(b) or otherwise, (y) pursuant to
Section 8.2(b) or (z) as otherwise required by the terms of this Agreement); or 
 (B) for any other reason,
the outstanding principal amount of all Revolving Credit Loans plus the sum of (1) the Swingline Commitment, (2) solely for the purposes of calculating clauses (a) and (b) of the Borrowing Limit, the outstanding Additional
Credit Loans and (3) all outstanding L/C Obligations exceeds the Borrowing Limit (including, without limitation, (x) upon a reduction of the Overadvance Amount pursuant to the definition thereof or Section 8.2(b) or otherwise,
(y) pursuant to Section 8.2(b) or (z) as otherwise required by the terms of this Agreement); 
 then, in each such case,
the Borrower agrees to repay (x) if such excess results from a change to the Asset Coverage Amount, within three (3) Business Days following the delivery of the applicable financial statements resulting in such change or (y) in any
other circumstance, immediately upon notice from the Administrative Agent, by payment to the Administrative Agent for the account of the Lenders, Extensions of Credit in an amount equal to such excess with each such repayment applied first to
the principal amount of outstanding Swingline Loans, second to the principal amount of outstanding Revolving Credit Loans (other than Bankers’ Acceptances and BA Loans) and third, with respect to any Letters of Credit,
Bankers’ Acceptances or BA Loans then outstanding, a payment of cash collateral into a cash collateral account opened by the Administrative Agent, for the benefit of the Lenders in an amount equal to the aggregate then undrawn and unexpired
amount of such Letters of Credit, Bankers’ Acceptances or BA Loans (such cash collateral to be applied in accordance with Section 2.7(b) or Section 12.2(b)). 
  

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 (ii) Excess Swingline Loans. If at any time (as determined by the Administrative
Agent or the Swingline Lender under Section 2.6(d)(iv), which determination shall be conclusive absent manifest error) the outstanding amount of all Swingline Loans exceeds the Swingline Commitment, then, in each such case, the Borrower
agrees to repay, immediately upon notice from the Administrative Agent, by payment to the Administrative Agent for the account of the Swingline Lender, Swingline Loans in an amount equal to such excess; provided that if such excess is solely
as a result of currency fluctuations the Borrower shall only be required to make such payment to the extent that the outstanding amount of all Swingline Loans exceeds one hundred and five percent (105%) of the Swingline Commitment. 

(iii) Excess L/C Obligations. If at any time (as determined by the Administrative Agent under Section 2.6(d)(iv),
which determination shall be conclusive absent manifest error) the outstanding amount of all L/C Obligations exceeds the L/C Commitment, then, in each such case, the Borrower shall make a payment of cash collateral into an account opened by the
Administrative Agent, for the benefit of itself and the Lenders, in an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit (such cash collateral to be applied in accordance with Section 12.2(b));
provided that if such excess is solely as a result of currency fluctuations the Borrower shall only be required to make such payment of cash collateral to the extent that the outstanding amount of all L/C Obligations exceeds one hundred and
five percent (105%) of the L/C Commitment. 
 (iv) Testing. The Borrower’s compliance with this
Section 2.6(d) shall be tested only at each Determination Time. 
 (v) Additional Mandatory Prepayments. In
addition to the foregoing, the Borrower shall prepay the Loans in accordance with Section 8.2(b). 
 (e) Optional
Prepayments. The Borrower may at any time and from time to time prepay Revolving Credit Loans and Swingline Loans, in whole or in part, with irrevocable prior written notice to the Administrative Agent substantially in the form of
Exhibit D (a “Notice of Prepayment”) given not later than 12:00 p.m. (i) on the same Business Day as the prepayment of each Canadian Prime Rate Loan and each Base Rate Loan (including, in each case, each Swingline
Loan), (ii) at least one (1) Business Day before the prepayment of each BA Loan and (iii) at least three (3) Business Days before the prepayment of each LIBOR Rate Loan, specifying the date and amount of prepayment, the
applicable Permitted Currency in which such prepayment is denominated and whether the prepayment is of Canadian Prime Rate Loans, Base Rate Loans, BA Loans, LIBOR Rate Loans, Swingline Loans, or a combination thereof, and, if of a combination
thereof, the amount allocable to each. Upon receipt of such notice, the Administrative Agent shall promptly notify each Lender. If any such notice is given, the amount specified in such notice shall be due and payable on the date set forth in such
notice. Partial prepayments shall be in an aggregate amount of C$1,000,000 or a whole multiple of C$500,000 

  

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in excess thereof with respect to Canadian Prime Rate Loans (other than Swingline Loans), $1,000,000 or a whole multiple of $500,000 in excess thereof with
respect to Base Rate Loans (other than Swingline Loans), C$1,000,000 or a whole multiple of C$500,000 in excess thereof with respect to BA Loans, C$3,000,000 or a whole multiple of C$1,000,000 in excess thereof with respect to LIBOR Rate Loans
denominated in Canadian Dollars, $3,000,000 or a whole multiple of $1,000,000 in excess thereof with respect to LIBOR Rate Loans denominated in Dollars, C$100,000 or a whole multiple of C$100,000 in excess thereof with respect to Swingline Loans
denominated in Canadian Dollars and $100,000 or a whole multiple of $100,000 in excess thereof with respect to Swingline Loans denominated in Dollars. A Notice of Prepayment received after 12:00 p.m. shall be deemed received on the next Business
Day. Notwithstanding the foregoing, the notices required in this Section shall not be required for any prepayment of Swingline Loans prepaid by way of netting arrangements entered into by the Swingline Lender with the Borrower in the administration
of accounts subject to any deposit account control agreement executed in connection herewith and maintained with the Swingline Lender. For greater certainty the Borrower may not prepay the EDC Credit Loan or the Fairfax Credit Loan unless all other
Obligations (other than contingent or indemnification obligations not then due and payable) have been repaid in full and the Commitments (other then the Fairfax Credit Commitment and the EDC Credit Commitment and, in the case of prepayment of the
Fairfax Credit Loan, also including the EDC Credit Commitment) have been terminated. 
 (f) Limitation on Prepayment of LIBOR Rate Loans
and BA Loans. 
 (i) The Borrower may not prepay any LIBOR Rate Loan on any day other than on the last day of the Interest
Period applicable thereto unless such prepayment is accompanied by any amount required to be paid pursuant to Section 4.9 hereof. 
 (ii) Notwithstanding Section 2.6(e) above, the Borrower may not prepay any BA Loan on any day other than on the last day of the Interest Period applicable thereto; provided that, notwithstanding
anything to the contrary contained in this Agreement, if at any time any Bankers’ Acceptances are required to be prepaid prior to their maturity, the Borrower shall be required to deposit the amount of such prepayment in a cash collateral
account with the Administrative Agent until the date of maturity of such Bankers’ Acceptances. Such cash collateral account shall be under the sole control of the Administrative Agent. Except as contemplated hereby, neither the Borrower nor any
Person claiming on behalf of the Borrower shall have any right to any of the cash in such cash collateral account. The Administrative Agent shall apply the cash held in such cash collateral account to the face amount of such Bankers’
Acceptances at maturity whereupon any cash remaining in such cash collateral account shall be released by the Administrative Agent to the Borrower. Upon deposit of such cash collateral as provided herein, such Bankers’ Acceptances shall not be
considered to be outstanding for any purpose hereunder, including, without limitation, calculation of Average Utilization and availability under the Borrowing Limit. 
 (g) Hedging Agreements. No repayment or prepayment pursuant to this Section shall affect any of the Borrower’s obligations under any Hedging Agreement. 
  

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 SECTION 2.7 Permanent Reduction of the Revolving Credit Commitment and Swingline Commitment.

 (a) Voluntary Reduction. The Borrower shall have the right at any time and from time to time, upon at least five (5) Business
Days prior written notice to the Administrative Agent, to permanently reduce, without premium or penalty, (i) the entire Commitment (other than the Additional Credit Commitment at any time) or (ii) portions of such Commitment, from time to
time, in an aggregate principal amount not less than $5,000,000 or any whole multiple of $5,000,000 in excess thereof. Any reduction of such Commitment shall be applied to the Commitment of each Lender (other than the Additional Credit Lenders)
according to its Commitment Percentage. All commitment fees accrued until the effective date of any permanent reduction of the Commitment shall be paid on the effective date of such permanent reduction. 
 (b) Mandatory Reduction. 
 (i) The Borrower shall permanently reduce the Commitment (other than the Additional Credit Commitment), without duplication: 
 (A) as and when the Overadvance Amount is reduced pursuant to, and in accordance with, the definition of “Overadvance Amount” (such reduction to be made on a dollar-for-dollar basis) except to the extent
that such Commitment has been previously reduced pursuant to and in accordance with clause (C) of this Section 2.7(b)(i); 
 (B) pursuant to, and in accordance with, Section 8.2(b) (including, without limitation, in connection with the reduction of the Overadvance Amount in accordance with Section 8.2(b)); and

 (C) on February 28, 2009, by an amount equal to $3,859,060 except to the extent that such Commitment has been
previously reduced pursuant to and in accordance with clause (A) of this Section 2.7(b)(i); 
 (ii) In the case of
any permanent reduction of the Commitment (other than the Additional Credit Commitment) pursuant to clause (i) of this Section 2.7(b): 
 (A) such reduction of such Commitment shall be applied to the Commitment (other than the Additional Credit Commitment) of each Lender according to its Commitment Percentage; and 
 (B) all commitment fees accrued on the portion of the Commitment that is permanently reduced that accrued until the effective date of any
permanent reduction of the Commitment shall be paid on the effective date of such permanent reduction. 
 (c) Corresponding Payment.
Each permanent reduction permitted or required pursuant to this Section or Section 8.2(b) shall be accompanied by a payment of principal sufficient to reduce the aggregate outstanding Revolving Credit Loans, Swingline Loans and L/C

  

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Obligations, as applicable, after such reduction to the Commitment as so reduced and if the Commitment as so reduced is less than the aggregate amount of all
outstanding Letters of Credit, the Borrower shall be required to deposit cash collateral in a cash collateral account opened by the Administrative Agent in an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit.
Such cash collateral shall be applied in accordance with Section 12.2(a). Any reduction of the Revolving Credit Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans, Swingline Loans (and furnishing of
cash collateral for all L/C Obligations) and shall result in the termination of the Revolving Credit Commitment and the Revolving Credit Facility. Any reduction of the Commitment (other than the Additional Credit Commitment) to zero shall be
accompanied by payment of all outstanding Revolving Credit Loans and Swingline Loans (and furnishing of cash collateral for all L/C Obligations) and shall result in the termination of such portion of the Commitment and the Revolving Credit Facility,
Swingline Facility and L/C Facility. Any cash collateral shall be applied in accordance with Section 12.2(b). If the reduction of such Commitment (or any portion thereof) requires the repayment of any LIBOR Rate Loan or any BA Loan, such
repayment shall be accompanied by any amount required to be paid pursuant to Section 4.9 hereof; provided that, notwithstanding anything to the contrary contained in this Agreement, if at any time any Bankers’ Acceptances are
prepaid prior to their maturity, the Borrower shall be required to deposit the amount of such prepayment in a cash collateral account with the Administrative Agent until the date of maturity of such Bankers’ Acceptances. Such cash collateral
account shall be under the sole control of the Administrative Agent. Except as contemplated hereby, neither the Borrower nor any Person claiming on behalf of the Borrower shall have any right to any of the cash in such cash collateral account. The
Administrative Agent shall apply the cash held in such cash collateral account to the face amount of such Bankers’ Acceptances at maturity whereupon any cash remaining in such cash collateral account shall be released by the Administrative
Agent to the Borrower. Upon deposit of such cash collateral as provided herein, such Bankers’ Acceptances shall not be considered to be outstanding for any purpose hereunder, including, without limitation, calculation of Average Utilization and
availability under the Borrowing Limit. 
 SECTION 2.8 Termination of Credit Facility. 
 (a) The Credit Facility shall terminate on the earliest of: (i) May 30, 2007 (it being agreed by all parties hereto that, as of the Seventh
Amendment Effective Date, such date has been extended to June 5, 2009), (ii) the date of termination by the Borrower pursuant to Section 2.7, (iii) the date of termination by the Administrative Agent on behalf of the
Lenders pursuant to Section 12.2(a), (iv) the date which is ninety-one (91) days prior to the then current maturity date of any Specified Existing Note if on the date which is one hundred twenty (120) days prior to the
then current maturity date of such Specified Existing Note either (A) the remaining outstanding principal balance thereof (excluding any such balance as to which sums have been set aside for the payment thereof pursuant to any defeasance or
sinking fund or escrow arrangement or similar provisions) is in excess of $75,000,000 or (B) the Aggregate Credit Exposure is in excess of $100,000,000 and the outstanding principal balance of such Specified Existing Note (excluding any such
balance as to which sums have been set aside for the payment thereof pursuant to any defeasance or sinking fund or escrow arrangement or similar provisions) has not been paid in full; or (v) the date which is ninety-one (91) days prior to
the then current maturity date of any 

  

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Indebtedness permitted pursuant to Section 12.1(o)(iii) if, on the date which is one hundred twenty (120) days prior to the then current
maturity date of such Indebtedness, such Indebtedness has not been paid in full in accordance with the terms of this Agreement or extended or refinanced such that the maturity of such Indebtedness is more than ninety-one (91) days after
May 27, 2009 (as such date may be extended pursuant to Section 2.8(b)); provided, that, on an annual basis the Borrower shall be entitled to request an extension of the Credit Facility (other than the EDC Credit Facility or
the Fairfax Credit Facility) upon the same terms and conditions as contained herein for an additional 364-day period and thereafter be entitled to request subsequent extensions for 364-day periods, which request shall be granted in the Lenders’
discretion and subject to the provisions of Sections 2.8(b) and (c); provided that the following conditions are satisfied (A) no Default or Event of Default has occurred and is continuing, (B) the Credit Facility has
not been terminated pursuant to clause (ii), (iii), (iv) or (v) above, (C) the Borrower provides written notice to the Administrative Agent (the “Extension Notice”) at least ninety
(90) days prior to the then existing Maturity Date (the date on which such Extension Notice is delivered, the “Extension Notice Date”) of its request to extend the Credit Facility and (D) each of the conditions set forth
in Section 5.3 on the then existing Maturity Date are satisfied by the Borrower. 
 (b) The Administrative Agent shall promptly
deliver a copy of the Extension Notice to each Lender upon receipt of same from the Borrower. Each of the Lenders shall within thirty (30) days from the Extension Notice Date (the “Consent Date”) provide written notice to the
Administrative Agent of each such Lender’s agreement to extend (any such Lender, a “Consenting Lender”) or not to so extend (any such Lender, a “Non-Consenting Lender”) the then existing Maturity Date. No
Lender shall be under any obligation or commitment to extend the then existing Maturity Date and no such obligation or commitment on the part of any Lender shall be inferred from the provisions of this Section 2.8. Failure on the part of
any Lender to respond to the Extension Notice by the Consent Date shall be deemed to be a refusal of such Lender to consent to the Extension Notice and such Lender shall be deemed to be a Non-Consenting Lender for purposes of this
Section 2.8. The Administrative Agent shall provide a written list of the Consenting Lenders and Non-Consenting Lenders to the Borrower and the Lenders promptly following the Consent Date. 
 (c) All Loans of any Non-Consenting Lender shall be subject to the then existing Maturity Date. If Lenders holding Commitment Percentages aggregating
less than one hundred percent (100%) of the aggregate Commitments (other than the Additional Credit Commitments) consent to such extension, the Borrower may elect by written notice to the Administrative Agent to (i) continue the Credit
Facility for such additional period with an aggregate Commitment equal to the then effective aggregate Commitment less the total Commitments of the Non-Consenting Lenders (provided that such continuation shall be permitted only if the total
amount of such Commitments to be continued are equal to or greater than fifty percent (50%) of the total amount of the original Commitments (after giving effect to any assignments pursuant to clause (iii) below)) or (ii) not
continue the Credit Facility for such additional period and, in such event, the Extension Notice shall be of no further effect or (iii) require any such Non-Consenting Lender to transfer and assign without recourse (in accordance with the
provisions of Section 14.11) its Commitment and other interests, rights and obligations under this Agreement (other than the Additional Credit Commitment) to an Eligible Assignee which consents thereto, which 

  

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shall assume such obligations upon its consent to assume such obligations; provided that (A) no such assignment shall conflict with any
Applicable Law, (B) such assignment shall be at the cost and expense of the Borrower and (C) the purchase price to be paid to such Non-Consenting Lender shall be an amount equal to the outstanding principal amount of the Loans (other than
the Additional Credit Loans) of such Non-Consenting Lender plus all interest accrued and unpaid thereon and all other amounts owing to such Non-Consenting Lender thereon. If the extension is granted and the conditions set forth in
clause (a) of this Section 2.8 are satisfied, upon the then existing Maturity Date, the scheduled Maturity Date shall be extended to the date which is 364 days from such then existing Maturity Date. 
 (d) The Additional Credit Commitment of any Lender may be extended with the written consent of such Lender (and if not extended by such Lender shall
terminate on the then existing Maturity Date). 
 SECTION 2.9 Terms Applicable to BA Loans. 
 (a) Commitment for BA Loans. 
 (i) Subject to the terms and conditions of this Agreement, the Borrower shall be entitled to receive the BA Proceeds of Bankers’ Acceptances denominated in Canadian Dollars in accordance with the provisions of Article II
(including, without limitation, this Section 2.9); provided that: 
 (A) the aggregate principal amount of
all outstanding BA Loans (after giving effect to any amount requested) shall not exceed the Borrowing Limit; and 
 (B) the
aggregate principal amount of all outstanding BA Loans from any Lender shall not at any time exceed such Lender’s Commitment less such Lender’s Revolving Credit Commitment Percentage of outstanding Revolving Credit Loans (other than
BA Loans) and outstanding L/C Obligations less such Lender’s Commitment Percentage of the Swingline Commitment less in the case where such Lender is an Additional Credit Lender, the outstanding Additional Credit Loans. 

Each BA Loan shall be funded in Canadian Dollars by each Lender in a principal amount equal to such Lender’s Revolving Credit Commitment
Percentage of the aggregate principal amount of BA Loans requested on such occasion. Subject to the terms and conditions hereof, the Borrower may borrow, repay and reborrow BA Loans hereunder until the Maturity Date. 
 (ii) For the purposes of this Agreement, the full face amount of Bankers’ Acceptances, without discount, shall be used when
calculations are made to determine the amount of Loans outstanding. Each determination by the Administrative Agent of the Stamping Fee, the BA Discount Rate and the BA Proceeds shall, in the absence of manifest error, be presumed correct.

  

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 (b) Term. Each Bankers’ Acceptance shall have an Interest Period as determined pursuant to
Section 4.1(b) (subject to availability). 
 (c) Discount Rate. On each borrowing date on which Bankers’ Acceptances
are to be accepted, the Administrative Agent shall advise the Borrower as to its determination of the applicable BA Discount Rate for the Bankers’ Acceptances which the Lenders have agreed to purchase. 
 (d) Purchase of Bankers’ Acceptances. Each Lender agrees to purchase a Bankers’ Acceptance accepted by it. The Borrower shall sell, and
such Lender shall purchase, the Bankers’ Acceptance at the applicable BA Discount Rate. Each Lender shall provide, to the account of the Administrative Agent, the BA Proceeds less the Stamping Fee payable by the Borrower with respect to
the Bankers’ Acceptance. The Administrative Agent shall make available to the Borrower, in accordance with the provisions of Section 2.5, the BA Proceeds less the applicable Stamping Fee with respect to each Bankers’
Acceptance purchased and each BA Equivalent Loan advanced by a Lender on the date of such acceptance. Each Lender may from time to time hold, sell, rediscount, trade or otherwise dispose of any or all Bankers’ Acceptances accepted and purchased
by it. 
 (e) Execution of Bankers’ Acceptances. Drafts drawn by the Borrower to be accepted as Bankers’ Acceptances shall
be signed by a duly authorized officer or officers of the Borrower or by its attorneys, including attorneys appointed pursuant to Section 2.9(f). Notwithstanding that any Person whose signature appears on any Bankers’ Acceptance may
no longer be an authorized signatory for the Borrower at the time of issuance of a Bankers’ Acceptance, that signature shall nevertheless be valid and sufficient for all purposes as if the authority had remained in force at the time of issuance
and any Bankers’ Acceptance so signed shall be binding on the Borrower. 
 (f) Power of Attorney for the Execution of Bankers’
Acceptances. To facilitate availment of the BA Loans, the Borrower hereby appoints each Lender as its attorney to sign and endorse on its behalf, in handwriting or by facsimile or mechanical signature as and when deemed necessary by such Lender,
blank forms of Bankers’ Acceptances. In this respect, it is each Lender’s responsibility to maintain an adequate supply of blank forms of Bankers’ Acceptances for acceptance under this Agreement. Each Lender shall exercise the same
degree of care in the custody and safekeeping of signed blank forms of Bankers’ Acceptance as it exercises in respect of its own bearer securities. The Borrower recognizes and agrees that all Bankers’ Acceptances signed and/or endorsed on
its behalf by a Lender shall bind the Borrower as fully and effectually as if signed in the handwriting of and duly issued by the proper signing officers of the Borrower. Each Lender is hereby authorized to issue such Bankers’ Acceptances
endorsed in blank in such face amounts as may be determined by such Lender; provided that the aggregate amount thereof is equal to the aggregate amount of Bankers’ Acceptances required to be accepted and purchased by such Lender. No
Lender shall be liable for any damage, loss or other claim arising by reason of any loss or improper use of any such instrument except to the extent that such damage, loss or other claim is determined by a court of competent jurisdiction by final
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Lender or its officers, employees, agents or representatives. On the 

  

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repayment in full of all Obligations or on request by the Borrower, each Lender shall cancel all forms of Bankers’ Acceptances which have been
pre-signed or pre-endorsed by or on behalf of the Borrower and which are held by such Lender and have not yet been issued in accordance herewith. Each Lender shall maintain a record with respect to Bankers’ Acceptances held by it in blank
hereunder, voided by it for any reason, accepted and purchased by it hereunder, and cancelled at their respective maturities. Each Lender agrees to provide such records to the Borrower at the Borrower’s expense upon request. 
 To facilitate the acceptance of Bankers’ Acceptances hereunder, the Borrower hereby authorizes the Lenders and irrevocably appoints each of the
Lenders as its attorney, respectively: 
 (i) to complete and sign on the Borrower’s behalf, either manually or by
facsimile or mechanical signature, the drafts to create the Bankers’ Acceptances (with, in each Lender’s discretion, the inscription “This is a depository bill subject to the Depository Bills and Notes Act (Canada)”);

 (ii) after the acceptance thereof by any Lender, to endorse on the Borrower’s behalf, either manually or by facsimile
or mechanical signature, such Bankers’ Acceptances in favor of the applicable purchaser or endorsee thereof including, in such Lender’s discretion, such Lender or a clearing house (as defined by the Depository Bills and Notes Act
(Canada)); 
 (iii) to deliver such Bankers’ Acceptances to such purchaser or to deposit such Bankers’ Acceptances
with such clearing house; and 
 (iv) to comply with the procedures and requirements established from time to time by such
Lender or such clearing house in respect of the delivery, transfer and collection of bankers’ acceptances and depository bills. 
 All Bankers’
Acceptances so completed, signed, endorsed, delivered or deposited by a Lender on behalf of the Borrower shall be binding upon the Borrower as if completed, signed, endorsed, delivered or deposited by it. The records of the Lenders and such clearing
houses shall, in the absence of manifest error, be conclusively binding on the Borrower. None of the Lenders shall be liable for any claim arising by reason of any loss or improper use of such drafts or Bankers’ Acceptances except for damages
suffered by the Borrower caused by the willful misconduct or gross negligence of such Lender, as determined by a court of competent jurisdiction by final nonappealable judgment. 
 (g) Disbursement of BA Loans. Promptly following the receipt by the Administrative Agent of a Notice of Borrowing or Notice of
Conversion/Continuation in respect of Bankers’ Acceptances, the Administrative Agent shall advise the Lenders of the notice and shall advise each Lender of the face amount of Bankers’ Acceptances to be accepted by it on the applicable
borrowing date and the applicable Interest Period (which shall be identical for all Lenders). The aggregate face amount of Bankers’ Acceptances to be accepted by a Lender shall be determined by the Administrative Agent by reference to such
Lender’s Revolving Credit Commitment Percentage of the Bankers’ Acceptances to be made on the applicable borrowing date, except 

  

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that, if the face amount of a Bankers’ Acceptance which would otherwise be accepted by a Lender would not be C$100,000, or a whole multiple thereof, the
face amount shall be increased or reduced by the Administrative Agent in its sole discretion to C$100,000, or the nearest whole multiple of that amount, as appropriate; provided that after such issuance, the aggregate principal amount of all
outstanding BA Loans from any Lender shall not at any time exceed such Lender’s Commitment less such Lender’s Revolving Credit Commitment Percentage of outstanding Revolving Credit Loans (other than BA Loans) and outstanding L/C
Obligations less such Lender’s Commitment Percentage of the Swingline Commitment less, in the case where such Lender is an Additional Credit Lender, the outstanding Additional Credit Loans. 
 (h) Waiver of Presentment and Other Conditions. The Borrower waives presentment for payment and any other defense to payment of any amounts
due to any Lender in respect of a Bankers’ Acceptance accepted and purchased by it pursuant to this Agreement which might exist solely by reason of the Bankers’ Acceptance being held, at the maturity thereof, by such Lender in its own
right and the Borrower agrees not to claim any days of grace if such Lender as holder sues the Borrower on the Bankers’ Acceptance for payment of the amount payable by the Borrower thereunder. On the specified maturity date of a Bankers’
Acceptance or the date of any prepayment thereof in accordance with this Agreement, if earlier, the Borrower shall pay to the Lender that has accepted such Bankers’ Acceptance the full face amount of such Bankers’ Acceptance and after such
payment, the Borrower shall have no further liability in respect of such Bankers’ Acceptance (except to the extent that any such payment is rescinded or reclaimed by operation of law or otherwise) and such Lender shall be entitled to all
benefits of, and be responsible for all payments due to third parties under, such Bankers’ Acceptance. 
 (i) BA Equivalent Loans by
Non-BA Lenders. Whenever the Borrower requests a BA Loan or conversion to a BA Loan or continuation of a BA Loan under this Agreement, each Non-BA Lender shall, in lieu of accepting and purchasing a Bankers’ Acceptance, make a BA Equivalent
Loan in an amount equal to the Non-BA Lender’s Revolving Credit Commitment Percentage of the BA Loan to be made on the applicable borrowing date. 
 (j) Terms Applicable to Discount Notes. As set out in the definition of “Bankers’ Acceptances”, that term includes Discount Notes and all terms of this Agreement applicable to Bankers’
Acceptances shall apply equally to Discount Notes evidencing BA Equivalent Loans with such changes as may in the context be necessary. For purposes of this Agreement: 
 (i) the term of a Discount Note shall be the same as the Interest Period for Bankers’ Acceptances accepted and purchased on the same
date in respect of the same BA Loan; 
 (ii) a stamping fee will be payable in respect of a Discount Note and shall be
calculated at the same rate and in the same manner as the Stamping Fee in respect of a Bankers’ Acceptance; and 
 (iii)
the BA Discount Rate applicable to a Discount Note shall be the BA Discount Rate applicable to Bankers’ Acceptances accepted by the Administrative Agent (or its designee), as Lender, on the same date, in respect of the same BA Loan. 

 

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 (k) Stamping Fees on Bankers’ Acceptance. The Borrower shall pay, in respect of each draft
accepted by each Lender as a Bankers’ Acceptance, a per annum stamping fee (the “Stamping Fee”) equal to (i) the Applicable Margin for LIBOR Rate Loans, changing when and as such Applicable Margin for LIBOR Rate Loans
shall change, multiplied by (ii) the face amount of such Bankers’ Acceptance, and calculated based on the number of days to maturity of such Bankers’ Acceptance divided by the number of days in the applicable year, being
365 or 366, as the case may be. Such Stamping Fee shall be payable in advance on the date of issuance of the Bankers’ Acceptance. The Borrower authorizes and directs each Lender to deduct from the BA Proceeds of Bankers’ Acceptances
purchased by such Lender for its own account, the amount of each such Stamping Fee upon the issue of each Bankers’ Acceptance. 
 (l)
Depository Bills and Notes Act. At the option of the Borrower and any Lender, Bankers’ Acceptances under this Agreement to be accepted by such Lender may be issued in the form of depository bills for deposit with The Canadian Depository
for Securities Limited pursuant to the Depository Bills and Notes Act (Canada). All depository bills so issued shall be governed by the provisions of this Agreement. 
 (m) Circumstances Making Bankers’ Acceptances Unavailable. If the Administrative Agent determines in good faith, which determination shall
constitute prima facie evidence thereof, and notifies the Borrower that, by reason of circumstances affecting the money market, there is no market for Bankers’ Acceptances, then: 
 (i) the right of the Borrower to request a BA Loan (or continuation or conversion thereof) shall be suspended until the Administrative
Agent determines that the circumstances causing such suspension no longer exist and the Administrative Agent so notifies the Borrower; and 
 (ii) any notice relating to a BA Loan (or continuation or conversion thereof) which is outstanding at such time shall be deemed to be a notice requesting Canadian Prime Rate Loans (or continuation or conversion
thereof). 
 The Administrative Agent shall promptly notify the Borrower and the Lenders of the suspension in accordance with this Section 2.9(m)
of the Borrower’s right to request a BA Loan (or continuation or conversion thereof) and of the termination of any such suspension. 
 (n) Prepayment. As provided in Section 2.6, the Borrower may pay the full face amount of a Bankers’ Acceptances to the Administrative Agent to be held by the Administrative Agent in a non-interest bearing (unless
otherwise agreed to by the Administrative Agent) account as collateral security for the Borrower’s obligations with respect to those Bankers’ Acceptances and after such payment, the Borrower shall have no further liability in respect of
such Bankers’ Acceptance (except to the extent that any such payment is rescinded or reclaimed by operation of law or otherwise) and any Lender that accepted such Bankers’ Acceptance shall be entitled to all benefits of, and be responsible
for all payments due to third parties under, such Bankers’ Acceptance. 
  

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 (o) Default. Immediately upon termination of the Commitments under Section 12.2, the
Borrower shall pay to the Administrative Agent on behalf of the Lenders the full face amount of all Bankers’ Acceptances which have not matured. Such amounts shall be held by the Administrative Agent in a non-interest bearing (unless otherwise
agreed to by the Administrative Agent) account as collateral security for the Borrower’s obligations with respect to those Bankers’ Acceptances. 
 ARTICLE III 
 LETTER OF CREDIT FACILITY 
 SECTION 3.1 L/C Commitment. Subject to the terms and conditions hereof, each Issuing
Lender, in reliance on the agreements of the other Revolving Credit Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit (“Letters of Credit”) for the account of the Borrower on any Business Day
from the Closing Date to, but not including, the fifth (5th) Business Day prior to the Maturity Date in such form as may be approved from time
to time by the applicable Issuing Lender; provided, that no Issuing Lender shall have any obligation to issue any Letter of Credit if, after giving effect to such issuance, (a) the aggregate amount of L/C Obligations would exceed the L/C
Commitment or (b) the aggregate amount of L/C Obligations would exceed the Borrowing Limit. Each Letter of Credit shall (i) be denominated in a Permitted Currency and (ii) be a standby letter of credit issued to support obligations of
the Borrower or any of its Subsidiaries, contingent or otherwise, (iii) expire on a date that is no later than the fifth (5th) Business
Day prior to the Maturity Date (provided that any such Letter of Credit may, (A) by its terms and otherwise consistent with this Agreement, provide for automatic annual renewals and (B) expire on a date that is after the Maturity
Date with the prior written consent of each of the Administrative Agent and the applicable Issuing Lender, in each such Person’s sole discretion; provided that all L/C Obligations associated with any such Letter of Credit are cash
collateralized in a manner satisfactory to the Administrative Agent and the applicable Issuing Lender on or prior to the fifth (5th) Business
Day prior to the Maturity Date and that, on the Maturity Date, all the L/C Participants are released from their L/C Obligations pertaining to such Letters of Credit) and (iv) be subject to ISP98 and, to the extent not inconsistent therewith,
the laws of the State of New York. No Issuing Lender shall at any time be obligated to issue any Letter of Credit hereunder if such issuance would conflict with, or cause such Issuing Lender or any L/C Participant to exceed any limits imposed by,
any Applicable Law. References herein to “issue” and derivations thereof with respect to Letters of Credit shall also include extensions or modifications of any outstanding Letters of Credit, unless the context otherwise requires. As of
the Closing Date, each of the Existing Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a Letter of Credit issued and outstanding hereunder. 
 SECTION 3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time to time request that an Issuing Lender issue a Letter of
Credit by delivering to such Issuing Lender at such Issuing Lender’s Lending Office and to the Administrative Agent at the Administrative Agent’s Office a Letter of Credit Application therefor, completed to the reasonable satisfaction of
the applicable Issuing Lender and the Administrative Agent, and such other certificates, documents and other papers and information as such Issuing Lender and the 

  

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Administrative Agent may reasonably request (the “L/C Supporting Documentation”) (which information shall include the Permitted Currency in
which the Letter of Credit shall be denominated). Upon receipt of any Letter of Credit Application and the L/C Supporting Documentation, the applicable Issuing Lender shall process such Letter of Credit Application and the L/C Supporting
Documentation delivered to it in connection therewith in accordance with its customary procedures and shall, after approving the same and receiving confirmation from the Administrative Agent that sufficient availability exists under the Credit
Facility for the issuance of such Letter of Credit, subject to Section 3.1 and Article V, promptly issue the Letter of Credit requested thereby (but in no event shall the applicable Issuing Lender be required to issue any Letter
of Credit earlier than three (3) Business Days after its receipt of the Letter of Credit Application therefor and the L/C Supporting Documentation relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or
as otherwise may be agreed by the applicable Issuing Lender and the Borrower. The applicable Issuing Lender shall promptly furnish to the Borrower and the Administrative Agent a copy of such Letter of Credit and the Administrative Agent shall
promptly notify each Revolving Credit Lender of the issuance of such Letter of Credit and, upon request by any Revolving Credit Lender, furnish to such Revolving Credit Lender a copy of such Letter of Credit and the amount of such Lender’s
participation therein. 
 SECTION 3.3 Commissions and Other Charges. 
 (a) Letter of Credit Commissions. The Borrower shall pay to the Administrative Agent, for the account of the each applicable Issuing Lender and the
L/C Participants, a letter of credit commission with respect to each Letter of Credit in an amount equal to the face amount of such Letter of Credit (as such amount may be reduced by (i) any permanent reduction of such Letter of Credit or
(ii) any amount which is drawn, reimbursed and no longer available under such Letter of Credit) multiplied by the Applicable Margin with respect to LIBOR Rate Loans (determined on a per annum basis). Such commission shall be payable
quarterly in arrears on the last Business Day of each calendar quarter, on the Maturity Date and thereafter on demand of the Administrative Agent. The Administrative Agent shall, promptly following its receipt thereof, distribute to each applicable
Issuing Lender and the L/C Participants all commissions received pursuant to this Section in accordance with their respective Revolving Credit Commitment Percentages. 
 (b) Issuance Fee. In addition to the foregoing commission, the Borrower shall pay to the Administrative Agent, for the account of each applicable Issuing Lender, an issuance fee with respect to each Letter of
Credit issued by such Issuing Lender in an amount equal to the face amount of such Letter of Credit multiplied by one-quarter of one percent (0.25%) per annum. Such issuance fee shall be payable quarterly in arrears on the last Business Day
of each calendar quarter commencing with the first such date to occur after the issuance of such Letter of Credit, on the Maturity Date and thereafter on demand of the applicable Issuing Lender. 
 (c) Other Costs. In addition to the foregoing fees and commissions, the Borrower shall pay or reimburse each Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit. 
  

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 (d) Payments. The commissions, fees, charges, costs and expenses payable pursuant to this
Section 3.3 shall be payable in the Permitted Currency in which the applicable Letter of Credit is denominated. 
 SECTION 3.4 L/C Participations. 
 (a) Each Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce such Issuing Lender to issue Letters of Credit hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from such Issuing Lender, on the terms and conditions hereinafter
stated, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Revolving Credit Commitment Percentage in such Issuing Lender’s obligations and rights under and in respect of each Letter
of Credit issued by such Issuing Lender hereunder and the amount of each draft paid by such Issuing Lender thereunder. Each L/C Participant unconditionally and irrevocably agrees with each Issuing Lender that, if a draft is paid under any Letter of
Credit issued by such Issuing Lender for which such Issuing Lender is not reimbursed in full by the Borrower through a Revolving Credit Loan or otherwise in accordance with the terms of this Agreement, such L/C Participant shall pay to such Issuing
Lender in the applicable Permitted Currency upon demand at such Issuing Lender’s Lending Office an amount equal to such L/C Participant’s Revolving Credit Commitment Percentage of the amount of such draft, or any part thereof, which is not
so reimbursed. 
 (b) Upon becoming aware of any amount required to be paid by any L/C Participant to the applicable Issuing Lender pursuant
to Section 3.4(a) in respect of any unreimbursed portion of any payment made by such Issuing Lender under any Letter of Credit issued by it, such Issuing Lender shall notify the Administrative Agent and each L/C Participant of the amount
and due date of such required payment and such L/C Participant shall pay to such Issuing Lender in the applicable Permitted Currency the amount specified on the applicable due date. If any such amount is paid to such Issuing Lender after the date
such payment is due, such L/C Participant shall pay to such Issuing Lender in the applicable Permitted Currency on demand, in addition to such amount, the product of (i) such amount, multiplied by (ii) the Base Rate (with respect to
payments required to be made in Dollars) or the Canadian Prime Rate (with respect to payments required to be made in Canadian Dollars), in each case as determined by the Administrative Agent, during the period from and including the date such
payment is due to the date on which such payment is immediately available to such Issuing Lender, multiplied by (iii) a fraction, the numerator of which is the number of days that elapse during such period and the denominator of which is
360. A certificate of the applicable Issuing Lender with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error. With respect to payment to an Issuing Lender of the unreimbursed amounts described in this
Section, if the L/C Participants receive notice that any such payment is due (A) prior to 2:00 p.m. on any Business Day, such payment shall be due that Business Day, and (B) after 2:00 p.m. on any Business Day, such payment shall be due on
the following Business Day. 
 (c) Whenever, at any time after the applicable Issuing Lender has made payment under any Letter of Credit and
has received from any L/C Participant its Revolving Credit Commitment Percentage of such payment in accordance with this Section, such Issuing Lender 

  

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receives any payment related to such Letter of Credit (whether directly from the Borrower or otherwise), or any payment of interest on account thereof, such
Issuing Lender will distribute to such L/C Participant its pro rata share thereof; provided, that in the event that any such payment received by such Issuing Lender shall be required to be returned by such Issuing Lender, such L/C
Participant shall return to such Issuing Lender the portion thereof previously distributed by such Issuing Lender to it. 
 SECTION 3.5
Reimbursement Obligation of the Borrower. In the event of any drawing under any Letter of Credit, the Borrower agrees to reimburse (either with the proceeds of a Revolving Credit Loan as provided for in this Section or with funds from other
sources), in same day funds in the applicable Permitted Currency in which such Letter of Credit was denominated, the applicable Issuing Lender on each date on which such Issuing Lender notifies the Borrower of the date and amount of a draft paid
under any Letter of Credit for the amount of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment. The applicable Issuing Lender shall promptly
deliver written notice of any drawing under any Letter of Credit issued by such Issuing Lender to the Administrative Agent and the Borrower. Unless the Borrower shall immediately notify the applicable Issuing Lender that the Borrower intends to
reimburse such Issuing Lender for such drawing from other sources or funds, the Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent requesting that the Lenders make a Revolving Credit Loan bearing interest
at the Base Rate (to the extent that the applicable Letter of Credit was denominated in Dollars) or the Canadian Prime Rate (to the extent that the applicable Letter of Credit was denominated in Canadian Dollars) on such date in the amount of
(a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment, and the Lenders shall make such Revolving Credit Loan, the proceeds of which shall be
applied to reimburse such Issuing Lender for the amount of the related drawing and costs and expenses. Each Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan (or a Special Agent Advance, as the case may be) in
accordance with this Section to reimburse the applicable Issuing Lender for any draft paid under a Letter of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation,
non-satisfaction of the conditions set forth in Section 2.5(a) or Article V. If the Borrower has elected to pay the amount of such drawing with funds from other sources and shall fail to reimburse the applicable Issuing Lender as
provided above, the unreimbursed amount of such drawing shall bear interest at the rate which would be payable on any outstanding Base Rate Loans (with respect to any amount payable in Dollars) or any outstanding Canadian Prime Rate Loans (with
respect to any amount payable in Canadian Dollars), in each case which were then overdue, from the date such amounts become payable (whether at stated maturity, by acceleration or otherwise) until payment in full. 
 SECTION 3.6 Obligations Absolute. The Borrower’s obligations under this Article III (including, without limitation, the
Reimbursement Obligation) shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrower may have or have had against any Issuing Lender or any beneficiary of
a Letter of Credit or any other Person. The Borrower also agrees that no Issuing Lender nor any L/C Participant shall be responsible for, and the Borrower’s Reimbursement Obligation under Section 3.5 shall not be affected by, among
other things, the validity or 

  

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genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute
between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such
transferee. No Issuing Lender shall be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions
caused by the applicable Issuing Lender’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final nonappealable judgment. The Borrower agrees that any action taken or omitted by the applicable Issuing
Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct shall be binding on the Borrower and shall not result in any liability of such Issuing
Lender or any L/C Participant to the Borrower. The responsibility of the applicable Issuing Lender to the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are in conformity with such Letter of Credit. 
 SECTION 3.7 Effect of Letter of Credit Application. To the extent that any provision of any Letter of Credit Application or L/C Supporting
Documentation related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply. 
 ARTICLE IV 
 GENERAL LOAN PROVISIONS 
 SECTION 4.1 Interest. 
 (a)
Interest Rate Options. Subject to the provisions of this Section, at the election of the Borrower: 
 (i) Revolving
Credit Loans denominated in Canadian Dollars (other than BA Loans) shall bear interest at (A) the Canadian Prime Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin; 
 (ii) Revolving Credit Loans denominated in Canadian Dollars in the form of a BA Loan (and the Banker’s Acceptance applicable thereto)
shall be discounted, and shall otherwise be subject to such other terms and conditions, set forth in Section 2.9; 
 (iii) Revolving Credit Loans denominated in Dollars shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin; 
 (iv) Swingline Loans denominated in Canadian Dollars shall bear interest at the Canadian Prime Rate plus the Applicable Margin;

  

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 (v) Swingline Loans denominated in Dollars, the EDC Credit Loans and the Fairfax Credit
Loans shall bear interest at the Base Rate plus the Applicable Margin. 
 The Borrower shall select the type of Loan, the applicable Permitted
Currency, the rate of interest and the Interest Period, if any, applicable to any Loan (other than an Additional Credit Loan) at the time a Notice of Borrowing is given pursuant to Section 2.5 or at the time a Notice of
Conversion/Continuation is given pursuant to Section 4.2. Any Loan or any portion thereof as to which the Borrower has not duly specified (i) a type of Loan shall be deemed to be a Revolving Credit Loan, (ii) a currency as
provided herein shall be deemed to be a Revolving Credit Loan denominated in Canadian Dollars or (iii) an interest rate as provided herein shall be deemed to be a Base Rate Loan (if such Loan is to be denominated in Dollars) or a Canadian Prime
Rate Loan (if such Loan is to be denominated in Canadian Dollars). 
 (b) Interest Periods. In connection with each LIBOR Rate Loan
and each BA Loan, the Borrower, by giving notice at the times described in Sections 2.5 or 4.2, as applicable, shall elect an interest period (each, an “Interest Period”) to be applicable to such Revolving
Credit Loan, which Interest Period shall be a period of one (1), two (2), three (3), or six (6) months (provided, that prior to the Conversion Date, Interest Periods of six (6) months shall only be permitted with the consent of all
Lenders); provided that: 
 (i) the Interest Period shall commence on the date of advance of or conversion to any LIBOR
Rate Loan or any BA Loan and, in the case of immediately successive Interest Periods, each successive Interest Period shall commence on the date on which the immediately preceding Interest Period expires; 
 (ii) if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next
succeeding Business Day; provided, that if any Interest Period with respect to a LIBOR Rate Loan or a BA Loan would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in
such month, such Interest Period shall expire on the immediately preceding Business Day; 
 (iii) any Interest Period with
respect to a LIBOR Rate Loan or a BA Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the relevant calendar month at the end of such Interest Period; 
 (iv) no Interest Period shall extend beyond
the Maturity Date; and 
 (v) there shall be no more than (A) four (4) Interest Periods in effect at any time with
respect to LIBOR Rate Loans and (B) ten (10) Interest Periods in effect at any time with respect to BA Loans. 
 (c) Default
Rate. Subject to Section 12.3, (i) immediately upon the occurrence and during the continuance of an Event of Default under Sections 12.1(a), (b), (i) or (j), or (ii) at the election of
the Required Agreement Lenders, upon the occurrence and during the continuance of 

  

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any other Event of Default, (A) the Borrower shall no longer have the option to request LIBOR Rate Loans, Swingline Loans, BA Loans or Letters of
Credit, (B) all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in excess of the rate then applicable thereto until the end of the applicable Interest Period and thereafter at a rate equal to two
percent (2%) in excess of the rate then applicable to (1) Canadian Prime Rate Loans (with respect to Revolving Credit Loans denominated in Canadian Dollars) or (2) Base Rate Loans (with respect to Revolving Credit Loans denominated in
Dollars), (C) all outstanding Canadian Prime Rate Loans and other Obligations denominated in Canadian Dollars arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in excess of
the rate then applicable to Canadian Prime Rate Loans and (D) all outstanding Base Rate Loans and other Obligations denominated in Dollars arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two
percent (2%) in excess of the rate then applicable to Base Rate Loans. Interest shall continue to accrue on the Obligations after the filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any act or law
pertaining to insolvency or debtor relief, whether state, federal or foreign. 
 (d) Interest Payment and Computation. 
 (i) Interest on each Canadian Prime Rate Loan and each Base Rate Loan (other than any Additional Credit Loan in respect of which accrued
interest shall only be payable on the EDC Credit Termination Date or Fairfax Credit Termination Date, as applicable) shall be due and payable in arrears on the last Business Day of each calendar quarter commencing September 30, 2006; and
interest on each LIBOR Rate Loan shall be due and payable on the last day of each Interest Period applicable thereto, and if such Interest Period extends over three (3) months, at the end of each three (3) month interval during such
Interest Period. Interest on LIBOR Rate Loans and all fees (except for Stamping Fees) shall be computed on the basis of a 360-day year and assessed for the actual number of days elapsed and interest on Canadian Prime Rate Loans, Base Rate Loans and
Stamping Fees shall be computed on the basis of a 365/366-day year and assessed for the actual number of days elapsed. 
 (ii)
For purposes of the Interest Act (Canada) and disclosure thereunder, whenever any interest or fee to be paid hereunder or in connection herewith is to be calculated on the basis of any period of time that is less than a calendar year, the
yearly rate of interest to which the rate used in such calculation is equivalent is the rate so used multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by 365 or 366, as applicable. The
rates of interest under this Agreement are nominal rates, and not effective rates or yields. The principle of deemed reinvestment of interest does not apply to any interest calculation under this Agreement. 
 (e) Maximum Rate. 
 (i) In no contingency or event whatsoever shall the aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable Law
which a court of competent jurisdiction shall, in a final determination, deem applicable hereto. 
  

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 (ii) Notwithstanding the provisions of this Section 4.1 or any other
provision of this Agreement or any other Loan Document, in no event shall the aggregate “interest” (as such term is defined in Section 347 of the Criminal Code (Canada)) exceed the effective annual rate of interest on the
“credit advanced” (as such term is defined in Section 347 of the Criminal Code (Canada)) lawfully permitted under Section 347 of the Criminal Code (Canada). The effective annual rate of interest shall be determined
in accordance with generally accepted actuarial practices and principles over the term of the applicable Loan, and in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries qualified for a period of ten
(10) years and appointed by the Administrative Agent will be conclusive for the purposes of such determination. 
 (iii)
In the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to the maximum rate permitted by Applicable
Law and the Lenders shall at the Administrative Agent’s option (A) promptly refund to the Borrower any interest received by the Lenders in excess of the maximum lawful rate or (B) apply such excess to the principal balance of the
Obligations on a pro rata basis. It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to receive, directly or indirectly in any manner whatsoever,
interest in excess of that which may be paid by the Borrower under Applicable Law. 
 SECTION 4.2 Notice and Manner of Conversion or
Continuation of Loans. 
 (a) Provided that no Default or Event of Default has occurred and is then continuing, the Borrower shall have
the option to: 
 (i) convert at any time all or any portion of any outstanding Canadian Prime Rate Loans (other than
Swingline Loans) in a principal amount equal to C$3,000,000 or any whole multiple of C$1,000,000 in excess thereof into one or more LIBOR Rate Loans denominated in Canadian Dollars; 
 (ii) convert at any time all or any portion of any outstanding Canadian Prime Rate Loans (other than Swingline Loans) in a principal
amount equal to C$1,000,000 or a whole multiple of C$500,000 in excess thereof into BA Loans; 
 (iii) upon the expiration of
any Interest Period, (A) convert all or any part of its outstanding LIBOR Rate Loans denominated in Canadian Dollars in a principal amount equal to C$1,000,000 or a whole multiple of C$500,000 in excess thereof into Canadian Prime Rate Loans
(other than Swingline Loans) or BA Loans, (B) continue such LIBOR Rate Loans as LIBOR Rate Loans, (C) convert all or any part of its outstanding BA Loans in a principal amount equal to C$1,000,000 or a whole multiple of C$500,000 in excess
thereof into Canadian Prime Rate Loans (other than Swingline Loans), (D) convert all or any part of its outstanding BA Loans in a principal amount equal to C$3,000,000 or any whole multiple of C$1,000,000 in excess thereof into one or more
LIBOR Rate Loans denominated in Canadian Dollars or (E) continue such BA Loans as BA Loans; 
  

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 (iv) convert at any time all or any portion of any outstanding Base Rate Loans (other
than Swingline Loans, EDC Credit Loans or Fairfax Credit Loans) in a principal amount equal to $3,000,000 or any whole multiple of $1,000,000 in excess thereof into one or more LIBOR Rate Loans denominated in Dollars; and 
 (v) upon the expiration of any Interest Period, (A) convert all or any part of its outstanding LIBOR Rate Loans denominated in
Dollars in a principal amount equal to $1,000,000 or a whole multiple of $500,000 in excess thereof into Base Rate Loans (other than Swingline Loans, EDC Credit Loans or Fairfax Credit Loans) or (B) continue such LIBOR Rate Loans as LIBOR Rate
Loans; 
 provided that (1) with respect to any BA Loan, any conversion of a BA Loan shall be made on, and only on, the last day of the Interest
Period applicable thereto; (2) with respect to any BA Loan, in the event that a BA Loan is to be continued as a BA Loan, the BA Proceeds arising from the continued BA Loan shall be retained by the relevant Lender to be applied by it to the face
amount of the Bankers’ Acceptance maturing on the date of such advance, and the Borrower shall pay to each Lender, on such date, an amount equal to the difference between the face amount at maturity of the maturing Bankers’ Acceptance and
the BA Proceeds of the Bankers’ Acceptance to be issued; and (3) with respect to any LIBOR Rate Loan or any BA Loan, if the Borrower fails to provide a Notice of Conversion/Continuation with respect to such Loan or any portion thereof
prior to the time period required below, such Loan shall be converted into a Base Rate Loan under the Revolving Credit Facility (if such Loan was denominated in Dollars) or a Canadian Prime Rate Loan (if such Loan was denominated in Canadian
Dollars). 
 (b) Whenever the Borrower desires to convert or continue Revolving Credit Loans as provided above, the Borrower shall give the
Administrative Agent irrevocable prior written notice in the form attached as Exhibit E (a “Notice of Conversion/Continuation”) not later than 12:00 p.m. three (3) Business Days before the day on which a proposed
conversion or continuation of such Loan is to be effective specifying (A) the Permitted Currency in which such Loan is denominated, (B) the Loans to be converted or continued, and, in the case of any LIBOR Rate Loan or BA Loan to be
converted or continued, the last day of the Interest Period therefor, (C) the effective date of such conversion or continuation (which shall be a Business Day), (D) the principal amount of such Loans to be converted or continued, and
(E) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan or BA Loan. The Administrative Agent shall promptly notify the Lenders of such Notice of Conversion/Continuation. 
 SECTION 4.3 Fees. 
 (a)
Revolving Credit Commitment Fee. The Borrower shall pay to the Administrative Agent, for the account of the Revolving Credit Lenders, a non-refundable commitment fee at a rate per annum equal to 1.00% on the average daily unused portion of
the Revolving Credit Commitments of all Lenders as in effect from time to time during the period 

  

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commencing on the Tenth Amendment Effective Date and ending on the Maturity Date. The revolving credit commitment fee shall be payable for each calendar
quarter in arrears on the last Business Day of such calendar quarter during the term of this Agreement commencing with the calendar quarter ending December 31, 2008 and ending on the Maturity Date. Such revolving credit commitment fee shall be
distributed by the Administrative Agent to the Lenders pro rata in accordance with the Lenders’ respective Revolving Credit Commitment Percentages. 
 (b) Duration Fee. The Borrower shall pay to the Administrative Agent, for the account of the Tenth Amendment Consenting Lenders, a non-refundable duration fee in the amounts and on the dates set forth below:

  

			
	 Date of Payment
	  	 Amount of Duration Fee

	March 15, 2009	  	0.50% on the Commitment of each Tenth Amendment Consenting Lender as in effect on March 15, 2009 (other than such Lender’s Additional Credit Commitment)
		
	April 14, 2009	  	0.50% on the Commitment of each Tenth Amendment Consenting Lender as in effect on April 14, 2009 (other than such Lender’s Additional Credit Commitment)

 Such duration fee shall be distributed by the Administrative Agent to the Tenth Amendment
Consenting Lenders. 
 (c) Swingline Commitment Fees. 
 The Borrower shall pay to the Administrative Agent, for the account of the Swingline Lender, a non-refundable commitment fee at a rate per
annum equal to 1.00% on the average daily unused portion of the Swingline Commitment as in effect from time to time during the period commencing on the Tenth Amendment Effective Date and ending on the Maturity Date (except that no such fee shall
accrue during a Reallocation Period). The swingline commitment fee shall be payable for each calendar quarter in arrears on the last Business Day of such calendar quarter during the term of this Agreement commencing with the calendar quarter ending
December 31, 2008 and ending on the Maturity Date. Such swingline commitment fee shall be distributed by the Administrative Agent to the Swingline Lender or shall be remitted directly by the Borrower to the Swingline Lender. 
 (d) Other Fees. 
 The
Borrower agrees to pay any fees (and other expenses) as set forth in the Fee Letter. 
  

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 SECTION 4.4 Manner of Payment. Except as specifically provided herein, each payment by the
Borrower on account of the principal of or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement Obligation) payable to the Lenders under this Agreement shall be made not later than 2:00 p.m. on the date
specified for payment under this Agreement to the Administrative Agent at the Administrative Agent’s Office for the account of the Lenders (other than as set forth below) pro rata in accordance with their respective Commitment
Percentages or, with respect to any such payment in accordance with the terms hereof under the EDC Credit Facility or the Fairfax Credit Facility, as applicable, as may otherwise be due to the EDC Credit Lender or the Fairfax Credit Lender, as
applicable (except as specified below), in the applicable Permitted Currency, in immediately available funds and shall be made without any setoff, counterclaim or deduction whatsoever. Any payment received after such time but before 3:00 p.m. on
such day shall be deemed a payment on such date for the purposes of Section 12.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day. Any payment received after 3:00 p.m. shall be deemed to
have been made on the next succeeding Business Day for all purposes. Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to each Lender at its Lending Office its pro rata share of
such payment in accordance with such Lender’s Commitment Percentage or, with respect to any such payment in accordance with the terms hereof under the EDC Credit Facility or the Fairfax Credit Facility, as applicable, as may otherwise be due to
the EDC Credit Lender or the Fairfax Credit Lender as applicable (except as specified below) and shall wire advice of the amount of such credit to each Lender. Each payment to the Administrative Agent of the applicable Issuing Lender’s fees or
L/C Participants’ commissions shall be made in like manner, but for the account of the applicable Issuing Lender or the L/C Participants, as the case may be. Each payment to the Administrative Agent of Administrative Agent’s fees or
expenses shall be made for the account of the Administrative Agent and any amount payable to any Lender under Sections 4.9, 4.10, 4.11 or 14.3 shall be paid to the Administrative Agent for the account of the
applicable Lender. Subject to Section 4.1(b)(ii), if any payment under this Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such
extension of time shall in such case be included in computing any interest if payable along with such payment. 
 Notwithstanding anything to the contrary in
this Section, to the extent that any Revolving Credit Loans made hereunder are made in accordance with the Revolving Credit Commitment Percentages of the Lenders, payments with respect to such Revolving Credit Loans shall be allocated in accordance
with the Revolving Credit Commitment Percentages of the Lenders. 
 SECTION 4.5 Evidence of Indebtedness. 
 (a) Extensions of Credit. The Extensions of Credit made by each Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Extensions of Credit made by the
Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect 

  

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to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative
Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to
such Lender (through the Administrative Agent) a Revolving Credit Note and/or Swingline Note and/or Discount Note and/or EDC Credit Note and/or Fairfax Credit Note, as applicable, which shall evidence such Lender’s Revolving Credit Loans and/or
Swingline Loans and/or BA Equivalent Loans and/or EDC Credit Loans and/or Fairfax Credit Loans, as applicable, in addition to such accounts or records. Each Lender may attach schedules to its Notes and endorse thereon the date, amount and maturity
of its Loans and payments with respect thereto. 
 (b) Participations. In addition to the accounts and records referred to in
subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swingline Loans. In
the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. 
 SECTION 4.6 Adjustments. 
 (a) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any
of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations (other than pursuant to Sections 4.9,
4.10, 4.11 or 4.13 hereof) greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (i) notify the Administrative Agent of such fact, and (ii) purchase (for cash
at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that: 
 (A) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest,
and 
 (B) the provisions of this paragraph shall not be construed to apply to (1) any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement or (2) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Swingline Loans and
Letters of Credit to any assignee or participant, other than to the Borrower or any of its Subsidiaries (as to which the provisions of this paragraph shall apply). 
  

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 Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that
any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Credit
Party in the amount of such participation. 
 (b) (i) Notwithstanding anything to the contrary in this Agreement: 
 (A) the Administrative Agent may at any time, and the Administrative Agent shall upon the termination of the Credit Facility pursuant to
Section 12.2 or upon a request for refunding, or requirement for participation, of any outstanding Swingline Loans pursuant to and in accordance with Section 2.2, concurrently (1) reallocate all outstanding Revolving
Credit Loans in the applicable Permitted Currency in which such Revolving Credit Loans were originally made such that the aggregate principal amount of all outstanding Revolving Credit Loans shall be equal to each Lender’s Revolving Credit
Commitment Percentage (which shall be determined based on the Revolving Credit Commitment applicable to each Lender during a Reallocation Period) of the aggregate principal amount of all outstanding Revolving Credit Loans at such time and
(2) require all Swingline Loans to be refunded, or participated, pursuant to, and in accordance with, Section 2.2; 
 (B) if the Credit Facility has not been terminated pursuant to Section 12.2 and the Default or Event or Default, if any, which gave rise to the reallocations and refundings referred to in clause (A) above has been
cured or waived, as applicable, then the Administrative Agent shall, on the date of such cure or waiver, concurrently (1) reallocate all outstanding Revolving Credit Loans in the applicable Permitted Currency in which such Revolving Credit
Loans were originally made such that the aggregate principal amount of all outstanding Revolving Credit Loans shall be equal to each Lender’s Revolving Credit Commitment Percentage (which shall be determined based on the Revolving Credit
Commitment applicable to each Lender at any time other than during a Reallocation Period) of the aggregate principal amount of all outstanding Revolving Credit Loans at such time and (2) reallocate that portion of the Swingline Loans which were
refunded pursuant to, and in accordance with, Section 2.2 or clause (A)(2) above (other than any portion of such Swingline Loans which were repaid by the Borrower) to the Swingline Lender as outstanding Swingline Loans in the
applicable Permitted Currency in which such Swingline Loans were originally made (which Swingline Loans shall bear interest at the Base Rate (with respect to any such Swingline Loans denominated in Dollars) or the Canadian Base Rate (with respect to
any such Swingline Loans denominated in Canadian Dollars)). 
 In any such case set forth in clause (A) or
clause (B) above, (I) each applicable Lender shall make all such payments as the Administrative Agent shall request to give effect to such reallocation and such refunding (which such payments shall be net of any amount to be
received by such Lender), (II) all such payments shall be made in the 

  

 80 

 
applicable Permitted Currency immediately upon any such demand by the Administrative Agent but in no event later than 1:00 p.m. on the next succeeding
Business Day after such demand is made, (III) upon receipt of such payments, the Administrative Agent shall distribute the proceeds thereof to the applicable Lenders in the applicable Permitted Currency to give effect to the reallocation or
refunding to which such proceeds relate, (IV) no Lender’s obligation to make any payment pursuant to this Section shall be affected by any other Lender’s failure to make any payment required thereby, nor shall any Lender’s payment
obligation be increased as a result of any such failure of any other Lender to fund its payment obligation. Furthermore, the Borrower agrees to be bound by any such adjustments and (V) each Lender acknowledges and agrees that its obligation to
make such payments in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Article V
at the time of the applicable reallocation pursuant to this Section. 
 (ii) The Borrower shall pay to each applicable Lender
on demand, in the applicable Permitted Currency, with notice to the Administrative Agent, the amount of the applicable Loans being reallocated pursuant to this Section to the extent amounts received from the other applicable Lenders are not
sufficient to pay the amounts required to be paid pursuant to the reallocations pursuant to this Section. In addition, the Borrower hereby authorizes any applicable Lender making such demand (with notice to the Administrative Agent and the Borrower)
to charge any account maintained by the Borrower with such Lender (up to the amount available therein) in order to immediately pay such Lender the amount of such reallocated Loans to the extent amounts received from the other applicable Lenders are
not sufficient to pay the amounts required to be paid pursuant to the reallocations pursuant to this Section. If any portion of any such amount paid to such Lender shall be recovered by or on behalf of the Borrower from such Lender in bankruptcy or
otherwise, the loss of the amount so recovered shall be ratably shared among all the Lenders in accordance with their respective Commitment Percentages. 
 (iii) Furthermore, if, prior to the reallocation described in clause (b)(i)(A)(1) of this Section, one of the events described in Section 12.1(i) or (j) shall have occurred, the
Swingline Lender agrees and acknowledges that the Swingline Lender will purchase an undivided participating interest in the outstanding Revolving Credit Loans in an amount equal to its Commitment Percentage of the aggregate amount of such
outstanding Revolving Credit Loans. The Swingline Lender will immediately transfer to the Administrative Agent for the account of each Revolving Credit Lender (other than the Swingline Lender), in immediately available funds in the applicable
Permitted Currency, the amount of its participation and upon receipt thereof the Administrative Agent will (A) deliver to the Swingline Lender a certificate evidencing such participation dated the date of receipt of such funds and for the
aggregate of such amounts and (B) distribute the proceeds thereof to the applicable Lenders in the applicable Permitted Currency to give effect to such participation. Whenever, at any time after any Lender or the Administrative Agent has
received from the Swingline Lender the Swingline Lender’s participating interest in a Revolving Credit Loan, such Lender or the Administrative 

  

 81 

 
Agent receives any payment on account thereof, such Lender or the Administrative Agent will distribute to the Swingline Lender its participating interest in
such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which the Swingline Lender’s participating interest was outstanding and funded). 
 SECTION 4.7 Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the Administrative Agent. The obligations of the
Lenders under this Agreement to make the Revolving Credit Loans, EDC Credit Loans, Fairfax Credit Loans and issue or participate in Swingline Loans or Letters of Credit are several and are not joint or joint and several. Unless the Administrative
Agent shall have received notice from a Lender prior to a proposed borrowing date with respect to a LIBOR Rate Loan or a BA Loan or prior to 12:00 noon on a proposed borrowing date with respect to a Canadian Prime Rate Loan or a Base Rate Loan that
such Lender will not make available to the Administrative Agent such Lender’s ratable portion of the amount to be borrowed on such date (which notice shall not release such Lender of its obligations hereunder), the Administrative Agent may
assume that such Lender has made such portion available to the Administrative Agent on the proposed borrowing date in accordance with Section 2.5(b), and the Administrative Agent may (but shall not be required to), in reliance upon such
assumption, make available to the Borrower on such date a corresponding amount. If such amount is made available to the Administrative Agent on a date after such borrowing date, such Lender shall pay to the Administrative Agent on demand an amount,
until paid, equal to (a) with respect to any amount to be borrowed denominated in Dollars, the product of (i) the amount not made available by such Lender in accordance with the terms hereof, multiplied by (ii) the daily average
Federal Funds Rate during such period as determined by the Administrative Agent, multiplied by (iii) a fraction, the numerator of which is the number of days that elapse from and including such borrowing date to the date on which such amount
not made available by such Lender in accordance with the terms hereof shall have become immediately available to the Administrative Agent, and the denominator of which is 360 and (b) with respect to any amount to be borrowed denominated in
Canadian Dollars, the amount not made available by such Lender in accordance with the terms hereof and interest thereon at a rate per annum equal to the Administrative Agent’s aggregate marginal cost (including the cost of maintaining any
required reserves or deposit insurance and of any fees, penalties, overdraft charges or other costs or expenses incurred by the Administrative Agent as a result of the failure to deliver funds hereunder) of carrying such amount. A certificate of the
Administrative Agent with respect to any amounts owing under this Section shall be conclusive, absent manifest error. If such Lender’s Revolving Credit Commitment Percentage of such borrowing is not made available to the Administrative Agent by
such Lender within three (3) Business Days after such borrowing date, the Administrative Agent shall be entitled to recover such amount made available by the Administrative Agent with interest thereon at the rate per annum applicable to Base
Rate Loans hereunder (with respect to any amount denominated in Dollars) or Canadian Prime Rate Loans hereunder (with respect to any amount denominated in Canadian Dollars), in each case, on demand, from the Borrower. The failure of any Lender to
make available its Revolving Credit Commitment Percentage of any Revolving Credit Loan requested by the Borrower shall not relieve it or any other Lender of its obligation, if any, hereunder to make its Revolving Credit Commitment Percentage of such
Revolving Credit Loan available on the borrowing date, but no Lender shall be responsible for the failure of any other Lender to make its Revolving Credit Commitment Percentage of such Revolving Credit Loan available on the borrowing date.

  

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 SECTION 4.8 Changed Circumstances. 
 (a) Circumstances Affecting LIBOR Rate and BA Loan Availability. If with respect to any Interest Period the Administrative Agent or any Lender
(after consultation with the Administrative Agent) shall determine that, by reason of circumstances affecting the foreign exchange and interbank markets generally, deposits in eurodollars, Dollars or Canadian Dollars in the applicable amounts are
not being quoted via Reuters Page LIBOR01 (or any successor page) or offered to the Administrative Agent or such Lender for such Interest Period then the Administrative Agent shall forthwith give notice thereof to the Borrower. Thereafter, until the
Administrative Agent notifies the Borrower that such circumstances no longer exist, the obligation of the Lenders to make such LIBOR Rate Loans or BA Loans, as applicable, and the right of the Borrower to convert any Loan to or continue any Loan as
a LIBOR Rate Loan or a BA Loan, as applicable, shall be suspended, and the Borrower shall repay in full (or cause to be repaid in full) the then outstanding principal amount of each such LIBOR Rate Loan or each such BA Loan, as applicable, together
with accrued interest thereon, on the last day of the then current Interest Period applicable to such LIBOR Rate Loan or such BA Loan, as applicable, or convert the then outstanding principal amount of each such LIBOR Rate Loan or BA Loan, as
applicable, to a Base Rate Loan (with respect to any such Loan denominated in Dollars) or a Canadian Prime Rate Loan (with respect to any such Loan denominated in Canadian Dollars) as of the last day of such Interest Period. 
 (b) Laws Affecting LIBOR Rate and BA Loan Availability. If, after the date hereof, the introduction of, or any change in, any Applicable Law or
any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Lenders (or any of their respective
Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any of their respective
Lending Offices) to honor its obligations hereunder to make or maintain any LIBOR Rate Loan or any BA Loan, such Lender shall promptly give notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice to the
Borrower and the other Lenders. Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR Rate Loans or BA Loans and the right of the Borrower to
convert any Loan or continue any Loan as a LIBOR Rate Loan or a BA Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans (with respect to any Loan denominated in Dollars) or Canadian Prime Rate Loans (with respect to
any Loan denominated in Canadian Dollars) hereunder, and (ii) if any of the Lenders may not lawfully continue to maintain a LIBOR Rate Loan or a BA Loan, as applicable, to the end of the then current Interest Period applicable thereto as a
LIBOR Rate Loan or a BA Loan, as applicable, the applicable LIBOR Rate Loan shall immediately be converted to a Base Rate Loan (with respect to any such Loan denominated in Dollars) or a Canadian Prime Rate Loan (with respect to any such Loan
denominated in Canadian Dollars) for the remainder of such Interest Period. 
  

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 (c) Regulatory Limitations. In the event, as a result of increases in the value of any Permitted
Currency against the Dollar or for any other reason, the obligation of any of the Lenders to make Loans (taking into account the Dollar Amount of the Obligations and all other indebtedness required to be aggregated under any Applicable Law) is
determined by such Lender to exceed its then applicable legal lending limit under such Applicable Law, the amount of additional Extensions of Credit such Lender shall be obligated to make or issue or participate in hereunder shall immediately be
reduced to the maximum amount which such Lender may legally advance (as determined by such Lender), the obligation of each of the remaining Lenders hereunder shall be proportionately reduced, based on their applicable Revolving Credit Commitment
Percentages or Commitment Percentages, as applicable, and, to the extent necessary under such laws and regulations (as determined by each of the Lenders, with respect to the applicability of such laws and regulations to itself), and the Borrower
shall reduce, or cause to be reduced, complying to the extent practicable with the remaining provisions hereof, the Obligations outstanding hereunder by an amount sufficient to comply with such maximum amounts. 
 SECTION 4.9 Indemnity. The Borrower hereby indemnifies each of the Lenders against any loss or expense which may arise or be attributable to
each Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a consequence of any failure by the Borrower to make any payment when due of any amount due hereunder in
connection with a LIBOR Rate Loan or a BA Loan, (b) due to any failure of the Borrower to borrow, continue or convert on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation or (c) due to any payment,
prepayment or conversion of any LIBOR Rate Loan or any BA Loan on a date other than the last day of the Interest Period therefor. The amount of such loss or expense shall be determined, in the applicable Lender’s sole discretion, based upon the
assumption that such Lender funded its Revolving Credit Commitment Percentage or Commitment Percentage, as applicable, of the LIBOR Rate Loans or BA Loans in the London interbank market or other applicable market and using any reasonable attribution
or averaging methods which such Lender deems appropriate and practical. A certificate of such Lender setting forth the basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded to the Borrower through the
Administrative Agent and shall be conclusively presumed to be correct save for manifest error.” 
 SECTION 4.10 Increased
Costs. 
 (a) Increased Costs Generally. If any Change in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate) or an Issuing Lender; 
 (ii) subject any Lender or any Issuing Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any
participation in a Letter of Credit or any LIBOR Rate Loan or BA Loan made by it, or change the basis of 

  

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taxation of payments to such Lender or such Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 4.11 and the imposition of, or any change in the rate of any Excluded Taxes payable by such Lender or such Issuing Lender); or 
 (iii) impose on any Lender or any Issuing Lender (or their respective Lending Offices) or the London interbank or other applicable market any other condition, cost or expense affecting this Agreement or LIBOR Rate
Loans or BA Loans made by such Lender or any Letter of Credit or participation therein; 
 and the result of any of the foregoing shall be to increase the
cost to such Lender of making, converting into or maintaining any LIBOR Rate Loan or BA Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or such Issuing Lender of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such Issuing Lender hereunder (whether of principal,
interest or any other amount) then, upon written request of such Lender or such Issuing Lender, the Borrower shall promptly pay to any such Lender or such Issuing Lender, as the case may be, such additional amount or amounts as will compensate such
Lender or such Issuing Lender, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital
Requirements. If any Lender or any Issuing Lender determines that any Change in Law affecting such Lender or such Issuing Lender or any lending office of such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s
holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Lender’s capital or on the capital of such Lender’s or such Issuing Lender’s
holding company, if any, as a consequence of this Agreement, the Commitment of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Lender, to a level below
that which such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Lender’s policies and
the policies of such Lender’s or such Issuing Lender’s holding company with respect to capital adequacy), then from time to time upon written request of such Lender or such Issuing Lender the Borrower shall promptly pay to such Lender or
such Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company for any such reduction suffered. 
 (c) Certificates for Reimbursement. A certificate of a Lender or an Issuing Lender setting forth the amount or amounts necessary to compensate
such Lender or such Issuing Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender
or such Issuing Lender, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof. 
  

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 (d) Exchange Indemnification and Increased Costs. The Borrower shall, upon demand from the
Administrative Agent, pay to the Administrative Agent or any applicable Lender, the amount of (i) any loss or cost or increased cost incurred by the Administrative Agent or any applicable Lender, (ii) any reduction in any amount payable to
or in the effective return on the capital to the Administrative Agent or any applicable Lender or (iii) any currency exchange loss, that Administrative Agent or any Lender sustains as a result of any payment being made by the Borrower in a
currency other than that originally extended to the Borrower. A certificate of the Administrative Agent or the applicable Lender, as the case may be, setting forth in reasonable detail the basis for determining such additional amount or amounts
necessary to compensate the Administrative Agent or the applicable Lender shall be conclusively presumed to be correct save for manifest error 
 (e) Delay in Requests. Failure or delay on the part of any Lender or any Issuing Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Lender’s right to demand
such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date
that such Lender or such Issuing Lender, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Lender’s intention to claim compensation
therefor (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof). 
 SECTION 4.11 Taxes. 
 (a)
Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other
Taxes; provided that if the Borrower shall be required by Applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing Lender, as the case may be, receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with Applicable Law. 
 (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of paragraph (a) above, the Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with Applicable Law. 
 (c) Indemnification by the Borrower. The Borrower
shall indemnify the Administrative Agent, each Lender and each Issuing Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender or such Issuing Lender, as the case may 

  

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be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or an Issuing Lender (with a copy to the Administrative Agent), or by
the Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Lender, shall be conclusive absent manifest error. 
 (d)
Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by Applicable Law as will permit such
payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably
requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. 
 Without limiting the obligations of the Lenders set forth above regarding delivery of certain forms and documents to establish each Lender’s status
for Canadian withholding tax purposes, each Lender agrees promptly to deliver to the Administrative Agent or the Borrower as the Administrative Agent or the Borrower shall reasonably request, on or prior to the Closing Date, and in a timely fashion
thereafter, such other documents and forms required by any relevant taxing authorities under the Applicable Laws of any other jurisdiction, duly executed and completed by such Lender, as are required under such Applicable Laws to confirm such
Lender’s entitlement to any available exemption from, or reduction of, applicable withholding taxes in respect of all payments to be made to such Lender outside of Canada by the Borrower pursuant to this Agreement, the other Loan Documents or
otherwise to establish such Lender’s status for withholding tax purposes in such other jurisdiction. Each Lender shall promptly (i) notify the Administrative Agent of any change in circumstances which would modify or render invalid any
such claimed exemption or reduction, and (ii) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office)
to avoid any requirement of Applicable Laws of any such jurisdiction that the Borrower make any deduction or withholding for taxes from amounts payable to such Lender. Additionally, the Borrower shall promptly deliver to the Administrative Agent or
any Lender, as the Administrative Agent or such Lender shall reasonably request, on or prior to the Closing Date, and in a timely fashion thereafter, such documents and forms required by any relevant taxing authorities under the 

  

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Applicable Laws of any jurisdiction, duly executed and completed by the Borrower, as are required to be furnished by such Lender or the Administrative Agent
under such Applicable Laws in connection with any payment by the Administrative Agent or any Lender of Taxes or Other Taxes, or otherwise in connection with the Loan Documents, with respect to such jurisdiction. 
 (f) Treatment of Certain Refunds. If the Administrative Agent, a Lender or an Issuing Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an amount equal to such refund
(but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent,
such Lender or such Issuing Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative
Agent, such Lender or such Issuing Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or such
Issuing Lender in the event the Administrative Agent, such Lender or such Issuing Lender is required to repay such refund to such Governmental Authority. This paragraph shall not be construed to require the Administrative Agent, any Lender or any
Issuing Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 
 (g) Survival. Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section shall survive the payment in full of
the Obligations and the termination of the Commitment. 
 SECTION 4.12 Mitigation Obligations; Replacement of Lenders.

 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 4.10, or requires the
Borrower to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.11, then such Lender shall use reasonable efforts to designate a different lending office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 4.10 or Section 4.11, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
 (b) Replacement of Lenders. If any Lender requests compensation under Section 4.10, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 4.11, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and 

  

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effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in, and consents required by, Section 14.11), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that: 
 (i) the Borrower shall have
paid to the Administrative Agent the assignment fee specified in Section 14.11; 
 (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans and participations in Letters of Credit, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including
any amounts under Section 4.9) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); 
 (iii) in the case of any such assignment resulting from a claim for compensation under Section 4.10 or payments required to be
made pursuant to Section 4.11, such assignment will result in a reduction in such compensation or payments thereafter; and 
 (iv) such assignment does not conflict with Applicable Law. 
 A Lender shall not be required to make any such assignment or
delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
 SECTION 4.13 Security. The Obligations of the Borrower shall be secured as provided in the Security Documents; provided, that the
Additional Credit Loans will not benefit from, and the EDC Credit Lender and the Fairfax Credit Lender each hereby renounces in favor of the other Secured Parties and the U.S. Secured Parties, all rights, title and interest each such Person may
otherwise have in the New U.S. Borrower Fixed Assets. In furtherance of the foregoing, if an Additional Credit Lender receives any proceeds or any other amounts with respect to the New U.S. Borrower Fixed Assets (or any portion thereof), it shall:

 (A) segregate and hold such amounts in trust for the U.S. Administrative Agent, the other Secured Parties and the U.S.
Secured Parties; and 
 (B) forthwith pay over such amounts, in the same form as received, to the U.S Administrative Agent.

 The parties hereto (including, without limitation, the Additional Credit Lenders) hereby agree that the U.S. Administrative Agent and each U.S. Secured
Party are intended third party beneficiaries of this Section 4.13 regardless of whether the U.S. Administrative Agent or any U.S. Secured Party shall have executed or consented to this Agreement. 
  

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 SECTION 4.14 Additional Subsidiary Borrowers. The Borrower may designate any Domestic
Subsidiary as a Subsidiary Borrower under this Agreement and the other Loan Documents upon satisfaction of each of the following conditions. 
 (a) The Borrower shall have delivered to the Administrative Agent a written notice requesting that such Domestic Subsidiary be designated as a new Subsidiary Borrower. The Administrative Agent agrees that promptly upon receipt of such
notice it will forward such notice to the Lenders requesting their approval of such Domestic Subsidiary as a Subsidiary Borrower. If the Required Agreement Lenders approve such designation (which approval shall occur no earlier than five
(5) Business Days after the Lenders receive written notice of the request that such Domestic Subsidiary be designated as a new Subsidiary Borrower), the applicable Domestic Subsidiary shall be deemed a “Borrower” under this Agreement
and the other Loan Documents and all references herein (other than the references in Article V, Article VI, Article VII, Article VIII, Article IX and Article X of this Agreement) to “Borrower”
shall be deemed to include the Subsidiary Borrower. 
 (b) The Administrative Agent shall have received a duly executed supplement to this
Agreement and any other applicable Loan Documents joining such Domestic Subsidiary as a Subsidiary Borrower hereunder (such supplement to be in form and substance reasonably satisfactory to the Administrative Agent). 
 (c) Such Domestic Subsidiary shall deliver to the Administrative Agent such documents and certificates referred to in Section 5.2 as may be
reasonably requested by the Administrative Agent (it being agreed by the Borrower that, if the designation of such Domestic Subsidiary as a Subsidiary Borrower obligates the Administrative Agent or any Lender to comply with “know your
customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall, promptly upon the request of the Administrative Agent or any Lender, supply such documentation
and other evidence as is reasonably requested by the Administrative Agent or any Lender in order for the Administrative Agent or such Lender to carry out, and be satisfied it has complied with the results of, all necessary “know your
customer” or other similar checks under all Applicable Laws). 
 (d) (i) If not previously granted to the Administrative Agent under the
Security Documents, such Domestic Subsidiary shall pledge a security interest in all Collateral owned by such Domestic Subsidiary by delivering to the Administrative Agent a duly executed supplement to each applicable Security Document or such
other documents as the Administrative Agent shall reasonably deem appropriate for such purpose. 
 (ii) To the extent not
previously delivered to the Administrative Agent under the Security Documents, the Borrower shall deliver to the Administrative Agent such original Capital Stock or other certificates and stock or other transfer powers evidencing the Capital Stock
of such Domestic Subsidiary and, to the extent required by the Security Documents, all Capital Stock or other certificates and stock or other transfer powers evidencing the Capital Stock owned by such Domestic Subsidiary. 
  

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 (e) The Borrower shall deliver to the Administrative Agent such updated Schedules to the Loan Documents
as requested by the Administrative Agent with respect to such Domestic Subsidiary. 
 (f) The Borrower shall deliver to the Administrative
Agent such other documents (including, without limitation, legal opinions) as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
 (g) The obligations of each Subsidiary Borrower hereunder and under the other Loan Documents shall be joint and several with the Obligations of the
Borrower and each other Subsidiary Borrower. 
 ARTICLE V 
 CLOSING; CONDITIONS OF CLOSING AND BORROWING 
 SECTION 5.1 Closing. The closing shall
take place at the offices of Kennedy Covington Lobdell & Hickman, L.L.P. at 10:00 a.m. on May 31, 2006 or at such other place, date and time as the parties hereto shall mutually agree. 
 SECTION 5.2 Conditions to Closing and Initial Extensions of Credit. The obligation of the Lenders to close this Agreement and to make the
initial Loan or issue or participate in the initial Letter of Credit, if any, is subject to the satisfaction of each of the following conditions: 
 (a) Executed Loan Documents. This Agreement, a Revolving Credit Note in favor of each Lender (if requested thereby), a Swingline Note in favor of the Swingline Lender (if requested thereby), a Discount Note in favor of each Non-BA
Lender (if requested thereby) and the Security Documents, together with any other applicable Loan Documents, shall have been duly authorized, executed and delivered to the Administrative Agent by the parties thereto, shall be in full force and
effect and no Default or Event of Default shall exist hereunder or thereunder. 
 (b) Closing Certificates; Etc. The Administrative
Agent shall have received each of the following in form and substance reasonably satisfactory to the Administrative Agent: 
 (i) Officer’s Certificate of the Original U.S. Borrower. A certificate from a Responsible Officer of the Original U.S. Borrower to the effect that all representations and warranties of the Original U.S. Borrower and its
Subsidiaries contained in this Agreement and the other Loan Documents are true, correct and complete in all material respects (provided that any representation or warranty that is qualified by materiality or by reference to Material Adverse
Effect shall be true, correct and complete in all respects); that neither the Original U.S. Borrower nor any of its Subsidiaries is in violation of any of the covenants contained in this Agreement and the other Loan Documents; that, after giving
effect to the transactions contemplated by this Agreement, no Default or Event of Default has occurred and is continuing; and that each of the Credit Parties, as applicable, has satisfied each of the conditions set forth in Section 5.2
and Section 5.3. 
  

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 (ii) Certificate of Secretary of each Credit Party. A certificate of a Responsible
Officer of each Credit Party certifying as to the incumbency and genuineness of the signature of each officer of such Credit Party executing Loan Documents to which it is a party and certifying that attached thereto is a true, correct and complete
copy of (A) the articles or certificate of incorporation or formation (or equivalent documentation) of such Credit Party and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of
incorporation or formation, (B) the bylaws or other governing document (or equivalent documentation) of such Credit Party as in effect on the Closing Date, (C) resolutions duly adopted by the board of directors or other governing body of
such Credit Party authorizing the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and (D) each certificate required to be delivered pursuant
to Section 5.2(b)(iii). 
 (iii) Certificates of Good Standing. Certificates as of a recent date of the
good standing (or equivalent documentation) of each Credit Party under the laws of its jurisdiction of organization and, to the extent requested by the Administrative Agent, each other jurisdiction where such Credit Party is qualified to do business
and, to the extent available, a certificate of the relevant taxing authorities of such jurisdictions certifying that such Credit Party has filed required tax returns and owes no delinquent taxes. 
 (iv) Opinions of Counsel. Favorable opinions of counsel to the Credit Parties (including, without limitation, applicable local
counsel in the State of New York, the provinces of Québec, Ontario, Nova Scotia and New Brunswick, and any other applicable jurisdiction) addressed to the Administrative Agent and the Lenders with respect to the Credit Parties, the Loan
Documents and such other matters as the Lenders shall request. 
 (c) Personal Property Collateral. 
 (i) Filings and Recordings. The Administrative Agent shall have received all filings and recordations that are necessary to perfect
the security interests of the Administrative Agent, on behalf of itself and the Lenders, in the Collateral shall have been received by the Administrative Agent and the Administrative Agent shall have received evidence reasonably satisfactory to the
Administrative Agent that upon such filings and recordations such security interests constitute valid and perfected first priority Liens thereon. 
 (ii) Lien Search. The Administrative Agent shall have received the results of a Lien search (including a search as to judgments, pending litigation and tax matters), in form and substance reasonably
satisfactory thereto, made against each of the Credit Parties (other than the U.S. Borrower) under the PPSA and the CCQ (or applicable judicial docket) as in effect in any province in which any of the assets of such Credit Party are located,
indicating among other things that its assets are free and clear of any Lien except for Permitted Liens. 
  

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 (iii) Hazard and Liability Insurance. The Administrative Agent shall have received
certificates of property hazard, business interruption and liability insurance, evidence of payment of all insurance premiums for the current policy year of each insurance policy (naming the Administrative Agent as additional insured on all
certificates for liability insurance and loss payee with respect to the Collateral on all certificates for property insurance), and, if requested by the Administrative Agent, copies (certified by a Responsible Officer) of insurance policies in the
form required under the Security Documents and otherwise in form and substance reasonably satisfactory to the Administrative Agent. 
 (d)
Consents; Defaults. 
 (i) Governmental and Third Party Approvals. The Credit Parties shall have received all
material governmental, shareholder and third party consents and approvals necessary (or any other material consents as determined in the reasonable discretion of the Administrative Agent) in connection with the transactions contemplated by this
Agreement and the other Loan Documents and the other transactions contemplated hereby and all applicable waiting periods shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or impose
any material adverse conditions on any of the Credit Parties or such other transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent
could reasonably be expected to have such effect. 
 (ii) No Injunction, Etc. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or proposed before any Governmental Authority to enjoin, restrain, or prohibit, or to obtain substantial damages in respect of, or which is related to or arises out of this Agreement
or the other Loan Documents or the consummation of the transactions contemplated hereby or thereby, or which, in the Administrative Agent’s sole discretion, would make it inadvisable to consummate the transactions contemplated by this Agreement
or the other Loan Documents or the consummation of the transactions contemplated hereby or thereby. 
 (e) Financial Matters.

 (i) Financial Statements. The Administrative Agent shall have received (A) the audited Consolidated balance
sheet of the Original U.S. Borrower and its Subsidiaries as of December 31, 2005 and the related audited statements of income and retained earnings and cash flows for the Fiscal Year then ended, (B) any interim unaudited Consolidated
balance sheet of the Original U.S. Borrower and its Subsidiaries and related unaudited interim statements of income, cash flows and retained earnings for each interim quarterly period (if any) ended at least forty-five (45) days prior to the
Closing Date, (C) the audited Consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2005 and the related audited statements of income and retained earnings and cash flows for the Fiscal Year then ended and
(D) any interim unaudited Consolidated balance sheet of the Borrower and its Subsidiaries and related unaudited interim statements of income, cash flows and retained earnings for each interim quarterly period (if any) ended at least forty-five
(45) days prior to the Closing Date. 
  

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 (ii) Financial Projections. The Administrative Agent shall have received
projections prepared by management of the Original U.S. Borrower, of balance sheets, income statements and cash flow statements on a quarterly basis for 2006 and on an annual basis for each year thereafter during the term of the U.S. Credit
Facility. 
 (iii) Financial Condition Certificate. The Original U.S. Borrower shall have delivered to the
Administrative Agent a certificate, in form and substance satisfactory to the Administrative Agent, and certified as accurate by a Responsible Officer of the Original U.S. Borrower, that (A) the Original U.S. Borrower and each of its
Subsidiaries are each Solvent, (B) the material payables of the Original U.S. Borrower and each of its Subsidiaries are current and not past due, (C) attached thereto are calculations, as determined on a pro forma basis as of
March 31, 2006 and after giving effect to the transactions contemplated hereby and any Extensions of Credit or U.S. Extensions of Credit to be made on the Closing Date, with the covenants contained in Article IX; (D) the financial
projections previously delivered to the Administrative Agent represent the good faith estimates (utilizing assumptions believed to be reasonable) of the financial condition and operations of the Original U.S. Borrower and its Subsidiaries;
(E) attached thereto is a calculation of the ratio of (1) Consolidated Total Indebtedness as of the Closing Date (after giving effect to any Extensions of Credit or U.S. Extensions of Credit on the Closing Date) to (2) Consolidated
EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating that such ratio is less than 5.80 to 1.00; (F) attached thereto is a calculation of Consolidated
Adjusted EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating to the reasonable satisfaction of the Administrative Agent that Consolidated Adjusted EBITDA (as
determined in such manner) is not less than $500,000,000; and (G) attached thereto is a calculation of the Borrowing Limit as of the Closing Date. 
 (iv) Payment at Closing; Fee Letters. The Borrower shall have paid to the Administrative Agent and the Lenders the fees set forth or referenced in Section 4.3 and any other accrued and unpaid fees
or commissions due hereunder (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and to any other Person such amount as may be due thereto in connection with the transactions contemplated
hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 (f) Miscellaneous. 
 (i) Notice of Borrowing. The Administrative Agent shall
have received a Notice of Borrowing from the Borrower in accordance with Section 2.5(a) with respect to any Loans (if any) to be made on the Closing Date, and a Notice of Account Designation specifying the account or accounts to which
the proceeds of any Loans made on or after the Closing Date are to be disbursed. 
  

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 (ii) Existing Facilities. Each of the Existing Facilities shall be repaid in full
and terminated and all collateral security therefor shall be released, and the Administrative Agent shall have received pay-off letters in form and substance satisfactory to it evidencing such repayment, termination and release. 
 (iii) Closing of the U.S. Credit Facility. The U.S. Credit Facility shall simultaneously close on the Closing Date. 
 (iv) Other Documents. All opinions, certificates and other instruments and all proceedings in connection with the transactions
contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent. The Administrative Agent shall have received copies of all other documents, certificates and instruments reasonably requested thereby, with
respect to the transactions contemplated by this Agreement. 
 SECTION 5.3 Conditions to All Extensions of Credit. The
obligations of the Lenders to make any Extensions of Credit (including any initial Extensions of Credit), convert or continue any Loan and/or any Issuing Lender to issue or extend any Letter of Credit are subject to the satisfaction of the following
conditions precedent on the relevant borrowing, continuation, conversion, issuance or extension date: 
 (a) Continuation of
Representations and Warranties. The representations and warranties contained in Article VI shall be true and correct in all material respects on and as of such borrowing, continuation, conversion, issuance or extension date with the same
effect as if made on and as of such date, except for any representation and warranty made as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date; provided that any representation or
warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true and correct in all respects on and as of such borrowing, continuation, conversion, issuance or extension date. 
 (b) No Existing Default. No Default or Event of Default shall have occurred and be continuing (i) on the borrowing, continuation or
conversion date with respect to such Loan or after giving effect to the Loans to be made, continued or converted on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after giving effect to the issuance
or extension of such Letter of Credit on such date. 
 (c) Notices. The Administrative Agent shall have received a Notice of Borrowing
or Notice of Conversion/Continuation, as applicable, from the Borrower in accordance with Section 2.5(a) or Section 4.2, as applicable. 
 (d) Maximum Cash Balance. As of the end of the Business Day immediately preceding the date of any such borrowing, conversion, continuation, issuance or extension and after giving effect to the Borrower’s
receipt of the proceeds from any such Loan, as the case may be, and the application of such proceeds, the aggregate amount of cash and Cash Equivalents of the U.S. Borrower and its Subsidiaries shall not exceed (i) with respect to the period
from the Eleventh Amendment Effective Date until the Exchange Offer is completed, closed and settled on terms 

  

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and conditions satisfactory to the Administrative Agent, the U.S. Administrative Agent and the Required Lenders, $50,000,000 and (ii) with respect to
any other period other than the period specified in clause (i) of this Section 5.3(d), $70,000,000. 
 SECTION 5.4
Post-Closing Conditions. 
 (a) Prior to June 30, 2006, as such date may be extended by the Administrative Agent in its sole
discretion, the Administrative Agent shall have received the following control agreements, in each case in form and substance satisfactory to the Administrative Agent: 
 (i) A deposit account control agreement executed by the Borrower, the Administrative Agent and National Bank of Canada with respect to all
Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Borrower at National Bank of Canada; 
 (ii) A deposit account control agreement executed by the Borrower, the Administrative Agent and The Toronto-Dominion Bank with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as
defined in the Collateral Agreement), of the Borrower at The Toronto-Dominion Bank; 
 (iii) A deposit account control
agreement executed by the Borrower, the Administrative Agent and Bank of America, N.A. with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Borrower at Bank of
America, N.A.; 
 (iv) A deposit account control agreement executed by the Borrower, the Administrative Agent and Bank of
Montreal with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Borrower at Bank of Montreal; 
 (v) All other control agreements which the Administrative Agent requires to be delivered pursuant to the Collateral Agreement, in each
case in form and substance satisfactory to the Administrative Agent. 
 (b) Prior to June 30, 2006, as such date may be extended by the
Administrative Agent in its sole discretion, the Administrative Agent shall have received any warehouse or similar agreement, and any other ancillary documentation, required to be delivered thereto pursuant to Section 4.6(b) of the Collateral
Agreement (or, if any such warehouse or similar agreement, and any other ancillary documentation, has not been delivered by such date, the Borrower shall take all actions required by the Administrative Agent pursuant to Section 4.6(b) in
connection therewith). 
  

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 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES OF THE BORROWER 
 SECTION 6.1 Representations and
Warranties. To induce the Administrative Agent and Lenders to enter into this Agreement and to induce the Lenders to make Extensions of Credit, each of the Borrower and the U.S. Borrower hereby represents and warrants to the Administrative Agent
and Lenders both before and after giving effect to the transactions contemplated hereunder that: 
 (a) Organization; Power;
Qualification. Each of the U.S. Borrower and its Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, has the power and authority to own its properties and to
carry on its business as now being and hereafter proposed to be conducted and is duly qualified and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and
authorization except in jurisdictions where the failure to be so qualified or in good standing could not reasonably be expected to result in a Material Adverse Effect. 
 (b) Ownership. Each Subsidiary of the U.S. Borrower as of the Closing Date is listed on Schedule 6.1(b) together with (i) its jurisdiction of formation and each jurisdiction in which it is qualified
to do business as of the Closing Date, (ii) each Person holding ownership interests in such Subsidiary, (iii) the nature of the ownership interest held by each such Person and the percentage of ownership of such Subsidiary represented by
such ownership interests and (iv) a designation of each Subsidiary that is inactive. All outstanding shares have been duly authorized and validly issued and are fully paid and nonassessable, with no personal liability attaching to the ownership
thereof, and not subject to any preemptive or similar rights, except as described in Schedule 6.1(b). As of the Closing Date, there are no outstanding stock purchase warrants, subscriptions, options, securities, instruments or other rights of
any type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit the issuance of Capital Stock of the U.S. Borrower or its Subsidiaries, except as described on Schedule 6.1(b). 
 (c) Authorization of Agreement, Loan Documents and Borrowing. Each of the U.S. Borrower and its Subsidiaries has the right, power and authority
and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in accordance with their respective terms. This Agreement and
each of the other Loan Documents have been duly executed and delivered by the duly authorized officers of the U.S. Borrower and each of its Subsidiaries party thereto, and each such document constitutes the legal, valid and binding obligation of the
U.S. Borrower or its Subsidiary party thereto, enforceable in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar state or federal laws from time to time
in effect which affect the enforcement of creditors’ rights in general and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  

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 (d) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The execution, delivery
and performance by the U.S. Borrower and its Subsidiaries of the Loan Documents to which each such Person is a party, in accordance with their respective terms, the Extensions of Credit hereunder and the transactions contemplated hereby or thereby
do not and will not, by the passage of time, the giving of notice or otherwise, (i) require any Governmental Approval or violate any Applicable Law relating to the U.S. Borrower or any of its Subsidiaries, (ii) conflict with, result in a
breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of the U.S. Borrower or any of its Subsidiaries, (iii) conflict with, result in a breach of or constitute a default under any
indenture, agreement or other instrument to which such Person is a party or by which any of its properties may be bound or any Governmental Approval relating to such Person, which could reasonably be expected to have a Material Adverse Effect,
(iv) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by such Person other than Liens arising under the Loan Documents or (v) require any consent or
authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement
other than consents, authorizations, filings or other acts or consents for which the failure to obtain or make could not reasonably be expected to have a Material Adverse Effect and other than consents or filings under the PPSA and the CCQ.

 (e) Compliance with Law; Governmental Approvals. Each of the U.S. Borrower and its Subsidiaries (i) has all Governmental
Approvals required by any Applicable Law for it to conduct its business, each of which is in full force and effect, is final and not subject to review on appeal and is not the subject of any pending or, to the best of its knowledge, threatened
attack by direct or collateral proceeding, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, (ii) is in compliance with its articles of incorporation, bylaws or other organizational documents
of the U.S. Borrower or any of its Subsidiaries, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect, (iii) is in compliance with each Governmental Approval applicable to it and in compliance
with all other Applicable Laws relating to it or any of its respective properties, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect, and (iv) has timely filed all reports, documents and other
materials required to be filed by it under all Applicable Laws with any Governmental Authority and has retained all records and documents required to be retained by it under Applicable Law, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 (f) Tax Returns and Payments. Each of the U.S.
Borrower and its Subsidiaries has duly filed or caused to be filed all federal and other material tax returns required by Applicable Law to be filed, and has paid, or made adequate provision for the payment of, all federal and other material taxes,
assessments and governmental charges or levies upon it and its property, income, profits and assets which are due and payable. Such returns accurately reflect in all material respects all liability for taxes of the U.S. Borrower and its Subsidiaries
for the periods covered thereby. There is no ongoing audit or examination or, to the knowledge of the Borrower or the U.S. Borrower, other investigation by any Governmental Authority of the tax liability of the U.S. Borrower and its Subsidiaries,
except, in each case, as could not reasonably be expected, 

  

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individually or in the aggregate, to have a Material Adverse Effect. No Governmental Authority has asserted any Lien or other claim against the U.S. Borrower
or any of its Subsidiaries with respect to unpaid taxes which has not been discharged or resolved other than Permitted Liens. The charges, accruals and reserves on the books of the U.S. Borrower and any of its Subsidiaries in respect of federal and
other material taxes for all Fiscal Years and portions thereof since the organization of the U.S. Borrower and any of its Subsidiaries are in the judgment of the U.S. Borrower adequate, and the U.S. Borrower does not anticipate any material amount
of additional taxes or assessments for any of such years. 
 (g) Intellectual Property Matters. Each of the U.S. Borrower and its
Subsidiaries owns or possesses rights to use all franchises, licenses, copyrights, copyright applications, patents, patent rights or licenses, patent applications, trademarks, trademark rights, service mark, service mark rights, trade names, trade
name rights, copyrights and other rights with respect to the foregoing which are reasonably necessary to conduct its business, except where the failure to own or possess such rights, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect. No event has occurred which permits, or after notice or lapse of time or both would permit, the revocation or termination of any such rights, and neither the U.S. Borrower nor any of its Subsidiaries is liable to
any Person for infringement under Applicable Law with respect to any such rights as a result of its business operations except as could not reasonably be expected to have a Material Adverse Effect. 
 (h) Environmental Matters. 
 (i) The properties owned, leased or operated by the U.S. Borrower and its Subsidiaries now or in the past do not contain, and to their knowledge have not previously contained, any Hazardous Materials in amounts or concentrations which
(A) constitute or constituted a violation of applicable Environmental Laws or (B) could give rise to liability under applicable Environmental Laws except where such violation or liability could not reasonably be expected, individually or
in the aggregate, to have a Material Adverse Effect; 
 (ii) Except to the extent such matters could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect, the U.S. Borrower, each of its Subsidiaries and such properties and all operations conducted in connection therewith are in compliance, and have been in compliance, with
all applicable Environmental Laws, and there is no contamination at, under or about such properties or such operations which could interfere with the continued operation of such properties; 
 (iii) Neither the U.S. Borrower nor any of its Subsidiaries has received any written notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws, nor does the U.S. Borrower or any of its Subsidiaries have knowledge or reason to believe that any such
notice will be received or is being threatened, except where such violation, alleged violation, non-compliance, liability or potential liability which is the subject of such notice could not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect; 
  

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 (iv) Hazardous Materials have not been transported or disposed of to or from the
properties owned, leased or operated by the U.S. Borrower and its Subsidiaries in violation of, or in a manner or to a location which could give rise to liability under, Environmental Laws, nor have any Hazardous Materials been generated, treated,
stored or disposed of at, on or under any of such properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws, except where such violation or liability could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; 
 (v) No judicial proceedings or governmental or
administrative action is pending, or, to the knowledge of the Borrower or the U.S. Borrower, threatened, under any Environmental Law to which the U.S. Borrower or any of its Subsidiaries is or will be named as a potentially responsible party with
respect to such properties or operations conducted in connection therewith, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under
any Environmental Law with respect to the U.S. Borrower, any of its Subsidiaries or such properties or such operations that could reasonably be expected to have a Material Adverse Effect; and 
 (vi) There has been no release, or to the best of the Borrower’s and the U.S. Borrower’s knowledge, threat of release, of
Hazardous Materials at or from properties owned, leased or operated by the U.S. Borrower or any Subsidiary, now or in the past, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws that could
reasonably be expected to have a Material Adverse Effect. 
 (i) ERISA. 
 (i) As of the Closing Date, neither the U.S. Borrower nor any of its Subsidiaries nor any ERISA Affiliate maintains or contributes to, or
has any obligation under, any Employee Benefit Plans other than those identified on Schedule 6.1(i-1) and neither the U.S. Borrower nor any of its Subsidiaries maintains or contributes to, or has any obligation under, any Canadian Employee
Benefit Plans other than those identified on Schedule 6.1(i-2). 
 (ii) The U.S. Borrower, each of its Subsidiaries and
each of their ERISA Affiliates is in material compliance with all applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans except for any required amendments for which the
remedial amendment period as defined in Section 401(b) of the Code has not yet expired and except where a failure to so comply could not reasonably be expected to have a Material Adverse Effect. The U.S. Borrower and each of its
Subsidiaries is in material compliance with all applicable provisions of the ITA and other Applicable Law and the regulations and published interpretations thereunder with respect to all Canadian Employee Benefit Plans except where a failure to so
comply could not reasonably be expected to have a Material Adverse Effect. Each Employee Benefit Plan that is intended to be qualified 

  

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under Section 401(a) of the Code has been determined by the Internal Revenue Service to be so qualified, and each trust related to such plan has
been determined to be exempt under Section 501(a) of the Code except for such plans that have not yet received determination letters but for which the remedial amendment period for submitting a determination letter has not yet expired.
No liability has been incurred by the U.S. Borrower, any of its Subsidiaries or any of their ERISA Affiliates which remains unsatisfied for any taxes or penalties with respect to any Employee Benefit Plan or any Multiemployer Plan except for a
liability that could not reasonably be expected to have a Material Adverse Effect. No liability has been incurred by the U.S. Borrower or any of its Subsidiaries which remains unsatisfied for any taxes or penalties with respect to any Canadian
Employee Benefit Plan or any Canadian Multiemployer Plan, except for a liability that could not reasonably be expected to have a Material Adverse Effect. 
 (iii) Except as set forth on Schedule 6.1(i-1) or Schedule 6.1(i-2), as of the Closing Date, no Pension Plan or Canadian Pension Plan has been terminated, nor has any accumulated funding deficiency (as
defined in Section 412 of the Code or any other Applicable Law) been incurred (without regard to any waiver granted under Section 412 of the Code or any other Applicable Law), nor has any funding waiver from the Internal
Revenue Service been received or requested with respect to any Pension Plan, nor has the U.S. Borrower, any of Subsidiaries or any of their ERISA Affiliates failed to make any contributions or to pay any amounts due and owing as required by
Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan prior to the due dates of such contributions under Section 412 of the Code or Section 302 of ERISA, nor has there been any
event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan. 
 (iv) Except where the failure of any of the following representations to be correct in all material respects could not reasonably be expected to have a Material Adverse Effect, neither the U.S. Borrower nor any of its Subsidiaries nor any
of their ERISA Affiliates has: (A) engaged in a nonexempt prohibited transaction described in Section 406 of the ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC which remains outstanding
other than the payment of premiums and there are no premium payments which are due and unpaid, (C) failed to make a required contribution or payment to a Multiemployer Plan or a Canadian Multiemployer Plan, (D) failed to make a required
installment or other required payment under Section 412 of the Code, other Applicable Laws or its Employee Benefit Plans or (E) failed to make a required installment or other required payment under Applicable Laws or its Canadian
Employee Benefit Plans. 
 (v) No Termination Event has occurred or is reasonably expected to occur. 
 (vi) Except where the failure of any of the following representations to be correct in all material respects could not reasonably be
expected to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or investigation is existing or, to the best knowledge of the Borrower and the U.S. Borrower after due
inquiry, threatened concerning or involving 

  

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any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by the U.S. Borrower, any
of its Subsidiaries or any of their ERISA Affiliates, (B) Pension Plan or Canadian Pension Plan or (C) Multiemployer Plan or Canadian Multiemployer Plan. 
 (j) Margin Stock. Neither the U.S. Borrower nor any of its Subsidiaries is engaged principally or as one of its activities in the business of extending credit for the purpose of “purchasing” or
“carrying” any “margin stock” (as each such term is defined or used, directly or indirectly, in Regulation U of the Board of Governors of the Federal Reserve System). No part of the proceeds of any of the Loans or Letters of
Credit will be used for purchasing or carrying margin stock or for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X of such Board of Governors. Not more than 25% of the value of the assets
(either of the Borrower only or of the US Borrower and its Subsidiaries on consolidated basis) are margin stock. 
 (k) Government
Regulation. Neither the U.S. Borrower nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company” (as each such term is defined or used in the Investment Company Act
of 1940, as amended) and neither the U.S. Borrower nor any of its Subsidiaries is, or after giving effect to any Extension of Credit or U.S. Extension of Credit will be, subject to regulation under the Interstate Commerce Act, as amended, or any
other Applicable Law which limits its ability to incur or consummate the transactions contemplated hereby. 
 (l) Significant
Indebtedness. Schedule 6.1(l) sets forth a complete and accurate list of all Significant Indebtedness of the U.S. Borrower and its Subsidiaries in effect as of the Closing Date. As of the Closing Date, other than as set forth in
Schedule 6.1(l), each indenture, agreement or other instrument governing such Significant Indebtedness is, and after giving effect to the consummation of the transactions contemplated by the Loan Documents will be, in full force and effect in
accordance with the terms thereof. To the extent requested by the Administrative Agent, the U.S. Borrower and its Subsidiaries have delivered to the Administrative Agent a true and complete copy of each indenture, agreement or other instrument
governing the Significant Indebtedness required to be listed on Schedule 6.1(l). As of the Closing Date, neither the U.S. Borrower nor any Subsidiary (nor, to the knowledge of the Borrower or the U.S. Borrower, any other party thereto) is in
breach of or in default under any Significant Indebtedness in any material respect. 
 (m) Employee Relations. Each of the U.S.
Borrower and its Subsidiaries has a stable work force in place, except as could not reasonably be expected to have a Material Adverse Effect. The U.S. Borrower knows of no pending, threatened or contemplated strikes, work stoppage or other
collective labor disputes involving its employees or those of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 (n) Burdensome Provisions. Except as described on Schedule 6.1(n), no Subsidiary is party to any agreement or instrument or otherwise subject to any restriction or encumbrance that restricts or limits its ability to make
dividend payments or other distributions in respect of its Capital Stock to the U.S. Borrower or any Subsidiary or to transfer any of its assets or properties 

  

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to the U.S. Borrower or any other Subsidiary in each case other than restrictions or encumbrances existing under or by reason of (i) the Loan Documents,
(ii) Applicable Law and (iii) legally enforceable provisions which are contained in either (A) the organizational documents of any Subsidiary that a not Wholly-Owned Subsidiary or (B) any other agreements with the other owner(s)
of such Subsidiary (which, in the case of such provisions existing on the Closing Date, are described on Schedule 6.1(n)). 
 (o)
Financial Statements. The audited and unaudited financial statements delivered pursuant to Section 5.2(e)(i) are complete and correct and fairly present in all material respects on a Consolidated basis the assets, liabilities and
financial position of the U.S. Borrower and its Subsidiaries and the Borrower and its Subsidiaries, respectively, as at the respective dates of such statements, and the results of the operations and changes of financial position for the periods then
ended (other than customary year-end adjustments for interim financial statements). All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP (or, with respect to financial
statements of the Borrower and its Subsidiaries, Canadian GAAP). Such financial statements show all material indebtedness and other material liabilities, direct or contingent, of the U.S. Borrower and its Subsidiaries and the Borrower and its
Subsidiaries, respectively, as of the date thereof, including material liabilities for taxes, material commitments, and Indebtedness, in each case, to the extent required to be disclosed under GAAP (or, with respect to financial statements of the
Borrower and its Subsidiaries, Canadian GAAP). The projected financial statements delivered pursuant to Section 5.2(e)(ii) were prepared in good faith on the basis of the assumptions stated therein, which assumptions are believed to be
reasonable in light of then existing conditions. 
 (p) No Material Adverse Change. Since December 31, 2005, there has been no
material adverse change in the business, assets, liabilities (actual or contingent), operations, or condition (financial or otherwise) of the U.S. Borrower and its Subsidiaries taken as a whole and no event has occurred or condition arisen that
could reasonably be expected to have a Material Adverse Effect. 
 (q) Solvency. As of the Closing Date and after giving effect to
each Extension of Credit made hereunder and each U.S. Extension of Credit, each of the Credit Parties will be Solvent. 
 (r) Titles to
Properties. Each of the U.S. Borrower and its Subsidiaries has such title to the real property owned or leased by it as is reasonably necessary to the conduct of its business and valid and legal title to all of its personal property and assets,
including, but not limited to, those reflected on the balance sheets of the U.S. Borrower, the Borrower and their respective Subsidiaries delivered pursuant to Section 5.2(e)(i), Section 7.1(a), (b) and
(d) except those which have been disposed of by the U.S. Borrower or its Subsidiaries subsequent to such date which dispositions have been in the ordinary course of business or as otherwise expressly permitted hereunder. 
 (s) Liens. None of the properties and assets of the U.S. Borrower or any of its Subsidiaries is subject to any Lien, except Permitted Liens.
Neither the U.S. Borrower nor any of its Subsidiaries has signed any financing statement or any security agreement authorizing any secured party thereunder to file any financing statement, except to perfect those Permitted Liens. 
  

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 (t) Litigation. Except for matters existing on the Closing Date and set forth on Schedule
6.1(t), there are no actions, suits or proceedings pending nor, to the knowledge of the Borrower and the U.S. Borrower, threatened against or in any other way relating adversely to or affecting the U.S. Borrower or any of its Subsidiaries or any
of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that has or could reasonably be expected to have a Material Adverse Effect. 
 (u) Senior Indebtedness Status. The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall
continue to rank at least senior in priority of payment to all Subordinated Indebtedness of each such Person and is designated as “Senior Indebtedness” under all instruments and documents, now or in the future, relating to all Subordinated
Indebtedness of such Person. 
 (v) OFAC. None of the U.S. Borrower, any Subsidiary of the U.S. Borrower or any Affiliate of the U.S.
Borrower or any U.S. Subsidiary Guarantor: (i) is a Sanctioned Person, (ii) has more than ten percent (10%) of its assets in Sanctioned Entities, or (iii) derives more than ten percent (10%) of its operating income from
investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds of any Loan will not be used and have not been used to fund any operations in, finance any investments or activities in, or make any payments to, a
Sanctioned Person or a Sanctioned Entity. Solely, for purposes of this subsection (v), “Subsidiary” shall include (A) each Abitibi Entity and (B) each QSPE. 
 (w) Disclosure. The U.S. Borrower and/or its Subsidiaries have disclosed to the Administrative Agent and the Lenders all agreements, instruments
and corporate or other restrictions to which the U.S. Borrower or any of its Subsidiaries are subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.
The financial statements, material reports, material certificates or other material information furnished (whether in writing or orally), taken together as a whole, by or on behalf of any of the U.S. Borrower or any of its Subsidiaries to the
Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) do not contain any material
misstatement of fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information,
pro forma financial information, estimated financial information and other projected or estimated information, such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 
 SECTION 6.2 Survival of Representations and Warranties, Etc. All representations and warranties set forth in this Article VI and all
representations and warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in connection with any amendment thereto) shall constitute representations and
warranties made under this Agreement. All representations and warranties 

  

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made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are expressly made as of a specific date),
shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder. 
 ARTICLE VII 
 FINANCIAL INFORMATION AND NOTICES 
 Until all the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been obtained in the manner set forth in
Section 14.2, the U.S. Borrower and the Borrower will furnish or cause to be furnished to the Administrative Agent (for distribution to the Lenders) at the Administrative Agent’s Office at the address set forth in
Section 14.1 or such other office as may be designated by the Administrative Agent from time to time: 
 SECTION 7.1
Financial Statements and Projections. 
 (a) Quarterly Financial Statements of the U.S. Borrower. As soon as practicable and in
any event within forty-five (45) days (or, if earlier, on the date of any required public filing thereof) after the end of each of the first three (3) fiscal quarters of each Fiscal Year, an unaudited Consolidated balance sheet of the U.S.
Borrower and its Subsidiaries as of the close of such fiscal quarter and unaudited Consolidated statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for
the fiscal quarter then ended and that portion of the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding period in the
preceding Fiscal Year and prepared by the U.S. Borrower in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and
practices during the period, and certified by the chief financial officer of the U.S. Borrower to present fairly in all material respects the financial condition of the U.S. Borrower and its Subsidiaries on a Consolidated basis as of their
respective dates and the results of operations of the U.S. Borrower and its Subsidiaries for the respective periods then ended, subject to normal year end adjustments. 
 (b) Annual Financial Statements of the U.S. Borrower. As soon as practicable and in any event within ninety (90) days (or, if earlier, on the date of any required public filing thereof) after the end of
each Fiscal Year, an audited Consolidated balance sheet of the U.S. Borrower and its Subsidiaries as of the close of such Fiscal Year and audited Consolidated statements of income, retained earnings and cash flows and a report containing
management’s discussion and analysis of such financial statements for the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the
preceding Fiscal Year and prepared in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the
year. Such annual financial statements shall be audited by an independent certified public accounting firm acceptable to the 

  

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Administrative Agent and the U.S. Administrative Agent, and accompanied by a report thereon by such certified public accountants that is not qualified with
respect to scope limitations imposed by the U.S. Borrower or any of its Subsidiaries or with respect to accounting principles followed by the U.S. Borrower or any of its Subsidiaries not in accordance with GAAP. 
 (c) Annual Business Plan and Financial Projections of the U.S. Borrower. As soon as practicable and in any event within ninety (90) days
after the beginning of each Fiscal Year, a business plan of the U.S. Borrower and its Subsidiaries for such Fiscal Year, such plan to be prepared in accordance with GAAP and to include, on a quarterly basis, the following: a projected income
statement, statement of cash flows and balance sheet and a statement containing the volume and price assumptions by product line used in preparing the business plan, accompanied by a certificate from a Responsible Officer of the U.S. Borrower to the
effect that, to the best of such officer’s knowledge, such projections are good faith estimates (utilizing assumptions believed to be reasonable) of the financial condition and operations of the U.S. Borrower and its Subsidiaries for such
Fiscal Year. 
 (d) Financial Statements of the Borrower and its Subsidiaries. 
 (i) Quarterly Financial Statements of the Borrower. As soon as practicable and in any event within the time prescribed by
applicable Canadian securities laws, regulations and policies, with respect to each fiscal quarter of each Fiscal Year, an unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such fiscal quarter and unaudited
Consolidated statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for the fiscal quarter then ended and that portion of the Fiscal Year then ended,
including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding period in the preceding Fiscal Year and prepared by the Borrower in accordance with Canadian
GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the period, and certified by the chief financial officer
of the Borrower to present fairly in all material respects the financial condition of the Borrower and its Subsidiaries on a Consolidated basis as of their respective dates and the results of operations of the Borrower and its Subsidiaries for the
respective periods then ended, subject to normal year end adjustments. 
 (ii) Annual Financial Statements of the
Borrower. As soon as practicable and in any event within the time prescribed by applicable Canadian securities laws, regulations and policies, with respect to each Fiscal Year, an audited Consolidated balance sheet of the Borrower and its
Subsidiaries as of the close of such Fiscal Year and audited Consolidated statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for the Fiscal Year then
ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the preceding Fiscal Year and prepared in accordance with Canadian GAAP and, if applicable, containing
disclosure of the effect on the financial position or results of 

  

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operations of any change in the application of accounting principles and practices during the year. Such annual financial statements shall be audited by an
independent certified public accounting firm acceptable to the Administrative Agent and the U.S. Administrative Agent, and accompanied by a report thereon by such certified public accountants that is not qualified with respect to scope limitations
imposed by the Borrower or any of its Subsidiaries or with respect to accounting principles followed by the Borrower or any of its Subsidiaries not in accordance with Canadian GAAP. 
 (e) Monthly Borrowing Limit Calculation. Within fifteen (15) Business Days after the last day of each calendar month beginning after the
Third Amendment Effective Date, a report in form and substance reasonably satisfactory to the Administrative Agent showing a calculation of the Asset Coverage Amount and clauses (a) and (b) of the Borrowing Limit as of the
last day of the preceding calendar month. 
 (f) Balance Reporting. 
 (i) Commencing with the month in which the Parent first establishes a deposit, securities or investment account, within two
(2) Business Days of the end of each calendar month, the Parent will deliver a written daily cash balance summary to the Administrative Agent and the U.S. Administrative Agent showing the aggregate available balance of cash and Cash Equivalents
in the deposit, securities and other investment accounts of the Parent as of the end of business on each Business Day of the preceding calendar month. 
 (ii) Within five (5) Business Days of the end of each calendar month, the U.S. Borrower will deliver to the Administrative Agent and the U.S. Administrative Agent (A) commencing with the calendar month
ending January 31, 2009, a written statement showing the aggregate daily available balance of cash and Cash Equivalents in all deposit, securities and other investment accounts of the U.S. Borrower and its Subsidiaries for which such
information is available as of the end of each Business Day of such calendar month and (B) commencing with the calendar month ending November 30, 2008, a written statement showing the available balance of cash and Cash Equivalents in each
deposit, securities and other investment account of the U.S. Borrower and its Subsidiaries as of the last Business Day of such calendar month for which such information is available. 
 (iii) From time to time upon the request of the Administrative Agent or the U.S. Administrative Agent, the U.S. Borrower will promptly
deliver to the Administrative Agent and the U.S. Administrative Agent copies of any and all deposit account statements, securities account statements and other investment account statements of the U.S. Borrower or any Subsidiary thereof that are
requested to be delivered thereby, in each case, to the extent such statements are available. 
 (g) Monthly Borrowing Base
Certificate. As soon as available, but in any event no later than the earlier of (x) the date that is fifteen (15) Business Days after the end of each calendar month (as such date may be extended by the Borrower for up to an additional
ten (10)

  

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days for the months ending October 31, 2008, November 30, 2008 and December 31, 2008) (each such monthly date, a “Borrowing Base
Reporting Date”) or (y) the date upon which the Original U.S. Borrower delivers the U.S. Borrowing Base Certificate to the U.S. Administrative Agent for such calendar month, commencing with the calendar month ending November 30,
2008: 
 (i) a completed Borrowing Base Certificate as at the end of such calendar month, duly certified by a Responsible
Officer of the Borrower (prior to the Conversion Date, such report shall include a calculation of the amount set forth in clause (c) of the Borrowing Limit as of the last day of such calendar month); 
 (ii) a detailed schedule and aging of the Accounts (A) including all obligors, aged by due date (and, to the extent requested by the
Administrative Agent, with an explanation of the terms offered) and commencing with the month ending March 31, 2009, aged by invoice date with respect to invoices generated by the Abiserve system and (B) reconciled to the Borrowing Base
Certificate delivered as of such date prepared in a manner reasonably acceptable to the Administrative Agent, together with (1) a summary specifying the name and balance due for each account debtor and (2) a summary specifying such
Accounts by the country in which each account debtor is located; 
 (iii) a schedule detailing the Borrower’s and its
Subsidiaries’ Inventory, in form and substance reasonably satisfactory to the Administrative Agent, (A) by location (showing any Inventory located with a third party under any consignment, bailee arrangement, or warehouse agreement), by
class (raw material, mill store inventory, work-in-process and finished goods), and in the case of Inventory located with a third party, by volume on hand, which Inventory shall be valued at Value of such Inventory and adjusted for Reserves as the
Administrative Agent has previously indicated to the Borrower are deemed by the Administrative Agent to be appropriate and (B) reconciled to the Borrowing Base Certificate delivered as of such date; 
 (iv) a report in form and substance reasonably satisfactory to the Administrative Agent evidencing claims under the Credit Insurance
Policy or such other information with respect to the Credit Insurance Policy as the Administrative Agent may reasonably request in its credit judgment; 
 (v) a reconciliation of the Accounts and Inventory between the amounts shown in the Borrower’s general ledgers and the reports delivered pursuant to clauses (ii) and (iii) above;

 (vi) if readily available, a schedule and aging of the accounts payable of the Borrower and its Subsidiaries in the form
historically generated by the Borrower or such other information with respect to such accounts payable as the Administrative Agent may reasonably request in its credit judgment; and 
  

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 (vii) concurrently with the delivery of the Borrowing Base Certificate, the U.S.
Borrowing Base Certificate; 
 provided, that with respect to any calendar
month end that is also a fiscal quarter end, the Borrower shall have satisfied the foregoing clauses if it provides a draft of the applicable documentation required pursuant to such clauses on or prior to the applicable Borrowing Base Reporting Date
and a final version of the applicable documentation (in each case with a reconciliation to the applicable previously delivered draft documentation) by no later than the earlier of (A) the date upon which financial statements are delivered for
such fiscal quarter pursuant to Section 7.1(a) or (B) the forty-fifth (45th) day after such fiscal quarter end. 
 (h) Cash Flow Reporting. (i) Commencing on December 15, 2008 and on the third (3rd) Business Day following the last day of each
four week period thereafter (each such date a “Cash Flow Reporting Date”), an updated rolling 13-week forecast (the “Forecast”) of cash receipts and disbursements of the U.S. Borrower and its Consolidated
Subsidiaries for the 13-consecutive week period beginning on the date of delivery of such Forecast, which Forecast shall be in form and substance reasonably satisfactory to the Administrative Agent and the U.S. Administrative Agent and (ii) on
each Cash Flow Reporting Date, a written report in form and substance reasonably satisfactory to the Administrative Agent and the U.S. Administrative Agent setting forth the actual aggregated cash receipts and disbursements of the U.S. Borrower and
its Consolidated Subsidiaries for the immediately preceding four week period, together with a comparison of such actual figures to the Forecast for such period previously delivered to the Administrative Agent and the U.S. Administrative Agent
pursuant to clause(i) above. 
 (i) Notices of certain Asset Dispositions, Insurance and Condemnation Events and Debt
Issuances. In the event of any Asset Disposition (other than an Asset Disposition permitted pursuant to Section 10.5(a), (b), (c), (d), (e) or (f)), Insurance and Condemnation Event or any Debt
Issuance by the U.S. Borrower or any of its Subsidiaries, (i) notice of such Asset Disposition, Insurance and Condemnation Event or Debt Issuance, which notice shall specify the Net Cash Proceeds to be received by the U.S. Borrower or any of
its Subsidiaries in connection with such Asset Disposition, Insurance and Condemnation Event or Debt Issuance and (ii) in the case of any Asset Disposition or Insurance and Condemnation Event of Eligible Inventory or Eligible Accounts, a pro
forma Borrowing Base Certificate giving effect to such Asset Disposition and Insurance and Condemnation Event, in each case, to be delivered (A) at least five (5) Business Days prior to such Asset Disposition if the Net Cash Proceeds
of such Asset Disposition exceed $1,000,000 or (B) within five (5) Business Days after a Responsible Officer has knowledge of (1) such Asset Disposition if the Net Cash Proceeds of such Asset Disposition are $1,000,000 or less or
(2) any Insurance and Condemnation Event. 
 (j) Other Reporting. 
 (i) At such times as may be requested by the Administrative Agent, as of the quarter most recently ended, a list of all customer
addresses, delivered electronically in a text formatted file acceptable to the Administrative Agent; 
 (ii) Promptly upon the
Administrative Agent’s request: 
  

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 (A) an appraisal of all of the Inventory of the Borrower and its Subsidiaries, which
appraisal shall be in form and substance satisfactory to the Administrative Agent, prepared by an independent third party appraiser acceptable to the Administrative Agent, and upon which the Administrative Agent and the Lenders (and the successors
and assigns of the Administrative Agent and each Lender) is expressly permitted to rely; and 
 (B) a schedule, which schedule
shall be in form and substance satisfactory to the Administrative Agent, detailing the balance of all intercompany accounts of the Borrower and its Subsidiaries; 
 (iii) As soon as available but in any event within thirty (30) days after the end of each calendar month, and at such other times as
may be requested by the Administrative Agent, as of the period then ended, the Borrower’s and its Subsidiaries’ sales journals, cash receipts journals (identifying trade and non-trade cash receipts) and debit memo/credit memo journals; and

 (iv) As soon as possible and in any event within thirty (30) days after filing thereof, copies of all tax returns
filed by the Borrower or any of its Subsidiaries with the Canada Customs and Revenue Agency, and any other applicable Governmental Authority in any jurisdiction. 
 SECTION 7.2 Officer’s Compliance Certificate. At each time financial statements are delivered pursuant to Section 7.1(a) or (b) and at such other times as the Administrative
Agent shall reasonably request, an Officer’s Compliance Certificate. 
 SECTION 7.3 Accountants’ Certificate. At each
time financial statements are delivered pursuant to Section 7.1(b), a certificate of the independent public accountants certifying such financial statements that in connection with their audit, nothing came to their attention that caused
them to believe that the U.S. Borrower or the Borrower failed to comply with the terms, covenants, provisions or conditions of Article IX or, if such is not the case, specifying such non-compliance and its nature and period of existence.

 SECTION 7.4 Other Reports. 
 (a) Promptly upon their becoming available, copies of all registration statements (other than on Form S-8) and regular periodic reports on Forms 10-K, 10-Q and 8-K that the Parent, the U.S. Borrower or any of its Subsidiaries shall have
filed with the SEC, or any similar periodic reports filed with any comparable agency in Canada (it being agreed that each such report or statement shall be deemed delivered on the date that (i) such report or statement is posted on the website
of the SEC at www.sec.gov, on SEDAR at www.sedar.com or on the website of the Original U.S. Borrower at www.abitibibowater.com and (ii) the Original U.S. Borrower has provided the Administrative Agent with written notice of
such posting). 
 (b) Promptly upon the mailing thereof to the shareholders of the Parent or the U.S. Borrower generally, copies of all
financial statements, reports and proxy statements so mailed (it being agreed that such mailing shall be deemed delivered on the date that (i) such information is 

  

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posted on the website of the SEC at www.sec.gov, on SEDAR at www.sedar.com or on the website of the Original U.S. Borrower at
www.abitibibowater.com and (ii) the Original U.S. Borrower has provided the Administrative Agent with written notice of such posting). 
 (c) Such other information regarding the Collateral or the operations, business affairs and financial condition of the U.S. Borrower or any of its Subsidiaries as the Administrative Agent (for itself or on behalf of any Lender) may
reasonably request. 
 SECTION 7.5 Notice of Litigation and Other Matters. Prompt (but in no event later than ten (10) days
after any Credit Party obtains knowledge thereof) telephonic and written notice of: 
 (a) the commencement of all proceedings and
investigations by or before any Governmental Authority and all actions and proceedings in any court or before any arbitrator against or involving the U.S. Borrower or any of its Subsidiaries or any of their respective properties, assets or
businesses that if adversely determined could reasonably be expected to have a Material Adverse Effect; 
 (b) any notice of any violation
received by the U.S. Borrower or any of its Subsidiaries from any Governmental Authority including, without limitation, any notice of violation of Environmental Laws which in any such case could reasonably be expected to have a Material Adverse
Effect; 
 (c) any labor controversy that has resulted in, or threatens to result in, a strike or other work action against the U.S. Borrower
or any of its Subsidiaries which in any such case could reasonably be expected to have a Material Adverse Effect; 
 (d) any attachment,
judgment, lien, levy or order exceeding $10,000,000 that is assessed against the U.S. Borrower or any of its Subsidiaries; 
 (e) (i) any
Default or Event of Default or (ii) any event which constitutes or which with the passage of time or giving of notice or both would constitute a default or event of default under any Significant Indebtedness to which the U.S. Borrower or any of
its Subsidiaries is a party or by which the U.S. Borrower or any of its Subsidiaries or any of their respective properties may be bound which could reasonably be expected to have a Material Adverse Effect; 
 (f) (i) any unfavorable determination letter from the Internal Revenue Service regarding the qualification of an Employee Benefit Plan under
Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates of the PBGC’s or any other Governmental Authority’s intent
to terminate any Pension Plan or Canadian Pension Plan or to have a trustee appointed to administer any Pension Plan or Canadian Pension Plan, (iii) all notices received by the U.S. Borrower or any of its Subsidiaries or any of their ERISA
Affiliates from a Multiemployer Plan or Canadian Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability pursuant to Section 4202 of ERISA or any other Applicable Law and (iv) the U.S. Borrower
obtaining knowledge or reason to know that the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates has filed or intends to file a notice of intent to terminate any Pension Plan or Canadian Pension Plan under a distress
termination within the meaning of Section 4041(c) of ERISA or otherwise; 
  

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 (g) any event which makes any of the representations set forth in Section 6.1 that is subject
to materiality or Material Adverse Effect qualifications inaccurate in any respect or any event which makes any of the representations set forth in Section 6.1 that is not subject to materiality or Material Adverse Effect qualifications
inaccurate in any material respect; and 
 (h) any notice delivered to the U.S. Borrower, or sent by or on behalf of the U.S. Borrower, with
respect to the U.S. Credit Agreement or any of the loan documents executed in connection therewith (including a copy of any such notice). 
 SECTION 7.6 Accuracy of Information. All written information, reports, statements and other papers and data furnished by or on behalf of the Parent, the Borrower or the U.S. Borrower to the Administrative Agent or any Lender
whether pursuant to this Article VII or any other provision of this Agreement, or any of the Security Documents, shall, at the time the same is so furnished, comply with the representations and warranties set forth in
Section 6.1(w). 
 ARTICLE VIII 
 AFFIRMATIVE COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the
Commitment terminated, unless consent has been obtained in the manner provided for in Section 14.2, the U.S. Borrower and the Borrower will, and will cause each of their respective Subsidiaries to: 
 SECTION 8.1 Preservation of Corporate Existence and Related Matters. Except as permitted by Section 10.4, preserve and maintain
its legal existence and all material rights, franchises, licenses and privileges and qualify and remain qualified as a foreign corporation and authorized to do business in each jurisdiction in which the failure to so qualify could reasonably be
expected to have a Material Adverse Effect. 
 SECTION 8.2 Maintenance of Property; Commitment Reductions and Repayments.

 (a) Maintenance of Property. Protect and preserve all properties used or useful in its business, including copyrights, patents,
trade names, service marks and trademarks; maintain in good working order and condition, ordinary wear and tear excepted, all buildings, equipment and other tangible real and personal property; and from time to time make or cause to be made all
repairs, renewals and replacements thereof and additions to such property necessary for the conduct of its business; in each case to the extent necessary so that the business carried on in connection therewith may be conducted in a commercially
reasonable manner, it being understood and agreed that nothing in this paragraph shall prohibit the idling or abandonment of any property in the reasonable business judgment of the U.S. Borrower and its Subsidiaries. 
 (b) (i) Asset Dispositions. If the U.S. Borrower or any of its Subsidiaries receives Net Cash Proceeds from any Asset Disposition permitted under
this Agreement (other than any Asset Disposition permitted pursuant to Section 10.5(a), (b), (c), (d), (e) and (f)) or 

  

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consented to by the Required Lenders pursuant to Section 14.2, or from any Insurance and Condemnation Event, in all cases, in an aggregate amount
for all such Asset Dispositions and Insurance and Condemnation Events in excess of $2,500,000: 
 (A) with respect to the Net
Cash Proceeds received from any such Asset Disposition or Insurance and Condemnation Event with respect to Canadian Fixed Assets: 
 (1) the U.S. Borrower shall, or shall cause the following to occur: 
 (x) first, permanently reduce the
Overadvance Amount (and make any corresponding payment required pursuant to Section 2.7(c)) in an aggregate amount not to exceed the lesser of (I) the Asset Sale Reduction Amount and (II) the amount of the then applicable
Overadvance Amount (it being understood and agreed that such reduction shall be applied to reduce the remaining scheduled reductions of the Overadvance Amount, if any, on a pro rata basis); and 
 (y) then, to the extent of any remaining portion of the Asset Sale Reduction Amount: 
 (I) permanently reduce the U.S. Commitment (and make any corresponding payment required pursuant to Section 2.5(c) of the U.S. Credit Agreement) by
an amount equal to the product of (x) the U.S. Pro Rata Percentage multiplied by (y) any such remaining Asset Sale Reduction Amount after giving effect to the repayments, if any, made in connection with the commitment reductions
required pursuant to clause (b)(i)(A)(1)(x) above (it being understood and agreed that such reduction shall also be applied to reduce the remaining scheduled reductions of the U.S. Overadvance Amount, if any, on a pro
rata basis); and 
 (II) permanently reduce the Commitment (and make any corresponding payment required pursuant to Section
2.7(c)) by an amount equal to the product of (x) the Canadian Pro Rata Percentage multiplied by (y) any such remaining Asset Sale Reduction Amount after giving effect to the repayments, if any, made in connection with the
commitment reductions required pursuant to clause (b)(i) (A)(1)(x) above; and 
 (2) the U.S. Borrower shall or
shall cause the Net Cash Proceeds which remain after giving effect to the repayments, if any, made in connection with the commitment reductions required pursuant to clause (b)(i)(A)(1) above to be applied to temporarily repay (without a
corresponding commitment reduction) (x) the U.S. Loans in the manner provided in Section 2.4(b)(i) of the U.S. Credit Agreement in an amount equal to the product of (I) the U.S. Pro Rata Percentage 

  

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multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds and (y) the Loans in the manner provided in
Section 2.6(d)(i) in an amount equal to the product of (I) the Canadian Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds; 
 (B) with respect to the Net Cash Proceeds received from any such Asset Disposition or Insurance and Condemnation Event with respect to
U.S. Non-Fixed Assets Collateral: 
 (1) the U.S. Borrower shall or shall cause any repayment as required pursuant to
Section 2.4(b) of the U.S. Credit Agreement after giving effect to such Asset Disposition or Insurance and Condemnation Event to be made; and 
 (2) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after giving effect to the repayments, if any, made pursuant to clause (b)(i)(B)(1) above to be applied to temporarily repay
(without a corresponding commitment reduction) the U.S. Loans in the manner provided in Section 2.4(b)(i) of the U.S. Credit Agreement; and 
 (3) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after giving effect to the repayments, if any, made pursuant to clause (b)(i) (B)(1) and clause (b)(i)(B)(2) above
to be applied to temporarily repay (without a corresponding commitment reduction) the Loans in the manner provided in Section 2.6(d)(i); 
 (C) with respect to the Net Cash Proceeds received from any such Asset Disposition or Insurance and Condemnation Event with respect to Non-Fixed Assets Collateral (other than the Korean Shares): 
 (1) the U.S. Borrower shall or shall cause any repayments as required pursuant to Section 2.6(d) after giving effect to such
Asset Disposition or Insurance and Condemnation Event to be made; and 
 (2) the U.S. Borrower shall or shall cause the Net
Cash Proceeds which remain after giving effect to the repayments, if any, made pursuant to clause (b)(i)(C)(1) above to be applied to temporarily repay (without a corresponding commitment reduction) the Loans in the manner provided in
Section 2.6(d)(i); and 
 (3) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after
giving effect to the repayments, if any, made pursuant to clause (b)(i)(C)(1) and clause (b)(i)(C)(2) above to be applied to temporarily repay (without a corresponding commitment reduction) the U.S. Loans in the manner
provided in Section 2.4(b)(i) of the U.S. Credit Agreement; 
  

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 (D) with respect to the Net Cash Proceeds received from any such Asset Disposition or
Insurance and Condemnation Event with respect to Korean Fixed Assets or the Korean Shares: 
 (1) the U.S. Borrower shall, or
shall cause the following to occur: 
 (x) first, permanently reduce the Overadvance Amount (and make any
corresponding payment required pursuant to Section 2.7(c)) in an aggregate amount not to exceed the lesser of (I) the Asset Sale Reduction Amount and (II) the amount of the then applicable Overadvance Amount (it being understood and
agreed that such reduction shall be applied to reduce the remaining scheduled reductions of the Overadvance Amount, if any, on a pro rata basis); 
 (y) then, to the extent of any remaining portion of the Asset Sale Reduction Amount after giving effect to the repayments, if any, made in connection with the commitment reductions required pursuant to
clause (b)(i)(D)(1)(x) above, permanently reduce the U.S. Overadvance Amount (and make any corresponding payment required pursuant to Section 2.5(c) of the U.S. Credit Agreement) in an aggregate amount not to exceed the
lesser of (I) such remaining Asset Sale Reduction Amount and (II) the amount of the then applicable U.S. Overadvance Amount (it being understood and agreed that such reduction shall be applied to reduce the remaining scheduled reductions of the
U.S. Overadvance Amount, if any, on a pro rata basis); and 
 (z) then, to the extent of any remaining portion
of the Asset Sale Reduction Amount: 
 (I) permanently reduce the U.S. Commitment (and make any corresponding payment required pursuant to
Section 2.5(c) of the U.S. Credit Agreement) by an amount equal to the product of (x) the U.S. Pro Rata Percentage multiplied by (y) any such remaining Asset Sale Reduction Amount after giving effect to the repayments,
if any, made in connection with the commitment reductions required pursuant to clauses (b)(i)(D)(1)(x) and (b)(i)(D)(1)(y) above; and 
 (II) permanently reduce the Commitment (and make any corresponding payment required pursuant to Section 2.7(c)) by an amount equal to the product of (x) the Canadian Pro Rata Percentage
multiplied by (y) any such remaining Asset Sale Reduction Amount after giving effect to the repayments, if any, made in connection with the commitment reductions required pursuant to clauses (b)(i) (D)(1)(x) and
(b)(i)(D)(1)(y) above; and 
  

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 (2) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after
giving effect to the repayments, if any, made in connection with the commitment reductions required pursuant to clause (b)(i)(D)(1) above to be applied to temporarily repay (without a corresponding commitment reduction) (x) the U.S.
Loans in the manner provided in Section 2.4(b)(i) of the U.S. Credit Agreement in an amount equal to the product of (I) the U.S. Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds
and (y) the Loans in the manner provided in Section 2.6(d)(i) in an amount equal to the product of (I) the Canadian Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds; and

 (E) with respect to the Net Cash Proceeds from any such Asset Disposition or Insurance and Condemnation Event of assets or
property not covered by clauses (b)(i)(A), (b)(i)(B), (b)(i)(C) or (b)(i)(D) above (including, without limitation, any timberlands and any Fixed Assets that are not Canadian Fixed Assets): 
 (1) the U.S. Borrower shall, or shall cause the following to occur: 
 (x) permanently reduce the U.S. Commitment (and make any corresponding payment required pursuant to Section 2.5(c) of the U.S. Credit
Agreement) by an amount equal to the product of (I) the U.S. Pro Rata Percentage multiplied by (II) the Asset Sale Reduction Amount (it being understood and agreed that such reduction shall also be applied to reduce the
remaining scheduled reductions of the U.S. Overadvance Amount, if any, on a pro rata basis); and 
 (y) permanently reduce the
Commitment (and make any corresponding payment required pursuant to Section 2.7(c)) by an amount equal to the product of (I) the Canadian Pro Rata Percentage multiplied by (II) the Asset Sale Reduction Amount (it being
understood and agreed that such reduction shall also be applied to reduce the remaining scheduled reductions of the Overadvance Amount, if any, on a pro rata basis); and 
 (2) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after giving effect to the repayments, if any, made in
connection with the commitment reductions required pursuant to clause (b)(i)(E)(1) above to be applied to temporarily repay (without a corresponding commitment reduction) (x) the U.S. Loans in the manner provided in
Section 2.4(b)(i) of the U.S. Credit Agreement in an amount equal to the product of (I) the U.S. Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds and (y) the Loans in the
manner provided in Section 2.6(d)(i) in an amount equal to the product of (I) the Canadian Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds. 
  

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 Each such permanent reduction and each such repayment shall be made within three (3) Business Days after the receipt
of Net Cash Proceeds of any such Asset Disposition or Insurance and Condemnation Event. 
 (ii) Debt Issuances. If the
U.S. Borrower or any of its Subsidiaries receives Net Cash Proceeds from any Debt Issuance, the U.S. Borrower shall immediately notify the Administrative Agent and upon receipt of such notice, the Administrative Agent shall promptly notify the
Lenders. Upon receipt of such Net Cash Proceeds, 
 (A) the Commitment and the U.S. Commitment shall be reduced by an
amount equal to seventy-five percent (75%) of such Net Cash Proceeds (such amount, the “Debt Issuance Reduction Amount”) with each such reduction to be effected as follows: 
 (1) to permanently reduce the U.S. Commitment (and make any corresponding payment required pursuant to Section 2.5(c) of the
U.S. Credit Agreement) by an amount equal to the product of (x) the U.S. Pro Rata Percentage multiplied by (y) the Debt Issuance Reduction Amount (it being understood and agreed that such reduction shall also be applied to
reduce the remaining scheduled reductions of the U.S. Overadvance Amount, if any, on a pro rata basis); and 
 (2)
to permanently reduce the Commitment (and make any corresponding payment required pursuant to Section 2.7(c)) by an amount equal to the product of (x) the Canadian Pro Rata Percentage multiplied by (y) the Debt
Issuance Reduction Amount (it being understood and agreed that such reduction shall also be applied to reduce the remaining scheduled reductions of the Overadvance Amount, if any, on a pro rata basis); and 
 (B) the U.S. Borrower shall or shall cause the Net Cash Proceeds which remain after giving effect to the repayments, if any, made in
connection with the commitment reductions required pursuant to clause (b)(ii)(A) above to be applied to temporarily repay (without a corresponding commitment reduction) (x) the U.S. Loans in the manner provided in
Section 2.4(b)(i) of the U.S. Credit Agreement in an amount equal to the product of (I) the U.S. Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds and (y) the Loans in the
manner provided in Section 2.6(d)(i) in an amount equal to the product of (I) the Canadian Pro Rata Percentage multiplied by (II) the aggregate amount of such remaining Net Cash Proceeds. 
 Each such permanent reduction and each such repayment shall be made within three (3) Business Days after the receipt of Net Cash Proceeds of any such Debt Issuance.

 (iii) Notwithstanding the foregoing, no later than five (5) Business Days following the date of receipt by the U.S.
Borrower or any of its Subsidiaries of any Net Cash Proceeds from any Insurance and Condemnation Event, the U.S. Borrower shall apply such Net Cash Proceeds in accordance with the applicable subclause of clause (i) above; provided, that no such
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received by the U.S. Borrower or any of its Subsidiaries with respect to such Insurance and Condemnation Event to the extent such Net Cash Proceeds therefrom
are either (A) used, within twelve (12) months after receipt of such Net Cash Proceeds, to reimburse the U.S. Borrower or any of its Subsidiaries for amounts spent by them to replace, repair and/or restore the assets that were the subject
of such Insurance and Condemnation Event or (B) committed, within three (3) months after receipt of such Net Cash Proceeds, to be used to replace, repair and/or restore the assets that were the subject of such Insurance and Condemnation
Event, and are thereafter actually used to replace, repair and/or restore such assets within twelve (12) months after receipt of such Net Cash Proceeds; provided, that any portion of the Net Cash Proceeds not so committed to be reinvested
within such three (3) month period or actually used within such twelve (12) month period shall be applied in accordance with the applicable subclause of clause (i) above; provided, further, that until reinvested, the aggregate
amount of the Net Cash Proceeds to be reinvested shall be used to temporarily repay Loans and U.S. Loans in accordance with the applicable subclause of clause (i) above. 
 SECTION 8.3 Insurance. Maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as
are customarily maintained by similar businesses and as may be required by Applicable Law and as are required by any Security Documents (including, without limitation, hazard and business interruption insurance), and on the Closing Date and from
time to time thereafter deliver to the Administrative Agent upon its reasonable request information in reasonable detail as to the insurance then in effect, stating the names of the insurance companies, the amounts of the insurance, the dates of the
expiration thereof and the properties and risks covered thereby. 
 SECTION 8.4 Accounting Methods and Financial Records.
Maintain a system of accounting, and keep proper books, records and accounts (which shall be true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance with
GAAP and in compliance with the regulations of any Governmental Authority having jurisdiction over it or any of its properties. 
 SECTION 8.5 Payment of Taxes. Pay and discharge all taxes, assessments and other governmental charges that may be levied or assessed upon it or on its income or profits or any of its property; except for any such tax, assessment
or other governmental charge the payment of which is being contested in good faith so long as adequate reserves are maintained with respect thereto in accordance with GAAP. 
 SECTION 8.6 Compliance With Laws and Approvals. Observe and remain in compliance with all Applicable Laws and maintain in full force and
effect all Governmental Approvals, in each case applicable to the conduct of its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
 SECTION 8.7 Environmental Laws. In addition to and without limiting the generality of Section 8.6, (a) comply with, and
ensure such compliance by all tenants and subtenants with all applicable Environmental Laws and obtain and comply with and maintain, and ensure that all tenants and subtenants, if any, obtain and comply with and maintain, any and 

  

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all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws, except where the failure to do so could not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (b) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under Environmental
Laws, and promptly comply with all lawful orders and directives of any Governmental Authority regarding Environmental Laws, except where the failure to conduct or complete such actions, or comply with such orders or directions, could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect and (c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and their respective parents, Subsidiaries, Affiliates, employees, agents,
officers and directors, from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the
presence of Hazardous Materials, or the violation of, noncompliance with or liability under any Environmental Laws applicable to the operations of the U.S. Borrower or any of its Subsidiaries, or any orders, requirements or demands of Governmental
Authorities related thereto, including, without limitation, reasonable attorney’s and consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation expenses, except to the extent that any of the foregoing
directly result from the gross negligence or willful misconduct of the party seeking indemnification therefor, as determined by a court of competent jurisdiction by final nonappealable judgment. 
 SECTION 8.8 Compliance with ERISA. In addition to and without limiting the generality of Section 8.6, (a) except where the
failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply with all material applicable provisions of ERISA with respect to Employee Benefit Plans and the ITA and other
Applicable Law with respect to all Canadian Employee Benefit Plans, (ii) not take any action or fail to take action the result of which could be a liability to the PBGC or any other Governmental Authority or to a Multiemployer Plan or a
Canadian Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any
tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s request such
additional information about any Employee Benefit Plan or Canadian Employee Benefit Plan as may be reasonably requested by the Administrative Agent. 
 SECTION 8.9 Visits and Inspections; Consultant Matters. 
 (a) Visits and Inspections.
Permit representatives of the Administrative Agent or any Lender (including representatives of the U.S. Administrative Agent), from time to time upon prior reasonable notice and during normal business hours, at the Borrower’s expense, to visit
and inspect its properties; inspect, audit and make extracts from its books, records and files, including, but not limited to, management letters prepared by independent accountants; discuss with its principal officers, and its independent
accountants, its business, assets, liabilities, financial condition, results of operations and business prospects; and conduct field audits, examinations and appraisals with respect to the Collateral (including, but not limited to, the Accounts, the
Inventory and the Canadian Fixed Assets), which field audits shall occur no less 

  

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frequently than once per fiscal quarter and which inventory appraisals shall occur no less frequently than once per each six-month period. Notwithstanding
the foregoing, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may do any of the foregoing at any time without advance notice and the Borrower shall be required to bear the cost of all such visits,
inspections, field audits, examinations and appraisals. Notwithstanding the foregoing, field audits, examinations and appraisals with respect to the Collateral shall be conducted only by the Administrative Agent, in its sole discretion or at the
request of any Lender. 
 (b) Consultant Matters. (i) Permit the retention of Consultants and (ii) cooperate with any such
Consultants and allow any such Consultants, from time to time upon prior reasonable notice and during normal business hours, at the Borrower’s expense, to visit and inspect any of the properties of the Borrower and its Subsidiaries, examine
corporate, financial and operating records of the Borrower and its Subsidiaries, make copies thereof or abstracts therefrom and discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with their respective directors,
officers, and independent public accountants. 
 SECTION 8.10 Additional Guarantors; Canadian Fixed Assets and Korean Shares.

 (a) Within thirty (30) days after (i) the redesignation of an Immaterial Subsidiary as a Material Subsidiary in accordance with
Section 8.10(b) below or (ii) the creation or acquisition of any Material Subsidiary, including in connection with any Permitted Acquisition (any such Subsidiary, a “New Material Subsidiary”), cause to be executed
and delivered to the Administrative Agent (unless otherwise agreed to by the Administrative Agent): (A) a duly executed Subsidiary Guaranty Agreement (or, if applicable, a joinder agreement in form and substance reasonably satisfactory to the
Administrative Agent joining such New Material Subsidiary to the Subsidiary Guaranty Agreement), the Collateral Agreement and any other applicable Security Documents, (B) such updated Schedules to the Loan Documents as requested by the
Administrative Agent with regard to such Person (including, without limitation, updated Schedule 6.1(b) reflecting the creation or acquisition of such New Material Subsidiary), (C) such documents and certificates referred to in
Section 5.2 as may be reasonably requested by the Administrative Agent (including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to the New Material Subsidiary,
the Loan Documents and such other matters as the Lenders shall request), and (D) such other documents and certificates as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the
Administrative Agent. 
 (b) The Borrower may, at any time and upon written notice to the Administrative Agent, redesignate any Immaterial
Subsidiary as a Material Subsidiary. Further, promptly after the date on which the Borrower or the Administrative Agent determines that any Subsidiary no longer qualifies as an Immaterial Subsidiary such Subsidiary shall be redesignated as a
Material Subsidiary and shall comply with clause (a) of this Section. 
 (c) The Borrower may, at any time and upon written
notice to the Administrative Agent, designate any direct or indirect parent company of the Borrower that is organized under the laws of Canada or any province thereof as a Parent Guarantor by causing such direct or 

  

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indirect parent company of the Borrower to execute and deliver all documents and certificates required to be delivered pursuant to clause (a) of
this Section (provided that such direct or indirect parent company of the Borrower shall, rather than execute a Subsidiary Guaranty Agreement or a joinder thereto, either (i) execute a parent guaranty agreement in form and substance
satisfactory to the Administrative Agent or (ii) join as a guarantor under Article XI). 
 (d) Within thirty (30) days after
the creation or acquisition of any new Subsidiary, including in connection with any Permitted Acquisition, cause to be executed and delivered to the Administrative Agent (unless otherwise agreed to by the Administrative Agent) a duly executed
joinder agreement in the form attached to the Intercompany Subordination Agreement joining such new Subsidiary thereto. 
 (e) (i) (A)
Concurrently with the delivery of the documentation required to be delivered pursuant to Section 8.10(e)(ii)(A) of the U.S. Credit Agreement but in no event later than April 15, 2008, the U.S. Administrative Agent shall have received:

 (1) evidence satisfactory to the U.S. Administrative Agent that the U.S. Borrower shall be diligently pursuing in good
faith the rendering of the solvency opinions referred to in Section 8.10(e)(i)(B) and Section 8.10(e)(i)(C) by a third party consultant reasonably acceptable to the U.S. Administrative Agent (including having delivered to
such third party consultant all financial and other information necessary to provide the basis for the delivery of such solvency opinion); and 
 (2) information, in form and substance reasonably satisfactory to the U.S. Administrative Agent, confirming (x) that the New U.S. Borrowers own, free and clear of any Liens, the New U.S. Borrower Fixed Assets and
(y) the ability of the New U.S. Borrowers to grant to the U.S. Administrative Agent, on behalf of the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, a perfected first priority security interest in the
New U.S. Borrower Fixed Assets without the consent or approval of any third Person; and 
 (B) Concurrently with the delivery
of the documentation required to be delivered pursuant to Section 8.10(e)(ii)(B) of the U.S. Credit Agreement but in no event later than May 15, 2008, the Administrative Agent shall have received: 
 (1) a copy of a solvency opinion from an opinion provider reasonably acceptable to the Administrative Agent as to the solvency of the
Original U.S. Borrower after giving effect to the New U.S. Borrower Transactions and the transactions contemplated by the Fourth Amendment, this Agreement and the joinder agreement referred to in clause(2) below and such other matters as the
Lenders shall request (which such opinion shall expressly permit reliance (or be accompanied by a letter, in form and substance satisfactory to the Administrative Agent, executed by the opinion provider that expressly permits reliance) by the
Administrative Agent, the Lenders and any successors and assigns of the Administrative Agent or any Lender); 
  

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 (2) a duly executed joinder agreement, in form and substance reasonably satisfactory to
the Administrative Agent, joining each New U.S. Borrower to Article XI of this Agreement (as a U.S. Borrower), the Intercompany Subordination Agreement and any other applicable Loan Documents; 
 (3) such updated Schedules to the Loan Documents as requested by the Administrative Agent or the U.S. Administrative Agent with regard to
the New U.S. Borrowers (including, without limitation, an updated Schedule 6.1(b)); 
 (4) a certificate of a
Responsible Officer of each New U.S. Borrower certifying as to the incumbency and genuineness of the signature of each officer of each New U.S. Borrower executing the Loan Documents to which it is a party and certifying that attached thereto is a
true, correct and complete copy of (w) the articles or certificate of incorporation or formation of each New U.S. Borrower and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction
of incorporation or formation, (x) the bylaws or other governing document of each New U.S. Borrower as in effect on the date hereof, (y) resolutions duly adopted by the board of directors or other governing body of each New U.S. Borrower
authorizing the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and (z) certificates as of a recent date of the good standing of each New
U.S. Borrower under the laws of its jurisdiction of incorporation or formation; 
 (5) the results of a Lien search
(including a search as to judgments, pending litigation and tax matters) made against each New U.S. Borrower under the Uniform Commercial Code (or applicable judicial docket) as in effect in each jurisdiction in which filings or recordations under
the Uniform Commercial Code should be made to evidence or perfect security interests in all assets of each New U.S. Borrower, indicating among other things that the assets of each New U.S. Borrower are free and clear of any Liens (except Permitted
Liens); 
 (6) evidence in form and substance reasonably satisfactory to the Administrative Agent confirming the interest of
the U.S. Administrative Agent (as loss payee and additional insured and, with respect to the real property subject to the New U.S. Borrower Mortgages (other than the Supplemental New U.S. Borrower Mortgage), as mortgagee) with respect to such
insurance coverage; 
  

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 (7) a duly executed counterpart of each New U.S. Borrower Mortgage (other than the
Supplemental New U.S. Borrower Mortgage); 
 (8) all filings and recordations that are necessary to perfect the security
interests of the U.S. Administrative Agent, on behalf of itself, the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, in the Collateral granted by each New U.S. Borrower under each New U.S. Borrower Mortgage
(other than the Supplemental New U.S. Borrower Mortgage) and evidence satisfactory to the Administrative Agent that upon such filings and recordations such security interests constitute valid and perfected first priority Liens therein; 

(9) favorable opinions of counsel of each New U.S. Borrower addressed to the Administrative Agent and the Lenders with respect to each
New U.S. Borrower, this Agreement, each of the New U.S. Borrower Mortgages (other than the Supplemental New U.S. Borrower Mortgage) and the other Loan Documents to which the New U.S. Borrowers are a party and such other matters as the Lenders shall
reasonably request (which such opinions shall expressly permit reliance by successors and assigns of the Administrative Agent or any Lender); and 
 (10) such other instruments, documents and certificates as the Administrative Agent shall reasonably request. 
 (C) Concurrently with the delivery of the documentation required to be delivered pursuant to Section 8.10(e)(ii)(C) of the U.S. Credit Agreement but in no event later than May 22, 2008, the
Administrative Agent shall have received a copy of a solvency opinion from an opinion provider reasonably acceptable to the Administrative Agent as to the solvency of each of the New U.S. Borrowers (other than BNS Holdings if BNS Holdings is a
holding company that holds only the Capital Stock of the Coosa Pines U.S. Borrower and the Grenada U.S. Borrower and has no creditors other than the U.S. Lenders), in each case after giving effect to the New U.S. Borrower Transactions and the
transactions contemplated by the Fourth Amendment, this Agreement and the joinder agreement referred to in Section 8.10(e)(i)(B)(2) above and such other matters as the Lenders shall request (which such opinion shall expressly permit
reliance (or be accompanied by a letter, in form and substance satisfactory to the Administrative Agent, executed by the opinion provider that expressly permits reliance) by the Administrative Agent, the Lenders and any successors and assigns of the
Administrative Agent or any Lender). 
 (D) Concurrently with the delivery of the documentation required to be delivered
pursuant to Section 8.10(e)(ii)(D) of the U.S. Credit Agreement but in no event later than May 30, 2008, the Administrative Agent shall have received: 
  

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 (1) to the extent reasonably requested by the Administrative Agent, evidence in form and
substance reasonably satisfactory to the Administrative Agent confirming the interest of the U.S. Administrative Agent as loss payee, additional insured and mortgagee with respect to the Coosa Pines Mill and Coosa Pines Real Property subject to the
Supplemental New U.S. Borrower Mortgage; 
 (2) a duly executed counterpart of the Supplemental New U.S. Borrower Mortgage;

 (3) all filings and recordations that are necessary to perfect the security interests of the U.S. Administrative Agent, on
behalf of itself, the other Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, in the Collateral granted by the Supplemental New U.S. Borrower Mortgagor, and evidence satisfactory to the Administrative Agent
that upon such filings and recordations such security interests constitute valid and perfected first priority Liens therein (or, to the extent acceptable to the Administrative Agent, evidence satisfactory to the Administrative Agent that upon
delivery of the Supplemental New U.S. Borrower Mortgage, all right, title and interest of the Supplemental New U.S. Borrower Mortgagor shall be subordinated in all respects to the security interests of the U.S. Administrative Agent, on behalf of
itself, the other Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties, with respect to the interests subject to the Supplemental New U.S. Borrower Mortgage); 
 (4) favorable opinions of counsel of the Supplemental New U.S. Borrower Mortgagor addressed to the Administrative Agent and the Lenders
with respect to the Supplemental New U.S. Borrower Mortgage and such other matters as the Lenders shall reasonably request (which such opinions shall expressly permit reliance by successors and assigns of the Administrative Agent or any Lender); and

 (5) such other instruments, documents and certificates as the Administrative Agent shall reasonably request; 

(E) As of the Seventh Amendment Effective Date, the Borrower has delivered the documentation required pursuant to
Section 8.10(e)(i) of this Agreement. 
 (ii) As soon as possible but in any event no later than July 31,
2008 (as such date may be extended by the Administrative Agent and the U.S. Administrative Agent in their sole discretion): 
 (A) a final title policy, insuring the first priority Liens of the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties and showing no Liens prior to the Liens of the Secured Parties (other than the

  

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Additional Credit Lenders) and the U.S. Secured Parties (other than for ad valorem taxes not yet due and payable) and containing only such other customary
title exceptions as are reasonably acceptable to the U.S. Administrative Agent, with title insurance companies acceptable to the U.S. Administrative Agent, on each of the Coosa Pines Mill Real Property and Grenada Mill Real Property (it being agreed
that the U.S. Borrower and its Subsidiaries shall provide or obtain any customary affidavits and indemnities as may be required or necessary to obtain title insurance satisfactory to the U.S. Administrative Agent); 
 (B) copies of all recorded documents creating exceptions to the title policies referred to in Section 8.10(e)(ii)(A); 

(C) a certification form of a certification from the National Research Center, or any successor agency thereto, regarding each of the
Coosa Pines Mill Real Property and the Grenada Mill Real Property; 
 (D) copies of as-built surveys of a recent date of each
of the Coosa Pines Mill Real Property and the Grenada Mill Real Property, in each case, certified as of a recent date by a registered engineer or land surveyor. Each such survey shall be accompanied by an affidavit (a “Survey
Affidavit”) of an authorized signatory of the owner of such property stating that there have been no improvements or encroachments to the property since the date of the respective survey such that the existing survey is no longer accurate.
Each such survey shall show the area of such property, all boundaries of the land with courses and distances indicated, including chord bearings and arc and chord distances for all curves, and shall show dimensions and locations of all easements,
private drives, roadways, and other facts materially affecting such property, and shall show such other details as the U.S. Administrative Agent may reasonably request, including, without limitation, any encroachment (and the extent thereof in feet
and inches) onto the property or by any of the improvements on the property upon adjoining land or upon any easement burdening the property; any improvements, to the extent constructed, and the relation of the improvements by distances to the
boundaries of the property, to any easements burdening the property, and to the established building lines and the street lines; and if improvements are existing, (x) a statement of the number of each type of parking space required by
Applicable Laws, ordinances, orders, rules, regulations, restrictive covenants and easements affecting the improvement, and the number of each such type of parking space provided, and (y) the locations of all utilities serving the improvement;

 (E) a Phase I environmental assessment and such other environmental report reasonably requested by the U.S. Administrative
Agent regarding each of the Coosa Pines Mill Real Property and the Grenada Mill Real Property, in each case prepared by an environmental engineering firm acceptable to the U.S. Administrative Agent showing no environmental conditions in violation of
Environmental Laws or liabilities under Environmental Laws, either of which could reasonably be expected to have a Material Adverse Effect; and 
  

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 (F) such other certificates, documents and information (including, without limitation,
engineering and structural reports, permanent certificates of occupancy and evidence of zoning compliance, in each case, with respect to each of the Coosa Pines Mill Real Property and the Grenada Mill Real Property) as may be reasonably requested by
the U.S. Administrative Agent, all in form, consent and scope reasonably satisfactory to the U.S. Administrative Agent. 
 (iii) In each case noted above, the U.S. Administrative Agent shall have received, on behalf of itself, the Lenders and any other applicable Person, all accrued and unpaid fees, expenses or commissions payable to the Administrative Agent
and the Lenders under this Agreement (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and such amounts as may be due to any other Person in connection with the transactions contemplated hereby,
including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 (f) (i) As promptly as possible, but in no event later than November 26, 2008, the Administrative Agent shall have received: 
 (A) a duly executed copy of each Canadian Fixed Asset Mortgage; 
 (B) a duly executed copy of the equitable mortgage encumbering the Canadian Fixed Assets together with a copy of the applicable PPSA
filings; 
 (C) a duly executed amended and restated Pledge forming part of the Quebec Collateral Documents; 
 (D) evidence in form and substance reasonably satisfactory to the Administrative Agent confirming the interest of the Administrative Agent
as mortgagee with respect to any insurance on the real property constituting Canadian Fixed Assets that is subject to a Canadian Fixed Asset Mortgage; 
 (E) all filings and recordations that are necessary to perfect the security interests of the Administrative Agent, on behalf of itself and the other Secured Parties, in the Canadian Fixed Assets granted by the
applicable Credit Party under each Canadian Fixed Asset Mortgage and evidence satisfactory to the Administrative Agent that upon such filings and recordations such security interests constitute valid and perfected first priority Liens therein;

 (F) favorable opinions of counsel of the Credit Parties addressed to the Administrative Agent, the U.S. Administrative
Agent, the Lenders and the U.S. Lenders with respect to each Canadian Fixed Asset Mortgage and such other matters as the Lenders shall reasonably request, including for greater certainty, as to absence of breach of documents governing
Borrower’s Existing Notes (which 

  

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such opinions shall expressly permit reliance by successors and assigns of the Administrative Agent, the U.S. Administrative Agent, any Lender or any U.S.
Lender); 
 (G) a final title insurance policy, insuring the first priority Liens of the Secured Parties and showing no Liens
prior to the Liens of the Secured Parties (other than for ad valorem taxes not yet due and payable) and containing only such other customary title exceptions as are reasonably acceptable to the Administrative Agent, with title insurance companies
acceptable to the Administrative Agent, on the Canadian Fixed Assets subject to the Canadian Fixed Asset Mortgages (it being agreed that the Borrower and its Subsidiaries shall provide or obtain any customary affidavits and indemnities as may be
required or necessary to obtain title insurance satisfactory to the Administrative Agent); 
 (H) copies of all recorded
documents creating exceptions to the coverage of the title insurance policies referred to in Section 8.10(f)(i)(G); 
 (I) results of a Lien search, in form and substance satisfactory thereto, made against each of the Credit Parties (except the U.S. Borrower); 
 (J) the Administrative Agent shall have received a certificate, in form and substance satisfactory to the Administrative Agent, dated as of the date of the Canadian Fixed Asset Mortgages, providing a calculation (with
details) of the aggregate amount of the Obligations (expressed in Canadian Dollars) capable of being secured without triggering any requirement to provide Liens to any other Person pursuant to the Existing Notes (such Indebtedness, the
“Permitted Secured Indebtedness”), duly certified by a Responsible Officer of the Borrower; 
 (K) the
Administrative Agent shall have received favorable opinions of counsel to the Credit Parties addressed to the Administrative Agent and the Lenders, including, without limitation, a no conflict opinion with respect to the Existing Notes issued by the
Borrower and the additional Collateral being provided to the Administrative Agent and the Lenders in connection with this Agreement; and 
 (L) such other instruments, documents and certificates as the Administrative Agent may reasonably request, including an officer’s certificate with respect to the Existing Notes; 
 (ii) On or prior to December 15, 2008, the Administrative Agent shall have received: 
 (A) an environmental assessment and such other environmental report reasonably requested by the Administrative Agent regarding each of the
real property locations comprising the Canadian Fixed Assets subject to the Canadian Fixed Asset Mortgages, in each case prepared by an environmental engineering 

  

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firm acceptable to the Administrative Agent showing no environmental conditions in violation of Environmental Laws or liabilities under Environmental Laws,
either of which could reasonably be expected to have a Material Adverse Effect; and 
 (B) such other certificates, documents
and information (including, without limitation, solvency certificates, officer’s certificates with respect to Existing Notes, permanent certificates of occupancy and evidence of zoning compliance, in each case, with respect to each of the real
property locations comprising the Canadian Fixed Assets subject to the Canadian Fixed Asset Mortgages) as may be reasonably requested by the Administrative Agent, all in form, consent and scope reasonably satisfactory to the Administrative Agent;
and 
 (iii) On or prior to January 10, 2009, the Administrative Agent shall have received copies of as-built surveys of
a recent date of each of the real property locations comprising the Canadian Fixed Assets subject to the Canadian Fixed Asset Mortgages, in each case certified as of a recent date by a registered engineer or land surveyor and addressed to the
Administrative Agent and the Lenders (which survey shall expressly permit reliance by successors and assigns of the Administrative Agent and the Lenders). Each such survey shall be accompanied by a Survey Affidavit. Each such survey shall show,
without limitation, the area of such property, all boundaries of the land with courses and distances indicated, including chord bearings and arc and chord distances for all curves, and shall show dimensions and locations of all easements, private
drives, roadways, and other facts materially affecting such property, and shall show such other details as the Administrative Agent may reasonably request, including, without limitation, any encroachment (and the extent thereof, in metric or
imperial measures) onto the property or by any of the improvements on the property upon adjoining land or upon any easement burdening the property; any improvements, to the extent constructed, and the relation of the improvements by distances to the
boundaries of the property, to any easements burdening the property, and to the established building lines and the street lines; and if improvements are existing, (A) a statement of the number of each type of parking space required by
Applicable Laws, ordinances, orders, rules, regulations, restrictive covenants and easements affecting the improvement, and the number of each such type of parking space provided, and (B) the locations of all utilities serving the improvement.

 (g) Prior to November 30, 2008, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative
Agent shall have received (i) a duly executed copy of each applicable Foreign Pledge Document with respect to a pledge of one hundred percent (100%) of the total outstanding Korean Shares, including, without limitation, if applicable,
original stock certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of the Republic of Korea) evidencing the Korean Shares, together with an appropriate undated stock power for each certificate duly executed in blank
by Bowater Lahave Corporation), (ii) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the Administrative Agent in connection therewith (including, without limitation, favorable legal
opinions of counsel addressed to the Administrative Agent and the Lenders with 

  

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respect to Korean Shares, the Loan Documents and such other matters as the Administrative Agent shall reasonably request), and (iii) such other
documents and certificates as may be reasonably requested by the Administrative Agent (in consultation with Bowater Lahave Corporation), all in form, content and scope reasonably satisfactory to the Administrative Agent. Notwithstanding the
foregoing, subject to Section 13.3, the Administrative Agent may waive any or all of the requirements contained in this Section 8.10(g) to the extent that, in the sole discretion of the Administrative Agent, they are
impracticable or pose a materially undue burden on Bowater Lahave Corporation or on Bowater-Korea Co., Ltd. 
 (h) In each case noted in
Section 8.10(f) or 8.10(g) above, the Administrative Agent shall have received, on behalf of itself, the Lenders and any other applicable Person, all accrued and unpaid fees, expenses or commissions payable to the Administrative
Agent and the Lenders under this Agreement (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and such amounts as may be due to any other Person in connection with the transactions contemplated
hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 SECTION 8.11 Use of Proceeds. (a) The Borrower shall use the proceeds of the Extensions of Credit (other than the proceeds of the EDC Credit Loans) (i) to finance the acquisition of Capital Assets,
(ii) to refinance the Existing Facilities and (iii) for working capital and general corporate purposes of the U.S. Borrower and its Subsidiaries, including the payment of certain fees and expenses incurred in connection with this
Agreement. The Borrower shall use the proceeds of the EDC Credit Loans for working capital and general corporate purposes of the Borrower and its Subsidiaries.  
 SECTION 8.12 Further Assurances. Make, execute and deliver all such additional and further acts, things, deeds and instruments as the Administrative Agent or the Required Agreement Lenders (through the
Administrative Agent) may reasonably require to document and consummate the transactions contemplated hereby and to vest completely in and insure the Administrative Agent and the Lenders their respective rights under this Agreement, the Letters of
Credit and the other Loan Documents. 
 ARTICLE IX 
 FINANCIAL COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the
Commitment terminated, unless consent has been obtained in the manner set forth in Section 14.2, the U.S. Borrower and its Subsidiaries on a Consolidated basis will not: 
 SECTION 9.1 Consolidated Senior Secured Leverage Ratio. As of any fiscal quarter end, permit the Consolidated Senior Secured Leverage Ratio to
be greater than the corresponding ratio set forth below: 
  

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	 Applicable Period
	  	 Maximum Ratio

	Third Amendment Effective Date to March 31, 2008	  	4.50 to 1.00
		
	April 1, 2008 through and including June 30, 2008	  	2.75 to 1.00
		
	July 1, 2008 through and including September 30, 2008	  	1.50 to 1.00
		
	October 1, 2008 through and including December 31, 2008	  	1.40 to 1.00
		
	January 1, 2009 and thereafter	  	1.25 to 1.00

 SECTION 9.2 Interest Coverage Ratio. As of any fiscal quarter ending during the
periods specified below, permit the ratio of (a) the sum, without duplication, of (i) Consolidated Adjusted EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date, plus (ii) the
amount of Specified Non-Recurring Charges taken during the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date, to (b) Consolidated Interest Expense paid or payable in cash for the period of four
(4) consecutive fiscal quarters ending on or immediately prior to such date, to be less than the corresponding ratio set forth below: 
  

			
	 Applicable Period
	  	 Minimum Ratio

	Third Amendment Effective Date to March 31, 2008	  	0.75 to 1.00
		
	April 1, 2008 through and including June 30, 2008	  	1.00 to 1.00
		
	July 1, 2008 through and including September 30, 2008	  	1.40 to 1.00
		
	October 1, 2008 through and including December 31, 2008	  	1.75 to 1.00
		
	January 1, 2009 and thereafter	  	2.00 to 1.00

 ARTICLE X 
 NEGATIVE COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the
Commitment terminated, unless consent has been obtained in the manner set forth in Section 14.2, the U.S. Borrower and the Borrower will not and will not permit any of their respective Subsidiaries to: 
 SECTION 10.1 Limitations on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness except: 
  

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 (a) (i) the Obligations (excluding Hedging Obligations permitted pursuant to Section 10.1(c))
and (ii) the Guaranty Obligations in favor of the Administrative Agent for the benefit of the Secured Parties; 
 (b) (i) the U.S.
Obligations (excluding any U.S. Obligations pursuant to Hedging Agreements permitted pursuant to Section 10.1(c)) and (ii) the Guaranty Obligations in respect of the U.S. Obligations in favor of the U.S. Administrative Agent for the
benefit of the U.S. Secured Parties; 
 (c) Indebtedness incurred in connection with a Hedging Agreement (i) which is entered into for
interest rate, foreign currency or other business purposes and not for speculative purposes and (ii) with a counterparty reasonably satisfactory to the Administrative Agent and the U.S. Administrative Agent; provided that any
counterparty that is a Lender, a U.S. Lender or any Affiliate thereof shall be deemed satisfactory to the Administrative Agent and the U.S. Administrative Agent; 
 (d) Indebtedness existing on the Closing Date and not otherwise permitted under this Section and, to the extent that the outstanding principal amount of such Indebtedness is in excess of $25,000,000, listed on
Schedule 10.1 (including any Indebtedness (including, without limitation, any Guaranty Obligation of Indebtedness of another Person but excluding the April 2008 Convertible Indebtedness) issued to refinance or to refund such Indebtedness or
any Indebtedness which constitutes a renewal or extension of such Indebtedness); provided that (i) the principal amount of such Indebtedness may not be increased at the time of such refinancing, refunding, renewal or extension except
(A) by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing, refunding, renewal or extension and by an amount equal to any existing commitments
unutilized thereunder and (B) by additional amounts, to the extent that the Consolidated Total Leverage Ratio, on a pro forma basis after giving effect to such increase, would be no greater than 5.50 to 1.00, (ii) no Default or
Event of Default exists and is continuing or would be caused by the refinancing, refunding, renewal or extension thereof, (iii) the Administrative Agent and the U.S. Administrative Agent shall have received satisfactory written evidence that
the U.S. Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement and the U.S. Credit Agreement on a pro forma basis after giving effect to the refinancing, refunding, renewal or extension thereof,
(iv) the weighted average life of such Indebtedness shall not be shorter than the weighted average life of the Indebtedness being refinanced, refunded, renewed or extended, (v) any terms of subordination set forth in the Indebtedness being
refinanced, refunded, renewed or extended are not adversely affected in any material respect, (vi) if the Indebtedness being refinanced is not secured by the assets of any Credit Party or its Subsidiaries or any U.S. Credit Party or its
Subsidiaries, such refinancing Indebtedness shall also not be secured by the assets of any Credit Party or its Subsidiaries or any U.S. Credit Party or its Subsidiaries and (vii) none of the Existing Notes nor any Indebtedness incurred in
accordance with this paragraph to refinance, refund, renew or extend the Existing Notes shall be guaranteed by the U.S. Borrower or any of its Subsidiaries (other than (A) those Existing Notes which are guaranteed by the U.S. Borrower as of the
Closing Date and identified on Schedule 10.1 as being so guaranteed and (B) any Indebtedness issued to refinance any Existing Notes which, as of the Closing Date, (1) have an outstanding principal balance in excess of $50,000,000
and (2) mature or are subject to mandatory redemption prior to the U.S. Maturity Date); 
  

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 (e) Indebtedness incurred in connection with Capital Leases, including those Capital Leases existing on
the Closing Date, and purchase money Indebtedness, including all purchase money Indebtedness existing on the Closing Date, in an aggregate amount not to exceed $50,000,000 on any date of determination; 
 (f) (i) Guaranty Obligations with respect to Indebtedness permitted pursuant to subsections (c), (e), (h), (l),
(m) and (n) of this Section (provided that any Guaranty Obligations of Indebtedness incurred pursuant to subsection (h) or, to the extent applicable, subsection (n) of this Section shall be
subordinated to the Obligations and the U.S. Obligations to the same extent as the Indebtedness that is being guaranteed); or 
 (ii) Guaranty Obligations of the Original U.S. Borrower with respect to the April 2008 Convertible Indebtedness; provided that (A) the Original U.S. Borrower shall not be permitted to create, incur, assume or suffer to exist
such Guaranty Obligations unless (1) it shall have delivered to the U.S. Administrative Agent evidence, in form and substance reasonably satisfactory to the U.S. Administrative Agent, that the Abitibi Entities shall have consummated (or will
concurrently consummate) their previously announced financing plan which will consist of the following: (x) $250,000,000 to $325,000,000 of new senior unsecured exchange notes of Abitibi, (y) $350,000,000 to $450,000,000 of new 364-day
term loans of Abitibi and (z) approximately $400,000,000 of new senior secured notes or a term loan of Abitibi not to exceed a five year term (provided that Abitibi may replace or amend the financings described in this clause
(A)(1) above so long as such replacement or amendment consists of non-convertible debt financings of Abitibi that are not guaranteed by, or secured by the assets of, the U.S. Borrower or any of its Subsidiaries and would not reduce the aggregate
amount of proceeds reflected above in this clause (A) in excess of $50,000,000) or (2) the proceeds of such Indebtedness are used to permanently reduce, on a pro rata basis, the Commitment under this Agreement and the U.S.
Commitment and to permanently repay, on a pro rata basis, Extensions of Credit under this Agreement and U.S. Extensions of Credit under the U.S. Credit Agreement or for such other use approved in writing by the Required Lenders (it being understood
that any use that involves the reduction of the commitments or repayment of the extensions of credit under this Credit Facility or the U.S. Credit Facility shall continue to be applied to this Credit Facility and the U.S. Credit Facility on a pro
rata basis unless otherwise agreed to by the Required Agreement Lenders and the U.S. Required Agreement Lenders); and (B) such Guaranty Obligations shall be unsecured and shall not exceed $350,000,000 in an aggregate principal amount (plus any
paid-in-kind interest thereon) on any date of determination; 
 (g) (i) (A) Indebtedness owed by any U.S. Credit Party to any other U.S.
Credit Party, including, without limitation, Indebtedness evidenced by the New U.S. Borrower Notes (provided that, if requested by the U.S. Administrative Agent, such Indebtedness shall be subordinated to the U.S. Obligations on terms and
conditions reasonably satisfactory to the U.S. 

  

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Administrative Agent) and (B) Indebtedness owed by any Credit Party (other than the U.S. Borrower) to any other Credit Party (other than the U.S.
Borrower) (provided that, if requested by the Administrative Agent, such Indebtedness shall be subordinated to the Obligations on terms and conditions reasonably satisfactory to the Administrative Agent); 
 (II) (A) Indebtedness owed by any Credit Party (other than the U.S. Borrower) to any U.S. Credit Party (provided that such
Indebtedness shall be payable by such Credit Party on demand by the applicable U.S. Credit Party) and (B) Indebtedness owed by any U.S. Credit Party to any Credit Party (provided that such Indebtedness shall be payable by such U.S.
Credit Party (other than the U.S. Borrower) on demand by the applicable Credit Party); 
 (iii) Indebtedness owed by any
Subsidiary which is not a U.S. Credit Party or a Credit Party to any other Subsidiary which is not a U.S. Credit Party or a Credit Party; 
 (iv) Indebtedness owed by any U.S. Credit Party or any Credit Party to a Subsidiary that is not a U.S. Credit Party or a Credit Party (provided that such Indebtedness (other than Indebtedness existing as of the
Closing Date pursuant to the Bowater-Calhoun Arrangement) shall be subordinated to the U.S. Obligations and the Obligations, as applicable, pursuant to an Intercompany Subordination Agreement); and 
 (v) (A) Indebtedness owed by any Subsidiary that is not a U.S. Credit Party or a Credit Party to a U.S. Credit Party or a Credit Party
(provided that such Indebtedness shall be payable by such Subsidiary on demand by the U.S. Credit Party or the Credit Party, as applicable, to the extent required pursuant to the Intercompany Subordination Agreement); provided that the
aggregate amount of such Indebtedness, together with any equity or capital investments and permitted pursuant to Section 10.3(g) (without duplication), shall not exceed $35,000,000 outstanding on any date of determination (which amount
shall be calculated as the net balance of such loans, advances and investments as reduced by any repayments or distributions made with respect thereto) and (B) any loans and advances made by the U.S. Borrower to Bowater Canada Finance
Corporation to pay interest on the BCFC Notes; 
 (h) Subordinated Indebtedness; provided that in the case of each issuance of
Subordinated Indebtedness, (i) no Default or Event of Default shall have occurred and be continuing or would be caused by the issuance of such Subordinated Indebtedness, (ii) the Consolidated Total Leverage Ratio on pro forma basis
after giving effect to issuance of such Subordinated Indebtedness is no greater than 5.50 to 1.00 and (iii) the U.S. Administrative Agent and the Administrative Agent shall have received satisfactory written evidence that the U.S. Borrower and
its Subsidiaries would be in compliance with all covenants contained in this Agreement and the U.S. Credit Agreement on a pro forma basis after giving effect to the issuance of any such Subordinated Indebtedness; 
 (i) Indebtedness of the U.S. Borrower or any of its Subsidiaries as an account party in respect of trade letters of credit in an aggregate amount not to
exceed $25,000,000 on any date of determination; provided that no such trade letter of credit shall be secured by any assets of the U.S. Borrower or any of its Subsidiaries other than the assets being acquired or shipped pursuant to such
letter of credit; 
  

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 (j) Indebtedness (i) of any Person that becomes a Subsidiary after the Closing Date in connection
with any Permitted Acquisition or (ii) assumed in connection with any assets acquired in connection with any Permitted Acquisition, and the refinancing, refunding, renewal and extension (but not the increase in the aggregate principal amount)
thereof; provided that (A) such Indebtedness exists at the time such Person becomes a Subsidiary or such assets are acquired and is not created in contemplation of, or in connection with, such Person becoming a Subsidiary or such assets
being acquired and (B) notwithstanding anything to the contrary contained in this Agreement, neither the U.S. Borrower nor any other Subsidiary (other than such Person) shall have any liability or other obligation with respect to such
Indebtedness (other than any liability or other obligation of the U.S. Borrower or any of its Subsidiaries permitted hereunder which existed prior to the time that such Person became a Subsidiary or such asset was acquired); 
 (k) [Intentionally Omitted]; 
 (l) [Intentionally Omitted]; 
 (m) unsecured Indebtedness in a minimum principal amount of no less than $150,000,000;
provided that (i) no Default or Event of Default has occurred or would result after giving effect thereto, (ii) the U.S. Borrower and its Subsidiaries would be in compliance with all covenants contained in Article IX on a
pro forma basis after giving effect thereto, (iii) the Net Cash Proceeds of any such Debt Issuance permitted pursuant to this clause (m) shall be applied pursuant to, and in accordance with, Section 8.2(b) and
(iv) the terms and conditions applicable to such Indebtedness shall be reasonably satisfactory to the Administrative Agent and the U.S. Administrative Agent; and 
 (n) Additional Indebtedness outstanding as of the Tenth Amendment Effective Date not otherwise permitted pursuant to this Section in an aggregate amount not to exceed $25,000,000. 
 SECTION 10.2 Limitations on Liens. Create, incur, assume or suffer to exist, any Lien on or with respect to any of its assets or properties
(including, without limitation, shares of Capital Stock), real or personal, whether now owned or hereafter acquired, except: 
 (a) (i) Liens
of the Administrative Agent for the benefit of the Secured Parties, (ii) Liens of the U.S. Administrative Agent for the benefit of the U.S. Secured Parties and (iii) Liens on the New U.S. Borrower Fixed Assets of the U.S. Administrative
Agent for the benefit of the Secured Parties (other than the Additional Credit Lenders) and the U.S. Secured Parties pursuant to the New U.S. Borrower Mortgages; 
 (b) Liens not otherwise permitted by this Section and in existence on the Closing Date and, with respect to each Credit Party and each U.S. Credit Party, described on Schedule 10.2 (including Liens incurred in
connection with any refinancing, refunding, renewal or extension of Indebtedness pursuant to Section 10.1(d) solely to the extent that the such Liens 

  

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were in existence on the Closing Date and described on Schedule 10.2; provided that the scope of any such Lien shall not be increased, or
otherwise expanded, to cover any additional property or type of asset, as applicable, beyond that in existence on the Closing Date); 
 (c)
Liens for taxes, assessments and other governmental charges or levies not yet due or as to which the period of grace (not to exceed thirty (30) days), if any, related thereto has not expired or which are being contested in good faith and by
appropriate proceedings if adequate reserves are maintained to the extent required by GAAP; 
 (d) the claims of materialmen, mechanics,
carriers, warehousemen, processors or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, (i) which are not overdue for a period of more than thirty (30) days or (ii) which are being
contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP; 
 (e) Liens
consisting of deposits or pledges made in the ordinary course of business in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance or similar legislation; 
 (f) Liens constituting encumbrances in the nature of zoning restrictions, easements and rights or restrictions of record on the use of real property or
other similar restrictions, which do not, in any case, impair the use thereof in the ordinary conduct of business; 
 (g) Liens securing
Indebtedness permitted under Section 10.1(e); provided that (i) such Liens shall be created substantially simultaneously with the acquisition or lease of the related asset, (ii) such Liens do not at any time encumber any
property other than the property financed by such Indebtedness, (iii) the amount of Indebtedness secured thereby is not increased and (iv) the principal amount of Indebtedness secured by any such Lien shall at no time exceed one hundred
percent (100%) of the original purchase price or lease payment amount of such property at the time it was acquired; 
 (h) Liens
securing judgments for the payment of money not constituting an Event of Default under Section 12.1(m) or securing appeal or other surety bonds relating to such judgments; 
 (i) Liens on tangible property or tangible assets of the U.S. Borrower or any of its Subsidiaries acquired pursuant to a Permitted Acquisition, or on
tangible property or tangible assets of any Subsidiary of the U.S. Borrower which are in existence at the time that such Subsidiary of the U.S. Borrower is acquired pursuant to a Permitted Acquisition (provided that such Liens (i) are
not incurred in connection with, or in anticipation of, such Permitted Acquisition, (ii) are applicable only to specific tangible property or tangible assets, (iii) are not “blanket” or all asset Liens and (iv) do not attach
to any other property or assets of the U.S. Borrower or any of its Subsidiaries); 
 (j) Liens in existence as of the Closing Date in
connection with the Bowater-Calhoun Arrangement as described in clause(b) of the definition thereof; 
  

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 (k) [Intentionally Omitted]; 
 (l) [Intentionally Omitted]; 
 (m) Liens existing on the Tenth Amendment Effective Date and not otherwise permitted hereunder securing obligations not at any time exceeding in the aggregate $25,000,000. 
 SECTION 10.3 Limitations on Loans, Advances, Investments and Acquisitions. Purchase, own, invest in or otherwise acquire, directly or
indirectly, any Capital Stock, interests in any partnership or joint venture (including, without limitation, the creation or capitalization of any Subsidiary), evidence of Indebtedness or other obligation or security, all or substantially all of the
business or assets of any other Person (or any portion of the business or assets of any other Person that constitutes a line of business, a business unit or a division) or any other investment or interest whatsoever in any other Person, or make or
permit to exist, directly or indirectly, any loans, advances or extensions of credit to, or any investment in cash or by delivery of property in, any Person (collectively, “Investments”) except: 
 (a) Investments: 
 (1)
existing on the Closing Date in Subsidiaries existing on the Closing Date; 
 (2) after the Closing Date in Subsidiaries
formed after the Closing Date so long as the U.S. Borrower, the Borrower and their respective Subsidiaries comply with the applicable provisions of Section 8.10 of this Agreement and Section 8.10 of the U.S. Credit Agreement;

 (3) existing on the Closing Date (other than Investments in Subsidiaries on the Closing Date) and described on Schedule
10.3; 
 (b) subject to Section 10.14, Investments in cash and Cash Equivalents; 
 (c) [Intentionally Omitted]; 
 (d) Hedging Agreements permitted pursuant to Section 10.1; 
 (e) Investments in the form of loans and advances to
employees in the ordinary course of business, which, in the aggregate, do not exceed at any time $2,000,000; 
 (f) (i) Investments in the
form of intercompany Indebtedness permitted pursuant to Section 10.1(g) (other than clause (v) of Section 10.1(g)), but including, without limitation, Investments by the Original U.S. Borrower in the Parent
evidenced by the New U.S. Borrower Notes so long as each of the New U.S. Borrower Notes is pledged as security for the U.S. Obligations and delivered to the U.S. Administrative Agent, for the ratable benefit of the U.S. Secured Parties, in each
case, pursuant to the terms of the U.S. Collateral Agreement), (ii) equity or capital investments made by the U.S. Borrower or any of its Subsidiaries in any U.S. Credit 

  

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Party or any Credit Party (or made in a Wholly-Owned Subsidiary that is not a U.S. Credit Party or a Credit Party and immediately contributed (directly or
indirectly through one or more intermediate Wholly-Owned Subsidiaries) into a U.S. Credit Party or a Credit Party) and (iii) equity or capital investments made by any Subsidiary that is not a U.S. Credit Party or a Credit Party in any other
Subsidiary that is not a U.S. Credit Party or a Credit Party; 
 (g) (i) Investments in the form of intercompany Indebtedness permitted by
clause (v) of Section 10.1(g), together with equity or capital investments made by any U.S. Credit Party or any Credit Party to any Subsidiary which is not a U.S. Credit Party or a Credit Party; provided that the
aggregate amount of such intercompany Indebtedness and equity or capital investments, shall not exceed $35,000,000 outstanding as of any date of determination (which amount shall be calculated as the net balance of such loans, advances and equity or
capital investments as reduced by any repayments or distributions made with respect thereto) and (ii) any loans and advances made by the U.S. Borrower to Bowater Canada Finance Corporation to pay interest on the BCFC Notes; 
 (h) [Intentionally Omitted]; and 
 (i) Investments existing on the Tenth Amendment Effective Date and not otherwise permitted hereunder (including minority investments in joint ventures) in an aggregate amount not to exceed $20,000,000 (which amount shall be calculated as
the net balance of such Investments as reduced by any repayments or distributions made with respect thereto). 
 SECTION 10.4
Limitations on Mergers and Liquidation. Merge, amalgamate, consolidate or enter into any similar combination with any other Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution) except: 
 (a) any Wholly-Owned Subsidiary of the U.S. Borrower may be merged, amalgamated or consolidated with or into: 
 (i) the U.S. Borrower (provided that the continuing or surviving Person shall be the U.S. Borrower); or 
 (ii) any other Wholly-Owned Subsidiary of the U.S. Borrower (provided that the continuing or surviving Person shall (A) be a
U.S. Subsidiary Guarantor in the case of a merger, amalgamation or consolidation involving a U.S. Subsidiary Guarantor, (B) include the Borrower in the case of a merger, amalgamation or consolidation involving the Borrower or (C) subject
to clauses (i) and (ii)(B) above, be a Guarantor in the case of a merger, amalgamation or consolidation involving a Guarantor); 
 provided
further that no U.S. Credit Party may be merged, amalgamated or consolidated with or into a Credit Party (other than the U.S. Borrower) and no Credit Party (other than the U.S. Borrower) may be merged, amalgamated or consolidated with or into a
U.S. Credit Party; 
 (b) any Wholly-Owned Subsidiary of the U.S. Borrower may merge or amalgamate into the Person such Wholly-Owned
Subsidiary was formed to acquire in connection with a Permitted Acquisition; 
  

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 (c) any Wholly-Owned Subsidiary of the U.S. Borrower may merge or amalgamate into any Person pursuant to
an Asset Disposition of all of the assets of such Wholly-Owned Subsidiary permitted pursuant to Section 10.5; and 
 (d) any
Subsidiary of the U.S. Borrower (other than the Borrower) may wind-up, liquidate or dissolve; provided that (i) its assets are transferred to the U.S. Borrower or any Wholly-Owned Subsidiary of the U.S. Borrower and (ii) if such
Subsidiary is (A) a U.S. Subsidiary Guarantor then the transferee shall be a U.S. Credit Party and (B) a Guarantor (other than the U.S. Borrower) then the transferee shall be a Credit Party. 
 SECTION 10.5 Limitations on Asset Dispositions. Make any Asset Disposition (including, without limitation, the sale of any receivables and
leasehold interests and any sale-leaseback or similar transaction) except: 
 (a) the sale of inventory in the ordinary course of business;

 (b) the sale of obsolete, worn-out or surplus assets in the ordinary course of business that are no longer used or usable in the business
of the U.S. Borrower or any of its Subsidiaries; 
 (c) the transfer of assets to the U.S. Borrower, the Borrower or any Wholly-Owned
Subsidiary (provided that, in the case of any such transfer of assets, (i) if the transferee of such assets is a U.S. Credit Party or a Credit Party, such U.S. Credit Party or Credit Party shall not pay more than the fair market value of
such assets (determined as of the date of the applicable transfer) and (ii) if the transferor of such assets is a U.S. Credit Party or a Credit Party, the transferee shall not pay less than the fair market value of such assets (determined as of
the date of the applicable transfer); 
 (d) the U.S. Borrower or any Subsidiary may write-off, discount, sell or otherwise dispose of
defaulted or past due receivables and similar obligations in the ordinary course of business and not as part of an accounts receivable financing transaction; 
 (e) the disposition of any Hedging Agreement; 
 (f) the disposition of cash or Cash Equivalents; 

(g) the sale of timberlands by the U.S. Borrower or its Subsidiaries; 
 (h) the transfer by the Original U.S. Borrower of the Capital Stock of the New U.S. Borrowers to the Parent in connection with the New U.S. Borrower Transactions in exchange for a promissory note or promissory notes,
in form and substance satisfactory to the U.S. Administrative Agent, payable by the Parent to the Original U.S. Borrower (such notes, as amended, restated, supplemented or otherwise modified, the “New U.S. Borrower Notes”);

 (i) [Intentionally Omitted]; and 
 (j) Asset Dispositions of all or any portion of the New U.S. Borrower Fixed Assets, the Canadian Fixed Assets, the Korean Fixed Assets or the Korean Shares; provided that: 
  

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 (i) such Asset Disposition shall be for no less than fair market value; 
 (ii) both before and after giving to such Asset Disposition, no Default or Event of Default shall have occurred and be continuing;

 (iii) the U.S. Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX;

 (iv) the terms of such Asset Disposition shall be reasonably satisfactory to the Administrative Agent and the U.S.
Administrative Agent, each in its sole discretion; and 
 (k) additional Asset Dispositions not otherwise permitted pursuant to this Section
in an aggregate amount not to exceed $250,000,000 in the aggregate during the term of this Agreement (it being understood and agreed that this clause (k) shall not permit the sale of any New U.S. Borrower Fixed Assets). 
 Notwithstanding anything to the contrary contained herein, the Net Cash Proceeds of any Asset Disposition permitted pursuant to this Section 10.5 shall be
applied in accordance with Section 8.2(b), to the extent required by such Section 8.2(b). 
 SECTION 10.6
Limitations on Dividends and Distributions. Declare or pay any dividends upon any of its Capital Stock; purchase, redeem, retire or otherwise acquire, directly or indirectly, any shares of its Capital Stock, or make any distribution of cash,
property or assets among the holders of shares of its Capital Stock, or make any change in its capital structure which such change in its capital structure could reasonably be expected to have a Material Adverse Effect; provided that:

 (a) the U.S. Borrower or any Subsidiary may pay dividends in shares of its own Capital Stock; 
 (b) the U.S. Borrower or any Subsidiary may make cash distributions or equity repurchases pursuant to employee benefit plans or incentive compensation
plans, in each case to the extent such distributions constitute compensation to executives or employees of the U.S. Borrower or of the applicable Subsidiary; 
 (c) any Subsidiary may pay dividends to the holders of its Capital Stock (other than payment of dividends to holders of the Exchangeable Shares); provided that in the case of any dividend paid by a Subsidiary
that is not a Wholly-Owned Subsidiary, such dividend may be paid only if such dividend is paid on a ratable basis to the holders of such Capital Stock in accordance with their respective ownership percentages in such Subsidiary; 
 (d) [Intentionally Omitted]; 
 (e) [Intentionally Omitted]; 
  

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 (f) Bowater Canada, Inc. or Bowater Canadian Holdings Incorporated may repurchase all or a portion of the
Exchangeable Shares solely through an exchange of common stock of the Parent for the Exchangeable Shares being repurchased; 
 (g) the U.S.
Borrower may make dividends and distributions to the Parent to pay: 
 (i) taxes attributable to the consolidated operations
of the U.S. Borrower and its Subsidiaries; 
 (ii) the Parent Overhead Expenses in an aggregate amount per Fiscal Year not to
exceed fifty percent (50%) of the aggregate amount of Parent Overhead Expenses during such Fiscal Year; and 
 (iii) so
long as no Default or Event of Default has occurred and is continuing or would result after giving effect to such dividends or distributions, an additional amount of Parent Overhead Expenses in an aggregate amount not to exceed $10,000,000 per
Fiscal Year; 
 (h) [Intentionally Omitted]; 
 (i) subject to Section 12.1(o)(ix); so long as no Default or Event of Default shall have occurred and be continuing or would be caused thereby, the Borrower may make cash distributions or dividends to the
Parent which shall be invested in a U.S. Credit Party; and 
 (j) subject to Section 10.10 and
Section 12.1(o)(vii)(E), the U.S. Borrower and its Subsidiaries may make cash distributions or dividends to the Parent to allow the Parent to make required payments on Indebtedness incurred by the Parent as permitted pursuant to
Section 12.1(o)(viii); provided that on each date any distribution or dividend is paid and after giving effect thereto: 
 (i) no Default or Event of Default shall have occurred and be continuing; and 
 (ii) the U.S.
Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX and Section 12.1(o)(ix). 
 SECTION 10.7 Limitations on Exchange and Issuance of Capital Stock. Except to the extent included as Indebtedness and incurred in accordance with Section 10.1 hereof, issue, sell or otherwise dispose of any class or
series of Capital Stock that, by its terms or by the terms of any security into which it is convertible or exchangeable, is, or upon the happening of an event or passage of time would be, (a) convertible or exchangeable into Indebtedness unless
such Indebtedness is permitted at the time pursuant to Section 10.1or (b) required to be redeemed or repurchased, including at the option of the holder, in whole or in part, or has, or upon the happening of an event or
passage of time would have, a redemption or similar payment due. 
 SECTION 10.8 Transactions with Affiliates. Directly or
indirectly (a) make any loan or advance to, or purchase or assume any note or other obligation to or from, any of its officers, directors, shareholders or other Affiliates, or to or from any member of the immediate family of 

  

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any of its officers, directors, shareholders or other Affiliates, or subcontract any operations to any of its Affiliates or (b) enter into, or be a
party to, any other transaction not described in clause (a) above with any of its Affiliates other than: 
 (i)
transactions permitted by Section 10.3, Section 10.4, Section 10.6 or Section 10.7 ; 
 (ii) transactions existing on the Closing Date and described on Schedule 10.8; 
 (iii) normal compensation and reimbursement of reasonable expenses of officers and directors; and 
 (iv) other
transactions in the ordinary course of business on terms as favorable as would be obtained by it on a comparable arms-length transaction with an independent, unrelated third party. 
 SECTION 10.9 Certain Accounting Changes; Organizational Documents. 
 (a) Change its Fiscal Year end, or make any change in its accounting treatment and reporting practices except as required by GAAP. 
 (b) Amend, modify or change its articles of incorporation (or corporate charter or other similar organizational documents) or amend, modify or change its
bylaws (or other similar documents) in any manner which materially adversely affects the rights or interests of the Lenders or the U.S. Lenders. 
 SECTION 10.10 Amendments; Payments and Prepayments of Indebtedness. 
 (a) Amend, modify or change any indenture or other
agreement governing the Existing Notes in any respect which would materially adversely affect the rights or interests of the U.S. Administrative Agent, the Administrative Agent, the U.S. Lenders and the Lenders. 
 (b) Amend, modify or change (i) any provision of this Agreement which, under Section 14.2, is subject to the approval of the Required
Lenders without amending, modifying or changing the corresponding provision in the U.S. Credit Agreement or (ii) any provision of the U.S. Credit Agreement which, under Section 13.2 of the U.S. Credit Agreement, is subject to the
approval of the Required Lenders without amending, modifying or changing the corresponding provision in this Agreement. 
 (c) Amend or
modify (or permit the modification or amendment of) any of the terms or provisions of any Subordinated Indebtedness or any Indebtedness incurred pursuant to Section 10.1(m), in each case, in any respect which would materially adversely
affect the rights or interests of the U.S. Administrative Agent, the Administrative Agent, the U.S. Lenders and the Lenders. 
 (d) Cancel,
forgive, make any payment (other than regularly scheduled interest payments) or prepayment on, or redeem or acquire for value (including, without limitation, by 

  

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way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying when due, but excluding payments at the
scheduled maturity thereof) all or any portion of any Subordinated Indebtedness (other than Indebtedness incurred pursuant to Section 10.1(g)(i)), any Indebtedness incurred pursuant to Section 10.1(m), the Existing Notes or
any Indebtedness incurred to refinance the Existing Notes as permitted pursuant to Section 10.1(d), except for: 
 (i) refinancings, refundings, renewals, extensions or exchange of any Subordinated Indebtedness permitted by Section 10.1(h) subject to the satisfaction of each of the conditions to a refinance, refunding, renewal or extension
set forth in Section 10.1(d); 
 (ii) [Intentionally Omitted]; 
 (iii) refinancings, refundings, renewals, extensions or exchange of any Existing Notes permitted by Section 10.1(d); and

 (iv) cash redemptions or repayments of the Existing Notes or any Indebtedness incurred to refinance the Existing Notes as
permitted pursuant to Section 10.1(d); provided that (A) no Default or Event of Default shall have occurred and be continuing at the time of such redemption or repayment or would result from such redemption or repayment and
(B) if at the time of such redemption or repayment (or immediately after giving effect thereto), the Aggregate Credit Exposure exceeds $100,000,000, the Administrative Agent shall have received satisfactory written evidence that: 
 (A) the U.S. Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement on a pro forma basis
after giving effect to such redemption; 
 (B) the principal amount of availability under this Credit Facility and the U.S.
Credit Facility both before and after giving effect to such redemption is equal to or greater than $50,000,000; 
 (C) the
Consolidated Total Senior Secured Indebtedness, both before and immediately after giving effect thereto, is less than or equal to eighty percent (80%) of the net book value of the U.S. Coverage Assets as set forth on the Consolidated balance
sheet of the U.S. Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Section 5.2 or Section 7.1 hereof; and 
 (D) the principal amount of outstanding Extensions of Credit, both before and immediately after giving effect thereto, is less than or
equal to fifty percent (50%) of the net book value of the Coverage Assets as set forth on the Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Section 5.2 or
Section 7.1 hereof. 
  

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 (e) Amend, modify, waive or supplement (or permit the modification, amendment, waiver or supplement of)
any of the terms or provisions of the April 2008 Convertible Indebtedness (including the Purchase Agreement dated March 24, 2008 by and between the Parent and Fairfax (including the exhibits and schedules thereto) and each other material
document, instrument, certificate and agreement executed or delivered in connection therewith), other than the waiver of any of the closing conditions set forth in Section 6 of the Purchase Agreement, in any respect which would adversely affect
the rights or interests of the Administrative Agent, the U.S. Administrative Agent, the Lenders and the U.S. Lenders 
 SECTION 10.11
Restrictive Agreements. 
 (a) Enter into any Indebtedness which: 
 (i) contains any covenants more restrictive than the provisions of Article VIII, Article IX, Article X, or

 (ii) contains any negative pledge on assets or restricts, limits or otherwise encumbers its ability to incur Liens on or
with respect to any of its assets or properties other than the assets or properties securing such Indebtedness (other than (A) the Existing Notes (provided that such provisions may not be amended or modified to be more restrictive),
(B) any Indebtedness incurred in accordance with Section 10.1(d) to refinance the Existing Notes (provided that such provisions may not be more restrictive than those contained in the Existing Notes), (C) the U.S. Credit
Facility (provided that such provisions shall not be amended or modified except as permitted hereunder and thereunder) and (D) any Indebtedness incurred pursuant to Section 10.1(m) (provided that such provisions may
not be more restrictive than those contained in this Agreement). 
 (b) Enter into or permit to exist any agreement which impairs or limits
the ability of any Subsidiary to pay dividends to the U.S. Borrower or to make or repay loans or advances to the U.S. Borrower other than (i) restrictions and conditions imposed by Applicable Law or the Loan Documents, (ii) legally
enforceable restrictions and conditions which are permitted by clause (iii) of Section 6.1(n) and (iii) customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary or its assets
pending such sale; provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted under this Agreement. 
 SECTION 10.12 Nature of Business. Alter in any material respect the character or conduct of the business conducted by the U.S. Borrower and its Subsidiaries as of the Closing Date. 
 SECTION 10.13 Impairment of Security Interests. Take or omit to take any action, which might or would have the result of materially impairing
the security interests in favor of the Administrative Agent with respect to the Collateral or grant to any Person (other than the Administrative Agent for the benefit of the Secured Parties or the U.S. Administrative Agent for the benefit of itself
and the U.S. Secured Parties or the Secured Parties (other than the Additional 

  

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Credit Lenders), as the case may be, pursuant to the Security Documents) any interest whatsoever in the Collateral, except for Permitted Liens and Asset
Dispositions permitted under Section 10.5. 
 SECTION 10.14 Maximum Cash Balances. (a) Permit the aggregate
amount of cash and Cash Equivalents of the U.S. Borrower and its Subsidiaries (other than cash and Cash Equivalents erroneously credited to any deposit, securities or other investment account of the Borrower and its Subsidiaries so long as such
amount is removed from such account within two (2) Business Days after its deposit therein) to exceed (i) with respect to the period from the Eleventh Amendment Effective Date until the Exchange Offer is completed, closed and settled on
terms and conditions satisfactory to the Administrative Agent, the U.S. Administrative Agent and the Required Lenders, $50,000,000 and (ii) with respect to any other period other than the period specified in clause (i) of this
Section 10.14(a), $70,000,000 in each case, as of the end of any Business Day for more than two (2) Business Days and (b) permit the aggregate amount on deposit at any time in all Excluded Accounts to exceed $500,000.

 ARTICLE XI 
 UNCONDITIONAL
U.S. BORROWER GUARANTY 
 SECTION 11.1 Guaranty of Obligations. The U.S. Borrower hereby unconditionally guarantees to the
Administrative Agent for the ratable benefit of the Administrative Agent and the Secured Parties, and their respective successors, endorsees, transferees and assigns, the prompt payment of all Obligations of the Borrower, whether primary or
secondary (whether by way of endorsement or otherwise), whether now existing or hereafter arising, whether or not from time to time reduced or extinguished (except by payment thereof) or hereafter increased or incurred, whether or not recovery may
be or hereafter become barred by the statute of limitations, whether enforceable or unenforceable as against the Borrower, whether or not discharged, stayed or otherwise affected by any Applicable Insolvency Law or proceeding thereunder, whether
created directly with the Administrative Agent or any other Secured Party or acquired by the Administrative Agent or any other Secured Party through assignment, endorsement or otherwise, whether matured or unmatured, whether joint or several, as and
when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments evidencing any such obligations, including all renewals,
extensions or modifications thereof (all Obligations of the Borrower, including all of the foregoing, being hereinafter collectively referred to as the “Bowater Guaranteed Obligations”). 
 SECTION 11.2 Nature of Guaranty. 
 (a) The U.S. Borrower agrees that this U.S. Borrower Guaranty is a continuing, unconditional guaranty of payment and performance and not of collection, and that its obligations under this U.S. Borrower Guaranty shall be primary, absolute
and unconditional, irrespective of, and unaffected by: 
 (i) the genuineness, validity, regularity, enforceability or any
future amendment of, or change in, this Agreement or any other Loan Document or any other agreement, document or instrument to which the U.S. Borrower, the Borrower or any of their respective Subsidiaries or Affiliates is or may become a party;

  

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 (ii) the absence of any action to enforce this U.S. Borrower Guaranty, this Agreement,
any other Loan Document or any Hedging Agreement, or the waiver or consent by the Administrative Agent or any other Secured Party with respect to any of the provisions of this U.S. Borrower Guaranty, this Agreement, any other Loan Document or any
Hedging Agreement; 
 (iii) the existence, value or condition of, or failure to perfect its Lien against, any security for or
other guaranty of the Bowater Guaranteed Obligations or any action, or the absence of any action, by the Administrative Agent or any other Secured Party in respect of such security or guaranty (including, without limitation, the release of any such
security or guaranty); 
 (iv) any structural change in, restructuring of or other similar change of the U.S. Borrower, the
Borrower or any of their respective Subsidiaries; or 
 (v) any other action or circumstances which might otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor; 
 it being agreed by the U.S. Borrower that its obligations under this U.S. Borrower
Guaranty shall not be discharged except as under the terms of Section 11.6 below. 
 (b) The U.S. Borrower represents, warrants
and agrees that the Bowater Guaranteed Obligations and its obligations under this U.S. Borrower Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind (other than the defense of payment) against the
Administrative Agent, the Secured Parties or the Borrower whether now existing or which may arise in the future. 
 (c) The U.S. Borrower
hereby agrees and acknowledges that the Bowater Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this U.S. Borrower
Guaranty, and all dealings between the Borrower and the U.S. Borrower, on the one hand, and the Administrative Agent and any other Secured Party, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance
upon this U.S. Borrower Guaranty. 
 SECTION 11.3 Waivers. To the extent permitted by Applicable Law, the U.S. Borrower expressly
waives the benefit of all provisions of Applicable Law which are or might be in conflict with this U.S. Borrower Guaranty and all of the following rights and defenses (and agrees not to take advantage of or assert any such right or defense):

 (a) any rights it may now or in the future have under any statute, or at law or in equity, or otherwise, to compel the Administrative Agent
or any other Secured Party to proceed 

  

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in respect of the Bowater Guaranteed Obligations against the Borrower or any other Person or against any security for or other guaranty of the payment and
performance of the Bowater Guaranteed Obligations before proceeding against, or as a condition to proceeding against, the U.S. Borrower; 
 (b) any defense based upon the failure of the Administrative Agent or any other Secured Party to commence an action in respect of the Bowater Guaranteed Obligations against the Borrower, the U.S. Borrower, any other guarantor or any other
Person or any security for the payment and performance of the Bowater Guaranteed Obligations; 
 (c) any right to insist upon, plead or in
any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise
affect the performance by the U.S. Borrower of its obligations under, or the enforcement by the Administrative Agent or the other Secured Parties of, this U.S. Borrower Guaranty; 
 (d) any right of diligence, presentment, demand, protest and notice (except as specifically required herein) of whatever kind or nature with respect to
any of the Bowater Guaranteed Obligations and waives, to the fullest extent permitted by Applicable Laws, the benefit of all provisions of Applicable Law which are or might be in conflict with the terms of this U.S. Borrower Guaranty; and

 (e) any and all right to notice of the creation, renewal, extension or accrual of any of the Bowater Guaranteed Obligations and notice of
or proof of reliance by the Administrative Agent or any other Secured Party upon, or acceptance of, this U.S. Borrower Guaranty. 
 The U.S.
Borrower agrees that any notice or directive given at any time to the Administrative Agent or any other Secured Party which is inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the Administrative Agent or
such other Secured Party, and, in addition, may not be pleaded or introduced as evidence in any litigation relating to this U.S. Borrower Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this
U.S. Borrower Guaranty, unless the Administrative Agent and the Required Agreement Lenders have specifically agreed otherwise in writing. The foregoing waivers are of the essence of the transaction contemplated by this Agreement and the other Loan
Documents and, but for this U.S. Borrower Guaranty and such waivers, the Administrative Agent and other Secured Parties would decline to enter into this Agreement and the other Loan Documents. 
 SECTION 11.4 Modification of Loan Documents, Etc. Neither the Administrative Agent nor any other Secured Party shall incur any liability to
the U.S. Borrower as a result of any of the following, and none of the following shall impair or release this U.S. Borrower Guaranty or any of the obligations of the U.S. Borrower under this U.S. Borrower Guaranty: 
 (a) any change or extension of the manner, place or terms of payment of, or renewal or alteration of all or any portion of, the Bowater Guaranteed
Obligations; 
  

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 (b) any action under or in respect of this Agreement or the other Loan Documents in the exercise of any
remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges; 
 (c) any amendment to, or modification of, in any manner whatsoever, the Loan Documents; 
 (d) any extension or waiver of the time for performance by the U.S. Borrower, any other guarantor, the Borrower or any other Person of, or compliance
with, any term, covenant or agreement on its part to be performed or observed under a Loan Document, or waiver of such performance or compliance or consent to a failure of, or departure from, such performance or compliance; 
 (e) the taking and holding of security or collateral for the payment of the Bowater Guaranteed Obligations or the sale, exchange, release, disposal of,
or other dealing with, any property pledged, mortgaged or conveyed, or in which the Administrative Agent or the other Secured Parties have been granted a Lien, to secure any Indebtedness of the U.S. Borrower, any other guarantor or the Borrower to
the Administrative Agent or the other Secured Parties; 
 (f) the release of anyone who may be liable in any manner for the payment of any
amounts owed by the U.S. Borrower, any other guarantor or the Borrower to the Administrative Agent or any other Secured Party; 
 (g) any
modification or termination of the terms of any intercreditor or subordination agreement pursuant to which claims of other creditors of the U.S. Borrower, any other guarantor or the Borrower are subordinated to the claims of the Administrative Agent
or any other Secured Party; or 
 (h) any application of any sums by whomever paid or however realized to any Bowater Guaranteed Obligations
owing by the U.S. Borrower, any other guarantor or the Borrower to the Administrative Agent or any other Secured Party in such manner as the Administrative Agent or any other Secured Party shall determine in its reasonable discretion. 
 SECTION 11.5 Demand by the Administrative Agent. In addition to the terms set forth in this Article XI and in no manner imposing any
limitation on such terms, if all or any portion of the then outstanding Bowater Guaranteed Obligations are declared to be immediately due and payable, then the U.S. Borrower shall, upon demand in writing therefor by the Administrative Agent to the
U.S. Borrower, pay all or such portion of the outstanding Bowater Guaranteed Obligations due hereunder then declared due and payable. 
 SECTION 11.6 Termination; Reinstatement. 
 (a) Subject to clause (c) below, this U.S. Borrower Guaranty
shall remain in full force and effect until all the Bowater Guaranteed Obligations and all the obligations of the U.S. Borrower under this U.S. Borrower Guaranty shall have been paid in full and the Commitments terminated. 
  

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 (b) No payment made by the Borrower, the U.S. Borrower or any other Person received or collected by the
Administrative Agent or any other Secured Party from the Borrower, the U.S. Borrower or any other Person by virtue of any action or proceeding or any setoff or appropriation or application at any time or from time to time in reduction of or in
payment of the Bowater Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the U.S. Borrower hereunder which shall, notwithstanding any such payment (other than any payment made by the U.S. Borrower
in respect of the obligations of the U.S. Borrower or any payment received or collected from the U.S. Borrower in respect of the obligations of the U.S. Borrower), remain liable for the obligations of the U.S. Borrower up to the maximum liability of
the U.S. Borrower hereunder until the Bowater Guaranteed Obligations and all the obligations of the U.S. Borrower shall have been paid in full and the Commitments terminated. 
 (c) The U.S. Borrower agrees that, if any payment made by the Borrower or any other Person applied to the Bowater Guaranteed Obligations is at any time
annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or is repaid in whole or in part pursuant to a good faith settlement of a pending or threatened claim, or the
proceeds of any Collateral are required to be refunded by the Administrative Agent or any other Secured Party to the Borrower, its estate, trustee, receiver or any other Person, including, without limitation, the U.S. Borrower, under any Applicable
Law or equitable cause, then, to the extent of such payment or repayment, the U.S. Borrower’s liability hereunder shall be and remain in full force and effect, as fully as if such payment had never been made, and, if prior thereto, this U.S.
Borrower Guaranty shall have been canceled or surrendered, this U.S. Borrower Guaranty shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the
obligations of the U.S. Borrower in respect of the amount of such payment. 
 SECTION 11.7 No Subrogation. Notwithstanding any
payment or payments by the U.S. Borrower hereunder, or any setoff or application of funds of the U.S. Borrower by the Administrative Agent or any other Secured Party, or the receipt of any amounts by the Administrative Agent or any other Secured
Party with respect to any of the Bowater Guaranteed Obligations, the U.S. Borrower shall not be entitled to be subrogated to any of the rights of the Administrative Agent or any other Secured Party against the Borrower, the other Subsidiary
Guarantors or any other guarantor or against any collateral security held by the Administrative Agent or any other Secured Party for the payment of the Bowater Guaranteed Obligations nor shall the U.S. Borrower seek any reimbursement from the
Borrower, any of the other Subsidiary Guarantors or any of the other guarantors in respect of payments made by the U.S. Borrower in connection with the Bowater Guaranteed Obligations, until all amounts owing to the Administrative Agent and the other
Secured Parties on account of the Bowater Guaranteed Obligations are paid in full and the Commitments are terminated. If any amount shall be paid to the U.S. Borrower on account of such subrogation rights at any time when all of the Bowater
Guaranteed Obligations shall not have been paid in full or the Commitments have not been terminated, such amount shall be held by the U.S. Borrower in trust for the Administrative Agent, segregated from other funds of the U.S. Borrower, and shall,
forthwith upon receipt by the U.S. Borrower, be turned over to the Administrative Agent in the exact form received by the U.S. Borrower (duly endorsed by the U.S. Borrower to the Administrative Agent, if required) to be applied against the Bowater
Guaranteed Obligations, whether matured or unmatured, in such order as set forth in this Agreement. 
  

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 SECTION 11.8 Payments. Payments by the U.S. Borrower shall be made to the Administrative
Agent, to be credited and applied to the Bowater Guaranteed Obligations in accordance with Section 12.4 of this Agreement, in immediately available Dollars or Canadian Dollars, as designated by the Administrative Agent, to an account
designated by the Administrative Agent or at the Administrative Agent’s Office or at any other address that may be specified in writing from time to time by the Administrative Agent. Any and all payments by or on account of any obligation of
the U.S. Borrower under this U.S. Borrower Guaranty shall be made free and clear of and without reduction or withholding for any taxes. 
 SECTION 11.9 Nature of Obligations; Bankruptcy Limitations; Agreement for Contribution (a) Nature of Obligations. All of the U.S. Borrowers shall be jointly and severally liable for the Bowater Guaranteed Obligations,
however incurred. 
 (b) Bankruptcy Limitations. Notwithstanding anything to the contrary contained in this Agreement, it is the
intention of each U.S. Borrower, the Administrative Agent and the Lenders that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with
respect to any U.S. Borrower or its assets, the amount of such U.S. Borrower’s obligations with respect to the Bowater Guaranteed Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or
recovery by operation of Applicable Insolvency Laws after giving effect to Section 11.9(c). To that end, but only in the event and to the extent that after giving effect to Section 11.9(c), such U.S. Borrower’s
obligations with respect to the Bowater Guaranteed Obligations or any payment made pursuant to such Bowater Guaranteed Obligations would, but for the operation of the first sentence of this Section 11.9(b), be subject to avoidance or
recovery in any such proceeding under Applicable Insolvency Laws after giving effect to Section 11.9(c), the amount of such U.S. Borrower’s obligations with respect to the Bowater Guaranteed Obligations shall be limited to the
largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render such U.S. Borrower’s obligations with respect to the Bowater Guaranteed Obligations unenforceable or avoidable or otherwise subject to
recovery under Applicable Insolvency Laws. To the extent any payment actually made pursuant to the Bowater Guaranteed Obligations exceeds the limitation of the first sentence of this Section 11.9(b) and is otherwise subject to avoidance
and recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds such limitation and the Bowater Guaranteed Obligations as limited
by the first sentence of this Section 11.9(b) shall in all events remain in full force and effect and be fully enforceable against such U.S. Borrower. The first sentence of this Section 11.9(b) is intended solely to preserve
the rights of the Administrative Agent and the Lenders hereunder against such U.S. Borrower in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither such U.S. Borrower, any other U.S. Borrower, any Guarantor nor
any other Person shall have any right or claim under such sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding.  
  

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 (c) Agreement for Contribution. The U.S. Borrowers hereby agree among themselves that, if any U.S.
Borrower shall make an Excess Payment (as defined below), such U.S. Borrower shall have a right of contribution from each other U.S. Borrower in an amount equal to such other U.S. Borrower’s Contribution Share (as defined below) of such Excess
Payment. The payment obligations of any U.S. Borrower under this Section 11.9(c) shall be subordinate and subject in right of payment to the Bowater Guaranteed Obligations until such time as the Bowater Guaranteed Obligations have been
paid in full, and none of the U.S. Borrowers shall exercise any right or remedy under this Section 11.9(c) against any other U.S. Borrower until such Bowater Guaranteed Obligations have been paid in full. For purposes of this Section
11.9(c): 
 (A) “Excess Payment” shall mean the amount paid by any U.S. Borrower in excess of its Ratable
Share of any Bowater Guaranteed Obligations; 
 (B) “Ratable Share” shall mean, for any U.S. Borrower in
respect of any payment of Bowater Guaranteed Obligations, the ratio (expressed as a percentage) as of the date of such payment of Bowater Guaranteed Obligations of (A) the amount by which the aggregate present fair salable value of all of the
assets and properties of such U.S. Borrower exceeds the amount of all debts and liabilities of such U.S. Borrower (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such U.S.
Borrower hereunder) to (B) the amount by which the aggregate present fair salable value of all assets and other properties of all of the U.S. Borrowers exceeds the amount of all of the debts and liabilities (including probable contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the U.S. Borrowers hereunder) of the U.S. Borrowers; provided, however, that, for purposes of calculating the Ratable Shares of the U.S. Borrowers
in respect of any payment of the Bowater Guaranteed Obligations, any U.S. Borrower that became a U.S. Borrower subsequent to the date of any such payment shall be deemed to have been a U.S. Borrower on the date of such payment and the financial
information for such U.S. Borrower as of the date such U.S. Borrower became a U.S. Borrower shall be utilized for such U.S. Borrower in connection with such payment; and 
 (C) “Contribution Share” shall mean, for any U.S. Borrower in respect of any Excess Payment made by any other U.S.
Borrower, the ratio (expressed as a percentage) as of the date of such Excess Payment of (A) the amount by which the aggregate present fair salable value of all of the assets and properties of such U.S. Borrower exceeds the amount of all debts
and liabilities of such U.S. Borrower (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such U.S. Borrower hereunder) to (B) the amount by which the aggregate present fair
salable value of all assets and other properties of the U.S. Borrowers other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the U.S. Borrowers) of the U.S. Borrowers other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the U.S. Borrowers in
respect of any Excess Payment, any U.S. Borrower that became a U.S. Borrower subsequent to the date of any such Excess 

  

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Payment shall be deemed to have been a U.S. Borrower on the date of such Excess Payment and the financial information for such U.S. Borrower as of the date
such U.S. Borrower became a U.S. Borrower shall be utilized for such U.S. Borrower in connection with such Excess Payment. 
 Each of the U.S. Borrowers
recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution. No U.S. Borrower shall have any right of subrogation, indemnity or reimbursement under
Applicable Law in respect of any payment of Bowater Guaranteed Obligations (other than the contribution rights set forth in this Section 11.9(c)) against any other U.S. Borrower. 
 For purposes of this Section, the term “U.S. Borrowers” means the collective reference to the Original U.S. Borrower and the New U.S. Borrowers
and “U.S. Borrower” means the Original U.S. Borrower or one of the New U.S. Borrowers, as applicable. 
 ARTICLE XII 
 DEFAULT AND REMEDIES 
 SECTION 12.1 Events of Default. Each of the following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to
any judgment or order of any court or any order, rule or regulation of any Governmental Authority or otherwise: 
 (a) Default in Payment
of Principal of Loans and Reimbursement Obligations. The Borrower or any other Credit Party shall default in any payment of principal of any Loan or Reimbursement Obligation when and as due (whether at maturity, by reason of acceleration or
otherwise). 
 (b) Other Payment Default. The Borrower or any other Credit Party shall default in the payment when and as due (whether
at maturity, by reason of acceleration or otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any other Obligation, and such default shall continue for a period of three (3) or more Business Days. 
 (c) Misrepresentation. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the U.S. Borrower,
the Borrower or any other Credit Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith that is subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in
any respect when made or deemed made or any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the U.S. Borrower, the Borrower or any other Credit Party herein, any other Loan Document, or in any
document delivered in connection herewith or therewith that is not subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any material respect when made or deemed made. 
  

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 (d) Default in Performance of Certain Covenants. The U.S. Borrower, the Borrower or any other
Credit Party shall default in the performance or observance of any covenant or agreement contained in Section 5.4, Section 7.1 (other than Section 7.1(g)), Section 7.2, Section 7.5(e)(i),
Section 8.2(b), Section 8.10(e)(i), Section 8.10(e)(ii), Section 8.10(f), Section 8.10(g) or Article IX or Article X. 
 (e) Default in Performance of Other Covenants and Conditions. The U.S. Borrower, the Borrower or any other Credit Party shall default in the
performance or observance of: 
 (i) Section 7.1(g) of this Agreement and such default shall continue for a period of two
(2) Business Days; and 
 (ii) any other term, covenant, condition or agreement contained in this Agreement (other than
as specifically provided for otherwise in this Section) or any other Loan Document and such default shall continue for a period of thirty (30) days after written notice thereof has been given to the Borrower by the Administrative Agent.

 (f) Hedging Agreement. The U.S. Borrower, the Borrower or any other Credit Party shall default in the performance or observance of
any terms, covenant, condition or agreement (after giving effect to any applicable grace or cure period) under any Hedging Agreement and such default causes the termination of such Hedging Agreement and the Termination Value owed by the U.S.
Borrower, the Borrower or such other Credit Party as a result thereof exceeds $25,000,000. 
 (g) Indebtedness Cross-Default.

 (i) Any “Event of Default” (as defined in the U.S. Credit Agreement) shall occur under the U.S. Credit Agreement.

 (ii) Any default shall occur in the payment of any Indebtedness of the U.S. Borrower or any of its Subsidiaries (other than
the Loans, any Reimbursement Obligation or the U.S. Credit Facility) the aggregate outstanding amount of which Indebtedness is in excess of $25,000,000 beyond the period of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created. 
 (iii) Any default in the observance or performance of any other agreement or condition relating
to any Indebtedness of the U.S. Borrower or any of its Subsidiaries (other than the Loans, any Reimbursement Obligation or the U.S. Credit Facility) the aggregate outstanding amount of which Indebtedness is in excess of $25,000,000 or contained in
any instrument or agreement evidencing, securing or relating thereto or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or
a trustee or agent on behalf of such holder or holders) to cause, with the giving of notice if required, any such Indebtedness to become due prior to its stated maturity (any applicable grace period having expired). 
  

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 (iv) Any payment default or any other event of default or any other similar event,
including any change in control, shall occur under any agreement executed in connection with the April 2008 Convertible Indebtedness. 
 (h)
Change in Control. Any Change in Control shall occur. 
 (i) Voluntary Bankruptcy Proceeding. The U.S. Borrower or any of its
Subsidiaries shall (i) commence a voluntary case under the federal bankruptcy laws (as now or hereafter in effect), (ii) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding up or composition for adjustment of debts, (iii) consent to or fail to contest in a timely and appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws or other laws,
(iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic
or foreign, (v) admit in writing its inability to pay its debts as they become due, (vi) make a general assignment for the benefit of creditors, or (vii) take any corporate action for the purpose of authorizing any of the foregoing.

 (j) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced against the U.S. Borrower or any of its
Subsidiaries in any court of competent jurisdiction seeking (i) relief under the federal bankruptcy laws (as now or hereafter in effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding
up or adjustment of debts, or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for the U.S. Borrower or any of its Subsidiaries or for all or any substantial part of their respective assets, domestic or foreign,
and such case or proceeding shall continue without dismissal or stay for a period of sixty (60) consecutive days, or an order granting the relief requested in such case or proceeding (including, but not limited to, an order for relief under
such federal bankruptcy laws) shall be entered. 
 (k) Failure of Agreements. (i) Any provision of this Agreement or any
provision of any other Loan Document shall for any reason cease to be valid and binding on the Borrower or any other Credit Party party thereto or any such Person shall so state in writing, (ii) any Loan Document shall for any reason cease to
create a valid and perfected first priority Lien on, or security interest in, any of the Collateral securing the Obligations purported to be covered thereby or (iii) any subordination provision in any document or instrument governing any
Subordinated Indebtedness, any subordination provision in any subordination agreement that relates to any Subordinated Indebtedness or any subordination provision in any guaranty by any U.S. Credit Party of any Subordinated Indebtedness shall, in
any case, cease to be in full force and effect, or any Person shall contest in any manner the validity, binding nature or enforceability of any such provision, in each of the foregoing clauses (i), (ii) and (iii), other
than in accordance with the express terms hereof or thereof. 
 (l) Termination Event. The occurrence of any of the following events:
(i) the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates fails to make full payment when due of all amounts which, under the provisions of any Pension Plan or Section 412 of the Code, the U.S. Borrower or
any of its Subsidiaries or any of their ERISA Affiliates is required to pay as contributions thereto, (ii) the U.S. Borrower or any of its Subsidiaries fails to make full 

  

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payment when due of all amounts which, under the provisions of any Canadian Pension Plan or other Applicable Law, the U.S. Borrower or any of its
Subsidiaries is required to pay as contributions thereto, (iii) an accumulated funding deficiency in excess of $25,000,000 occurs or exists, whether or not waived, with respect to any Pension Plan or Canadian Pension Plan, (iv) a
Termination Event, (v) the U.S. Borrower or any of its Subsidiaries or any of their ERISA Affiliates as employers under one or more Multiemployer Plans makes a complete or partial withdrawal from any such Multiemployer Plan and the plan sponsor
of such Multiemployer Plan notifies such withdrawing employer that such employer has incurred a withdrawal liability requiring payments in an amount exceeding $25,000,000 or (vi) the U.S. Borrower or any of its Subsidiaries as employers under
one or more Canadian Multiemployer Plans makes a complete or partial withdrawal from any such Canadian Multiemployer Plan and the plan sponsor of such Canadian Multiemployer Plans notifies such withdrawing employer that such employer has incurred a
withdrawal liability requiring payments in an amount exceeding $25,000,000. 
 (m) Judgment. A judgment or order for the payment of
money which causes the aggregate amount of all such judgments or orders to exceed (i) $10,000,000 in the aggregate (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) or
(ii) $50,000,000 in the aggregate (regardless of insurance) shall be entered against the U.S. Borrower or any of its Subsidiaries by any court and such judgment or order shall continue without having been paid and satisfied, discharged, vacated
or stayed for a period of thirty (30) days after the entry thereof. 
 (n) Environmental. Any one or more Environmental Claims
shall have been asserted against the U.S. Borrower or any of its Subsidiaries; the U.S. Borrower or any of its Subsidiaries would be reasonable likely to incur liability as a result thereof; and such liability would be reasonably likely,
individually or in the aggregate, to have a Material Adverse Effect. 
 (o) Activities of Parent. The Parent shall engage in any
business, operations or activities other than: 
 (i) (A) holding all of the Capital Stock of the Original U.S. Borrower, each
New U.S. Borrower, the Donohue Corp., a Delaware corporation (or an intermediate holding company that owns the Capital Stock of the Donahue Corp.) and Abitibi-Consolidated Inc. or any of its subsidiaries, (B) holding certain preferred Capital
Stock of Bowater Canadian Holdings Incorporated, a company organized under the laws of Nova Scotia, so long as promptly upon receipt thereof, the Parent either (1) distributes such Capital Stock to the Original U.S. Borrower,
(2) distributes such Capital Stock to another U.S. Credit Party or (3) pledges such Capital Stock as collateral support for the U.S. Obligations in accordance with the U.S. Collateral Agreement, (C) the employment of management and
(D) activities reasonably complimentary and related to the foregoing (including, without limitation, investments in the U.S. Borrower); 
 (ii) guaranteeing the U.S. Obligations in favor of the U.S. Administrative Agent, for the ratable benefit of the U.S. Secured Parties, pursuant to the U.S. Parent Guaranty Agreement; 
  

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 (iii) [Intentionally Omitted]; 
 (iv) granting a security interest in its assets and properties (other than (A) the Capital Stock of the U.S. Borrower or (B) in
connection with the Indebtedness permitted pursuant to the following clause (viii)); provided that (x) the U.S. Administrative Agent is given a Lien on such assets and properties that is prior to such other Lien or
(y) to the extent that a Lien is granted in the stock of Abitibi-Consolidated Inc., then the U.S. Administrative Agent shall be granted a Lien in the stock of the Original U.S. Borrower; 
 (v) granting a security interest in the Capital Stock of the U.S. Borrower in favor of the U.S. Administrative Agent, for the ratable
benefit of the U.S. Secured Parties, to secure the U.S. Obligations; 
 (vi) engaging in non-revenue generating activities
reasonably related to restructuring of the Subsidiaries of the Parent; provided, that in the case of any restructuring involving the Credit Parties or the U.S. Credit Parties, the Administrative Agent and the U.S. Administrative Agent shall
have received (A) an organizational chart of the Parent and its Subsidiaries after giving effect thereto and (B) a final summary of the steps involved in any such restructuring; 
 (vii) guaranteeing obligations of Subsidiaries of the Parent or of the Abitibi Entities to the extent that such obligations are unsecured,
relate to indemnification obligations with respect to asset sales or trade obligations incurred in the ordinary course of business and do not constitute Indebtedness of such Subsidiary or of such Abitibi Entity; and 
 (viii) to the extent not otherwise permitted hereunder, incurring unsecured Indebtedness; provided, that: 
 (A) the Administrative Agent and the U.S. Administrative Agent shall have received reasonably satisfactory written evidence that the U.S.
Borrower and its Subsidiaries would be in compliance with the covenants set forth in Article IX and Section 12.1(o)(ix) on a pro forma basis after giving effect to such Indebtedness; 
 (B) no Default or Event of Default shall have occurred and be continuing or would be caused by the issuance of such Indebtedness;

 (C) no portion of such Indebtedness of the Parent may be recourse to any Credit Party or any U.S. Credit Party (except to
the extent permitted pursuant to Section 10.1(d) or (f)(ii)) (it being understood and agreed that no Credit Party or U.S. Credit Party (except to the extent permitted pursuant to Section 10.1(d) or (f)(ii) shall
have any obligation whatsoever to repay such Indebtedness or any other obligation related thereto); 
 (D) no such Indebtedness shall have a maturity date that is earlier than the ninety-first (91st) day after the
Maturity Date; 
  

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 (E) the Parent may not cancel, forgive or make any payment (other than regularly
scheduled interest payments) or prepayments on, or redeem or acquire for value (including, without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying when due, but
excluding payments at the scheduled maturity thereof) any such Indebtedness; provided, that the Parent may pay a cash settlement of any convertible Indebtedness so long as on the date of any such payment and after giving effect thereto:

 (I) no Default or Event of Default shall have occurred and be continuing; 
 (II) the U.S. Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX; 
 (III) the Aggregate Credit Exposure shall not exceed $100,000,000; 
 (IV) the pro forma Consolidated Total Leverage Ratio shall not exceed 4.50 to 1.00; and 
 (F)
except to the extent such Indebtedness is guaranteed by a U.S. Credit Party pursuant to Section 10.1(d), the proceeds of such Indebtedness are used solely for working capital and general corporate purposes of, or to repay outstanding
Indebtedness of, the Parent and its Subsidiaries or any Abitibi Entity; 
 (ix) holding a cash balance in the deposit,
securities and other investment accounts of the Parent as of the end of any Business Day in excess of $25,000,000, unless the amount of such balance that is in excess of $25,000,000 is as promptly as possible, but in no event later than one
(1) Business Day, invested in the U.S. Borrower; provided, that notwithstanding this Section 12.1(o)(ix)), the Parent may retain the proceeds of the April 2008 Convertible Indebtedness until no later than April 15, 2008;
and 
 (x) to the extent not otherwise permitted hereunder, incurring Indebtedness payable to the Original U.S. Borrower
pursuant to the New U.S. Borrower Notes. 
 (p) Permitted Secured Indebtedness. The Permitted Secured Indebtedness is less than or
equal to C$58,000,000. 
 SECTION 12.2 Remedies. Except as otherwise expressly provided in any other Loan Document, upon the
occurrence of an Event of Default, with the consent of the Required Agreement Lenders, the Administrative Agent may, or upon the request of the Required Agreement Lenders, the Administrative Agent shall, by notice to the Borrower: 
 (a) Acceleration; Termination of Facilities. Terminate the Commitment and declare the principal of and interest on the Loans and the Reimbursement
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outstanding, and all other amounts owed to the Lenders and to the Administrative Agent under this Agreement or any of the other Loan Documents (including,
without limitation, all L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented or shall be entitled to present the documents required thereunder) and all other Obligations (other than Hedging
Obligations and Obligations owing by the Credit Parties (other than the U.S. Borrower) under any Cash Management Arrangement), to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or the other Loan Documents to the contrary notwithstanding, and terminate the Credit Facility and any right of the Borrower to
request borrowings or Letters of Credit thereunder; provided, that upon the occurrence of an Event of Default specified in Section 12.1(i) or (j), the Credit Facility shall be automatically terminated and all Obligations
(other than Hedging Obligations and Obligations owing by Credit Parties (other than the U.S. Borrower) under any Cash Management Arrangement) shall automatically become due and payable without presentment, demand, protest or other notice of any
kind, all of which are expressly waived by each Credit Party, anything in this Agreement or in any other Loan Document to the contrary notwithstanding. 
 (b) Letters of Credit. With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to the preceding paragraph, the Borrower
shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held in such cash collateral account shall be applied by
the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay the other
Obligations on a pro rata basis. After all such Letters of Credit shall have expired or been fully drawn upon, the Reimbursement Obligation shall have been satisfied and all other Obligations shall have been paid in full, the balance,
if any, in such cash collateral account shall be returned to the Borrower. 
 (c) Rights of Collection. Exercise on behalf of the
Lenders all of its other rights and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all of the Borrower’s Obligations. 
 SECTION 12.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the rights and remedies of the Administrative Agent and the
Lenders set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise. No delay or failure to take action on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default. No course of dealing between the Borrower, the U.S. Borrower, the Administrative Agent and the Lenders or their 

  

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respective agents or employees shall be effective to change, modify or discharge any provision of this Agreement or any of the other Loan Documents or to
constitute a waiver of any Event of Default. 
 SECTION 12.4 Crediting of Payments and Proceeds. (a) In the event that the
Borrower shall fail to pay any of the Obligations when due or the Obligations have been accelerated pursuant to Section 12.2, all payments received by the Lenders upon the Obligations and all net proceeds from the enforcement of the
Obligations shall be applied: 
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and
other amounts, including attorney fees, payable to the Administrative Agent in its capacity as such and each Issuing Lender in its capacity as such (ratably among the Administrative Agent and each Issuing Lender in proportion to the respective
amounts described in this clause First payable to them); 
 Second, to payment of that portion of the Obligations constituting
fees, indemnities, expenses and other amounts (other than principal and interest) payable to the Lenders (other than the Additional Credit Lenders), including attorney fees (ratably among such Lenders in proportion to the respective amounts
described in this clause Second payable to them); 
 Third, to payment of that portion of the Obligations constituting accrued
and unpaid interest on the Loans (including any interest on Special Agent Advances), but excluding any accrued and unpaid interest on the Additional Credit Loans or any other Obligations owed to any Additional Credit Lender) and Reimbursement
Obligations (including any accrued and unpaid interest thereon) (ratably among such Lenders in proportion to the respective amounts described in this clause Third payable to them); 
 Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Special Agent Advances (ratably among the applicable
Lenders in proportion to the respective amounts described in this clause Fourth held by them); 
 Fifth, to payment of that
portion of the Obligations constituting unpaid principal of the Loans (other than the Additional Credit Loans and the Special Agent Advances) and Reimbursement Obligations (ratably among the applicable Lenders in proportion to the respective amounts
described in this clause Fifth held by them); 
 Sixth, to the Administrative Agent for the account of each Issuing Lender, to
cash collateralize any L/C Obligations then outstanding (ratably among the Issuing Lenders in proportion to the respective amounts described in this clause Sixth payable to them); 
 Seventh, to the payment of that portion of the Obligations constituting Hedging Obligations (including any termination payments and any accrued
and unpaid interest thereon) and Obligations owing by the Credit Parties under any Cash Management Arrangement (ratably among the Secured Parties providing the Hedging Agreements giving rise to such Hedging Obligations and the Cash Management
Arrangements giving rise to such Obligations thereunder in proportion to the respective amounts described in this clause Seventh payable to them); 
  

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 Eighth, to the payment of the Obligations constituting unpaid principal, interest, fees, expenses
and other amounts due in respect of the EDC Credit Facility advanced by the EDC Credit Lender; 
 Ninth, to the payment of the
Obligations constituting principal, interest, fees, expenses and other amounts due in respect of the Fairfax Credit Facility advanced by the Fairfax Credit Lender; and 
 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Applicable Law. 
 SECTION 12.5 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 3.3, Section 4.3 and
Section 14.3) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to
pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under
Section 3.3, Section 4.3 and Section 14.3. 
 Nothing contained herein shall be deemed to authorize the Administrative
Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding. 
 SECTION 12.6 Judgment Currency. The obligation of the Borrower to
make payments of the principal of and interest on the Notes and the obligation of any such Person to make payments of any other amounts payable hereunder or pursuant to any other Loan 

  

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Document in the currency specified for such payment shall not be discharged or satisfied by any tender, or any recovery pursuant to any judgment, which is
expressed in or converted into any other currency, except to the extent that such tender or recovery shall result in the actual receipt by each of the Administrative Agent and Lenders of the full amount of the particular Permitted Currency expressed
to be payable pursuant to the applicable Loan Document. The Administrative Agent shall, using all amounts obtained or received from the Borrower pursuant to any such tender or recovery in payment of principal of and interest on the Obligations,
promptly purchase the applicable currency at the most favorable spot exchange rate determined by the Administrative Agent to be available to it. The obligation of the Borrower to make payments in the applicable currency shall be enforceable as an
alternative or additional cause of action solely for the purpose of recovering in the applicable currency the amount, if any, by which such actual receipt shall fall short of the full amount of the currency expressed to be payable pursuant to the
applicable Loan Document. 
 ARTICLE XIII 
 THE ADMINISTRATIVE AGENT 
 SECTION 13.1 Appointment and Authority. 
 (a) Each of the Lenders and each of the Issuing Lenders hereby irrevocably appoints The Bank of Nova Scotia to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lenders (and, as applicable, the Documentation Agent), and neither the U.S.
Borrower, the Borrower nor any of their respective Subsidiaries shall have rights as a third party beneficiary of any of such provisions. 
 (b) Without prejudice to the foregoing, each of the Lenders hereby irrevocably designates and appoints the Administrative Agent as the person holding the power of attorney (fondé de pouvoir) of the Lenders as contemplated
under Article 2692 of the CCQ, to enter into, to take and to hold on their behalf, and for their benefit, any deed of hypothec (“Deed of Hypothec”) to be executed by any of the Credit Parties granting a Lien pursuant to the
Applicable Law of the Province of Québec and to exercise such powers and duties which are conferred thereupon under such deed. Each of the Lenders hereby additionally irrevocably designates and appoints the Administrative Agent as agent,
custodian and depository for and on behalf of the Lenders (i) to hold and to be the sole registered holder of any debenture (“Debenture”) issued under the Deed of Hypothec, the whole notwithstanding Section 32 of
the Act respecting the Special Powers of Legal Persons (Québec) or any other Applicable Law, and (ii) to enter into, to take and to hold on their behalf, and for their benefit, a debenture pledge agreement
(“Pledge”) to be executed by such Credit Party pursuant to the Applicable Law of the Province of Québec and creating a Lien on the Debenture as security for the payment and performance of, inter alia, the Obligations.
In this respect, (A) the Administrative Agent as agent, custodian and depository for and on behalf of the Lenders, shall keep a record indicating 

  

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the names and addresses of, and the pro rata portion of the obligations and indebtedness secured by the Pledge owing to each of the Lenders for
and on behalf of whom the Debenture is so held from time to time, and (B) each of the Lenders will be entitled to the benefits of any property or assets charged under the Deed of Hypothec and the Pledge and will participate in the proceeds of
realization of any such property or assets. The Administrative Agent, in such aforesaid capacities shall (x) have the sole and exclusive right and authority to exercise, except as may be otherwise specifically restricted by the terms hereof,
all rights and remedies given to the Administrative Agent with respect to the property or assets charged under the Deed of Hypothec and Pledge, any other Applicable Law or otherwise, and (y) benefit from and be subject to all provisions hereof
with respect to the Administrative Agent mutatis mutandis, including, without limitation, all such provisions with respect to the liability or responsibility to and indemnification by the Lenders and/or the Credit Parties. 
 SECTION 13.2 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with the U.S. Borrower, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 SECTION 13.3 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations except those expressly
set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 
 (a) shall not
be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 
 (b) shall not have
any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in
writing by the Required Lenders or Required Agreement Lenders, as applicable (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent
shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law; and 
 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the U.S. Borrower, the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
  

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 The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders or Required Agreement Lenders, as applicable (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Section 12.2 and Section 14.2) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final nonappealable judgment. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the U.S. Borrower, the Borrower, a Lender or an Issuing Lender in accordance with
Section 14.1. In the event that the Administrative Agent receives such a notice, it shall promptly give notice thereof to the Lenders and the Issuing Lenders. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan
Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
 SECTION 13.4 Reliance by the Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability
for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have
been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the applicable Issuing
Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or such Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender prior to the
making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the U.S. Borrower or the Borrower), independent accountants and other experts selected by it, and shall not
be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
 SECTION 13.5 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed
by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of the Administrative 

  

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Agent and any such sub-agent and the Consultants, and shall apply to their respective activities in connection with the syndication of the credit facilities
provided for herein as well as activities as Administrative Agent. 
 SECTION 13.6 Resignation of Administrative Agent.

 (a) The Administrative Agent may at any time give notice of its resignation to the Lenders, each Issuing Lender and the Borrower. Upon
receipt of any such notice of resignation, the Required Agreement Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in Canada, or an Affiliate of any such bank with an
office in Canada. If no such successor shall have been so appointed by the Required Agreement Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the Issuing Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and
the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (i) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of any Lender or any Issuing Lender under any of the Loan Documents, the retiring Administrative
Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (ii) all payments, communications and determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and each Issuing Lender directly, until such time as the Required Agreement Lenders appoint a successor Administrative Agent as provided for above in this paragraph. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this paragraph). The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 14.3 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any
of them while the retiring Administrative Agent was acting as Administrative Agent. 
 (b) Any resignation by The Bank of Nova Scotia as
Administrative Agent pursuant to this Section shall also constitute its resignation as an Issuing Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (i) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender, (ii) the retiring Issuing Lender shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents, and
(iii) the successor Issuing Lender shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring Issuing Lender to effectively
assume the obligations of the retiring Issuing Lender with respect to such Letters of Credit. 
  

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 SECTION 13.7 Non-Reliance on Administrative Agent and Other Lenders. (a) Each Lender and each
Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties or the Consultants and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and each Issuing Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties or the Consultants and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder. 
 SECTION 13.8 No Other Duties, etc;
Documentation Agent. 
 (a) Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents (other
than as noted in subsection (b) below), co-agents, book manager, lead manager, arranger, lead arranger or co-arranger listed on the cover page or signature pages hereof shall have any powers, duties or responsibilities under this
Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Lender hereunder. 
 (b) (i) Each of the Lenders and each of the Issuing Lenders hereby irrevocably appoints Wachovia Bank, National Association as the Documentation Agent hereunder and under the other Loan Documents and authorizes the
Documentation Agent to take actions with respect to the documentation of the Credit Facility, including the preparation and execution of any definitive documentation in connection with the Credit Agreement and the other Loan Documents, together with
such actions and powers as are reasonably incidental thereto; provided that, anything herein to the contrary notwithstanding, the Documentation Agent shall have no other powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Lender hereunder. 
 (ii) The Documentation Agent and it Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the U.S. Borrower, the Borrower or
any Subsidiary or other Affiliate thereof as if such Person were not the Documentation Agent hereunder and without any duty to account therefor to the Lenders. 
 (iii) The Documentation Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by the Documentation Agent. The Documentation Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related
Parties. 
  

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 SECTION 13.9 Collateral and Guaranty Matters. (a) The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion, 
 (a) to release any Lien on any Collateral granted to or held by the
Administrative Agent, for the ratable benefit of the Secured Parties, under any Loan Document (i) upon repayment of the outstanding principal of and all accrued interest on the Loans and Reimbursement Obligations, payment of all outstanding
fees and expenses hereunder, the termination of the Commitment and the expiration or termination of all Letters of Credit, (ii) that is sold or to be sold or otherwise transferred as part of or in connection with any sale or transfer permitted
hereunder or under any other Loan Document, or (iii) subject to Section 14.2, if approved, authorized or ratified in writing by the Required Agreement Lenders; 
 (b) to subordinate or release any Lien on any Collateral granted to or held by the Administrative Agent under any Loan Document to the holder of any
Permitted Lien; and 
 (c) to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement, the Collateral
Agreement and any other Loan Documents if such Person ceases to be a Subsidiary as a result of a transaction(s) permitted hereunder. 
 Upon request by the
Administrative Agent at any time, the Required Agreement Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Subsidiary
Guarantor from its obligations under the Subsidiary Guaranty Agreement pursuant to this Section. 
 SECTION 13.10 Swingline
Lender. 
 (a) Resignation of Swingline Lender. 
 (i) Notwithstanding anything to the contrary contained herein, the Swingline Lender may, upon thirty (30) days’ notice to the
Borrower, resign as the Swingline Lender. In the event of any such resignation, the Borrower shall be entitled to appoint from among the Lenders a successor Swingline Lender hereunder; provided that no failure by the Borrower to appoint any
such successor shall affect the resignation of the Swingline Lender; provided further that (i) no Lender shall be required to accept such appointment as successor Swingline Lender; (ii) any successor Swingline Lender shall be
approved by the Administrative Agent (such approval not to be unreasonably withheld or delayed); and (iii) until a Lender shall have notified the Administrative Agent and the current Swingline Lender in writing that it has agreed to act as a
successor Swingline Lender, the current Swingline Lender shall continue as Swingline Lender hereunder. Upon the acceptance of any appointment as Swingline Lender hereunder by a successor, such successor Swingline Lender shall thereupon succeed to
and become vested with all rights, powers, privileges and duties of the replaced Swingline Lender, and the replaced Swingline Lender shall be discharged from its duties and obligations in its capacity as Swingline Lender without any other or further
act or deed on the part of such replaced Swingline Lender or any other Lender. 
  

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 (ii) Any resigning Swingline Lender shall retain all the rights of the Swingline Lender
provided for hereunder with respect to Swingline Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Revolving Credit Lenders to make Revolving Credit Loans or fund risk participations in
outstanding Swingline Loans pursuant to Section 2.2(b). 
 (b) Knowledge of Defaults. For purposes of
Section 2.2(b), the Swingline Lender shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Swingline Lender by the U.S. Borrower, the Borrower, the Administrative Agent, a
Lender or an Issuing Lender in accordance with Section 14.1. In the event that the Swingline Lender receives such a notice, it shall promptly give notice thereof to the Administrative Agent, the Lenders and the Issuing Lenders.

 SECTION 13.11 Additional Loans. The Administrative Agent and the Swingline Lender shall not make any Loans and the Issuing
Lender shall not issue any Letter of Credit to the Borrower on behalf of the Lenders intentionally and with actual knowledge that such Loan or Letter of Credit would cause the aggregate amount of the total outstanding Loans (other than Additional
Credit Loans) and Letters of Credit to exceed the Borrowing Base, except, that, from and after the Conversion Date, the Administrative Agent may make additional Revolving Credit Loans or the Issuing Lender may provide such additional Letters of
Credit on behalf of Lenders, intentionally and with actual knowledge that such Revolving Credit Loans or Letters of Credit will cause the total outstanding Loans (other than the Additional Credit Loans) and Letters of Credit to exceed the Borrowing
Base, as the Administrative Agent may deem necessary or advisable in its discretion; provided, that: (a) the sum of (i) the total principal amount of the additional Revolving Credit Loans or additional Letters of Credit to the
Borrower that the Administrative Agent may make or provide after obtaining such actual knowledge that the aggregate principal amount of the Loans (other than the Additional Credit Loans) and the Letters of Credit equals or exceeds the Borrowing Base
plus (ii) the amount of Special Agent Advances made pursuant to Section 13.12(b) outstanding as of any date of determination shall not exceed an amount equal to ten percent (10%) of the aggregate Commitments (other than the
Additional Credit Commitment) as of such date without the prior written consent of the Required Agreement Lenders and shall not cause (A) the total principal amount of the Loans (other than the Additional Credit Loans) and Letters of Credit to
exceed the aggregate Commitments (other than the Additional Credit Commitment) as of such date or (B) the outstanding Letters of Credit to exceed the L/C Commitment and (b) no such additional Revolving Credit Loan or Letter of Credit shall
be outstanding more than ninety (90) days after the date such additional Revolving Credit Loan or Letter of Credit is made or issued (as the case may be), except as the Required Agreement Lenders may otherwise agree. Each Lender shall be
obligated to pay to the Administrative Agent the amount of its Commitment Percentage of any such additional Revolving Credit Loans or Letters of Credit in accordance with the applicable Sections of this Agreement. 
 SECTION 13.12 Special Agent Advances. The Administrative Agent may, at its option, from time to time after the Conversion Date, at any time
upon the occurrence and continuation of an Event of Default or upon any other failure of a condition precedent to the Loans and Letters of Credit hereunder, make such disbursements and advances (collectively, the 

  

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“Special Agent Advances”) which the Administrative Agent, in its sole discretion, (a) deems necessary or desirable either to preserve or
protect the Collateral or any portion thereof or (b) to enhance the likelihood or maximize the amount of repayment by the Credit Parties of the Loans and other Obligations; provided, that (i) the aggregate principal amount of the Special
Agent Advances pursuant to this clause (b) outstanding as of any date of determination plus the then outstanding principal amount of the additional Revolving Credit Loans and Letters of Credit that the Administrative Agent and/or the
Issuing Lender may make or provide as set forth in Section 13.11 shall not exceed an aggregate amount equal to ten percent (10%) of the aggregate Commitments (other than the Additional Credit Commitment) as of such date without the
prior written consent of the Required Agreement Lenders and (ii) the aggregate principal amount of the Special Agent Advances pursuant to this clause (b) outstanding as of any date of determination plus the then outstanding
principal amount of the Loans (other than the Additional Credit Loans) and Letters of Credit, shall not exceed the aggregate Commitments (other than the Additional Credit Commitment) as of such date, except at the Administrative Agent’s option,
provided, that, to the extent that the aggregate principal amount of Special Agent Advances plus the then outstanding principal amount of the Loans (other than the Additional Credit Loans) and Letters of Credit exceed the aggregate Commitments
(other than the Additional Credit Commitment), the Special Agent Advances that are in excess of the aggregate Commitments (other than the Additional Credit Commitment) shall be for the sole account and risk of the Administrative Agent and
notwithstanding anything to the contrary set forth below, no Lender shall have any obligation to provide its share of such Special Agent Advances in excess of such aggregate Commitments (other than the Additional Credit Commitment), or (c) to
pay any other amount chargeable to any Credit Party pursuant to the terms of this Agreement or any of the other Loan Documents consisting of costs, fees and expenses and payments to the Issuing Lender in respect of any Obligations with respect to
Letters of Credit. The Special Agent Advances shall be repayable on demand and together with all interest thereon shall constitute Obligations secured by the Collateral. Special Agent Advances shall not constitute Loans but shall otherwise
constitute Obligations hereunder. Interest on Special Agent Advances shall be payable at the interest rate (including the Applicable Margin) then applicable to Base Rate Loans and shall be payable on demand. Without limitation of its obligations
pursuant to Section 4.7, each Revolving Credit Lender agrees that it shall make available to the Administrative Agent, upon the Administrative Agent’s demand, in immediately available funds, the amount equal to such Lender’s
Revolving Credit Commitment Percentage of each such Special Agent Advance. If such funds are not made available to the Administrative Agent by such Lender, such Lender shall be deemed a Defaulting Lender and the Administrative Agent shall be
entitled to recover such funds, on demand from such Lender together with interest thereon for each day from the date such payment was due until the date such amount is paid to the Administrative Agent at the Federal Funds Rate for each day during
such period and if such amounts are not paid within three (3) days of the Administrative Agent’s demand, at the highest interest rate provided for in Section 4.1 applicable to Base Rate Loans. 
  

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 ARTICLE XIV 
 MISCELLANEOUS 
 SECTION 14.1 Notices. 
 (a) Method of Communication. Except as otherwise provided in this Agreement, all notices and
communications hereunder shall be in writing (for purposes hereof, the term “writing” shall include information in electronic format such as electronic mail and internet web pages), or by telephone subsequently confirmed in writing. Any
notice shall be effective if delivered by hand delivery or sent via electronic mail, posting on an internet web page, telecopy, recognized overnight courier service or certified mail, return receipt requested, and shall be presumed to be received by
a party hereto (i) on the date of delivery if delivered by hand or sent by electronic mail, posting on an internet web page, telecopy, (ii) on the next Business Day if sent by recognized overnight courier service and (iii) on the
third (3rd) Business Day following the date sent by certified mail, return receipt requested. A telephonic notice to the Administrative Agent
as understood by the Administrative Agent will be deemed to be the controlling and proper notice in the event of a discrepancy with or failure to receive a confirming written notice. 
 (b) Addresses for Notices. Notices to any party shall be sent to it at the following addresses, or any other address as to which all the other
parties are notified in writing. 
  

			
	If to the U.S. Borrower	 	
	or the Borrower:	 	Bowater Incorporated
		 	1155 Metcalfe Street, Suite 800
		 	Montreal, Québec
		 	CANADA H3B 5H2
		 	Attention: Treasurer
		 	Telephone No.: (514) 394-2375
		 	Telecopy No.: (514) 394-2267
		
	With copies to:	 	Hazen H. Dempster
		 	Troutman Sanders LLP
		 	Suite 5200
		 	600 Peachtree Street, N.E.
		 	Atlanta, Georgia 30308-2216
		 	Telephone No.: (404) 885-3126
		 	Telecopy No.: (404) 962-6544
		
	If to The Bank of	 	
	Nova Scotia as	 	
	Administrative Agent:	 	The Bank of Nova Scotia
		 	40 King Street West
		 	Scotia Plaza, 62nd Floor
		 	Toronto, Ontario M5W 2X6
		 	Attention: Corporate Banking Loan Syndication
		 	Telephone No.:
		 	Telecopy No.: (416) 866-3329
		
	If to any Lender:	 	To the address set forth on the Register

  

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 (c) Administrative Agent’s Office. The Administrative Agent hereby designates its office
located at the address set forth above, or any subsequent office which shall have been specified for such purpose by written notice to the Borrower and Lenders, as the Administrative Agent’s Office referred to herein, to which payments due are
to be made and at which Loans will be disbursed and Letters of Credit requested. 
 SECTION 14.2 Amendments, Waivers and
Consents. Except as set forth below or as specifically provided in any Loan Document, any term, covenant, agreement or condition of this Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any consent given
by the Lenders, if, but only if, in the case of an amendment, waiver or consent for which a substantially similar corresponding amendment, waiver or consent with regard to the U.S. Credit Agreement will be made effective thereunder
contemporaneously, such amendment, waiver or consent is in writing signed by the Required Lenders (or by the Administrative Agent with the consent of the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment,
signed by the Borrower; and in the case of any other amendment, waiver or consent specifically impacting only this Agreement and the other Loan Documents, such amendment, waiver or consent is in writing signed by the Required Agreement Lenders (or
by the Administrative Agent with the consent of the Required Agreement Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the Borrower; provided, that no amendment, waiver or consent shall:

 (a) waive any condition set forth in Section 5.2 without the written consent of each Lender directly affected thereby;

 (b) (i) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 12.2)
or the amount of Loans of any Lender without the written consent of such Lender or (ii) increase the aggregate Commitments of all Lenders to an aggregate principal amount in excess of $165,000,000 without the consent of the U.S. Required
Agreement Lenders; 
 (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees
or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, that only the consent of the Required Lenders shall be necessary
in order to waive (in whole or in part) any prepayment required pursuant to Section 8.2(b). 
  

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 (d) reduce the principal of, or the rate of interest specified herein on, any Loan or Reimbursement
Obligation, or (subject to clause (iv) of the second proviso to this Section) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;
provided that only the consent of the Required Agreement Lenders shall be necessary to waive any obligation of the Borrower to pay interest at the rate set forth in Section 4.1(c) during the continuance of an Event of Default;

 (e) change Section 4.4 or Section 12.4 in a manner that would alter the pro rata sharing of payments
required thereby without the written consent of each Lender directly affected thereby; 
 (f) change any provision of this Section or the
definitions of “Required Lenders” or “Required Agreement Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of each Lender and each U.S. Lender directly affected thereby; 
 (g) increase the percentage specified in the definition of “Asset Coverage Amount”; reduce or eliminate any of the Indebtedness specified in part (b) of the definition of “Extensions of Credit” in determining the
Borrowing Limit; or add additional categories or types of assets to the definition of “Coverage Assets”, in each case without the written consent of each Lender directly affected thereby; 
 (h) increase any of the percentages specified in the definition of “Borrowing Base”; amend the definitions of “Eligible
Accounts” or “Eligible Inventory” in a manner which would result in more availability under the Borrowing Base; or add additional categories or types of assets to the definition of “Borrowing Base”, in each case without the
written consent of each Lender directly affected thereby; 
 (i) (i) release the U.S. Borrower from the U.S. Borrower Guaranty, or
(ii) release all of the Subsidiary Guarantors or release Subsidiary Guarantors comprising substantially all of the credit support for the Obligations, in either case, from the Subsidiary Guaranty Agreement (other than as authorized in
Section 13.9), in each case without the written consent of each Lender; 
 (j) release all or substantially all of the
Collateral or release any Security Document (other than as authorized in Section 13.9 or as otherwise specifically permitted or contemplated in this Agreement or the applicable Security Document) without the written consent of each
Lender; or 
 (k) change Article XI of this Agreement without the written consent of each U.S. Lender; 
 (a) (l) add as Collateral any assets of any Person that is not organized under the laws of Canada or any province thereof without the written consent of
the U.S. Administrative Agent and the U.S. Required Agreement Lenders (it being understood that under the terms of the U.S. Credit Agreement a vote of the Administrative Agent and the Required Agreement Lenders shall be required to add as Collateral
for the U.S. Credit Facility any assets of any Person that is not organized under the laws of the United States or any state thereof); or 
  

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 (m) join as a Credit Party any Person that is not organized under the laws of Canada or any province
thereof without the written consent of the U.S. Administrative Agent and the U.S. Required Agreement Lenders (it being understood that under the terms of the U.S. Credit Agreement a vote of the Administrative Agent and the Required Agreement Lenders
shall be required to join as a U.S. Credit Party any Person that is not organized under the laws of the United States or any state thereof); 
 provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the applicable Issuing Lender in addition to the Lenders required above, affect the rights or duties of such Issuing Lender
under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender in addition to the Lenders
required above, affect the rights or duties of the Swingline Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect
the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the
consent of such Lender. 
 SECTION 14.3 Expenses; Indemnity. 
 (a) Costs and Expenses. The Borrower and the other Credit Parties, jointly and severally, shall pay (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent, the Documentation Agent, the Additional Credit Lenders and their respective Affiliates (including the reasonable fees, charges and disbursements of (A) counsel for each of the Administrative Agent, the
Documentation Agent and the Additional Credit Lenders and (B) the Consultants), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by each Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent,
the Documentation Agent, any Lender or any Issuing Lender (including the fees, charges and disbursements of (A) any counsel for the Administrative Agent, the Documentation Agent, any Lender or any Issuing Lender and (B) the Consultants),
in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit or (C) with respect to the preservation and protection of the Collateral and
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heretofore and from time to time hereafter incurred by the Administrative Agent and the Consultants during the course of periodic field audits, examinations
and appraisals with respect to the Collateral and the operations of the Credit Parties and their Subsidiaries, plus a per diem charge at the Administrative Agent’s then standard rate for the Administrative Agent’s examiners in the field
and office. 
 (b) Indemnification. The Borrower and the other Credit Parties shall indemnify the Administrative Agent (and any
sub-agent thereof), the Documentation Agent (and any sub-agent thereof), each Lender and each Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold
each Indemnitee harmless from, any and all losses, claims (including, without limitation, any Environmental Claims or civil penalties or fines assessed by OFAC), damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Credit Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the
transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing Lender to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by the U.S.
Borrower or any of its Subsidiaries, or any Environmental Claim related in any way to the U.S. Borrower or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Credit Party, and regardless of whether any Indemnitee is a party thereto, or (v) any claim (including, without limitation,
any Environmental Claims or civil penalties or fines assessed by OFAC), investigation, litigation or other proceeding (whether or not the Administrative Agent, the Documentation Agent or any Lender is a party thereto) and the prosecution and defense
thereof, arising out of or in any way connected with the Loans, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby, including without
limitation, reasonable attorneys and consultant’s fees, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory, or sole negligence of the Indemnitee, provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any other Credit Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any
other Loan Document, if the Borrower or such Credit Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under clause
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the Administrative Agent (or any sub-agent thereof), the Documentation Agent (or any sub-agent thereof), any Issuing Lender or any Related Party of any of
the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Documentation Agent (or any sub-agent thereof), such Issuing Lender or such Related Party, as the case may be, such Lender’s pro rata
share, based on Commitments, of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or
any such sub-agent), the Documentation Agent (or any sub-agent thereof) or such Issuing Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the
Documentation Agent (or any sub-agent thereof) or such Issuing Lender in connection with such capacity. The obligations of the Lenders under this clause (c) are subject to the provisions of Section 4.7. 
 (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by Applicable Law, the Borrower and each other Credit Party shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in
clause (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 
 (e) Payments. All
amounts due under this Section shall be payable promptly after demand therefor. 
 SECTION 14.4 Right of Setoff. If an Event of
Default shall have occurred and be continuing, each Lender, each Issuing Lender, the Swingline Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law,
to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, such Issuing Lender, the
Swingline Lender or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any
other Loan Document to such Lender, such Issuing Lender or the Swingline Lender, irrespective of whether or not such Lender, such Issuing Lender or the Swingline Lender shall have made any demand under this Agreement or any other Loan Document and
although such obligations of the Borrower or such Credit Party may be contingent or unmatured or are owed to a branch or office of such Lender, such Issuing Lender or the Swingline Lender different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, each Issuing Lender, the Swingline Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender,
such Issuing Lender, the Swingline Lender or their respective Affiliates may have. Each Lender, each Issuing Lender and the Swingline Lender 
  

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agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such
notice shall not affect the validity of such setoff and application. 
 SECTION 14.5 Governing Law. 
 (a) Governing Law. This Agreement and the other Loan Documents, unless expressly set forth therein, shall be governed by, and construed in
accordance with, the law of the State of New York, without reference to the conflicts of law principles thereof insofar as such principles would defer to the substantive laws of some other jurisdiction. 
 (b) Submission to Jurisdiction. The Borrower and each other Credit Party irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the courts of (i) the State of New York sitting in New York County and of the United States District Court for the Southern District of New York and (iii) the Province of Ontario, and in each case any
appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or Ontario court or, to the fullest extent permitted by Applicable Law, in such federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall
affect any right that the Administrative Agent, any Lender or any Issuing Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or any other Credit Party or its
properties in the courts of any jurisdiction. 
 (c) Waiver of Venue. The Borrower and each other Credit Party irrevocably and
unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in
any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court. 
 (d) Service of Process. Each party hereto irrevocably consents to service of process in the manner
provided for notices in Section 14.1. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law. 
 SECTION 14.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO 
  

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REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 
 SECTION 14.7 Reversal of Payments. To the extent the U.S. Borrower or the Borrower makes a payment or payments to the
Administrative Agent for the ratable benefit of the Lenders or the Administrative Agent receives any payment or proceeds of the Collateral which payments or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds repaid, the Obligations or
part thereof intended to be satisfied shall be revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative Agent. 
 SECTION 14.8 Additional Intercreditor Provision. 
 (a) For greater certainty, the Fairfax Credit Loans are junior and subordinate, and the payment thereof, whether in whole or in part, and whether as to principal, interest, fees, proceeds of Collateral or otherwise,
and whether at or prior to maturity or upon acceleration of any maturity, is postponed to the prior payment and satisfaction in full of the EDC Credit Loans. So long as any monies are owing to the EDC Credit Lender under the EDC Credit Loans and the
EDC Credit Commitment has not been terminated, no claim for payment shall be made by, and no payment shall be made to, the Fairfax Credit Lender with respect to the Fairfax Credit Loans prior to payment and satisfaction in full of the EDC Credit
Loans and the termination of the EDC Credit Facility. In all circumstances, including, without limitation, in the event of demand for payment by the EDC Credit Lender hereunder or in the event of a Default or Event of Default or in the event of
bankruptcy, insolvency, dissolution, winding-up liquidation or reorganization of the Borrower or any Guarantor or upon an assignment for the benefit of creditors or otherwise or any receivership or trusteeship proceedings of the Borrower or any
Guarantor: (i) the EDC Credit Loans shall be paid and satisfied in full before the Fairfax Credit Lender is entitled to receive any payment relating to the Fairfax Credit Loans and any payment to which any holder of Fairfax Credit Loans would
be entitled but for the present subordination provisions shall be paid directly to the EDC Credit Lender; (ii) in the event that any payment or distribution of assets of the Borrower or any Guarantor shall be received by the Fairfax Credit
Lender in violation of this Section, such payment or distribution shall be held by the Fairfax Credit Lender in trust for the benefit of the EDC Credit Lender and, upon demand, shall be paid over to the EDC Credit Lender; and (iii) in the event
that any monies including dividends shall at any time be payable in respect of the Fairfax Credit Loans in any bankruptcy proceedings relating to the Borrower or any Guarantor at a time when the EDC Credit Loans have not been paid in full, the
Fairfax Credit Lender expressly agrees that the EDC Credit Lender shall be entitled to receive the same and to apply the same to the monies owing to it. The Fairfax Credit Lender irrevocably authorizes and directs the EDC Credit Lender and its
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bankruptcy, receiver or assignee for the benefit of creditors of the Borrower, whether in voluntary or involuntary liquidation, dissolution or
reorganization, on its behalf to take such action as may be necessary or appropriate to effectuate the subordination and postponement provisions and other rights granted to the EDC Credit Lender in this Section relating to the Fairfax Credit Loans
(including without limitation, in the case of the EDC Credit Lender and its successors and assigns, to file a proof of claim and to vote upon matters with respect to which the Fairfax Credit Lender may be able to vote in connection with any
bankruptcy proceedings relating to the Borrower in each case as relates solely to the Fairfax Credit Loans) and irrevocably appoints the EDC Credit Lender and its successors and assigns, acting severally, or any such trustee, receiver or assignee,
his attorney or attorneys-in-fact for such purposes with full powers of substitution and re-substitution. The subordination effected hereby and the rights of the EDC Credit Lender in respect of the EDC Credit Loans are limited to the 18,300,000
Dollars of EDC Credit Loans as contemplated hereby that shall be repaid on the EDC Credit Termination Date but otherwise shall not be affected by: (A) any amendment of or addition or supplement to this Agreement or any other instrument or
agreement relating to the EDC Credit Loans or securing or guaranteeing any of the EDC Credit Loans; (B) any exercise or non-exercise of any right, power or remedy under or in respect of the EDC Credit Loans or any instrument or agreement
relating thereto, or securing or guaranteeing any of same, or (C) any waiver, consent, release, indulgence, extension, renewal, modification, delay or other action, inaction or omission, in respect of any EDC Credit Loans or any instrument or
agreement relating thereto, or securing or guaranteeing any of same, all whether or not the Fairfax Credit Lender shall have had notice or knowledge of any of the foregoing; 
 (b) The Fairfax Credit Lender hereby forever subordinates and postpones its existing and future right, title and interest under the Security Documents,
to the existing and future interests of the EDC Credit Lender under the Security Documents. The Fairfax Credit Lender agrees that it will not claim priority as against the EDC Credit Lender as it relates to this subordination or as it relates to the
EDC Credit Lender’s right to take possession of, deal with, sell, transfer or otherwise dispose of the Collateral; 
 (c) The Fairfax
Credit Lender shall duly execute and deliver, or cause to be executed and delivered at the sole cost of the EDC Credit Lender, such other assurances, instruments or documentation necessary or desirable to enable the EDC Credit Lender to obtain the
full benefit of this Section; and 
 (d) For greater certainty, if the Exchange Offer is completed, closed and settled and EDC elects not to
be repaid, or fails to take action to be repaid as contemplated herein, this Section will no longer be in effect and the Fairfax Credit Loans may be repaid as otherwise contemplated herein. 
 SECTION 14.9 Injunctive Relief; Punitive Damages. 
 (a) The U.S. Borrower and the Borrower recognize that, in the event the U.S. Borrower or the Borrower fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, any remedy of
law may prove to be inadequate relief to the Lenders. Therefore, the U.S. Borrower and the Borrower agree that the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case without the
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 (b) The Administrative Agent, the Lenders and the U.S. Borrower and the Borrower (on behalf of themselves
and the other Credit Parties) hereby agree that no such Person shall have a remedy of punitive or exemplary damages against any other party to a Loan Document and each such Person hereby waives any right or claim to punitive or exemplary damages
that they may now have or may arise in the future in connection with any Dispute, whether such Dispute is resolved through arbitration or judicially. 
 SECTION 14.10 Accounting Matters. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the U.S. Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the U.S. Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) the U.S. Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after
giving effect to such change in GAAP. 
 SECTION 14.11 Successors and Assigns; Participations. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of
participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that 
 (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time
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an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless (A) such
assignment is made to an existing Lender, to an Affiliate thereof, or to an Approved Fund, in which case no minimum amount shall apply, or (B) each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is
continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed); 
 (ii) each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned; 
 (iii)(A) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment in respect of the Credit Facility if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender, (B) the consent of each Issuing Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding) and (C) the consent of the
Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Credit Facility other than the EDC Credit Facility or the Fairfax Credit Facility; and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500 for each assignment, and the Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 4.8, Section 4.9, Section 4.10,
Section 4.11 and Section 14.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section. 
  

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 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Montreal, Québec or Toronto, Ontario, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender
may at any time, without the consent of, or notice to, the Borrower and the Administrative Agent, sell participations to any Person (other than a natural person or the U.S. Borrower, the Borrower or any of the their respective Affiliates or
Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver or modification described in Section 14.2 that directly affects such Participant. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Section 4.8, Section 4.9, Section 4.10 and Section 4.11 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 14.4 as though it were a Lender, provided such Participant agrees to be subject to Section 4.6 as though it were a Lender.

 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under
Section 4.10 and Section 4.11 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with
the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 4.11 unless (i) the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 4.11(e) as though it were a Lender and (ii) the applicable Lender shall provide the Borrower with satisfactory evidence that the
participation is in registered form and shall permit the Borrower to review such register as reasonably needed for the Borrower to comply with its obligations under Applicable Laws. 
  

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 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 SECTION 14.12 Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information
and instructed to keep such Information confidential), (b) to the extent requested by, or required to be disclosed to, any rating agency, or regulatory or similar authority (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies
under this Agreement or under any other Loan Document (or any Hedging Agreement with a Lender or the Administrative Agent) or any action or proceeding relating to this Agreement or any other Loan Document (or any Hedging Agreement with a Lender or
the Administrative Agent) or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any purchasing Lender, proposed purchasing Lender,
Participant or proposed Participant, or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the U.S. Borrower, the Borrower and their respective obligations, (g) with the consent
of the U.S. Borrower or the Borrower, (h) to Gold Sheets and other similar bank trade publications, such information to consist of deal terms and other information customarily found in such publications, or (i) to the extent such
Information (x) becomes publicly available other than as a result of a breach by such Person of this Section or (y) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the U.S.
Borrower or the Borrower or (j) to governmental regulatory authorities in connection with any regulatory examination of the Administrative Agent or any Lender or in accordance with the Administrative Agent’s or any Lender’s regulatory
compliance policy if the Administrative Agent or such Lender deems necessary for the mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries or affiliates. For purposes of this Section,
“Information” means all information received from any Credit Party relating to any Credit Party or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by any Credit Party; provided that, in the case of information received from a Credit Party after the date hereof, such information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information. 
  

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 SECTION 14.13 Performance of Duties. Each of the Credit Party’s obligations under this
Agreement and each of the other Loan Documents shall be performed by such Credit Party at its sole cost and expense. 
 SECTION 14.14
All Powers Coupled with Interest. All powers of attorney and other authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the Administrative Agent or any Lender pursuant to any provisions of this
Agreement or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of the Obligations remain unpaid or unsatisfied, any of the Commitment remains in effect or the Credit Facility has not
been terminated. 
 SECTION 14.15 Survival of Indemnities. Notwithstanding any termination of this Agreement, the indemnities to
which the Administrative Agent and the Lenders are entitled under the provisions of this Article XIV and any other provision of this Agreement and the other Loan Documents shall continue in full force and effect and shall protect the
Administrative Agent and the Lenders against events arising after such termination as well as before. 
 SECTION 14.16 Titles and
Captions. Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement. 
 SECTION 14.17 Severability of Provisions. Any provision of this Agreement or any other Loan Document which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction. 
 SECTION 14.18 Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken
together shall constitute one and the same agreement. 
 SECTION 14.19 Integration. This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the provisions of
this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof. 
 SECTION 14.20 Term of Agreement. This Agreement shall remain in effect from the Closing Date through and
including the date upon which all Obligations arising hereunder or 
  

 181 

 
under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full and the Commitment has been terminated. No termination
of this Agreement shall affect the rights and obligations of the parties hereto arising prior to such termination or in respect of any provision of this Agreement which survives such termination. 
 SECTION 14.21 No Fiduciary Duty. The Administrative Agent, the Documentation Agent, each Lender and their Affiliates (collectively, solely for
purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of U.S. Borrower or the Borrower. The U.S. Borrower and the Borrower agree that nothing in the Loan Documents or otherwise will be deemed to
create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between the Lenders, the U.S. Borrower, the Borrower, their stockholders or Affiliates. The U.S. Borrower and the Borrower acknowledge and agree that
(i) the transactions contemplated by the Loan Documents are arm’s-length commercial transactions between the Lenders, on the one hand, and the U.S. Borrower or the Borrower, on the other, (ii) in connection with this Agreement and the
Loan Documents, each of the Lenders is acting solely as a principal and not the agent or fiduciary of the U.S Borrower, the Borrower, their management, stockholders, creditors or any other Person, (iii) no Lender has assumed an advisory or
fiduciary responsibility under this Agreement or the Loan Documents in favor of the U.S Borrower or the Borrower (irrespective of whether any Lender or any of its Affiliates has advised or is currently advising the U.S Borrower or the Borrower on
other matters) and (iv) U.S. Borrower and Borrower have consulted their own legal and financial advisors to the extent it deemed appropriate. U.S. Borrower and Borrower further acknowledge and agree that they are responsible for making their
own independent judgment with respect to this Agreement and the Loan Documents. Borrower and U.S. Borrower agree that they will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to
U.S. Borrower or Borrower, in connection with this Agreement and the Loan Documents. 
 SECTION 14.22 Advice of Counsel, No Strict
Construction. Each of the parties represents to each other party hereto that it has discussed this Agreement with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement. 
 SECTION 14.23 USA Patriot Act. The Administrative Agent and each Lender hereby notifies
the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the
Borrower and each Guarantor, which information includes the name and address of each Borrower and each Guarantor and other information that will allow such Lender to identify such Borrower or Guarantor in accordance with the Act. 
  

 182 

 SECTION 14.24 Inconsistencies with Other Documents; Independent Effect of Covenants.

 (a) In the event there is a conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall
control; provided that any provision of the Security Documents which imposes additional burdens on the U.S. Borrower or its Subsidiaries or further restricts the rights of the U.S. Borrower or its Subsidiaries or gives the Administrative
Agent or Lenders additional rights shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full force and effect. 
 (b) The U.S. Borrower and the Borrower expressly acknowledge and agree that each covenant contained in Article VIII, Article IX or Article X, hereof shall be given independent effect. Accordingly,
the U.S. Borrower and the Borrower shall not engage in any transaction or other act otherwise permitted under any covenant contained in Article VIII, Article IX or Article X if, before or after giving effect to such transaction
or act, the U.S. Borrower or the Borrower shall or would be in breach of any other covenant contained in Article VIII, Article IX or Article X. 
 SECTION 14.25 No Novation. The execution and delivery of this Agreement shall not constitute a novation of any indebtedness or other obligations owing to the Lenders or the Administrative Agent based on
facts or events occurring or existing prior to the execution and delivery of this Agreement. 
  

 183 

 Exhibit C 
 Extensions of Credit and U.S. Extensions of Credit 
 CANADIAN EXTENSIONS OF CREDIT: 
  

				
	 Canadian Dollar Denominated Letters of Credit
	  	C$	33,358,173.00
	 Canadian Dollar Denominated Revolving Credit Loans
	  	C$	61,110,910.83
		
	 Total Canadian Dollar Denominated Canadian Extensions of Credit:
	  	C$	94,469,083.83

  

				
	 US Dollar Denominated Letters of Credit
	  	US$	586,532.00
	 US Dollar Revolving Credit Loans
	  	US$	29,500,000
	 US Dollar Denominated Swingline Commitment
	  	US$	10,000,000
		
	 Total US Dollar Denominated Canadian Extensions of Credit :
	  	US$	40,086,532

 U.S. EXTENSIONS OF CREDIT: 
  

				
	 Revolving Credit Loans
	  	US$	238,750,707.00
	 Swingline Loans
	  	US$	0.00
	 Letters of Credit
	  	US$	70,260,410.00
		
	 Total U.S. Extensions of Credit:
	  	US$	309,011,117.00

 [Eleventh Amendment to Canadian Credit Agreement – Bowater]Form of Registrant's CLIRNs Linked to S&P 500

Table of Contents

 Exhibit 4.1 
 BANK OF AMERICA CORPORATION 
 Medium-Term Senior Note, Series L 
 REGISTERED GLOBAL SENIOR NOTE 
 This
Note is a global security within the meaning of the Indenture dated as of January 1, 1995, as supplemented from time to time (the “Indenture”), between Bank of America Corporation and The Bank of New York Mellon Trust Company, N.A.,
as successor trustee (the “Trustee”) under the Indenture and is registered in the name of Cede & Co., as the nominee of The Depository Trust Company (the “Depository”). This Note is not exchangeable for definitive or
other Notes registered in the name of a person other than the Depository or its nominee, except in the limited circumstances described in the Indenture or in this Note, and no transfer of this Note (other than a transfer as a whole by the Depository
to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor depository or a nominee of such successor depository) may be registered
except in the limited circumstances described in the Indenture. 
 Unless this Note is presented by an authorized representative of The
Depository Trust Company (the “Depository”) (55 Water Street, New York, New York) to the Issuer or its agent for registration of transfer, exchange or payment, and this Note is registered in the name of CEDE & CO., or such other
name as requested by an authorized representative of The Depository Trust Company, and unless any payment is made to CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, since the
registered owner hereof, CEDE & CO., has an interest herein. 
 THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY AND IS NOT AN OBLIGATION OF OR GUARANTEED BY BANK OF AMERICA, N.A. OR ANY OTHER BANKING OR NONBANKING AFFILIATE OF BANK OF AMERICA CORPORATION. THIS DEBT IS NOT
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION’S TEMPORARY LIQUIDITY GUARANTEE PROGRAM. 
 THIS NOTE IS A DIRECT,
UNCONDITIONAL, UNSECURED AND UNSUBORDINATED GENERAL OBLIGATION OF BANK OF AMERICA CORPORATION. THE OBLIGATIONS EVIDENCED BY THIS NOTE RANK PARI PASSU WITH ALL OTHER UNSECURED AND UNSUBORDINATED OBLIGATIONS OF BANK OF AMERICA CORPORATION, EXCEPT
OBLIGATIONS THAT ARE SUBJECT TO ANY PRIORITIES OR PREFERENCES UNDER APPLICABLE LAW. 
 THIS NOTE IS SOLD IN MINIMUM DENOMINATIONS AS
NOTED HEREIN AND IN THE FINAL TERMS OR INDEXED PAYMENT RIDER ATTACHED HERETO AND CANNOT BE EXCHANGED FOR NOTES IN SMALLER DENOMINATIONS. EACH OWNER OF A BENEFICIAL INTEREST IN THIS NOTE IS REQUIRED TO HOLD A BENEFICIAL INTEREST OF A PRINCIPAL AMOUNT
OF THIS NOTE EQUAL TO THE MINIMUM AUTHORIZED DENOMINATION AT ALL TIMES. 

Table of Contents

			
	 No. R-
	  	Registered
	 CUSIP No.: 060900180
	  	
		  	Principal Amount: $26,400,000
		  	Total Units: 2,640,000

 BANK OF AMERICA CORPORATION 
 Medium-Term Senior Note, Series L 
 CAPPED LEVERAGED INDEX RETURN NOTES®, LINKED TO THE S&P 500® INDEX, DUE AUGUST 27, 2010 
 REGISTERED GLOBAL SENIOR NOTE 
  

									
	 ORIGINAL ISSUE DATE: March 5, 2009
	  	 ̈	    	This Note is an Extendible Note at the Holder’s Option. [See attached Rider]
			
	STATED MATURITY DATE: August 27, 2010	  	 ̈	    	This Note is an Extendible Note at the Issuer’s Option. [See attached Rider]
			
	CURRENCY:	  	 ̈	    	This Note is an Amortizing Note. [See payment schedule in attached Final Terms]
		    	x	    	U.S. Dollars	  		    
					
		    	 ̈	    	Other (specify):	  		    	
				
	 ̈	    	FIXED RATE NOTE	  		    	
				
	 ̈	    	FLOATING RATE NOTE	  	x	    	See attached Final Term Sheet dated February 26, 2009 and Product Supplement No. LIRN-1 dated January 22, 2009 (collectively, the “Final Terms”)
				
	x	    	INDEXED NOTE	  	 ̈	    	See attached Principal Repayment Amount Rider
					
		    		    		  	  ̈
	    	See attached Interest Payment Amounts or Supplemental Payment Amount Rider
				
	 ̈	    	FLOATING RATE/FIXED RATE NOTE	  		    	
		
	RECORD DATES: Not Applicable	  	CALCULATION AGENT: Merrill Lynch, Pierce, Fenner & Smith Incorporated

 BANK OF AMERICA CORPORATION, a Delaware corporation (herein called the “Issuer,” which
term includes any successor corporation), for value received, hereby promises to pay to CEDE & CO., as nominee for The Depository Trust Company, or its registered assigns, the principal amount specified above and any other amounts
calculated in accordance with the provisions set forth in the Final Terms attached hereto, as adjusted in accordance with Schedule 1 hereto, on the Stated Maturity Date specified above (except to the extent redeemed or repaid prior to the Stated
Maturity Date). “Maturity,” when used herein, means the date on which the principal of this Note or an installment of principal becomes due and payable in full in accordance with the terms of this Note and of the Indenture, whether at the
Stated Maturity Date or by declaration of acceleration, call for redemption, prepayment at the holder’s option or otherwise. 
  

 2 

Table of Contents

 The principal or any other amounts so payable, and punctually paid or duly provided for, at Maturity will
be paid to the person in whose name this Note (or one or more predecessor Notes evidencing all or a portion of the same debt as this Note) is registered at the time of payment. Any such principal or other amounts not punctually paid or duly provided
for shall be payable as provided in this Note and in the Indenture. 
 Payment of principal of, and premium, if any, and other amounts, if
any, on, this Note due at Maturity will be made in immediately available funds upon presentation and surrender of this Note at the office of the Trustee maintained for that purpose, and in accordance with the procedures of the depository or clearing
system noted hereon; provided, that this Note is presented to the Trustee in time for the Trustee to make such payment in accordance with its normal procedures. 
 The Issuer will pay any administrative costs imposed by any bank in making payments in immediately available funds, but any tax, assessment or governmental charge imposed upon payments hereunder, including, without
limitation, any withholding tax, will be borne by the holder hereof. 
 By its
acceptance of this Note, the holder of this Note agrees, in the absence of an administrative determination or judicial ruling to the contrary, to treat this Note for all tax purposes as a single financial contract with respect to the S&P
500® Index that (1) requires the holder of this Note to pay to the Issuer on the Original Issue Date an amount equal to the purchase price of this Note and (2) entitles the holder
of this Note to receive at the Stated Maturity Date an amount in cash based upon the performance of the S&P 500® Index. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof and in the Final Terms attached hereto, which shall have the
same effect as though fully set forth at this place. In the event of any conflict between the provisions contained herein or on the reverse hereof and the provisions contained in the Final Terms attached hereto, the latter shall control. References
herein to “this Note,” “hereof,” “herein” and comparable terms shall include the Final Terms attached hereto. 
 Unless the certificate of authentication hereon has been executed by the Trustee (or other authentication agent duly appointed in accordance with the Indenture), by manual signature of an authorized signatory, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 3 

Table of Contents

 IN WITNESS WHEREOF, Bank of America Corporation has caused this instrument to be duly executed on its
behalf, by manual or facsimile signature. 
  

									
	Dated: March 5, 2009	 		 	BANK OF AMERICA CORPORATION
				
	[CORPORATE SEAL]	 		 		 	
		 		 		 	By:	 	  

	ATTEST:	 		 	Name:	 	
		 		 	Title:	 	
					
	By:	 	  
	 		 		 	
	Title:	 	Assistant Secretary	 		 		 	

  

 4 

Table of Contents

 CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

							
	Dated: March 5, 2009	 		 	THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.,
as Trustee
				
		 		 	By:	 	 
		 		 		 	Authorized Signatory
		 		 		 	

  

 5 

Table of Contents

 [ATTACH FINAL TERMS] 
  

 6 

Table of Contents

 

 
 

 
 The LIRNs are being offered by Bank of America Corporation (“BAC”). The LIRNs will have the terms specified in
this term sheet as supplemented by the documents indicated herein under “Additional Terms” (together the “Note Prospectus”). Investing in the LIRNs involves a number of risks. See “Risk
Factors” on page TS-5 of this term sheet and beginning on page S-10 of product supplement LIRN-1. 
 Unless otherwise indicated or unless
the context requires otherwise, all references in this document to “we,” “us,” “our,” or similar references are to BAC. References to “MLPF&S” are to Merrill Lynch, Pierce, Fenner & Smith
Incorporated. 
 In connection with this offering, each of MLPF&S, its broker-dealer affiliate First Republic Securities Company, LLC (“First
Republic”), and Banc of America Investment Services, Inc. (“BAI”) is acting as our selling agent. Each of MLPF&S and First Republic is acting in its capacity as principal, and BAI will use its best efforts to sell the LIRNs.

 None of the Securities and Exchange Commission (the “SEC”), any state securities commission, or any other regulatory body has approved or
disapproved of these securities or determined if this Note Prospectus is truthful or complete. Any representation to the contrary is a criminal offense. 
  

					
	 	  	Per Unit	  	Total
			
	 Public offering price (1)
	  	$10.00	  	$26,400,000
	 Selling discount (1)
	  	    $.20	  	     $528,000
	 Proceeds, before expenses, to Bank of America Corporation
	  	  $9.80	  	$25,872,000

  

	 	(1)	The public offering price and selling discount for any purchase of 500,000 units or more in a single transaction by an individual investor will be $9.95 per unit and $.15 per
unit, respectively. 

 “Leveraged Index Return Notes®”
and “LIRNs®” are registered service marks of our subsidiary, Merrill Lynch & Co., Inc. 
 “Standard & Poor’s®”, “Standard & Poor’s 500®”, “S&P 500®” and “S&P®” are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use in this offering by our subsidiary, MLPF&S. The LIRNs are not sponsored, endorsed, sold, or promoted by Standard & Poor’s® and
Standard & Poor’s® makes no representation regarding the advisability of investing in the LIRNs. 
  

			
	            Merrill Lynch & Co.	 	Banc of America Investment Services, Inc.

 February 26,
2009                     

Table of Contents

 

 
  

 Summary 
 The Capped Leveraged Index Return Notes® Linked to the S&P 500® Index, due August 27, 2010 (the “LIRNs”) are our senior unsecured debt securities and are not guaranteed or insured by the Federal Deposit Insurance Corporation or secured by collateral.
The LIRNs will rank equally with all of our other unsecured and unsubordinated debt, and any payments due on the LIRNs, including any repayment of principal, will be subject to the credit risk of BAC. The LIRNs provide a leveraged return for
investors, subject to a cap, if the level of the S&P 500® Index (the “Index”) increases moderately from the Starting Value of the Index, determined on February 26, 2009, the
pricing date, to the Ending Value of the Index, determined during the Maturity Valuation Period. Investors must be willing to forgo interest payments on the LIRNs and be willing to accept a return that is capped or a repayment that is less, and
potentially significantly less, than the Original Offering Price of the LIRNs. 
 Capitalized terms used but not defined in this term sheet have the meanings set forth
in the product supplement LIRN-1. 
  

					
	Terms of the LIRNs	  		  	Determining the Redemption
Amount for the LIRNs
	

	  		  	  
 On the maturity date, you will receive a cash payment per unit (the “Redemption
Amount”) calculated as follows:
  
 

  

 TS-2 
 

 

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 Hypothetical Payout Profile 
  

			
	

	  	 This graph reflects the hypothetical returns on the LIRNs, including the Participation Rate of 200% and the Capped Value of $13.312 (a 33.12% return).
The green line reflects the hypothetical returns on the LIRNs, while the dotted grey line reflects the return of a hypothetical direct investment in the stocks included in the Index, excluding dividends.
  
 This graph has been prepared for purposes of illustration only. Your actual return will depend on the actual
Ending Value and the term of your investment.

 Hypothetical Redemption Amounts 
 Examples 
 Set forth below are four examples of Redemption Amount calculations (rounded to three decimal places) payable at maturity,
reflecting the Participation Rate of 200%, the Downside Leverage Factor of 100%, the Starting Value of 752.83, the Threshold Value of 677.55, and the Capped Value of $13.312 (per unit). 
 Example 1—The hypothetical Ending Value is 65% of the Starting Value and is less than the Threshold Value: 
  

			
	 Starting Value:
	 	   752.83
	 Hypothetical Ending Value:
	 	   489.34
	 Threshold Value:
	 	   677.55

  

																	
	 $10 –
	 	(	 	 $10 ×
	  	(	 	  677.55 – 489.34    
	  	)	  	 × 100%
	  	)	 	= $7.500
	 	 	  	 	  
 752.83
	  	  	  	 

 Redemption Amount (per unit) = $7.500 
 Example 2—The hypothetical Ending Value is 95% of the Starting Value and is greater than the Threshold Value: 
  

			
	 Starting Value:
	 	   752.83
	 Hypothetical Ending Value:
	 	   715.19
	 Threshold Value:
	 	   677.55

 Redemption Amount (per unit) = $10.000 
 If
the Ending Value is less than or equal to the Starting Value but is greater than or equal to the Threshold Value, the Redemption Amount (per unit) will equal the $10 Original Offering Price. 
 Example 3—The hypothetical Ending Value is equal to 104% of the Starting Value: 
  

			
	 Starting Value:
	 	   752.83
	 Hypothetical Ending Value:
	 	   782.94

  

															
	 $10 +
	 	(	 	 $10 × 200% ×
	  	(	 	  782.94 – 752.83    
	  	)	  	)	 	= $10.800
	 	 	  	 	  
 752.83
	  	  	 

 Redemption Amount (per unit) = $10.800 
 Example 4—The hypothetical Ending Value is 150% of the Starting Value: 
  

			
	 Starting Value:
	 	   752.83
	 Hypothetical Ending Value:
	 	1,129.25

  

															
	 $10 +
	 	(	 	 $10 × 200% ×
	  	(	 	  1,129.25 – 752.83    
	  	)	  	)	 	= $20.000
	 	 	  	 	  
 752.83
	  	  	 

 Redemption Amount (per unit) = $13.312         (The Redemption Amount (per unit)
cannot be greater than the Capped Value.) 
  

 TS-3 
 

 

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 The following table illustrates, for the Starting Value of 752.83, the Threshold Value of 677.55, and a range of
hypothetical Ending Values of the Index: 
  

	 	§	 	 the percentage change from the Starting Value to the hypothetical Ending Value; 

	 	§	 	 the hypothetical Redemption Amount per unit of the LIRNs (rounded to three decimal places); 

	 	§	 	 the total rate of return to holders of the LIRNs; 

	 	§	 	 the pretax annualized rate of return to holders of the LIRNs; and 

	 	§	 	 the pretax annualized rate of return of a hypothetical investment in the stocks included in the Index, which includes an assumed aggregate dividend yield of
3.79% per annum, as more fully described below. 

 The table below reflects the Participation Rate of 200%, the Downside Leverage Factor of
100%, and the Capped Value of $13.312 (per unit). 
  

											
	 Hypothetical
        Ending Value        
	 	Percentage Change
From the
Starting Value
    to the Hypothetical
     Ending Value	 	Hypothetical
Redemption
    Amount per Unit    	 	Total
Rate of
Return on
    the LIRNs    	 	Pretax
Annualized
Rate of
Return
on
    the LIRNs (1)    	 	Pretax Annualized Rate of
Return of
the
Stocks
    Included in the Index (1)(2)    
	   376.42	 	-50.00%	 	  $6.000	 	-40.00%	 	-31.75%	 	-37.08%
	   451.70	 	-40.00%	 	  $7.000	 	-30.00%	 	-22.74%	 	-27.32%
	   526.98	 	-30.00%	 	  $8.000	 	-20.00%	 	-14.54%	 	-18.53%
	   639.91	 	-15.00%	 	  $9.500	 	  -5.00%	 	  -3.44%	 	  -6.73%
	        677.55 (3)	 	-10.00%	 	$10.000	 	   0.00%	 	   0.00%	 	  -3.09%
	   722.72	 	  -4.00%	 	$10.000	 	   0.00%	 	   0.00%	 	   1.10%
	   737.77	 	  -2.00%	 	$10.000	 	   0.00%	 	   0.00%	 	   2.46%
	        752.83 (4)	 	   0.00%	 	$10.000	 	   0.00%	 	   0.00%	 	   3.81%
	   790.47	 	   5.00%	 	$11.000	 	 10.00%	 	   6.55%	 	   7.09%
	   828.11	 	 10.00%	 	$12.000	 	 20.00%	 	 12.73%	 	 10.28%
	   865.75	 	 15.00%	 	$13.000	 	 30.00%	 	 18.57%	 	 13.38%
	   903.40	 	 20.00%	 	     $13.312 (5)	 	 33.12%	 	 20.33%	 	 16.39%
	   941.04	 	 25.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 19.32%
	   978.68	 	 30.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 22.17%
	1,016.32	 	 35.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 24.96%
	1,053.96	 	 40.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 27.68%
	1,091.60	 	 45.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 30.33%
	1,129.25	 	 50.00%	 	$13.312	 	 33.12%	 	 20.33%	 	 32.93%

  

	(1)	The annualized rates of return specified in this column are calculated on a semi-annual bond equivalent basis and assume an investment term from March 5, 2009 to August 27, 2010,
the term of the LIRNs. 

  

	(2)	This rate of return assumes: 

  

	 	(a)	a percentage change in the aggregate price of the stocks included in the Index that equals the percentage change in the level of the Index from the Starting Value to the relevant
hypothetical Ending Value; and 

  

	 	(b)	a constant dividend yield of 3.79% per annum, paid quarterly from the date of initial delivery of the LIRNs, applied to the level of the Index at the end of each quarter, assuming this
level increases or decreases linearly from the Starting Value to the relevant hypothetical Ending Value; and 

  

	 	(c)	no transaction fees or expenses. 

  

	(3)	This is the Threshold Value. 

  

	(4)	This is the Starting Value. 

  

	(5)	The Redemption Amount per unit of the LIRNs cannot exceed the Capped Value of $13.312. 

 The
above figures are for purposes of illustration only. The actual amount you receive and the resulting total and pretax annualized rates of return will depend on the actual Ending Value and the term of your investment. 
  

 TS-4 
 

 

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 Risk Factors 
 An investment in the LIRNs involves significant risks. The following is a list of certain of the risks involved in investing in the LIRNs. You should carefully review the more detailed explanation of risks relating to the LIRNs in the
“Risk Factors” sections included in the product supplement LIRN-1 and MTN prospectus supplement identified below under “Additional Terms.” We also urge you to consult your investment, legal, tax, accounting, and other advisors
before you invest in the LIRNs. 
  

	 	§	 	 Your investment may result in a loss; there is no guaranteed return of principal. 

  

	 	§	 	 Your yield may be less than the yield on a conventional debt security of comparable maturity. 

  

	 	§	 	 Your return, if any, is limited to the return represented by the Capped Value. 

  

	 	§	 	 Your investment return may be less than a comparable investment directly in the stocks included in the Index. 

  

	 	§	 	 You must rely on your own evaluation of the merits of an investment linked to the Index. 

  

	 	§	 	 In seeking to provide you with what we believe to be commercially reasonable terms for the LIRNs while providing the selling agents with compensation for their services, we
have considered the costs of developing, hedging, and distributing the LIRNs. 

  

	 	§	 	 We cannot assure you that a trading market for your LIRNs will ever develop or be maintained. 

  

	 	§	 	 The Redemption Amount will not be affected by all developments relating to the Index. 

  

	 	 §

	 	 Standard & Poor’s® (“S&P®”) may adjust the Index in a way that affects
its level, and S&P® has no obligation to consider your interests. 

  

	 	§	 	 You will have no rights as a holder of the securities represented by the Index, and you will not be entitled to receive any of those securities or dividends or other
distributions by the issuers of those securities. 

  

	 	§	 	 Except to the extent that our common stock is included in the Index, we do not control any company included in the Index, and are not responsible for any disclosure made by
any other company. 

  

	 	§	 	 If you attempt to sell LIRNs prior to maturity, their market value, if any, will be affected by various factors that interrelate in complex ways, and their market value may
be less than their Original Offering Price. 

  

	 	§	 	 Payments on LIRNs are subject to our credit risk, and changes in our credit ratings are expected to affect the value of LIRNs. 

  

	 	§	 	 Purchases and sales by us and our affiliates may affect your return. 

  

	 	§	 	 Our trading and hedging activities may create conflicts of interest with you. 

  

	 	§	 	 Our hedging activities may affect your return on the LIRNs and their market value. 

  

	 	§	 	 Our business activities relating to the companies represented by the Index may create conflicts of interest with you. 

  

	 	§	 	 There may be potential conflicts of interest involving the calculation agent. We have the right to appoint and remove the calculation agent. 

  

	 	§	 	 The U.S. federal income tax consequences of the LIRNs are uncertain, and may be adverse to a holder of LIRNs. See “Certain U.S. Federal Income Taxation
Considerations” below. 

 Investor Considerations 
  
 You may wish to consider an investment in the LIRNs if: 
  

	§	 	 You anticipate that the Index will appreciate moderately from the Starting Value to the Ending Value. 

  

	§	 	 You accept that your investment may result in a loss, which could be significant, if the level of the Index decreases from the Starting Value to an Ending Value that is less
than the Threshold Value. 

  

	§	 	 You accept that the return on the LIRNs will not exceed the return represented by the Capped Value. 

  

	§	 	 You are willing to forgo interest payments on the LIRNs, such as fixed or floating rate interest paid on traditional interest bearing debt securities.

  

	§	 	 You want exposure to the Index with no expectation of dividends or other benefits of owning the stocks included in the Index. 

  

	§	 	 You are willing to accept that there is no assurance that the LIRNs will be listed or remain listed on NYSE Arca. You understand that any listing does not ensure that a
trading market will develop for the LIRNs or that there will be liquidity in any trading market. You understand that secondary market prices for the LIRNs, if any, will be affected by various factors, including our perceived creditworthiness.

 The LIRNs may not be an
appropriate investment for you if: 
  

	§	 	 You anticipate that the Index will depreciate from the Starting Value to the Ending Value or that the Index will not appreciate sufficiently over the term of the LIRNs to
provide you with your desired return. 

  

	§	 	 You are seeking 100% principal protection or preservation of capital. 

  

	§	 	 You seek a return on your investment that will not be capped at 33.12% over the Original Offering Price. 

  

	§	 	 You seek interest payments or other current income on your investment. 

  

	§	 	 You want to receive dividends or other distributions paid on the stocks included in the Index. 

  

	§	 	 You want assurances that there will be a liquid market if and when you want to sell the LIRNs prior to maturity. 

  

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 Other Provisions 
 We will
deliver the LIRNs against payment therefor in New York, New York on a date that is greater than three business days following the pricing date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are
required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade LIRNs more than three business days prior to the original issue date will be required to specify
alternative settlement arrangements to prevent a failed settlement. 
 If you place an order to purchase these offered securities, you are consenting to each of
MLPF&S and its broker-dealer affiliate First Republic acting as a principal in effecting the transaction for your account. MLPF&S is acting as an underwriter and/or selling agent for this offering and will receive underwriting compensation
from BAC. 
 Supplement to the Plan of Distribution 
 MLPF&S,
First Republic, and BAI, each a broker-dealer subsidiary of BAC, are members of the Financial Industry Regulatory Authority, Inc. (formerly the National Association of Securities Dealers, Inc. (the “NASD”)) and will participate in the
distribution of the LIRNs. Accordingly, offerings of the LIRNs will conform to the requirements of NASD Rule 2720. MLPF&S and First Republic will purchase LIRNs as principal, while BAI will use its best efforts to sell the LIRNs. In the original
offering of the LIRNs, the LIRNs will be sold in minimum investment amounts of 100 units. 
 MLPF&S, First Republic, and BAI may use this Note Prospectus for
offers and sales in secondary market transactions and market-making transactions in the LIRNs but are not obligated to engage in such secondary market transactions and/or market-making transactions. MLPF&S, First Republic, and BAI may act as
principal or agent in these transactions, and any such sales will be made at prices related to prevailing market prices at the time of the sale. 
  

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 The Index 
 The S&P 500® Index 
 We have obtained all information regarding the Index contained in this term sheet, including its make up, method of
calculation, and changes in its components, from publicly available information. That information reflects the policies of, and is subject to change by, S&P®. S&P®, which owns the copyright and all other rights
to the Index, has no obligation to continue to publish, and may discontinue publication of, the Index. The consequences of S&P® discontinuing publication of the Index are discussed in the section of product supplement LIRN-1
entitled “Description of the LIRNs—Discontinuance of a Market Measure.” We do not assume any responsibility for the accuracy or completeness of any information relating to the Index. 
 The Index is intended to provide an indication of the pattern of common stock price movement. The calculation of the level
of the Index is based on the relative value of the aggregate market value of the common stocks of 500 companies as of a particular time compared to the aggregate average market value of the common stocks of 500 similar companies during the base
period of the years 1941 through 1943. As of January 30, 2009, 411 companies or 82.7% of the market capitalization of the Index traded on the New York Stock Exchange, 89 companies or 17.3% of the market capitalization of the Index traded on The
NASDAQ Stock Market; and no companies traded on the NYSE Alternext U.S. stock exchange (formerly known as the American Stock Exchange). As of January 30, 2009, the aggregate market value of the companies included in the Index represented
approximately 77% of the aggregate market value of stocks included in the Standard & Poor’s® Stock Guide Database of domestic common stocks traded in the U.S., excluding American depositary receipts, limited partnerships
and mutual funds. 
 S&P® chooses companies for inclusion in the Index with the aim of
achieving a distribution by broad industry groupings that approximates the distribution of these groupings in the common stock population of its Stock Guide Database of over 10,000 companies, which S&P® uses as an assumed model
for the composition of the total market. Relevant criteria employed by S&P® include the viability of the particular company, the extent to which that company represents the industry group to which it is assigned, the extent to
which the market price of that company’s common stock generally is responsive to changes in the affairs of the respective industry, and the market value and trading activity of the common stock of that company. Ten main groups of companies
comprise the Index, with the approximate percentage of the market capitalization of the Index included in each group as of January 30, 2009 indicated in parentheses: Consumer Discretionary (8.2%); Consumer Staples (12.8%); Energy (14.1%);
Financials (10.7%); Health Care (15.9%); Industrials (10.6%); Information Technology (16.2%); Materials (3.0%); Telecommunication Services (3.7%); and Utilities (4.6%). S&P® from time to time, in its sole discretion, may add
companies to, or delete companies from, the Index to achieve the objectives stated above. 
 S&P® calculates the Index by reference to the prices of the constituent stocks of the Index without taking account of the value of dividends paid on those stocks. As a result, the return on the LIRNs will not reflect the
return you would realize if you actually owned the Index constituent stocks and received the dividends paid on those stocks. 
 Computation of the Index

 While S&P® currently employs the following methodology to calculate the Index, no
assurance can be given that S&P® will not modify or change this methodology in a manner that may affect the Redemption Amount. 
 Historically, the market value of any component stock of the Index was calculated as the product of the market price per
share and the number of the then outstanding shares of such component stock. In March 2005, S&P® began shifting the Index half way from a market capitalization weighted formula to a float-adjusted formula, before moving the Index
to full float adjustment on September 16, 2005. S&P®’s criteria for selecting stocks for the Index did not change by the shift to float adjustment. However, the adjustment affects each company’s weight in the Index.

 Under float adjustment, the share counts used in calculating the Index reflect only those shares that are
available to investors, not all of a company’s outstanding shares. S&P® defines three groups of shareholders whose holdings are subject to float adjustment: 
  

	 	•	 	 holdings by other publicly traded corporations, venture capital firms, private equity firms, strategic partners, or leveraged buyout groups; 

  

	 	•	 	 holdings by government entities, including all levels of government in the U.S. or foreign countries; and 

  

	 	•	 	 holdings by current or former officers and directors of the company, founders of the company, or family trusts of officers, directors, or founders, as well as holdings of
trusts, foundations, pension funds, employee stock ownership plans, or other investment vehicles associated with and controlled by the company. 

 However, treasury stock, stock options, restricted shares, equity participation units, warrants, preferred stock, convertible stock, and rights are not part of the float. In cases where holdings in a group exceed 10% of the outstanding
shares of a company, the holdings of that group are excluded from the float-adjusted count of shares to be used in the index calculation. Mutual funds, investment advisory firms, pension funds, or foundations not associated with the company and
investment funds in insurance companies, shares of a U.S. company traded in Canada as “exchangeable shares,” shares that trust beneficiaries may buy or sell without difficulty or significant additional expense beyond typical brokerage
fees, and, if a company has multiple classes of stock outstanding, shares in an unlisted or non-traded class if such shares are convertible by shareholders without undue delay and cost, are also part of the float. 
  

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 For each stock, an investable weight factor (“IWF”) is
calculated by dividing the available float shares, defined as the total shares outstanding less shares held in one or more of the three groups listed above where the group holdings exceed 10% of the outstanding shares, by the total shares
outstanding. The float-adjusted index is then calculated by dividing the sum of the IWF multiplied by both the price and the total shares outstanding for each stock by the index divisor. For companies with multiple classes of stock,
S&P® calculates the weighted average IWF for each stock using the proportion of the total company market capitalization of each share class as weights. 
 The Index is calculated using a base-weighted aggregate methodology: the level of the Index reflects the total market value of all 500 component stocks relative to the base period of the years 1941 through 1943. An indexed number is used to
represent the results of this calculation in order to make the value easier to work with and track over time. The actual total market value of the component stocks during the base period of the years 1941 through 1943 has been set to an indexed
value of 10. This is often indicated by the notation 1941-43 = 10. In practice, the daily calculation of the Index is computed by dividing the total market value of the component stocks by the “index divisor.” By itself, the index divisor
is an arbitrary number. However, in the context of the calculation of the Index, it serves as a link to the original base period level of the Index. The index divisor keeps the Index comparable over time and is the manipulation point for all
adjustments to the Index, which is index maintenance. 
 Index Maintenance 
 Index maintenance includes monitoring and completing the adjustments for company additions and deletions, share changes, stock splits, stock dividends, and stock price adjustments due to company restructuring or spinoffs. Some corporate
actions, such as stock splits and stock dividends, require changes in the common shares outstanding and the stock prices of the companies in the Index, and do not require index divisor adjustments. 
 To prevent the level of the Index from changing due to corporate actions, corporate actions which affect the total market value of the Index require an index divisor adjustment.
By adjusting the index divisor for the change in market value, the level of the Index remains constant and does not reflect the corporate actions of individual companies in the Index. Index divisor adjustments are made after the close of trading and
after the calculation of the Index closing level. 
 Changes in a company’s shares outstanding of 5.00% or more due to mergers, acquisitions, public offerings,
private placements, tender offers, Dutch auctions, or exchange offers are made as soon as reasonably possible. All other changes of 5.00% or more (due to, for example, company stock repurchases, redemptions, exercise of options, warrants,
subscription rights, conversion of preferred stock, notes, debt, equity participation units, or other recapitalizations) are made weekly and are announced on Tuesdays for implementation after the close of trading on Wednesday. Changes of less than
5.00% are accumulated and made quarterly on the third Friday of March, June, September, and December, and are usually announced two days prior. 
 Changes in IWFs of
more than ten percentage points caused by corporate actions (such as merger and acquisition activity, restructurings, or spinoffs) will be made as soon as reasonably possible. Other changes in IWFs will be made annually, in September, when IWFs are
reviewed. 
  

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 The following graph sets forth the monthly historical performance of the Index in the period from January 2004 through
January 2009. This historical data on the Index is not necessarily indicative of the future performance of the Index or what the value of the LIRNs may be. Any historical upward or downward trend in the level of the Index during any period set forth
below is not an indication that the Index is more or less likely to increase or decrease at any time over the term of the LIRNs. On the pricing date, the closing level of the Index was 752.83. 
 

 
 Before investing in the LIRNs, you should consult publicly available sources for the levels and trading pattern of the Index. The
generally unsettled international environment and related uncertainties, including the risk of terrorism, may result in financial markets generally and the Index exhibiting greater volatility than in earlier periods. 
 License Agreement 
 S&P® does not guarantee the accuracy and/or the completeness of the Index or any data included in the Index. S&P® shall have no liability for any errors, omissions, or interruptions in the Index.
S&P® makes no warranty, express or implied, as to results to be obtained by MLPF&S, us, holders of the LIRNs or any other person or entity from the use of the Index or any data included in the Index in connection with the
rights licensed under the license agreement described in this term sheet or for any other use. S&P® makes no express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a
particular purpose with respect to the Index or any data included in the Index. Without limiting any of the above information, in no event shall S&P® have any liability for any special, punitive, indirect, or consequential
damages; including lost profits, even if notified of the possibility of these damages. 
 S&P® and MLPF&S have entered into a non-exclusive license agreement providing for the license to MLPF&S, in exchange for a fee, of the right to use the Index in connection with this offering. The license agreement
provides that the following language must be stated in this term sheet: 
 “The LIRNs are
not sponsored, endorsed, sold, or promoted by S&P®. S&P® makes no representation or warranty, express or implied, to the holders of the LIRNs or any member of the public regarding the advisability of investing
in securities generally or in the LIRNs particularly or the ability of the Index to track general stock market performance. S&P®’s only relationship to MLPF&S and to us (other than transactions entered into in the
ordinary course of business) is the licensing of certain trademarks and trade names of S&P® and of the Index which is determined, composed, and calculated by S&P® without regard to MLPF&S, us, or the LIRNs.
S&P® has no obligation to take the needs of MLPF&S, our needs, or the needs of the holders of the LIRNs into consideration in determining, composing, or calculating the Index. S&P® is not responsible for and
has not participated in the determination of the timing of the sale of the LIRNs, prices at which the LIRNs are to initially be sold, or quantities of the LIRNs to be issued or in the determination or calculation of the equation by which the LIRNs
are to be converted into cash. S&P® has no obligation or liability in connection with the administration, marketing, or trading of the LIRNs.” 
  

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 Summary Tax Consequences 
 You should consider the U.S. federal income tax consequences of an investment in the LIRNs, including the following: 
  

	 	•	 	 You agree with us (in the absence of an administrative determination, or judicial ruling to the contrary) to characterize and treat the LIRNs for all tax purposes as a single
financial contract with respect to the Index that requires you to pay us at inception an amount equal to the purchase price of the LIRNs and that entitles you to receive at maturity an amount in cash based upon the performance of the Index.

  

	 	•	 	 Under this characterization and tax treatment of the LIRNs, upon receipt of a cash payment at maturity or upon a sale or exchange of the LIRNs prior to maturity, you
generally will recognize capital gain or loss. This capital gain or loss generally will be long-term capital gain or loss if you held the LIRNs for more than one year. 

 Certain U.S. Federal Income Taxation Considerations 
 Set forth below is a summary of certain U.S. federal income tax
considerations relating to an investment in the LIRNs. The following summary is not complete and is qualified in its entirety by the discussion under the section entitled “U.S. Federal Income Tax Summary” in the accompanying product
supplement LIRN-1, which you should carefully review prior to investing in the LIRNs. 
 General.    Although there is no statutory,
judicial, or administrative authority directly addressing the characterization of the LIRNs, we intend to treat the LIRNs for all tax purposes as a single financial contract with respect to the Index that requires the investor to pay us at inception
an amount equal to the purchase price of the LIRNs and that entitles the investor to receive at maturity an amount in cash based upon the performance of the Index. Under the terms of the LIRNs, we and every investor in the LIRNs agree, in the
absence of an administrative determination or judicial ruling to the contrary, to treat the LIRNs as described in the preceding sentence. This discussion assumes that the LIRNs constitute a single financial contract with respect to the Index for
U.S. federal income tax purposes. If the LIRNs did not constitute a single financial contract, the tax consequences described below would be materially different. The discussion in this section also assumes that there is a significant possibility of
a significant loss of principal on an investment in the LIRNs. 
 This characterization of the LIRNs is not binding on the Internal Revenue Service (“IRS”)
or the courts. No statutory, judicial, or administrative authority directly addresses the characterization of the LIRNs or any similar instruments for U.S. federal income tax purposes, and no ruling is being requested from the IRS with respect to
their proper characterization and treatment. Due to the absence of authorities on point, significant aspects of the U.S. federal income tax consequences of an investment in the LIRNs are not certain, and no assurance can be given that the IRS or any
court will agree with the characterization and tax treatment described in the accompanying product supplement LIRN-1. Accordingly, you are urged to consult your tax advisor regarding all aspects of the U.S. federal income tax consequences of an
investment in the LIRNs, including possible alternative characterizations. 
 Settlement At Maturity or Sale or Exchange Prior to
Maturity.    Assuming that the LIRNs are properly characterized and treated as single financial contracts with respect to the Index for U.S. federal income tax purposes, upon receipt of a cash payment at maturity or upon a
sale or exchange of the LIRNs prior to maturity, a U.S. Holder (as defined in the accompanying product supplement LIRN-1) generally will recognize capital gain or loss equal to the difference between the amount realized and the U.S. Holder’s
basis in the LIRNs. This capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder held the LIRNs for more than one year. The deductibility of capital losses is subject to limitations. 
 Possible Future Tax Law Changes.    On December 7, 2007, the IRS released Notice 2008-2 (“Notice”) seeking comments from the public on
the taxation of financial instruments currently taxed as “prepaid forward contracts.” This Notice addresses instruments such as the LIRNs. According to the Notice, the IRS and Treasury are considering whether a holder of an instrument such
as the LIRNs should be required to accrue ordinary income on a current basis, regardless of whether any payments are made prior to maturity. It is not possible to determine what guidance the IRS and Treasury will ultimately issue, if any. Any such
future guidance may affect the amount, timing, and character of income, gain, or loss in respect of the LIRNs, possibly with retroactive effect. The IRS and Treasury are also considering additional issues, including whether additional gain or loss
from such instruments should be treated as ordinary or capital, whether foreign holders of such instruments should be subject to withholding tax on any deemed income accruals, whether Section 1260 of the Internal Revenue Code of 1986, as
amended, concerning certain “constructive ownership transactions,” generally applies or should generally apply to such instruments, and whether any of these determinations depend on the nature of the underlying asset. We urge you to
consult your own tax advisors concerning the impact and the significance of the above considerations. We intend to continue treating the LIRNs for U.S. federal income tax purposes in the manner described herein unless and until such time as we
determine, or the IRS or Treasury determines, that some other treatment is more appropriate. 
 You should consult your own tax advisor concerning the U.S. federal
income tax consequences to you of acquiring, owning, and disposing of the LIRNs, as well as any tax consequences arising under the laws of any state, local, foreign, or other tax jurisdiction and the possible effects of changes in U.S. federal or
other tax laws. See the discussion under the section entitled “U.S. Federal Income Tax Summary” in product supplement LIRN-1. 
  

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 Additional Terms 
 You should
read this term sheet, together with the documents listed below, which together contain the terms of the LIRNs and supersede all prior or contemporaneous oral statements as well as any other written materials. You should carefully consider, among
other things, the matters set forth under “Risk Factors” in the sections indicated on the cover of this term sheet. The LIRNs involve risks not associated with conventional debt securities. We urge you to consult your investment, legal,
tax, accounting, and other advisers before you invest in the LIRNs. 
 You may access the following documents on the SEC Website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC Website): 
  

	 	§	 	 Product supplement LIRN-1 dated January 
22, 2009: 

 http://www.sec.gov/Archives/edgar/data/70858/000119312509010269/d424b5.htm
  
  

	 	§	 	 Series L MTN prospectus supplement dated April 10, 2008 and prospectus dated May 5, 2006: 

 http://www.sec.gov/Archives/edgar/data/70858/000119312508079745/d424b5.htm 

 Our Central Index Key, or CIK, on the SEC Website is 70858. 
 We have
filed a registration statement (including a product supplement, prospectus supplement, and a prospectus) with the SEC for the offering to which this term sheet relates. Before you invest, you should read the product supplement, the prospectus
supplement, and the prospectus in that registration statement, and the other documents relating to this offering that we have filed with the SEC for more complete information about us and this offering. You may get these documents without cost by
visiting EDGAR on the SEC Website at www.sec.gov. Alternatively, we, any agent or any dealer participating in this offering will arrange to send you
the Note Prospectus if you so request by calling MLPF&S toll-free 1-866-500-5408. 
 Structured Investments Classification 
 MLPF&S classifies certain structured investments (the “Structured Investments”), including the LIRNs, into four categories, each with different investment
characteristics. The description below is intended to briefly describe the four categories of Structured Investments offered: Principal Protection, Enhanced Income, Market Participation, and Enhanced Participation. A Structured Investment may,
however, combine characteristics that are relevant to one or more of the other categories. As such, a category should not be relied upon as a description of any particular Structured Investment. 
 Principal Protection: Principal Protected Structured Investments offer full or partial principal protection at maturity, while offering market exposure and
the opportunity for a better return than may be available from comparable fixed income securities. Principal protection may not be achieved if the investment is sold prior to maturity. 
 Enhanced Income: Structured Investments offering enhanced income may offer an enhanced income stream through interim fixed or variable coupon payments. However, in exchange for receiving current income, investors
may forfeit upside potential on the underlying asset. These investments generally do not include the principal protection feature. 
 Market Participation:
Market Participation Structured Investments can offer investors exposure to specific market sectors, asset classes, and/or strategies that may not be readily available through traditional investment alternatives. Returns obtained from these
investments are tied to the performance of the underlying asset. As such, subject to certain fees, the returns will generally reflect any increases or decreases in the value of such assets. These investments are not structured to include the
principal protection feature. 
 Enhanced Participation: Enhanced Participation Structured Investments may offer investors the potential to receive
better than market returns on the performance of the underlying asset. Some structures may offer leverage in exchange for a capped or limited upside potential and also in exchange for downside risk. These investments are not structured to include
the principal protection feature. 
 The classification of Structured Investments is meant solely for informational purposes and is not intended to fully describe any
particular Structured Investment nor guarantee any particular performance. 
  

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	Product Supplement No. LIRN-1	  	
	 (To Prospectus dated May 5, 2006
 and Series L Prospectus Supplement dated April 10, 2008)
 January 22, 2009
	  	

 

 
 Leveraged Index Return Notes® “LIRNs®” 
  

	•	 	 LIRNs are unsecured senior notes issued by Bank of America Corporation. LIRNs are not principal protected. We will not pay interest on LIRNs.

  

	•	 	 This product supplement describes the general terms of LIRNs and the general manner in which they may be offered and sold. For each offering of LIRNs, we will
provide you with a pricing supplement (which we may refer to as a “term sheet”) that will describe the specific terms of that offering. The term sheet will identify any additions or changes to the terms specified in this product
supplement. 

  

	•	 	 The term sheet will also identify the underlying “Market Measure,” which may be one or more equity-based or commodity-based indices, one or more equity
securities, commodities, or other assets, any other statistical measure of economic or financial performance, including, but not limited to, any currency, currency index, consumer price index or mortgage index, interest rate, or any combination of
the foregoing. We also may describe the Market Measure in an additional supplement to the prospectus, which we refer to as an “index supplement.” 

  

	•	 	 At maturity, you will receive a cash payment (the “Redemption Amount”) based upon the direction of and percentage change in the value of the applicable
Market Measure from the Starting Value to the Ending Value (each as defined below), calculated as described in this product supplement. If specified in the applicable term sheet, your LIRNs may be “Capped LIRNs,” in which case the
Redemption Amount will not exceed a specified cap (the “Capped Value”). If specified in the applicable term sheet, your LIRNs may be “Bear LIRNs,” which may pay an amount in excess of their Original Offering Price (as defined
below) if the value of the Market Measure decreases, and which pay an amount less than their Original Offering Price if the value of the Market Measure increases above the Threshold Value (as defined below). Bear LIRNs will not be subject to any
Capped Value. Except where otherwise specifically provided in this product supplement, all references in this product supplement to “LIRNs” shall be deemed to include a reference to Capped LIRNs and Bear LIRNs.

  

	•	 	 In the case of LIRNs, unless the applicable term sheet provides otherwise: 

  

	 	•	 	 If the Ending Value is greater than the Starting Value, then you will receive at maturity a Redemption Amount per LIRN equal to the Original Offering Price plus the
product of (i) the Original Offering Price, (ii) the Participation Rate (as defined below), and (iii) the percentage increase of the Market Measure from the Starting Value to the Ending Value, provided that in the case of Capped
LIRNs, the Redemption Amount will not exceed the Capped Value. 

  

	 	•	 	 If the Ending Value is equal to or less than the Starting Value but is equal to or greater than a value that reflects a specified percentage of the Starting Value
(the “Threshold Value”), then you will receive at maturity a Redemption Amount per LIRN equal to the Original Offering Price. 

  

	 	•	 	 If the Ending Value is less than the Threshold Value, then you will receive at maturity a Redemption Amount per LIRN equal to the Original Offering Price minus the
product of (i) the Original Offering Price, (ii) the percentage decrease of the Market Measure in excess of the Threshold Value, and (iii) the Downside Leverage Factor (as defined below). 

  

	•	 	 In the case of Bear LIRNs, unless the applicable term sheet provides otherwise: 

  

	 	•	 	 If the Ending Value is less than the Starting Value, then you will receive at maturity a Redemption Amount per Bear LIRN equal to the Original Offering Price plus
the product of (i) the Original Offering Price, (ii) the Participation Rate, and (iii) the percentage decrease of the Market Measure from the Starting Value to the Ending Value. 

  

	 	•	 	 If the Ending Value is equal to or greater than the Starting Value but is equal to or less than the Threshold Value, then you will receive at maturity a Redemption
Amount per Bear LIRN equal to the Original Offering Price. 

  

	 	•	 	 If the Ending Value is greater than the Threshold Value, then you will receive at maturity a Redemption Amount per Bear LIRN equal to the Original Offering Price
minus the product of (i) the Original Offering Price, (ii) the percentage increase of the Market Measure in excess of the Threshold Value, and (iii) the Upside Leverage Factor (as defined below). 

  

	•	 	 LIRNs will be issued in denominations of whole units. Each unit will have a public offering price as set forth in the applicable term sheet (the “Original
Offering Price”). We may set the Threshold Value, the Downside Leverage Factor, the Upside Leverage Factor, the Participation Rate and/or the Capped Value, if applicable, on the pricing date of the LIRNs, which will be the date the LIRNs are
priced for initial sale to the public. The term sheet may also set forth a minimum number of units that you must purchase. 

  

	•	 	 If provided for in the applicable term sheet, we may apply to have your LIRNs listed on a securities exchange or quotation system. If approval of such an
application is granted, your LIRNs will be listed on the securities exchange or quotation system at the time of such approval. We make no representations, however, that your LIRNs will be listed or, if listed, will remain listed for the entire term
of your LIRNs. 

  

	•	 	 One or more of our affiliates, including Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and Banc of America Investment
Services, Inc. (“BAI”), may act as our selling agents to offer LIRNs. 

  
  
 LIRNs are unsecured and are not savings
accounts, deposits, or other obligations of a bank. LIRNs are not guaranteed by Bank of America, N.A. or any other bank, are not insured by the Federal Deposit Insurance Corporation or any other governmental agency and involve investment risks.
Potential purchasers of LIRNs should consider the information in “Risk Factors” beginning on page S-10. You may lose some or all of your investment in LIRNs. 
 None of the Securities and Exchange Commission (the “SEC”), any state securities commission, or any other regulatory body has approved or disapproved of
these securities or passed upon the adequacy or accuracy of this product supplement, the prospectus supplement, or the prospectus. Any representation to the contrary is a criminal offense. 
  
  
  

			
	Merrill Lynch & Co.	  	Banc of America Investment Services, Inc.

Table of Contents

 TABLE OF CONTENTS 
  

			
	 	  	Page
		
	 SUMMARY 
	  	S-3
		
	 RISK FACTORS
	  	S-10
		
	 USE OF PROCEEDS
	  	S-21
		
	 DESCRIPTION OF LIRNs
	  	S-22
		
	 SUPPLEMENTAL PLAN OF DISTRIBUTION
	  	S-33
		
	 U.S. FEDERAL INCOME TAX SUMMARY
	  	S-33
		
	 ERISA CONSIDERATIONS
	  	S-39

  
  
 “Leveraged Index Return Notes®” and LIRNs® are registered service marks of our subsidiary, Merrill Lynch & Co., Inc. 
  

 S-2 

Table of Contents

 SUMMARY 
 This product supplement relates only to LIRNs and does not relate to any underlying asset that comprises the Market Measure described in any term sheet.
This summary includes questions and answers that highlight selected information from the prospectus, prospectus supplement, and this product supplement to help you understand LIRNs. You should read carefully the entire prospectus, prospectus
supplement, and product supplement, together with the applicable term sheet and any applicable index supplement, to understand fully the terms of your LIRNs, as well as the tax and other considerations important to you in making a decision about
whether to invest in any LIRNs. In particular, you should review carefully the section in this product supplement entitled “Risk Factors,” which highlights a number of risks of an investment in LIRNs, to determine whether an investment in
LIRNs is appropriate for you. If information in this product supplement is inconsistent with the prospectus or prospectus supplement, this product supplement will supersede those documents. However, if information in any term sheet or index
supplement is inconsistent with this product supplement, that term sheet or index supplement will supersede this product supplement. 
 Certain capitalized terms used and not defined in this product supplement have the meanings ascribed to them in the prospectus supplement and prospectus. 
 In light of the complexity of the transactions described in this product supplement, you are urged to consult with your own attorneys and business and tax advisors before making a decision to purchase any LIRNs.

 The information in this “Summary” section is qualified in its entirety by the more detailed explanation set forth elsewhere in
this product supplement, the prospectus supplement, and prospectus, as well as the applicable term sheet and any index supplement. You should rely only on the information contained in those documents. We have not authorized any other person to
provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor any selling agent is making an offer to sell LIRNs in any jurisdiction where the offer or sale is
not permitted. You should assume that the information in this product supplement, the prospectus supplement, and prospectus, together with the term sheet and any index supplement, is accurate only as of the date on their respective front covers.

 What are LIRNs? 
 LIRNs are senior
debt securities issued by Bank of America Corporation, and are not secured by collateral. LIRNs will rank equally with all of our other unsecured senior indebtedness from time to time outstanding, and any payments due on LIRNs, including any
repayment of principal, will be subject to our credit risk. Each series of LIRNs will mature on the date set forth in the applicable term sheet. We cannot redeem LIRNs at any earlier date. We will not make any payments on LIRNs until maturity. LIRNs
are not principal protected. 
 LIRNs are designed for investors who are seeking exposure to a specific Market Measure and who anticipate
that the value of the Market Measure will increase (or, in the case of Bear LIRNs, decrease) over the term of LIRNs. The applicable term sheet may provide that your LIRNs are Capped LIRNs, which are subject to a Capped Value. Capped LIRNs are
designed for investors who anticipate that such increase will be moderate and who are willing to accept a return that will not exceed the return represented by the Capped Value. Investors in LIRNs must be willing to forgo interest payments on their
investment, such as fixed or floating interest rates paid on conventional non-callable debt securities, and bear the risk of loss of all or substantially all of their investment. 
 S-3 

  

Table of Contents

 Are LIRNs equity or debt securities? 
 LIRNs are our senior debt securities and are not secured by collateral. However, LIRNs will differ from traditional debt securities in that their return
is linked to the performance of the underlying Market Measure, and they are not principal protected. In addition, you will not receive interest payments. At maturity, instead of receiving the Original Offering Price of your LIRNs, you may receive an
amount that is greater than or less than the Original Offering Price, depending upon the performance of the Market Measure over the term of the LIRNs. We describe below how this amount at maturity is determined. 
 Is it possible for you to lose some or all of your investment in LIRNs? 
 Yes. You will receive at maturity a Redemption Amount that is less than the Original Offering Price of your LIRNs if: 
  

	 	•	 	 the Ending Value is less than the Threshold Value; and 

  

	 	•	 	 in the case of Bear LIRNs, the Ending Value is greater than the Threshold Value. 

 In each case, the Redemption Amount you will receive at maturity per LIRN will be equal to the Original Offering Price minus the product of (i) the
Original Offering Price, (ii) the percentage decrease (or, in the case of Bear LIRNs, increase) of the Market Measure in excess of the Threshold Value, and (iii) the Downside Leverage Factor (or, in the case of Bear LIRNs, the Upside
Leverage Factor). In no event will the Redemption Amount be less than zero. 
 The “Downside Leverage Factor” (or, in the case of
Bear LIRNs, the “Upside Leverage Factor”) represents the extent to which the downside performance of the LIRNs is affected by the downside performance (or, in the case of Bear LIRNs, the upside performance) of the Market Measure beyond the
Threshold Value, and will be set forth in the applicable term sheet. The Downside Leverage Factor (or, in the case of Bear LIRNs, the Upside Leverage Factor) may equal 100%, in which case the downside (or, in the case of Bear LIRNs, the upside) will
be unleveraged. Depending on the Downside Leverage Factor (or, in the case of Bear LIRNs, the Upside Leverage Factor), you may lose all or a substantial portion of the amount that you invested to purchase LIRNs; however, in no event will you lose
more than your initial investment. You should carefully review the applicable term sheet to determine the extent to which your principal is at risk. Further, if you sell your LIRNs prior to maturity, you may find that the market value per LIRN is
less than the Original Offering Price. 
 What is the Market Measure? 
 The Market Measure may consist of one or more of the following: 
  

	 	•	 	 U.S. broad-based equity indices; 

  

	 	•	 	 U.S. sector or style-based equity indices; 

  

	 	•	 	 non-U.S. or global equity indices; 

  

	 	•	 	 commodity-based indices; 

  

	 	•	 	 the value of one or more commodities, equity securities, or other assets; 

  

	 	•	 	 any other statistical measure of U.S. or non-U.S. economic or financial performance, including, but not limited to, any currency or currency index, consumer price
index, mortgage index, or interest rate; or 

  

	 	•	 	 any combination of any of the above. 

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 The Market Measure may consist of a group, or “Basket,” of the
foregoing. We refer to each component included in any Basket as a “Basket Component.” If the Market Measure to which your LIRNs are linked is a Basket, the Basket Components will be set forth in the applicable term sheet. 
 The applicable term sheet or index supplement will set forth information as to the specific Market Measure, including information as to the historical
values of the Market Measure. However, historical values of the Market Measure are not indicative of the future performance of the Market Measure or the performance of your LIRNs. 
 How is the Redemption Amount calculated? 
 At maturity, subject to our credit risk as issuer of
LIRNs, and unless the applicable term sheet provides otherwise, you will receive the Redemption Amount per unit of LIRNs that you hold, denominated in U.S. dollars. In no event will the Redemption Amount be less than zero. The Redemption Amount will
be calculated as follows: 
  

	 	•	 	 If the Ending Value is greater than the Starting Value, then the Redemption Amount will equal: 

  

																	
		 	Original Offering Price +	 	(  
	 	Original Offering Price x Participation Rate x	 	(  
	 	Ending Value - Starting Value	 	)  
	 	 )
  
	 	
	 	 	 	 	 	Starting Value	 	 	 	

 If provided for in the applicable term sheet, your LIRNs may be Capped LIRNs, in which case, the
Redemption Amount will not exceed a “Capped Value” determined on the pricing date and set forth in the applicable term sheet. 
  

	 	•	 	 If the Ending Value is equal to or less than the Starting Value but is equal to or greater than the Threshold Value, then the Redemption Amount will equal the
Original Offering Price per LIRN. 

  

	 	•	 	 If the Ending Value is less than the Threshold Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price -	 	(  
	 	Original Offering Price x	 	(  
	 	Threshold Value - Ending Value	 	)  
	 	x Downside Leverage Factor	 	 )
  
	 	
	 	 	 	 	 	Starting Value	 	 	 	 	

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 In the case of Bear LIRNs, the Redemption Amount will be calculated as
follows: 
  

	 	•	 	 If the Ending Value is less than the Starting Value, then the Redemption Amount will equal: 

  

																	
		 	Original Offering Price +	 	(  
	 	Original Offering Price x Participation Rate x	 	(  
	 	Starting Value - Ending Value	 	)  
	 	 )
  
	 	
	 	 	 	 	 	Starting Value	 	 	 	

  

	 	•	 	 If the Ending Value is equal to or greater than the Starting Value but is equal to or less than the Threshold Value, then the Redemption Amount will equal the
Original Offering Price per Bear LIRN. 

  

	 	•	 	 If the Ending Value is greater than the Threshold Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price -	 	(  
	 	Original Offering Price x	 	(  
	 	Ending Value - Threshold Value	 	)  
	 	x Upside Leverage Factor	 	 )
  
	 	
	 	 	 	 	 	Starting Value	 	 	 	 	

 The “Threshold Value” is a value of the Market Measure that reflects a specified
percentage of the Starting Value, and will be less than or equal to 100% in the case of LIRNs and greater than or equal to 100% in the case of Bear LIRNs. The Threshold Value will be determined on the pricing date and set forth in the applicable
term sheet. The Redemption Amount per LIRN will be less than the Original Offering Price if the Ending Value is less than (or, in the case of Bear LIRNs, greater than) the Threshold Value. As a result, if the Threshold Value is equal to 100% of the
Starting Value, then the Redemption Amount for LIRNs will be less than the Original Offering Price if there is any decrease (or, in the case of Bear LIRNs, any increase) in the value of the Market Measure from the Starting Value to the Ending Value.

 The “Participation Rate” represents the extent to which the upside performance of the LIRNs is affected by the upside
performance (or, in the case of Bear LIRNs, the downside performance) of the Market Measure. The Participation Rate may be less than, equal to, or greater than 100%. The Participation Rate applicable to your LIRNs will be set forth in the applicable
term sheet. If the applicable term sheet specifies that the Participation Rate is 100%, your participation in any upside performance of the Market Measure (or, in the case of Bear LIRNs, the downside performance) will be unleveraged. Each term sheet
will set forth examples of hypothetical Ending Values and Threshold Values, and the impact of the Participation Rate, the Capped Value, if any, and the Downside Leverage Factor (or, in the case of Bear LIRNs, the Upside Leverage Factor).

 How will the Starting Value and the Ending Value be determined? 
 Unless otherwise specified in the applicable term sheet, the “Starting Value” will equal the closing value of the Market Measure on the pricing date, as determined by the calculation agent. However, if the
Market Measure is linked to one or more commodities or commodity indices, and a Market Disruption Event (as defined below) occurs on the pricing date, then the calculation agent will establish the Starting Value as set forth in the section
“Description of LIRNs—Market Disruption Events—Commodity-Based Market Measures.” 
 If the Market Measure consists of a
Basket, the “Starting Value” will be equal to 100. We will assign each Basket Component a weighting (the “Initial Component Weight”) so that each Basket Component represents a percentage of the Starting Value on the pricing date.
We may assign the Basket Components equal Initial Component Weights, or we may assign the Basket Components unequal Initial Component Weights. The Initial Component Weight for 
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 each Basket Component will be set forth in the applicable term sheet. See “Description
of LIRNs—Basket Market Measures.” 
 The “Ending Value” will equal: 
  

	 	•	 	 as to an equity-based Market Measure, the average of the closing values of the Market Measure on each of a certain number of calculation days during the Maturity
Valuation Period (each as defined below); and 

  

	 	•	 	 as to a commodity-based Market Measure, unless otherwise specified in the applicable term sheet, the closing value of the Market Measure on a specific calculation
day that will be set forth in the applicable term sheet. 

 In the event that a Market Disruption Event occurs and is
continuing on a calculation day, or if certain other events occur, the calculation agent will determine the Ending Value as set forth in the section “Description of LIRNs—Market Disruption Events.” 
 A “calculation day” means any Market Measure Business Day (as defined below) during the Maturity Valuation Period on which a Market Disruption
Event has not occurred. 
 The “Maturity Valuation Period” means the period shortly before the maturity date, the timing and length
of which will be set forth in the applicable term sheet. 
 Unless otherwise specified in the applicable term sheet, a “Market Measure
Business Day” means a day on which (1) the New York Stock Exchange (the “NYSE”) and the Nasdaq Stock Market, or their successors, are open for trading and (2) the Market Measure or any successor thereto is calculated and
published. 
 If the Market Measure is not equity-based or commodity-based, or is a combination of the two, the applicable term sheet or
index supplement will set forth the manner by which the Starting Value and the Ending Value will be determined. 
 Is the return on LIRNs limited in any
way? 
 If your LIRNs are Capped LIRNs, the applicable term sheet will specify a Capped Value. Each Capped LIRN will pay a Redemption
Amount at maturity that will not exceed the Capped Value. 
 For example, if the Participation Rate is 200% for Capped LIRNs, you will only
receive the full benefit of two times the upside potential of the underlying Market Measure if the value of the Market Measure increases, but you will not receive any benefit for any increases in the Market Measure beyond 50% of the return
represented by the Capped Value specified in the applicable term sheet. 
 Who will determine the Redemption Amount? 
 The calculation agent will make all the calculations associated with the LIRNs, such as determining the Starting Value, the Ending Value, and the
Redemption Amount. Unless otherwise set forth in the applicable term sheet, we will appoint our affiliate, MLPF&S, or one of our other affiliates, to act as calculation agent for the LIRNs. See the section entitled “Description of
LIRNs—Role of the Calculation Agent.” 
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 Will you have an ownership interest in the securities, commodities, or other assets that
are represented by the Market Measure? 
 No. An investment in LIRNs does not entitle you to any ownership interest, including any voting
rights, dividends paid, interest payments, or other distributions, in the securities of any of the companies included in an equity-based Market Measure, or in any futures contract for a commodity included in a commodity-based Market Measure. If the
Market Measure is not equity-based or commodity-based, you similarly will not have any right to receive the relevant asset underlying the Market Measure. LIRNs will be payable only in U.S. dollars. 
 Who are the selling agents for LIRNs? 
 One or more
of our affiliates, including MLPF&S and BAI, will act as our selling agents in connection with each offering of LIRNs and will receive a commission or underwriting discount based on the number of units of LIRNs sold. None of the selling agents
is your fiduciary or advisor, and you should not rely upon any communication from it in connection with LIRNs as investment advice or a recommendation to purchase LIRNs. You should make your own investment decision regarding LIRNs after consulting
with your legal, tax, and other advisors. 
 How are LIRNs being offered? 
 We have registered LIRNs with the SEC in the United States. However, we will not register LIRNs for public distribution in any jurisdiction other than
the United States. The selling agents may solicit offers to purchase LIRNs from non-U.S. investors in reliance on available private placement exemptions. See the section entitled “Supplemental Plan of Distribution—Selling
Restrictions” in the prospectus supplement. 
 Will LIRNs be listed on an exchange? 
 If provided for in the applicable term sheet, we will apply to have your LIRNs listed on a securities exchange or quotation system. If approval of such
an application is granted, your LIRNs will be listed on the securities exchange or quotation system at the time of such approval. We make no representations, however, that your LIRNs will be listed or, if listed, will remain listed for the entire
term of your LIRNs. 
 Can the maturity date be postponed if a Market Disruption Event occurs? 
 No. See the section entitled “Description of LIRNs—Market Disruption Events.” 
 Does ERISA impose any limitations on purchases of LIRNs? 
 Yes. An employee benefit plan subject to the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974, as amended (commonly referred to as “ERISA”), or a plan that is subject to Section 4975
of the Internal Revenue Code of 1986, as amended, or the “Code,” including individual retirement accounts, individual retirement annuities, or Keogh plans, or any entity the assets of which are deemed to be “plan assets” under
the ERISA regulations, should not purchase, hold, or dispose of LIRNs unless that plan or entity has determined that its purchase, holding, or disposition of LIRNs will not constitute a prohibited transaction under ERISA or Section 4975 of the
Code. 
 Any plan or entity purchasing LIRNs will be deemed to be representing that it has made that determination, or that a prohibited
transaction class exemption (“PTCE”) or other 
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 statutory or administrative exemption exists and can be relied upon by such plan or entity.
See the section entitled “ERISA Considerations.” 
 Are there any risks associated with your investment? 
 Yes. An investment in LIRNs is subject to risk. LIRNs are not principal protected. Please refer to the section entitled “Risk Factors”
beginning on page S-10 of this product supplement and page S-4 of the prospectus supplement. If the applicable term sheet or index supplement sets forth any additional risk factors, you should read those carefully before purchasing any LIRNs.

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 RISK FACTORS 
 Your investment in LIRNs entails significant risks. Your decision to purchase LIRNs should be made only after carefully considering the risks of an
investment in LIRNs, including those discussed below, with your advisors in light of your particular circumstances. LIRNs are not an appropriate investment for you if you are not knowledgeable about significant elements of LIRNs or financial matters
in general. 
 General Risks Relating to LIRNs 
 Your investment may result in a loss; there is no guaranteed return of principal. LIRNs are not principal protected. In addition, LIRNs do not pay interest. There is no fixed repayment amount of principal on
LIRNs at maturity. If the Ending Value is less than the Threshold Value (or, in the case of Bear LIRNs, greater than the Threshold Value), then the Redemption Amount will be an amount in cash that reflects the change of the Market Measure in excess
of the Threshold Value, as adjusted by the Downside Leverage Factor (or, in the case of Bear LIRNs, the Upside Leverage Factor), and it will be less than the Original Offering Price of your LIRNs. As a result, depending on the performance of the
Market Measure, you may lose all or a substantial portion of your investment. You should carefully review the applicable term sheet to determine the extent to which your principal is at risk, and whether an investment in LIRNs is appropriate in
light of the amount of your investment that you are prepared to place at risk. 
 Your yield may be less than the yield on a conventional
debt security of comparable maturity. There will be no periodic interest payments on LIRNs as there would be on a conventional fixed-rate or floating-rate debt security having the same maturity. Any yield that you receive on LIRNs, which could
be negative, may be less than the return you would earn if you purchased a conventional debt security with the same maturity date. As a result, your investment in LIRNs may not reflect the full opportunity cost to you when you consider factors that
affect the time value of money. 
 Your return on Capped LIRNs, if any, may be limited to the return represented by a Capped Value.
Any positive return on LIRNs is based on the increase in the Market Measure. However, the applicable term sheet may provide that your LIRNs are Capped LIRNs, in which case you will not receive a Redemption Amount that is greater than the Capped
Value. In other words, your opportunity to participate in possible increases in the value of the Market Measure through an investment in the Capped LIRNs will be limited to the Capped Value set forth in the applicable term sheet. 
 Your investment return may be less than a comparable investment directly in the Market Measure, or the components included in the Market Measure.
The applicable term sheet may provide that your LIRNs are Capped LIRNs, in which case, the Redemption Amount will be limited to the applicable Capped Value. In contrast, a direct investment in the Market Measure or the components of the Market
Measure would allow you to receive the full benefit of any appreciation in the value of those components. Your return on the LIRNs, if any, also will not reflect the return you would realize if you actually owned those securities or commodities
underlying the Market Measure and received the dividends paid or distributions made on them because, unless otherwise set forth in the applicable term sheet, the Ending Value will be calculated without taking into consideration the value of
dividends paid or distributions made on those underlying components, or any other rights with respect to the components of the Market Measure. 
 In addition, in certain instances, the Market Measure may consist of or include one or more equity indices that are traded in a non-U.S. currency, such as the euro or the Japanese 

  

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Table of Contents

 
yen. In such instances, if the value of that currency increases against the U.S. dollar during the term of your LIRNs, you may not obtain the benefit of that
increase, which you would have received if you had owned the securities included in the applicable index or indices. In contrast, in the case of Bear LIRNs, you may not receive the benefit of any decreases in the value of the applicable currency.

 You must rely on your own evaluation of the merits of an investment linked to the applicable Market Measure. In the ordinary course
of their businesses, our affiliates may express views on expected movements in a Market Measure or the components of a Market Measure, and may do so at present or in the future. These views or reports may be communicated to our clients and clients
of our affiliates. However, these views are subject to change from time to time. Moreover, other professionals who deal in markets relating to a Market Measure may at any time have significantly different views from those of our affiliates. For
these reasons, you are encouraged to derive information concerning a Market Measure or its components from multiple sources, and you should not rely on the views expressed by our affiliates. 
 In seeking to provide you with what we believe to be commercially reasonable terms for LIRNs while providing MLPF&S or any other selling agents
with compensation for its services, we have considered the costs of developing, hedging, and distributing LIRNs. In determining the economic terms of LIRNs, and consequently the potential return on LIRNs to you, a number of factors are taken
into account. Among these factors are certain costs associated with creating, hedging, and offering LIRNs. In structuring the economic terms of LIRNs, we seek to provide you with what we believe to be commercially reasonable terms and to provide
MLPF&S or any other applicable selling agent with compensation for its services in developing the securities. The price, if any, at which you could sell your LIRNs in a secondary market transaction is expected to be affected by the factors that
we considered in setting the economic terms of LIRNs, namely the selling agent commissions or underwriting discount paid in respect of LIRNs and other costs associated with LIRNs, and compensation for developing and hedging LIRNs. The quoted price
of any of our affiliates for LIRNs, or the listed price in the case of listed LIRNs, could be higher or lower than the Original Offering Price. 
 Assuming there is no change in the value of the Market Measure to which your LIRNs are linked and no change in market conditions or any other relevant factors, the price, if any, at which MLPF&S or another purchaser might be willing to
purchase your LIRNs in a secondary market transaction is expected to be lower than the Original Offering Price. This is due to, among other things, the fact that the Original Offering Price includes, and secondary market prices are likely to
exclude, selling agent commissions or underwriting discounts paid with respect to, and the developing and hedging costs associated with, LIRNs. 
 We cannot assure you that a trading market for your LIRNs will ever develop or be maintained. Unless otherwise set forth in the applicable term sheet, we will not list LIRNs on any securities exchange. Even if an application were
made to list your LIRNs, we cannot assure you that the application will be approved or that your LIRNs will be listed and, if listed, that they will remain listed for the entire term of LIRNs. We cannot predict how LIRNs will trade in the secondary
market, or whether that market will be liquid or illiquid. You should be aware that the listing of LIRNs on any securities exchange will not necessarily ensure that a trading market will develop for LIRNs, and if a trading market does develop, that
there will be liquidity in the trading market. 
 The development of a trading market for LIRNs will depend on our financial performance and
other factors, including changes in the value of the Market Measure. The number of potential buyers of your LIRNs in any secondary market may be limited. We anticipate that one or more of the selling agents will act as a market-maker for LIRNs that
it offers, but it is not required to do so. Any such selling agent may discontinue its market- 

  

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Table of Contents

 
making activities as to any series of LIRNs at any time. To the extent that a selling agent engages in any market-making activities, it may bid for or offer
any series of LIRNs. Any price at which the selling agent may bid for, offer, purchase, or sell any LIRNs may differ from the values determined by pricing models that may be used by that selling agent, whether as a result of dealer discounts,
mark-ups, or other transaction costs. These bids, offers, or completed transactions may affect the prices, if any, at which those LIRNs might otherwise trade in the market. 
 In addition, if at any time the applicable selling agent were to cease acting as a market-maker as to any series of LIRNs, it is likely that there would
be significantly less liquidity in the secondary market. In such a case, the price at which those LIRNs could be sold likely would be lower than if an active market existed. 
 The Redemption Amount will not be affected by all developments relating to the Market Measure. Changes in the value of the Market Measure during
the term of LIRNs before the applicable Maturity Valuation Period or the applicable calculation day will not be reflected in the calculation of the Redemption Amount. The calculation agent will calculate the Redemption Amount by comparing only the
Starting Value to the Ending Value or the Threshold Value, as applicable. No other values of the Market Measure will be taken into account. As a result, you may receive less than the Original Offering Price of your LIRNs, even if the value of the
Market Measure has increased (or in the case of Bear LIRNs, decreased) at certain times during their term before decreasing to a value below the Threshold Value (or, in the case of Bear LIRNs, increasing to a value above the Threshold Value) during
the Maturity Valuation Period or on the applicable calculation day. 
 If the Market Measure to which your LIRNs are linked is a Basket,
changes in the value of one or more of the Basket Components may be offset by changes in the value of one or more of the other Basket Components. The Market Measure of your LIRNs may consist of a Basket. In such a case, a change in the values of
one or more of the Basket Components may not correlate with changes in the values of one or more of the other Basket Components. The values of one or more Basket Components may increase, while the values of one or more of the other Basket Components
may not increase as much, or may even decrease. The opposite changes may occur in the case of Bear LIRNs. Therefore, in calculating the Market Measure as of any time, increases (or in the case of Bear LIRNs, decreases) in the value of one Basket
Component may be moderated, or wholly offset, by lesser increases or decreases (or in the case of Bear LIRNs, lesser decreases or increases) in the value of one or more of the other Basket Components. If the weightings of the applicable Basket
Components are not equal, changes in the values of the Basket Components which are more heavily weighted could have a disproportionately adverse impact upon your LIRNs. 
 The respective publishers of the Market Measures may adjust such Market Measure or any component of a Market Measure in a way that affects its value, and these respective publishers have no obligation to consider
your interests. The publishers of each Market Measure (each a “Market Measure Publisher”) can add, delete, or substitute the components included in a Market Measure or make other methodological changes that could change the value of
such Market Measure. You should realize that the changing of companies, commodities, or other components included in a Market Measure may affect such Market Measure, as a newly added component may perform significantly better or worse than the
component it replaces. Additionally, a Market Measure Publisher may alter, discontinue, or suspend calculation or dissemination of its Market Measure. Any of these actions could adversely affect the value of your LIRNs. The Market Measure Publishers
will have no obligation to consider your interests in calculating or revising the Market Measure. 
 Exchange rate movements may impact
the value of LIRNs. LIRNs will be denominated in U.S. dollars. If the value of any Market Measure component is traded in a 

  

 S-12 

Table of Contents

 
currency other than U.S. dollars and, for purposes of the Market Measure, is converted into U.S. dollars or another currency, then the Redemption Amount may
depend in part on the relevant exchange rates. If the value of the U.S. dollar increases (or, in the case of Bear LIRNs, decreases) against the currencies of the Market Measure or its components, the value of the Market Measure or its components may
be adversely affected and the Redemption Amount may be reduced. Unless otherwise stated in the applicable term sheet, the Redemption Amount will not be adjusted as a result of changes in the applicable exchange rates between those currencies and the
U.S. dollar. Exchange rate movements may be particularly impacted by existing and expected rates of inflation, existing and expected interest rate levels, the balance of payments, and the extent of governmental surpluses or deficits in the countries
relevant to the Market Measure and its components and the United States. All of these factors are in turn sensitive to the monetary, fiscal, and trade policies pursued by the governments of various countries and the United States and other countries
important to international trade and finance. 
 If you attempt to sell LIRNs prior to maturity, their market value, if any, will be
affected by various factors that interrelate in complex ways, and their market value may be less than their Original Offering Price. Unlike savings accounts, certificates of deposit, and other similar investment products, you have no right to
have your LIRNs redeemed prior to maturity. If you wish to liquidate your investment in LIRNs prior to maturity, your only option would be to sell them. At that time, there may be an illiquid market for your LIRNs or no market at all. Even if you
were able to sell your LIRNs, there are many factors outside of our control that may affect their market value, some of which, but not all, are stated below. Some of these factors are interrelated in complex ways. As a result, the effect of any one
factor may be offset or magnified by the effect of another factor. The following paragraphs describe the expected impact on the market value of LIRNs from a change in a specific factor, assuming all other conditions remain constant. 
  

	 	•	 	 Value of the Market Measure. Because the Redemption Amount is tied to the Ending Value, determined by reference to the values of the Market Measure during
the Maturity Valuation Period or on the applicable calculation day, we anticipate that the market value of LIRNs at any time will depend substantially on the value of the Market Measure. The value of the Market Measure will be influenced by complex
and interrelated political, economic, financial, and other factors that affect the capital markets generally, the markets on which the securities, commodities, or other assets of the Market Measure are traded, and the market segments of which these
assets are a part. Even if the value of the Market Measure increases (or in the case of Bear LIRNs, decreases) after the applicable pricing date, if you are able to sell your LIRNs before their maturity date, you may receive substantially less than
the amount that would be payable at maturity based on that value because of the anticipation that the value of the Market Measure will continue to fluctuate until the Ending Value is determined. If you sell your LIRNs when the value of the Market
Measure is less than, or not sufficiently above the applicable Starting Value (or in the case of Bear LIRNs is more than, or not sufficiently less than the Starting Value), then you may receive less than the Original Offering Price of your LIRNs. In
general, the market value of LIRNs will decrease as the value of the Market Measure decreases, and increase as the value of the Market Measure increases, while the reverse will be the case as to Bear LIRNs. However, as the value of the Market
Measure increases or decreases, the market value of LIRNs is not expected to increase or decrease at the same rate. In addition, if your LIRNs are Capped LIRNs, the Redemption Amount will not exceed the applicable Capped Value, and we do not expect
that the Capped LIRNs will trade in the secondary market above that Capped Value. 

  

	 	•	 	 Volatility of the Market Measure. Volatility is the term used to describe the size and frequency of market fluctuations. The volatility of the Market Measure
during the term 

  

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of your LIRNs may vary. In addition, an unsettled international environment and related uncertainties may result in greater market volatility, which may
continue over the term of LIRNs. Increases or decreases in the volatility of the Market Measure may have an adverse impact on the market value of LIRNs. 

  

	 	•	 	 Economic and Other Conditions Generally. The general economic conditions of the capital markets in the United States, as well as geopolitical conditions and
other financial, political, regulatory, and judicial events that affect stock markets and commodities markets generally, may affect the value of the Market Measure and the value of the LIRNs. If the Market Measure includes one or more indices or
commodities that have returns that are calculated based upon currencies other than the U.S. dollar or prices in one or more non-U.S. markets (a “non-U.S. Market Measure”), the value of your LIRNs may also be affected by similar events in
those markets. 

  

	 	•	 	 Interest Rates. We expect that changes in interest rates will affect the market value of LIRNs. In general, if U.S. interest rates increase, we expect that
the market value of LIRNs will decrease and, conversely, if U.S. interest rates decrease, we expect that the market value of LIRNs will increase. The level of prevailing interest rates also may affect the U.S. economy and any applicable market
outside of the United States, and, in turn, the value of the Market Measure. If the Market Measure is, or if any components of any Market Measure are, traded in currencies other than the U.S. dollar, the level of interest rates in the relevant
foreign countries may also affect their economies and in turn the value of the related Market Measure or component, and, thus, the market value of the LIRNs may be adversely affected. 

  

	 	•	 	 Dividend Yields. In general for equity-based Market Measures, if dividend yields on the securities included in the Market Measure increase, we anticipate
that the market value of LIRNs will decrease; conversely, if those dividend yields decrease, we anticipate that the market value of your LIRNs will increase. We expect that the opposite will be the case as to Bear LIRNs.

  

	 	•	 	 Exchange Rate Movements and Volatility. Foreign currency exchange rates represent the number of units of one currency (an “underlying currency”)
for which one unit of another currency can be exchanged (a “base currency”). An exchange rate increases when the value of an underlying currency decreases relative to the applicable base currency, and decreases when the value of the
underlying currency increases relative to that base currency. If the Market Measure of your LIRNs includes any non-U.S. Market Measure, changes in, and the volatility of, the exchange rates between the U.S. dollar and the relevant non-U.S. currency
or currencies could have a negative impact on the value of your LIRNs, and the Redemption Amount may depend in part on the relevant exchange rates. 

  

	 	•	 	 Relationship Between Exchange Rates and the Market Measure. The correlation between the relevant currency exchange rate and any applicable non-U.S. Market
Measure reflects the extent to which a percentage change in that exchange rate corresponds to a percentage change in the applicable non-U.S. Market Measure. If the Market Measure of your LIRNs includes a non-U.S. Market Measure, changes in these
correlations may have a negative impact on the value of your LIRNs. 

  

	 	•	 	 Time to Maturity. As the time remaining to maturity of your LIRNs decreases, we anticipate that the LIRNs may have a market value that may be different from
that which would be expected based on the levels of market interest rates and the Market Measure. This difference will reflect a time premium or discount due to expectations concerning the Market Measure during the period before the applicable
maturity date. 

  

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In general, as the time remaining to maturity decreases, the value of LIRNs will approach the amount that would be payable at maturity based on the
then-current value of the Market Measure. 

 In general, assuming all relevant factors are held constant, we anticipate
that the effect on the market value of any series of LIRNs based on a given change in most of the factors listed above will be less if it occurs later in the term of LIRNs than if it occurs earlier in their term. However, we expect that the effect
on the market value of the LIRNs of a given change in the value of the Market Measure will be greater if it occurs later in the term of the LIRNs than if it occurs earlier in the term of the LIRNs. 
 Payments on LIRNs are subject to our credit risk, and changes in our credit ratings are expected to affect the value of LIRNs. LIRNs are our
senior unsecured debt securities. As a result, your receipt of the Redemption Amount at maturity is dependent upon our ability to repay our obligations on the maturity date. This will be the case even if the value of the Market Measure increases
(or, in the case of Bear LIRNs, decreases) after the pricing date. No assurance can be given as to what our financial condition will be on the maturity date. 
 In addition, our credit ratings are an assessment by ratings agencies of our ability to pay our obligations. Consequently, our perceived creditworthiness and actual or anticipated changes in our credit ratings prior
to the maturity date may affect the value of LIRNs. However, because your return on LIRNs depends upon factors in addition to our ability to pay our obligations, such as the value of the applicable Market Measure, an improvement in our credit
ratings will not reduce the other investment risks related to LIRNs. 
 Purchases and sales by us and our affiliates may affect your
return. We and our affiliates may from time to time buy or sell the Market Measures, components of Market Measures, or futures or options contracts on Market Measures or components of the Market Measures for our own accounts for business
reasons. We also expect to enter into these transactions in connection with hedging our obligations under LIRNs. These transactions could affect the value of these components and, in turn, the value of a Market Measure in a manner that could be
adverse to your investment in LIRNs. Any purchases or sales by us, our affiliates or others on our behalf on or before the applicable pricing date may temporarily increase or decrease the value of a Market Measure or components of a Market Measure.
Temporary increases or decreases in the value of the Market Measure or the components of a Market Measure may also occur as a result of the purchasing activities of other market participants. Consequently, the values of such Market Measure or
component may change subsequent to the pricing date of an issue of LIRNs, affecting the value of the Market Measure and therefore the market value of LIRNs. 
 Our trading and hedging activities may create conflicts of interest with you. We or one or more of our affiliates, including MLPF&S, may engage in trading activities related to the Market Measure and the
securities, commodities, or other assets represented by the Market Measure that are not for your account or on your behalf. We and our affiliates from time to time may buy or sell the securities, commodities, or other assets represented by the
Market Measure or related futures or options contracts for our own accounts, for business reasons, or in connection with hedging our obligations under LIRNs. We also may issue, or our affiliates may underwrite, other financial instruments with
returns based upon the applicable Market Measure. These trading and underwriting activities could affect the Market Measure in a manner that would be adverse to your investment in LIRNs. 
 We expect to enter into arrangements to hedge the market risks associated with our obligation to pay the Redemption Amount due on the maturity date. We
may seek competitive terms in entering into the hedging arrangements for LIRNs, but are not required to do so, and we may enter into such hedging arrangements with one of our subsidiaries or affiliates. Such 

  

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hedging activity is expected to result in a profit to those engaging in the hedging activity, which could be more or less than initially expected, but which
could also result in a loss for the hedging counterparty. 
 We or our affiliates may enter into these transactions on or prior to each
pricing date, in order to hedge some or all of our anticipated obligations under LIRNs. This hedging activity could increase (or in the case of Bear LIRNs, decrease) the value of the Market Measure on the applicable pricing date. 
 In addition, from time to time during the term of each series of LIRNs and in connection with the determination of the Ending Value, we or our affiliates
may enter into additional hedging transactions or adjust or close out existing hedging transactions. We or our affiliates also may enter into hedging transactions relating to other notes or instruments that we issue, some of which may have returns
calculated in a manner related to that of a particular series of LIRNs. We or our affiliates will price these hedging transactions with the intent to realize a profit, considering the risks inherent in these hedging activities, whether the value of
LIRNs increases or decreases. However, these hedging activities may result in a profit that is more or less than initially expected, or could result in a loss. 
 These trading activities may present a conflict of interest between your interest in LIRNs and the interests we and our affiliates may have in our proprietary accounts, in facilitating transactions, including block
trades, for our other customers, and in accounts under our management. These trading activities, if they influence the Market Measure or secondary trading in your LIRNs, could be adverse to your interests as a beneficial owner of LIRNs. 

Our hedging activities may affect your return at maturity and the market value of LIRNs. We, or one or more of our affiliates, including
MLPF&S, may engage in hedging activities that may affect the value of the Market Measure. Accordingly, our hedging activities may increase or decrease the market value of your LIRNs during the Maturity Valuation Period or on the applicable
calculation day and the applicable Redemption Amount. In addition, we or one or more of our affiliates, including MLPF&S, may purchase or otherwise acquire a long or short position in LIRNs. We or any of our affiliates, including MLPF&S, may
hold or resell LIRNs. Although we have no reason to believe that any of those activities will have a material impact on the Market Measure, we cannot assure you that these activities will not affect the value of the Market Measure and the market
value of your LIRNs prior to maturity or the Redemption Amount. 
 There may be potential conflicts of interest involving the calculation
agent. We have the right to appoint and remove the calculation agent. One of our affiliates will be the calculation agent for LIRNs and, as such, will determine the Starting Value, the Ending Value and the Redemption Amount. Under some
circumstances, these duties could result in a conflict of interest between our affiliate’s status as our affiliate and its responsibilities as calculation agent. These conflicts could occur, for instance, in connection with the calculation
agent’s determination as to whether a “Market Disruption Event” has occurred, or in connection with judgments that it would be required to make if the publication of an index is discontinued. See the sections entitled
“Description of LIRNs—Market Disruption Events,” “—Adjustments to a Market Measure,” and “—Discontinuance of a Market Measure.” The calculation agent will be required to carry out its duties in good faith
and using its reasonable judgment. However, because we expect to control the calculation agent, potential conflicts of interest could arise. 
 The U.S. federal income tax consequences of LIRNs are uncertain, and may be adverse to a holder of LIRNs. No statutory, judicial, or administrative authority directly addresses the characterization of LIRNs or securities similar to
LIRNs for U.S. federal income tax purposes. As a result, significant aspects of the U.S. federal income tax consequences of an 

  

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investment in LIRNs are not certain. Under the terms of LIRNs, you will have agreed with us to treat LIRNs as a single financial contract, as described under
“U.S. Federal Income Tax Summary—General.” If the Internal Revenue Service (the “IRS”) were successful in asserting an alternative characterization for LIRNs, the timing and character of income or loss with respect to LIRNs
may differ. No ruling will be requested from the IRS with respect to LIRNs and no assurance can be given that the IRS will agree with the statements made in the section entitled “U.S. Federal Income Tax Summary.” 
 You are urged to consult with your own tax advisor regarding all aspects of the U.S. federal income tax consequences of investing in LIRNs. 

Risks Relating to Equity-Based Market Measures 
 If the Market Measure to which your LIRNs are linked is equity-based, you will have no rights as a securityholder, you will have no rights to receive any of the securities represented by the Market Measure, and you
will not be entitled to dividends or other distributions by the issuers of these securities. LIRNs are our debt securities. They are not equity instruments, shares of stock, or securities of any other issuer. Investing in LIRNs will not make you
a holder of any of the securities represented by the Market Measure. You will not have any voting rights, any rights to receive dividends or other distributions, or any other rights with respect to those securities. As a result, the return on your
LIRNs may not reflect the return you would realize if you actually owned those securities and received the dividends paid or other distributions made in connection with them. This is because the calculation agent will calculate the Redemption Amount
by reference to the Ending Value. Additionally, the values of certain equity-based indices reflect only the prices of the common stocks included in the Market Measure or its components and do not take into consideration the value of dividends paid
on those stocks. Your LIRNs will be paid in cash and you have no right to receive delivery of any of these securities. 
 If the Market
Measure to which your LIRNs are linked includes stocks traded on foreign exchanges, your return may be affected by factors affecting international securities markets. Equity-based Market Measures that include stocks traded on foreign exchanges
are computed by reference to the value of the equity securities of companies listed on a foreign exchange or exchanges. Therefore, the return on your LIRNs will be affected by factors affecting the value of securities in the relevant non-U.S.
markets. The relevant foreign securities markets may be more volatile than U.S. or other securities markets and may be affected by market developments in different ways than U.S. or other securities markets. Direct or indirect government
intervention to stabilize a particular securities market and cross-shareholdings in companies in the relevant foreign markets may affect prices and the volume of trading in those markets. Also, there is generally less publicly available information
about foreign companies than about U.S. companies that are subject to the reporting requirements of the SEC. Additionally, accounting, auditing, and financial reporting standards and requirements in foreign countries differ from those applicable to
U.S. reporting companies. 
 The prices and performance of securities of companies in foreign countries may be affected by political,
economic, financial, and social factors in those regions. In addition, recent or future changes in government, economic, and fiscal policies in the relevant jurisdictions, the possible imposition of, or changes in, currency exchange laws, or other
laws or restrictions, and possible fluctuations in the rate of exchange between currencies, are factors that could negatively affect the relevant securities markets. Moreover, the relevant foreign economies may differ favorably or unfavorably from
the U.S. economy in economic factors such as growth of gross national product, rate of inflation, capital reinvestment, resources, and self-sufficiency. 
 Unless otherwise set forth in the applicable term sheet, we do not control any company included in an equity-based Market Measure and are not responsible for any 

  

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disclosure made by any other company. We currently, or in the future, may engage in business with companies represented by an equity-based Market
Measure. However, neither we nor any of our affiliates, including MLPF&S, have the ability to control the actions of any of these companies or assume any responsibility for the adequacy or accuracy of any publicly available information about any
of these companies, unless (and only to the extent that) our securities or the securities of our affiliates are represented by that Market Measure. In addition, unless otherwise set forth in the applicable term sheet, neither we nor any of our
affiliates are responsible for the calculation of any index represented by a Market Measure. You should make your own investigation into the Market Measure and the companies represented by the applicable constituent securities. 
 Unless otherwise set forth in the applicable term sheet, none of the Market Measure Publishers, their affiliates, nor any company included in the Market
Measure will be involved in any offering of LIRNs or will have any obligation of any sort with respect to LIRNs. As a result, none of those companies will have any obligation to take your interests as holders of LIRNs into consideration for any
reason, including taking any corporate actions that might affect the value of the securities represented by the Market Measure or the value of LIRNs. 
 Our business activities relating to the companies represented by an equity-based Market Measure may create conflicts of interest with you. We and our affiliates, including MLPF&S, at the time of any
offering of LIRNs or in the future, may engage in business with the companies represented by an equity-based Market Measure, including making loans to, equity investments in, or providing investment banking, asset management, or other services to
those companies, their affiliates, and their competitors. In connection with these activities, we may receive information about those companies that we will not divulge to you or other third parties. One or more of our affiliates have published, and
in the future may publish, research reports on one or more of these companies. This research is modified from time to time without notice and may express opinions or provide recommendations that are inconsistent with purchasing or holding your
LIRNs. Any of these activities may affect the market value of your LIRNs. We, or any of our affiliates, do not make any representation to any purchasers of the LIRNs regarding any matters whatsoever relating to the issuers of the stocks included in
an equity-based Market Measure. Any prospective purchaser of the LIRNs should undertake an independent investigation of the companies included in an equity-based Market Measure as in its judgment is appropriate to make an informed decision regarding
an investment in the LIRNs. The composition of those companies does not reflect any investment recommendations from us or our affiliates. 
 Risks Relating to Commodity-Based Market Measures 
 If the Market Measure to which your LIRNs are linked is
commodity-based, ownership of LIRNs will not entitle you to any rights with respect to any futures contracts or commodities included in or tracked by the Market Measure. If the Market Measure to which your LIRNs are linked is commodity-based,
you will not own or have any beneficial or other legal interest in, and will not be entitled to any rights with respect to, any of the commodities or commodity futures included in such Market Measure. We will not invest in any of the commodities or
commodity futures contracts included in such Market Measure on behalf or for the benefit of holders of LIRNs. 
 The prices of commodities
included in a commodity-based Market Measure may change unpredictably, affecting the value of your LIRNs in unforeseeable ways. Trading in commodities is speculative and can be extremely volatile. Market prices of the commodities may fluctuate
rapidly based on numerous factors, including: changes in supply and demand relationships; weather; agriculture; trade; fiscal, monetary, and exchange control programs; domestic and foreign political and economic events and policies; disease;
technological developments; and changes in interest rates. These factors may affect the value of a 

  

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commodity-based Market Measure and the value of LIRNs in varying ways, and different factors may cause the value of the commodities, and the volatilities of
their prices, to move in inconsistent directions at inconsistent rates. Additionally, certain commodity-based Market Measures may be concentrated in only a few, or even a single industry (e.g., energy). These Market Measures are likely to be
more volatile than those comprised of a variety of commodities. 
 With respect to a commodity-based Market Measure, suspension or
disruptions of market trading in the applicable commodities and related futures markets may adversely affect the value of LIRNs. The commodity markets are subject to disruptions due to various factors, including the lack of liquidity in the
markets and government regulation and intervention. In addition, U.S. futures exchanges and some foreign exchanges have regulations that limit the amount of fluctuation in futures contract prices that may occur during a single business day. These
limits are generally referred to as “daily price fluctuation limits” and the maximum or minimum price of a contract on any given day as a result of these limits is referred to as a “limit price.” Once the limit price has been
reached in a particular contract, no trades may be made at a different price. Limit prices have the effect of precluding trading in a particular contract or forcing the liquidation of contracts at disadvantageous times or prices. There can be no
assurance that any such disruption or any other force majeure (such as an act of God, fire, flood, severe weather conditions, act of governmental authority, labor difficulty, etc.) will not have an adverse affect on the value of or trading in the
Market Measure, or the manner in which it is calculated, and therefore, the value of LIRNs. 
 LIRNs linked to a commodity-based Market
Measure will not be regulated by the U.S. Commodity Futures Trading Commission (the “CFTC”). Unlike an investment in the LIRNs linked to a commodity-based Market Measure, an investment in a collective investment vehicle that invests in
futures contracts on behalf of its participants may be regulated as a commodity pool and its operator may be required to be registered with and regulated by the CFTC as a “commodity pool operator” (a “CPO”). Because LIRNs linked
to a commodity-based Market Measure will not be interests in a commodity pool, such LIRNs will not be regulated by the CFTC as a commodity pool, we will not be registered with the CFTC as a CPO and you will not benefit from the CFTC’s or any
non-U.S. regulatory authority’s regulatory protections afforded to persons who trade in futures contracts or who invest in regulated commodity pools. LIRNs linked to a commodity-based Market Measure will not constitute investments by you or by
us on your behalf in futures contracts traded on regulated futures exchanges, which may only be transacted through a person registered with the CFTC as a “futures commission merchant” (“FCM”). We are not registered with the CFTC
as an FCM and you will not benefit from the CFTC’s or any other non-U.S. regulatory authority’s regulatory protections afforded to persons who trade in futures contracts on a regulated futures exchange through a registered FCM. 

A commodity-based Market Measure may include futures contracts on foreign exchanges that are less regulated than U.S. markets. A
commodity-based Market Measure may include futures contracts on physical commodities on exchanges located outside the U.S. The regulations of the CFTC do not apply to trading on foreign exchanges, and trading on foreign exchanges may involve
different and greater risks than trading on U.S. exchanges. Certain foreign markets may be more susceptible to disruption than U.S. exchanges due to the lack of a government-regulated clearinghouse system. Trading on foreign exchanges also involves
certain other risks that are not applicable to trading on U.S. exchanges. Those risks include: (a) exchange rate risk relative to the U.S. dollar; (b) exchange controls; (c) expropriation; (d) burdensome or confiscatory taxation;
and (e) moratoriums, and political or diplomatic events. It will also likely be more costly and difficult for participants in those markets to enforce the laws or regulations of a foreign country or exchange, and it is possible that the foreign
country or exchange may not have laws or regulations which adequately protect the rights and interests of investors in the Market Measure. 
  

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 Other Risk Factors Relating to the Applicable Market Measure 
 The applicable term sheet or index supplement may set forth additional risk factors as to the Market Measure that you should review prior to purchasing
LIRNs. 
  

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 USE OF PROCEEDS 
 We will use the net proceeds we receive from each sale of LIRNs for the purposes described in the accompanying prospectus under “Use of
Proceeds.” In addition, we expect that we or our affiliates may use a portion of the net proceeds to hedge our obligations under LIRNs. 
  

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 DESCRIPTION OF LIRNS 
 General 
 Each series of LIRNs will be part of a
series of medium-term notes entitled “Medium-Term Notes, Series L” that will be issued under the Senior Indenture, as amended and supplemented from time to time. The Senior Indenture is described more fully in the prospectus and prospectus
supplement. The following description of LIRNs supplements the description of the general terms and provisions of the notes and debt securities set forth under the headings “Description of the Notes” in the prospectus supplement and
“Description of Debt Securities” in the prospectus. These documents should be read in connection with the applicable term sheet. 
 The aggregate principal amount of each series of LIRNs will be set forth in the applicable term sheet. The LIRNs will mature on the date set forth in the applicable term sheet. 
 We will not pay interest on LIRNs. 
 LIRNs
are not principal protected. 
 Prior to the applicable maturity date, LIRNs are not redeemable by us or repayable at the option of any
holder. LIRNs are not subject to any sinking fund. 
 We will issue LIRNs in the denominations of whole units, each with the Original
Offering Price set forth in the applicable term sheet. The CUSIP number for each series of LIRNs will be set forth in the applicable term sheet. You may transfer LIRNs only in whole units. 
 Payment at Maturity 
 At maturity, subject to our
credit risk as issuer of LIRNs, and unless the applicable term sheet provides otherwise, you will receive a Redemption Amount per unit of LIRNs that you hold, denominated in U.S. dollars. In no event will the Redemption Amount be less than zero. The
Redemption Amount will be calculated as follows: 
  

	 	•	 	 If the Ending Value is greater than the Starting Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price +	 	(  
	 	Original Offering Price x	 	Participation Rate x	 	(  
	 	Ending Value - Starting Value	 	)  
	 	 )
  
	 	
	 	 	 	 	 	 	Starting Value	 	 	 

 If provided for in the applicable term sheet, your LIRNs may be Capped LIRNs, in which case, the
Redemption Amount will not exceed a Capped Value determined on the pricing date and set forth in the applicable term sheet. 
  

	 	•	 	 If the Ending Value is equal to or less than the Starting Value but is equal to or greater than the Threshold Value, then the Redemption Amount will equal the
Original Offering Price per LIRN. 

  

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	 	•	 	 If the Ending Value is less than the Threshold Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price -	 	(  
	 	Original Offering Price x	 	(  
	 	Threshold Value - Ending Value	 	)  
	 	x Downside Leverage Factor	 	)  
	 	
	 	 	 	 	 	Starting Value	 	 	 	 	

 In the case of Bear LIRNs, the Redemption Amount will be calculated as follows: 
  

	 	•	 	 If the Ending Value is less than the Starting Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price +	 	(  
	 	Original Offering Price x	 	Participation Rate x	 	(  
	 	Starting Value - Ending Value	 	)  
	 	 )
  
	 	
	 	 	 	 	 	 	Starting Value	 	 	 

  

	 	•	 	 If the Ending Value is equal to or greater than the Starting Value but is equal to or less than the Threshold Value, then the Redemption Amount will equal the
Original Offering Price per Bear LIRN. 

  

	 	•	 	 If the Ending Value is greater than the Threshold Value, then the Redemption Amount will equal: 

  

																			
		 	Original Offering Price -	 	(  
	 	Original Offering Price x	 	(  
	 	Ending Value - Threshold Value	 	)  
	 	x Upside Leverage Factor	 	)  
	 	
	 	 	 	 	 	Starting Value	 	 	 	 	

 The “Threshold Value” is a value of the Market Measure that reflects a specified
percentage of the Starting Value (less than or equal to 100% in the case of LIRNs and greater than or equal to 100% in the case of Bear LIRNs). The Threshold Value will be determined on the pricing date and set forth in the applicable term sheet.
The Redemption Amount per LIRN will be less than the Original Offering Price if the Ending Value is less than (or, in the case of Bear LIRNs, greater than) the Threshold Value. As a result, if the Threshold Value is equal to 100% of the Starting
Value, then the Redemption Amount for LIRNs will be less than the Original Offering Price if there is any decrease (or, in the case of Bear LIRNs, any increase) in the value of the Market Measure from the Starting Value to the Ending Value.

 The “Participation Rate” represents the extent to which the upside performance of the LIRNs is affected by the upside
performance (or, in the case of Bear LIRNs, the downside performance) of the Market Measure. The Participation Rate may be less than, equal to, or greater than 100%. The Participation Rate applicable to your LIRNs will be set forth in the applicable
term sheet. If the applicable term sheet specifies that the Participation Rate is 100%, your participation in any upside performance of the Market Measure (or, in the case of Bear LIRNs, the downside performance) will be unleveraged. 
 The “Downside Leverage Factor” (or, in the case of Bear LIRNs, the “Upside Leverage Factor”) represents the extent to which the
downside performance of the LIRNs is affected by the downside performance (or, in the case of Bear LIRNs, the upside performance) of the Market Measure beyond the Threshold Value, and will be set forth in the applicable term sheet. The Downside
Leverage Factor (or, in the case of Bear LIRNs, the Upside Leverage Factor) may equal 100%, in which case the downside (or, in the case of Bear LIRNs, the upside) will be unleveraged. Depending on the Downside Leverage Factor (or, in the case of
Bear LIRNs, the Upside Leverage Factor), you may lose all or a substantial portion of the amount that you invested to purchase LIRNs, however, in no event will you lose more than your initial investment. 
  

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 The Starting Value and the Ending Value 
 Starting Value—Equity-Based Market Measures 
 If the Market Measure to which your LIRNs are linked is equity-based, unless otherwise specified in the applicable term sheet, the “Starting Value” will equal the closing value of the Market Measure on the
pricing date, as determined by the calculation agent. 
 Starting Value—Commodity-Based Market Measures 
 If the Market Measure to which your LIRNs are linked is commodity-based, unless otherwise specified in the applicable term sheet, the “Starting
Value” will equal the closing value of the Market Measure on the pricing date, as determined by the calculation agent, provided that if a Market Disruption Event occurs on that date, the Starting Value will be determined according to the
Starting Value Commodity-Based Market Measure Disruption Calculation (as described below). See “—Market Disruption Events—Commodity-Based Market Measures.” 
 Starting Value—Basket Market Measures 
 If the Market Measure consists of a Basket, the “Starting Value” will be equal to 100. See “—Basket Market Measures.” 
 Ending Value—Equity-Based Market Measures 
 If the Market Measure to which your LIRNs are linked
is equity-based, unless otherwise specified in the applicable term sheet, the “Ending Value” will be determined by the calculation agent and will equal the average of the closing values of the Market Measure determined on each of a certain
number of calculation days, which may be one or more, during the Maturity Valuation Period. The timing and exact number of calculation days in the Maturity Valuation Period will be set forth in the applicable term sheet. If (i) a Market
Disruption Event occurs on a scheduled calculation day during the Maturity Valuation Period or (ii) any scheduled calculation day is determined by the calculation agent not to be a Market Measure Business Day by reason of an extraordinary
event, occurrence, declaration, or otherwise (any such day in either (i) or (ii) being a “non-calculation day”), the calculation agent will determine the value of the Market Measure for such non-calculation day, and as a result,
the Ending Value, as follows: 
  

	 	•	 	 The closing value of the Market Measure for the applicable non-calculation day will be deemed to be the closing value of the Market Measure for the next calculation
day that occurs during the Maturity Valuation Period. For example, if the first and second scheduled calculation days during the Maturity Valuation Period are non-calculation days, then the closing value of the Market Measure for the next
calculation day will also be deemed to be the closing value for the Market Measure on the first and second scheduled calculation days during the Maturity Valuation Period. If no further calculation days occur after a non-calculation day, then the
closing value of the Market Measure for such non-calculation day, and each following non-calculation day during the Maturity Valuation Period will be determined (or, if not determinable, estimated) by the calculation agent on the last scheduled
calculation day in the Maturity Valuation Period, regardless of the occurrence of a Market Disruption Event on that last scheduled calculation day, in a manner which the calculation agent considers commercially reasonable under the circumstances; or

  

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	 	•	 	 If every scheduled calculation day during the Maturity Valuation Period is a non-calculation day, then the Ending Value will equal the closing value of the Market
Measure determined (or, if not determinable, estimated) by the calculation agent in a manner which the calculation agent considers commercially reasonable under the circumstances on the last scheduled calculation day during the Maturity Valuation
Period, regardless of the occurrence of a Market Disruption Event on that last scheduled calculation day. 

 See
“—Market Disruption Events—Equity-Based Market Measures.” 
 Ending Value—Commodity-Based Market Measures

 If the Market Measure to which your LIRNs are linked is commodity-based, unless otherwise specified in the applicable term sheet, the
“Ending Value” will equal the closing value of the Market Measure on a specified calculation day, provided that if a Market Disruption Event occurs on that date the Market Measure value used to calculate the Ending Value will be determined
according to the Ending Value Commodity-Based Market Measure Disruption Calculation (as described below). If the calculation agent determines that the scheduled calculation day is not a Market Measure Business Day by reason of an extraordinary
event, occurrence, declaration, or otherwise, the Ending Value will equal the closing value of the Market Measure on the next Market Measure Business Day, provided that if a Market Disruption Event occurs on that date, the Market Measure value used
to calculate the Ending Value will be determined according to the Ending Value Commodity-Based Market Measure Disruption Calculation described below. If no such days occur prior to the second scheduled Market Measure Business Day before the maturity
date of the LIRNs, the Ending Value will be determined (or, if not determinable, estimated) by the calculation agent on the second scheduled Market Measure Business Day before the maturity date of the LIRNs in a manner which the calculation agent
considers commercially reasonable under the circumstances. 
 For LIRNs linked to a commodity-based Market Measure, in the event a Market
Disruption Event has occurred on the calculation day, the Ending Value will be determined by the calculation agent using the following “Ending Value Commodity-Based Market Measure Disruption Calculation”: 
  

	 	(1)	With respect to each Market Measure component which is not affected by the Market Disruption Event, the Ending Value will be based on the exchange published settlement price on the
calculation day. 

  

	 	(2)	With respect to each Market Measure component which is affected by the Market Disruption Event, the Ending Value will be based on the exchange published settlement price of each
such contract on the first Market Measure Business Day following the calculation day on which no Market Disruption Event occurs with respect to such contract. In the event that a Market Disruption Event occurs with respect to any contract included
in the Market Measure on the calculation day and on each day to and including the second scheduled Market Measure Business Day prior to maturity, the price of such contract used to determine the Ending Value will be estimated by the calculation
agent in a manner which the calculation agent considers commercially reasonable under the circumstances. 

  

	 	(3)	 The calculation agent shall determine the Ending Value by reference to the exchange published settlement prices or other prices determined in clauses (1) and (2)
above, using the then current method for calculating the Market Measure. The exchange on which a futures contract included in the Market Measure is traded for purposes of the foregoing definition means the exchange used to value such 

  

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futures contract for the calculation of the Market Measure. 

 Other Market Measures 
 If the Market Measure is not equity-based or commodity-based, or is a
combination of the two, the applicable term sheet will set forth the manner by which the Starting Value and the Ending Value will be determined. 
 Market
Disruption Events 
 Equity-Based Market Measures 
 For equity-based Market Measures, “Market Disruption Event” means one or more of the following events, as determined by the calculation agent: 
  

	 	(A)	the suspension of or material limitation on trading, in each case, for more than two hours of trading, or during the one-half hour period preceding the close of trading, on the
primary exchange where component stocks of a Market Measure trade as determined by the calculation agent (without taking into account any extended or after-hours trading session), in 20% or more of the stocks which then comprise Market Measure or
any successor market measure; and 

  

	 	(B)	the suspension of or material limitation on trading, in each case, for more than two hours of trading, or during the one-half hour period preceding the close of trading, on the
primary exchange that trades options contracts or futures contracts related to the Market Measure as determined by the calculation agent (without taking into account any extended or after-hours trading session), whether by reason of movements in
price otherwise exceeding levels permitted by the relevant exchange or otherwise, in options contracts or futures contracts related to the Market Measure, or any successor market measure. 

 For the purpose of determining whether a Market Disruption Event has occurred: 
  

	 	(1)	a limitation on the hours in a trading day and/or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular
business hours of the relevant exchange; 

  

	 	(2)	a decision to permanently discontinue trading in the relevant futures or options contracts related to the Market Measure, or any successor market measure, will not constitute a
Market Disruption Event; 

  

	 	(3)	a suspension in trading in a futures or options contract on the Market Measure, or any successor market measure, by a major securities market by reason of (a) a price change
violating limits set by that securities market, (b) an imbalance of orders relating to those contracts, or (c) a disparity in bid and ask quotes relating to those contracts will constitute a suspension of or material limitation on trading in futures
or options contracts related to the Market Measure; 

  

	 	(4)	a suspension of or material limitation on trading on the relevant exchange will not include any time when that exchange is closed for trading under ordinary circumstances; and

  

	 	(5)	 if applicable to equity-based Market Measures with component stocks listed on the NYSE, for the purpose of clause (A) above, any limitations on trading during

  

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significant market fluctuations under NYSE Rule 80B, or any applicable rule or regulation enacted or promulgated by the NYSE or any other self regulatory
organization or the SEC of similar scope as determined by the calculation agent, will be considered “material.” 

 Commodity-Based Market Measures 
 For commodity-based Market Measures, “Market Disruption Event” means one or more
of the following events, as determined by the calculation agent: 
  

	 	(1)	A material limitation, suspension, or disruption of trading in one or more Market Measure components which results in a failure by the exchange on which each applicable Market
Measure component is traded to report an exchange published settlement price for such contract on the day on which such event occurs or any succeeding day on which it continues. 

  

	 	(2)	The exchange published settlement price for any Market Measure component is a “limit price,” which means that the exchange published settlement price for such contract for
a day has increased or decreased from the previous day’s exchange published settlement price by the maximum amount permitted under applicable exchange rules. 

  

	 	(3)	Failure by the applicable exchange or other price source to announce or publish the exchange published settlement price for any Market Measure component. 

 

	 	(4)	A suspension of trading in one or more Market Measure components, for which the trading does not resume at least 10 minutes prior to the scheduled or rescheduled closing time.

  

	 	(5)	Any other event, if the calculation agent determines in its sole discretion that the event materially interferes with our ability or the ability of any of our affiliates to unwind
all or a material portion of a hedge that we or our affiliates have effected or may effect as to the applicable LIRNs. 

 For
LIRNs linked to a commodity-based Market Measure, in the event a Market Disruption Event has occurred on the pricing day, the calculation agent will establish an initial value for the Market Measure (the “Initial Market Measure Value”) and
the “Starting Value” for that Market Measure using the following “Starting Value Commodity-Based Market Measure Disruption Calculation”: 
  

	 	(1)	With respect to each commodity or futures contract, the value of which is tracked by a Market Measure component and which is not affected by the Market Disruption Event (an
“Unaffected Commodity Component”), both the Initial Market Measure Value and the Starting Value will be based on the exchange published settlement price of such Unaffected Commodity Component on the pricing date. 

 

	 	(2)	With respect to each commodity or futures contract, the value of which is tracked by a Market Measure component and which is affected by a Market Disruption Event (an “Affected
Commodity Component”): 

  

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	 	a.	the calculation agent will establish the Initial Market Measure Value on the pricing date based on (i) the above-referenced settlement price of each Unaffected Commodity Component
and (ii) the last exchange published settlement price for each Affected Commodity Component on the pricing date; 

  

	 	b.	the calculation agent will adjust the Initial Market Measure Value for purposes of determining the Starting Value based on the exchange published settlement price of each Affected
Commodity Component on the first Market Measure Business Day following the pricing date on which no Market Disruption Event occurs with respect to such Affected Commodity Component. In the event that a Market Disruption Event occurs with respect to
any Affected Commodity Component on each Market Measure Business Day to, and including, the third scheduled Market Measure Business Day following the pricing date, the calculation agent (not later than the fourth scheduled Market Measure Business
Day) will estimate the price of such Affected Commodity Component used to determine the Starting Value in a manner that the calculation agent considers commercially reasonable under the circumstances; and 

  

	 	c.	the final term sheet will set forth the Initial Market Measure Value, a brief statement of the facts relating to the establishment of the Initial Market Measure Value (including a
description of the relevant Market Disruption Event(s)), and the Starting Value. 

  

	 	(3)	The calculation agent will determine the Market Measure Value by reference to the exchange published settlement prices or other prices determined in clauses (1) and (2) above using
the then current method for calculating the Market Measure. The exchange on which a futures contract included in the Market Measure is traded for purposes of the above definition means the exchange used to value such futures contract for the
calculation of the Market Measure. 

 Other Market Measures 
 If the Market Measure is not equity-based or commodity-based, or is a combination of the two, the applicable term sheet or index supplement will set
forth the definition of “Market Disruption Event,” and include additional related terms. 
 Determinations by the Calculation
Agent 
 All determinations made by the calculation agent, absent a determination of a manifest error, will be conclusive for all
purposes and binding on us and the holders and beneficial owners of LIRNs. 
 Adjustments to a Market Measure 
 If at any time a Market Measure Publisher makes a material change in the formula for or the method of calculating a Market Measure, or Market Measure
component in the case of a Basket, or in any other way materially modifies that Market Measure so that the Market Measure does not, in the opinion of the calculation agent, fairly represent the value of the Market Measure had those changes or
modifications not been made, then, from and after that time, the calculation agent will, at the close of business in New York, New York, on each date that the closing value of the Market Measure is to be calculated, make any adjustments as, in the
good faith judgment of the calculation agent, may be necessary in order to arrive at a calculation of a value of the applicable Market Measure as if those changes or modifications had not been made, and calculate the closing value with reference to
the Market Measure, as so adjusted. Accordingly, if the method of calculating a Market Measure is modified so that the 

  

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value of the Market Measure is a fraction or a multiple of what it would have been if it had not been modified, then the calculation agent will adjust the
Market Measure in order to arrive at a value of the Market Measure as if it had not been modified. 
 Discontinuance of a Market Measure 

If a Market Measure Publisher discontinues publication of a Market Measure to which an issue of LIRNs is linked, or one or more components of a Market
Measure in the case of a Basket, and such Market Measure Publisher or another entity publishes a successor or substitute market measure that the calculation agent determines, in its sole discretion, to be comparable to that Market Measure (a
“successor market measure”), then, upon the calculation agent’s notification of that determination to the trustee and to us, the calculation agent will substitute the successor market measure as calculated by the relevant Market
Measure Publisher or any other entity and calculate the Ending Value as described above under “—Payment at Maturity.” Upon any selection by the calculation agent of a successor market measure, we will cause notice to be given to
holders of the LIRNs. 
 In the event that a Market Measure Publisher discontinues publication of a Market Measure and: 
  

	 	•	 	 the calculation agent does not select a successor market measure; or 

  

	 	•	 	 the successor market measure is not published on any of the calculation days or the calculation day, as applicable, 

 the calculation agent will compute a substitute value for the Market Measure in accordance with the procedures last used to calculate the Market Measure before any
discontinuance. If a successor market measure is selected or the calculation agent calculates a value as a substitute for a Market Measure as described below, the successor market measure or value will be used as a substitute for that Market Measure
for all purposes, including the purpose of determining whether a Market Disruption Event exists. 
 If a Market Measure Publisher
discontinues publication of the Market Measure before the Maturity Valuation Period or calculation day, as applicable, and the calculation agent determines that no successor market measure is available at that time, then on each day that would have
been a calculation day, until the earlier to occur of: 
  

	 	•	 	 the determination of the Ending Value; and 

  

	 	•	 	 a determination by the calculation agent that a successor market measure is available, 

 the calculation agent will determine the value that would be used in computing the Redemption Amount as described in the preceding paragraph as if that day were a
calculation day. The calculation agent will make available to holders of the LIRNs information as to each such value; such information may be disseminated by means of Bloomberg, Reuters, a website, or any other means selected by the calculation
agent in its reasonable discretion. 
 Notwithstanding these alternative arrangements, discontinuance of the publication of the specific
Market Measure to which your LIRNs are linked may adversely affect trading in the LIRNs. 
  

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 Basket Market Measures 
 If the Market Measure to which your LIRNs are linked is a Basket, the Basket Components will be set forth in the applicable term sheet. We will assign each Basket Component an Initial Component Weight so that each
Basket Component represents a percentage of the Starting Value of the Basket on the applicable pricing date. We may assign the Basket Components equal Initial Component Weights, or we may assign the Basket Components unequal Initial Component
Weights. The Initial Component Weight for each Basket Component will be set forth in the applicable term sheet. 
 Determination of the
Component Ratio for Each Basket Component 
 We will set a fixed factor (the “Component Ratio”) for each Basket Component,
based upon the weighting of that Basket Component. The Component Ratio for each Basket Component will be calculated on the pricing date and will equal: 
  

	 	•	 	 the Initial Component Weight (expressed as a percentage) for that Basket Component, multiplied by 100; divided by 

  

	 	•	 	 the closing value of that Basket Component on the pricing date. 

 Each Component Ratio will be rounded to eight decimal places. 
 The Component Ratios will be calculated in
this way so that the Starting Value of the Basket will equal 100 on the pricing date. The Component Ratios will not be revised subsequent to their determination on the pricing date, except that the calculation agent may in its good faith judgment
adjust the Component Ratio of any Basket Component in the event that Basket Component is materially changed or modified in a manner that does not, in the opinion of the calculation agent, fairly represent the value of that Basket Component had those
material changes or modifications not been made. 
 Computation of the Basket 
 The calculation agent will calculate the value of the Basket by summing the products of the closing value for each Basket Component on a calculation day
and the Component Ratio applicable to each Basket Component. The value of the Basket will vary based on the increase or decrease in the value of each Basket Component. Any increase in the value of a Basket Component (assuming no change in the value
of the other Basket Component or Basket Components) will result in an increase in the value of the Basket. Conversely, any decrease in the value of a Basket Component (assuming no change in the value of the other Basket Component or Basket
Components) will result in a decrease in the value of the Basket. 
 The following tables are for illustration purposes only, and do not
reflect the actual composition, Initial Component Weights, or Component Ratios, which will be set forth in the applicable term sheet. 
  

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 Example 1: The hypothetical Basket Components are Index ABC and Index XYZ, each weighted equally
on a hypothetical pricing date: 
  

									
	 Basket Component
	  	Initial
Component
Weighting	 	Hypothetical
Closing
Value(1)	  	Hypothetical
Component
Ratio(2)	  	Initial Basket
Value
Contribution
					
	 Index ABC
	  	50.00%	 	    500.00	  	0.10000000	  	  50.00
					
	 Index XYZ
	  	50.00%	 	3,500.00	  	0.01428571	  	  50.00
					
	                         Starting Value
	  		 		  		  	100.00

 Example 2: The hypothetical Basket Components are Index ABC, Index XYZ, and Index RST, with
their initial weightings being 50.00%, 25.00% and 25.00%, respectively, on a hypothetical pricing date: 
  

									
	 Basket Component
	  	Initial
Component
Weighting	 	Hypothetical
Closing
Value(1)	  	Hypothetical
Component
Ratio(2)	  	Initial Basket
Value
Contribution
					
	 Index ABC
	  	50.00%	 	    500.00	  	0.10000000	  	  50.00
					
	 Index XYZ
	  	25.00%	 	2,420.00	  	0.01033058	  	  25.00
					
	 Index RST
	  	25.00%	 	1,014.00	  	0.02465483	  	  25.00
					
	                         Starting Value
	  		 		  		  	100.00

  
  
  

	(1)	This column sets forth the hypothetical closing value of each Basket Component on the hypothetical pricing date. 

  

	(2)	The hypothetical Component Ratio equals the Initial Component Weight (expressed as a percentage) of the Basket Component multiplied by 100, and then divided by the closing
value of that Basket Component Index on the hypothetical pricing date, with the result rounded to eight decimal places. 

 Role of
the Calculation Agent 
 The calculation agent has the sole discretion to make all determinations regarding LIRNs as described in this
product supplement, including determinations regarding the Starting Value, the Ending Value, the Market Measure, the Redemption Amount, any Market Disruption Events, a successor Market Measure, Market Measure Business Days, calculation days, and
non-calculation days. Absent manifest error, all determinations of the calculation agent will be final and binding on you and us, without any liability on the part of the calculation agent. 
 We expect to appoint MLPF&S or one of our other affiliates as the calculation agent for each series of LIRNs. However, we may change the calculation
agent at any time without notifying you. The identity of the calculation agent will be set forth in the applicable term sheet. 
  

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 Same-Day Settlement and Payment 
 LIRNs will be delivered in book-entry form only through The Depository Trust Company against payment by purchasers of LIRNs in immediately available funds. We will pay the Redemption Amount in immediately available
funds so long as the LIRNs are maintained in book-entry form. 
 Events of Default and Acceleration 
 Unless otherwise set forth in the applicable term sheet, if an event of default, as defined in the Senior Indenture, with respect to any series of LIRNs
occurs and is continuing, the amount payable to a holder of LIRNs upon any acceleration permitted under the Senior Indenture will be equal to the Redemption Amount described under the caption “—Payment at Maturity,” determined as if
the LIRNs matured on the date of acceleration. If a bankruptcy proceeding is commenced in respect of us, your claim may be limited, under the United States Bankruptcy Code, to the Original Offering Price of your LIRNs. In case of a default in
payment of LIRNs, whether at their maturity or upon acceleration, they will not bear a default interest rate. 
 Listing 
 If provided for in the applicable term sheet, we may apply to have your LIRNs listed on a securities exchange or quotation system. If approval of such an
application is granted, your LIRNs will be listed on the securities exchange or quotation system at the time of such approval. We make no representations, however, that your LIRNs will be listed or will remain listed for the entire term of your
LIRNs. 
  

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 SUPPLEMENTAL PLAN OF DISTRIBUTION 
 One or more of our affiliates, including MLPF&S and BAI, may act as our selling agent for any offering of the LIRNs. Without limiting the foregoing,
our affiliates First Republic Securities Company, LLC and Banc of America Securities LLC may act as a selling agent. The selling agents may act on either a principal basis or an agency basis, as set forth in the applicable term sheet. Each selling
agent will be a party to the Distribution Agreement described in the “Supplemental Plan of Distribution” on page S-13 of the accompanying prospectus supplement. 
 Each selling agent will receive an underwriting discount or commission that is a percentage of the aggregate Original Offering Price of LIRNs sold through its efforts, which will be set forth in the applicable term
sheet. You must have an account with the applicable selling agent in order to purchase LIRNs. 
 No selling agent is acting as your fiduciary
or advisor, and you should not rely upon any communication from it in connection with LIRNs as investment advice or a recommendation to purchase any LIRNs. You should make your own investment decision regarding LIRNs after consulting with your
legal, tax, and other advisors. 
 MLPF&S and any of our other affiliates and subsidiaries may use this product supplement, the
prospectus supplement, and the prospectus, together with the applicable term sheet and any applicable index supplement, in a market-making transaction for any LIRNs after their initial sale. 
 U.S. FEDERAL INCOME TAX SUMMARY 
 The following is a
summary of the material U.S. federal income tax considerations of the acquisition, ownership, and disposition of LIRNs. The following discussion is not exhaustive of all possible tax considerations. This summary is based upon the Code, regulations
promulgated under the Code by the U.S. Treasury Department (“Treasury”) (including proposed and temporary regulations), rulings, current administrative interpretations and official pronouncements of the IRS, and judicial decisions, all as
currently in effect and all of which are subject to differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of
the tax consequences described below. 
 This summary is for general information only, and does not purport to discuss all aspects of U.S.
federal income taxation that may be important to a particular holder in light of its investment or tax circumstances or to holders subject to special tax rules, such as partnerships, subchapter S corporations, or other pass-through entities, banks,
financial institutions, tax-exempt entities, insurance companies, regulated investment companies, real estate investment trusts, trusts and estates, dealers in securities or currencies, traders in securities that have elected to use the
mark-to-market method of accounting for their securities, persons holding LIRNs as part of an integrated investment, including a “straddle,” “hedge,” “constructive sale,” or “conversion transaction,” persons
(other than Non-U.S. Holders, as defined below) whose functional currency for tax purposes is not the U.S. dollar, persons holding LIRNs in a tax-deferred or tax-advantaged account, and persons subject to the alternative minimum tax provisions of
the Code. This summary does not include any description of the tax laws of any state or local governments, or of any foreign government, that may be applicable to a particular holder. If the tax consequences associated with LIRNs are different than
those described below, they will be described in the applicable term sheet. 
  

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 This summary is directed solely to holders that, except as otherwise specifically noted, will purchase
LIRNs upon original issuance and will hold LIRNs as capital assets within the meaning of Section 1221 of the Code, which generally means property held for investment. 
 You should consult your own tax advisor concerning the U.S. federal income tax consequences to you of acquiring, owning, and disposing of LIRNs, as
well as any tax consequences arising under the laws of any state, local, foreign, or other tax jurisdiction and the possible effects of changes in U.S. federal or other tax laws. 
 As used in this product supplement, the term “U.S. Holder” means a beneficial owner of LIRNs that is for U.S. federal income tax purposes:

  

	 	•	 	 a citizen or resident of the U.S.; 

  

	 	•	 	 a corporation (including an entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the U.S. or of any
state of the U.S. or the District of Columbia; 

  

	 	•	 	 an estate the income of which is subject to U.S. federal income taxation regardless of its source; or 

  

	 	•	 	 any trust if a court within the U.S. is able to exercise primary supervision over the administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. 

 Notwithstanding the preceding paragraph, to the extent
provided in Treasury regulations, some trusts in existence on August 20, 1996, and treated as United States persons prior to that date, that elect to continue to be treated as United States persons also are U.S. Holders. As used in this product
supplement, the term “Non-U.S. Holder” means a holder that is not a U.S. Holder. 
 If an entity or arrangement treated as a
partnership for U.S. federal income tax purposes holds LIRNs, the U.S. federal income tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership and, accordingly, this summary does not apply
to partnerships. A partner of a partnership holding LIRNs should consult its own tax advisor regarding the U.S. federal income tax consequences to the partner of the acquisition, ownership, and disposition by the partnership of LIRNs. 
 General 
 Although there is no statutory, judicial,
or administrative authority directly addressing the characterization of LIRNs, we intend to treat LIRNs for all tax purposes as a single financial contract with respect to the Market Measure that requires the investor to pay us at inception an
amount equal to the purchase price of LIRNs and that entitles the investor to receive at maturity an amount in cash based upon the performance of the Market Measure. Under the terms of LIRNs, we and every investor in LIRNs agree, in the absence of
an administrative determination or judicial ruling to the contrary, to treat LIRNs as described in the preceding sentence. This discussion assumes that LIRNs constitute a single financial contract with respect to the Market Measure for U.S. federal
income tax purposes. If LIRNs did not constitute a single financial contract, the tax consequences described below would be materially different. 
 This characterization of LIRNs is not binding on the IRS or the courts. No statutory, judicial, or administrative authority directly addresses the characterization of LIRNs or any similar instruments for U.S. federal income tax purposes,
and no ruling is being requested from 

  

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the IRS with respect to their proper characterization and treatment. Due to the absence of authorities on point, significant aspects of the U.S. federal
income tax consequences of an investment in LIRNs are not certain, and no assurance can be given that the IRS or any court will agree with the characterization and tax treatment described in this product supplement. Accordingly, you are urged to
consult your tax advisor regarding all aspects of the U.S. federal income tax consequences of an investment in LIRNs, including possible alternative characterizations. 
 On December 7, 2007, the IRS released Notice 2008-2 (“Notice”) seeking comments from the public on the taxation of financial instruments
currently taxed as “prepaid forward contracts.” This Notice addresses instruments such as LIRNs. According to the Notice, the IRS and Treasury are considering whether a holder of an instrument such as LIRNs should be required to accrue
ordinary income on a current basis, regardless of whether any payments are made prior to maturity. It is not possible to determine what guidance the IRS and Treasury will ultimately issue, if any. Any such future guidance may affect the amount,
timing and character of income, gain, or loss in respect of LIRNs, possibly with retroactive effect. 
 The IRS and Treasury are also
considering additional issues, including whether additional gain or loss from such instruments should be treated as ordinary or capital, whether foreign holders of such instruments should be subject to withholding tax on any deemed income accruals,
whether Section 1260 of the Code, concerning certain “constructive ownership transactions,” generally applies or should generally apply to such instruments, and whether any of these determinations depend on the nature of the
underlying asset. 
 In addition, in late 2007, legislation was introduced in the U.S. Congress which, if enacted, would also impact the
taxation of LIRNs. Under the proposed legislation, a U.S. Holder that acquires an instrument such as LIRNs after the date of enactment of the legislation would be required to include income in respect of the LIRNs on a current basis. It is not
possible to predict whether the legislation will be enacted in its proposed form or whether any other legislative action may be taken in the future that may adversely affect the taxation of instruments such as LIRNs. Further, it is possible that any
such legislation, if enacted, may apply on a retroactive basis. 
 We urge you to consult your own tax advisors concerning the impact and the
significance of the above considerations. We intend to continue treating LIRNs for U.S. federal income tax purposes in the manner described in this product supplement unless and until such time as we determine, or the IRS or Treasury determines,
that some other treatment is more appropriate. 
 Unless otherwise stated, the following discussion is based on the characterization
described above. The discussion in this section assumes that there is a significant possibility of a significant loss of principal on an investment in the LIRNs. 
 U.S. Holders – Income Tax Considerations 
 We will not attempt to ascertain whether the shares of any particular Market
Measure or any interest underlying any particular Market Measure would be treated as a “passive foreign investment company” (“PFIC”), within the meaning of Section 1297 of the Code. If the shares of a particular Market
Measure or one or more interests underlying a particular Market Measure to which the LIRNs are linked were so treated, certain adverse U.S. federal income tax consequences could possibly apply to a U.S. Holder. You should refer to information filed
with the SEC by each Market Measure and issuers of interests, as appropriate, underlying each Market Measure and consult your tax advisor regarding the possible consequences to you, if any, if a particular Market Measure or an issuer of interests
underlying a particular Market Measure is or becomes a PFIC. 
  

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 Tax Basis 
 A U.S. Holder’s tax basis in LIRNs will equal the amount paid by that holder to acquire them. 
 Settlement at Maturity or Sale or Exchange Prior to Maturity 
 Upon receipt of a cash payment at maturity or upon a sale or
exchange of LIRNs prior to maturity, a U.S. Holder generally will recognize capital gain or loss equal to the difference between the amount realized and the U.S. Holder’s basis in the LIRNs. This capital gain or loss generally will be long-term
capital gain or loss if the U.S. Holder held the LIRNs for more than one year. The deductibility of capital losses is subject to limitations. 
 Possible Alternative Tax Treatments of an Investment in LIRNs 
 Due to the absence of authorities that directly address the
proper tax treatment of LIRNs, prospective investors are urged to consult their tax advisors regarding all possible alternative tax treatments of an investment in LIRNs. In particular, the IRS could seek to subject LIRNs to the Treasury regulations
governing contingent payment debt instruments (the “Contingent Payment Regulations”). If the IRS were successful in that regard, the timing and character of income on LIRNs would be affected significantly. Among other things, a U.S. Holder
would be required to accrue original issue discount every year at a “comparable yield” determined at the time of issuance. In addition, any gain realized by a U.S. Holder at maturity, or upon a sale or other disposition of LIRNs generally
would be treated as ordinary income, and any loss realized at maturity would be treated as ordinary loss to the extent of the U.S. Holder’s prior accruals of original issue discount, and as capital loss thereafter. 
 Even if the Contingent Payment Regulations do not apply to LIRNs, other alternative U.S. federal income tax characterizations of LIRNs are possible
which, if applied, also could affect the timing and the character of a U.S. Holder’s income or loss. It is possible, for example, that LIRNs could be treated as a unit consisting of a loan and a forward contract, in which case a U.S. Holder
would be required to accrue interest income or original issue discount on a current basis. 
 Proposed Treasury regulations require the
accrual of income on a current basis for contingent payments made under certain notional principal contracts. The preamble to the regulations states that the “wait and see” method of accounting does not properly reflect the economic
accrual of income on those contracts, and requires current accrual of income for some contracts already in existence. While the proposed regulations do not apply to prepaid forward contracts, the preamble to the proposed regulations expresses the
view that similar timing issues exist in the case of prepaid forward contracts. If the IRS or Treasury publishes future guidance requiring current economic accrual for contingent payments on prepaid forward contracts, it is possible that you could
be required to accrue income over the term of LIRNs. 
 Further, if the Market Measure consists of a single currency, the principles of, or
principles similar to those of, Revenue Ruling 2008-1 (“Ruling”) may apply to LIRNs, depending on their terms. In the Ruling, the IRS held that a three year instrument linked to the euro-U.S. dollar exchange rate should be treated as a
euro-denominated debt instrument for U.S. federal income tax purposes in effect because it was principal protected in euros. If principles such as those apply to LIRNs, LIRNs may be treated as non-U.S. dollar denominated debt instruments for U.S.
federal income tax purposes and may result in adverse consequences for U.S. holders. For example, all or a portion of the return on such LIRNs may be treated as ordinary income and U.S. holders may be forced to recognize all or a portion of such
income on a current basis over the term of LIRNs. 
  

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 Unrelated Business Taxable Income 
 Section 511 of the Code generally imposes a tax, at regular corporate or trust income tax rates, on the “unrelated business taxable
income” of certain tax-exempt organizations, including qualified pension and profit sharing plan trusts and individual retirement accounts. As discussed above, the U.S. federal income tax characterization and treatment of LIRNs is uncertain.
Nevertheless, in general, if the LIRNs are held for investment purposes, the amount of income or gain, if any, realized on the maturity date or upon a sale, exchange or redemption of a LIRN prior to the maturity date, or any income that would accrue
to a holder of a LIRN if the LIRNs were characterized as contingent payment debt instruments (as discussed above), should not constitute unrelated business taxable income. However, if a LIRN constitutes debt-financed property (as defined in
Section 514(b) of the Code) by reason of indebtedness incurred by a holder of a LIRN to purchase or carry the LIRN, all or a portion of any income or gain realized with respect to such LIRN may be classified as unrelated business taxable income
pursuant to Section 514 of the Code. Moreover, prospective investors in LIRNs should be aware that whether or not any income or gain realized with respect to a LIRN which is owned by an organization that is generally exempt from U.S. federal
income taxation constitutes unrelated business taxable income will depend upon the specific facts and circumstances applicable to such organization. Accordingly, any potential investors in LIRNs that are generally exempt from U.S. federal income
taxation should consult with their own tax advisors concerning the U.S. federal income tax consequences to them of investing in LIRNs. 
 Non-U.S. Holders
– Income Tax Considerations 
 U.S. Federal Income and Withholding Tax 
 We will not attempt to ascertain whether the shares of any particular Market Measure or any interest underlying any particular Market Measure would be
treated as a United States real property interest, within the meaning of Section 897(c)(1) of the Code. If the shares of a particular Market Measure or one or more interests underlying a particular Market Measure to which the LIRNs are linked
were so treated, certain adverse U.S. federal income tax consequences could possibly apply to a non-U.S. Holder. You should refer to information filed with the SEC by each Market Measure and issuers of interests, as appropriate, underlying each
Market Measure and consult your tax advisor regarding the possible consequences to you, if any, if a particular Market Measure or an issuer of interests underlying a particular Market Measure is or becomes a United States real property holding
corporation. 
 A Non-U.S. Holder will not be subject to U.S. federal income or withholding tax for amounts paid in respect of LIRNs,
provided that the Non-U.S. Holder complies with applicable certification requirements and that the payment is not effectively connected with the conduct by the Non-U.S. Holder of a U.S. trade or business. Notwithstanding the foregoing, gain from the
sale or exchange of LIRNs or their settlement at maturity may be subject to U.S. federal income tax if that Non-U.S. Holder is a non-resident alien individual and is present in the U.S. for 183 days or more during the taxable year of the sale,
exchange, or retirement and certain other conditions are satisfied. 
 If a Non-U.S. Holder of LIRNs is engaged in the conduct of a trade or
business within the U.S. and if gain realized on the sale, exchange, or settlement of LIRNs, is effectively connected with the conduct of such trade or business (and, if certain tax treaties apply, is attributable to a permanent establishment
maintained by the Non-U.S. Holder in the United States), the Non-U.S. Holder, although exempt from U.S. federal withholding tax, generally will be subject to U.S. federal income tax on such gain on a net income basis in the same manner as if it were
a U.S. Holder. Such Non-U.S. Holders should read the material under the heading “—U.S. Holders—Income Tax Considerations,” for a description of the U.S. federal income tax consequences of acquiring, owning, and disposing of
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Holder is a foreign corporation, it may also be subject to a branch profits tax equal to 30% (or such lower rate provided by any applicable tax treaty) of a
portion of its earnings and profits for the taxable year that are effectively connected with its conduct of a trade or business in the United States, subject to certain adjustments. 
 As discussed above, alternative characterizations of LIRNs for U.S. federal income tax purposes are possible. Should an alternative characterization, by
reason of change or clarification of the law, by regulation or otherwise, cause payments as to LIRNs to become subject to withholding tax, we will withhold tax at the applicable statutory rate. As discussed above, the IRS has indicated in the Notice
that it is considering whether income in respect of instruments such as LIRNs should be subject to withholding tax. Prospective Non-U.S. Holders of LIRNs should consult their own tax advisors in this regard. 
 U.S. Federal Estate Tax 
 Under
current law, while the matter is not entirely clear, individual Non-U.S. Holders, and entities whose property is potentially includible in those individuals’ gross estates for U.S. federal estate tax purposes (for example, a trust funded by
such an individual and with respect to which the individual has retained certain interests or powers), should note that, absent an applicable treaty benefit, LIRNs are likely to be treated as U.S. situs property, subject to U.S. federal estate tax.
These individuals and entities should consult their own tax advisors regarding the U.S. federal estate tax consequences of investing in LIRNs. 
 Backup
Withholding and Information Reporting 
 In general, backup withholding may apply in respect of the amounts paid to a U.S. Holder, unless
such U.S. Holder provides proof of an applicable exemption or a correct taxpayer identification number, or otherwise complies with applicable requirements of the backup withholding rules. In addition, information returns will be filed with the IRS
in connection with payments on LIRNs as well as in connection with the proceeds from a sale, exchange, or other disposition of LIRNs, unless the U.S. Holder provides proof of an applicable exemption from the information reporting rules. 

In general, backup withholding may apply in respect of the amounts paid to a Non-U.S. Holder, unless such Non-U.S. Holder provides the required
certification that it is not a United States person, or the Non-U.S. Holder otherwise establishes an exemption, provided that the payor or withholding agent does not have actual knowledge that the holder is a United States person, or that the
conditions of any exemption are not satisfied. In addition, information returns may be filed with the IRS in connection with payments on LIRNs as well as in connection with the proceeds from a sale, exchange, or other disposition of LIRNs.

 Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a holder’s U.S. federal
income tax liability provided the required information is furnished to the IRS. 
 Reportable Transactions 
 Applicable Treasury regulations require taxpayers that participate in “reportable transactions” to disclose their participation to the IRS by
attaching Form 8886 to their U.S. federal tax returns and to retain a copy of all documents and records related to the transaction. In addition, “material advisors” with respect to such a transaction may be required to file returns and
maintain records, including lists identifying investors in the transactions, and to furnish those records to the IRS upon demand. A transaction may be a “reportable transaction” based on any of several criteria, one or more of which may be
present with respect to an investment in LIRNs. Whether an investment in LIRNs constitutes a “reportable transaction” for 

  

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any investor depends on the investor’s particular circumstances. The Treasury regulations provide that, in addition to certain other transactions, a
“loss transaction” constitutes a “reportable transaction.” A “loss transaction” is any transaction resulting in the taxpayer claiming a loss under Section 165 of the Code, in an amount equal to or in excess of
certain threshold amounts, subject to certain exceptions. Investors should consult their own tax advisors concerning any possible disclosure obligation they may have with respect to their investment in the securities that we are offering and should
be aware that, should any “material advisor” determine that the return filing or investor list maintenance requirements apply to such a transaction, they would be required to comply with these requirements. 
 ERISA CONSIDERATIONS 
 Each fiduciary of a pension, profit-sharing, or other employee benefit plan subject to ERISA (a “Plan”), should consider the fiduciary standards of ERISA in the context of the Plan’s particular circumstances before
authorizing an investment in the LIRNs. Accordingly, among other factors, the fiduciary should consider whether the investment would satisfy the prudence and diversification requirements of ERISA and would be consistent with the documents and
instruments governing the Plan. 
 In addition, we and certain of our subsidiaries and affiliates may be each considered a party in interest
(within the meaning of ERISA) or a disqualified person (within the meaning of the Code), with respect to many Plans, as well as many individual retirement accounts and Keogh plans (also “Plans”). Prohibited transactions within the meaning
of ERISA or the Code would likely arise, for example, if the LIRNs are acquired by or with the assets of a Plan with respect to which we or any of our affiliates is a party in interest or disqualified person, unless the LIRNs are acquired under an
exemption from the prohibited transaction rules. A violation of these prohibited transaction rules could result in an excise tax or other liabilities under ERISA and/or Section 4975 of the Code for such persons, unless exemptive relief is
available under an applicable statutory, regulatory, or administrative exemption. 
 Under ERISA and various PTCEs issued by the U.S.
Department of Labor, exemptive relief may be available for direct or indirect prohibited transactions resulting from the purchase, holding, or disposition of the LIRNs. Those exemptions include PTCE 96-23 (for certain transactions determined by
in-house asset managers), PTCE 95-60 (for certain transactions involving insurance company general accounts), PTCE 91-38 (for certain transactions involving bank collective investment funds), PTCE 90-1 (for certain transactions involving insurance
company separate accounts), and PTCE 84-14 (for certain transactions determined by independent qualified asset managers). 
 In addition,
Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code provide statutory exemptive relief for certain arm’s-length transactions with a person that is a party in interest solely by reason of providing services to Plans or
being an affiliate of such a service provider (the “Service Provider Exemption”). The Service Provider Exemption is generally applicable for otherwise-prohibited transactions between a Plan and a person or entity that is a party in
interest or disqualified person with respect to such Plan solely by reason of providing services to the Plan (other than a party in interest that is a fiduciary, or its affiliate, that has or exercises discretionary authority or control or renders
investment advice with respect to the assets of the Plan involved in the transaction), provided, that there is “adequate consideration” for the transaction. Any Plan fiduciary relying on the Service Provider Exemption and purchasing the
LIRNs on behalf of a Plan must initially make a determination that (x) the Plan is paying no more than, and is receiving no less than, “adequate consideration” in connection with the transaction and (y) neither we nor any of our
affiliates directly or indirectly exercises any discretionary authority or control or renders investment advice with respect to the assets of the Plan which such fiduciary is using to purchase LIRNs, both of which are necessary preconditions to
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provide fiduciary investment management services with respect to a Plan, the Service Provider Exemption may not be available, and other exemptive relief
would be required as precondition for purchasing the LIRNs. Where LIRNs are traded on a generally-recognized market, the adequate consideration determination is based on the prevailing price for the LIRNs on the relevant national exchange or, in the
case of LIRNs not traded on a national securities exchange, the current independently-quoted offering price, in both instances taking into account the size of the transaction and the marketability of the LIRNs. For LIRNs that are not traded on a
generally-recognized market, the adequate consideration determination is to be made by the fiduciary in good faith in accordance with regulations to be issued by the U.S. Department of Labor. Any Plan fiduciary considering reliance on the Service
Provider Exemption is encouraged to consult with counsel regarding the availability of the exemption. 
 Because we may be considered a party
in interest with respect to many Plans, the LIRNs may not be purchased, held, or disposed of by any Plan, any entity whose underlying assets include plan assets by reason of any Plan’s investment in the entity (a “Plan Asset Entity”)
or any person investing plan assets of any Plan, unless such purchase, holding or disposition is eligible for exemptive relief, including relief available under PTCE 96-23, 95-60, 91-38, 90-1, or 84-14 or the Service Provider Exemption, or such
purchase, holding, or disposition is otherwise not prohibited. Any purchaser, including any fiduciary purchasing on behalf of a Plan, transferee or holder of the LIRNs will be deemed to have represented, in its corporate and its fiduciary capacity,
by its purchase and holding of the LIRNs that either (a) it is not a Plan or a Plan Asset Entity and is not purchasing such LIRNs on behalf of or with plan assets of any Plan or with any assets of a governmental, church, or foreign plan that is
subject to any federal, state, local, or foreign law that is substantially similar to the provisions of Section 406 of ERISA or Section 4975 of the Code or (b) its purchase, holding, and disposition are eligible for exemptive relief
or such purchase, holding, and disposition are not prohibited by ERISA or Section 4975 of the Code (or in the case of a governmental, church, or foreign plan, any substantially similar federal, state, local, or foreign law). 
 Under ERISA, assets of a Plan may include assets held in the general account of an insurance company which has issued an insurance policy to such plan or
assets of an entity in which the Plan has invested. Accordingly, insurance company general accounts that include assets of a Plan must ensure that one of the foregoing exemptions is available. Due to the complexity of these rules and the penalties
that may be imposed upon persons involved in non-exempt prohibited transactions, it is particularly important that fiduciaries or other persons considering purchasing the LIRNs on behalf of a Plan or with “plan assets” of any Plan consult
with their counsel regarding the availability of exemptive relief. 
 The fiduciary investment considerations summarized above generally
apply to employee benefit plans maintained by private-sector employers and to individual retirement accounts and other arrangements subject to Section 4975 of the Code, but generally do not apply to governmental plans (as defined in
Section 3(32) of ERISA), certain church plans (as defined in Section 3(33) of ERISA), and foreign plans (as described in Section 4(b)(4) of ERISA). However, these other plans may be subject to similar provisions under applicable
federal, state, local, foreign, or other regulations, rules, or laws (“similar laws”). The fiduciaries of plans subject to similar laws should also consider the foregoing issues in general terms as well as any further issues arising under
the applicable similar laws. 
 Purchasers of the LIRNs have exclusive responsibility for ensuring that their purchase, holding, and
disposition of the LIRNs do not violate the prohibited transaction rules of ERISA or the Code or any similar laws, as described above. 
 This discussion is a general summary of some of the rules which apply to benefit plans and their related investment vehicles. This summary does not include all of the investment considerations relevant to Plans and other benefit plan
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church, and foreign plans and should not be construed as legal advice or a legal opinion. Due to the complexity of these rules and the penalties that may be
imposed upon persons involved in non-exempt prohibited transactions, it is particularly important that fiduciaries or other persons considering purchasing the LIRNs on behalf of or with “plan assets” of any Plan or other benefit plan
investor consult with their legal counsel prior to directing any such purchase. 
  

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 [Reverse of Note] 
 BANK OF AMERICA CORPORATION 
 Medium-Term Senior Note, Series L 
 REGISTERED GLOBAL SENIOR NOTE 
 SECTION 1. General. This Note is one of a duly authorized issue of senior notes of the Issuer to be issued in one or more series under the Indenture dated January 1, 1995, as supplemented from time to time (the
“Indenture”), between Bank of America Corporation (the “Issuer”) and The Bank of New York Mellon Trust Company, N.A., as successor trustee (the “Trustee”), and to which Indenture reference is hereby made for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer and the Trustee and the holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The term Trustee
shall include any additional or successor trustee appointed in such capacity by the Issuer in accordance with the terms of the Indenture. 
 This Note is also one of the Notes issued pursuant to the Prospectus Supplement dated April 10, 2008 to the Prospectus dated May 5, 2006 (referred to collectively herein as the “Prospectus”) for the offer and sale of the
Issuer’s senior and subordinated medium-term notes, Series L (the “Notes”). The Notes may have different issue and maturity dates, bear interest at different rates and vary in such other ways as provided in the Indenture and described
in the Prospectus. The specific terms of each issuance of Notes will be described in the Final Terms. 
 The Issuer has initially appointed
the Trustee to act as the U.S. Issuing and Paying Agent, Security Registrar and Transfer Agent for the Notes. This Note may be presented or surrendered for payment, and notices, designations or requests in respect of payments with respect to this
Note may be served, at the corporate trust office of the Trustee, located at 101 Barclay Street, New York, New York, 10286, or such other location as may be specified by the Trustee and notified to the Issuer and the registered holder of this Note.

 Unless specified otherwise in the Final Terms, this Note will not be subject to a sinking fund. 
 SECTION 2. Interest Provisions. 
 [Intentionally Omitted] 
 SECTION 3. Amortizing Notes. 
 [Intentionally Omitted] 
 SECTION 4.
Optional Redemption. 
 [Intentionally Omitted] 
  

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 SECTION 5. Optional Repayment. 
 [Intentionally Omitted] 
 SECTION 6.
Additional Amounts.  
 [Intentionally Omitted] 
 SECTION 7. Redemption for Tax Reasons. 
 [Intentionally Omitted] 
 SECTION 8. Modification and Waivers. The Indenture permits, with certain exceptions as
therein provided, the amendment of the Indenture and the modification of the rights and obligations of the Issuer and the rights of the holders of the Notes under the Indenture at any time by the Issuer with the consent of the holders of not less
than 66 2/3% in aggregate principal amount of the series of Notes of which this Note is a part then outstanding and all other
Securities (as defined in the Indenture) then outstanding under the Indenture and affected by such amendment and modification. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the series of
Notes of which this Note is a part then outstanding and all other Securities then outstanding under the Indenture and affected thereby, on behalf of the holders of all such Securities, to waive compliance by the Issuer with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The determination of whether particular Securities are “outstanding” will be made
in accordance with the Indenture. 
 Any action by the holder of this Note shall bind all future holders of this Note, and of any Note
issued in exchange or substitution hereof or in place hereof, in respect of anything done or permitted by the Issuer or by the Trustee in pursuance of such action. 
 New Notes authenticated and delivered after the execution of any agreement modifying, amending or supplementing this Note may bear a notation in a form approved by the Issuer as to any matter provided for in such
modification, amendment or supplement to the Indenture or the Notes. New Notes so modified as to conform, in the opinion of the Issuer, to any provisions contained in any such modification, amendment or supplement may be prepared by the Issuer,
authenticated by the Trustee and delivered in exchange for this Note. 
 SECTION 9. Obligations Unconditional. No reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal, premium, if any, and interest on this Note at the times, place and rate,
and in the coin or currency, herein prescribed. 
 SECTION 10. Successor to Issuer. The Issuer may not consolidate or merge with or
into any other person, or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless (i) the resulting or acquiring entity, if other than the Issuer, is organized and validly existing under the laws
of the United States, any state thereof or the District of Columbia, 

  

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and shall expressly assume all the Issuer’s obligations under the Indenture; and (ii) immediately after giving effect to such transaction, the
Issuer (or any resulting or acquiring entity, if other than the Issuer) is not in default in the performance of any covenant or condition under the Indenture. 
 Upon consolidation, merger, sale or transfer as described above, the resulting or acquiring entity shall be substituted for the Issuer in the Indenture with the same effect as if it had been an original party to the
Indenture, and the successor entity may exercise the Issuer’s right and powers under the Indenture. 
 SECTION 11. Authorized
Denominations. This Note, and any Note issued in exchange or substitution herefor or in place hereof, or upon registration of transfer, exchange or partial redemption or repayment of this Note, may be issued only in an Authorized Denomination as
specified in the Final Terms, or if no Authorized Denomination is so specified, in minimum denominations of U.S.$1,000 and any integral multiple of U.S.$1,000 in excess thereof (or equivalent denominations in other currencies, subject to any other
statutory or regulatory minimums). 
 SECTION 12. Registration of Transfer. As provided in the Indenture and subject to certain
limitations as therein set forth, the transfer of this Note is registrable in the register maintained by the Security Registrar, upon surrender of this Note for registration of transfer at the office or agency of the Issuer designated by it pursuant
to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee or the Security Registrar requiring such written instrument of transfer duly executed by, the registered holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of Authorized Denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

This Note may be exchanged in whole, but not in part, for security-printed definitive Notes, only under the circumstances described in the Indenture
and (a) if this Note is a global note clearing initially through The Depository Trust Company (“DTC”), DTC notifies the Issuer that it is unwilling or unable to continue as depository for the DTC global note or DTC ceases to be a
clearing agency registered under the United States Securities Exchange Act of 1934, as amended, if so required by applicable law or regulation, and, in either case, a successor depository is not appointed by the Issuer within 90 days after receiving
such notice or becoming aware that DTC is no longer so registered; or (b) in the case of any other registered global note, if the Issuer is notified that any clearing system through which this Note is cleared and settled has been closed for
business for a continuous period of 14 days (other than by reason of holidays, whether statutory or otherwise) after the original issuance of the relevant notes or has announced an intention to cease business permanently or has in fact done so and
no alternative clearance system approved by the applicable noteholders is available; or (c) the Issuer, in its sole discretion, elects to issue definitive registered notes; or (d) after the occurrence of an Event of Default with respect to
this Note, beneficial owners representing a majority in principal amount of the Notes represented by this Note advise the relevant clearing system through its participants to cease acting as a depository for this Note. 
 In any such instance, an owner of a beneficial interest in this Note will be entitled to physical delivery in definitive form of Notes equal in principal
amount to such beneficial interest and to have such Notes registered in its name. Unless otherwise set forth above, Notes so issued in definitive form will be issued in Authorized Denominations only and will be issued in registered form only,
without coupons. 
  

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 Subject to the terms of the Indenture, if the Notes are held in definitive form, a holder may exchange
its Notes for other Notes of the same series in an equal aggregate principal amount and in Authorized Denominations. 
 Notes in definitive
form may be presented for registration of transfer at the office of the Security Registrar or at the office of any transfer agent that the Issuer may designate and maintain. The Security Registrar or the transfer agent will make the transfer or
registration only if it is satisfied with the documents of title and identity of the person making the request. The Issuer may change the Security Registrar or the transfer agent or approve a change in the location through which the Security
Registrar or transfer agent acts at any time, except that the Issuer will be required to maintain a security registrar and transfer agent in each place of payment for the Notes of this series. At any time, the Issuer may designate additional
transfer agents for the Notes of this series. 
 The Issuer will not be required to (a) issue, exchange, or register the transfer of
this Note if it has exercised its right to redeem the Notes of the series of which this Note is a part for a period of 15 calendar days before the redemption date, or (b) exchange or register the transfer of any Notes of the series of which
this Note is a part that were selected, called, or are being called for redemption, except the unredeemed portion of the Notes of the series of which this Note is a part, if being redeemed in part. 
 No service charge shall be made for any such registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for registration of transfer, the
Issuer, the Trustee, and any agent of the Issuer or the Trustee may treat the person in whose name this Note is registered as the owner hereof for all purposes, whether not this Note be overdue, and neither the Issuer, the Trustee, nor any such
agent shall be affected by notice to the contrary, except as required by applicable law. 
 SECTION 13. Events of Default. If an Event
of Default (defined in the Indenture as (a) the Issuer’s failure to pay the principal or premium, if any, on the Notes; (b) the Issuer’s failure to pay interest on the Notes within 30 calendar days after the same becomes due;
(c) the Issuer’s breach of its other covenants contained in this Note or in the Indenture, which breach is not cured within 90 calendar days after written notice by the Trustee or the holders of at least 25% in outstanding principal amount
of all Securities issued under the Indenture and affected thereby; and (d) certain events involving the bankruptcy, insolvency or liquidation of the Issuer) shall occur with respect to this Note, the principal of this Note may be declared due
and payable in the manner and with the effect provided in the Indenture. 
 SECTION 14. Defeasance. Unless otherwise specified in the
Final Terms, the provisions of Article Fourteen of the Indenture do not apply to this Note. 
  

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 SECTION 15. Specified Currency. 
 [Intentionally Omitted] 
 SECTION 16.
Original Issue Discount Note. 
 [Intentionally Omitted] 
 SECTION 17. Dual Currency Note. 
 [Intentionally Omitted] 
 SECTION 18. Mutilated, Defaced, Destroyed, Lost or Stolen Notes. In case this Note shall at any time become mutilated, defaced, destroyed, lost or
stolen, and this Note or evidence of the loss, theft or destruction hereof satisfactory to the Issuer and the Security Registrar and such other documents or proof as may be required by the Issuer and the Security Registrar shall be delivered to the
Security Registrar, the Security Registrar shall issue a new Note of like tenor and principal amount, having a serial number not contemporaneously outstanding, in exchange and substitution for the mutilated or defaced Note or in lieu of the Note
destroyed, lost or stolen but, in the case of any destroyed, lost or stolen Note, only upon receipt of evidence satisfactory to the Issuer and the Security Registrar that this Note was destroyed, stolen or lost, and, if required, upon receipt of
indemnity satisfactory to the Issuer and the Security Registrar. Upon the issuance of any substituted Note, the Issuer may require the payment of a sum sufficient to cover all expenses and reasonable charges connected with the preparation and
delivery of a new Note. If any Note which has matured or has been redeemed or repaid or is about to mature or to be redeemed or repaid shall become mutilated, defaced, destroyed, lost or stolen, the Issuer may, instead of issuing a substitute Note,
pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated or defaced Note) upon compliance by the holder with the provisions of this paragraph. 
 SECTION 19. Miscellaneous. No recourse shall be had for the payment of principal of (and premium, if any) or interest on, this Note for any claim
based hereon, or otherwise in respect hereof, against any shareholder, employee, agent, officer or director, as such, past, present or future, of the Issuer or of any successor organization, either directly or through the Issuer or any successor
organization, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released. 
 SECTION 20. Defined Terms. All terms used in this Note which are defined in the Indenture or the
Prospectus and are not otherwise defined in this Note shall have the meanings assigned to them in the Indenture or the Prospectus, as applicable. 
 Unless specified otherwise in the Final Terms, “Business Day” means, a day that meets all the following requirements: 
 (a) for all Notes, is any weekday that is not a legal holiday in New York City or Charlotte, North Carolina, or any other place of payment of the applicable Note, and is not a date on which banking institutions in
those cities are authorized or required by law or regulation to be closed; 
  

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 (b) for any Note where the base rate is LIBOR, also is a day on which commercial banks
are open for business (including dealings in the Index Currency specified in the Final Terms) in London, England; 
 (c) for
any Note denominated in euro or any Note where the base rate is EURIBOR, also is a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer System or any successor is operating (a “Target Settlement Date”); and

 (d) for any Note that has a Specified Currency other than U.S. dollars or euro, also is not a day on which banking
institutions generally are authorized or obligated by law, regulation, or executive order to close in the Principal Financial Center of the country of the Specified Currency. 
 Unless specified otherwise in the Final Terms, “Principal Financial Center” means (i) the capital city of the country issuing the
Specified Currency, except that with respect to U.S. Dollars, Australian dollars, Canadian dollars, South African rand and Swiss francs, the “Principal Financial Center” shall be New York City, Sydney and Melbourne, Toronto, Johannesburg,
and Zurich, respectively; and (ii) the capital city of the country to which the Index Currency relates, except that with respect to U.S. Dollars, Australian dollars, Canadian dollars, South African rand and Swiss francs, the “Principal
Financial Center” shall be New York City, Sydney, Toronto, Johannesburg and Zurich, respectively. 
 SECTION 21. GOVERNING LAW.
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, NOTWITHSTANDING ANY OTHERWISE APPLICABLE CONFLICTS OF LAWS PROVISIONS AND ALL APPLICABLE UNITED STATES FEDERAL LAWS AND REGULATIONS. 
  

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 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

					
	TEN COM	  	—	  	as tenants in common
	TEN ENT	  	—	  	as tenants by the entireties
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common

  

									
	UNIF GIFT MIN ACT — 	  	                                       
 	 	as Custodian for	 	                                       
     	 	
		  	    (Cust)	 		 	(Minor)	 	
		  	    Under Uniform Gifts to Minors Act	 	

  

									
		  	                                       
                                 	 	
		  	                (State)	 		 	
		
	Additional abbreviations may also be used though not in the above list.	 	
			
		  	                                       
     	 	
		
	                                     FOR VALUE RECEIVED, the
undersigned hereby
                                     sell(s), assign(s) and
transfer(s) unto
	 	

  

					
	PLEASE INSERT SOCIAL SECURITY OR OTHER
	IDENTIFYING NUMBER OF ASSIGNEE
			
	            /            /            	  		  	                                       
                                         
                                         
                                   
		  		  	Please print or type name and address, including zip code of assignee
	
	                                       
                                         
                                         
                                         
                                         
     
	 the within Note of BANK OF AMERICA CORPORATION and all rights thereunder and does hereby irrevocably constitute and
 appoint

	
	                                       
                                         
                                         
                                         
                                         
   
	                                       
                                 
Attorney        
	
	to transfer the said Note on the books of the within-named Issuer, with full power of substitution in the premises
	
	Dated:                      
		
	SIGNATURE GUARANTEED:	  	                                       
                                         
                                         
                                  
		  		  	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of this Note

  

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 Schedule 1  
 SCHEDULE OF TRANSFERS, EXCHANGES AND EXTENSIONS 
 The following increases and decreases in the
principal amount of this Note have been made: 
  

							
	 Date of Transfer,
Redemption, Repayment or
Extension, as
Applicable
	 	 Increase (Decrease) in Principal
Amount of this Note Due
to
Transfer Among Global Notes or
Redemption, Repayment or
Non-Election of Extension of
Maturity Date of a Portion of
Global Note, as Applicable
	 	 Principal 
Amount of this Note
After Transfer,
Redemption,
Repayment or Extension, as
Applicable
	 	 Notation made
by or on 
behalf of the
Issuer

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 14

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